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SIA Annual Report 04/05 91
Notes to the Financial Statements
31 March 2005
CC
฀MOD: CN1323
M Y
C K
While every effort has been taken to carry out instruction to customers satisfaction
NO RESPONSIBILITY liablilty will be accepted for errors
CUSTOMERS ARE THEREFOREURGED TO CHECK THOROUGHLY BEFORE
AUTHORISING PRINTRUNS
DALIM
1 2 3 4 5 6 7 8 9 10 OK TS
CC196777 DLMAC13 10.06.2005 150#
1
3col
18 Goodwill on Consolidation (in $ million)
The Group
31 March
2005 2004
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Cost
Balance at 1 April and 31 March 1.5 1.5
–––––––––––––––––––––––––––––––––
Accumulated amortisation
Balance at 1 April 0.1 *
Amortisation charge for the year 0.1 0.1
–––––––––––––––––––––––––––––––––
Balance at 31 March 0.2 0.1
–––––––––––––––––––––––––––––––––
Net carrying amount 1.3 1.4
–––––––––––––––––––––––––––––––––
* 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 capitalised and amortised over a period of 20 years.
19 Subsidiary Companies (in $ million)
The Company
31 March
2005 2004
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Investment in subsidiary companies (at cost)
Quoted equity investments ## ##
Unquoted equity investments 1,772.4 1,772.4
–––––––––––––––––––––––––––––––––
1,772.4 1,772.4
Impairment loss (16.6) (16.6)
–––––––––––––––––––––––––––––––––
1,755.8 1,755.8
Loans to subsidiary companies 180.0 180.7
–––––––––––––––––––––––––––––––––
1,935.8 1,936.5
–––––––––––––––––––––––––––––––––
Funds from subsidiary companies (758.8) (698.9)
Amounts owing by subsidiary companies 244.3 219.8
Amounts owing to subsidiary companies (207.8) (207.7)
–––––––––––––––––––––––––––––––––
Amounts owing to subsidiary companies, net (722.3) (686.8)
–––––––––––––––––––––––––––––––––
Market value of quoted equity investments 3,854.1 3,279.9
–––––––––––––––––––––––––––––––––
## The value is $2.
In 2003-04, the Company provided $6.8 million impairment loss against the cost of investment in one of its wholly
owned subsidiary company, SIA Properties (Pte) Ltd (“SIAP”). Its business undertaking (which primarily provided intra-
Group services) was transferred to the Company on 1 April 2004. The financial impact of the transfer was not material.
In 2003-04, 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).
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 0.81% to 3.37% (2003-04: 0.71% to 1.99%) per
annum for SGD loans, and 1.56% to 3.19% (2003-04: 1.47% to 1.76%) per annum for USD loans.
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 0.38% to 2.01% (2003-04: 0.25% to
0.90%) per annum for Singapore Dollar funds, from 0.97% to 2.89% (2003-04: 0.93% to 1.40%) per annum for US
Dollar funds, from 2.10% to 2.11% (2003-04: nil) per annum for Euro Dollar funds and from 4.70% to 4.90% (2003-
04: nil) for UK Sterling Pound funds.