Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. JINPAN INTERNATIONAL LTD (1053008) 20-F published on Apr 30, 2013 at 5:31 pm
Reporting Period: Dec 30, 2012
In May 2012, China Bank of Communications Hainan Branch entered into agreement with Guilin JTF. The bank granted the Guilin JTF a revolving credit line in the amount of RMB 100 million to fund operations and procurement of materials. The revolving credit line is available for a term of 2 years. Any loan made under the revolving credit line is due within 1 year from the date of the loan. The annual interest rate on outstanding loans under the line is fixed at the Bank of China’s benchmark rate at the time of the issuance of a loan plus 5%. The bank also granted the Guilin JTF a credit line in the amount of RMB 150 million to fund the development of the manufacturing facility in Guilin. The credit line is available for a term of 1 year. Any loan made under the credit line is due within 7 years from the date of the loan. The annual interest rate on outstanding loans under the line is the Bank is fixed at the Bank of China’s benchmark rate at the time of the issuance of a loan plus 5%.
In May 2012, China Bank of Communications Guilin Branch entered into agreement with Guilin JTF. The bank granted the Guilin JTF a revolving credit line in the amount of RMB 40 million to fund operations and procure materials after the completion of the manufacturing facility in Guilin. The revolving credit line is available for a term of 2 years. Any loan made under the revolving credit line is due within 1 year from the date of the loan. The annual interest rate on outstanding loans under the line is fixed at the Bank of China’s benchmark rate at the time of the issuance of a loan plus 5%. The bank granted Guilin JTF a credit line in the amount of RMB 60 million to fund the development of the manufacturing facility in Guilin. The credit line is available for a term of 1 year. Any loan made under the credit line is due within 7 years from the date of the loan. The annual interest rate on outstanding loans under the credit line is the bank is fixed at the Bank of China’s benchmark rate at the time of the issuance of a loan plus 5%. The bank approved the Guilin JTF’s request for a sight letter of credit in the amount of RMB 20 million that can be used within a 2 year period. Guilin JTF must repay the Bank immediately for the credit issued. The letter of credit is for the procurement of equipment for the manufacturing facility in Guilin. The bank approved Guilin JTF’s request for a usance letter of credit in the amount of RMB 20 million that can be used within a 2 year period. Guilin JTF has 1 year to pay the Bank for the credit issued. Applicable interest rate and fees will be according to the Bank’s policies.
In February 2013, the FASB issued Accounting Standards Update No. 2013-02 Comprehensive Income (Topic 220): The objective of this update is to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this update seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (GAAP) to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (for example, inventory) instead of directly to income or expense in the same reporting period. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. The Company does not expect the adoption of the provisions in this update will have a significant impact on its consolidated financial statements.
When determining whether an impairment of investments exists or a decline in value of an available-for-sale security is other-than-temporary, the Group evaluates evidence to support a realizable value in excess of the current market price for securities with readily determinable fair value. Such information may include the investment’s financial performance (including factors such as earnings trends, dividend payments, asset quality and specific events), the near-term prospects of the investment, the financial condition and prospects of the investment’s region and industry, and the Group’s investment intent. Typically, a sustained decline in the market value of a quoted security for six months is generally indicative of an other-than-temporary impairment. When a decline in value is deemed to be other-than-temporary, an impairment loss is recognized through a charge to interest income and other, net in the current period to the extent of the decline below the carrying value of the investment. Adverse changes in market conditions or poor operating results of underlying investments could result in additional other-than-temporary losses in future periods.
Guilin JFT has two credit facilities with the Bank of Communications – a long term credit line for fixed asset investment and a short term credit line for working capital totaling RMB 350 million. The fixed asset credit line is in the amount of RMB 210 million and carries an interest rate of People’s Bank of China bench mark rate x 1.05 per annum. Our borrowings under this credit line accrued interest at an average interest rate 6.88% per annum for the year ended December 31, 2012. Loans made under this credit line must be applied to fixed asset investment at the Company’s Guilin facility and was secured by the fixed assets investment at Guilin. As of December 31, 2012, there was RMB 158 million outstanding balance under this credit facility. The credit line has a term of seven years. Repayment of loan principal is scheduled over a seven year period, from 2013 to 2019. The working capital credit line is in the amount of RMB 140 million and carries an interest rate of People’s Bank of China bench mark rate x 1.05 per annum. Loans made under this credit line must be applied to the working capital of the Company’s Guilin facility. The credit line has a term of two years. The loan principal must be repaid in full annually. As of December 31, 2012, there was no outstanding balance under this credit facility.