Singapore Airlines 2003 Annual Report Download - page 97

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95
SIA Annual Report 02/03
Notes to the Financial Statements
31 March 2003
21 Associated Companies (in $ million)
The Group The Company
31 March 31 March
2003 2002 2003 2002
Share of net tangible assets of associated
companies at acquisition date 371.2 324.2
Goodwill on acquisition of associated companies 1,626.2 1,621.6
Unquoted investments at cost 1,997.4 1,945.8 1,724.1 1,689.6
Impairment loss (25.6) (25.6) (9.4) (9.4)
1,971.8 1,920.2 1,714.7 1,680.2
Goodwill written-off to reserves (1,613.0) (1,613.0) – –
Accumulated amortization of goodwill on
acquisition (6.3) (5.1) – –
Currency realignment 9.7 20.8 – –
Share of post acquisition reserves 125.5 43.0 – –
487.7 365.9 1,714.7 1,680.2
Loans to associated companies 23.1 29.5 7.1 7.2
Write-down of loans (10.1) (9.9) – –
13.0 19.6 7.1 7.2
500.7 385.5 1,721.8 1,687.4
Amounts owing by associated companies 0.5 0.3 – –
Amounts owing to associated companies (20.0) – (20.0) –
Amounts owing (to)/by associated
companies, net (19.5) 0.3 (20.0) –
The Company acquired additional shares in Virgin Atlantic Limited ("VAL") for $33.7 million (GBP12.3 million).
These were financed by waiver of preference dividends of $13.7 million during the year, and a cash payment of
$20.0 million paid on 29 April 2003. There was no change in the Company’s 49.0% equity stake in VAL.
Asian Frequent Flyer Pte Ltd was liquidated on 23 October 2002.
On 27 February 2003, SATS acquired an additional 5.0% equity interest in Evergreen Air Cargo Services Corporation
for a consideration of $3.1 million. Goodwill arising from the additional equity interest amounted to $0.4 million,
and the total equity interest held by SATS is 25.0%.
On 24 June 2002, SIA Engineering Company Limited ("SIAEC") exercised its option to acquire an additional 10.0%
equity interest in Rohr Aero Services-Asia Pte Ltd for $10.1 million. This brings the total equity interest held by
SIAEC to 40.0%. Goodwill arising from the additional equity interest, amounting to $4.2 million was capitalized and
amortized over a period of 10 years.
During the financial year, SIAEC and International Aerospace Tubes incorporated a company, International Aerospace
Tubes Asia Pte Ltd ("IAT-Asia Pte Ltd"). SIAEC injected $3.6 million for its 33.3% equity interest in IAT-Asia Pte Ltd.
Loans to associated companies are unsecured and bear interest at prevailing market rates.
Amounts owing by associated companies are unsecured, trade-related, interest-free and have no fixed terms of
repayments.