Full Annual Report 2006 - Singapore Technologies Engineering

181
Notes to the Financial Statements 31 DECEMBER 2006
(Currency – Singapore dollars unless otherwise stated)
30. OTHER LOANS
Included in other loans are:
(a) US dollar denominated term notes of $1.5 million (US$1.0 million) (2005: $1.7 million (US$1.0 million)) and $0.3 million
(US$0.2 million) (2005: $0.4 million (US$0.2 million)) owing to the Pennsylvania Industrial Development Authority and
the Industrial Properties Corporation, respectively, by a US entity of the Group. These notes are secured by assets of the
entity and bear interest, respectively, at 2.75% and 4.0% (2005: 2.75% and 4.0%) per annum, which are also the effective
interest rates, and are payable through 1 July 2019 and 28 June 2019, respectively.
Another US dollar denominated term note of $0.6 million (US$0.4 million) (2005: $0.6 million (US$0.4 million)) is owed
by the same entity to the Pennsylvania Department of Community and Economic Development. This note is unsecured,
bears interest of 2.75% (2005: 2.75%) per annum, which is also the effective interest rate, and is payable through
1 February 2012.
(b) an amount of $194,000 (2005: $194,000) relating to a long-term loan from a minority shareholder of a subsidiary. The
loan is unsecured, interest-free and the shareholder has indicated that they will not request for the repayment of the loan
within the next 12 months.
(c) Included in other loans in the prior year are the following:
– an amount of $669,000 relating to a loan of an overseas subsidiary. The loan has been repaid during the year.
– an amount of $2,843,000 relating to short-term loans from minority shareholders of a subsidiary. The loans were
unsecured, bore interest at 7% per annum, which was also the effective interest rate. The loans were forgiven during
the year.
31. DUE TO A SUBSIDIARY
Amount due to a subsidiary in the Company is unsecured, interest-free and is not repayable in the foreseeable future.
32. TURNOVER
Turnover represents invoiced value of sales/services less returns and discounts given and billings recognised on contracts as
follows:
GROUP
2006 2005
$’000 $’000
Sale of goods 2,495,426 1,330,439
Service income 1,990,332 2,007,456
4,485,758 3,337,895