Download

4. Interest and Investment IncomeGroup2006 2005$’000 $’000Gross dividends from:Quoted investments - 254Unquoted investments 2,020 335Interest from deposits and short-term loans with:Banks 9,073 13,071Holding and related companies (see note below) 59,421 46,035Associated companies 34,286 13,562Other companies 4,567 3,139109,367 76,396Interest capitalised (52,654) (42,380)56,713 34,016Included in interest income from deposits and short-term loans with holding and related companies is $52,654,000(2005: $42,380,000) of interest earned from loans to certain subsidiary companies which capitalised the interest asproperty development cost. Interest on deposits with related companies is earned at rates ranging between 2.9% and4.9% (2005: 0.17% and 5.4%) per annum.5. Interest ExpenseGroup2006 2005$’000 $’000Fair value (loss)/gain on revaluation of interest rate hedging instruments (2,403) 9,464On convertible bond (6,899) -On bond due 2005 - (2,237)On fixed term loans from banks (24,425) (14,234)On other term loans and overdrafts from:Related companies (49,924) (36,538)Banks (4,823) (4,934)Other companies (5,933) (1,364)On borrowings under MTN Programme (see also Notes 12 and 25) (28,665) (17,934)(123,072) (67,777)Interest capitalised (see also Note 4) 52,654 42,380(70,418) (25,397)Interest is charged by related companies at rates ranging from 3.6% to 6.59% (2005: 1.85% to 6.23%) per annum.Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006191