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NOTES TO FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 200738. RESTATEMENT OF COMPARATIVE (Continued)GroupCompany2006 2006 2006 2006$’000 $’000 $’000 $’000As previously reported As restated As previously reported As restatedNon-current assetsAmounts due from subsidiaries (non-trade) - 64,708Advances to subsidiaries 75,537 -Financial assets, available-for-sale 11,999 12,008Property, plant and equipment 210,874 220,401 1,559 194Prepayments - 590Land and sea use rights - 3,363Intangible assets 13,462 15,844 - 1,366Deferred tax assets 1,100 5,828 1,100 580LIABILITIESCurrent liabilitiesProgress billings in excess of construction work-inprogress258,605 261,293 122,541 98,370Advances from customers - 1,853 - 1,718Trade and other payables 55,925 71,131 33,195 6,621Borrowings 71,696 98,218 - 15Amounts due to subsidiaries (trade) - 30,946Income tax payable 2,100 4,064Provision for other liabilities 4,843 10,439 4,843 10,439Non-current liabilitiesBorrowings 42,672 15,943Other long term liabilities - 1,752EQUITYEquity attributable to equity holders of the CompanyOther reserves (7,908) 4,671Accumulated losses (46,242) (116,647) (33,790) (71,260)Minority interests 17,196 11,01139. SUBSEQUENT EVENTS AFTER BALANCE SHEET DATEOn 31 January 2008, a wholly-owned subsidiary of the Group, Haiyang Raffles Offshore Equipment Ltd was incorporated andheld through Yantai Raffles Offshore Ltd. The registered and paid-in capital is RMB100,000,000. The principal activities of thesubsidiary are design, construct, sale and repair offshore marine facilities.On 22 February 2008, the State Administration of Taxation of China issued a circular Caishui [2008] No. 001, which statesthat distribution of dividends after 1 January 2008 from Pre-2008 profits will be exempt from withholding tax on distributionto foreign investors. As a result, there should be no deferred liabilities arising from undistributed profits of China subsidiariesaccumulated up till 31 December 2007. The provision of deferred tax liabilities however, would be required to the extent per FRS12.39 on profits accumulated from 1 January 2008 onwards.40. AUTHORISATION OF FINANCIAL STATEMENTSThe consolidated financial statements for the financial year ended 31 December 2007 were authorised for issue in accordancewith a resolution of the board of directors of Yantai Raffles Shipyard Limited on 25 March 2008.ANNUAL REPORT 2007 101