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COMMITMENTS AND CONTINGENCIES | 9 Months Ended
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Mar. 31, 2016
Notes to Financial Statements |
COMMITMENTS AND CONTINGENCIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES) | Trio-Tech (Malaysia) Sdn. Bhd. has expansion plans to meet the growing demands of a major customer in Malaysia, as the existing facility is inadequate to meet the demands of that customer. The Company has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RM145, or approximately $37 based on the exchange rate as on March 31, 2016 published by the Monetary Authority of Singapore, as compared to RM1,020, or approximately $274 based on the exchange rate as on March 31, 2015 published by the Monetary Authority of Singapore. Trio-Tech (Tianjin) Co. Ltd. in China has capital commitments for the purchase of equipment and other related infrastructure costs amounting to RMB 2,192, or approximately $339 based on the exchange rate as of March 31, 2016 published by the Monetary Authority of Singapore, as compared to RMB 122, or approximately $20 based on the exchange rate as of March 31, 2015 published by the Monetary Authority of Singapore. Trio-Tech International Pte. Ltd. in Singapore has not made any capital commitments for the purchase of equipment and other related infrastructure as of March 31, 2016, as compared to SGD 61, or approximately $44 based on the exchange rate as of March 31, 2015 published by the Monetary Authority of Singapore. The Company leases office space and equipment under non-cancelable capital and operating leases with various expiration dates. The lease term begins on the date of the initial possession of the leased property for the purposes of recognizing lease expense on a straight-line basis over the term of the lease. The Company does not assume renewals in the determination of the lease terms unless the renewals are deemed to be reasonably assured at lease inception. The Company is, from time to time, the subject of litigation claims and assessments arising out of matters occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the Company’s financial statements.

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