View - Singapore Technologies Engineering

GROUPCOMPANY2000 1999 2000 1999NOTE $’000 $’000 $’000 $’000AFTER CHARGING (cont’d)Fees paid to a firm in which a director is a member 1,888 46 90 20Depreciation of fixed assets 8 76,143 58,787 72 321Provision for:Stocks obsolescence 13 703 3,951 – –Foreseeable losses 13 12,366 7,961 – –Doubtful debtsTrade 18 – 5,447 – –Non-trade 19 – 84 – –Associated companies and joint ventures 10,21 689 1,566 – –Loan receivables 12 1,647 4,371 – –Warranties 23 40,912 47,374 – –Liquidated damages 23 12,658 – – –Engineering and development 23 – 2,290 – –Diminution in value of investments made forresearch and development purposes 11 1,945 – – –Fixed assets written off 25 11 – –Stocks written off 2,297 994 – –Bad debts written offTrade 2,598 35 – –Non-trade 38 – – –Research and development costs 38,028 23,676 – –Design and development expenditure written off 16,564 16,544 – –Operating lease expenses 16,464 5,398 292 176AND CREDITINGWrite-back of provision for:Unestablished claims 18 22 22 – –Doubtful debtsTrade 18 2,612 – – –Non-trade 19 428 – – –Liquidated damages 23 – 680 – –Contingencies 23 41,146 219 – –Engineering and development 23 6,587 – – –Wharf and syncrolift upkeep 23 6,000 – – –Grants and subsidies received 5,029 5,713 – –Amortisation of deferred income 27 922 235 – –Bad debts recovered 38 – – –33. PERSONNEL EXPENSES34. OTHER INCOME (EXPENSES)35. FINANCIAL EXPENSESGROUPCOMPANY2000 1999 2000 1999$’000 $’000 $’000 $’000Wages and salaries 548,640 345,158 6,657 7,064Pension contributions 50,225 23,118 349 281Termination benefits – 55 – –Other social expenses 57,723 33,658 813 461656,588 401,989 7,819 7,806GROUPCOMPANY2000 1999 2000 1999$’000 $’000 $’000 $’000Profit on disposal of fixed assets 379 150 – –Exchange gain (loss), net 222 336 50 (6)Grants and subsidies received 666 55 – –Rental income 2,354 4,221 – –Others 8,323 1,122 190 10411,944 5,884 240 98GROUPCOMPANY2000 1999 2000 1999NOTE $’000 $’000 $’000 $’000Interest expense:Bank loans and overdrafts 3,385 3,692 – –Floating rate bonds and notes 301 269 – –Amortisation of discount on floating rate bonds 29 297 297 – –3,983 4,258 – –36. EXCEPTIONAL ITEMDuring the financial year, a subsidiary reduced its issuedand paid-up capital from $150,746,501 to$100,000,000 by cancelling 101,493,001 of the issuedand fully paid ordinary shares of $0.50 each in the capitalof the Company and the cancellation of the amountof $98,595,254 standing to the credit of the sharepremium account.The capital reduction has been confirmedby the High Court under a Court Order dated25 September 2000.The exceptional item relates to thedistribution of $103,612,251 arising from the abovementionedcapital reduction.166 • visionnotes to the financial statements • 167