Singapore Airlines 2007 Annual Report Download - page 121

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NOTES TO THE FINANCIAL STATEMENTS
31 March 2007
Singapore Airlines 119 Annual Report 2006-07
20 Subsidiary Companies (in $ million)
The Company
31 March
2007 2006
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Investment in subsidiary companies (at cost)
Quoted equity investments ## ##
Unquoted equity investments 1,772.4 1,772.4
––––––––––––––––––––––––––––––––––––
1,772.4 1,772.4
Accumulated impairment loss (16.6) (16.6)
––––––––––––––––––––––––––––––––––––
1,755.8 1,755.8
Loans to subsidiary companies 137.3 182.6
––––––––––––––––––––––––––––––––––––
1,893.1 1,938.4
––––––––––––––––––––––––––––––––––––
Funds from subsidiary companies (1,771.7) (1,220.9)
Amounts owing to subsidiary companies (195.9) (221.1)
––––––––––––––––––––––––––––––––––––
(1,967.6) (1,442.0)
––––––––––––––––––––––––––––––––––––
Amounts owing by subsidiary companies 215.4 230.9
––––––––––––––––––––––––––––––––––––
Market value of quoted equity investments 6,481.5 4,750.2
––––––––––––––––––––––––––––––––––––
## The value is $2.
During the fi nancial year, Cargo Community Network injected additional funds of $0.2 million into its wholly-owned
subsidiary, Cargo Community (Shanghai) Co 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 3.08% to 3.65% (2005-06: 0.81% to 4.84%) per
annum for SGD loans, and 5.05% to 5.98% (2005-06: 1.56% to 5.05%) 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 2.03% to 3.46% (2005-06: 1.06% to 3.31%)
per annum for Singapore Dollar funds, from 4.58% to 5.40% (2005-06: 2.63% to 4.72%) per annum for US Dollar funds
and from 4.98% to 6.24% (2005-06: 5.41% to 5.51%) per annum for Australian Dollar funds. During the year, there
were no Euro funds and UK Sterling Pound funds. These funds bore interest at 1.98% per annum and 4.61% per annum
respectively in the previous fi nancial year.
Net carrying amounts of loans to and funds from subsidiary companies approximate the fair values as interest rates
implicit in the loans and funds approximate market interest rates.
Amounts owing to/by subsidiary companies are unsecured, trade-related, interest-free and are repayable on demand.
As at 31 March 2007, the composition of loans to subsidiary companies held in foreign currencies by the Company is as
follows: USD – Nil% (2006: 23.0%). The composition of funds from subsidiary companies held in foreign currencies by
the Company is as follows: USD – 38.2% (2006: 19.8%) and AUD – 0.6% (2006: 0.6%).