KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
ANNUAL REPORT 2014
83
NOTES
TO THE FINANCIAL STATEMENTS
14
DEFERRED TAX LIABILITIES (Cont’d)
As at the reporting date, no deferred tax assets have been recognised in respect of the following
temporary differences:
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Unutilised tax losses
6,152
6,152
–
–
Deductible temporary differences
567
567
–
–
6,719
6,719
–
–
The unutilised tax losses and unabsorbed capital allowances are available for set-off against future
taxable profits subject to compliance with the Singapore Income Tax Act Chapter 134. The deductible
temporary differences do not expire under current tax legislation. Deferred tax assets have not
been recognised in respect of these items because it is not probable that future taxable profit will be
available against which the Group can utilise the benefits.
15
TRADE AND OTHER PAYABLES
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Trade payables
9,478
8,162
113
–
Accrued operating expenses
5,561
5,203
371
140
Advance billings
150
2,283
–
–
Deposits from customers
2,603
1,434
–
–
Dividends payable
–
32
–
–
Other payables
22
35
–
102
17,814
17,149
484
242
The Group’s exposure to currency and liquidity risks related to trade and other payables is disclosed
in note 16.
Provision for performance guarantee
In 2007, KHMO issued a performance guarantee for an Australian project undertaken by T-D Joint
Venture Pty Ltd (“TDJV”), in which a related party is a joint venture partner. The maximum potential
amount of the performance guarantee is approximately $7 million. The performance guarantee was
called by the customer in 2009. However, based on independent legal advice and subsequent
developments of the project, the directors believe that it is not probable that there will be any outflow
of cash required to settle the performance guarantee. Accordingly, no provision for the performance
guarantee has been made in the financial statements of the Group.
