O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX

Type Activity Date Granted Expiry Date
Letter from the State Minister of
Environmental Affairs
concerning Non-Objection to
the Utilisation of Copper Slag
for Sand Blasting ........... Utilisation of Copper
Slag for Sand Blasting
Limited Importer’s Identification
Number .................. Import of Capital
Goods
22 August 2005 N.A.
25 November 2004 N.A.
Insurance
Our shipyard facilities, vessels and equipment are insured in accordance with standard industry practice
with insurance underwriter. We maintain several insurance policies in the course of our business, some of
which are briefly described below. See “Risk Factors — Risks Relating to Our Business and Operations — We
may not have adequate insurance to cover all risks we face, and we may suffer an uninsured loss”.
Our shipyard has ship repairer’s and ship builder’s liability insurance coverage for loss or damage to
vessels arising from perils covered under the policies including third party claims, while the vessels are being
repaired, built, launched or undergoing sea trials. The coverage for ship repairer’s risk is limited to
S$2.0 million in respect of any one incident. Third party claims for situations such as injury or death, or
property damage sustained by unexpected and sudden accidents which may occur during the course of
construction of the vessels are covered by general liability insurance which is limited to S$100,000 in respect
of any one person, S$500,000 for any one accident and S$250,000 for property damage.
We maintain property all-risks (including earthquake) insurance, for our equipment and machinery in our
shipyard. We are also insured against loss resulting from interruption or interference of business arising from
loss, destruction or damage to property and assets for up to S$13,528,283.
For our employees working at the shipyard and the employees employed by our subcontractors, we have
arranged personal accident insurance up to a sum of IDR 75.0 million in the event of death or permanent
disability and IDR 20.0 million in respect of medical expenses. For all our workers in Singapore, we maintain
medical coverage which covers treatment of all such employees.
The vessels we own are covered up to their respective hull cost values in respect of any loss or damage to
their hull and machinery. We maintain protection and indemnity insurances over our vessels. Additionally we
maintain individualised motor vehicle insurance on all our motor vehicles in Batam, Indonesia which includes
comprehensive all risk insurance on each individual vehicle and is tailored specifically to each vehicle.
Our Directors believe that we have adequate insurance coverage for the purpose of our business
operations. However, we will continue to evaluate our existing insurance policies to determine whether the
insurance policies and insurance coverage are adequate for our purposes. See “Risk Factors — Risks Relating
to Our Business and Operations — We may not have adequate insurance to cover all risks we face, and we
may suffer an uninsured loss”.
We have not experienced any difficulties obtaining or renewing our insurance policies, or on realising
claims under any of our insurance policies. We believe that this level of insurance cover is in line with
standard market practice for the industry.
Competition
Our shipbuilding and ship repair and conversion businesses operate in a highly competitive industry.
The primary bases for competition are the matching of the shipyard with its capacity and capabilities type
of vessel, price, delivery schedule/availability and the type of equipment.
Our immediate competitors in the Asia-Pacific region in respect of our shipbuilding business include
Keppel Singmarine Pte. Ltd., Labroy Marine Pte Ltd, Pan-United Shipyard Pte Ltd, Jaya Holdings Limited
and ASL Marine Holdings Limited. For ship repair, our competitors include ASL Marine Holdings Limited
and Pan-United Shipyard Pte Ltd.
As we start to concentrate more on building offshore vessels with higher specifications, we will have to
compete against the established European shipyards such as Aker. Conversely, in respect of construction of the
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