Singapore Airlines 2008 Annual Report Download - page 134

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Singapore Airlines Annual Report 2007-08
132
22 Subsidiary Companies (in $ million)
The Company
31 March
2008 2007
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 25.0 137.3
1,780.8 1,893.1
Funds from subsidiary companies (1,540.7) (1,771.7)
Amounts owing to subsidiary companies (188.4) (195.9)
(1,729.1) (1,967.6)
Amounts owing by subsidiary companies 227.4 215.4
Market value of quoted equity investments 5,437.5 6,481.5
## The value is $2.
The loan to subsidiary company is unsecured and has repayment terms of remaining 3.5 years. Interest on loan to
subsidiary companies is computed using SGD Swap-Offer Rates, and applying agreed margins. The loan is denominated
in SGD and interest rates ranged from 2.69% to 4.34% (2006-07: 3.08% to 3.65%) per annum. In 2006-07, the interest
rates ranged from 5.05% to 5.98% per annum for USD loans, which were fully repaid in the previous financial year.
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 0.27% to 3.34% (2006-07: 2.03% to 3.46%)
per annum for SGD funds, from 2.37% to 5.39% (2006-07: 4.58% to 5.40%) per annum for USD funds and from 6.18%
to 7.15% (2006-07: 4.98% to 6.24%) per annum for AUD funds.
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, non-interest bearing and are repayable on
demand. The amounts owing by subsidiary companies are neither overdue nor impaired.
As at 31 March 2008, the composition of funds from subsidiary companies held in foreign currencies by the Company is as
follows: USD – 6.2% (2007: 38.2%) and AUD – 0.4% (2007: 0.6%).
NOTES TO THE FINANCIAL STATEMENTS
31 March 2008