| |
|
| |
| |
|
|
Group |
Company |
|
|
2009 |
2008 |
2009 |
2008 |
|
Note |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
Accrued operating expenses |
|
699,206 |
675,400 |
91,003 |
75,366 |
Deposits |
|
14,594 |
14,204 |
— |
— |
Accrued interest payable |
|
6,759 |
5,374 |
— |
— |
Other payables |
|
55,498 |
72,348 |
10,089 |
5,263 |
Share of net liability of an associate |
9 |
— |
139,580 |
— |
— |
|
23 |
776,057 |
906,906 |
101,092 |
80,629 |
|
| |
| |
|
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 |
9,739 |
11,454 |
1,222 |
7,180 |
6,507 |
37,721 |
184 |
74,007 |
Translation adjustments |
— |
— |
— |
— |
(29) |
(239) |
— |
(268) |
Provisions made during the year, net |
5,009 |
— |
15,072 |
— |
15 |
22,687 |
— |
42,783 |
Provisions utilised during the year |
— |
— |
(945) |
— |
— |
(45) |
— |
(990) |
Disposal of subsidiaries |
— |
— |
— |
— |
— |
— |
(184) |
(184) |
Balance at end of the year |
14,748 |
11,454 |
15,349 |
7,180 |
6,493 |
60,124 |
— |
115,348 |
|
|
|
|
|
|
|
|
|
Provisions due: |
|
|
|
|
|
|
|
|
– within 1 year |
14,748 |
11,454 |
15,349 |
4,281 |
— |
60,124 |
— |
105,956 |
– after 1 year |
— |
— |
— |
2,899 |
6,493 |
— |
— |
9,392 |
|
14,748 |
11,454 |
15,349 |
7,180 |
6,493 |
60,124 |
— |
115,348 |
|
| |
|
|
Obligations relating to disposal of business |
Claims |
Restoration costs |
Total |
|
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
Company |
|
|
|
|
|
Balance at beginning of the year |
|
11,454 |
1,221 |
500 |
13,175 |
Provisions made during the year, net |
|
— |
1,148 |
— |
1,148 |
Provisions utilised during the year |
|
— |
(945) |
— |
(945) |
Balance at end of the year |
|
11,454 |
1,424 |
500 |
13,378 |
|
|
|
|
|
|
Provisions due: |
|
|
|
|
|
– within 1 year |
|
11,454 |
1,424 |
— |
12,878 |
– after 1 year |
|
— |
— |
500 |
500 |
|
|
11,454 |
1,424 |
500 |
13,378 |
|
| |
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 a business in which the Group and the Company retains certain obligations in
respect of contracts pursuant to the Sale and Purchase Agreement.
Claims
This provision relates to the obligations arising from contractual and commercial arrangements in the Group’s and
the Company’s operations, based on the best estimate of the possible outflow considering both contractual and
commercial factors. These claims are expected to be settled within the next 12 months.
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 |
|
|
2009 |
2008 |
|
Note |
S$’000 |
S$’000 |
|
|
|
|
Provision for retirement gratuities |
(a) |
1,500 |
1,932 |
Defined benefit obligations |
(b) |
11,016 |
11,620 |
|
|
12,516 |
13,552 |
|
|
|
|
Non-current |
|
12,516 |
13,552 |
|
| |
a. Provision for Retirement Gratuities
|
Group |
|
2009 |
2008 |
|
S$’000 |
S$’000 |
|
|
|
Balance at beginning of the year |
1,932 |
2,809 |
Provision utilised during the year |
(36) |
(407) |
Less: Amount due within 12 months |
(396) |
(470) |
Balance at end of the year |
1,500 |
1,932 |
|
| |
| b. |
Defined Benefit Obligations
A subsidiary provides pension arrangements to its full time employees through a defined benefit plan and the
related costs are assessed in accordance with the advice of professionally qualified actuaries. The pension scheme
is closed to new entrants and is funded by the payment of contributions to separately administrated trust funds.
The numbers shown below have been based on calculations carried out by a qualified independent actuary to take
into account of the requirements of FRS19 in order to assess the liabilities of the scheme at December 31, 2009. The
scheme’s assets are stated at their market values at December 31, 2009.
The present values of the funded defined benefit obligations, the related current service cost and, where applicable,
past service cost were measured using the projected unit credit method. Details of the scheme are as follows: |
|
| |
|
Group |
|
2009 |
2008 |
|
S$’000 |
S$’000 |
|
|
|
Present value of funded defined benefit obligations |
209,474 |
151,053 |
Fair value of plan assets |
(187,686) |
(158,761) |
Deficit / (surplus) in scheme |
21,788 |
(7,708) |
Unrecognised actuarial (losses) / gains |
(10,772) |
19,328 |
Net liability recognised in the balance sheet |
11,016 |
11,620 |
|
| |
The proportion of fair value of plan assets at the balance sheet is analysed as follows:
|
Group |
|
2009 |
2008 |
|
% |
% |
|
|
|
Equity instruments |
38.03 |
40.08 |
Debt instruments |
53.56 |
53.45 |
Other assets |
8.41 |
6.47 |
|
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 |
|
2009 |
2008 |
|
S$’000 |
S$’000 |
|
|
|
Opening defined benefit obligations |
151,053 |
244,774 |
Translation adjustment |
13,175 |
(65,871) |
Current service cost |
2,483 |
3,302 |
Interest cost |
9,985 |
12,465 |
Actuarial losses / (gains) |
44,268 |
(36,223) |
Benefits paid |
(11,695) |
(7,630) |
Employee contributions |
205 |
236 |
|
209,474 |
151,053 |
|
| |
|
Changes in the fair value of plan assets are as follows: |
| |
|
Group |
|
2009 |
2008 |
|
S$’000 |
S$’000 |
|
|
|
Opening fair value of plan assets |
158,761 |
253,504 |
Translation adjustment |
14,345 |
(69,135) |
Expected return on plan assets |
9,617 |
14,268 |
Actuarial gains / (losses) |
12,656 |
(38,322) |
Contributions by employer |
3,797 |
5,840 |
Benefits paid |
(11,695) |
(7,630) |
Employee contributions |
205 |
236 |
|
187,686 |
158,761 |
|
| |
Expenses recognised in the income statement are as follows:
|
Group |
|
2009 |
2008 |
|
S$’000 |
S$’000 |
|
|
|
Current service cost |
2,483 |
3,302 |
Interest cost |
9,985 |
12,465 |
Expected return on plan assets |
(9,617) |
(14,268) |
Net actuarial gains recognised in year |
(418) |
(320) |
|
2,433 |
1,179 |
|
| |
The expense is recognised in the following line items in the income statement:
|
Group |
|
2009 |
2008 |
|
S$’000 |
S$’000 |
|
|
|
Cost of sales |
1,987 |
2,642 |
Administrative expenses |
496 |
660 |
Other expenses |
(50) |
(2,123) |
|
2,433 |
1,179 |
|
|
|
Actual return / (loss) in value of plan assets |
22,273 |
(24,054) |
|
| |
Principal actuarial assumptions
The main financial assumptions used by the independent qualified actuaries to calculate the liabilities under FRS 19 were as follows:
|
Group |
|
2009 |
2008 |
|
% |
% |
|
|
|
Discount rate at December 31 |
5.7 |
6.2 |
Expected return on plan assets at December 31 |
6.1 |
5.6 |
Future rate of annual salary increases |
5.1 |
4.3 |
Future rate of pension increases |
2.8 |
2.4 |
|
| |
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 (2008: 9 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 (2008: 21) for male and 23 (2008: 23) for female.
The overall expected long-term rate of return on assets is 6.1% (2008: 5.6%). The expected rate of return on plan
assets is a weighted average of the individual expected rate of return on each asset class.
The history of existing plans as of December 31 is as follows: |
| |
|
2009 |
2008 |
2007 |
2006 |
2005 |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
Group |
|
|
|
|
|
Present value of funded defined benefit obligations |
209,474 |
151,053 |
244,774 |
259,498 |
259,598 |
Fair value of plan assets |
(187,686) |
(158,761) |
(253,504) |
(239,537) |
(201,898) |
Deficit / (surplus) in scheme |
21,788 |
(7,708) |
(8,730) |
19,961 |
57,700 |
|
| |
| The Group expects to pay S$3.1 million in contributions to defined benefit plans in 2010. |
|
| |
|
| |
|
|
|
|
|
