Notes to the Financial Statements - SingTel

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Notes to the Financial StatementsFor the financial year ended 31 March 201138. OPERATING LEASE COMMITMENTSThe future aggregate minimum lease payments under non-cancellable operating leases contracted for at the end of the reportingperiod but not recognised as liabilities, were as follows -GroupCompany2011 2010 2011 2010S$ Mil S$ Mil S$ Mil S$ MilNot later than one year 436.1 453.8 95.5 158.6Later than one but not later than five years 1,209.7 1,394.6 313.7 215.6Later than five years 1,775.8 1,385.5 794.6 515.83,421.6 3,233.9 1,203.8 890.0Sale and operating leaseback contracts were entered into for certain property, plant and equipment for a period of 20 yearscommencing from 2 March 2005 and 18 January 2010. The above commitments included the minimum amounts payable ofS$39.4 million (2010: S$37.8 million) per annum under those contracts. The operating lease payments under these contractsare subject to review every year with a general increase not exceeding the higher of 2% or Consumer Price Index percentageof the preceding year.39. COMMITMENTS39.1 The commitments for capital and operating expenditures, and investments which had not been recognised in the financialstatements, excluding the commitments shown under Note 39.2, were as follows -GroupCompany2011 2010 2011 2010S$ Mil S$ Mil S$ Mil S$ MilAuthorised and contracted for 1,025.1 928.7 67.0 105.3The above included equity funding commitments for an associated company of US$51 million (S$64 million) (2010: US$66million) and commitments to purchase capacity in the cable network of a joint venture company of A$9.2 million (S$12 million)(2010: A$57 million).39.2 As at 31 March 2011, the Group’s commitments for the purchase of broadcasting program rights were S$397.0 million (2010:S$602.6 million). The commitments included only the minimum guaranteed amounts payable under the respective contractsand do not include amounts that may be payable based on revenue share arrangement which cannot be reliably determined asat the end of the reporting period.180 SINGAPORE TELECOMMUNICATIONS LIMITED AND SUBSIDIARY COMPANIES
Notes to the Financial StatementsFor the financial year ended 31 March 201140. CONTINGENT LIABILITIES(a)GuaranteesAs at 31 March 2011,(i)(ii)(iii)The Group and Company provided bankers’ and other guarantees, and insurance bonds of S$583.6 million and S$389.6million (31 March 2010: S$687.6 million and S$435.5 million) respectively.The Company provided guarantees for loans of S$450 million (31 March 2010: S$1.28 billion) drawn down under variousloan facilities entered into by SGT. The Company also provided guarantees for SGT’s notes issue of S$600 million andUS$600 million due in 2020 and 2021 respectively.The Company provided a guarantee for US$90 million (S$114 million) (31 March 2010: US$94 million) on a proportionateshare basis in respect of a loan obtained by an associated company.(b)Appeal against the decision by Komisi Pengawas Persaingan Usaha Republik Indonesia (“KPPU”) (Republic of IndonesiaCommission for Supervision of Business Competition) (the “Commission”)SingTel announced on 29 June 2007 that SingTel and its wholly-owned subsidiary, Singapore Telecom Mobile Pte Ltd (“SingTelMobile”), had been called by the Commission to attend before it for an examination concerning the allegation of a violation byTemasek Business Group of Article 27(a) 1 of Law No.5 of 1999 (the “Law”) relating to business competition matters.On 20 November 2007, SingTel announced that the Commission had issued its decision (the “Decision”). The Decision statesthat SingTel and SingTel Mobile together with other parties to the proceedings (the “Parties”) are in violation of Article 27(a) ofthe Law and that Telkomsel is in violation of Article 17(1) 2 of the Law.The Decision orders, amongst other things, that (i) the Parties divest either Telkomsel or PT Indosat Tbk within two years, (ii)Telkomsel reduces tariffs by at least 15 per cent and (iii) each of the Parties and Telkomsel pay 25 billion rupiah (approximatelyS$4 million) in fines.SingTel and SingTel Mobile filed an appeal to the District Court of Central Jakarta on 19 December 2007. The District Courtannounced its ruling on 9 May 2008 dismissing SingTel’s and SingTel Mobile’s appeal, but (i) setting aside the order thatTelkomsel reduce tariffs by at least 15 per cent; and (ii) reducing the fine for each of the Parties and Telkomsel to 15 billionrupiah (approximately S$2 million). SingTel and SingTel Mobile appealed to the Supreme Court of the Republic of Indonesia on22 May 2008.By a written decision dated 9 September 2008, of which official notification was given to SingTel and SingTel Mobile on 25November 2008, the Supreme Court dismissed the appeal.1 Article 27(a) relates to the ownership of majority shares in several similar companies conducting business activities in the same field in thesame market.2 Article 17(1) relates to the control of the production and or marketing of goods and or services which may result in monopolistic practices andor unfair business competition.ANNUAL REPORT 2010/2011 181
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Notes to the Financial Statements - SingTel

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