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

26 Other (Expense) Income
OTTO MARINE LIMITED AND ITS SUBSIDIARIES
2007 2006 2005
$’000 $’000 $’000
Interest income .............................................. 6,934 164 —
Gain on disposal of property, plant and equipment .................... 17 — —
Other income ............................................... 42 — —
Rental income. .............................................. — — 307
Net foreign exchange (loss) gain ................................. (1,937) 265 (1,276)
Deferred gain from sale of vessels to associates (Note 19) .............. (13,101) — —
(8,045) 429 (969)
27 Finance Costs
2007 2006 2005
$’000 $’000 $’000
Interest expense to related parties ..................................
Interest expense to outside parties:
32 868 294
Bank loans ................................................. 5,852 1,509 1,748
Finance leases .............................................. 21 6 —
5,905 2,383 2,042
28 Income Tax Expense
2007 2006 2005
$’000 $’000 $’000
Current. ...................................................... 1,449 449 513
Overprovision in prior year . . . ..................................... — — (51)
1,449 449 462
The income tax expense varied from the amount of income determined by applying the Singapore
income tax rate of 18% (2006: 20%; 2005: 20%) to profit before income tax as a result of the following
differences:
2007 2006 2005
$’000 $’000 $’000
Profit before income tax ...................................... 55,124 14,152 53
Tax at statutory tax rate ....................................... 9,922 2,830 11
Non-deductible expenses ...................................... 7,777 1,756 903
Non taxable income ......................................... (11,443)* (5,436) (845)
Tax effect of partial tax exemption and rebate ...................... (40) (11) (11)
Effect of different tax rates .................................... (4,767) (1,307) (684)
Utilisation of deferred tax assets previously not recognised. ............ — — (229)
Deferred tax benefits not recognised ............................. — 2,617 1,368
Overprovision of current tax in prior years ......................... — — (51)
1,449 449 462
* Certain of the non-taxable income relates to income derived from shipping operations which is
exempted from income tax under Section 13A of the Singapore Income Tax Act, Cap. 134.
As at the balance sheet date, deferred tax liability arising from undistributed profits of subsidiaries have
not been recognised because the Group controls the dividend policy of the subsidiaries and has
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