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

delivered in 2005 and one vessel was delivered in 2006. These vessels were to be used by Tinjar Transport in
the ordinary course of business.
The total revenues recognised under these two contracts for the Period under Review are as follows:
FY2005 FY2006 FY2007
Five Months
Ended
31 May 2008
Period from
1 January 2008
Up to the Latest
Practicable Date
(S$’000) (S$’000) (S$’000) (S$’000) (S$’000)
Sales of vessels to Tinjar Transport ...... 6,116 1,034 — — —
As of the Latest Practicable Date, all payments under these two contracts have been fully settled.
Our Directors believe that the above transactions were carried out on an arm’s length basis and based on
normal commercial terms and market prices. We do not intend to enter into any future transactions of the
above nature with Tinjar Transport.
Inter-company Balances Between Us and Certain Interested Persons
During the Period under Review, certain Interested Persons, namely Sanwa, Yawson, Eurebon, Samling
Singapore and Samling International, paid for certain purchases of raw materials for our shipbuilding activities
on our behalf and made advances to our Company to fund our working capital requirements. These payments
and advances resulted in amounts due from us to these Interested Persons. On occasion we paid certain
expenses on behalf of these Interested Persons, and these payments partially offset the amounts due from us to
these Interested Persons. In addition, Yawson and Eurebon were engaged in owning and chartering of vessels
to third parties. As Sanwa, Yawson, Eurebon, Samling Singapore, Samling International and we were all
controlled by the Yaw Family during this time, we regularly received funding from or extended funding to
these entities.
These amounts due from us to these entities and payments made by us on behalf of these entities, resulted
in net inter-company balances due from us to these entities. On 31 December 2006, these amounts due from
us to these Interested Persons were consolidated under Brizill International. See “— Present and Ongoing
Interested Person Transactions — Inter-company Balances Between Us and Brizill International, Advances to
Us from Brizill International and the Brizill Term Loan”. In view of the proposed listing of our Company,
these entities have ceased to engage in activities similar to those of our Group in order to avoid any potential
conflict of interests.
These advances and inter-company balances were unsecured and non-interest-bearing and had no fixed
term of repayment.
The details of the net inter-company balances with each of these Interested Persons during the Period
under Review are as follows (see also “— Present and Ongoing Interested Person Transactions — Intercompany
Balances Between Us and Brizill International, Advances to Us from Brizill International and the
Brizill Term Loan”):
As at
31 December
2005
As at
31 December
2006
As at
31 December
2007
As at
31 May
2008
As at
the Latest
Practicable Date
Largest Net
Outstanding
Amount Due
from Us
for the Period
Under Review
(S$’000) (S$’000) (S$’000) (S$’000) (S$’000) (S$’000)
Net outstanding amounts
due from us to
Sanwa .................. 171 — — — — 171
Yawson ................. 3,717 — — — — 17,408
Eurebon. ................ 145 — — — — 184
Samling Singapore ......... 2,264 — 200 470 550 2,264
Samling International ....... 4,825 — — — — 4,825
Our Directors believe that these payments and advances were not made on an arm’s length basis, as
neither the Interested Persons mentioned above nor our Group (as the case may be) received any benefit under
such arrangements.
In view of the proposed listing of our Company on the SGX-ST, and by 1 January 2007, we had ceased
the above practices in relation to these Interested Persons, save as disclosed in the section “— Present and
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