SGX’s query:
a) We note that other operating expenses for 4QFY09 included US$4.5m arising from a change in the fair
value of financial derivative embedded within the Convertible Bonds issued during 4QFY09. In view that
the change in fair value amounting to US$4.5m is significant to the net profit of the Company, please
provide further details of these embedded derivatives and the factors which caused the significant change
in fair value.
Company’s reply:
As previously announced via SGXNet, the Company had on 16 October 2009 issued US$100.0 million
5% convertible bonds due in 2014.
Key features of the convertible bonds are as follows:
The convertible bonds may be converted at the option of bondholders at any time on and from November
26, 2009 to October 6, 2014, at a initial conversion price of S$1.14, into fully paid-up ordinary shares of
the Company at the fixed exchange rate of US$1.00 = S$1.44. The conversion price will be reset on each
Interest Payment Date based on the average market price, defined as the volume weighted average price
of shares for up to 20 consecutive Trading Days immediately preceding the relevant reset date.
Disclosures and presentation for the convertible bonds have been assessed by management in
accordance with FRS 32 Financial Instruments Disclosure and Presentation (“FRS 32”) and FRS 39
Financial Instruments- Measurement and Recognition (“FRS 39”).
Due to the reset feature on conversion price, the Company does not deliver fixed amount of equity for a
fixed number of bonds based on the prevailing conversion rate. The management opts to account for the
convertible bonds as financial liabilities with fair value through profit or loss. The difference between fair
value of the convertible bonds at the date of inception and the end of each reporting period end will be
taken to income statement. This accounting treatment is in compliance with FRS 32 and FRS 39.

SGX’s query:
b) We note that Trade Receivables as at 31 December 2009 increased from US$61.9m to US$141.8m
while sales for the year decreased by 8.2%. In this regard, please provide a breakdown by types and
explain the significant increases. To also disclose the Trade Receivables turnover days.

SGX’s query:
c) We note that the increase in other debtors from US$8.9m to US$17.8m as at 31 December 2009 was
due to the increase in seller credits granted under the sales and leaseback transactions. Please explain
why the Company has to give sales credits for a sales and leaseback transaction and why the sales
credits are recorded as Other Debtors. To elaborate on how the sales credits are recorded in the income
statement and how the sales credit works.
Company’s reply:
The Group has entered into sales and lease back agreements (“Agreements”) with several outside
parties. Under the Agreements, the Group has granted each buyer of the vessel credit facilities in
connection with their purchase of vessel. The seller credits shall serve as security for the obligations of
the Group under the respective bareboat charter parties. These deposits will be refunded in the event that
the Company decides not to seek for renewal upon the expiry of the Agreement. As such, the seller
credits are recorded as deposits in other debtors and there is no impact in the income statement.

From the above statements, for brothers and sisters
TRADE WITH CARE!!

xiao

That why folks this share is especially difficult to pass beyond 1.13.
1.09 to 1.13 will had a lot of volume waiting for you to buy...
OK that all my sharing.
TRADE WITH CARE!!
Bless wealth and health be the force with you and me, for all.
HUAT AH!!!!

xiao

Now the share price trend 1.08 loading.
Forget 1.09 and above.
Very scary

xiao

sell down
sell down
sell down
sell down
sell down
sell down
sell down
sell down
price now 1.06
price now 1.06
sell down
sell down
sell down
sell down
sell down
sell down
Horrible

xiao

xiao