|
|
Group |
Company |
|
|
2008 |
2007 |
2008 |
2007 |
|
Note |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
Accrued operating expenses |
|
675,400 |
729,196 |
75,366 |
29,794 |
Deposits |
|
14,204 |
13,554 |
— |
— |
Accrued interest payable |
|
5,374 |
7,401 |
— |
441 |
Other payables |
|
72,348 |
114,677 |
5,263 |
3,721 |
Share of net liability of an associate |
9 |
139,580 |
— |
— |
— |
|
23 |
906,906 |
864,828 |
80,629 |
33,956 |
|
Loan undertakings |
Obligations relating to disposal of business |
Claims |
Onerous contracts |
Restoration costs |
Warranty |
Others |
Total |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
|
|
|
Group |
|
|
|
|
|
|
|
|
Balance at beginning of the year |
9,167 |
11,454 |
4,238 |
8,680 |
5,309 |
2,800 |
184 |
41,832 |
Translation adjustments |
— |
— |
— |
— |
(2) |
132 |
— |
130 |
Provisions made / (written back) during the year, net |
2,217 |
— |
(3,016) |
— |
1,200 |
29,136 |
— |
29,537 |
Provisions utilised during the year |
(1,645) |
— |
— |
(1,500) |
— |
(7,350) |
— |
(10,495) |
Reclassification |
— |
— |
— |
— |
— |
13,003 |
— |
13,003 |
Balance at end of the year |
9,739 |
11,454 |
1,222 |
7,180 |
6,507 |
37,721 |
184 |
74,007 |
|
|
|
|
|
|
|
|
|
Provisions due: |
|
|
|
|
|
|
|
|
– within 1 year |
9,739 |
11,454 |
1,222 |
3,433 |
— |
37,721 |
184 |
63,753 |
– after 1 year |
— |
— |
— |
3,747 |
6,507 |
— |
— |
10,254 |
|
9,739 |
11,454 |
1,222 |
7,180 |
6,507 |
37,721 |
184 |
74,007 |
|
|
Obligations relating to disposal of business |
Claims |
Restoration costs |
Total |
|
Note |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
Company |
|
|
|
|
|
Balance at beginning of the year |
|
11,454 |
— |
500 |
11,954 |
Acquisition |
37 |
— |
3,780 |
— |
3,780 |
Provisions written back during the year, net |
|
— |
(2,559) |
— |
(2,559) |
Balance at end of the year |
|
11,454 |
1,221 |
500 |
13,175 |
|
|
|
|
|
|
Provisions due: |
|
|
|
|
|
– within 1 year |
|
11,454 |
1,221 |
— |
12,675 |
– after 1 year |
|
— |
— |
500 |
500 |
|
|
11,454 |
1,221 |
500 |
13,175 |
Loan Undertakings
This relates to the Group’s share of loan undertakings of associates and subsidiaries.
Obligations Relating to Disposal of Business
This mainly relates to the disposal of business in which the Group and the Company retains certain obligations in respect of contracts pursuant to the Sale and Purchase Agreement.
Onerous Contracts
The provision for onerous contracts relates to the Group’s exposure to the unavoidable cost of meeting its obligations under the contracts, which exceeds the expected benefits to be derived by the Group. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognises any impairment loss on the assets associated with the contracts.
Restoration Costs
Restoration costs relating to cost of dismantling and removing assets and restoring the premises to its original condition as stipulated in the operating lease agreements. The subsidiaries expect to incur the liability upon termination of the lease.
Warranty
The provision for warranty is based on estimates made from historical warranty data associated with similar projects.
|
|
Group |
|
|
2008 |
2007 |
|
Note |
S$’000 |
S$’000 |
|
|
|
|
Provision for retirement gratuities |
(a) |
1,932 |
2,809 |
Defined benefit obligations |
(b) |
11,620 |
21,300 |
|
|
13,552 |
24,109 |
|
|
|
|
Non-current |
|
13,552 |
24,109 |
a. Provision for Retirement Gratuities
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Balance at beginning of the year |
2,809 |
3,303 |
Provision utilised during the year |
(407) |
(494) |
Less: Amount due within 12 months |
(470) |
— |
Balance at end of the year |
1,932 |
2,809 |
b. Defined Benefit Obligations
The defined benefit plan and the related costs are assessed in accordance with the advice of professionally qualified actuaries. The pension scheme is funded by the payment of contributions to separately administered trust funds.
Details of the plans are as follows:
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Present value of funded obligations |
151,053 |
244,774 |
Fair value of plan assets |
(158,761) |
(253,504) |
Surplus in the plan |
(7,708) |
(8,730) |
Actuarial gains not recognised in accordance with FRS 19 |
19,328 |
30,030 |
Net liability recognised in the balance sheet |
11,620 |
21,300 |
The proportion of fair value of plan assets at the balance sheet is analysed as follows:
|
Group |
|
2008 |
2007 |
|
% |
% |
|
|
|
Equity instruments |
40.08 |
52.79 |
Debt instruments |
53.45 |
39.83 |
Other assets |
6.47 |
7.38 |
|
100.00 |
100.00 |
The plan assets do not include any of the Group’s own financial instruments, nor any property occupied by, or other assets used by the Group.
Changes in the present value of defined benefit obligations are as follows:
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Opening defined benefit obligations |
244,774 |
259,498 |
Translation adjustments |
(65,871) |
(7,458) |
Current service costs |
3,302 |
4,338 |
Interest cost |
12,465 |
13,247 |
Actuarial gains |
(36,223) |
(22,115) |
Benefits paid |
(7,630) |
(2,946) |
Employee contributions |
236 |
210 |
|
151,053 |
244,774 |
Changes in the present value of plan assets are as follows:
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Opening fair value of plan assets |
253,504 |
239,537 |
Translation adjustments |
(69,135) |
(7,603) |
Expected return on plan assets |
14,268 |
16,473 |
Actuarial (losses) / gains |
(38,322) |
676 |
Contributions by employer |
5,840 |
7,157 |
Benefits paid |
(7,630) |
(2,946) |
Employee contributions |
236 |
210 |
|
158,761 |
253,504 |
Expenses recognised in the income statement are as follows:
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Current service costs |
3,302 |
4,338 |
Interest costs |
12,465 |
13,247 |
Expected return on plan assets |
(14,268) |
(16,473) |
Actuarial losses |
(320) |
— |
|
1,179 |
1,112 |
The expense is recognised in the following line items in the income statement:
|
Group |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Cost of sales |
2,642 |
3,469 |
Administrative expenses |
660 |
869 |
Other expenses |
(2,123) |
(3,226) |
|
1,179 |
1,112 |
|
|
|
Actual (loss) / return in value of plan assets |
(24,054) |
17,149 |
Principal actuarial assumptions
Principal actuarial assumptions at the balance sheet date are as follows:
|
Group |
|
2008 |
2007 |
|
% |
% |
|
|
|
Discount rate at December 31 |
6.2 |
5.8 |
Expected return on plan assets at December 31 |
5.6 |
6.4 |
Future rate of annual salary increases |
4.3 |
4.7 |
Future rate of pension increases |
2.0 |
3.2 |
Past service cost and net actuarial results are amortised over the estimated service life of the employees under plan benefits. The estimated service life for pension plans is 9 years (2007: 13 years).
Assumptions regarding future mortality are based on published statistics and mortality tables. The expected life expectancy of an individual retiring at age 65 is 21 (2007: 21) for male and 23 (2007: 23) for female.
The history of existing plans as of December 31 is as follows:
|
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
Group |
|
|
|
|
|
|
Present value of funded obligations |
151,053 |
244,774 |
259,498 |
259,598 |
224,690 |
180,838 |
Fair value of plan assets |
(158,761) |
(253,504) |
(239,537) |
(201,898) |
(166,914) |
(136,778) |
(Surplus) / Deficit in the plan |
(7,708) |
(8,730) |
19,961 |
57,700 |
57,776 |
44,060 |
The Group expects to pay S$4,700,000 in contributions to defined benefit plans in 2009. |
|
|
|
|
