Full Annual Report 2006 - Singapore Technologies Engineering

THE WINNING SPIRIT ST Engineering AR 2006 168
Notes to the Financial Statements 31 DECEMBER 2006
(Currency – Singapore dollars unless otherwise stated)
10. INVESTMENTS
GROUP
2006 2005
$’000 $’000
Quoted investments (Available-for-sale)
Equity shares, at fair value:
Related corporations – 710
Non-related corporations 19,044 51,925
Total quoted investments 19,044 52,635
Unquoted investments
Equity shares
Related corporations, at cost 955 956
Non-related corporations, at cost 33,519 42,781
Non-related corporations, at fair value 1,321 2,401
35,795 46,138
Venture capital funds and limited partnership, at fair value 4,079 5,539
Convertible loans to non-related corporations # 1,258 882
Short-term interest rate fund, at fair value – 20,109
Loan to a related corporation 4,405 4,424
Unit trust 42 –
45,579 77,092
Impairment in value of unquoted investments:
Unquoted investments, stated at cost (36,765) (28,380)
Total unquoted investments 8,814 48,712
Total investments 27,858 101,347
#
During the current financial year, a subsidiary extended an interest-free convertible loan to an investee company at a
nominal value of US$300,000. The subsidiary is entitled, at any time during the following five years from the date of
disbursement of the loan, to convert from time to time into share equity of the investee company for the entire amount or
such portion thereof on the basis of one ordinary share for every $1 of the loan amount.
Included in the convertible loans is an amount of $700,000 (2005: $700,000) extended by a subsidiary to an investee
company at an interest rate of 1% (2005: 1%) above bank prime rate per annum. This loan is convertible to shares in the
investee company.
The short-term interest rate fund in 2005 was the Fullerton Short-Term Interest Rate (“FSTIR”) Fund, an open end fund. FSTIR
Fund is a pooled fund organised as a unit trust managed by Fullerton Fund Management Company Ltd, an indirect wholly
owned subsidiary of Temasek Holdings (Private) Limited. Returns on FSTIR are benchmarked at 3-month Singapore Interbank
bid (SIBID) rate. As at 31 December 2006, the investment has been fully redeemed.