O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX
O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX
O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX
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O<strong>TTO</strong> M<strong>ARINE</strong> L<strong>IMITED</strong> AND ITS SUBSIDIARIES<br />
E. Notes to the Condensed Consolidated Financial Statements<br />
1. General<br />
The Company (Registration No. 197902647M) is a public limited company (with effective from<br />
17 March 2008) incorporated in Singapore with its principal place of business and registered office at<br />
9 Temasek Boulevard #33-01 Suntec Tower Two, Singapore 038989. The condensed consolidated<br />
financial statements are expressed in Singapore dollars.<br />
The principal activities of the Company and the Group consist of the construction, fabrication,<br />
repair and conversion, and chartering of ships.<br />
The condensed consolidated financial statements of the Group for the 5 months ended May 31,<br />
2008 were authorised for issue by the Board of Directors on September 2, 2008.<br />
2. Basis of Preparation<br />
The condensed consolidated financial statements have been prepared using accounting policies<br />
consistent with Singapore Financial Reporting Standards and in accordance with Singapore Financial<br />
Reporting Standards 34 “Interim Financial Reporting”.<br />
In the preparation of the condensed financial statements, the Group has adopted Singapore Financial<br />
Reporting Standards 107 “Financial Instruments — Disclosure” for the financial period beginning<br />
January 1, 2008. However, FRS 107 is not applicable for the condensed consolidated financial<br />
statements. The application of FRS 107 will not affect any of the amounts recognised in the financial<br />
statements but will change the disclosure presently made in relation to the Group’s financial instruments<br />
and the objectives, policies and processes for managing capital.<br />
3. Significant Accounting Policies<br />
The condensed consolidated financial statements have been prepared in accordance with the<br />
historical cost convention, except for the revaluation of certain financial instruments.<br />
The same accounting policies, presentation and methods of computation are followed in these<br />
condensed consolidated financial statements as were applied in the preparation of the Group’s financial<br />
statements for the year ended December 31, 2007.<br />
4. Operations in the Interim Period<br />
The Group’s revenue and expenses do not accrue evenly throughout a financial period or financial<br />
year for reasons explained below:<br />
Recognition of Revenue and Expenses Under Long-term Construction Contracts<br />
The majority of our revenue and costs are recognised based on percentage of completion basis. The<br />
percentage of completion is determined on the achievement of certain physical milestones. As a result,<br />
the revenue and costs of sales do not accrue evenly throughout the reporting periods.<br />
5. Related Party Transactions<br />
Related parties are entities with common direct or indirect shareholders and/or directors. Parties are<br />
considered to be related if one party has the ability to control the other party or exercise significant<br />
influence over the other party in making financial and operating decisions.<br />
Some of the transactions and arrangement of the Group are with related parties and the effects of<br />
these transactions on the basis determined between the parties are reflected in these condensed<br />
consolidated financial statements. The related party balances are unsecured, interest-free and repayable<br />
on demand unless otherwise stated.<br />
A2-7
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