| |
In 2008, the impairment losses relates mainly to the writing down of plant and machinery by a subsidiary, Sembcorp Environment Pte Ltd. The subsidiary made an assessment of the recoverable amount of its assets and made an impairment to certain parts of its plant and machinery which are no longer in use amounting to S$7.8 million.
In 2007, property, plant and equipment of net book value amounting to S$682,000 were reclassified from investment property (Note 7).
|
|
Leasehold and freehold land, buildings and wet berthage |
Improvements to premises |
Quays and dry docks |
Plant and machinery |
Furniture, fittings and office equipment |
Motor vehicles |
Capital work-in-progress |
Total |
|
Note |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
|
|
|
|
Company |
|
|
|
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
|
|
Balance at January 1, 2008 |
|
312 |
2,019 |
— |
— |
6,134 |
324 |
— |
8,789 |
Additions |
|
— |
92 |
— |
11,455 |
1,414 |
— |
54,105 |
67,066 |
Reclassification |
|
— |
— |
— |
23,982 |
— |
— |
(23,982) |
— |
Disposals /
Write-offs |
|
(1) |
— |
— |
(2,097) |
(302) |
— |
— |
(2,400) |
Acquisition |
37 |
16,831 |
— |
8,280 |
384,415 |
1,074 |
24 |
36,632 |
447,256 |
Balance at December 31, 2008 |
|
17,142 |
2,111 |
8,280 |
417,755 |
8,320 |
348 |
66,755 |
520,711 |
|
|
|
|
|
|
|
|
|
|
Accumulated Depreciation and Impairment Losses |
|
|
|
|
|
|
|
Balance at January 1, 2008 |
|
15 |
1,534 |
— |
— |
3,748 |
70 |
— |
5,367 |
Depreciation for the year |
|
868 |
509 |
407 |
26,130 |
2,059 |
89 |
— |
30,062 |
Disposals /
Write-offs |
|
— |
— |
— |
— |
(121) |
— |
— |
(121) |
Balance at December 31, 2008 |
|
883 |
2,043 |
407 |
26,130 |
5,686 |
159 |
— |
35,308 |
|
|
|
|
|
|
|
|
|
|
Carrying Amount |
|
|
|
|
|
|
|
|
|
At December 31, 2008 |
|
16,259 |
68 |
7,873 |
391,625 |
2,634 |
189 |
66,755 |
485,403 |
|
Leasehold building |
Improvements to premises |
Furniture, fittings and office equipment |
Motor vehicles |
Capital work-in-progress |
Total |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
|
Company |
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
Balance at January 1, 2007 |
312 |
2,056 |
5,052 |
324 |
620 |
8,364 |
Additions |
— |
16 |
1,535 |
— |
— |
1,551 |
Reclassification |
— |
— |
566 |
— |
(566) |
— |
Disposals / Write-offs |
— |
(53) |
(1,019) |
— |
(54) |
(1,126) |
Balance at December 31, 2007 |
312 |
2,019 |
6,134 |
324 |
— |
8,789 |
|
|
|
|
|
|
|
Accumulated Depreciation and Impairment Losses |
|
|
|
|
|
|
Balance at January 1, 2007 |
10 |
667 |
3,330 |
5 |
— |
4,012 |
Depreciation for the year |
5 |
867 |
1,436 |
65 |
— |
2,373 |
Disposals / Write-offs |
— |
— |
(1,018) |
— |
— |
(1,018) |
Balance at December 31, 2007 |
15 |
1,534 |
3,748 |
70 |
— |
5,367 |
|
|
|
|
|
|
|
Carrying Amount |
|
|
|
|
|
|
At December 31, 2007 |
297 |
485 |
2,386 |
254 |
— |
3,422 |
Group
| i. |
Property, plant and equipment with the following net book values have been pledged to secure loan facilities granted to subsidiaries: |
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Freehold land and buildings |
25,111 |
36,106 |
Leasehold land and buildings |
11,737 |
17,735 |
Plant and machinery |
756,964 |
891,907 |
Capital work-in-progress |
121,181 |
157,001 |
Other assets |
736 |
2,123 |
|
915,729 |
1,104,872 |
| ii. |
Assets with net book value of S$1,587,000 (2007: S$1,403,000) were acquired under finance lease. |
| iii. |
Included in the cost of leasehold land and buildings, quays and dry docks and plant and machinery are amounts of S$120,866,000, S$100,900,000 and S$667,000 respectively which were stated at valuation. The revaluation was done on a one-off basis prior to January 1, 1997. |
| iv. |
During the year, interest and direct staff costs amounting to S$1,076,000 (2007: S$6,179,000) and S$1,849,000 (2007: S$3,017,000), respectively were capitalised as capital work-in-progress. |
|
|
Group |
|
|
2008 |
2007 |
|
Note |
S$’000 |
S$’000 |
Cost |
|
|
|
Balance at January 1 |
|
48,664 |
— |
Reclassification from property, plant and equipment on adoption of FRS 40 |
6 |
— |
51,596 |
Balance at January 1, restated |
|
48,664 |
51,596 |
Translation adjustments |
|
(3,939) |
(426) |
Additions |
|
— |
10 |
Reclassification to property, plant and equipment |
6 |
— |
(682) |
Disposals |
|
(317) |
(1,834) |
Balance at December 31 |
|
44,408 |
48,664 |
|
|
|
|
Accumulated Depreciation and Impairment Losses |
|
|
|
Balance at January 1 |
|
17,373 |
— |
Reclassification from property, plant and equipment on adoption of FRS 40 |
6 |
— |
16,208 |
Balance at January 1, restated |
|
17,373 |
16,208 |
Depreciation for the year |
34(b) |
1,007 |
610 |
Allowance made for impairment – net |
34(b) |
69 |
555 |
Balance at December 31 |
|
18,449 |
17,373 |
|
|
|
|
Carrying Amount |
|
|
|
At December 31 |
|
25,959 |
31,291 |
Investment properties with net book values of S$9,451,000 (2007: S$13,707,000) have been pledged to secure loan facilities granted to a subsidiary.
The fair value of the investment properties as at the balance sheet date is S$51,900,000 (2007: S$65,989,000). The fair value, determined by independent professional valuers, is based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
In the absence of current prices in an active market, the fair values are determined by considering the aggregate of the estimated cash flow expected to be received from renting out the properties. A yield that reflects the specific risks inherent in the cash flows then is applied to the net annual cash flows to obtain the fair values.
|
Company |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
At cost and carrying value: |
|
|
Quoted equity shares |
713,048 |
705,432 |
Unquoted equity shares |
503,951 |
502,951 |
Preference shares |
257,500 |
257,500 |
Share-based payments reserve – effect of adopting INT FRS 108 |
12,071 |
13,557 |
|
1,486,570 |
1,479,440 |
Details of subsidiaries are set out in Note 47 to the financial statements. |
|
|
|
|
