View - Singapore Technologies Engineering

PROVISION FOR DIMINUTION IN VALUE OFUNQUOTED INVESTMENTSMovements in provision for diminution in value ofunquoted investments during the year are as follows:THE COMPANYThe investments of the Company consist of Floating RateNotes, at cost.The Floating Rate Notes of the Group and Company areGROUP2000 1999$’000 $’000At beginning of the year 27,141 19,329Charge to profit and loss account 7,923 7,812Provision utilised (3,696) –Reclassified to quoted investments (6,730) –Reclassified to associated companies (Note 10) (4,252) –Acquisition of subsidiary 3,949 –Share of post-acquisition losses and reserves and goodwill of an associatedcompany reclassified as provision for diminution in value of long-terminvestment (Note 10) 1,917 –At end of the year 26,252 27,14112. LOAN RECEIVABLESissued by a related corporation, ST Treasury ServicesLimited, and guaranteed by the immediate holding company,Singapore Technologies Pte Ltd. Interest on theFloating Rate Notes is at an annual rate ranging from2.69% to 3.14% (1999: 1.64% to 4.68%) per annum.GROUPCOMPANY2000 1999 2000 1999$’000 $’000 $’000 $’000Housing and car loans and advances to staff 5,321 7,005 29 102Loans to:Related corporations 7,030 7,030 – –Third parties 25,862 23,766 – –Provision for doubtful loans:Related corporations (7,030) (7,030) – –Third parties (19,330) (17,683) – –6,532 6,083 – –Minority shareholders – 976 – –Hire purchase receivables 3,105 5,605 – –14,958 19,669 29 102Receivable:Within 1 year 6,275 3,969 15 29After 1 year 8,683 15,700 14 7314,958 19,669 29 102Movements in provision for loans to related corporationsduring the year are as follows:Movements in provision for loans to third parties are asfollows:GROUPCOMPANY2000 1999 2000 1999$’000 $’000 $’000 $’000At beginning of the year 7,030 – – –Charge to profit and loss account – 7,030 – –At end of the year 7,030 7,030 – –GROUPCOMPANY2000 1999 2000 1999$’000 $’000 $’000 $’000At beginning of the year 17,683 5,000 – –Charge to profit and loss account 1,647 12,683 – –At end of the year 19,330 17,683 – –(a) Loans to related corporations are unsecured, interestfreeand not repayable within the next 12 months.(b) Included in the loans to third parties is an amount of$5,475,000 (1999: $6,282,000) which is secured by thethird party’s investment in a unit trust and the loan isrepayable over a period of 12 years commencing from1998. Interest is chargeable at 15% per annum calculatedon the reducing balance basis.(c) Included in the loans to third parties is an amount of$8,312,000 (1999: $8,312,000) which is secured byintellectual property rights of the third party. Interest ischargeable at the United States Dollar prime rate plus2% per annum.(d) Hire purchase receivables comprise:GROUPGROSS UNEARNED NETINVESTMENT INTEREST INVESTMENTRECEIVABLE INCOME RECEIVABLE$’000 $’000 $’0002000Within 1 year 1,102 144 958Within 2 to 5 years 2,239 92 2,1473,341 236 3,1051999Within 1 year 1,641 92 1,549Within 2 to 5 years 4,484 429 4,055After 5 years 1 – 16,126 521 5,605152 • visionnotes to the financial statements • 153