STEAMING AHEAD

A nnua l R e po r t 2 0 1 0 / 2 0 1 1
CONTENTS

02 Chairmans Message
04 Board of Directors
06 Corporate Information
07 Shareholder Calendar
08 Financial Highlights
12 Fleet Composition
13 Corporate Governance Statement
26 Financial Statements
89 Shareholding Statistics
91 Notice of Annual General Meeting and Books Closure
Proxy Form
Steering
with
Steadfastness
CHAIRMANS MESSAGE

I am pleased to report that Singapore Shipping

Corporation Limited (SSC) achieved a
creditable net profit of US$5.6 million, reflecting a
hefty 76.9% increase over the last financial year.
Group revenue rose sharply by 96.6% to US$15.7
million. Our significantly improved earnings are
due largely to the income contributed by two
Pure Car Truck Carriers bought during the year
under review.

Our revenue is mainly derived from the ship-

owning subsidiaries, which use US$ as the
functional currency, hence, we have aligned
the Groups presentation currency to be in
US$ from April 2010. This will also facilitate the
comparing of our performance with other listed
shipping companies that also use US$ as the
presentation currency.

After our timely disposal of 10 ships, 5 years

ago, mostly at peak prices before the fall-out of
global shipping asset prices, we had promised
our shareholders that we would focus on building
up a specialised fleet of RoRo carriers of Pure
Car and Pure Truck vessels. In keeping faith
with this undertaking, we bought MV Boheme in
April 2010 and MV Sirius Leader in March 2011
for a total of US$66 million to successfully begin
building up a dedicated fleet.

Moreover, we have also found long-term charters

for these two vessels from major blue chip
charterers, Wallenius Lines of Sweden and NYK
Lines of Japan. As tonnage suppliers to these
major shipping lines, it means we have quality
income stream locked in for 15 years. Such deals
are not easy to secure and are a testament to
SSCs good reputation and ability to perform.
The annual charter hire of these two vessels
combined is some US$15 million.

02 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi ted
MV Boheme, built in 1999, is one of the largest
car carriers in the world. It has a cargo carriage
capacity of 7,200 cars. MV Sirius Leader, built in
2000, has a capacity for 5,190 cars.
The Board is proposing a final one-tier tax
exempt dividend of 1.0 Singapore cent per
ordinary share with the total payout of about
S$4.4 million.
PROSPECTS
Our principal ship-owning business is stable
and expected to remain profitable, barring
unforeseen circumstances. In addition to
contributions from MV Boheme and MV Sirius
Leader, another wholly owned vessel, MV Singa
Ace, is also on a long-term charter generating
steady income flow. We also have a 30%
interest in MV Cougar Ace that is on a five-year
charter until January 2014.
The long-term charters of our ships protect
the Group from any vagary in global shipping
and we will continue to steer a steady course
through prudent financial management and
judicious acquisitions. To further strengthen
our fleet of car-carriers in line with our strategy
to re-fresh and purchase suitable tonnages, we
will look out for opportune acquisitions backed
by top quality charterers and attractive returns.
APPRECIATION
I would like to express my appreciation to our
Board of Directors for their wise counsel and
take this opportunity to welcome Lt-Gen (Retd)
Ng Jui Ping who was appointed Independent
Director in July 2010 and Mr Ow Yew Heng who
joined as Executive Director in August 2010.
Lt-Gen (Retd) Ng has a distinguished career
in the military where he was Chief of Defence
Force and in the business world where he
took a company that he co-founded to
listing on SGX-ST Main-board. He also held
many positions in statutory boards as well
as government-linked and major private
companies including Deputy Chairman of
Central Provident Fund Board, Singapore.
Currently, Lt-Gen (Retd) Ng heads his own
business consultancy, August Asia Consulting
Pte Ltd. He holds a Master of Arts (History)
degree from Duke University, USA.
Mr Ow Yew Heng is concurrently the Executive
Director of Stamford Land Corporation
Ltd as well as Non-Executive Director of
Cougar Logistics Corporation Ltd. He holds
a Bachelor of Business degree from the
University of Technology, Sydney, majoring in
Accounting & Management.
As always, I am grateful to our loyal
management and staff for contributing their
best efforts to uphold the reputable track
record that we have established for over three
decades. Thanks also to our customers for
their invaluable support. Last but not least, we
are motivated by the trust of our shareholders
and will work towards attaining more good
years ahead.
OW CHIO KIAT
EXECUTIVE CHAIRMAN
Annual Repo r t 2010/2011 03
BOARD OF DIRECTORS

MR OW CHIO KIAT EXECUTIVE CHAIRMAN

Mr Ow is the Executive Chairman of Singapore Shipping Corporation Limited
(SSC). He is also the Executive Chairman of two other Singapore listed
companies, Stamford Land Corporation Ltd (SLC) and Cougar Logistics
Corporation Ltd. (CLC). Mr Ow, who holds directorships in most of SSCs and
SLCs subsidiaries, is also an independent director of k1 Ventures Limited.

The Singapore Business Awards (jointly organised by The Business Times and
DHL) named Mr Ow Businessman of the Year in 2009. Mr Ow is a Fellow of the
Institute of Chartered Shipbrokers and is Singapores non-resident Ambassador
to Argentina.

MR OW CHEO GUAN EXECUTIVE DEPUTY CHAIRMAN

Mr Ow is Executive Deputy Chairman of SSC. He is also the Executive
Deputy Chairman of SLC and CLC, and holds directorships in most of SSCs
and SLCs subsidiaries.

Mr Ow is a Fellow of the Institute of Chartered Shipbrokers and is the

Honorary Consul of the Slovak Republic in Singapore.

MR OW YEW HENG EXECUTIVE DIRECTOR

Mr Ow, who was appointed as Executive Director of SSC on 10 August 2010,
is involved in the overall management of the Groups businesses, including
the areas of strategy development, operations, marketing communications,
finance and human resources. Mr Ow is also involved in the evaluation of new
business opportunities for the Group, including feasibility studies on potential
developments, investments and transactions.

Mr Ow, the son of the Executive Chairman, is also an Executive Director of SLC
and a Non-Executive Director of CLC.

Prior to joining SSC, Mr Ow Yew Heng held the position of Analyst, Private Wealth
Management with Deutsche Bank AG, Singapore. Mr Ow holds a Bachelor of
Business degree from the University of Technology, Sydney, where he majored
in Accounting & Management.

04 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi ted
MR TAN GUONG CHING INDEPENDENT DIRECTOR
Mr Tan holds a Bachelor and a Master of Engineering (Chemical) from McMaster
University, Canada.

He was the CEO of the Housing and Development Board, the Principal Private
Secretary to the Prime Minister and the Permanent Secretary of the Ministry of
Home Affairs, Ministry of the Environment and Ministry of Communications and
Information.

Currently, he is chairman of Singapore Technologies Telemedia Pte Ltd,

Singapore Technologies Aerospace Ltd, STT Communications Ltd, Starhub Ltd,
Temasek Life Sciences Laboratory Limited, Asia Mobile Holding Company Pte
Ltd and IP Academy. He is also a director of Singapore Pools (Private) Limited,
Frasers Centrepoint Asset Management (Commercial) Ltd, Cambridge Industrial
Trust Management Limited and Eircom Limited.

MR BENGT CHRISTER OLSSON INDEPENDENT DIRECTOR

Mr Olsson holds a Bachelor of Laws from the Stockholm University and has
a long career within the international shipping sector.

Mr Olsson held a number of top management positions over the years at the
Swedish American Line, Brostrms Shipping Co AB and Atlantic Container
Lines Services. For almost 15 years, Mr Olsson was President of Wallenius
Lines AB and still holds a position as Vice Chairman at the Swedish shipping
company. Mr Olsson is also chairman of Stolt Nielsen Ltd. and a director
of Atlantic Container Line, Rederi AB Transatlantic, Wallenius Wilhelmsen
Logistics and EUKOR Car Carrier Inc.

LT-GEN (RETD) NG JUI PING INDEPENDENT DIRECTOR

Lt-Gen (Retd) Ng, who was appointed to the Board on 29 July 2010, had a
distinguished 30-year military career culminating in the position of Chief of
Defence Force, Singapore from 1992 to 1995 and before that, Chief of Army,
Singapore from 1990 to 1992. He was conferred numerous awards in his military
career for distinguished service to Singapore, including the Meritorious Service
Medal (Military) in 1995. He has also been conferred prestigious awards by
many countries for his contributions. After his retirement from the Armed Forces,
Lt-Gen (Retd) Ng took up the entrepreneurial route and listed the company he
co-founded on the SGX-ST Mainboard in January 2000. He now heads his
own consulting business, and sits on selected boards of listed and unlisted
companies. Currently, he also sits on the board of Yanlord Land Group Limited
and Pacific Andes Resources Development Limited.

Lt-Gen (Retd) Ng holds a Master of Arts degree in History from Duke University,
USA. He also completed the Advanced Management Programme at Harvard
Business School, Harvard University, USA.

Annual Repo r t 2010/2011 05

CORPORATE INFORMATION

BOARD OF DIRECTORS REGISTERED OFFICE

Ow Chio Kiat (Executive Chairman) 200 Cantonment Road
Ow Cheo Guan (Executive Deputy Chairman) #09-01 Southpoint
Ow Yew Heng Singapore 089763
Tan Guong Ching
Bengt Christer Olsson
Ng Jui Ping SHARE REGISTRAR
M & C Services Private Limited
138 Robinson Road
EXECUTIVE COMMITTEE #17-00 The Corporate Office
Ow Chio Kiat (Chairman) Singapore 068906
Ow Cheo Guan
Bengt Christer Olsson
AUDITORS
KPMG LLP
AUDIT COMMITTEE Public Accountants and
Tan Guong Ching (Chairman) Certied Public Accountants
Bengt Christer Olsson 16 Raffles Quay
Ng Jui Ping #22-00 Hong Leong Building
Singapore 048581
Partner-in-charge: Chiu Sok Hua
REMUNERATION COMMITTEE Date of Appointment: 15 October 2010
Bengt Christer Olsson (Chairman)
Tan Guong Ching
Ng Jui Ping PRINCIPAL BANKERS
Oversea-Chinese Banking Corporation Limited
65 Chulia Street
NOMINATING COMMITTEE OCBC Centre
Ng Jui Ping (Chairman) Singapore 049513
Ow Chio Kiat
Tan Guong Ching Standard Chartered Bank
6 Battery Road
Singapore 049909
JOINT COMPANY SECRETARIES
United Overseas Bank Limited
Chew Heng Siang Christina 80 Raffles Place
Hon Wei Seng UOB Plaza 1
Singapore 048624

06 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi ted
SHAREHOLDER CALENDAR

July 2011 Annual General Meeting for financial year ended 31 March 2011 (FY 2011)
Announcement of financial year ending 31 March 2012 (FY 2012) first quarter results
August 2011 Scheduled payment of final dividend for FY 2011
November 2011 Announcement of FY 2012 second quarter results
February 2012 Announcement of FY 2012 third quarter results
May 2012 Announcement of FY 2012 full year results

Annual Repo r t 2010/2011 07

FINANCIAL HIGHLIGHTS

RESULTS OF OPERATIONS
For the financial year ended 31 March

2011 2010 2009

Revenue (US$'000) 15,669 7,972 8,142

Profit / (Loss) attributable to owners

of the Company (US$'000) 5,601 3,166 (3,223)

Earnings / (Loss) per share (US cents) 1.3 0.7 (0.7)

Dividend per share

- Proposed final one-tier tax exempt dividend

(Singapore cent) 1.0 1.0 1.0

08 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi ted
FINANCIAL POSITION
As at 31 March
2011 2010 2009
US$'000 US$'000 US$'000

Current assets 13,735 40,425 35,578

Financial and other assets 242 220 228
Associated company 3,016 2,851 2,267
Investment properties 113 194
Property, plant and equipment 69,488 6,216 11,868
Total assets 86,481 49,825 50,135

Trade and other liabilities 2,149 1,103 1,274

Bank borrowing 32,656
Total liabilities 34,805 1,103 1,274

Net assets 51,676 48,722 48,861

Equity attributable to owners

of the Company 51,676 48,722 48,861

Net asset value per share (US$) 0.12 0.11 0.11

Annual Repo r t 2010/2011 09

FINANCIAL HIGHLIGHTS

REVENUE PROFIT / (LOSS) ATTRIBUTABLE

TO OWNERS OF THE COMPANY
(US$000) (US$000)

15,669
20,000 20,000

15,000 15,000
8,142

7,972

5,601
10,000 10,000

3,166
5,000 5,000

0 0
(3,223)

(5,000) (5,000)

2009 2010 2011

EARNINGS / (LOSS) RETURN

PER SHARE ON EQUITY
(US Cents) (%)
10.8

1.5 12.0
1.3
6.5

1.0 8.0
0.7

0.5 4.0

0 0.0

(0.5) (4.0)
(0.7)
(6.6)

(1.0) (8.0)

2009 2010 2011

10 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi ted
SHAREHOLDERS EQUITY NET ASSET VALUE PER SHARE

(US$000) (US$)

51,676
52,000 0.13

51,000

0.12
0.12
50,000
48,861

48,722
0.11

0.11
49,000
0.11

48,000

47,000 0.10

2009 2010 2011

NET DEBT GEARING RATIO

(US$000)

25,000 0.50
19,979
0.39

20,000 0.40

15,000 0.30

10,000 0.20

5,000 0.10

0 0

2009 2010 2011

Annual Repo r t 2010/2011 11

FLEET COMPOSITION

Vessel BOHEME SIRIUS LEADER SINGA ACE COUGAR ACE

% Owned 100 100 100 30
Type Pure car Pure car Pure car Pure car
truck carrier truck carrier carrier carrier
Capacity 7,200 cars 5,190 cars 4,889 cars 5,540 cars
Year Built 1999 2000 1984 1993
Charter
Commences 2010 2011 1984 1993
Charter Duration 15 years 15 years Extended to Extended
end of 2013 to 2014
Charterer Wallenius Nippon Yushen Mitsui O.S.K. Mitsui O.S.K.
Lines AB Kabushiki Kaisha Lines, Ltd Lines, Ltd

12 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi ted
CORPORATE GOVERNANCE STATEMENT

Singapore Shipping Corporation Limited (the Company) is committed to complying with the principles
and guidelines of the Code of Corporate Governance 2005 (the Code), so as to ensure greater
transparency and protection of shareholders interests. This statement outlines the main corporate
governance practices that were in place or implemented during the financial year.

1. BOARD MATTERS

a. Boards conduct of its affairs

The current Board comprises six directors and their principal functions are as follows:

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Annual Repo r t 2010/2011 13

CORPORATE GOVERNANCE STATEMENT

1. BOARD MATTERS (continued)

a. Boards conduct of its affairs (continued)

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1. BOARD MATTERS (continued)

b. Board composition and balance

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this Annual Report.

Annual Repo r t 2010/2011 15

CORPORATE GOVERNANCE STATEMENT

1. BOARD MATTERS (continued)

c. Role of Executive Chairman (Chairman) and Chief Executive Ofcer (CEO)

(continued)

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16 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
1. BOARD MATTERS (continued)

d. Board membership (continued)

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effectively carry out his functions as an independent director.

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Annual Repo r t 2010/2011 17

CORPORATE GOVERNANCE STATEMENT

1. BOARD MATTERS (continued)

e. Board Performance

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18 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
2. REMUNERATION MATTERS

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Annual Repo r t 2010/2011 19

CORPORATE GOVERNANCE STATEMENT

2. REMUNERATION MATTERS (continued)

b. Disclosure on directors fees and remuneration

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S$250,000.

Directors Total
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20 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
2. REMUNERATION MATTERS (continued)

c. Key executives and remuneration policy

The Company adopts a remuneration policy for staff comprising a fixed component and a
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Annual Repo r t 2010/2011 21

CORPORATE GOVERNANCE STATEMENT

2. REMUNERATION MATTERS (continued)

c. Key executives and remuneration policy (continued)

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22 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
3. ACCOUNTABILITY AND AUDIT (continued)

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recommendations to the management and AC. The internal and external auditors also have
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ended 31 March 2011.

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Annual Repo r t 2010/2011 23

CORPORATE GOVERNANCE STATEMENT

4. INTERNAL CONTROLS (continued)

a. Risk Management (continued)

i. Investment risk

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Annual Report.

b. Dealings in Companys Securities

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from dealing in the Companys securities on short-term considerations.

24 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
5. COMMUNICATION WITH SHAREHOLDERS

The Company places great emphasis on regular, effective and open communication with our
shareholders. The announcements of the Groups results and material developments are released
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6. INTERESTED PERSON TRANSACTIONS (IPT)

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Aggregate value of all IPT

Aggregate value of all IPT conducted under shareholders
during the nancial year ended mandate pursuant to Rule 920
Name of 31 March 2011 (excluding (excluding transactions
interested person transactions below S$100,000) below S$100,000)

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of Stamford Land
Corporation Ltd
- Rental expense S$198,000

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Annual Repo r t 2010/2011 25

FINANCIAL STATEMENTS

27
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34 Consolidated Income Statement
35 Consolidated Statement of Comprehensive Income
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26 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
DIRECTORS REPORT
for the nancial year ended 31 March 2011

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statements for the financial year ended 31 March 2011.

DIRECTORS

The directors in office at the date of this report are as follows:

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Tan Guong Ching

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DIRECTORS INTERESTS

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Companies Act, Chapter 50 (the Act), particulars of interests of directors who held office at the end
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warrants or share options in the Company, or in related corporations are as follows:

Holdings at Holdings at
beginning of the year end of the year

Singapore Shipping Corporation Limited

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Interests held 153,532,500 153,532,500
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of the Company.

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financial year and 21 April 2011.

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Annual Repo r t 2010/2011 27

DIRECTORS REPORT
for the nancial year ended 31 March 2011

DIRECTORS INTERESTS (continued)

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financial interest.

SHARE OPTIONS

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cancelled or have lapsed prior to that date.

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financial year.

28 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
SHARE-BASED INCENTIVE

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Shares) in the Company, which are given free of charge to the participants according to the extent to
which their performance targets are achieved at the end of a specified performance period.

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success and development of the Group.

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AUDIT COMMITTEE

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Tan Guong Ching (Chairman)

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Manual and the Code of Corporate Governance.

The Audit Committee has held four meetings since the last directors report. In performing its functions,
the Audit Committee met with the Companys external and internal auditors to discuss the scope of
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system.

The Audit Committee also reviewed the following:

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Annual Repo r t 2010/2011 29

DIRECTORS REPORT
for the nancial year ended 31 March 2011

AUDIT COMMITTEE (continued)

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discharge its functions. It has full authority and the discretion to invite any director or executive officer
to attend its meetings. The Audit Committee also recommends the appointment of the external auditors
and reviews the level of audit and non-audit fees.

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as auditors at the forthcoming Annual General Meeting of the Company.

AUDITORS

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Singapore

+VOF


30 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
STATEMENT BY DIRECTORS
for the nancial year ended 31 March 2011

In our opinion:

(a) the financial statements set out on pages 34 to 88 are drawn up so as to give a true and fair
view of the state of affairs of the Group and of the Company as at 31 March 2011, and the
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in accordance with the provisions of the Singapore Companies Act, Chapter 50 and Singapore
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issue.

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Singapore

+VOF


Annual Repo r t 2010/2011 31

INDEPENDENT AUDITORS REPORT
MEMBERS OF THE COMPANY
SINGAPORE SHIPPING CORPORATION LIMITED

REPORT ON THE FINANCIAL STATEMENTS

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and the Company as at 31 March 2011, the income statement, statement of comprehensive income,
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a summary of significant accounting policies and other explanatory information, as set out on pages
34 to 88.

MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

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accordance with the provisions of the Singapore Companies Act, Chapter 50 (the Act) and Singapore
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AUDITORS RESPONSIBILITY

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preparation of the financial statements that give a true and fair view in order to design audit procedures
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effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of
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well as evaluating the overall presentation of the financial statements.

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our audit opinion.

32 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
OPINION

In our opinion, the consolidated financial statements of the Group and the statement of financial position
of the Company are properly drawn up in accordance with the provisions of the Act and Singapore
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year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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in accordance with the provisions of the Act.

KPMG LLP
Public Accountants and
Certied Public Accountants

Singapore

+VOF


Annual Repo r t 2010/2011 33

CONSOLIDATED INCOME STATEMENT
for the nancial year ended 31 March 2011

The Group
(Re-presented)
2011 2010
Note US$000 US$000

Revenue 4 15,669 7,972

0UIFS
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JODPNF 127 131
%FQSFDJBUJPO
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Vessel operation and crew management costs (2,387) (1,509)
Staff costs (4,123) (3,706)
0UIFS
PQFSBUJOH
FYQFOTFT (825) (681)
0QFSBUJOH
QSPU
CFGPSF
PUIFS
HBJOT 4,809 699
0UIFS
HBJOT 5 459 823
Results from operating activities 6 5,268 1,522
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7 217 1,229
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9 708 (212)
Share of results of associated company, net of tax 164 585
Prot before taxation 5,594 3,124
Taxation 10 7 42
Prot for the year 5,601 3,166

Attributable to:
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Earnings per share (US cents): 11

Basic 1.3 0.7

%JMVUFE
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The accompanying notes form an integral part of these nancial statements.

34 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the nancial year ended 31 March 2011

The Group
(Re-presented)
2011 2010
US$000 US$000

Prot for the year 5,601 3,166

Currency translation:

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PQFSBUJPOT 840 114
- Realisation of currency translation reserve upon

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assets 3
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cash flow hedges (284)

Other comprehensive income for the year, net of tax 556 (192)

Total comprehensive income for the year 6,157 2,974

Attributable to:
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The accompanying notes form an integral part of these nancial statements.

Annual Repo r t 2010/2011 35

STATEMENTS OF FINANCIAL POSITION
as at 31 March 2011

The Group The Company

(Re-presented) (Re-presented)
1 April 1 April
2011 2010 2009 2011 2010 2009
Note US$000 US$000 US$000 US$000 US$000 US$000

Non-current assets
1SPQFSUZ
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FRVJQNFOU 12 69,488 6,216 11,868
Investment properties 13 113 194
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14 37,762 22,703 23,681
Associated company 15 3,016 2,851 2,267
"WBJMBCMFGPSTBMF
OBODJBM

assets 16 7 7 4
0UIFS
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17 235 213 224
72,746 9,400 14,557 37,762 22,703 23,681
Current assets
Inventories 206 39 161
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trading 19 735 972 1,426
$BTI
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FRVJWBMFOUT 20 11,942 38,591 33,186 1,002 12,639 17,904
13,735 40,425 35,578 12,043 38,588 33,782
Less:
Current liabilities
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QBZBCMFT 21 1,865 1,088 1,265 7,785 20,637 19,787
#BOL
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6,269 1,102 1,269 7,785 20,646 19,789

Net current assets 7,466 39,323 34,309 4,258 17,942 13,993

Non-current liabilities
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Net assets 51,676 48,722 48,861 42,020 40,644 37,669

Equity attributable to owners

of the Company
Share capital 24 31,665 31,665 31,665 31,665 31,665 31,665
0UIFS
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Retained earnings 20,174 17,776 17,723 10,355 8,979 6,004
Total equity 51,676 48,722 48,861 42,020 40,644 37,669
The accompanying notes form an integral part of these nancial statements.

36 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the nancial year ended 31 March 2011

Total
attributable
Currency to owners
Share Fair value Hedging translation Retained of the
capital reserve reserve reserve earnings Company
Note US$000 US$000 US$000 US$000 US$000 US$000

Balance at 1 April 2010

as re-presented 31,665 4 (723) 17,776 48,722

Total comprehensive
income (284) 840 5,601 6,157

Distributions to owners
%JWJEFOET
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Balance at
31 March 2011 31,665 4 (284) 117 20,174 51,676

Balance at 1 April 2009

as re-presented 31,665 1 (528) 17,723 48,861

Total comprehensive
income 3 (195) 3,166 2,974

Distributions to owners
%JWJEFOET
QBJE 26 (3,113) (3,113)

Balance at
31 March 2010
as re-presented 31,665 4 (723) 17,776 48,722

The accompanying notes form an integral part of these nancial statements.

Annual Repo r t 2010/2011 37

CONSOLIDATED STATEMENT OF CASH FLOWS
for the nancial year ended 31 March 2011

(Re-presented)
2011 2010
Note US$000 US$000

Operating activities
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Gain on disposal of investment properties 5 (459) (734)
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Interest income 7 (78) (356)
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assets held-for-trading 7 (91) (807)
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Share of results of associated company, net of tax (164) (585)
9,168 1,995
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Inventories (167) 121
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Cash generated from operations 9,365 2,074
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Cash ows from operating activities 9,357 2,132

Investing activities
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Interest received 116 355
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Cash ows from investing activities (65,743) 6,381

38 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
 (Re-presented)
2011 2010
Note US$000 US$000

Financing activities
%SBXEPXO
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Cash ows from nancing activities 28,669 (3,113)

Change in cash and cash equivalents (27,717) 5,400

$BTI
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FRVJWBMFOUT 1,068 5
Cash and cash equivalents at end of the year 20 11,942 38,591

The accompanying notes form an integral part of these nancial statements.

Annual Repo r t 2010/2011 39

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

These notes form an integral part of the financial statements.

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+VOF


1. DOMICILE AND ACTIVITIES

Singapore Shipping Corporation Limited (the Company) is incorporated in Singapore and listed
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Singapore 089763.

The principal activity of the Company is that of investment holding. The principal activities of the
Group are those relating to investment holding, ship owning and ship management.

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referred to as the Group and individually as Group entities) and the Groups interest in
associated companies.

2. BASIS OF PREPARATION

(a) Statement of compliance

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(b) Basis of measurement

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financial instruments which are stated at the fair values as disclosed in the accounting
policies set out in note 3.

(c) Functional and presentation currency

Items included in the financial statements of each entity in the Group are measured using
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circumstances relevant to that entity (the functional currency).

40 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
2. BASIS OF PREPARATION (continued)

(c) Functional and presentation currency (continued)

Change in functional currency

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their functional currencies from Singapore dollars (S$) to United States dollars (US$).
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affected entities:

&OUJUJFT Change in circumstances

The Company As an investment holding company, its primary investments are

in ship-owning companies. In line with the Groups strategy to
expand its fleet of vessels, with effect from 1 April 2010, the
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of vessels.

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chartering operations are primarily denominated in US$.

SSC Ship In line with the Groups strategy to expand its fleet of vessels,
.BOBHFNFOU
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-UE with effect from 1 April 2010, the principal focus of the entity is
on ship management activities, which are primarily denominated
in US$.

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with all items translated into the new functional currencies of the relevant entities using
the exchange rate at the date of the change.

Change in presentation currency

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4
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facilitate the comparison of the Groups performance with other listed companies in the
shipping industry, that use US$ as the presentation currency.

Annual Repo r t 2010/2011 41

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

2. BASIS OF PREPARATION (continued)

(c) Functional and presentation currency (continued)

Change in presentation currency (continued)

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the comparative information from S$ to US$ for presentation purposes:

&OUJUJFT Method adopted

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effecting change in functional BOE
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currencies to US$ in current US$ using the exchange rate as at the date of the
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functional currency:

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items are translated at exchange rates at the dates
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the historical rates of exchange.

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comprehensive income.

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unless otherwise stated.

(d) Use of estimates and judgements

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results may differ from these estimates.

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accounting estimates are recognised in the period in which the estimates are revised and
in any future periods affected.

42 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
2. BASIS OF PREPARATION (continued)

(d) Use of estimates and judgements (continued)

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policies that have the most significant effect on the amounts recognised in the financial
statements is included in the following notes:

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values of vessels
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/PUF


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(e) Changes in accounting policies

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which are relevant to the Groups operations:

'34

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Consolidated and Separate Financial Statements

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Financial Instruments: Recognition and Measurement - Eligible

Hedged items

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Business Combinations

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impact on the earnings per share.

Annual Repo r t 2010/2011 43

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

3. SIGNIFICANT ACCOUNTING POLICIES

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explained in note 2(e), which addresses changes in accounting policies.

(a) Basis of consolidation

Business combinations

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the Group. Control is the power to govern the financial and operating policies of an entity
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The consideration transferred does not include amounts related to the settlement of pre-
existing relationships. Such amounts are generally recognised in profit or loss.

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expensed as incurred.

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contingent consideration are recognised in profit or loss.

Goodwill

Goodwill represents the excess of:

r

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r

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44 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(a) Basis of consolidation (continued)

Goodwill (continued)

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or loss.

Goodwill is measured at cost less accumulated impairment losses. In respect of the

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amount of the investment, and an impairment loss on such an investment is not allocated
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accounted investee.

Subsidiaries

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are included in the consolidated financial statements from the date that control
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in their capacity as owners and therefore no goodwill is recognised as a result of such
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loss of control is recognised in the profit or loss. If the Group retains any interest in the
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for-sale financial asset depending on the level of influence retained.

Investments in associated companies

Associated companies are those entities in which the Group has significant influence,
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PG
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voting power of another entity.

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JO
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accounted investees) and are recognised initially at cost. The cost of the investments
includes transaction costs.

Annual Repo r t 2010/2011 45

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(a) Basis of consolidation (continued)

Investments in associated companies (continued)

The consolidated financial statements include the Groups share of the profit or loss and
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PG
UIF
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JOWFTUFFT
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PG
UIF
(SPVQ

where the amounts involved are considered significant to the Group, from the date that
significant influence commences until the date that significant influence ceases.

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the carrying amount of that interest, including any long-term investments, is reduced to
zero, and the recognition of further losses is discontinued except to the extent that the
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Transactions eliminated on consolidation

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from intra-group transactions, are eliminated in preparing the consolidated financial
statements. Unrealised gains arising from transactions with associated companies are
eliminated against the investment to the extent of the Groups interest in the investee.
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extent that there is no evidence of impairment.

Accounting for subsidiaries and associated companies by the Company

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statement of financial position at cost less accumulated impairment losses.

(b) Foreign currencies

Foreign currency transactions and balances

Transactions in foreign currencies are translated to the respective functional currencies

of the Group entities at exchange rates at the dates of the transactions. The functional
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64
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denominated in foreign currencies at the end of the reporting period are retranslated to the
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arising from retranslation are recognised in the profit or loss, except for differences arising
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BSF

recognised in other comprehensive income.

/PONPOFUBSZ
BTTFUT
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at cost are translated into the functional currency at the exchange rate at the date of the
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are measured at fair value are retranslated to the functional currency at the exchange rate
at the date on which the fair value was determined.

46 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(b) Foreign currencies (continued)

Foreign operations

5IF
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PG
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64
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exchange rates prevailing at the end of the reporting period. Income and expenses of
foreign operations are translated to US$ at the exchange rates prevailing at the dates
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PG
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+BOVBSZ

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PG
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+BOVBSZ


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amount in the translation reserve related to that foreign operation is reclassified to profit
or loss as part of the gain or loss on disposal.

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UIF
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PG
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PG
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operation while retaining control, the relevant proportion of the cumulative amount is
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investment in an associated company, that includes a foreign operation, while retaining
TJHOJDBOU
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reclassified to profit or loss.

8IFO
UIF
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PG
B
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PQFSBUJPO

JT
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arising from such a monetary item are considered to form part of a net investment in a
foreign operation and are recognised in other comprehensive income, and are presented
BT
DVSSFODZ
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(c) Revenue recognition

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BOE
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BOE

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in the following manners:

r

$IBSUFS
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JODPNF
JT
SFDPHOJTFE
PO
B
TUSBJHIUMJOF
CBTJT
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UIF
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stated in the charter hire agreement.

r

0UIFS
TIJQQJOH
JODPNF
JT
SFDPHOJTFE
BT
BOE
XIFO
TIJQ
NBOBHFNFOU
BOE
PUIFS

related shipping services are rendered.

Annual Repo r t 2010/2011 47

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(c) Revenue recognition (continued)

r

3FOUBM
JODPNF
GSPN
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over the term of the lease. Lease incentives granted are recognised as an integral
part of the total rental income, over the term of the lease.

(d) Finance income

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PO
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OBODJBM
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PG

financial assets at fair value through profit or loss.

Interest income is recognised in profit or loss as it accrues, using the effective interest
method.

%JWJEFOE
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PO
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PG
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ex-dividend date.

(e) Finance costs on bank borrowing

'JOBODF
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rate swaps.

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interest method.

(f) Exchange differences

&YDIBOHF
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fair value of foreign exchange options recognised in the profit or loss.

The foreign currency gains and losses are, however, reported separately if they are
material.

(g) Taxation

Income tax expense, which comprises current and deferred tax, is recognised in profit or
MPTT
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$VSSFOU
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PO
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GPS

UIF
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UBY
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UP
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SFTQFDU
PG
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ZFBST

48 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(g) Taxation (continued)

%FGFSSFE
UBY
JT
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JO
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PG
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GPS

r

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PG
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r

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r

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realised simultaneously.

"
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(h) Earnings per share

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#BTJD
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UP

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PG
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PG
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TIBSFT
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of ordinary shares outstanding, for the effects of all dilutive potential ordinary shares.

(i) Segment reporting

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from which it may earn revenue and incur expenses, including revenue and expenses that
relate to transactions with any of the Groups other components. An operating segments
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XIJDI
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JT
BWBJMBCMF

Annual Repo r t 2010/2011 49

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(j) Property, plant and equipment

Recognition and measurement

*UFNT
PG
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depreciation and accumulated impairment losses.

$PTU
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PG
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comparing the proceeds from disposal with the carrying amount of property, plant and
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transferred to retained earnings.

Subsequent costs

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profit or loss as incurred.

Depreciation

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of individual assets are assessed and if a component has a useful life that is different from
the remainder of that asset, that component is depreciated separately.

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%SZEPDLJOH
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The estimated useful lives for the current and comparative periods are as follows:

Vessels 15 to 30 years
%SZEPDLJOH
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UP

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Renovations, furniture and fittings 5 years

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UP

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Computers 3 years

50 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(j) Property, plant and equipment (continued)

Depreciation (continued)

FQSFDJBUJPO
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%
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(k) Investment properties

Investment properties are properties held either to earn rental income or for capital
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production or supply of goods or services or for administrative purposes.

Investment properties are measured at cost less accumulated depreciation and

impairment losses. Rental income from investment properties is accounted for in the
NBOOFS
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 D


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lives (or lease term, if shorter) of each component of an item of investment properties.

The estimated useful lives for the current and comparative periods are as follows:

'SFFIPME
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ZFBST
Leasehold properties Lease period (66 years)

/P
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BOE
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(l) Non-derivative nancial assets

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BSF
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PG
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The Group derecognises a financial asset when the contractual rights to the cash flows
from the asset expire, or it transfers the rights to receive the contractual cash flows on
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B
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ownership of the financial asset are transferred. Any interest in transferred financial assets
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Annual Repo r t 2010/2011 51

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(l) Non-derivative nancial assets (continued)

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financial position when, and only when, the Group has a legal right to offset the amounts
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simultaneously.

The Group classifies non-derivative financial assets into the following categories: financial
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financial assets.

Financial assets at fair value through prot or loss

A financial asset is classified at fair value through profit or loss if it is classified as held-for-
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are measured at fair value, and changes therein are recognised in profit or loss.

'JOBODJBM
BTTFUT
EFTJHOBUFE
BU
GBJS
WBMVF
UISPVHI
QSPU
PS
MPTT
JODMVEF
FRVJUZ
TFDVSJUJFT

UIBU
PUIFSXJTF
XPVME
IBWF
CFFO
DMBTTJFE
BT
BWBJMBCMFGPSTBMF

Loans and receivables

-PBOT
BOE
SFDFJWBCMFT
BSF
OBODJBM
BTTFUT
XJUI
YFE
PS
EFUFSNJOBCMF
QBZNFOUT
UIBU
BSF

OPU
RVPUFE
JO
BO
BDUJWF
NBSLFU
4VDI
BTTFUT
BSF
SFDPHOJTFE
JOJUJBMMZ
BU
GBJS
WBMVF
QMVT

BOZ
EJSFDUMZ
BUUSJCVUBCMF
USBOTBDUJPO
DPTUT
4VCTFRVFOU
UP
JOJUJBM
SFDPHOJUJPO
MPBOT
BOE

SFDFJWBCMFT
BSF
NFBTVSFE
BU
BNPSUJTFE
DPTU
VTJOH
UIF
FGGFDUJWF
JOUFSFTU
NFUIPE
MFTT
BOZ

impairment losses.

-PBOT
BOE
SFDFJWBCMFT
DPNQSJTF
USBEF
BOE
PUIFS
SFDFJWBCMFT

$BTI
BOE
DBTI
FRVJWBMFOUT
DPNQSJTF
DBTI
CBMBODFT
BOE
CBOL
EFQPTJUT

Available-for-sale nancial assets

"WBJMBCMFGPSTBMF
OBODJBM
BTTFUT
BSF
OPOEFSJWBUJWF
OBODJBM
BTTFUT
UIBU
BSF
EFTJHOBUFE

BT
BWBJMBCMF
GPS
TBMF
PS
BSF
OPU
DMBTTJFE
JO
BOZ
PG
UIF
BCPWF
DBUFHPSJFT
PG
OBODJBM

BTTFUT
4VCTFRVFOU
UP
JOJUJBM
SFDPHOJUJPO
UIFZ
BSF
NFBTVSFE
BU
GBJS
WBMVF
BOE
DIBOHFT

therein, other than impairment losses, are recognised in other comprehensive income
BOE
QSFTFOUFE
JO
UIF
GBJS
WBMVF
SFTFSWF
JO
FRVJUZ
8IFO
BO
JOWFTUNFOU
JT
EFSFDPHOJTFE

UIF
HBJO
PS
MPTT
BDDVNVMBUFE
JO
FRVJUZ
JT
SFDMBTTJFE
UP
QSPU
PS
MPTT

"WBJMBCMFGPSTBMF
OBODJBM
BTTFUT
DPNQSJTF
RVPUFE
FRVJUZ
TFDVSJUJFT
XIJDI
BSF
OPU

IFME
GPS
USBEJOH
PS
FOUJUJFT
PWFS
XIJDI
UIF
(SPVQ
EPFT
OPU
IBWF
DPOUSPM
KPJOUDPOUSPM
PS

significant influence.

52 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(m) Derivative nancial instruments

The Group holds derivative financial instruments to hedge its foreign currency and interest
SBUF
SJTL
FYQPTVSFT

0O
JOJUJBM
EFTJHOBUJPO
PG
UIF
EFSJWBUJWF
BT
UIF
IFEHJOH
JOTUSVNFOU
UIF
(SPVQ
GPSNBMMZ

EPDVNFOUT
UIF
SFMBUJPOTIJQ
CFUXFFO
UIF
IFEHJOH
JOTUSVNFOU
BOE
IFEHFE
JUFN
JODMVEJOH

UIF
SJTL
NBOBHFNFOU
PCKFDUJWFT
BOE
TUSBUFHZ
JO
VOEFSUBLJOH
UIF
IFEHF
USBOTBDUJPO
BOE

UIF
IFEHFE
SJTL
UPHFUIFS
XJUI
UIF
NFUIPET
UIBU
XJMM
CF
VTFE
UP
BTTFTT
UIF
FGGFDUJWFOFTT

PG
UIF
IFEHJOH
SFMBUJPOTIJQ
5IF
(SPVQ
NBLFT
BO
BTTFTTNFOU
CPUI
BU
UIF
JODFQUJPO
PG
UIF

IFEHF
SFMBUJPOTIJQ
BT
XFMM
BT
PO
BO
POHPJOH
CBTJT
PG
XIFUIFS
UIF
IFEHJOH
JOTUSVNFOUT

BSF
FYQFDUFE
UP
CF
iIJHIMZ
FGGFDUJWFu
JO
PGGTFUUJOH
UIF
DIBOHFT
JO
UIF
GBJS
WBMVF
PS
DBTI

PXT
PG
UIF
SFTQFDUJWF
IFEHFE
JUFNT
BUUSJCVUBCMF
UP
UIF
IFEHFE
SJTL
BOE
XIFUIFS
UIF

BDUVBM
SFTVMUT
PG
FBDI
IFEHF
BSF
XJUIJO
B
SBOHF
PG



'PS
B
DBTI
PX
IFEHF

PG
B
GPSFDBTU
USBOTBDUJPO
UIF
USBOTBDUJPO
TIPVME
CF
IJHIMZ
QSPCBCMF
UP
PDDVS
BOE
TIPVME

present an exposure to variations in cash flows that could ultimately affect reported profit
or loss.

%FSJWBUJWFT
BSF
SFDPHOJTFE
JOJUJBMMZ
BU
GBJS
WBMVF
BOE
UIF
BUUSJCVUBCMF
USBOTBDUJPO
DPTUT
BSF

SFDPHOJTFE
JO
QSPU
PS
MPTT
BT
JODVSSFE
4VCTFRVFOU
UP
JOJUJBM
SFDPHOJUJPO
UIF
EFSJWBUJWFT

BSF
NFBTVSFE
BU
GBJS
WBMVF
BOE
DIBOHFT
UIFSFJO
BSF
BDDPVOUFE
GPS
BT
EFTDSJCFE
CFMPX

Cash ow hedges

8IFO
B
EFSJWBUJWF
JT
EFTJHOBUFE
BT
UIF
IFEHJOH
JOTUSVNFOU
JO
B
IFEHF
PG
UIF
WBSJBCJMJUZ
JO

DBTI
PX
BUUSJCVUBCMF
UP
B
QBSUJDVMBS
SJTL
BTTPDJBUFE
XJUI
B
SFDPHOJTFE
BTTFU
PS
MJBCJMJUZ
PS

B
IJHIMZ
QSPCBCMF
GPSFDBTU
USBOTBDUJPO
UIBU
DPVME
BGGFDU
QSPU
PS
MPTT
UIF
FGGFDUJWF
QPSUJPO

of changes in fair value of the derivative is recognised in other comprehensive income
BOE
QSFTFOUFE
JO
UIF
IFEHJOH
SFTFSWF
JO
FRVJUZ
"OZ
JOFGGFDUJWF
QPSUJPO
PG
DIBOHFT
JO
UIF

fair value of the derivative is recognised immediately in profit or loss.

5IF
BNPVOU
BDDVNVMBUFE
JO
FRVJUZ
JT
SFDMBTTJFE
UP
QSPU
PS
MPTT
JO
UIF
TBNF
QFSJPE
UIBU

the hedged item affects profit or loss. If the hedged instrument no longer meets the criteria
for hedge accounting, expires or is sold, terminated or exercised, or the designation is
SFWPLFE
UIFO
IFEHF
BDDPVOUJOH
JT
EJTDPOUJOVFE
QSPTQFDUJWFMZ
*G
UIF
GPSFDBTU
USBOTBDUJPO

JT
OP
MPOHFS
FYQFDUFE
UP
PDDVS
UIFO
UIF
CBMBODF
JO
FRVJUZ
JT
SFDMBTTJFE
JO
QSPU
PS
MPTT

Other non-trading derivatives

8IFO
B
EFSJWBUJWF
OBODJBM
JOTUSVNFOU
JT
OPU
EFTJHOBUFE
JO
B
IFEHF
SFMBUJPOTIJQ
UIBU

RVBMJFT
GPS
IFEHF
BDDPVOUJOH
BMM
DIBOHFT
JO
JUT
GBJS
WBMVF
BSF
SFDPHOJTFE
JNNFEJBUFMZ
JO

profit or loss.

Annual Repo r t 2010/2011 53

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(n) Impairment of nancial assets

A financial asset not carried at fair value through profit or loss is assessed at the end
PG
FBDI
SFQPSUJOH
QFSJPE
UP
EFUFSNJOF
XIFUIFS
UIFSF
JT
BOZ
PCKFDUJWF
FWJEFODF
UIBU
JU
JT

JNQBJSFE
"
OBODJBM
BTTFU
JT
JNQBJSFE
JG
PCKFDUJWF
FWJEFODF
JOEJDBUFT
UIBU
B
MPTT
FWFOU
IBT

occurred after the initial recognition of the asset, and that the loss event has a negative
FGGFDU
PO
UIF
FTUJNBUFE
GVUVSF
DBTI
PXT
PG
UIBU
BTTFU
UIBU
DBO
CF
FTUJNBUFE
SFMJBCMZ

0CKFDUJWF
FWJEFODF
UIBU
OBODJBM
BTTFUT
BSF
JNQBJSFE
DBO
JODMVEF
EFGBVMU
PS
EFMJORVFODZ

CZ
B
EFCUPS
SFTUSVDUVSJOH
PG
BO
BNPVOU
EVF
UP
UIF
(SPVQ
PO
UFSNT
UIBU
UIF
(SPVQ
XPVME

OPU
DPOTJEFS
PUIFSXJTF
JOEJDBUJPOT
UIBU
B
EFCUPS
PS
JTTVFS
XJMM
FOUFS
CBOLSVQUDZ
PS
UIF

EJTBQQFBSBODF
PG
BO
BDUJWF
NBSLFU
GPS
B
TFDVSJUZ
*O
BEEJUJPO
GPS
BO
JOWFTUNFOU
JO
BO

FRVJUZ
TFDVSJUZ
B
TJHOJDBOU
PS
QSPMPOHFE
EFDMJOF
JO
JUT
GBJS
WBMVF
CFMPX
JUT
DPTU
JT
PCKFDUJWF

evidence of impairment.

"MM
JOEJWJEVBMMZ
TJHOJDBOU
OBODJBM
BTTFUT
BSF
BTTFTTFE
GPS
TQFDJD
JNQBJSNFOU
'JOBODJBM

assets that are not individually significant are collectively assessed for impairment in
HSPVQT
UIBU
TIBSF
TJNJMBS
SJTL
DIBSBDUFSJTUJDT

An impairment loss in respect of a financial asset measured at amortised cost is

DBMDVMBUFE
BT
UIF
EJGGFSFODF
CFUXFFO
JUT
DBSSZJOH
BNPVOU
BOE
UIF
QSFTFOU
WBMVF
PG
UIF

estimated future cash flows, discounted at the assets original effective interest rate.
Losses are recognised in profit or loss and reflected in an allowance account against
MPBOT
BOE
SFDFJWBCMFT
8IFO
B
TVCTFRVFOU
FWFOU
DBVTFT
UIF
BNPVOU
PG
JNQBJSNFOU
MPTT

to decrease, the decrease in impairment loss is reversed through profit or loss.

*NQBJSNFOU
MPTTFT
PO
BWBJMBCMFGPSTBMF
FRVJUZ
TFDVSJUZ
BSF
SFDPHOJTFE
CZ
SFDMBTTJGZJOH
UIF

MPTTFT
BDDVNVMBUFE
JO
UIF
GBJS
WBMVF
SFTFSWF JO
FRVJUZ
UP
QSPU
PS
MPTT
5IF
DVNVMBUJWF
MPTT

UIBU
JT
SFDMBTTJFE
GSPN
FRVJUZ
UP
QSPU
PS
MPTT
JT
UIF
EJGGFSFODF
CFUXFFO
UIF
BDRVJTJUJPO

cost and the current fair value, less any impairment loss recognised previously in profit
PS
MPTT
"OZ
TVCTFRVFOU
SFDPWFSZ
JO
UIF
GBJS
WBMVF
PG
BO
JNQBJSFE
BWBJMBCMFGPSTBMF
FRVJUZ

security is recognised in other comprehensive income.

(o) Impairment of non-nancial assets

The carrying amounts of the Groups non-financial assets, other than inventories and
deferred tax assets, are reviewed at each reporting date to determine whether there is
BOZ
JOEJDBUJPO
PG
JNQBJSNFOU
*G
BOZ
TVDI
JOEJDBUJPO
FYJTUT
UIFO
UIF
BTTFUT
SFDPWFSBCMF

BNPVOU
JT
FTUJNBUFE
'PS
HPPEXJMM
UIF
SFDPWFSBCMF
BNPVOU
JT
FTUJNBUFE
BU
FBDI
SFQPSUJOH

date, and as and when indicators of impairment are identified. An impairment loss is
recognised if the carrying amount of an asset or its related cash-generating unit (CGU)
FYDFFET
JUT
FTUJNBUFE
SFDPWFSBCMF
BNPVOU

54 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(o) Impairment of non-nancial assets (continued)

5IF
SFDPWFSBCMF
BNPVOU
PG
BO
BTTFU
PS
$(6
JT
UIF
HSFBUFS
PG
JUT
WBMVF
JO
VTF
BOE
JUT
GBJS

value less costs to sell. In assessing value in use, the estimated future cash flows are
EJTDPVOUFE
UP
UIFJS
QSFTFOU
WBMVF
VTJOH
B
QSFUBY
EJTDPVOU
SBUF
UIBU
SFFDUT
DVSSFOU
NBSLFU

BTTFTTNFOUT
PG
UIF
UJNF
WBMVF
PG
NPOFZ
BOE
UIF
SJTLT
TQFDJD
UP
UIF
BTTFU
PS
$(6
'PS

UIF
QVSQPTF
PG
JNQBJSNFOU
UFTUJOH
BTTFUT
UIBU
DBOOPU
CF
UFTUFE
JOEJWJEVBMMZ
BSF
HSPVQFE

together into the smallest group of assets that generates cash inflows from continuing
VTF
UIBU
BSF
MBSHFMZ
JOEFQFOEFOU
PG
UIF
DBTI
JOPXT
PG
PUIFS
BTTFUT
PS
$(6
4VCKFDU
UP
BO

operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to
XIJDI
HPPEXJMM
IBT
CFFO
BMMPDBUFE
BSF
BHHSFHBUFE
TP
UIBU
UIF
MFWFM
BU
XIJDI
JNQBJSNFOU

testing is performed, reflects the lowest level at which goodwill is monitored for internal
SFQPSUJOH
QVSQPTFT
(PPEXJMM
BDRVJSFE
JO
B
CVTJOFTT
DPNCJOBUJPO
JT
BMMPDBUFE
UP
HSPVQT

PG
$(6T
UIBU
BSF
FYQFDUFE
UP
CFOFU
GSPN
UIF
TZOFSHJFT
PG
UIF
DPNCJOBUJPO

The Groups corporate assets do not generate separate cash inflows. If there is an
JOEJDBUJPO
UIBU
B
DPSQPSBUF
BTTFU
NBZ
CF
JNQBJSFE
UIFO
UIF
SFDPWFSBCMF
BNPVOU
JT

EFUFSNJOFE
GPS
UIF
$(6
UP
XIJDI
UIF
DPSQPSBUF
BTTFU
CFMPOHT

Impairment losses are recognised in profit or loss. Impairment losses recognised in respect
of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the
CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the
CGU (group of CGUs) on a pro rata
CBTJT

An impairment loss in respect of goodwill is not reversed. In respect of other assets,

impairment losses recognised in prior periods are assessed at each reporting date for
any indications that the loss has decreased or no longer exists. An impairment loss is
SFWFSTFE
JG
UIFSF
IBT
CFFO
B
DIBOHF
JO
UIF
FTUJNBUFT
VTFE
UP
EFUFSNJOF
UIF
SFDPWFSBCMF

amount. An impairment loss is reversed only to the extent that the assets carrying
BNPVOU
EPFT
OPU
FYDFFE
UIF
DBSSZJOH
BNPVOU
UIBU
XPVME
IBWF
CFFO
EFUFSNJOFE
OFU
PG

EFQSFDJBUJPO
PS
BNPSUJTBUJPO
JG
OP
JNQBJSNFOU
MPTT
IBE
CFFO
SFDPHOJTFE

Goodwill that forms part of the carrying amount of an investment in an associated company
is not recognised separately, and therefore is not tested for impairment separately.
Instead, the entire amount of the investment in an associated company is tested for
JNQBJSNFOU
BT
B
TJOHMF
BTTFU
XIFO
UIFSF
JT
PCKFDUJWF
FWJEFODF
UIBU
UIF
JOWFTUNFOU
JO
BO

BTTPDJBUFE
DPNQBOZ
NBZ
CF
JNQBJSFE

(p) Inventories

*OWFOUPSJFT
XIJDI
DPNQSJTF
DPOTVNBCMF
TUPSFT
BSF
WBMVFE
BU
DPTU
PG
QVSDIBTF
JODMVEJOH

DPTU
JODVSSFE
JO
CSJOHJOH
UIF
JOWFOUPSJFT
UP
UIFJS
QSFTFOU
MPDBUJPO
BOE
DPOEJUJPO

PO
B
STU
JO
STUPVU
CBTJT
MFTT
BOZ
BQQMJDBCMF
BMMPXBODF
GPS
PCTPMFTDFODF
8IFO
JOWFOUPSJFT
BSF

DPOTVNFE
UIF
DBSSZJOH
BNPVOU
PG
UIFTF
DPOTVNBCMF
TUPSFT
JT
SFDPHOJTFE
BT
BO
FYQFOTF

in the period in which the consumption occurs.

Annual Repo r t 2010/2011 55

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(q) Non-derivative nancial liabilities

5IF
(SPVQ
JOJUJBMMZ
SFDPHOJTFT
EFCU
TFDVSJUJFT
JTTVFE
BOE
TVCPSEJOBUFE
MJBCJMJUJFT
PO
UIF

EBUF
UIBU
UIFZ
BSF
PSJHJOBUFE
"MM
PUIFS
OBODJBM
MJBCJMJUJFT
JODMVEJOH
MJBCJMJUJFT
EFTJHOBUFE
BU

fair value through profit or loss) are recognised initially on the trade date, which is the date
UIBU
UIF
(SPVQ
CFDPNFT
B
QBSUZ
UP
UIF
DPOUSBDUVBM
QSPWJTJPOT
PG
UIF
JOTUSVNFOU

5IF
(SPVQ
EFSFDPHOJTFT
B
OBODJBM
MJBCJMJUZ
XIFO
JUT
DPOUSBDUVBM
PCMJHBUJPOT
BSF

discharged, cancelled or expire.

'JOBODJBM
BTTFUT
BOE
MJBCJMJUJFT
BSF
PGGTFU
BOE
UIF
OFU
BNPVOU
QSFTFOUFE
JO
UIF
TUBUFNFOU
PG

financial position when, and only when, the Group has a legal right to offset the amounts
BOE
JOUFOET
FJUIFS
UP
TFUUMF
PO
B
OFU
CBTJT
PS
UP
SFBMJTF
UIF
BTTFU
BOE
TFUUMF
UIF
MJBCJMJUZ

simultaneously.

5IF
(SPVQ
DMBTTJFT
OPOEFSJWBUJWF
OBODJBM
MJBCJMJUJFT
JOUP
PUIFS
OBODJBM
MJBCJMJUJFT
XIJDI

DPNQSJTF
CBOL
CPSSPXJOH
BOE
USBEF
BOE
PUIFS
QBZBCMFT
4VDI
OBODJBM
MJBCJMJUJFT
BSF

SFDPHOJTFE
JOJUJBMMZ
BU
GBJS
WBMVF
QMVT
BOZ
EJSFDUMZ
BUUSJCVUBCMF
USBOTBDUJPO
DPTUT
4VCTFRVFOU

UP
JOJUJBM
SFDPHOJUJPO
UIFTF
OBODJBM
MJBCJMJUJFT
BSF
NFBTVSFE
BU
BNPSUJTFE
DPTU
VTJOH
UIF

effective interest method.

(r) Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or
DPOTUSVDUJWF
PCMJHBUJPO
UIBU
DBO
CF
FTUJNBUFE
SFMJBCMZ
BOE
JU
JT
QSPCBCMF
UIBU
BO
PVUPX

PG
FDPOPNJD
CFOFUT
XJMM
CF
SFRVJSFE
UP
TFUUMF
UIF
PCMJHBUJPO
1SPWJTJPOT
BSF
EFUFSNJOFE

CZ
EJTDPVOUJOH
UIF
FYQFDUFE
GVUVSF
DBTI
PXT
BU
B
QSFUBY
SBUF
UIBU
SFFDUT
DVSSFOU

NBSLFU
BTTFTTNFOUT
PG
UIF
UJNF
WBMVF
PG
NPOFZ
BOE
UIF
SJTLT
TQFDJD
UP
UIF
MJBCJMJUZ
5IF

unwinding of the discount is recognised as finance cost.

(s) Employee benets

Short-term employee benets

4IPSUUFSN
FNQMPZFF
CFOFU
PCMJHBUJPOT
BSF
NFBTVSFE
PO
BO
VOEJTDPVOUFE
CBTJT
BOE

BSF
FYQFOTFE
BT
UIF
SFMBUFE
TFSWJDF
JT
QSPWJEFE
"
MJBCJMJUZ
JT
SFDPHOJTFE
GPS
UIF
BNPVOU

FYQFDUFE
UP
CF
QBJE
VOEFS
TIPSUUFSN
DBTI
CPOVT
PS
FNQMPZFFT
FOUJUMFNFOUT
UP
BOOVBM

leave when they accrue to employees, if the Group has a present legal or constructive
PCMJHBUJPO
UP
QBZ
UIJT
BNPVOU
BT
B
SFTVMU
PG
QBTU
TFSWJDF
QSPWJEFE
CZ
UIF
FNQMPZFF
BOE

UIF
PCMJHBUJPO
DBO
CF
FTUJNBUFE
SFMJBCMZ

56 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(s) Employee benets (continued)

Dened contribution plans

"
EFOFE
DPOUSJCVUJPO
QMBO
JT
B
QPTUFNQMPZNFOU
CFOFU
QMBO
VOEFS
XIJDI
BO
FOUJUZ
QBZT

YFE
DPOUSJCVUJPOT
JOUP
B
TFQBSBUF
FOUJUZ
BOE
XJMM
IBWF
OP
MFHBM
PS
DPOTUSVDUJWF
PCMJHBUJPO

UP
QBZ
GVSUIFS
BNPVOUT
0CMJHBUJPOT
GPS
DPOUSJCVUJPOT
UP
EFOFE
DPOUSJCVUJPO
QMBOT
BSF

SFDPHOJTFE
BT
BO
FNQMPZFF
CFOFU
FYQFOTF
JO
QSPU
PS
MPTT
JO
UIF
QFSJPET
EVSJOH
XIJDI

TFSWJDFT
BSF
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Share-based payments

(i) Share options

The share option programme allows certain employees of the Group and
BTTPDJBUFE
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UP
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PG
UIF
$PNQBOZ
5IF
GBJS
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granted is recognised as an employee expense with a corresponding increase
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"U

FBDI
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UIF
$PNQBOZ
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PG
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PG
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PG
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credited to share capital when the options are exercised.

(ii) Performance share plan

An initial estimate is made for the cost of compensation under the Companys
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5IF
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MPTT
PO
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UIBU
GBJSMZ

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UIF
NBOOFS
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XIJDI
UIF
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BDDSVF
UP
UIF
FNQMPZFF
VOEFS
UIF

plan over the service period to which the performance criteria relate.

"U
FBDI
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EBUF
UIF
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PG
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PG
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CF
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vesting conditions. Any increase or decrease in compensation cost over the
previous estimate is recorded in that reporting period.

5IF
OBM
NFBTVSF
PG
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DPTU
JT
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PO
UIF
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ultimately awarded at the date the performance criteria are met.

Annual Repo r t 2010/2011 57

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(t) Accounting for operating leases

1BZNFOUT
NBEF
VOEFS
PQFSBUJOH
MFBTFT
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PG
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-FBTF
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part of the total lease expense, over the term of the lease.

$POUJOHFOU
MFBTF
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BSF
BDDPVOUFE
GPS
CZ
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UIF
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MFBTF
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PWFS
UIF
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PG
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XIFO
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OFU
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(u) Intra-group nancial guarantees

8IFSF
UIF
$PNQBOZ
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JOUP
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UIF

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insurance arrangements, and accounts for them as such. In this respect, the Company
USFBUT
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(v) Share capital

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net of any tax effects.

(w) Key management personnel

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NBOBHFNFOU
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PG
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management personnel of the Group.

(x) Government grants Jobs Credit Scheme

$BTI
HSBOUT
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+PCT
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the Group and are offset against staff costs in the financial statements.

58 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
4. REVENUE

The Group
2011 2010
US$000 US$000

Charter hire income 15,502 7,790

Ship management related services 148 151
Rental income 19 31
15,669 7,972

5. OTHER GAINS

The Group
2011 2010
US$000 US$000

Gain on disposal of investment properties 459 734

Loss on disposal of a vessel (220)
Realisation of currency translation reserve upon
MJRVJEBUJPO
PG
B
TVCTJEJBSZ 309
459 823

6. RESULTS FROM OPERATING ACTIVITIES

5IF
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The Group
2011 2010
US$000 US$000

$POUSJCVUJPOT
UP
EFOFE
DPOUSJCVUJPO
QMBOT

included in staff costs 136 124
+PCT
DSFEJUT
PGGTFU
BHBJOTU
TUBGG
DPTUT (5) (55)
0QFSBUJOH
MFBTF
FYQFOTF 148 170

Annual Repo r t 2010/2011 59

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

7. FINANCE INCOME

The Group
2011 2010
US$000 US$000

*OUFSFTU
JODPNF
PO
EFQPTJUT
XJUI
CBOLT
74 354
Interest income on security notes 4 2
%JWJEFOE
JODPNF
GSPN
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FRVJUZ
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/FU
DIBOHF
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GBJS
WBMVF
PG
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PVUTUBOEJOH

financial assets held-for-trading 91 807
217 1,229

8. FINANCE COSTS ON BANK BORROWING

The Group
2011 2010
US$000 US$000

$PNNJUNFOU
GFF
PO
CBOL
CPSSPXJOH
GBDJMJUZ 36
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PO
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CPSSPXJOH 24
Interest expense:
- interest rate swaps 236

CBOL
CPSSPXJOH 467
763

9. EXCHANGE DIFFERENCES

The Group
2011 2010
US$000 US$000

/FU
FYDIBOHF
HBJO

MPTT
708 (212)
708 (212)

60 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
10. TAXATION

The Group
2011 2010
US$000 US$000

$VSSFOU
UBY
DSFEJU

FYQFOTF

- Current year (15)


0WFS
QSPWJTJPO
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QSJPS
ZFBST 6 62
6 47
%FGFSSFE
UBY
DSFEJU

FYQFOTF

- Reversal of deferred tax asset (6)

- Utilisation of deferred tax asset (3)
- Movements in temporary differences 1 4
Income tax credit 7 42

Reconciliation of tax charge:

1SPU
CFGPSF
UBYBUJPO 5,594 3,124
Less: Share of results of associated company, net of tax (164) (585)
5,430 2,539

Tax calculated using Singapore tax rate

PG



(923) (432)
Singapore statutory stepped income exemption 14
*ODPNF
OPU
TVCKFDU
UP
UBY 1,579 608
&YQFOTFT
OPU
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GPS
UBY
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0WFS
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QSJPS
ZFBS 7 62
Utilisation of previously unrecognized tax losses 21
Reversal of deferred tax asset (6)
5BY
CFOFU
PO
UBY
MPTTFT
OPU
SFDPHOJTFE (307) (160)
7 42

Annual Repo r t 2010/2011 61

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

10. TAXATION (continued)

.PWFNFOUT
JO
EFGFSSFE
UBY
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PG
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during the financial year are as follows:

Credited / Credited /
(charged) (charged)
At 1 April to income At 31 March to income At 31 March
2009 statement 2010 statement 2011
US$000 US$000 US$000 US$000 US$000

Deferred tax liability

1SPQFSUZ
QMBOU
BOE

FRVJQNFOU (6) 4 (2) 3 1
Interest income not
remitted (10) 3 (7) 6 (1)
(16) 7 (9) 9

Deferred tax asset

Tax value of losses
carry-forwards 20 (12) 8 (8)

%FGFSSFE
UBY
MJBCJMJUZ
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authority. The amounts determined after appropriate offsetting are included in the statements of
financial position as follows:

The Group The Company

1 April 1 April
2011 2010 2009 2011 2010 2009
US$000 US$000 US$000 US$000 US$000 US$000

%FGFSSFE
UBY
BTTFU
(note 17) 9
%FGFSSFE
UBY
MJBCJMJUZ (1) (5) (1) (5)
(1) 4 (1) (5)

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assumptions which may change.

62 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
10. TAXATION (continued)

"T
BU

.BSDI

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PG
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4  

4  

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PG
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5BY
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UIF
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PG
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0G
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4  

4  

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UIF
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BSJTJOH
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11. EARNINGS PER SHARE

The Group
2011 2010
US$000 US$000

#BTJD
BOE
EJMVUFE
FBSOJOHT
QFS
TIBSF
JT
CBTFE
PO

1SPU
BUUSJCVUBCMF
UP
PXOFST
PG
UIF
$PNQBOZ 5,601 3,166

8FJHIUFE
BWFSBHF
OVNCFS
PG
PSEJOBSZ
TIBSFT
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JTTVF
GPS

CBTJD
BOE
EJMVUFE
FBSOJOHT
QFS
TIBSF

436,017 436,017

#BTJD
BOE
EJMVUFE
FBSOJOHT
QFS
TIBSF
BSF
DBMDVMBUFE
CZ
EJWJEJOH
UIF
QSPU
BUUSJCVUBCMF
UP

PXOFST
PG
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$PNQBOZ
CZ
UIF
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PG
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the financial year.

Annual Repo r t 2010/2011 63

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

12. PROPERTY, PLANT AND EQUIPMENT

Renovations, Equipment
Drydocking furniture and
The Group Vessels expenditure and ttings computers Total
US$000 US$000 US$000 US$000 US$000

Cost
At 1 April 2009 59,566 2,053 163 587 62,369
Additions 30 30
%JTQPTBMT (16,558) (4) (161) (16,723)
At 31 March 2010 43,008 2,049 163 456 45,676
Additions 66,787 18 2 117 66,924
8SJUFPGG (2,049) (2,049)
%JTQPTBMT (33) (33)
At 31 March 2011 109,795 18 165 540 110,518

Accumulated
depreciation
At 1 April 2009 49,175 683 65 578 50,501
%FQSFDJBUJPO
DIBSHF 650 824 21 10 1,505
%JTQPTBMT (12,381) (4) (161) (12,546)
At 31 March 2010 37,444 1,503 86 427 39,460
%FQSFDJBUJPO
DIBSHF 3,055 546 19 31 3,651
8SJUFPGG (2,049) (2,049)
%JTQPTBMT (32) (32)
At 31 March 2011 40,499 105 426 41,030

Carrying amount
At 1 April 2009 10,391 1,370 98 9 11,868
At 31 March 2010 5,564 546 77 29 6,216
At 31 March 2011 69,296 18 60 114 69,488

Impairment assessment

&BDI
PG
UIF
(SPVQT
WFTTFMT
JT
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TFQBSBUF
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GPSNBM

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BTTFTTNFOU
PG
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UIF
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JT
EFUFSNJOFE

CBTFE
PO
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DBMDVMBUJPO

64 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
12. PROPERTY, PLANT AND EQUIPMENT (continued)

Impairment assessment (continued)

5IF
SFDPWFSBCMF
BNPVOUT
XFSF
EFSJWFE
GSPN
WBMVFJOVTF
DBMDVMBUJPOT
VTJOH
EJTDPVOUFE
DBTI

PX
QSPKFDUJPOT
XIJDI
BSF
CBTFE
PO
DPOUSBDUVBM
DBTI
PXT
BSJTJOH
GSPN
DIBSUFS
PG
UIF
WFTTFMT

PWFS
UIF
MFBTF
UFSN
5IFTF
DBTI
PXT
UBLF
JOUP
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DPOUSBDUVBM
DIBSUFS
SBUFT
NBOBHFNFOUT

BTTFTTNFOU
PG
QSPKFDUFE
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BOE
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GPS
NBSLFU
EFWFMPQNFOU
XIJDI
BSF

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CZ
UIF
(SPVQT
IJTUPSJDBM
FYQFSJFODF
BOE
QBTU
PCTFSWBCMF
EBUB
5IF
DBTI
PXT
BSF

then discounted at rates determined using the appropriate cost of capital which approximates
UIF
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WFTTFMT

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PO
NBOBHFNFOUT
BTTFTTNFOU
OP
JNQBJSNFOU
MPTT
IBT
CFFO
JEFOUJFE

Depreciation, useful lives and residual values of vessels

The Group reviews the estimated useful lives of the vessels regularly in order to determine the
BNPVOU
PG
EFQSFDJBUJPO
FYQFOTF
UP
CF
SFDPSEFE
GPS
FBDI
OBODJBM
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level of use of the vessels could impact the economic useful lives and the residual values of
the vessels. Any changes in the economic useful lives and the residual values could impact
UIF
EFQSFDJBUJPO
DIBSHFT
BOE
DPOTFRVFOUMZ
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UIF
(SPVQT
SFTVMUT
5IF
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BSF

reviewed at each financial year-end, with any changes in estimates accounted for as a change
in estimate and therefore prospectively.

The residual values of the vessels for the purpose of calculating the annual depreciation
expense for the year is estimated using the long-range average scrap steel price in US$ per
light displacement ton less estimated costs of disposal of a complete vessel with all normal
NBDIJOFSZ
BOE
FRVJQNFOU
PO
CPBSE

%SZEPDLJOH
DPTUT
BSF
BNPSUJTFE
PO
B
TUSBJHIUMJOF
CBTJT
PWFS
UIF
QFSJPE
UP
UIF
OFYU
BOUJDJQBUFE

ESZEPDLJOH
EBUF
5IF
(SPVQ
SFWJFXT
UIF
DPOEJUJPOT
PG
UIF
WFTTFMT
PQFSBUFE
CZ
UIFN
BOE
UPHFUIFS

with the Groups historical experience with similar vessels and the relevant regulations governing
UIF
WFTTFMT
UIF
(SPVQ
EFUFSNJOFT
UIF
OFYU
BOUJDJQBUFE
ESZEPDLJOH
EBUF
PG
FBDI
JOEJWJEVBM

WFTTFM
"OZ
DIBOHFT
UP
UIF
OFYU
BOUJDJQBUFE
ESZEPDLJOH
EBUF
DPVME
JNQBDU
UIF
BNPSUJTBUJPO
BOE

DPOTFRVFOUMZ
BGGFDU
UIF
(SPVQT
SFTVMUT
5IF
OFYU
BOUJDJQBUFE
ESZEPDLJOH
EBUF
JT
SFWJFXFE
BU

each reporting date.

Change in estimates

%VSJOH
UIF
OBODJBM
ZFBS
UIF
SFTJEVBM
WBMVF
GPS
POF
PG
UIF
WFTTFMT
IBT
CFFO
SFWJTFE
5IF
DIBOHF
JO

residual value of the vessel constitutes a change in estimates and the effects of the change have
CFFO
BQQMJFE
QSPTQFDUJWFMZ
5IF
FGGFDU
PG
UIF
DIBOHF
JT
B
SFEVDUJPO
JO
EFQSFDJBUJPO
FYQFOTF
JO

UIF
DVSSFOU
ZFBS
CZ
BQQSPYJNBUFMZ
64 
"T
UIF
SFTJEVBM
WBMVF
PG
UIF
WFTTFMT
BSF
SFWJFXFE

at each financial year-end and any changes in estimates are accounted for prospectively, the
FGGFDU
PO
GVUVSF
QFSJPET
JT
JNQSBDUJDBCMF
UP
FTUJNBUF

Annual Repo r t 2010/2011 65

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

13. INVESTMENT PROPERTIES

Freehold
land and Leasehold
The Group properties properties Total
US$000 US$000 US$000
Cost
At 1 April 2009 266 204 470
Currency translation differences 20 17 37
%JTQPTBM
(286) (286)
At 31 March 2010 221 221
Currency translation differences 17 17
%JTQPTBM (238) (238)
At 31 March 2011

Accumulated depreciation
At 1 April 2009 179 97 276
Currency translation differences 14 8 22
%FQSFDJBUJPO
DIBSHF 3 3
%JTQPTBM (193) (193)
At 31 March 2010 108 108
Currency translation differences 8 8
%FQSFDJBUJPO
DIBSHF 1 1
%JTQPTBM (117) (117)
At 31 March 2011

Carrying value
At 1 April 2009 87 107 194
At 31 March 2010 113 113
At 31 March 2011

5IF
SFOUBM
JODPNF
FBSOFE
BOE
EJSFDU
PQFSBUJOH
FYQFOTFT
JODVSSFE
CZ
UIF
(SPVQ
PO
JUT

investment properties amount to approximately US$19,000 (2010: US$31,000) and US$6,000
(2010: US$11,000) respectively.

66 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
14. SUBSIDIARIES

The Company
2011 2010 1 April 2009
US$000 US$000 US$000

6ORVPUFE
FRVJUZ
TIBSFT
BU
DPTU 23,560 23,560 24,395

Less: Impairment loss (857) (857) (714)
22,703 22,703 23,681
%VF
GSPN
B
TVCTJEJBSZ
OPOUSBEF
15,059
37,762 22,703 23,681

5IF
JOWFTUNFOUT
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XIFO
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JO
B
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MJBCJMJUJFT

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TVGGFSFE
DPOUJOVBM
PQFSBUJOH
MPTTFT
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LOPXO
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JOEJDBUPST

5IJT
UFTU
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TJHOJDBOU
KVEHFNFOU

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PG
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JO
POF
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UIF
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SFTQFDU
PG
UIF
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JO
B
TVCTJEJBSZ
EVSJOH
UIF
ZFBS
JT

as follows:

The Company
2011 2010 1 April 2009
US$000 US$000 US$000

#BMBODF
BU
CFHJOOJOH
PG
UIF
ZFBS 857 714

Addition during the year 143 714
Balance at end of the year 857 857 714

5IF
OFU
BTTFUT
PG
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XIJDI
DPNQSJTF
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approximate the fair value less costs to sell.

5IF
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"T
UIJT
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JT
JO

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QBSU
PG
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$PNQBOZT
OFU
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UIF
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JT
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BU
DPTU
MFTT

accumulated impairment, if any.

Annual Repo r t 2010/2011 67

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

14. SUBSIDIARIES (continued)

%FUBJMT
PG
UIF
TVCTJEJBSJFT
BSF
BT
GPMMPXT

Country of Effective equity

Name of subsidiary incorporation held by the Group
1 April
2011 2010 2009
% % %

0X
#SPUIFST
1UF
-UE Singapore 100 100 100

4FBUSBEF
4IJQ
.BOBHFNFOU
1UF
-UE Singapore 100 100 100
Singapore Ship Technologies Ltd (a) British Virgin 100 100
Islands
44$
$BSSJFST
1UF
-UE Singapore 100 100 100
44$
*OWFTUNFOUT
1UF

-JNJUFE
Singapore 100 100 100
44$
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-UE
Singapore 100 100 100
44$
4IJQ
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1UF
-UE Singapore 100 100 100
44$
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4

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C
Singapore 100

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PG
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PG
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PG
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PG
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15. ASSOCIATED COMPANY

The Group The Company

1 April 1 April
2011 2010 2009 2011 2010 2009
US$000 US$000 US$000 US$000 US$000 US$000

6ORVPUFE
FRVJUZ
TIBSFT

at cost * * * * * *
Groups share of post-
BDRVJTJUJPO
QSPUT

and reserves, net of
dividends received 3,016 2,851 2,267
3,016 2,851 2,267


$PTU
JT
CFMPX
64 

68 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
15. ASSOCIATED COMPANY (continued)

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PG
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DPNQBOZ
BSF
BT
GPMMPXT

Country of Effective equity

Name of associated company incorporation held by the Group
1 April
2011 2010 2009
% % %

.0#
$PVHBS
1UF
-UE Singapore 30 30 30

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,1.(
--1

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QFSDFOUBHF
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IFME
CZ
UIF
(SPVQ
5IF
OBODJBM
JOGPSNBUJPO
PG
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BTTPDJBUFE

company is as follows:

2011 2010 1 April 2009

US$000 US$000 US$000

Results
Revenue 5,693 4,695 7,866

1SPU
BGUFS
UBYBUJPO 548 1,949 2,080

Assets and liabilities

Total assets 14,983 14,874 19,025

5PUBM
MJBCJMJUJFT 4,930 5,369 11,469

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DPOUJOHFOU
MJBCJMJUZ
PG
UIF
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DPNQBOZ
JT
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 B

JJ


16. AVAILABLE-FOR-SALE FINANCIAL ASSETS

The Group
2011 2010 1 April 2009
US$000 US$000 US$000

2VPUFE
FRVJUZ
TFDVSJUJFT

BWBJMBCMFGPSTBMF 7 7 4

Annual Repo r t 2010/2011 69

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

17. OTHER ASSETS

The Group
2011 2010 1 April 2009
US$000 US$000 US$000

%FGFSSFE
UBY
BTTFU
OPUF

9
$MVC
NFNCFSTIJQT 235 213 215
235 213 224

18. TRADE AND OTHER RECEIVABLES

The Group The Company

1 April 1 April
2011 2010 2009 2011 2010 2009
US$000 US$000 US$000 US$000 US$000 US$000

5SBEF
SFDFJWBCMFT 21 3 5
%VF
GSPN
SFMBUFE
QBSUJFT

(trade) 1 3 1
%VF
GSPN
TVCTJEJBSJFT

(non- trade) 20,586 33,290 22,282
Less: Impairment loss (9,554) (7,354) (6,426)
11,032 25,936 15,856
%FQPTJUT 41 43 46 1
Accrued interest
SFDFJWBCMF 5 42 41 6 15
4VOESZ
EFCUPST 354 605 488
0UIFST 186
-PBOT
BOE
SFDFJWBCMFT 608 696 581 11,033 25,942 15,871
Advances 14 3 16 2 2 1
1SFQBZNFOUT 230 124 208 6 5 6
852 823 805 11,041 25,949 15,878

5IF
OPOUSBEF
BNPVOUT
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GSPN
TVCTJEJBSJFT
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on demand.

3FMBUFE
QBSUJFT
SFGFS
UP
TVCTJEJBSJFT
PG
UIF
DPNQBOJFT
XJUI
B
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JO
DPNNPO

with the Company.

70 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
18. TRADE AND OTHER RECEIVABLES (continued)

Impairment loss

5IF
OPOUSBEF
BNPVOUT
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GSPN
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OFU
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#BTFE
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OPOUSBEF

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5IF
DIBOHF
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PG
OPOUSBEF
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EVSJOH
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BT
GPMMPXT

The Company
2011 2010 1 April 2009
US$000 US$000 US$000

#BMBODF
BU
CFHJOOJOH
PG
UIF
ZFBS
7,354 6,426 2,856

Addition during the year 2,200 928 6,426
Impairment loss utilised (2,856)
Balance at end of the year 9,554 7,354 6,426

19. FINANCIAL ASSETS HELD-FOR-TRADING

The Group
2011 2010 1 April 2009
US$000 US$000 US$000

&RVJUZ
MJOLFE
OPUFT
283
2VPUFE
FRVJUZ
TFDVSJUJFT 735 972 1,143
735 972 1,426

Annual Repo r t 2010/2011 71

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

20. CASH AND CASH EQUIVALENTS

The Group The Company

1 April 1 April
2011 2010 2009 2011 2010 2009
US$000 US$000 US$000 US$000 US$000 US$000

$BTI
BU
CBOL
BOE
JO
IBOE 978 367 1,174 65 48 788

'JYFE
EFQPTJUT 10,964 38,224 32,012 937 12,591 17,116
11,942 38,591 33,186 1,002 12,639 17,904

As at reporting date, the weighted average effective interest rate per annum is as follows:

The Group The Company

1 April 1 April
2011 2010 2009 2011 2010 2009
% % % % % %

'JYFE
EFQPTJUT 0.34 0.67 1.50 0.29 0.45 1.34

Interest rates are repriced at intervals of one to seven months.

21. TRADE AND OTHER PAYABLES

The Group The Company

1 April 1 April
2011 2010 2009 2011 2010 2009
US$000 US$000 US$000 US$000 US$000 US$000

5SBEF
QBZBCMFT 181 65 89
%VF
UP
SFMBUFE
QBSUJFT

(trade) 2 1 2
%VF
UP
TVCTJEJBSJFT
(non-trade) 7,458 20,363 19,516
Sundry creditors 43 28 28 32 28 28
"DDSVFE
JOUFSFTU
QBZBCMF 165
Accrued operating
expenses 1,309 895 1,046 295 246 243
'JOBODJBM
MJBCJMJUJFT
BU

amortised cost 1,700 989 1,165 7,785 20,637 19,787
Advance receipts from
customers 165 99 100
1,865 1,088 1,265 7,785 20,637 19,787

72 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
21. TRADE AND OTHER PAYABLES (continued)

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B
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DPNNPO

with the Company.

22. BANK BORROWING

The Group
2011 2010 1 April 2009
US$000 US$000 US$000

Current
$VSSFOU
QPSUJPO
PG
MPOHUFSN
CBOL

CPSSPXJOH
4,404

Non-current
-POHUFSN
CBOL
CPSSPXJOH 28,252

%VSJOH
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ZFBS
B
XIPMMZ
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64
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64
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+VOF


Annual Repo r t 2010/2011 73

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

23. DERIVATIVE FINANCIAL LIABILITY

Notional Negative
amount fair value
US$000 US$000

Current
'PSFJHO
DVSSFODZ
PQUJPO 750 *


/FHBUJWF
GBJS
WBMVF
JT
CFMPX
64 

Non-current
Interest rate swaps 15,000 284

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4FF

note 22 for further details.

There were no outstanding derivatives as at 31 March 2010 and 31 March 2009.

24. SHARE CAPITAL

Ordinary shares

The Company
000

/VNCFS
PG
TIBSFT
BU

"QSJM

BOE

.BSDI
 436,017

/VNCFS
PG
TIBSFT
BU

"QSJM

BOE

.BSDI
 436,017

The holders of ordinary shares are entitled to receive dividends as declared from time to time
BOE
BSF
FOUJUMFE
UP
POF
WPUF
QFS
TIBSF
BU
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PG
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TIBSFT
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XJUI

regard to the Companys residual assets.

Capital management

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The Group defines capital to include funds raised through the issuance of ordinary share capital and
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to continue as a going concern while maximising the return to shareholders through optimisation
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':
/JM

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capital structure through the payment of dividends, return of capital to shareholders, new share
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74 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
24. SHARE CAPITAL (continued)

There were no changes in the Groups approach to capital management during the year.

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25. OTHER RESERVES

The Group
2011 2010 1 April 2009
Note US$000 US$000 US$000

'BJS
WBMVF
SFTFSWF (a) 4 4 1
)FEHJOH
SFTFSWF C
(284)
Currency translation reserve (c) 117 (723) (528)
(163) (719) (527)

(a) Fair value reserve

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for-sale financial assets.

(b) Hedging reserve

The hedging reserve comprises the effective portion of changes in fair value of cash
flow hedges.

(c) Currency translation reserve

The currency translation reserve comprises all foreign exchange differences arising
from the translation of the financial statements of foreign operations whose functional
currencies are different from the functional currency of the Company.

Annual Repo r t 2010/2011 75

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

26. DIVIDENDS

The Company
2011 2010
US$000 US$000

Dividends paid
In respect of financial year ended 31 March 2009

'JOBM
POFUJFS
UBY
FYFNQU
EJWJEFOE
PG

1 Singapore cent per share 3,113
In respect of financial year ended 31 March 2010

'JOBM
POFUJFS
UBY
FYFNQU
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1 Singapore cent per share 3,203
3,203 3,113

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dividend of 1 Singapore cent per share amounting to approximately S$4,360,000. The financial
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.BSDI


27. SHARE OPTIONS

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0
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PG
UIF
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PG
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PS
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QSJPS
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0QUJPOT
HSBOUFE
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DPNQBOJFT

FYFDVUJWFT
XJMM
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CF
FYFSDJTBCMF
BGUFS
UIF
GUI
BOOJWFSTBSZ
PG
UIF
SFMFWBOU
EBUF
PG

HSBOU
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UIFZ
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PS
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4JODF
UIF
DPNNFODFNFOU
PG
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0QUJPO
1MBO
OP
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HSBOUFE

76 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
28. SHARE-BASED INCENTIVE

5IF
4JOHBQPSF
4IJQQJOH
$PSQPSBUJPO
-JNJUFE
1FSGPSNBODF
4IBSF
1MBO
UIF
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1MBO


XBT
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"VHVTU

5IF

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1MBO
JT
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$PNNJUUFF

5IF
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1MBO
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B
TIBSFCBTFE
JODFOUJWF
UP
SFXBSE
QBSUJDJQBOUT
CZ
UIF
BXBSE
PG

new shares (the Shares) in the Company, which are given free of charge to the participants
according to the extent to which their performance targets are achieved at the end of a specified
performance period.

5IF
TFMFDUJPO
PG
B
QBSUJDJQBOU
BOE
UIF
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PG
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CF

EFUFSNJOFE
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PG
UIF
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$PNNJUUFF
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BDDPVOU
UIF
QBSUJDJQBOUT
SBOL
KPC
QFSGPSNBODF
ZFBST
PG
TFSWJDF
QPUFOUJBM
GPS
GVUVSF
EFWFMPQNFOU

BOE
DPOUSJCVUJPOT
UP
UIF
TVDDFTT
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PG
UIF
(SPVQ

4JODF
UIF
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PG
UIF
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1MBO
OP
4IBSFT
IBWF
CFFO
BXBSEFE

29. SEGMENT INFORMATION

(a) Operating segments

IF
(SPVQ
JT
QSJODJQBMMZ
FOHBHFE
JO
TIJQ
PXOJOH
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TIJQ
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5IF
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MJBCJMJUJFT

5
BOE
DBQJUBM
FYQFOEJUVSF
PG
UIF
(SPVQ
BSF
NBJOMZ
FNQMPZFE
JO
UIJT
TPMF
SFQPSUBCMF
TFHNFOU

(b) Geographical segments

*O
QSFTFOUJOH
JOGPSNBUJPO
PO
UIF
CBTJT
PG
HFPHSBQIJDBM
TFHNFOUT
TFHNFOU
SFWFOVF
JT

CBTFE
PO
UIF
DPVOUSZ
PG
EPNJDJMF
PG
UIF
DVTUPNFST

The Group
2011 2010
US$000 US$000

Revenue
+BQBO 5,585 7,790
Singapore 167 182
Sweden 9,917
15,669 7,972

"T
UIF
(SPVQT
WFTTFMT
BSF
EFQMPZFE
CZ
UIF
DVTUPNFST
UP
WBSJPVT
QBSUT
PG
UIF
XPSME
UIF

%JSFDUPST
EP
OPU
DPOTJEFS
JU
NFBOJOHGVM
UP
BMMPDBUF
UIF
BTTFUT
BOE
DBQJUBM
FYQFOEJUVSF
UP

specific geographical segments.

(c) Information about major customers

3FWFOVF
GSPN
UXP

POF

NBKPS
DVTUPNFST
BNPVOUFE
UP
64  

/JM


and US$5,297,000 (2010: US$7,790,000) respectively arising from chartering of vessels.

Annual Repo r t 2010/2011 77

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

30. FINANCIAL RISK MANAGEMENT

(a) Overview

5IF
(SPVQ
IBT
FYQPTVSF
UP
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PG
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r
DSFEJU
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r
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r
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5IJT
OPUF
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BCPVU
UIF
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FBDI
PG
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SJTLT
BOE

UIF
(SPVQT
PCKFDUJWFT
QPMJDJFT
BOE
QSPDFTTFT
GPS
NFBTVSJOH
BOE
NBOBHJOH
UIFTF
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5IF
(SPVQT
NBOBHFNFOU
PG
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JT
TFU
PVU
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OPUF

'VSUIFS
RVBOUJUBUJWF
EJTDMPTVSFT

are included throughout these consolidated financial statements.

5IF
#PBSE
PG
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PWFSBMM
SFTQPOTJCJMJUZ
GPS
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UIF
(SPVQT
SJTL
NBOBHFNFOU
GSBNFXPSL

5IF
(SPVQ
IBT
B
TZTUFN
PG
DPOUSPMT
JO
QMBDF
UP
DSFBUF
BO
BDDFQUBCMF
CBMBODF
CFUXFFO
UIF

DPTU
PG
SJTLT
PDDVSSJOH
BOE
UIF
DPTU
PG
NBOBHJOH
UIF
SJTLT
5IF
NBOBHFNFOU
DPOUJOVBMMZ

NPOJUPST
UIF
(SPVQT
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QSPDFTT
UP
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CFUXFFO
SJTL
BOE
DPOUSPM
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BDIJFWFE
3JTL
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QPMJDJFT
BOE
TZTUFNT
BSF

SFWJFXFE
SFHVMBSMZ
UP
SFFDU
DIBOHFT
JO
NBSLFU
DPOEJUJPOT
BOE
UIF
(SPVQT
BDUJWJUJFT

The Audit Committee oversees how management monitors compliance with the
(SPVQT
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QPMJDJFT
BOE
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BOE
SFWJFXT
UIF
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PG
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SJTL

NBOBHFNFOU
GSBNFXPSL
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UP
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CZ
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(SPVQ
5IF
"VEJU
$PNNJUUFF

JT
BTTJTUFE
JO
JUT
PWFSTJHIU
SPMF
CZ
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"VEJU
*OUFSOBM
"VEJU
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CPUI
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BOE
BE
IPD
SFWJFXT
PG
SJTL
NBOBHFNFOU
DPOUSPMT
BOE
QSPDFEVSFT
UIF
SFTVMUT
PG
XIJDI
BSF

reported to the Audit Committee.

(b) Credit risk

$SFEJU
SJTL
JT
UIF
SJTL
PG
OBODJBM
MPTT
UP
UIF
(SPVQ
JG
B
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PS
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UP
B

OBODJBM
JOTUSVNFOU
GBJMT
UP
NFFU
JUT
DPOUSBDUVBM
PCMJHBUJPOT
BOE
BSJTFT
QSJODJQBMMZ
GSPN

UIF
(SPVQT
USBEF
BOE
PUIFS
SFDFJWBCMFT
DBTI
BOE
DBTI
FRVJWBMFOUT
OBODJBM
BTTFUT

held-for-trading and derivative instruments.

5IF
NBYJNVN
FYQPTVSF
UP
DSFEJU
SJTL
JT
SFQSFTFOUFE
CZ
UIF
DBSSZJOH
BNPVOU
PG
FBDI

financial asset, including derivative financial instruments, in the statement of financial
position.

Trade and other receivables

The Group has in place policies to ensure that services are rendered to customers with
an appropriate credit history and rating.

78 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
30. FINANCIAL RISK MANAGEMENT (continued)

(b) Credit risk (continued)

Cash and cash equivalents

5IF
(SPVQ
QMBDFT
JUT
DBTI
BOE
YFE
EFQPTJUT
XJUI
CBOLT
BOE
OBODJBM
JOTUJUVUJPOT
XIJDI

are regulated, to limit its credit exposure.

Financial assets held-for-trading and derivative instruments

5IF
(SPVQ
MJNJUT
JUT
DSFEJU
SJTL
CZ
JOWFTUJOH
JO
TFDVSJUJFT
PG
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FTUBCMJTIFE
DPNQBOJFT

FOUFSJOH
JOUP
JOUFSFTU
SBUF
TXBQT
QVSDIBTFT
FRVJUZ
MJOLFE
OPUFT
EFCU
TFDVSJUZ
OPUFT
BOE

TUSVDUVSFE
EFQPTJUT
GSPN
BOE
EFBMT
JO
GPSFJHO
FYDIBOHF
PQUJPOT
XJUI
CBOLT
BOE
OBODJBM

institutions which are regulated and have sound credit rating.

(c) Liquidity risk

-JRVJEJUZ
SJTL
JT
UIF
SJTL
UIBU
UIF
(SPVQ
PS
UIF
$PNQBOZ
XJMM
OPU
CF
BCMF
UP
NFFU
JUT
OBODJBM

PCMJHBUJPOT
BT
UIFZ
GBMM
EVF
5IF
(SPVQT
BQQSPBDI
UP
NBOBHJOH
MJRVJEJUZ
JT
UP
FOTVSF
BT

GBS
BT
QPTTJCMF
UIBU
JU
XJMM
BMXBZT
IBWF
TVGDJFOU
MJRVJEJUZ
UP
NFFU
JUT
MJBCJMJUJFT
XIFO
EVF

VOEFS
CPUI
OPSNBM
BOE
TUSFTTFE
DPOEJUJPOT
5IJT
JT
BDIJFWFE
UISPVHI
NPOJUPSJOH
UIF
DBTI

PX
SFRVJSFNFOUT
DMPTFMZ
BOE
PQUJNJTJOH
JUT
DBTI
SFUVSO
PO
JOWFTUNFOUT

5IF
GPMMPXJOH
BSF
UIF
DPOUSBDUVBM
NBUVSJUJFT
PG
OBODJBM
MJBCJMJUJFT

More than
Carrying Contractual 1 year 1 year to More than
amount cash ows or less 2 years 2 years
US$000 US$000 US$000 US$000 US$000

The Group
2011
Non-derivative
nancial liabilities
5SBEF
QBZBCMFT 183 (183) (183)
0UIFS
QBZBCMFT
43 (43) (43)
Accrued operating
expenses 1,309 (1,309) (1,309)
#BOL
CPSSPXJOH
DVN

interest 32,821 (37,235) (5,033) (5,276) (26,926)

Derivative nancial
liabilities
Interest rate swaps
used for hedging 284 (280) (203) (155) 78
34,640 (39,050) (6,771) (5,431) (26,848)

Annual Repo r t 2010/2011 79

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

30. FINANCIAL RISK MANAGEMENT (continued)

(c) Liquidity risk (continued)

More than
Carrying Contractual 1 year 1 year to More than
amount cash ows or less 2 years 2 years
US$000 US$000 US$000 US$000 US$000

The Group
2010
Non-derivative nancial
liabilities
5SBEF
QBZBCMFT 66 (66) (66)
0UIFS
QBZBCMFT
28 (28) (28)
Accrued operating
expenses 895 (895) (895)
989 (989) (989)

Carrying Contractual 1year

amount cash ows or less
US$000 US$000 US$000
The Company
2011
0UIFS
QBZBCMFT 7,490 (7,490) (7,490)
Accrued operating expenses 295 (295) (295)
7,785 (7,785) (7,785)

2010
0UIFS
QBZBCMFT 20,391 (20,391) (20,391)
Accrued operating expenses 246 (246) (246)
20,637 (20,637) (20,637)

(d) Market risk

.BSLFU
SJTL
JT
UIF
SJTL
UIBU
DIBOHFT
JO
NBSLFU
QSJDFT
TVDI
BT
GPSFJHO
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SBUFT

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SBUFT
BOE
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UIF
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PS
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PG
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IPMEJOHT

PG
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5IF
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PG
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SJTL
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JT
UP
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UIF
SFUVSO

PO
SJTL

5IF
(SPVQ
JT
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UP
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SJTL
BOE
UIF
SJTL
PG
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JO
UIF
GBJS
WBMVF
PG
UIF

JOWFTUNFOUT
IFME
5IF
(SPVQ
NBOBHFT
UIF
SJTL
CZ
FWBMVBUJOH
UIF
JOWFTUNFOU
PQQPSUVOJUJFT

continuously monitoring the performance of the investments held and assessing the
NBSLFU
SJTL
SFMFWBOU
UP
XIJDI
UIF
JOWFTUNFOU
PQFSBUFT

80 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
30. FINANCIAL RISK MANAGEMENT (continued)

(d) Market risk (continued)

Foreign currency risk

5IF
(SPVQ
JT
FYQPTFE
UP
GPSFJHO
DVSSFODZ
SJTL
PO
USBOTBDUJPOT
EFOPNJOBUFE
JO
GPSFJHO

currencies arising from normal trading and investment activities.

5IF
(SPVQ
NBJOUBJOT
B
OBUVSBM
IFEHF
XIFOFWFS
QPTTJCMF
CZ
CPSSPXJOH
JO
DVSSFODJFT

UIBU
NBUDI
UIF
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TUSFBN
UP
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JUT
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5IF
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UP
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JU
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GPSFJHO
FYDIBOHF
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BOEPS
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FYDIBOHF
DPOUSBDUT
XIFSF
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%VSJOH
UIF
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ZFBS
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$PNQBOZ
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4
UP
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64
)FODF
UIF
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HJWJOH
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UP
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DVSSFODZ
SJTL
JT
OPX
QSJNBSJMZ
UIF
4
JOTUFBE
PG
UIF
64

The Group and the Companys exposures to foreign currencies are as follows:

2011 2010
Singapore US
dollar dollar
US$000 US$000

The Group
"WBJMBCMFGPSTBMF
OBODJBM
BTTFUT 7
0UIFS
BTTFUT 235
5SBEF
BOE
PUIFS
SFDFJWBCMFT 78 543
'JOBODJBM
BTTFUT
IFMEGPSUSBEJOH 638 394
$BTI
BOE
DBTI
FRVJWBMFOUT 10,668 11,216
5SBEF
BOE
PUIFS
QBZBCMFT (66) (187)
/FU
FYQPTVSF 11,560 11,966

The Company
5SBEF
BOE
PUIFS
SFDFJWBCMFT 21,507 250
$BTI
BOE
DBTI
FRVJWBMFOUT 736 11,127
5SBEF
BOE
PUIFS
QBZBCMFT (3,754) (847)
/FU
FYQPTVSF 18,489 10,530

Annual Repo r t 2010/2011 81

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

30. FINANCIAL RISK MANAGEMENT (continued)

(d) Market risk (continued)

Foreign currency risk (continued)

t
4FOTJUJWJUZ
BOBMZTJT

Financial instruments


TUSFOHUIFOJOH
PG
UIF
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DVSSFODZ
BHBJOTU
UIF
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BT

"
BU
UIF
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XPVME
JODSFBTF

EFDSFBTF

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BOE

FBSOJOHT
CZ
UIF
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TIPXO
CFMPX

The Group The Company

Currency
translation
reserve Earnings Earnings
US$000 US$000 US$000

2011
S$ (7) (571) (924)

2010
US$ (18) (580) (527)

"

XFBLFOJOH
PG
UIF
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DVSSFODZ
BHBJOTU
UIF
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constant.

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reflect the actual exposure and circumstances during the year.

Interest rate risk

5IF
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flows due to changes in interest rates.

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UP
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SBUFT

82 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
30. FINANCIAL RISK MANAGEMENT (continued)

(d) Market risk (continued)

Interest rate risk (continued)

As at 31 March 2011, the Group has interest rate swaps with a total notional contract
BNPVOU
PG
64
NJMMJPO

/JM

XIFSFCZ
JU
QBZT
YFE
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UP
UIF
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64
-POEPO
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DMBTTJFT

these interest rate swaps as cash flow hedges. The interest rate swaps will mature over
the next two to four years.

t
4FOTJUJWJUZ
BOBMZTJT

*G
JOUFSFTU
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PO
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XPVME

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QFS
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CBTJT
CZ
UIF
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TIPXO
CFMPX

The Group
2011 2010
US$000 US$000

'JYFE
EFQPTJUT 55 191
'MPBUJOH
JOUFSFTU
SBUF
CBOL
CPSSPXJOH (163)
Interest rate swaps 75
(33) 191

*G
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PO
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B
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IFME
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JU
XPVME

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UIF
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PO
B
QFS
BOOVN
CBTJT
CZ
UIF
BNPVOUT

TIPXO
CFMPX

The Group
2011 2010
US$000 US$000

'JYFE
EFQPTJUT (37) (134)

'MPBUJOH
JOUFSFTU
SBUF
CBOL
CPSSPXJOH 94
Interest rate swaps (46)
11 (134)

.BOBHFNFOU
JT
PG
UIF
WJFX
UIBU
UIF
BCPWF
TFOTJUJWJUZ
BOBMZTJT
NBZ
OPU
CF

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PG
UIF
JOIFSFOU
JOUFSFTU
SBUF
SJTL
BT
ZFBSFOE
FYQPTVSF
NBZ
OPU

reflect the actual exposure and circumstances during the year.

Annual Repo r t 2010/2011 83

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

30. FINANCIAL RISK MANAGEMENT (continued)

(d) Market risk (continued)

Equity security price risk

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64 

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64 

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not reflect the actual exposure and circumstances during the year.

31. ESTIMATION OF FAIR VALUES

(a) Fair value hierarchy

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prices at the reporting date without any deduction for transaction costs.

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84 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
31. ESTIMATION OF FAIR VALUES (continued)

(c) Derivatives

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measurement date.

The fair value of the interest rate swaps falls under Level 2.

(d) Other nancial assets and liabilities

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are repriced every 1 to 3 months.

32. SIGNIFICANT RELATED PARTY TRANSACTIONS

Key management personnel compensation

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The Group
2011 2010
US$000 US$000

Directors of the Company

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1,530 927

Annual Repo r t 2010/2011 85

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

32. SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)

Key management personnel compensation (continued)

The Group
2011 2010
US$000 US$000

Senior management team

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Total 2,179 1,553

Other signicant related party transactions

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statements, this item includes the following:

Management and
<----------service fees----------> Rental
Received and Paid and Paid and
receivable payable payable
US$000 US$000 US$000

2011
Associated company 2

Related parties 84 (92) (148)

2010
Associated company 2

Related parties 81 (79) (170)

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common with the Company.

86 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
33. COMMITMENTS

(a) Operating leases

As lessor

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agreements for vessels and investment properties are as follows:

The Group
2011 2010
US$000 US$000

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ZFBS 19,874 4,434

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ZFBST 67,751 1,710
More than 5 years 139,497
227,122 6,144

The Group leases out its vessels under operating leases. The leases typically run for initial
periods of three to fifteen years.

(b) Security notes

As at 31 March 2011, the Group has committed to purchase fixed rate security notes
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64 

/JM


34. CONTINGENT LIABILITIES

(a) The Group

(i) The Company has given a counter indemnity of US$1,200,000 (2010: US$1,200,000)
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letter of guarantee in respect of an uncommitted short-term loan facility granted
to the associated company. At 31 March 2011, the Companys share of the facility
utilised was US$348,000 (2010: US$444,000).

In addition, the counter indemnity given to a shareholder of the associated

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long-term loan granted to the associated company, of approximately US$383,000
as at 31 March 2010 was discharged during the year when the long-term loan was
fully repaid.

Annual Repo r t 2010/2011 87

NOTES TO THE FINANCIAL STATEMENTS
for the nancial year ended 31 March 2011

34. CONTINGENT LIABILITIES (continued)

(a) The Group (continued)

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the charterers protection and indemnity insurance fails, the associated company
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companys or the Groups financial statements.

(b) The Company

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US$32,656,000.

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a third party with respect to a charter party agreement for the charter of a vessel
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35. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED

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of these is expected to have a significant impact on the financial statements of the Group.

88 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
SHAREHOLDING STATISTICS
as at 17 June 2011

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Class of Shares : 0SEJOBSZ
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Treasury Shares : /JM
Voting rights : 0OF
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BREAKDOWN OF SHAREHOLDINGS BY RANGE

No. of % of No. of % of Issued

Size of Shareholdings Shareholders Shareholders Shares Share Capital

1 - 999 148 1.53 58,641 0.01

1,000 - 10,000 5,930 61.52 31,991,394 7.34
10,001 - 1,000,000 3,542 36.75 161,541,806 37.05
  
BOE
BCPWF 19 0.20 242,424,750 55.60
TOTAL 9,639 100.00 436,016,591 100.00

TWENTY LARGEST SHAREHOLDERS

% of Issued
No. Name of Shareholder No. of Shares Share Capital

1 08
$)*0
,*"5
153,532,500 35.21

2 6/*5&%
07&34&"4
#"/,
/0.*/&&4
15&
-5% 13,354,500 3.06
3 5"/
(*.
5&&
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13,200,000 3.03
4 %#4
/0.*/&&4
15&
-5%
11,970,000 2.75
5 $)6
4*&8
)00/(
$)3*4501)&3
11,933,000 2.74
6 )5
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8,000,000 1.84
7 )"*
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6,200,000 1.42
8 0$#$
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5,617,000 1.29
9 $*5*#"/,
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4,192,250 0.96
10 %"**$)*
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,"*4)" 2,500,000 0.57
11 1)*--*1
4&$63*5*&4
15&
-5%
1,769,500 0.41
12 ,*.
&/(
4&$63*5*&4
15&
-5%
1,761,000 0.40
13 08
8&*26"/
1,365,000 0.31
14 80/(
,*.
400/
1,330,000 0.31
15 ,)0/(
-"*
$)&0/(
1,286,000 0.29
16 )0/(
-&0/(
'*/"/$&
/0.*/&&4
15&
-5% 1,178,000 0.27
17 5"/
:0/(
$)*"/(
03
5"/
)6*
-*"/(
1,119,000 0.26
18 "/(
+8&&
)&3/(
1,102,000 0.25
19 -*.
4*&8
'&/(
1,015,000 0.23
20 (00*
4&0/(
$)/&)
1,000,000 0.23
21 5"/(
)06*
.*"/(
1,000,000 0.23
TOTAL 244,424,750 56.06

Annual Repo r t 2010/2011 89

SHAREHOLDING STATISTICS
as at 17 June 2011

SUBSTANTIAL SHAREHOLDER

Direct Interest Deemed Interest Total

% of Issued % of Issued % of Issued
No. of Share No. of Share No. of Share
Shares Capital Shares Capital Shares Capital

0X
$IJP
,JBU 153,532,500 35.21 7,340,000* 1.68 160,872,500 36.89


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PUBLIC FLOAT

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complied with.

90 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
NOTICE OF ANNUAL GENERAL MEETING AND BOOKS CLOSURE
Singapore Shipping Corporation Limited
Company Registration No. 198801332G (Incorporated in the Republic of Singapore)

NOTICE IS HEREBY GIVEN that the 23rd Annual General Meeting of Singapore Shipping Corporation
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ORDINARY BUSINESS

Resolution 1. 5P
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Resolution 2. To declare a final dividend (one-tier tax exempt) of Singapore one cent (S$0.01)
per ordinary share for the financial year ended 31 March 2011.

Resolution 3. 5P
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ended 31 March 2011.

Resolution 4. 5P
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PG

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Note: Mr Ow Cheo Guan will, upon his re-election as Director, remain as member
of the Executive Committee.

Resolution 5. 5P
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Resolution 6. To re-elect Mr Tan Guong Ching, who is retiring in accordance with Article 91 of
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Note: Mr Tan Guong Ching will, upon his re-election as Director, remain as
Chairman of the Audit Committee, and member of the Remuneration and
Nominating Committees. He is considered independent for the purposes of
Rule 704(8) of the Listing Manual of the Singapore Exchange Securities Trading
Limited (SGX-ST).

Resolution 7. 5P
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Note: Lt-Gen (Retd) Ng Jui Ping will, upon his re-election as Director, remain
as Chairman of the Nominating Committee, and member of the Audit and
Remuneration Committees. He is considered independent for the purposes of
Rule 704(8) of the Listing Manual of the SGX-ST.

Resolution 8. 5P
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Annual Repo r t 2010/2011 91

NOTICE OF ANNUAL GENERAL MEETING AND BOOKS CLOSURE
Singapore Shipping Corporation Limited
Company Registration No. 198801332G (Incorporated in the Republic of Singapore)

SPECIAL BUSINESS

To consider and, if thought fit, to pass, with or without modifications, the following resolutions as
ordinary resolutions:

Resolution 9. 5IBU
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conditions and for such purposes and to such persons as the
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provided that:

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Instruments made or granted pursuant to this Resolution), does not
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92 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
 JJJ

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conclusion of the next Annual General Meeting of the Company or
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Note: This Resolution, if passed, authorises the Directors to issue shares in the
capital of the Company and to make or grant instruments (such as warrants or
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instruments, up to an amount not exceeding in total 50% of the issued shares
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capital of the Company from time to time.

OTHER BUSINESS

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Annual Repo r t 2010/2011 93

NOTICE OF ANNUAL GENERAL MEETING AND BOOKS CLOSURE
Singapore Shipping Corporation Limited
Company Registration No. 198801332G (Incorporated in the Republic of Singapore)

NOTICE IS ALSO HEREBY GIVEN
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94 S in ga p o r e S h ip p i ng Cor p or a ti on L i mi te d
PROXY FORM *.1035"/5
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Important: Please read notes on the overleaf.

2nd fold here

Affix
1PTUBHF
4UBNQ

The Company Secretary

Singapore Shipping Corporation Limited
200 Cantonment Road
#09-01 Southpoint
Singapore 089763

1st fold here

NOTES


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defined in Section 130A of the Companies Act, Chapter 50), you to act as its representative at the meeting, in accordance with
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the Company at 200 Cantonment Road, #09-01, Southpoint, Limited to the Company.
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appointed for the meeting.


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under the hand of the appointor or of his attorney duly authorised
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its common seal or under the hand of an officer or attorney duly
authorised.
200 Cantonment Road, #09-01 Southpoint, Singapore 089763
Tel: (65) 6220 4906 Fax: (65) 6236 6252
www.singaporeshipping.com.sg
Company Registration No. 198801332G