Singapore Airlines 2006 Annual Report Download - page 120

118
Singapore Airlines Annual Report 05/06
21 Associated Companies (in $ million) (continued)
During the fi nancial year:
1. The Company’s associated company, RCMS Properties Private Limited, recorded a revaluation loss of $8.5 million from its
annual revaluation exercise of its land and building. The Company’s share of the revaluation loss of $1.6 million at
31 March 2006 is included under the Group’s share of post-acquisition capital reserve (refer to Statement of Changes
in Equity – The Group for the fi nancial year ended 31 March 2006).
2. The Company injected an additional $6.1 million in Tiger Airways Pte Ltd (“Tiger Airways”). There was no change in the
Company’s 49.0% equity stake in Tiger Airways.
3. TAJ SATS Air Catering refunded $3.3 million as return of shareholders’ funds to SATS on 21 July 2005.
4. SIA Cargo, China Great Wall Industry Corporation and Dahlia Investments incorporated a company, Great Wall Airlines
Company Limited (“GWAC”). SIA Cargo injected $19.3 million for its 25% equity interest in GWAC.
5. SATS injected an additional $1.5 million to PT Jasa Angkasa Semesta TBK as part of the clause under the sales and purchase
agreement which require SATS to pay an additional amount should the net debt of PT Jasa Angkasa Semesta TBK falls below
US$6.5 million.
6. Mid-East Airport Services Pte Ltd has been placed under members’ voluntary liquidation since 2 February 2006, and is
currently undergoing liquidation.
Loans to associated companies are unsecured and have no foreseeable terms of repayments. Accordingly, the fair value of the
loan is not determinable as the timing of future cash fl ows arising from the loans cannot be estimated reliably. The loans are
interest-free, except for $3.2 million at 31 March 2006 (2005: $0.3 million), which bear interest at 3.0% per annum
(2004-05: 9.5% to 11.46%).
Amounts owing by associated companies are unsecured, trade-related, interest-free and are repayable on demand.
The associated companies at 31 March are:
Country of Percentage of
incorporation Cost equity held by
and place (in $ million) the Group
Principal activities of business 2006 2005 2006 2005
Service Quality (SQ) Centre Quality service training Singapore # # 50.0 50.0
Pte Ltd @
Virgin Atlantic Limited* ++ Air transportation United Kingdom 1,682.06 1,682.06 49.0 49.0
Tiger Airways Pte Ltd @ Air transportation Singapore 11.93 5.80 49.0 49.0
Asia Leasing Limited + Aircraft leasing Bermuda 10.88 10.88 21.0 21.0
RCMS Properties Private Hotel ownership and management Singapore 31.16 31.16 20.0 20.0
Limited +
AVISERV Ltd Inflight catering services Pakistan 3.31 3.31 40.8 41.5
TAJ SATS Air Catering Limited ** Catering services India 24.65 27.97 40.8 41.5
SERVAIR-SATS Holding Investment holding company Singapore 0.51 0.51 40.8 41.5
Company Pte Ltd +
PT Jasa Angkasa Semesta TBK+ Ground and cargo handling services Indonesia 105.53 103.98 41.4 42.1
Beijing Airport Inflight Inflight catering services People’s 13.88 13.88 33.3 33.9
Kitchen Ltd + Republic
of China
Beijing Aviation Ground Airport ground handling services - do - 5.71 5.71 33.3 33.9
Services Co Ltd
+
Maldives Inflight Catering Inflight catering services Maldives 0.29 0.29 29.1 29.6
Private Limited
Taj Madras Flight Kitchen Inflight catering services India 1.90 1.90 25.0 25.4
Limited
NOTES TO THE FINANCIAL STATEMENTS
31 March 2006