Full Annual Report 2006 - Singapore Technologies Engineering

175
Notes to the Financial Statements 31 DECEMBER 2006
(Currency – Singapore dollars unless otherwise stated)
16. DUE FROM RELATED CORPORATIONS
GROUP
COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Due from:
Related corporations 516,440 898,703 238,783 275,133
Included in the amount due from related corporations are loans amounting to $511,484,000 (2005: $892,651,000) and
$238,757,000 (2005: $275,107,000) from the Group and the Company respectively.
These loans are guaranteed by Fullerton Management Pte Ltd (“Fullerton”), a wholly owned subsidiary of Temasek Holdings
(Private) Limited and mature on varying periods within 3 months (2005: 2 months) from the financial year end. Interest rates
range from 2.45% to 5.40% (2005: 1.37% to 4.37%) per annum, which are also the effective interest rates.
17. ADVANCES AND OTHER DEBTORS
GROUP
COMPANY
NOTE 2006 2005 2006 2005
$’000 $’000 $’000 $’000
Advance payments to suppliers 114,215 140,828 – –
Other debtors, deposits and prepayments 20 91,890 67,887 1,413 3,782
Due from:
Subsidiaries – – 197,759 118,748
Associated companies 21 7,416 9,796 – –
Joint ventures 13,455 23,623 – –
Derivative financial instruments 2,063 428 – –
229,039 242,562 199,172 122,530
Amount due from joint ventures is stated after deducting allowance for doubtful debts of $nil (2005: $1,330,000).
18. AMOUNTS UNDER FUND MANAGEMENT
GROUP
2006 2005
$’000 $’000
Principal sum of amounts under fund management, at market value 228,173 311,062
Amounts under fund management are classified as available-for-sale financial assets with the fair value movements taken to
equity. However, any deficiency in fair value below principal amount is recognised to the extent of the guaranteed amount. This
applies to impairment assessment as well.
The terms of the fund management agreements, which are for periods ranging from 2 to 3 years (2005: 2 to 3 years), provide
for the following:
(a) the guarantee of the return of the principal sums from 95% to 100% (2005: 95% to 100%) by the fund managers at the
end of the relevant fund management period;
(b) the fees payable to the fund manager include a share, in specified proportions, of any surplus (determined at the end of
the relevant fund management period) arising from the management of the fund; and