Ar 2006

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FINANCIALS
DIRECTORS’ REPORT STATEMENT BY DIRECTORS
AUDITORS’ REPORT BALANCE SHEETS
PROFIT AND LOSS ACCOUNTS STATEMENTS OF CHANGES IN EQUITY
CONSOLIDATED CASH FLOWS STATEMENT NOTES TO THE FINANCIAL STATEMENTS
EZRA HOLDINGS LIMITED
ANNUAL REPORT 2006
3. Fixed assets (cont’d)
MOTOR
VEHICLES COMPUTERS TOTAL
COMPANY $’000 $’000 $’000
COST
At 1 September 2004 98 – 98
Additions – 54 54
Disposals (98) – (98)
At 31 August 2005 and 1 September 2005 – 54 54

Additions – 43 43
At 31 August 2006 – 97 97
ACCUMULATED DEPRECIATION
At 1 September 2004 98 – 98
Disposals (98) – (98)
At 31 August 2005 and 1 September 2005 – – –

Charge for the financial year – 28 28
At 31 August 2006 – 28 28
NET BOOK VALUE

At 31 August 2006 – 69 69
At 31 August 2005 – 54 54
(a) Vessels under construction are not depreciated until such time they are completed and are ready for their
intended use. Included in the cost of vessels under construction were borrowing costs arising from borrowings
used to finance their construction amounting to approximately $1,262,000 (2005: $230,000). The capitalisation
rates varied from 4.31% to 8.75% (2005: 3.23% to 5.10%) representing the borrowing costs to finance the
vessels under construction.
(b) The vessels under construction and vessels are pledged in connection with the bills payable and term loan
facilities granted by financial institutions (Notes 19 and 22).
(c) The leasehold building is pledged in connection with bills payable and term loan facilities granted by a financial
institution (Notes 19 and 22).
(d) The Group derecognised certain components of one vessel in the prior year, the cost of which was compensated
by the third party shipbuilder, amounting to $3,923,000.
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3. Fixed assets (cont’d)
(e) In accordance with FRS 105, Non-current Assets Held for Sale and Discontinued Operations, the Group:
- reclassified the vessels under construction, vessels and assets on board the vessels identified for disposal from
fixed assets to assets held for sale from the respective dates of announcement on the proposed transactions.
The reclassification amounted to $73,787,000 (2005 : $96,432,000); and
- ceased depreciation from the respective dates of announcement on the proposed transactions. The impact of
not depreciating these vessels and assets on board the vessels was an increase in net profit of $151,000 (2005:
$1,425,000).
(f) Fixed assets purchased under finance leases stated at net book values were as follows:
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Motor vehicles 351 170 – –

Renovation – 88 – –
Computers – 23 – –
351 281 – –
(g) The Group’s major properties as at 31 August 2006 were as follows:
LOCATION GROSS FLOOR AREA TENURE USAGE
20 Ubi Crescent 836 sq m 60-year lease commencing Office

#01-02 Ubi Techpark from 5 July 1997
Singapore 408565
Thanh My Loi Precinct 97,069 sq m 35-year lease commencing Fabrication yard

District 2 from 5 December 1996
Ho Chi Minh City
Vietnam
_73
FINANCIALS
ANNUAL REPORT 2006
4. Intangible assets
NEGATIVE
GOODWILL ON GOODWILL ON LAND LEASE
CONSOLIDATION CONSOLIDATION RIGHTS TOTAL
GROUP $’000 $’000 $’000 $’000
COST
At 1 September 2004, as previously reported (165) 130 – (35)

Effect of adoption of FRS 103 165 (26) – 139
At 1 September 2004, as restated and at 31 August 2005 – 104 – 104

Acquisition of subsidiaries – 1,012 3,483 4,495
At 31 August 2006 – 1,116 3,483 4,599
ACCUMULATED AMORTISATION
At 1 September 2004, as previously reported (32) 26 – (6)

Effect of adoption of FRS 103 32 (26) – 6
At 1 September 2004, as restated and at 31 August 2005 – – – –

Amortisation for the financial year – – (112) (112)
At 31 August 2006 – – (112) (112)
CARRYING AMOUNT
At 31 August 2006 – 1,116 3,371 4,487
At 31 August 2005 – 104 – 104
Impairment testing of goodwill

Goodwill acquired through business combination is allocated to the Group’s cash generating units (“CGU”). The
CGU of the new acquisition during the year, Saigon Shipyard Limited, is the entity itself. The recoverable amount of
a CGU is determined based on discounted cash flow projections. These calculations are based on financial budgets
approved by management covering a one-year period. Cash flows beyond the one year period are extrapolated
using an estimated growth rate of 5%. Management determined the estimated growth rates based on past
performance and its expectation of recent market developments. The growth rate does not exceed the long term
average growth rate for the business activities. Actual results may differ from management’s estimated growth rate
as operating environment changes. The pre-tax discount rate applied to the cash flow projections is 12%.
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5. Investments in subsidiaries
GROUP
2006 2005
$’000 $’000
Unquoted equity shares, at cost 23,615 23,615
Details of the subsidiaries as at 31 August were as follows:
COUNTRY OF PERCENTAGE
INCORPORATION OF EFFECTIVE
AND PLACE OF INTEREST HELD COST OF
NAME OF COMPANY PRINCIPAL ACTIVITIES BUSINESS BY THE GROUP INVESTMENT
2006 2005 2006 2005
% % $’000 $’000
HELD BY THE COMPANY
Lewek Shipping Ship owner and provision Singapore 100 100 3,504 3,504
Pte Ltd* of ship chartering services
Lewek Ivory Ship owner and provision Singapore 100 100 4,000 4,000
Shipping Pte Ltd* of ship chartering services
Lewek Ebony Ship owner and provision Singapore 100 100 4,000 4,000
Lewek Emerald Ship owner and provision Singapore 100 100 7,000 7,000
Emas Offshore Shipping agent and provision Singapore 100 100 111 111
Pte Ltd* of ship chartering, ship management
services and engineering works
Ezra Marine Provision of ship chartering and Singapore 100 100 5,000 5,000
Services Pte Ltd* management services, supply of
marine and gas oil, and ship
building and engineering works
Lewek Conqueror Ship owner and provision British Virgin Islands 100 100 –# –#
(BVI) Limited* of ship chartering services
Emas Offshore Investment holding and Singapore 100 100 –# –#

Construction and ship management services
Production Pte Ltd*
Emas Offshore Ship management services Singapore 100 100 –# –#

Services Pte Ltd@
Emas Offshore Investment holding Malaysia 100 100 –# –#

(M) Sdn Bhd**
Ezra Energy Petroleum, mining and prospecting services Singapore 100 100 –# –#
Services Pte Ltd@
Asian Drilling Petroleum, mining and prospecting services Singapore 100 100 –# –#
Services Pte Ltd@
HCM Logistics Limited Investment holding British Virgin Islands 100 – –# –

(formerly known as Strong
Union Limited)@
23,615 23,615
_75
FINANCIALS
ANNUAL REPORT 2006
5. Investments in subsidiaries (cont’d)

INCORPORATION OF EFFECTIVE
AND PLACE OF INTEREST HELD
NAME OF COMPANY PRINCIPAL ACTIVITIES BUSINESS BY THE GROUP
2006 2005
% %
HELD BY THE SUBSIDIARIES
Bayu Emas Ship brokerage and Malaysia 100 100

Maritime Sdn Bhd^ agency services
Asian Technical Investment holding and Isle of Man 100 –

Maritime Services Ltd@ management services
Saigon Shipyard Provision for engineering Vietnam 100 –

Limited*** services and repair of vessel
Note:
# : Less than $1,000
* : Audited by Ernst & Young, Singapore
** : Audited by Ernst & Young, Malaysia
*** : Audited by Ernst & Young, Vietnam
^ : Audited by Y.L. Chee & Co., Chartered Accountants (Malaysia)
@ : Not required to be audited under the laws of the country of incorporation.
During the financial year, the Company acquired the following wholly-owned subsidiaries:
(a) On 4 October 2005, the Company acquired 100% equity interest in HCM Logistics Limited (formerly known as
Strong Union Limited), incorporated in British Virgin Islands for a cash consideration of US$1.
(b) On 1 November 2005, HCM Logistics Limited acquired 100% equity interest in Asian Technical Maritime
Services
Services Limited,
Limited, incorporated
incorporated in Isle of Man for a total cash consideration of US$5.5
US$5.5 million.
million. Asian
Asian Technical
Technical
Maritime Services Limited has a wholly-owned subsidiary, Saigon Shipyard
Shipyard Limited,
Limited, incorporated
incorporated inin Vietnam
Vietnam in
in
accordance
accordance with
with Investment
Investment License
License No.1764/GP issued by the Ministry of Planning and Investment
Investment on on 55
December 1996.
December 1996.
From the respective dates of acquisition, HCM Logistics Limited and its subsidiaries has contributed $514,000 to the
net profit of the Group. If the combination had taken place at the beginning of the financial year, the profit for the
Group would have been $61,912,000 and revenue for the Group would have been $111,899,000.
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6. Investments in associated companies
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Unquoted equity shares, at cost
- ordinary shares 14,935 –# – –
- conditional convertible cumulative
redeemable preference shares 22,487 14,017 – –
Share of post-acquisition reserves 716 – – –
38,138 14,017 – –
Details of the associated companies as at 31 August were as follows:
INCORPORATION OF EFFECTIVE COST OF
AND PLACE OF INTEREST HELD INVESTMENT
NAME OF COMPANY PRINCIPAL ACTIVITIES BUSINESS BY THE GROUP BY GROUP
2006 2005 2006 2005
% % $’000 $’000
HELD BY THE SUBSIDIARIES
Intan Offshore Sdn Bhd * Ship owning and provision Malaysia 49 49 23,022 14,017
of ship chartering services
Uni-Bulk Holdings Pte Ltd ** Investment holding Singapore 30 – 14,400 –
37,422 14,017
Note:
* : Audited by Ernst & Young, Malaysia
** : Audited by Deloitte & Touche, Singapore
# : Less than $1,000
Intan Offshore Sdn Bhd (“Intan Offshore”)

Part of the investment in Intan Offshore is in the form of Conditional Convertible Cumulative Redeemable Preference
Shares (“CCCRPS”). During the previous financial year, CCCRPS were issued to Emas Offshore (M) Sdn Bhd
(“Holder”), a wholly-owned subsidiary of the Group, as part consideration upon completion of the sale of 3 vessels
by the Group to Intan Offshore.
During the current financial year, additional CCCRPS were issued to Emas Offshore (M) Sdn Bhd as part consider-
ation upon completion of the sale of an additional 3 vessels.
Part of the remaining cash consideration was received during the financial year. The portion of the unpaid cash
consideration is included in amounts due from associated companies as at the end of the financial year.
_77
FINANCIALS
ANNUAL REPORT 2006
6. Investments in associated companies (cont’d)

The CCCRPS has the following features:
(a) the right to fixed cumulative preferential dividend at the rate of 60% on the audited net profit of Intan Offshore or
such other percentage as may agreed between the parties;
(b) first preference on return of assets in the event of liquidation;
(c) may be redeemed at any time wholly or partly for the time being issued and outstanding at any time so long as,
such
such redemption
redemption is is on
on a pro-rata basis among the holders, by giving not less than one
one (1)
(1) year
year notice
notice in
in writing
writing of
of
thethe intention
intention from
from Intan
Intan Offshore
Offshore to to
thethe Holder;
Holder;
(d) may be redeemed at its nominal value of RM1 per preference share;
(e) may be converted into ordinary shares of RM1 each at the ratio of 1 ordinary share for every 1 CCCRPS held by
the Holder upon
upon occurrence
occurrence ofof transfer
transfer of
of shares
shares and
and sale
sale of
of Default
Default shares
shares as
as defined
defined in
in the
the shareholders’
shareholders’
agreement;
agreement; and
and
(f) entitled to one voting right for each CCCRPS held at general meetings of Intan Offshore in respect of a
proposed winding-up of Intan Offshore or variation or amendment of the rights attached to the CCCRPS.
Uni-Bulk Holdings Pte Ltd (“Uni-Bulk”)
On 28 December 2005, HCM Logistics Limited (“HCM Logistics”) acquired 30% equity interest in Uni-Bulk from
Eastern Bulk Limited (“Vendor”) for a total consideration of $14,400,000. The purchase consideration was satisfied
via $960,000 in cash and issuance of 9,600,000 new ordinary shares in the share capital of the Company (Note 24).
As at 31 August 2006, management has provisionally assessed the fair value of the associated company in
accordance with FRS 103, Business Combinations. Accordingly, provisional goodwill of $8,578,000 has been
included in the carrying amount of investments in associated companies.
The Vendor has provided profit guarantees of $12,000,000 and $20,000,000 in respect of the audited consolidated
profit before taxation and minority interest (but excluding and disregarding extraordinary items) of the Uni-Bulk and
its subsidiaries for the financial years ending 31 December 2005 and 31 December 2006 respectively. Where the
profit guarantees are not met, the terms of the acquisition provides that the Vendor will give additional equity interest
in Uni-Bulk to the Group, up to a total equity interest of 50% (including the 30% equity interest originally acquired).
Any remaining shortfall arising from the profit guarantees will be satisfied in cash or additional shares.
During the financial year and subsequent to acquisition of the associated company, 2 vessels belonging to Uni-Bulk
with a total net book value of US$4,445,000 as at 31 August 2006 met with accidents. As the vessels were fully
insured, claims were filed with the insurers. The insurance claims have not been finalised as at 31 August 2006. As
the management of the associated company are of the view that the insurance claims are likely to be successful, no
provision for impairment has been made in respect of the Group’s investment in the associated company.
_78
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6. Investments in associated companies (cont’d)
The summarised financial information of associated companies were as follows:
GROUP
2006 2005
$’000 $’000
Total assets 222,298 74,494
Total liabilities 173,564 60,371
Revenue 37,270 –
Net profit/(loss) after tax 3,947 (25)
7. Investments in joint venture companies

GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Unquoted equity shares, at cost 4,134 1,095 4,134 1,095
Share of post-acquisition reserves 2,700 405 – –
Shareholder loans 7,432 – 7,432 –
14,266 1,500 11,566 1,095
The shareholder loans to joint venture companies are unsecured, bear interest at 8% per annum and have no fixed
terms of repayment. The loans are not expected to be repaid within twelve months from the end of the financial
year.
_79
FINANCIALS
ANNUAL REPORT 2006
7. Investments in joint venture companies (cont’d)

Details of the joint venture companies as at 31 August were as follows:
INCORPORATION OF EFFECTIVE COST OF
AND PLACE OF INTEREST HELD INVESTMENT
NAME OF COMPANY PRINCIPAL ACTIVITIES BUSINESS BY THE GROUP BY GROUP
2006 2005 2006 2005
% % $’000 $’000
S.E. Mariam Sdn Bhd * Ship owning and provision Malaysia 49 49 1,095 1,095
of ship chartering services
New Strong
Group Limited @ Investment holding and provision British Virgin Islands 50 – 2,910 –
for offshore rig services
United Oilfield
Services Pte Ltd # Provision for offshore rig services Singapore 50 – 50 –
Casadilla Group Pte Ltd # Rig owning and provision Singapore 50 – 79 –

for offshore rig services
4,134 1,095
Note:
* : Audited by Afrizan Tarmili Khairul Azhar, Chartered Accountants, Malaysia
@ : Not required to be audited under the laws of the country of incorporation
# : Newly incorporated, auditors not appointed yet
On 22 November 2005, the Company acquired 50% equity interest in New Strong Group Limited for US$1,250,000.
The subscription cost together with relevant incidental cost amounted to a total of US$1,750,000. Accordingly,
goodwill amounting to approximately $1,573,000 (equivalent to US$1,000,000) has been included in the carrying
value of investments in joint venture companies.
During the financial year, the Company incorporated the following joint venture companies:
(a) United Oilfield Services Pte Ltd, incorporated in Singapore on 1 April 2005; and
(b) Casadilla Group Pte Ltd, incorporated in Singapore on 31 May 2006.
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7. Investments in joint venture companies (cont’d)
The Group’s share of the assets, liabilities, revenue and expenses of the joint venture companies were as follows:
GROUP
2006 2005
$’000 $’000
Current assets 15,004 1,416
Non-current assets 20,439 3,449
Total assets 35,443 4,865

Current liabilities (12,492) (744)
Non-current liabilities (17,920) (2,584)
Net assets 5,031 1,537
Revenue 6,787 1,234

Expenditure (4,377) (800)
Profit before tax 2,410 434
During the financial year, 2 vessels belonging to S.E. Mariam Sdn Bhd with a total net book value of approximately
$4,719,000 as at 31 August 2006 met with accidents. As the vessels were fully insured, claims were filed with the
insurers. The insurance claims have not been finalised as at 31 August 2006. As the management of the joint
venture company are of the view that the insurance claims are likely to be successful, no provision for impairment
has been made in respect of the Group and the Company’s investment in the joint venture company.
8. Available-for-sale investments
GROUP AND COMPANY
2006 2005
$’000 $’000
(RESTATED)
Quoted available-for-sale
investments, at fair value 10,300 14,905
The available-for-sale investments are pledged to a financial institution for banking facilities granted to the Company
(Note 19).
_81
FINANCIALS
ANNUAL REPORT 2006
9. Assets held for sale

GROUP
2006 2005
$’000 $’000
Assets on board the vessels – 1,692
Vessels under construction 50,975 25,900
Vessels – 44,183
50,975 71,775
(a) During the year, vessels under construction, vessels and assets on board the vessels, amounting to $73,787,000
(2005: $96,432,000),
$73,787,000 were reclassified
(2005: $96,432,000), werefrom fixed assets
reclassified from to assets
fixed heldtofor
assets sale. held
assets Subsequent
for sale. to the reclassifica-
Subsequent to
tion,
the there were further
reclassification, thereadditions and additions
were further disposals and
of assets heldof
disposals forassets
sale. held for sale.
(b) Included in the cost of vessels under construction and the cost of vessels were borrowing costs arising from bor-
rowings used
borrowings to to
used finance
financetheir
theirconstruction
constructionamounting
amountingtotoapproximately
approximately$3,375,000
$3,375,000 (2005:
(2005: $1,219,000). The
capitalisationrates
capitalisation ratesvaried
variedfrom
from4.05%
4.05%toto7.26%
7.26%(2005:
(2005: 3.61%
3.61% to to 5.78%)
5.78%) representing
representing thethe borrowing
borrowing costs
costs to to
financethe
finance thevessels
vesselsunder
underconstruction
constructionand
andvessels.
vessels.
(c) The vessels under construction and vessels are pledged in connection with the bills payable and term loan
facilities granted by financial institutions (Notes 19 and 22).
_82
10
10. Inventories and work-in-progress
GROUP
2006 2005
$’000 $’000
Inventories 3,311 2,114
Work-in-progress 1,987 632
Total inventories at lower of

cost and net realisable value 5,298 2,746
Work-in-progress, at cost 5,764 2,583

Less: Progress billings (4,223) (2,228)
1,541 355
Represented by :
Work-in-progress less progress billings 1,987 632
Progress billings in excess
of work-in-progress (446) (277)
1,541 355
During the financial year, the Group wrote-down $38,000 (2005: $Nil) of inventories which are recognised as
expense in the profit and loss account.
_83
FINANCIALS
ANNUAL REPORT 2006
11. Trade receivables

GROUP
2006 2005
$’000 $’000
Trade receivables 41,049 38,147
Less: Allowance for doubtful debts (141) (174)
40,908 37,973
Analysis of allowance for doubtful debts:
GROUP
2006 2005
$’000 $’000
At beginning of financial year 174 144
Allowance for the financial year (Note 28) – 30
Written off (46) –
Translation difference 13 –
At end of financial year 141 174
Included in the Group’s trade receivables balances are:
(a) $32,703,000 (2005 : $34,070,000) denominated in United States dollars, and

(b) $6,076,000 (2005 : $3,277,000) denominated in Malaysia Ringgit
_84
10
12. Other receivables
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Receivable from a ship builder 8,851 5,761 – –
Other receivables 2,208 658 338 21
11,059 6,419 338 21
Receivable from a shipbuilder relates to sale of equipment to the shipbuilder for purpose of installation on vessels
under construction for the Group. The receivable from a shipbuilder has not been offset against the payable to a
shipbuilder as disclosed in Note 18 as there is no legal right to offset.
Included in the Group’s other receivables are $9,415,000 (2005 : $5,760,000) denominated in United States
dollars.
13. Other current assets

GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Deposits 4,349 1,107 – –
Prepayments 112 25 – –
4,461 1,132 – –
14. Non-trade balances due from/ (to) subsidiaries/

associated companies/a joint venture company/
related parties
These amounts are non-trade in nature, unsecured, interest-free and repayable in cash on demand.
_85
FINANCIALS
ANNUAL REPORT 2006
15. Fixed deposits

The fixed deposits of the Group and the Company amounting to $Nil (2005: $5,014,000) and $Nil (2005:
$5,003,000) respectively were pledged to financial institutions for banking facilities granted to certain subsidiaries.
The fixed deposits are made for varying periods of between one day and three months depending on the cash
requirement of the Group and the Company and earn an effective interest rates ranging from 0% to 5.06% (2005 :
1.80% to 3.10%) per annum.
Included in the Group’s fixed deposits are $1,574,000 (2005 : $5,003,000) denominated in United States dollars.
16. Cash and bank balances

Certain operating bank accounts of the subsidiaries with balances amounting to $507,000 (2005: $3,151,000) are
pledged to financial institutions for banking facilities granted to the Group. Except for an amount of $79,000 (2005:
$84,000), there is no restriction on the use of the remaining bank balances.
Included in the Group’s cash and bank balances are:
(a) $6,370,000 (2005 : $12,463,000) denominated in United States dollars, and

(b) $784,000 (2005 : $10,000) denominated in Malaysia Ringgit.
17. Trade payables

Trade payables are non-interest bearing and are normally settled on 30 to 90 day terms.
As at 31 August 2006, the following amounts are included in trade payables for the Group:
(a) $1,985,000 (2005 : $2,094,000) denominated in United States dollars,

(b) $1,906,000 (2005 : $2,000) denominated in Great Britain Pounds, and
(c) $380,000 (2005 : $Nil) denominated in Norwegian Kroner.
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18. Other payables and accruals
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Other creditors 13,424 8,750 1,408 34
Payable to a shipbuilder 22,077 8,491 – –
Advance billing made to customers 9,694 754 – –
Accrued operating expenses 5,667 2,638 807 645
Amounts due to directors 6,377 1,686 6,377 1,686
Premium payable 523 – – –
57,762 22,319 8,592 2,365
The amounts due to directors are non-trade in nature, unsecured, interest-free and repayable on demand.
As at 31 August 2006, the following amounts are included in other payables for the Group:

(b) $10,123,000 (2005 : $3,368,000) denominated in Euro, and
(c) $11,347,000 (2005 : $365,000) denominated in Norwegian Kroner.
19. Bills payable to banks

GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Bills payable
- secured 19,637 22,389 17,737 5,560
- unsecured 19,765 27,476 6,955 6,732
39,402 49,865 24,692 12,292
As at 31 August 2006, the following amounts are included in bills payable for the Group:

(b) $Nil (2005 : $1,588,000) denominated in Euros, and
(c) $1,013,000 (2005 : $2,577,000) denominated in Norwegian Kroner.
Bills payable of the Company are secured by a legal charge over the marketable securities of the Company and a
2nd legal mortgage in the name of a subsidiary, over an accommodation crane barge and all the equipment and
fixtures added on it and with assignment of insurance in favour of the financial institution. The bill payables bear
interest at 1.00% to 2.25% (2005: 2%) per annum above the bank’s prevailing cost of funds (“COF”), Prime Rate or
Singapore Inter Bank Offer Rate (“SIBOR”) of 2.22% to 5.48% (2005: 2.21% to 4.06%) per annum.
_87
FINANCIALS
ANNUAL REPORT 2006
19. Bills payable to banks (cont’d)

Bills payable of the subsidiaries are secured by:
(a) a first fixed and floating debenture on a subsidiary’s assets and property, both present and future, including
goodwill
goodwill andand uncalled
uncalled capital;
capital;
(b) legal mortgage over the vessels under financing;
(c) a first legal mortgage over the Group’s leasehold property;
(d) assignment of charter income from the mortgaged vessels;
(e) assignment of vessels’ insurances and charter contracts;
(f) legal charge over all monies held in the operating account of vessels, which reside with certain subsidiaries;
(g) corporate guarantees from the Company and certain subsidiaries; and
(h) fixed deposits of the Company and subsidiary amounting to approximately $Nil (2005: $5,003,000) pledged to
a certain financial institution.
Bills payable of the subsidiaries bear interest ranging from 0% to 2% per annum above the bank’s COF, Prime Rate
or SIBOR of 2.55% to 8.75% (2005: 1.46% to 3.78%) per annum.
During the financial year, the effective interest rates of the bills payable of the Group ranged from 4.22% to 8.75%
(2005: 3.31% to 6.00%) per annum.
20. Deferred income

GROUP
2006 2005
$’000 $’000
Current 577 271
Non-current 12,662 6,117
13,239 6,388
The deferred income refers to the Group’s share of the unrealised profit resulting from the sale of vessels to
associated companies. The deferred income will be amortised over the remaining useful lives of the vessels and
taken against the share of results of associated companies in the consolidated profit and loss account.
_88
10
21. Lease obligations
GROUP
PRESENT PRESENT
MINIMUM VALUE OF MINIMUM VALUE OF
PAYMENTS PAYMENTS PAYMENTS PAYMENTS
2006 2006 2005 2005
$’000 $’000 $’000 $’000
Not later than one year 96 87 106 102
Later than one year but
not later than five years 214 175 46 43
Total minimum lease payments 310 262 152 145

Less: Amounts representing
finance charges (48) – (7) –
Present value of minimum

lease payments 262 262 145 145
Lease terms are for 5 to 7 years with options to purchase at the end of the lease term. Lease terms do not
contain restrictions concerning dividends, additional debt or further leasing.
Lease obligations bear interest at flat rates ranging from 2.00% to 3.30% (2005: 2.00% to 4.25%) per annum. The
effective interest rates ranged from 3.82% to 6.10% (2005: 3.82% to 7.96%) per annum.
22. Bank term loans

GROUP
2006 2005
$’000 $’000
Due within 1 year 23,919 84,362
Due within 2 to 5 years 35,785 41,990

Due after 5 years 24,565 17,937
60,350 59,927
84,269 144,289
_89
FINANCIALS
ANNUAL REPORT 2006
22. Bank term loans (cont’d)

The balance comprises: GROUP
2006 2005
$’000 $’000
Secured
(a) Term loan with principal of US$8,100,000, bears interest at 1.6% (2005:
1.6%) per
1.6%) perannum
annumaboveabove London
London InterInter
Bank Bank
OfferOffer
Rate Rate (“LIBOR”)
(“LIBOR”) of of
3.79% toto5.40%
3.79% 5.40%(2005:
(2005: 2.29%
2.29% to 3.79%)
to 3.79%) per annum.
per annum. The loan Theis loan is
repayable inin32
repayable 32quarterly
quarterlyinstalments
instalments commencing
commencing 3 calendar
3 calendar months
months
after the
after thedate
dateofofdrawdown
drawdown onon
13 13 February
February 2004.
2004. This This
term term
loan isloan is
secured by
secured by way
wayofofaafirst
firstlegal
legalmortgage
mortgageon onthe
thevessel,
vessel,pledged
pledgedoveroverthe
the
earnings account,
earnings account,assignment
assignmentof of vessel
vessel insurances,
insurances, earnings,
earnings, charter
charter
and requisition
and requisitioncompensation
compensation andand corporate
corporate guarantees
guarantees from thefrom the
Company.
Company. 8,363 10,729
(b) Term loan with principal of US$7,500,000 bears interest at 2.25%

(2005: 2.25%)
(2005: 2.25%)per perannum
annum above
above LIBORLIBOR of 3.61%
of 3.61% to 5.38%
to 5.38% (2005: (2005:
1.53% toto3.80%)
1.53% 3.80%)perper annum.
annum. The The
loan loan is repayable
is repayable in 63 monthly
in 63 monthly
instalments ofofUS$59,524
instalments US$59,524 andand a instalment
a final final instalment of US$3,750,000
of US$3,750,000
commencing on
commencing on 20
20 July
July 2005.
2005. This
This term loan is secured by way of a first
legallegal
first mortgage
mortgageon the vessel
on the under
vessel financing,
under assignment
financing, of shipbuilding
assignment of
contract, assignment
shipbuilding of charter
contract, assignment income
of charter and and
income charter
chartercontracts,
assignment
contracts, of vessel insurances,
assignment charge over
of vessel insurances, all monies
charge over held in operating
all monies held
inaccount
operatingof the vesselofand
account thecorporate
vessel andguarantee
corporatefrom the Company.
guarantee from the 10,486 12,422
Company.
(c) The term loan with principal of US$20,250,000 bears interest at 1.685%
(2005:
(2005: 1.685%)
1.685%) per per
annum annum
over over
LIBORLIBOR of 3.565%
of 3.565% to 5.065% to 5.065%
(2005: (2005:
1.575% toto3.565%)
1.575% 3.565%)per perannum.
annum.The Theloanloan is repayable
is repayable overover 27 equal
27 equal
quarterly instalments
quarterly instalmentsofof US$625,000
US$625,000 eacheach
and and
a finala instalment
final instalment
of of
US$3,375,000. The
US$3,375,000. Therepayment
repaymentofoffirst
firstprincipal
principalinstalment
instalment commences
commences
onon 12
12 October
October 2004.
2004. ThisThis term loan is secured by way of legal mortgage
on the vessel
mortgage andvessel
on the all equipment and fixture and
and all equipment added on it,added
fixture assignment
on it, of the
vessel’s insurance,
assignment revenue,
of the vessel’s contract
insurance, proceeds,
revenue, charter
contract income and
proceeds,
contract,
charter leaseand
income agreements
contract, and
leaseany other cash
agreements andflow
anyinotherrespect
cashofflow
the
invessel,
respectfixed andvessel,
of the floating charge
fixed over allcharge
and floating moniesoverheld all in the operating
monies held in
account
the of the
operating vessel of
account andthecorporate
vessel and guarantees
corporatefrom the Company
guarantees from theand 23,988 29,873
certain subsidiaries.
Company and certain subsidiaries.
(d) Term loan with principal of US$4,680,000 (2005: US$3,500,000) bears

interest at
interest at 1.2%
1.2% to
to 1.6%
1.6% (2005: 1.6%) per annum above LIBOR of 3.56%
to 5.22%
3.56% (2005: (2005:
to 5.22% 3.56% 3.56%
to 3.60%) per annum.
to 3.60%) The loan
per annum. is repayable
The loan is over
23 equal quarterly
repayable instalments
over 23 equal of US$117,000
quarterly instalments ofeach and a finaleach
US$117,000 instalment
and
aoffinal
US$1,989,000.
instalment of The term loan isThe
US$1,989,000. secured by way
term loan of a first
is secured statutory
by way of a
mortgage
first statutoryover the vessel,
mortgage assignment
over the of vessel ofinsurances,
vessel, assignment vessel charter
income, charter
insurances, contract,
charter income,charge
charterover operating
contract, and
charge retention
over account
operating and
and unconditional
retention account andcorporate guarantee
unconditional from the
corporate Company.
guarantee from the 6,809 2,684
Company.
_90
10
GROUP
2006 2005
$’000 $’000
(e) Term loan
loanwith
withprincipal of $1,200,000
principal of $1,200,000 bears interest
bears at theatbank’s
interest prime prime
the bank’s
lending
lending rate
rate of
of6%
6%(2005:
(2005:6%)
6%)perperannum.
annum.The Theloan
loanis is
repayable
repayable in in
120120 equal
equal
monthlymonthly instalments
instalments of $10,000
of $10,000 commencing
commencing 3 September
3 September 2002. 2002.
This term loan
This term loan
is secured is secured
by way by legal
of a first way of a first legal
mortgage overmortgage
the terraceoveroffice
the factory at 20
terrace office factory
Ubi Crescent, #01-02at 20
UbiUbi Crescent,Singapore
Techpark, #01-02 Ubi Techpark,
408565 and a second legal
Singapore
mortgage 408565 and of
on a vessel a second legal mortgage
a subsidiary on a vessel
and unconditional of a
corporate guarantees
subsidiary and unconditional
from the Company and certaincorporate guarantees from the Company
subsidiaries. 730 850
and certain subsidiaries.
(f) Revolving
Revolvingshort
shortterm
termloan with
loan principal
with of US$8,250,000
principal of US$8,250,000bearsbears
interest
interest at
at 1.00%
1.00% (2005:Nil)
(2005: Nil)per
perannum
annumabove
aboveLIBOR
LIBORofof5.47%
5.47% to
to 5.51%
5.51% (2005: Nil) per
Nil) per annum.
annum. The loanThe
hasloan has
been been
fully fullyinrepaid
repaid in October
October 2006 via2006 via by another
refinancing
refinancing by term
post-delivery another loanpost-delivery term loan of
of US$11,000,000. US$11,000,000.
This loan was securedThis by legal
loan was secured
assignment of thebyshipbuilding
legal assignment
contract of the
andshipbuilding contractand
deed of guarantee andindemnity
deed of guarantee
from the Company.and indemnity from the Company. 12,977 –
(g) Short term loan with principal

principal of
of up
up to
toUS$11,000,000
US$11,000,000bears bearsinterest
interestatat 1.20%
1.20%
(2005: (2005:
Nil) perNil) per annum
annum above LIBOR
above LIBOR of 5.33%of 5.33%
(2005: (2005:
Nil) perNil) per The loan is
annum.
annum.
repayableTheonloan is repayable
delivery on delivery
and is expected andrefinanced
to be is expectedviatoanother
be post-delivery
refinanced
term loan of viaUS$11,840,000.
another post-delivery termisloan
This loan of US$11,840,000.
secured This
by first priority mortgage-in-
loan is secured
escrow by first
of the vessel priority with
together mortgage-in-escrow
all equipment andoffixture
the vessel
installed, assignment
together with all equipment
of the shipbuilding contract and
and fixture
refundinstalled, assignment
in the event of the of the vessel,
of non-delivery
shipbuilding
assignment of contract and refund
all earnings, in thepolicies
insurance event of
and non-delivery of the
corporate guarantees from the
vessel,
Company.assignment of all earnings, insurance policies and corporate 5,186 –
guarantees from the Company.
(h) Term
Term loan
loan with principal
principal ofof$32,500,000
$32,500,000bore
boreinterest at at
interest Swap Offer
Swap Offer Rate of
Rate ofto2.01%
2.01% 2.55%to(2005:
2.55%1.89%
(2005: to
1.89% to 2.55%)
2.55%) per annum
per annum plus of 1.75%
plus margin
(2005: 1.75%) per annum and has been fully repaid during the financial year.
This term loan was secured by way of a first legal mortgage on the vessel under
financing, assignment of charter income and charter contracts and charge over
all monies held in operating account of the vessel. – 28,472
_91
FINANCIALS
ANNUAL REPORT 2006

GROUP
2006 2005
$’000 $’000
(i) Term
Termloanloanwith principal
principal of US$1,385,285 bore bore
interest at 2.125%
interest at 2.125%
(2005
(2005: :2.125%)
2.125%)perperannum
annumabove
abovethe theSIBOR
SIBORofof3.62%
3.62% (2005:
(2005: 1.80%
1.80% to
3.62%)
to 3.62%) per per
annum
annumand and
has been fully repaid
has been duringduring
fully repaid the year. This term
the year. This
loan
termwas
loansecured by way
was secured byofway
a legal mortgage
of a legal over the
mortgage overvessel underunder
the vessel
financing,
financing,assignment
assignmentof ofcharter
charter income
income of of the vessel, assignment of of the
the
vessel’s
vessel’sinsurance
insurancepolicy
policynaming
namingthe thebank
bankasasloss payee,
loss payee, legal charge
legal charge
over
overallallmonies
moniesheld
heldininoperating
operatingaccount
account of of
thethevessel
vesselandandcorporate
corporate
guarantee
guaranteefrom fromthe
theCompany.
Company. – 1,325
(j) Term
Termloan
loanwith
withprincipal
principalofofUS$2,700,000,
US$2,700,000,bore boreinterest
interestatat2.5%
2.5% (2005:
(2005:
2.5%) 2.5%) per annum
per annum aboveabove the bank’s
the bank’s SIBOR SIBOR of 3.75%
of 3.75% to 5.47%
to 5.47% (2005:
(2005:
1.77%1.77% to 3.92%)
to 3.92%) and has andbeen
has been fully repaid
fully repaid duringduring the year.
the year. This This
term
term
loan loan
was was secured
secured by way
by way of aoffirst
a first
legallegal mortgage
mortgage on the
on the vessel
vessel under
under financing,
financing, assignment
assignment of of charterincome
charter income andand charter
chartercontracts,
contracts,
assignment
assignmentofofvessel
vesselinsurances,
insurances, charge
charge over all monies
over heldheld
all monies in thein the
operating
operatingaccount
accountofofthe
thevessel
vesseland andunconditional
unconditionalcorporate
corporateguarantee
guarantee
from
fromthe
theCompany
Companyand andcertain
certainsubsidiaries.
subsidiaries. – 2,727
(k) Short-term loan

loan with
withprincipal
principalofofUS$5,250,000
US$5,250,000 bore interest
bore at 2%
interest at 2%
(2005:
(2005:2%)
2%)per
perannum
annumabove
abovethethebank’s
bank’sCOFCOFofof1.94%1.94%toto3.78%
3.78%(2005:
(2005:
1.25%
1.25%toto3.78%)
3.78%)per perannum
annumandandhashasbeen
beenfullyfullyrepaid
repaidduring
duringthe
theyear.
year.
This
Thisterm
termloan
loanwaswassecured
securedby by
wayway
of aoffirst legallegal
a first mortgage on the
mortgage on the
construction-in-progress
construction-in-progressand andequipment,
equipment, assignment
assignment of shipbuilding
of shipbuilding
contract
contractand
andrefunds in the
refunds in event of non-delivery
the event of non-deliveryof the vessel,
of the vessel,
assignment
assignmentofofinsurances
insurancesand andcorporate
corporateguarantee
guaranteefrom fromthetheCompany.
Company. – 2,870
(m) Term
(l) Term loan
loan with
with principal
principal of of US$10,400,000
US$10,400,000 bore bore interest
interest at
at 2.4%
2.4% 2005:
(2005:
2.4%)
2.4%)perperannum
annumabove aboveone onemonth
monthSIBOR
SIBORofof2.34% 2.34%toto2.59%
2.59%(2005:
(2005:
1.51%
1.51%toto2.50%)
2.50%)per perannum
annumand andhas
hasbeen
beenfully
fullyrepaid
repaidduring
duringthetheyear.
year.
This
Thisterm
termloanloanwaswassecured
secured byby
way of aoffirst
way legallegal
a first mortgage
mortgageon the
on the
vessel
vesselunder
underfinancing,
financing,assignment of vessel
assignment insurances,
of vessel charter charter
insurances, income,
charter
income, time and time and
charter charter
timecontract with a charterer,
charter contract pledges pledges
with a charterer, over
operating account
over operating of theofvessel
account and corporate
the vessel and corporate guarantees from from
guarantees the the
Company
Companyand andcertain
certainsubsidiaries.
subsidiaries.The Thetermterm loan
loancarried a covenant
carried a covenant
that
thatrequires
requiresall allcorporate
corporateguarantors
guarantors toto obtain
obtain written
written consent from the
financial
financialinstitution
institutionprior
priortotodeclaration
declarationofofdividends.
dividends. – 13,005
(m) Non-revolving short term loan with principal of US$10,000,000 bears

interest at 1.15% (2005: Nil) per annum above LIBOR of 5.48% (2005:
Nil) per annum. The loan is repayable in 3 unequal instalments
commencing 31 January 2007 and will be fully repaid by 30 April 2007.
This term loan is secured by corporate guarantees from the Company.
_92
10
GROUP
2006 2005
$’000 $’000
(m) Term
Term loan
loan with principal
principal ofof$32,500,000
$32,500,000boreboreinterest
interestat at
SwapSwap Offer
Offer
Rate of Rate
1.99% to 2.05% (2005: 2.00% to 2.33%) per annum plus
ofmargin
1.99%ofto1.75%
2.05%(2005:
(2005: 1.75%)
2.00% to per2.33%)
annumper annum
and plus margin
has been of
fully repaid
1.75%
during(2005: 1.75%)
the year. perterm
This annumloanand
washas been fully
secured by repaid
way ofduring
a firstthe
legal
year. This term
mortgage loan
on the was under
vessel secured by way of
financing, a first legalofmortgage
assignment on the
charter income
vessel under financing,
and charter contractsassignment
and chargeofovercharter
all income
monies andheldcharter
in operating
contracts
account of and
thecharge
vessel.over all monies held in operating account of the – 32,219
vessel.
(n) Term
Termloan
loanwith principal
principal of US$5,100,000 bore bore
interest at 2.25%
interest at 2.25%
(2005:
(2005:2.25%)
2.25%)per annum
per annum above
aboveSIBOR
SIBOR of 3.62% (2005:
of 3.62% 1.79%
(2005: to to
1.79%
3.88%)
3.88%)per
perannum
annumand andhas
hasbeen
beenfully
fullyrepaid
repaidduring
duringthe
theyear.
year. This
Thisterm
term
loan
loanwas
was secured
securedby way
by of
waystatutory mortgage
of statutory on the vessel,
mortgage on the vessel,
assignment
assignmentofofinsurance
insurancepolicies and
policies andcharter contract
charter andand
contract corporate
corporate – 7,113
guarantee
guaranteefrom
fromthetheCompany.
Company
Unsecured
(o) Non-revolving short term loan with principal of US$10,000,000 bears
interest at 1.15% (2005: Nil) per annum above LIBOR of 5.48% (2005:
Nil) per annum. The loan is repayable in 3 unequal instalments of
US$2,500,000, US$3,500,000, and US$4,000,000 commencing 31
January 2007 and will be fully repaid by 30 April 2007. This term loan is
secured by corporate guarantee from the Company. 15,730 -
84,269 144,289
23. Tax
Major components of tax expense for the financial years ended 31 August were:
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Current tax 1,817 701 71 93
Deferred tax – 47 – –
Withholding tax 51 1,062 – –
Under/(over) provision in
respect of prior years
- current tax 4 (27) – –
1,872 1,783 71 93
_93
FINANCIALS
ANNUAL REPORT 2006
23. Tax (cont’d)

A reconciliation of the tax expense and the product of accounting profit multiplied by the applicable tax rate for the
financial year ended 31 August was as follows:
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
(RESTATED) (RESTATED)
Accounting profit 63,608 28,801 26,185 4,071
Tax at statutory tax rate

of 20% (2005 : 20%) 12,722 5,760 5,237 814
Adjustments for tax effect of:
Difference in overseas tax rate (57) 14 – –

Expenses not deductible for tax purposes 817 213 43 11
Income not taxable (9,817) (2,968) (5,274) (854)
Tax exempt income under Section
13A of the Singapore Income
Tax Act and rebates available (1,674) (2,266) – –
Tax rebates (38) – – –
Current year deferred tax
benefit not recognised 106 – – –
Deferred tax benefit arising from
unabsorbed tax losses and unutilised capital
allowances previously not recognised – (98) – –
Transfer of unabsorbed
tax losses as group relief – – – 29
Under/(over) provision in prior years 4 (27) – –
Tax deducted at source 71 93 71 93
Withholding tax * 51 1,062 – –
Others (313) – (6) –
Income tax expense 1,872 1,783 71 93
Note:
* Withholding tax relates to tax withheld on certain overseas revenue for which no tax relief is available in Singapore as the income is
tax exempt under Section 13A of the Singapore Income Tax Act.
As at 31 August 2006, the Company had unabsorbed tax losses of approximately $Nil (2005: $145,000) which are
available for transfer under group relief, subject to the agreement of the Inland Revenue Authority of Singapore.
_94
10
23. Tax (cont’d)
Movements in deferred income tax liabilities were as follows:
GROUP
2006 2005
$’000 $’000
Balance at beginning of financial year 87 40
Charge to profit and loss account – 47
Balance at end of financial year 87 87
Deferred income tax liabilities relate to the following :
DEFERRED TAX LIABILITIES

Excess of capital allowances
over depreciation 129 139
DEFERRED TAX ASSETS

Other deferred tax assets (42) (52)
NET DEFERRED TAX LIABILITIES 87 87
24. Share capital

GROUP AND COMPANY
2006 2005
NO OF SHARES $’000 NO OF SHARES $’000
Ordinary shares issued and fully paid
At beginning of financial year 222,000,000 44,400 160,000,000 32,000
Issued during the financial year 55,919,995 13,440 62,000,000 12,400
Transfer of share premium upon
implementation of Companies
(Amendment) Act 2005 – 40,247 – –
At end of financial year 277,919,995 98,087 222,000,000 44,400
_95
FINANCIALS
ANNUAL REPORT 2006
24. Share capital (cont’d)

(a) Issuance of shares
On 16 February 2006, the Company issued 9,600,000 new ordinary shares in the capital of the Company at
On 16 February 2006, the Company issued 9,600,000 new ordinary shares in the capital of the Company at $1.40
$1.40 per ordinary share as part consideration for the Group’s acquisition of 30% of the issued and paid-up
per ordinary share as part consideration for the Group’s acquisition of 30% of the issued and paid-up capital of Uni-
capital of Uni-Bulk Holdings Pte. Ltd.
Bulk Holdings Pte. Ltd.
(b) Bonus Issue

On 30OnJune
30 June
2006,2006, the Company
the Company issued issued 46,319,995
46,319,995 new ordinary
new ordinary sharesshares
in the in the capital
capital of the of the Company,
Company, on theon the
basis
basis
of one of one share
(1) bonus (1) bonus sharefive
for every for (5)
every five (5)
existing existingshares
ordinary ordinary
heldshares
by theheld by the shareholders
shareholders of the Company.
of the Company.
All new ordinary shares rank pari passu in all respects with the then existing ordinary shares of the Company.
The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary
shares carry one vote per share without restriction.
On 30 January 2006, in accordance with the Companies (Amendment) Act 2005, the concepts of “par value” and
“authorised capital” were abolished and on that date, the shares of the Company ceased to have par value. In
addition, the amount standing in the share premium reserve had become part of the Company’s share capital.
25. Reserves
(a) Fair value adjustment reserve
GROUP AND COMPPANY

2006 2005
$’000 $’000
(RESTATED)
At beginning of financial year,
as previously reported - -
Effects of change in accounting
policy (Note 2.2(a)) 12,779 3,650

as restated 12,779 3,650
Net change in the reserve (3,766) 9,129
At end of financial year 9,013 12,779
Net change in the reserve arises from:
Net gain on fair value

changes during the financial year 2,376 13,541
Recognised in the profit and loss account
on disposal of investment securities (6,142) (4,412)
(3,766) 9,129
_96
10
25. Reserves (cont’d)
(b) Hedging reserve
Hedging reserve records the portion of the fair value changes on derivative financial instruments designated as
hedging instruments in cash flow hedges that is determined to be an effective hedge.
GROUP
2006 2005
$’000 $’000
as previously reported - -
Effects of adopting FRS 39 (Note 2.2(c)) - -

as restated - -
Net change in the reserve 550 -
At end of financial year 550 -
Net change in the reserve arose from net gain on fair value changes during the financial year.
(c) Translation reserve

The translation reserve is used to record exchange differences arising from the translation of the financial statements
of operations whose functional currencies are different from that of the Group’s presentation currency.
GROUP
2006 2005
$’000 $’000
At beginning of financial year (532) (344)
Net effect of exchange differences (5,781) (188)
At end of financial year (6,313) (532)
_97
FINANCIALS
ANNUAL REPORT 2006
26. Revenue
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Offshore support services 74,533 42,970 – –
Marine services 35,792 29,577 – –
Dividend income from
- unquoted subsidiaries – – 20,146 2,000
- unquoted joint venture – – 95 –
- AFS investments – – 490 477
Management fee income from a subsidiary – – 10,639 2,633
110,325 72,547 31,370 5,110
27. Other income, net

GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
(RESTATED) (RESTATED)
Gain on disposal of assets held for sale 31,383 6,650 – –
Gain on disposal of AFS investments 6,126 4,398 6,126 4,398
Gain on derecognition of fixed assets – 65 – –
Gain on disposal of fixed assets 10 8 – –
Gain on disposal of investment
in associated company – 454 – 454
Fair value changes in respect
of derivative instruments, net 85 – – –
Gain on termination of
derivative instruments 134 – 134 –
Exchange gain/(loss)
- realised 1,640 426 712 (13)
- unrealised (1,212) 422 (1,255) (114)
Gross dividend income
from AFS investments 490 477 – –
Gross dividend income
from an associated company 3,732 – – –
Management fee income
from an associated company 79 – – –
Bad debts recovered 13 – – –
Other income 8 2 8 –
42,488 12,902 5,725 4,725
_98
10
28. Profit from operations
This is determined after charging the following:
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Non-audit fees to auditors of the Company 66 29 66 29
Depreciation of fixed assets 4,588 5,433 28 –
Directors’ remuneration
- Salaries and bonuses 7,511 3,671 7,199 3,618
- Contributions to defined
contribution plans 27 28 17 22
- Benefit in kind 303 231 290 214
Directors’ fees 249 242 249 242
Key executive officers’ remuneration
- Salaries and bonuses 1,158 883 1,028 506
- Contributions to defined
contribution plans 81 68 81 53
- Other personnel expenses 196 82 156 59
Fixed assets written off 6 – – –
Bad debts written off 13 – – –
Write-down of inventories 38 – – –
Amortisation of intangible asset 112 – – –
Personnel expenses (Note 29) 14,373 12,193 10,573 5,320
Allowance for doubtful debts (Note 11) – 30 – –
Operating lease expenses 320 167 – –
29. Personnel expenses

GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Wages and salaries 13,831 11,189 9,670 4,851
Contributions to defined contribution plans 639 290 245 133
Other personnel expenses 1,471 1,400 658 336
Less: Reallocation of personnel expenses
directly attributable to work-in-
progress (1,568) (686) – –
14,373 12,193 10,573 5,320
Personnel expenses include amounts shown as directors’ remuneration and fees and key executive officers’
remuneration in Note 28.
_99
FINANCIALS
ANNUAL REPORT 2006
30. Financial income

GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Interest income
- Bank deposits 585 153 360 116
- Loans to joint venture companies 165 – 165 –
750 153 525 116
31. Financial expenses

GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Interest expense
- bank overdrafts 1 17 – 13
- term loans 4,006 5,421 – –
- letters of credit, trust receipts
and money market line 2,736 1,296 – –
- finance leases 8 15 – –
Bank charges 2,251 730 13 29
9,002 7,479 13 42
Included in cost of vessels
under construction*
- Fixed assets (1,262) (230) – –
- Assets held for sale (3,375) (1,219) – –
4,365 6,030 13 42
Note:
* The capitalisation rate used to determine the amount eligible for capitalisation varied from 4.05% to 8.75% (2005: 3.31% to 5.78%),
representing the borrowing costs to finance the vessels under construction.
_100
10
32. Earnings per share
Earnings per ordinary share is calculated by dividing the Group’s net profit attributable to shareholders by the
weighted average number of ordinary shares outstanding during the financial year, after adjusting for bonus issue.
The calculation of the basic and fully diluted earnings per share of the Group is based on the following:
GROUP
2006 2005
$’000 $’000
(RESTATED)
Net profit attributable to shareholders 61,736 27,018
Number of weighted average

ordinary shares (‘000) 272,586 232,668
Earnings per share (cents) 22.65 11.61
In accordance with FRS 33, Earnings Per Share, the weighted average number of shares for comparative figure has
been adjusted to reflect the bonus issue of one (1) bonus share for every five (5) existing ordinary shares during the
financial year (Note 24(b)).
As there were no share options and warrants granted during the financial year or outstanding as at the end of the
financial year, the basic and fully diluted earnings per share are the same.
_101
FINANCIALS
ANNUAL REPORT 2006
33. Related party transactions

During the financial year, the Group and the Company entered into transactions with related parties on terms
agreed between the parties as shown below:
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
INCOME
Dividend income
- subsidiaries – – 20,146 2,000
- associated company 3,732 – – –
- joint venture company 95 – 95 –
Interest income from joint
venture companies 165 – 165 –
from a subsidiary – – 10,639 2,633
from an associated company 79 – – –
Ship management fee income
- associated company 37 17 – –
- joint venture company 113 100 – –
Sales to an associated company 1,189 – – –
Sales to a joint venture company – 44 – –
EXPENSES
Bareboat charter from
an associated company 13,899 – – –
OTHERS
Sale of vessels to associated companies 44,105 73,904 – –
_102
10
34. Contingent liabilities and commitments
(a) Contingent liabilities
As at 31 August 2006, the Company had issued corporate guarantees to banks for granting banking facilities to
certain subsidiaries, joint venture companies, an associated company and an associated company of a joint venture
company.
Unsecured contingent liabilities not provided for in the financial statements are as follows:
GROUP COMPANY
2006 2005 2006 2005
$’000 $’000 $’000 $’000
- corporate guarantees given for
the borrowings of subsidiaries – – 98,980 144,289
- corporate guarantees given for the
borrowings of joint venture companies * 11,311 5,815 11,311 5,815
the borrowings of associated companies 49,954 – 49,954 –
the borrowings of an associated
company of a joint venture company 15,730 – 15,730 –
76,995 5,815 175,975 150,104
* Includes corporate guarantees given in respect of loans undertaken to finance the acquisition of the 2 vessels which met with
accidents as discussed in Note 7.
As at 31 August 2006, the Company had also issued corporate guarantees in respect of the leaseback commit-
ments for the 4 vessels under the sale and leaseback arrangement entered into by a subsidiary during the financial
year.
(b) Financial support

The Company had given undertaking to provide financial support to certain subsidiaries to enable these subsidiaries
to operate as going concerns and to meet their obligations for at least twelve months from the dates of the respective
directors’ report.
(c) Capital expenditure commitments

GROUP
2006 2005
$’000 $’000
Capital expenditure not provided
for in the financial statements:
- Approved and contracted for
in respect of construction of vessels 301,529 336,202
- Approved but not contracted for
in respect of construction of vessels 81,244 9,445
382,773 345,647
_103
FINANCIALS
ANNUAL REPORT 2006
34. Contingent liabilities and commitments (cont’d)

(d) Lease commitments – Group as lessee
The Group had various operating lease agreements for bareboat charter of vessels, leasing of land, rental of machin-
ery, office premises and shipyard workers’ accommodation. Except for the land lease rate which may increase up
to 15% every 5 years until the end of the lease term, the other lease arrangements do not contain any escalation
clauses, do not provide for contingent rents and do not contain restrictions on the Group’s activities concerning
dividends, additional debts and further leasing. Future minimum lease payments payable under non-cancellable
operating leases were as follows as of 31 August:
GROUP
2006 2005
$’000 $’000
Not later than one year 17,318 279
Later than one year but
not later than five years 67,379 367
Later than five years 41,160 –
125,857 646
These leases have remaining lease terms of between 1 to 26 (2005: 1 to 5) years.
35. Financial instruments

Financial risk management objectives and policies
The main risks arising from the Group's financial instruments are interest rate risk, credit risk, liquidity risk, and foreign
currency risk. The Group’s overall risk policy is to minimise potential adverse effects on the Group’s financial
performance. The Group uses derivative financial instruments such as foreign exchange contracts and interest rate
derivative contracts to hedge underlying risk exposures and the transactions are not entered into for speculative
purposes.
The management reviews and agrees policies for managing these risks and they are summarised below:
Interest rate risk

The Group’s interest rate exposure relates primarily to its long-term debt obligations. The Group’s policy is to
manage its interest cost using a mix of fixed and variable rate debt. To maintain this mix in a cost efficient manner,
the Group primarily uses interest rate cap contracts that have the effect of capping specific debt obligations of the
Group. In negotiation for favourable pricing of these contracts, the Group may sell interest rate floor contracts to the
counter party such that for certain contracts, the Group ends up with a collar protection.
Additional information relating to the Group’s interest rate exposure is also disclosed below and in the notes relating
to its borrowings.
Surplus funds are placed with reputable banks.
_104
10
35. Financial instruments (cont’d)
Credit risk
Credit risk is the potential financial loss resulting from the failure of a customer or a counterparty to settle its financial
and contractual obligations when due.
The Group has established credit limits for creditworthy customers. These debts are continually monitored and
therefore, the Group does not expect to incur material credit losses.
The carrying amounts of trade and other receivables, amounts due from associated companies and joint venture
companies, fixed deposits and cash and bank balances represent the Group’s maximum exposure to credit risk. No
other financial assets carry a significant exposure to credit risk.
As at 31 August 2006, the Group had 5 (2005: 6) major customers that account for approximately 79% (2005: 80%)
of the Group’s gross trade receivables.
Fixed deposits and cash and bank balances are placed with reputable financial institutions. Management believes
that the financial institutions that hold the Group’s assets are financially sound and accordingly, minimal credit risk
exists with respect to these assets.
Liquidity risk
In the management of liquidity risk, the Group monitors and maintains a level of cash and bank balances deemed
adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows.
The Group’s funding is obtained from funds generated from operations, bills payables, bank term loans and finance
leases.
Foreign currency risk

The Group has exposure to foreign exchange risk as a result of transactions denominated in foreign currencies,
arising from charter hire income, foreign crews’ salary expenses and term loans and interest expenses. It is the
Group’s policy to hedge these risks through foreign currency forward exchange contracts, if material. The primary
purpose of the Group’s foreign currency hedging activities is to protect against the volatility associated with foreign
currency liabilities created in the normal course of business.
As at 31 August 2006, the Group had significant foreign currency exposure in United States dollars, Malaysia Ringgit,
Great Britain Pounds, Norwegian Kroner and Euro in its trade and other receivables, trade payables, term loans and
bill payables as disclosed in the respective notes.
_105
FINANCIALS
ANNUAL REPORT 2006

Derivative financial instruments and hedging activities
Derivative financial instruments included in the balance sheets as at 31 August are as follows:
GROUP
2006 2005
$’000 $’000
Forward currency option contracts –# –
Interest rate cap contracts 1,215 –
Interest rate floor contracts (15) –
1,200 –
# : less than $1,000
The table below sets out the notional principal amount of the outstanding interest rate derivative contracts and the
notional amount of net forward currency option contracts of the Group as at 31 August:
GROUP
2006 2005
$’000 $’000
Remaining notional principal 76,170 122,501
Notional amount of net foreign

currency option contracts (USD and Euro) 5,051 16,185
Cash flow hedges

As at 31 August 2006, the Group held two interest rate derivative contracts that have been designated as hedges of
the Group’s interest rate exposures in respect of two bank term loans with a remaining combined notional value of
US$ 21,917,000, undertaken by the Group.
These interest rate derivative contracts cover the respective cash flows of interest charges payable to the banks from
October 2004 to July 2011.
As at 31 August 2006, the fair values of these derivative contracts amounting to $550,000 were recorded as
derivative assets in the balance sheet of the Group. Fair value gains of $550,000 relating to these hedging
instruments are included in the hedging reserve (Note 25).
The terms of these contracts have been negotiated to match the terms of the bank term loans.
_106
10
Fair values
Fair value is defined as the amount at which the financial instrument could be exchanged in a current transaction
between knowledgeable willing parties in an arm’s length transaction, other than in a forced or liquidation sale. Fair
values are obtained from quoted market prices, discounted cash flow models and option pricing models where
practical.
The following methods and assumptions are used to estimate the fair value of each class of financial instruments:
(a) Cash and bank balances, trade and other receivables and payables and bills
payable
The carrying amounts of these balances approximate fair values due to their short-term nature.
(b) Term loans and finance lease creditors

The carrying values of finance lease creditors approximate their fair values as the current lending rates for similar
types of lending arrangements are not materially different from the rates obtained by the Group.
The carrying value of long term floating interest rate term loans approximate fair values as these borrowings are of
variable interest rate with repricing features.
36. Segment information

The Group’s primary format for reporting segment information is business segments, with each segment represent-
ing a strategic business segment that offers different products and services. In presenting information on the basis
of geographical segments, segment revenue is based on the billing location of customers.
Segment accounting policies are the same as the policies described in Note 2. The primary format, business
segments, is based on the Group’s management and internal reporting structure.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Unallocated items comprise mainly corporate assets, liabilities and expenses.
Inter-segment pricing, if any, is determined on an arms’ length basis.
The Group is organised into two main operating divisions, namely Offshore support services and Marine services.
The Offshore support services division is mainly engaged in the owning, chartering and the management of offshore
support vessels in serving the oil and gas exploration and drilling industries. The Marine services division is mainly
engaged in the provision of management services, supply of marine and gas oil, provision of ship building and
engineering works.
_107
FINANCIALS
ANNUAL REPORT 2006
36. Segment information (cont’d)

Business segments
OFFSHORE
SUPPORT MARINE
FINANCIAL YEAR SERVICES SERVICES GROUP
ENDED 31 AUGUST 2006 $’000 $’000 $’000
REVENUE 74,533 35,792 110,325
PROFIT FROM OPERATIONS 30,921 12,797 43,718

Share of profit of associated companies 1,197 – 1,197
Share of profit of joint venture companies 2,391 – 2,391
Financial income 750
Financial expenses (4,365)
Tax (1,872)
Unallocated other operating income 38,244
Unallocated expenses (18,327)
Net profit for the financial year 61,736
ASSETS
Segment assets 268,291 36,643 304,934
Unallocated assets 90,052
Total assets 394,986
LIABILITIES
Segment liabilities 121,310 48,924 170,234
Unallocated liabilities 36,158
TOTAL LIABILITIES 206,392
Other information
Capital expenditure 149,374 – 149,374
Unallocated capital expenditure 2,111
Total capital expenditure 151,485
Depreciation 3,463 – 3,463

Unallocated depreciation 1,125
Total depreciation 4,588
_108
10
Business segments
OFFSHORE
SUPPORT MARINE
SERVICES SERVICES GROUP
FINANCIAL YEAR $’000 $’000 $’000
ENDED 31 AUGUST 2005 (RESTATED) (RESTATED) (RESTATED)
REVENUE 42,970 29,577 72,547
PROFIT FROM OPERATIONS 27,053 4,109 31,162

Share of profit of a joint venture company 313 – 313
Financial income – 153
Financial expenses (6,030)
Income tax (1,783)
Unallocated other operating income 12,053
Unallocated expenses (8,850)
Net profit for the financial year 27,018
ASSETS
Segment assets 231,133 29,019 260,152
Unallocated assets 107,105
Total assets 367,257
LIABILITIES
Segment liabilities 191,317 21,080 212,397
Unallocated liabilities 15,810
Total liabilities 228,207
OTHER INFORMATION
Capital expenditure 73,384 – 73,384
Unallocated capital expenditure 676
Total capital expenditure 74,060
Depreciation and amortisation 4,968 – 4,968

Unallocated depreciation and amortisation 465
Total depreciation and amortisation 5,433
There are no other significant non-cash income or expenses.
_109
FINANCIALS
ANNUAL REPORT 2006

Geographic segments
2006 2005
REVENUE (1) $’000 $’000
Singapore 10,460 21,298
South East Asia(2) 93,483 51,147
Other countries(3) 6,382 102
110,325 72,547
Note:
(1) Revenue is based on the location of customers.
(2) South East Asia includes Thailand, Brunei, Malaysia and Vietnam and excludes Singapore.
(3) Other countries includes Australia, Yemen, Switzerland, Norway, United Arab Emirates and the United Kingdom.
Assets and capital expenditure are based on the location of the companies that own those assets.
2006 2005
ASSETS $’000 $’000
Singapore 318,898 307,177
South East Asia(4) 39,171 19,598
Other countries(5) 36,917 40,482
394,986 367,257
2006 2005
CAPITAL EXPENDITURE $’000 $’000
Singapore 148,504 72,116
South East Asia(4) 1,365 –
Other countries(5) 1,616 1,944
151,485 74,060
Note:
(4) South East Asia includes Thailand, Brunei, Malaysia and Vietnam and excludes Singapore.
(5) Other countries includes British Virgin Islands.
_110
10
37. Dividends paid and proposed
GROUP AND COMPANY
2006 2005
$’000 $’000
ORDINARY DIVIDENDS PAID
Interim tax exempt ordinary dividend

for financial year (“FY”) 2006 of 2.2 cents
per ordinary share paid on 12 June 2006 5,095 –
Final tax exempt ordinary dividend

for FY2005 of 2.7 cents per
ordinary share paid on 16 January 2006 5,994 –
Special tax exempt ordinary dividend

for FY2005 of 0.8 cents per
ordinary share paid on 16 January 2006 1,776 –
Interim tax exempt ordinary dividend for

FY2005 of 0.6 cents per ordinary share
paid on 27 June 2005 – 1,152
Final tax exempt ordinary dividend for

FY2004 of 1.9 cents per ordinary
share paid on 13 January 2005 – 3,040
12,865 4,192
The directors propose that a final dividend of 2.6 cents (2005: 2.7 cents) per ordinary share, tax exempt and a special
dividend of 1.6 cents (2005: 0.8 cents) per ordinary share, tax exempt, be paid for the financial year ended 31 August
2006.
38. Authorisation of financial statements

The financial statements for the financial year ended 31 August 2006 were authorised for issue in accordance with
a resolution of the directors on 28 November 2006.
_111
SHAREHOLDING BY THE PUBLIC
Based on information available to the Company as at 30 November 2006, approximately
61.18% of the issued ordinary shares of the Company is held by the public, and therefore,
Rule 723 of the Listing Manual issued by the SGX-ST is complied with.

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3. Fixed assets (cont’d)

At 31 August 2005 and 1 September 2005 – 54 54

At 31 August 2005 and 1 September 2005 – – –

NET BOOK VALUE

Motor vehicles 351 170 – –

(g) The Group’s major properties as at 31 August 2006 were as follows:

LOCATION GROSS FLOOR AREA TENURE USAGE

20 Ubi Crescent 836 sq m 60-year lease commencing Office

Thanh My Loi Precinct 97,069 sq m 35-year lease commencing Fabrication yard

At 1 September 2004, as previously reported (165) 130 – (35)

At 1 September 2004, as restated and at 31 August 2005 – 104 – 104

At 31 August 2006 – 1,116 3,483 4,599

At 1 September 2004, as previously reported (32) 26 – (6)

At 1 September 2004, as restated and at 31 August 2005 – – – –

At 31 August 2006 – – (112) (112)

At 31 August 2006 – 1,116 3,371 4,487

At 31 August 2005 – 104 – 104

Impairment testing of goodwill

Unquoted equity shares, at cost 23,615 23,615

Details of the subsidiaries as at 31 August were as follows:

Emas Offshore Investment holding and Singapore 100 100 –# –#

Emas Offshore Ship management services Singapore 100 100 –# –#

Emas Offshore Investment holding Malaysia 100 100 –# –#

HCM Logistics Limited Investment holding British Virgin Islands 100 – –# –

5. Investments in subsidiaries (cont’d)

Bayu Emas Ship brokerage and Malaysia 100 100

Asian Technical Investment holding and Isle of Man 100 –

Saigon Shipyard Provision for engineering Vietnam 100 –

Details of the associated companies as at 31 August were as follows:

Uni-Bulk Holdings Pte Ltd ** Investment holding Singapore 30 – 14,400 –

Intan Offshore Sdn Bhd (“Intan Offshore”)

6. Investments in associated companies (cont’d)

(b) first preference on return of assets in the event of liquidation;

Uni-Bulk Holdings Pte Ltd (“Uni-Bulk”)

7. Investments in joint venture companies

14,266 1,500 11,566 1,095

7. Investments in joint venture companies (cont’d)

Casadilla Group Pte Ltd # Rig owning and provision Singapore 50 – 79 –

(b) Casadilla Group Pte Ltd, incorporated in Singapore on 31 May 2006.

Total assets 35,443 4,865

Net assets 5,031 1,537

Revenue 6,787 1,234

Profit before tax 2,410 434

9. Assets held for sale

Total inventories at lower of

Work-in-progress, at cost 5,764 2,583

11. Trade receivables

Analysis of allowance for doubtful debts:

At end of financial year 141 174

Included in the Group’s trade receivables balances are:

(a) $32,703,000 (2005 : $34,070,000) denominated in United States dollars, and

11,059 6,419 338 21

13. Other current assets

14. Non-trade balances due from/ (to) subsidiaries/

15. Fixed deposits

16. Cash and bank balances

Included in the Group’s cash and bank balances are:

(a) $6,370,000 (2005 : $12,463,000) denominated in United States dollars, and

17. Trade payables

(a) $1,985,000 (2005 : $2,094,000) denominated in United States dollars,