Rising Above

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NOTES TO FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 200733. OTHER RESERVES (Continued)GroupCompany2007 2006 2007 2006$’000 $’000 $’000 $’000(Restated)(b)Movements (Continued):(iii)Share option reserveAt beginning of financial year 137 - 137 -Employee share option scheme- Value of employee service 2,554 137 2,554 137At end of financial year 2,691 137 2,691 137(iv)Fair value reserveAt beginning of financial year (6,836) - - -Financial assets, available-for-sale- Fair value gain/(losses) (Note 21) 32,828 (6,836) - -At end of financial year 25,992 (6,836) - -(v)Currency translation reserveAt beginning of financial year 5,014 5,879 - -Net currency translation differencesof financial statements of foreignsubsidiaries (393) (1,305) - -Minority interests 12 440 - -(381) (865) - -At end of financial year 4,633 5,014 - -(c)Share option reserveShare option reserve represents the equity-settled share options granted to employees. The reserve is made up of thecumulative value of services from employees recorded over the vesting period commencing from the grant date of equitysettledshare options, and is reduced by the expiry of the share option. When the option is exercised, the amount fromthe share option reserve is transferred to share capital. When the share option expires, the amount from the share optionreserve is transferred to accumulated gains/(losses).(d)Non-distributable statutory reservesSubsidiaries established in the PRC (the “PRC subsidiaries”) are required to maintain certain statutory reserves by transferringfrom their profit after taxation in accordance with the relevant laws and regulations and, if applicable, Articles of Associationof the PRC subsidiaries, before any dividend is declared and paid.92 YANTAI RAFFLES SHIPYARD LIMITED
NOTES TO FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 200733. OTHER RESERVES (Continued)(d)Non-distributable statutory reserves (Continued)(i)PRC Statutory Surplus ReserveThe PRC subsidiaries are required to transfer at their directors’ recommendation a certain percentage of their profitafter taxation to the statutory surplus reserve until the balance reaches 50% of their respective registered capital,where further transfers will be at their directors’ recommendation. The statutory surplus reserve can only be usedto make up prior year losses or to increase share capital, provided that the fund does not fall below 25% of theregistered capital.For the current financial year, the board of directors of the PRC subsidiaries have not approved to appropriate any oftheir profit after taxation to statutory surplus reserve (2006: $1,331,000).(ii)Staff and workers’ bonus and welfare fundThe PRC subsidiaries are required to appropriate staff and workers’ bonus and welfare fund from their profit aftertaxation calculated in accordance with the PRC accounting standards and systems. The percentage to be appropriatedis determined by the board of directors of the companies. The staff and workers’ bonus and welfare fund can onlybe used for special bonuses and collective welfare benefits to staffs and workers. The fund may not be reversed ordistributed to the owners. The staff and workers’ bonus and welfare fund, due to its nature, is classified as otherliabilities in the consolidated balance sheet and correspondingly debited to staff costs in the consolidated incomestatement.For the financial year ended 31 December 2007 and 31 December 2006, the board of directors of the PRC subsidiarieshave not approved the appropriation of staff and workers’ bonus and welfare fund.(iii)Enterprise expansion fundThe PRC subsidiaries are required to appropriate the enterprise expansion fund from their profit after taxationcalculated in accordance with the PRC accounting standards and systems. The percentage to be appropriated isdetermined by the board of directors of the PRC subsidiaries. Upon approval from the board of directors, theenterprise expansion fund can be used to expand production or to increase capital.For the financial year ended 31 December 2007 and 31 December 2006, the board of directors of the PRC subsidiarieshave not approved the appropriation of enterprise expansion fund.(iv)Capital reserveCapital reserve represents contribution to paid-in capital in excess of the registered capital of the PRC subsidiaries andappropriation from retained earnings in respect of waiver of debts in accordance with the PRC rules and regulations.The reserve is non-distributable under the PRC laws.ANNUAL REPORT 2007 93
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21 August 2007“Taisun” reaches
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AT A GLANCECORPORATE HIGHLIGHTS IN
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AT A GLANCEFINANCIAL REVIEWReview o
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CHAIRMAN’ S MESSAGEDear Sharehold
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OPERATIONS REVIEWBY THE CEODear Sha
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30,000 DWTSelf Unloading Bulk Carri
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56 7 85 86MR FRANCIS JAMES REIDYInd
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CORPORATE STRUCTURE100%Raffles Yach
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Yantai Raffles Shipyard LimitedSing
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SUPPORT INFRASTRUCTUREHUMAN RESOURC
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SUPPORT INFRASTRUCTUREQUALITY ASSUR
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FINANCIAL CONTENTSCORPORATE GOVERNA
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CORPORATE GOVERNANCE REPORTFOR THE
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CORPORATE GOVERNANCE REPORTFOR THE
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DIRECTORS’ REPORTFOR THE FINANCIA
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DIRECTORS’ REPORTFOR THE FINANCIA
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INDEPENDENT AUDITORS’ REPORTFOR T
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CONSOLIDATED INCOME STATEMENTFOR TH
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Rising Above

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