Singapore Airlines 2004 Annual Report Download - page 94

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Notes to the Financial Statements
31 March 2004
92 SIA Annual Report 03/04
18 Goodwill on Consolidation (in $ million)
The Group
31 March
2004 2003
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Cost
Balance at 1 April 1.5 –
Acquisitions through business combinations – 1.5
–––––––––––––––––––––––––––––––
Balance at 31 March 1.5 1.5
–––––––––––––––––––––––––––––––
Accumulated amortization
Balance at 1 April *–
Amortization charge for the year 0.1 *
–––––––––––––––––––––––––––––––
Balance at 31 March 0.1 *
–––––––––––––––––––––––––––––––
Net carrying amount 1.4 1.5
–––––––––––––––––––––––––––––––
* Amount less than $0.1 million.
In 2002-03, SATS acquired 66.7% equity interest in Country Foods Pte Ltd at a cost of $6.0 million. Goodwill on
acquisition of $1.5 million was capitalized and amortized over a period of 20 years.
19 Subsidiary Companies (in $ million)
The Company
31 March
2004 2003
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Investment in subsidiary companies (at cost)
Quoted equity investments ## ##
Unquoted equity investments 1,772.4 1,773.2
–––––––––––––––––––––––––––––––
1,772.4 1,773.2
Impairment loss (16.6) (9.8)
–––––––––––––––––––––––––––––––
1,755.8 1,763.4
Loans to subsidiary companies 180.7 527.6
–––––––––––––––––––––––––––––––
1,936.5 2,291.0
–––––––––––––––––––––––––––––––
Funds from subsidiary companies (698.9) (784.4)
Amounts owing by subsidiary companies 219.8 222.5
Amounts owing to subsidiary companies (207.7) (282.4)
–––––––––––––––––––––––––––––––
Amounts owing to subsidiary companies, net (686.8) (844.3)
–––––––––––––––––––––––––––––––
Market value of quoted equity investments 3,279.9 2,827.4
–––––––––––––––––––––––––––––––
## The value is $2.
During the financial year, the Company disposed of its 51% equity interest in Aviation Software Development
Consultancy India Limited for a consideration of $5.3 million (INR140.3 million). The surplus on disposal of the
subsidiary company was reported as exceptional item (refer to note 9 to the financial statements).
During the financial year, the Company provided $6.8 million impairment loss against the cost of investment in one of
its subsidiary company, SIA Properties (Pte) Ltd.
Loans to subsidiary companies are unsecured and have repayment terms of up to 10 years. Interest on loans to
subsidiary companies are computed using LIBOR, Singapore Interbank Bid Offer Rate (“SIBOR”) and SGD Swap-Offer
Rates, and applying agreed margins. The interest rates ranged from 0.71% to 1.99% (2002-03: 1.04% to 2.55%) per
annum.
Funds from subsidiary companies are unsecured and have varying repayment terms. Interest on funds from subsidiary
companies are computed using prevailing market rates which ranged from 0.25% to 0.90% (2002-03: 0.13% to
1.51%) per annum for Singapore Dollar funds, and from 0.93% to 1.40% (2002-03: 1.18% to 1.94%) per annum for
US Dollar funds.