Full Annual Report 2006 - Singapore Technologies Engineering

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185 Notes to the Financial Statements 31 DECEMBER 2006 (Currency – Singapore dollars unless otherwise stated) 39. TAXATION GROUP 2006 2005 $’000 $’000 Current income tax Current year 115,321 95,554 Overprovision in respect of prior years (13,762) (9,095) Associated companies 7,748 8,728 109,307 95,187 Deferred income tax Current year 894 (2,151) Overprovision in respect of prior years (1,306) (1,043) 108,895 91,993 Deferred income tax related to items charged or credited directly to equity: Net change in fair value of available-for-sale financial assets 3,344 (1,046) Net change in fair value of derivative financial instruments designated in cash flow hedges (161) (385) 3,183 (1,431) The Group As at 31 December 2006, subsidiaries of the Group have potential tax benefits of approximately $40,125,000 (2005: $36,885,000) arising from unutilised tax losses, unabsorbed wear and tear allowances and other temporary differences, which are available for set-off against future taxable profits. These tax benefits have not been recognised in the financial statements due to the uncertainty of its recoverability. The use of these potential tax benefits is subject to the agreement of the tax authorities and compliance with certain provisions of the tax legislation of the respective countries in which the subsidiaries operate. A reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December is as follows: Profit from continuing operations before taxation 564,339 503,245 Taxation at statutory tax rate of 20% 112,868 100,649 Adjustments : Income not subject to tax (21,892) (7,022) Expenses not deductible for tax purposes 20,264 6,608 Higher effective tax rates of other countries 15,523 4,057 Overprovision in prior years, net (15,068) (10,138) Income subject to concessionary tax rates (4,444) (3,010) Deferred tax assets not recognised 6,403 10,468 Deferred tax assets previously not recognised now recognised (3,432) (6,304) Others (1,327) (3,315) Current financial year’s taxation charge 108,895 91,993
THE WINNING SPIRIT ST Engineering AR 2006 186 Notes to the Financial Statements 31 DECEMBER 2006 (Currency – Singapore dollars unless otherwise stated) 40. DIVIDENDS GROUP 2006 2005 $’000 $’000 Final tax exempt dividend paid in respect of the previous financial year of 4.0 cents (2005: 4.0 cents) per share 116,580 115,686 Special tax exempt (one-tier) dividend paid in respect of the previous financial year of 9.6 cents (2005: 8.39 cents) per share 279,792 242,653 396,372 358,339 Additional final dividend paid in respect of the previous year due to issue of shares under ESOS/ESOP before books closure date 3,101 1,430 399,473 359,769 The directors propose a final tax exempt (one-tier) dividend of 4.0 cents per share (2005: 4.0 cents) amounting to $117,850,000 (2005: $116,580,000) and a special tax exempt (one-tier) dividend of 11.11 cents per share (2005: 9.6 cents) amounting to $327,277,000 (2005: $279,792,000), in respect of the year ended 31 December 2006. The dividends have not been recognised as a liability as at year end as it is subject to approval at the Annual General Meeting of the Company. 41. EARNINGS PER SHARE Basic earnings per share The calculation for basic earnings per share is based on: Consolidated profit after taxation and minority interests 445,127 396,308 GROUP 2006 2005 Number of shares (’000) The weighted average number of ordinary shares is arrived at as follows: Issued ordinary shares at beginning of the year 2,914,496 2,892,165 Weighted average number of ordinary shares issued during the year 23,234 13,701 Weighted average number of ordinary shares 2,937,730 2,905,866 Diluted earnings per share When calculating diluted earnings per share, the weighted average number of shares is adjusted for the effect of all dilutive potential ordinary shares. The number of unissued shares under option granted under the ESOS/ESOP and their exercise prices are set out in Note 3. The average fair value of one ordinary share during the financial year ended 31 December 2006 was $2.97 (2005: $2.54) per share. The weighted average number of ordinary shares adjusted for the unissued shares under option is as follows: Number of shares (’000) Weighted average number of ordinary shares (used in the calculation of 2,937,730 2,905,866 basic earnings per share) Weighted average number of unissued shares under option 134,206 114,494 Number of shares that would have been issued at fair value (104,474) (93,972) Weighted average number of ordinary shares (diluted) 2,967,462 2,926,388
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THE WINNING SPIRIT ANNUAL REPORT 20
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11 Peter SEAH Lim Huat Chairman (le
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THE WINNING SPIRIT ST Engineering A
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43 Corporate Governance COMPLIANCE
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47 Investor Relations ST ENGINEERIN
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49 Share Price Performance ST ENGIN
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57 Operating Financial Review GROUP
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59 Operating Financial Review PERFO
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61 Operating Financial Review Capit
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LAND SYSTEMS SECTOR MARINE SECTOR C
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67 Aerospace FLYING HIGH WITH TOTAL
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69 Aerospace Full Year Performance
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75 Land Systems BREAKING NEW GROUND
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77 Land Systems Major Acquisitions
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91 Directors’ Report AS AT 31 DEC
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101 Directors’ Report AS AT 31 DE
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103 Statement by Directors We, Pete
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105 Balance Sheets AS AT 31 DECEMBE
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107 Statements of Changes in Equity
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109 Consolidated Statement of Cash
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111 Consolidated Statement of Cash
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Page 186 and 187: 201 SECTORAL FINANCIAL REVIEW - AER
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Page 206 and 207: 221 Group Structure - Singapore Tec
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Page 210 and 211: 225 CORPORATE INFORMATION BOARD OF
Page 212 and 213: SINGAPORE TECHNOLOGIES ENGINEERING
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Full Annual Report 2006 - Singapore Technologies Engineering

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