Full Annual Report 2006 - Singapore Technologies Engineering

THE WINNING SPIRIT ST Engineering AR 2006 180
Notes to the Financial Statements 31 DECEMBER 2006
(Currency – Singapore dollars unless otherwise stated)
28. DEFERRED TAX LIABILITIES
GROUP
COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
At beginning of the year 7,751 8,554 190 161
(Write-back of provision)/provision during the financial year (5,025) (2,563) 95 29
Translation difference (433) 15 – –
Acquisition of subsidiaries 10,771 2,791 – –
Changes in fair value of available-for-sale financial assets 2,126 (1,046) – –
At end of the year 15,190 7,751 285 190
The deferred tax liabilities arise as a result of:
Excess of net book value over tax written down value of
property, plant and equipment 913 1,495 75 59
Allowance for doubtful debts and stock obsolescence (271) (129) – –
Unremitted offshore interest income – 10 – –
Other temporary differences (48) 737 210 131
Property, plant and equipment fair value adjustment arising
from acquisition of subsidiaries 2,589 2,784 – –
Changes in fair value of available-for-sale financial assets 2,126 2,854 – –
Intangible assets 9,881 – – –
15,190 7,751 285 190
29. LONG-TERM BANK LOANS
EFFECTIVE
GROUP
INTEREST RATE MATURITY 2006 2005
% $’000 $’000
Bank loans 3.955 – 8.25 Up to 2012 277,384 10,568
Repayable:
Within 1 year 6,859 9,430
After 1 year 270,525 1,138
277,384 10,568
The bank loans are denominated in US dollars and Euro and secured by assets of subsidiaries.
Loans amounting to $271,461,000 are at EURIBOR with margin ranging from 0.5% to 1.1% and secured by a floating
charge over a subsidiary’s plant and machinery.