Eastern Holdings

FY2013 result is out and the most interesting part is in section 8.

Significant Event Subsequent to the Balance Sheet Date
The disposal by Tras Properties Pte. Ltd., a wholly owned subsidiary of the Company, of the 3 storey commercial buildings at 51, 53, 55 and 57 Tras Street, Singapore for the aggregate consideration of $26.5 million is completed on 28 May 2013.

The disposal by Hoy Fatt Pte. Ltd., 70% owned subsidiary of the Company, of a 6 storey building at 12 Hoy Fatt Road, Singapore 159506 for a consideration of $27.0 million is scheduled to be completed on 25 July 2013, subject to approval by all relevant authorities and buyer successfully completing the sale transaction.

Contingent Liabilities
During FY2013, the Company paid an income tax of $0.25 million in relation to YA2009 arising mainly from a different position adopted by the Company from IRAS with regards to the basis of tax computation. In 2012, IRAS has expressed that it is currently reviewing the Company¡¦s basis of assessing management fee received for YA2009 and subsequent YAs; and in particular, whether to appropriately assess the Company as a normal trading company generating a 105% service income and other passive sourced investment income.
On 7 May 2013, the tax advisor has written to IRAS requesting to allow the Company to recompute the management charge to the subsidiaries retrospectively from YA 2010 and subsequent YAs; and at the same time, to allow the recomputed management charges using the new methodology as deduction to the respective subsidiaries retrospectively from YA 2010 and subsequent YAs. The recomputation methodology is applied with a view of minimising tax leakages of the Group, if any. In view of the early stage of this
process, quantification of the Group¡¦s estimated tax payable, if any, at this juncture is not likely to be meaningful.

http://info.sgx.com/webcoranncatth.nsf/V...A000F1950/$file/EHL-Ann-FullYearResults-FY2013.pdf?openelement

Ha ha. The trading halt is related to offence by CEO and Chairman, Stephen Tay Thian Boon. Shameful.

Quote:We, the Board Members of Eastern Holdings Ltd (the “Company”) hereby announce that our Chairman and CEO, Stephen Tay Thian Boon, has been charged on 30 May 2013 in the Subordinate Courts for the following offences:
- an offence under Section 156(1) of the Companies Act (Chapter 50) and punishable under Section 156(10) of the said Act for allegedly failing to declare to the Board of Directors of his interest in a loan transaction of $1,000,000 (“Loan”) between the Company and Dormitory Investment Pte Ltd (“DIPL”); and
- an offence under Section 420 of the Penal Code (Chapter 224) for allegedly dishonestly concealing from the then Financial Controller, Lim Jiah Sheng, that he had an interest in the loan of $1,000,000 disbursed to DIPL.
The Loan has since been repaid with interest and there is no financial impact on the Company. Mr Tay is currently taking legal advice and the Company will release an announcement of any further development in this matter.

For this offence.....
http://info.sgx.com/webcoranncatth.nsf/V...B0039A06C/$file/EHL-Ann-ChairmanandCEO-30May13.pdf?openelement
I really like to see Stephen Tay's buttocks getting at least 2 strokes of the rotan!

As for the just released FY13 (ended 31Mar13) full-year results.....
http://info.sgx.com/webcoranncatth.nsf/V...A000F1950/$file/EHL-Ann-FullYearResults-FY2013.pdf?openelement
I suppose the most important point is the confirmation that the properties of 51, 53, 55 and 57 Tras Street and 12 Hoy Fatt Road have been sold for a total of $53.5m, with $26.5m from the Tras Street properties already collected on 28May13, and the remaining $27.0m from the Hoy Fatt Road property to be collected on 25Jul13. Against the corresponding total BV of $20.9m for the sold properties, Eastern Holdings will stand to book a total gain of approx. $32.0m (after accounting for the incidental transaction costs) - equivalent to $0.107/share (based on the 300.0m issued shares) - in the coming 1Q and 2Q results. This will raise Eastern Holdings' per share NAV to at least $0.35. Of course, the fair value of the share ought to be a higher figure as we should also include the development profits of the 6 units of semi-detached houses (under construction) at 81 & 83 Grove Drive, and any hidden extra value in the 4-storey JTC Industrial Building at 1100 Lower Delta Road and other smaller properties.

Quote:- an offence under Section 420 of the Penal Code (Chapter 224) for allegedly dishonestly concealing from the then Financial Controller, Lim Jiah Sheng, that he had an interest in the loan of $1,000,000 disbursed to DIPL.

From Law Gazette:
Aggravated cheating is punishable under section 420 of the Code with imprisonment for a term of up to 7 years, and the offender is also liable to fine. Imprisonment is mandatory. Hence, the best sentence that any accused can possibly expect under section 420 would be one day’s imprisonment coupled with a fine. This can happen only if there are no aggravating factors whatsoever and the mitigating factors are exceptional.

Anyone knows what happened to the CAD investigation on Stephen Tay many years back?

What kinda of interest did he have in that loan? Can this be treated as a related party transaction act?

If he is disqualified as director, it may be a positive catalyst if he can kiss goodbye to buying out the company.
Now cannot even 'earn out' via directors salary. The only way left to get cash out is via dividends.

I dont know how EHL Nominating Committee can recommend Tay to be a director at next AGM. Watch out for the Notice of AGM.

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(30-05-2013, 08:26 PM)lanoitar Wrote:

Quote:- an offence under Section 420 of the Penal Code (Chapter 224) for allegedly dishonestly concealing from the then Financial Controller, Lim Jiah Sheng, that he had an interest in the loan of $1,000,000 disbursed to DIPL.

From Law Gazette:
Aggravated cheating is punishable under section 420 of the Code with imprisonment for a term of up to 7 years, and the offender is also liable to fine. Imprisonment is mandatory. Hence, the best sentence that any accused can possibly expect under section 420 would be one day’s imprisonment coupled with a fine. This can happen only if there are no aggravating factors whatsoever and the mitigating factors are exceptional.

Anyone knows what happened to the CAD investigation on Stephen Tay many years back?

Just for 1 mil ???!!!???
He doesn't have 1 mil of his own to loan out?
This is before the previous offer leh...

Wonder if this is the same company that was sold to Centurion? Their names seems to differ only the (s) in Investment(s)

http://info.sgx.com/webcoranncatth.nsf/V...500427266/$file/DIPL-310112.pdf?openelement

The Directors of Centurion Corporation Limited (the “Company”) are pleased to announce that
following a tender offer made by the Company to Crest Industrial Holdings Pte. Ltd. (“CIH”) on 27
January 2012 (the “Offer”) to acquire 85% of the total equity interest in Dormitory Investments
Private Limited (“DIPL”) held by CIH (the “Sale Shares”), the Company has today received CIH’s
written acceptance of the Offer.

smallcaps, you just beats me to it.

Yes. Dormitory Investments owned by Centurion Dorm, owned by Centurion Corp.
I just looked thru DIPL corporate shareholding.

Good risk - I take. Bad risk - I share with other shareholders...hahaha...

As said before, Tay not very cash rich.

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Just a question: Will the banks recall MBT loan (if any) if Tay cannot be a director of EHL and MBT???

(30-05-2013, 09:13 PM)opmi Wrote: If he is disqualified as director, it may be a positive catalyst if he can kiss goodbye to buying out the company.
Now cannot even 'earn out' via directors salary. The only way left to get cash out is via dividends.

Why not? He can still make an offer to buy out the minorities.

Not a director? Nevermind.
He can send any of his soldiers to be a director.
He can be appointed as a consultant and get fees.
Sinwa, no?

(30-05-2013, 09:13 PM)opmi Wrote: If he is disqualified as director, it may be a positive catalyst if he can kiss goodbye to buying out the company.
Now cannot even 'earn out' via directors salary. The only way left to get cash out is via dividends.

I dont know how EHL Nominating Committee can recommend Tay to be a director at next AGM. Watch out for the Notice of AGM.

Nominate the other controlling shareholder, his wife?