Singapore Airlines 2002 Annual Report Download - page 57

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SIA Annual Report 01/02 57
Report by the Board of Directors
13 Other Statutory Information (continued)
(d) As at the date of this report:-
(i) there are no charges on the assets of the Group and of the Company which have arisen since the end of the financial year to
secure the liabilities of any other person; and
(ii) there are no material contingent liabilities which have arisen since the end of the financial year.
(e) No contingent liability or other liability has become enforceable or is likely to become enforceable within the period of twelve
months after the end of the financial year which, in the opinion of the directors, will or may affect the ability of the Company or its
subsidiary companies to meet their obligations as and when they fall due.
(f) In the opinion of the directors, no item, transaction or event of a material and unusual nature has arisen in the interval between the
end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Group
or of the Company for the financial year in which this report is made.
14 Subsequent Events
(a) On 3 April 2002, one A310-300 passenger aircraft was traded-in to Rolls Royce Aircraft Management.
(b) On 2 May 2002, it was announced that Singapore Airlines (SIA) and Virgin Investments SA have agreed to subscribe for additional
shares in Virgin Atlantic Limited (VAL), amounting to GBP25.0 million (S$65.7 million). In line with SIA’s 49.0% stake in VAL, SIA’s
portion of this subscription amounts to GBP12.3 million (S$32.2 million). The additional capital is for the purpose of increasing
VAL’s working capital and funding future capital expenditure requirements.
(c) Corporate tax rate, as announced on 3 May 2002, is reduced to 22.0% with effect from Year of Assessment 2003. In
accordance with SAS 12 (2001) Income Taxes, and SAS 10 (2000) Events After The Balance Sheet Date, this is a non-adjusting
subsequent event and the financial effect of the reduced tax rate will be reflected in the 31 March 2003 financial year.
The current period taxation charge of $233.8 million and $173.5 million for the Group and the Company respectively, are
computed based on the year end prevailing tax rate of 24.5%. Applying the reduced tax rate of 22.0%, the taxation charge for the
year, including write-back of deferred tax balances provided in the prior years, would be $138.7 million and $99.5 million for the
Group and the Company respectively.
In compliance with SAS 12 (2001) Income Taxes, the Group has with effect from this financial year provided for full deferred
taxation. Thus, the deferred tax liability as at 31 March 2002 is computed based on the taxable temporary differences at year end
using the prevailing tax rate of 24.5%. Applying the reduced tax rate of 22.0%, the deferred tax liability at 31 March 2002 would
be $2,392.6 million and $1,980.8 million for the Group and the Company respectively.
The aggregate adjustments in the next financial year of the current and deferred taxation charges are estimated to be $277.8
million and $225.1 million for the Group and the Company respectively.
15 Auditors
The auditors, Ernst & Young, Certified Public Accountants, have expressed their willingness to accept re-appointment.
On behalf of the Board,
KOH BOON HWEE
Chairman
CHEONG CHOONG KONG
Deputy Chairman/Chief Executive Officer
Dated this 17th day of May 2002