Annual Report 2006 - Venture Corporation Limited

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notes to financial statements December 31, 2006 16 GOODWILL (Cont’d) The group prepares cash flow forecasts derived from the most recent financial budgets approved by management for 2007 and extrapolates cash flows for the following four years based on estimated growth rates for each CGU. The growth rate used to extrapolate the cash flows of the respective CGUs beyond the five year forecast is between 2% and 3%, which does not exceed the long term growth rates for the relevant markets. (a) (b) The rate used to discount the cash flows from GES International Ltd and its subsidiaries is 9.3% (2005: NA). Revenue is expected to achieve an average annual growth rate of 9.3% over the next 5 years. The rate used to discount the cash flows from Univac Precision Engineering Pte Ltd and its subsidiaries is 12.1% (2005: 14.6%). Revenue is expected to achieve an average annual growth rate of 35.8% for medical & packaging products, 10% for automotive & industrial products, 5.3% for computers & peripherals and 28% for digital & consumables over the next 5 years. (c) The rate used to discount the cash flows from Venture Electronics Solutions Pte Ltd is 12.7% (2005: 15.3%). Revenue is expected to achieve an average annual growth rate of 3% over the next 5 years. (d) The rate used to discount the cash flows from Scinetic Engineering Pte Ltd is 12.1% (2005: 15.3%). Revenue is expected to achieve an average annual growth rate of 4.5% over the next 5 years. Based on the cashflow projections, no impairment loss has been recognised. 17 BANK OVERDRAFT AND LOANS The Company The Group 2006 2005 2006 2005 $’000 $’000 $’000 $’000 Current liabilities Bank overdraft (unsecured) - - - 31 Bank loans 600,000 - 631,196 5,813 600,000 - 631,196 5,844 Non-current liabilities Bank loans - - - 236 The short term bank loans of the company and the group bear floating interest rates ranging from 3.63% to 3.83% (2005: Nil) per annum and 3.63% to 8.25% (2005: 1.63% to 7.15%) per annum respectively. The effective interest rates for the company is 3.73% (2005: Nil) and the group is 3.77% (2005: 4.10%). The bank loans in 2006 are unsecured. The long term bank loan of a subsidiary in 2005 bore a floating interest rate of 2.75% per annum. This loan, together with a portion of the short term bank loan was repaid during 2006. The short term bank loan in 2005 of certain subsidiaries was covered by proportionate guarantees provided by the shareholders of the subsidiaries. 72 venture corporation limited
notes to financial statements December 31, 2006 17 BANK OVERDRAFT AND LOANS (Cont’d) The company’s and group’s bank loans that are not denominated in the functional currencies of the respective entities are as follows: The Company The Group 2006 2005 2006 2005 $’000 $’000 $’000 $’000 Singapore dollars - - - 746 Chinese yuan - - 1,743 - 18 TRADE PAYABLES The Company The Group 2006 2005 2006 2005 $’000 $’000 $’000 $’000 Outside parties 61,978 64,006 445,131 386,709 The average credit period on purchases of goods is 61 days (2005: 52 days). Trade payables principally comprise amounts outstanding for trade purchases and ongoing costs. The company’s and groups’ trade payables that are not denominated in the functional currencies of the respective entities are as follows: The Company The Group 2006 2005 2006 2005 $’000 $’000 $’000 $’000 Singapore dollars - - 4,550 1,626 United States dollars 52,821 53,479 116,591 94,302 Japanese yen 337 - 10,354 806 Euros 497 376 2,640 742 Malaysian ringgit 6 - 12,689 29,586 Great Britain pounds 36 58 40 60 Chinese yuan - - 2,517 - annual report 2006 73
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v e n t u r e c o r p o r a t i o n
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We aim to be the best and most reli
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annual report 2006 0
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group of companies SINGAPORE Ventur
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2006 was one of the best years in p
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The Group has high expectations for
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GOH GEOK LING Non-Executive Directo
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corporate information Registered Of
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