Ar 2013

Safely Navigating Forward
Annual Report 2012/2013
A nn ua l Re p or t 2 0 1 2 / 2 0 1 3
2 00 C an tonme n t R o a d , # 0 9 - 0 1 S o u t h p o i n t ,
Si n g a p or e 08 9 7 6 3
Tel : ( 6 5) 62 20 4 9 0 6 Fa x: (6 5 ) 6 2 3 6 6 2 5 2
w w w. s i n g ap o re s h i p p i n g. c o m . s g
C om pan y R eg i s t r a t i o n N o . 1 9 8 8 0 1 3 3 2 G
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
28 Financial Statements
91 Shareholding Statistics
93 Notice of Annual General Meeting and Books Closure
Proxy Form
Annual Repo rt 2012/2013

2
CHAIRMANS MESSAGE
DEAR SHAREHOLDERS,
Singapore Shipping Corporation Limited

(SSC) continued its steady course with a
net profit of US$6.8 million, reflecting a 12.2%
increase over the previous financial year. Group
revenue rose slightly by 1.0% to about US$20.0
million. The net profit increase was due mainly
to a one million dollar recovery of an insurance-
related claim that was partially offset by higher
depreciation and vessel operating costs.
The global shipping industry remains depressed

in the rough seas of financial volatility and
dramatic swings in shipping trade with the
majority of ship owners continuing to suffer
losses. Shipping companies are also struggling
with the onslaught of new environmental laws to
make shipping greener.
Amidst this instability, SSC is firmly anchored

with an enviable financial position. Our cash
and cash equivalents amounted to US$17.2
million as at 31 March 2013 compared with
US$12.4 million in the corresponding period
last year. This increase is due to higher net cash
from operating and investing activities.
As the global shipping industry undergoes

consolidation, SSC continues to provide a safe
refuge for investors due to our sound business
strategy of obtaining long-term charters for
our ships. Even more assuring is the fact that
we have secured blue chip charterers, thereby
ensuring quality income stream.
From our initial beginnings as Hai Sun Hup over

40 years ago, we have deftly ridden on the waves
of change to build a solid maritime business
based on the fundamentals of financial prudence
and business pragmatism. After selling 10
ships mostly at peak prices some seven years
ago before global shipping prices plummeted,
SSC successfully went ahead to build up a
dedicated fleet of RoRo carriers of Pure Car
and Pure Truck vessels with the acquisition of
Sin g a p o re S h i p p i n g Cor por a tion L imite d

3
M.V. Boheme and M.V. Sirius Leader two to three PROSPECTS

years ago. This year, we expanded the Group by In FY 2014, M.V. Sirius Leader and M.V. Boheme
acquiring complementary businesses of agency will go into drydocking, resulting in an estimated
& terminal operations, strategic projects and US$1 million drop in income. The loss of income
logistics with the aim of improving returns for from M.V. Singa Ace, for reasons explained
our shareholders. above, will also amount to about US$1 million.
However, we expect these losses to be more
M.V. Boheme is one of the largest car carriers in than compensated by the revenue generated
the world with a carriage capacity of 7,200 cars. from the new businesses that were acquired
It is chartered to Wallenius Lines of Sweden. in April.
M.V. Sirius Leader, with a capacity for 5,190 cars,
is chartered to NYK Lines of Japan. Both ships With the long-term charters for our vessels,
have a combined charter hire of some US$15 SSC is expected to remain profitable, barring
million annually, securing steady earnings until unforeseen circumstances. Our healthy
2025/2026. Our third vessel M.V. Singa Ace is financial position also means that we are able
reaching the end of its long-term charter and to augment our fleet of car-carriers if we find
useful life by end-2013 and we are deliberating suitable acquisitions backed by long-term
on scrapping it or other options. We also have a quality charters and attractive returns. We also
30 per cent stake in M.V. Cougar Ace that is on intend to explore new business opportunities
a five-year charter until the beginning of 2014. by leveraging on the existing relationships,
networks and resources relating to our core
In April this year, we completed the purchase shipping business as well as those of the newly
of S$15 million worth of stakes from MYP Ltd. acquired companies.
in Hai Poh Terminals, Island Line, Nanyang
Maritime (Spore) and SSC Shipping Agencies. APPRECIATION
Whilst MYP Ltd. was keen to divest its maritime I am grateful to our charterers for their faith in
stake holdings to focus solely on real estate, giving us long-term support. To our Board of
we saw the opportunity to improve our Groups Directors, thank you for your wise counsel. I
revenue streams and profitability by investing would also like to express my appreciation to
in agency & terminal operations, as well as the all our employees for your loyal dedication.
higher-margin strategic projects and logistics Last but not least, I thank our shareholders
businesses. They not only complement our core for believing in SSC, your conviction allows us
ship-owning and management businesses but to steer assuredly towards even more good
would also mitigate, to some extent, the currency years ahead.
exchange risks faced by the Group since our net
income from shipping is mainly denominated
in US$ whilst annual dividend payments to
shareholders are paid in SingDollars.
In view of our satisfactory results, the Board is OW CHIO KIAT AO

proposing a final one-tier tax-exempt dividend Executive Chairman
of 1.0 Singapore cent per ordinary share with a
total payout of about S$4.4 million.

4
BOARD OF DIRECTORS
MR OW CHIO KIAT AO MR OW CHEO GUAN MR OW YEW HENG

Executive Chairman Executive Deputy Chairman Executive Director
Mr Ow is the Executive Chairman Mr Ow is the Executive Deputy Mr Ow, who is the Executive
of Singapore Shipping Corporation Chairman of SSC. He is also the Director of SSC, is involved in the
Limited (SSC). He is also the Executive Deputy Chairman of SLC overall management of the Groups
Executive Chairman of Stamford and holds directorships in most of businesses, including the areas of
Land Corporation Ltd (SLC), SSCs and SLCs subsidiaries. strategy development, operations,
which is listed on the SGX-ST. marketing communications, finance
Mr Ow holds directorships in most Mr Ow is a Fellow of the Institute and human resources. Mr Ow is
of SSCs and SLCs subsidiaries. of Chartered Shipbrokers and is also involved in the evaluation of
the Honorary Consul of the Slovak new business opportunities for
In 2009, Mr Ow was named Republic in Singapore. the Group, including feasibility
Businessman of the Year at the studies on potential developments,
Singapore Business Awards investments and transactions.
which was jointly organised by
The Business Times and DHL. In Mr Ow, the son of the Groups
2012, he was awarded Honorary Executive Chairman, is also an
Officer in the Order of Australia by Executive Director of SLC.
the Commonwealth of Australia
in recognition of his distinguished Prior to joining SSC, Mr Ow held
service towards the development of the position of Analyst, Private
commercial relations and identifying Wealth Management with Deutsche
business opportunities between Bank AG, Singapore. Mr Ow holds
Australia and Singapore. a Bachelor of Business degree
from the University of Technology,
Mr Ow is a Fellow of the Institute Sydney, where he majored in
of Chartered Shipbrokers and Accounting & Management.
is Singapores non-resident
Ambassador to Argentina.

5
MR TAN GUONG CHING LT-GEN (RETD) NG JUI PING MR JONES CHRISTOPHER

Independent Director Independent Director ADRIAN
Independent Director
Mr Tan holds a Bachelor and a General Ng, who was appointed Mr Jones, who was appointed to
Master of Engineering (Chemical) to the Board on 29 July 2010, had the Board on 21 August 2012, has
Degrees from McMaster University, a distinguished 30-year military a long career in the international
Canada. career culminating in the position of shipbroker industry. His particular
Chief of Defence Force, Singapore expertise is in the sale, purchase,
He was the CEO of the Housing and prior to that, Chief of Army, new construction and valuation of
and Development Board, the Singapore. He was conferred a all types of vessels.
Principal Private Secretary to the number of awards for distinguished
Prime Minister and the Permanent service to Singapore, including Mr Jones started his ship broking
Secretary of the Ministry of Home the Meritorious Service Medal career at H.Clarkson in London in
Affairs, Ministry of the Environment (Military) in 1995 and prestigious 1971 and worked in its Paris office
and Ministry of Communications. awards by regional countries as before joining Simpson Spence
well. After his retirement from the and Young in London in 1991.
Currently, he is the Chairman Armed Forces in 1995, the General He set up Simpson Spence and
o f S i n g a p o re Te c h n o l o g i e s took up the entrepreneurial route Youngs offices in Singapore and
Telemedia Pte Ltd, Singapore and listed the company he co- Jakarta prior to becoming a partner
Technologies Aerospace Ltd, STT founded on the SGX-ST Mainboard in the firm.
Communications Ltd, Starhub in January 2000, subsequently
Ltd and Asia Mobile Holdings exiting by a share-sale. He is Mr Jones is currently a director of
Pte Ltd. He is also a Director of currently Chairman, Asia Pacific, ICAP Shipping Singapore Pte. Ltd.
Singapore Pools (Private) Limited, for Oppenheimer Investments and Mr Jones is also a member of the
Cambridge Industrial Trust sits on selected company boards, Baltic Exchange London.
Management Limited and Frasers including SGX-listed Yanlord Land
Centrepoint Asset Management Group Limited and Pacific Andes
(Commercial) Ltd. Resources Development Limited.
Past directorships include Deputy
Chairman, Central Provident Fund
Board; Director, PSA International
and Chairman of its China and
North-East Asia group.
General Ng holds a Master of

Arts (History) degree from Duke
University, USA. He has completed
the Advanced Management
Programme at Harvard Business
School, Harvard University, USA.

6
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
Ng Jui Ping
Jones Christopher Adrian SHARE REGISTRAR
M & C Services Private Limited
112 Robinson Road
EXECUTIVE COMMITTEE #05-01
Ow Chio Kiat (Chairman) Singapore 068902
Ow Cheo Guan
Jones Christopher Adrian
AUDITORS
KPMG LLP
AUDIT COMMITTEE Public Accountants and
Tan Guong Ching (Chairman) Certied Public Accountants
Ng Jui Ping 16 Raffles Quay
Jones Christopher Adrian #22-00 Hong Leong Building
Singapore 048581
Partner-in-charge: Chiu Sok Hua
NOMINATING COMMITTEE Date of Appointment: 15 October 2010
Ng Jui Ping (Chairman)
Tan Guong Ching
Ow Chio Kiat PRINCIPAL BANKERS
Oversea-Chinese Banking
Corporation Limited
REMUNERATION COMMITTEE 65 Chulia Street
Jones Christopher Adrian (Chairman) OCBC Centre
Tan Guong Ching Singapore 049513
Ng Jui Ping
Standard Chartered Bank
6 Battery Road
JOINT COMPANY SECRETARIES Singapore 049909
Chew Heng Siang Christina
Hon Wei Seng United Overseas Bank Limited
80 Raffles Place
UOB Plaza 1
Singapore 048624

7
SHAREHOLDER CALENDAR
Annual General Meeting for financial year ended 31 March 2013 (FY 2013)
July 2013 Announcement of financial year ending 31 March 2014 (FY 2014)
first quarter results
August 2013 Scheduled payment of final dividend for FY 2013
November 2013 Announcement of FY 2014 second quarter results
February 2014 Announcement of FY 2014 third quarter results
May 2014 Announcement of FY 2014 full year results

8
FINANCIAL HIGHLIGHTS
RESULTS OF OPERATIONS
For the financial year ended 31 March 2013 2012 2011 2010 2009
Revenue (US$000) 19,914 19,711 15,669 7,972 8,142
Prot / (Loss) attributable to owners

of the Company (US$000) 6,807 6,066 5,601 3,166 (3,223)
Earnings / (Loss) per share (US cents) 1.56 1.39 1.28 0.73 (0.74)
Dividend per share

Proposed final one-tier tax exempt
dividend (Singapore cent) 1.00 1.00 1.00 1.00 1.00

9
FINANCIAL POSITION
As at 31 March 2013 2012 2011 2010 2009

US$000 US$000 US$000 US$000 US$000
Current assets 19,432 15,276 13,735 40,425 35,578

Financial and other assets 233 231 242 333 422
Associated company 3,069 3,043 3,016 2,851 2,267
Property, plant and equipment 61,797 66,018 69,488 6,216 11,868
Total assets 84,531 84,568 86,481 49,825 50,135
Trade and other liabilities 3,451 2,487 2,149 1,103 1,274

Bank borrowing 23,732 28,252 32,656
Total liabilities 27,183 30,739 34,805 1,103 1,274
Net assets 57,348 53,829 51,676 48,722 48,861
Equity attributable to owners

of the Company 57,348 53,829 51,676 48,722 48,861
Net asset value per share (US cents) 13.15 12.35 11.85 11.17 11.21

10
FINANCIAL HIGHLIGHTS
REVENUE PROFIT / (LOSS)

(US$000) ATTRIBUTABLE
TO OWNERS OF
THE COMPANY
19,914
19,711
(US$000)
20,000 20,000
15,669
15,000 15,000
8,142
7,972
6,807
10,000 10,000
6,066
5,601
3,166
5,000 5,000
0 0
(3,223)
(5,000) (5,000)
2009 2010 2011 2012 2013
EARNINGS / (LOSS) RETURN

PER SHARE ON EQUITY
(US Cents) (%)
2.0 16.0
1.56
11.87
11.27
1.39
10.84
1.5 12.0
1.28
6.50
1.0 8.0
0.73
0.5 4.0
0 0.0
(0.5) (4.0)
(0.74)
(6.60)
(1.0) (8.0)
2009 2010 2011 2012 2013

11
SHAREHOLDERS NET ASSET

EQUITY VALUE PER
(US$000) SHARE
(US Cents)
57,348
58,000 14.0
13.15
56,000
53,829
13.0
12.35
54,000
51,676
11.85
52,000 12.0
11.21
11.17
48,861
48,722
50,000
11.0
48,000
46,000 10.0
2009 2010 2011 2012 2013
NET DE
DEBT
BT GEARING
(US$000) RATIO
25,000
25
5,0
,000
000 0.50
19,979
7
0 9
0.39
0.3
20
0,0
,000
000
0
20,000 0.40
13,956
0.30
0.26
15,0
15,,0
000
15,0000
10,0
10,0
000
00
10,000 0.20
5,163
0.09
5
5,,00
000
00
5,000 0.10
0 0
2009
2
20009
09 2010
2 10
20 1 2011 2012 2013

12
FLEET COMPOSITION
Vessel Boheme Sirius Leader Singa Ace Cougar Ace
% Owned 100 100 100 30
Type Pure car truck Pure car truck Pure car carrier Pure car carrier
carrier carrier
Capacity 7,200 cars 5,190 cars 4,889 cars 5,540 cars
Year Built 1999 2000 1984 1993
Charter 2010 2011 1984 1993

Commences
Charter Duration 15 years 15 years Extended to Extended to
end of 2013 2014
Charterer Wallenius Lines AB Nippon Yushen Mitsui O.S.K. Mitsui O.S.K.

Kabushiki Kaisha Lines, Ltd. Lines, Ltd.

13
CORPORATE GOVERNANCE STATEMENT
Singapore Shipping Corporation Limited (the Company) is committed to achieve a high standard
of corporate governance, to promote corporate transparency and protect shareholders interests.
The Company is pleased to confirm that besides adhering to the principles and guidelines of the
Code of Corporate Governance 2005 (the Code), it has also complied with many of the key revised
guidelines including those relating to internal controls which applies to the Company only in the new
financial year, as set out in the revised Code of Corporate Governance 2012.
This statement sets out the Companys main corporate governance practices with reference to the
Code. The Annual Report should be read in totality for the Companys full compliance with the Code.
1. BOARD MATTERS
a. Boards conduct of its affairs

Principle 1: Effective Board to lead and control the Company
The current Board comprises six directors and their principal functions are as follows:
Formulate corporate strategies, financial objectives and directions for the Group
Ensure effective management leadership of the highest quality and integrity
Provide oversight in the proper conduct of the Groups businesses
Oversee and/or evaluate the adequacy of the internal audit, risk management,
financial reporting and compliance processes
Oversee and ensure high standards of corporate governance for the Group
The Board also deliberates and makes decisions on material acquisitions and
disposals of assets, corporate restructuring, dividend payments and other returns to
shareholders and on matters that may involve a conflict of interest for any director.
All new directors are given an orientation of the Groups business and governance
practices, and all directors have access to information and further training on new
developments, including new laws, regulations and changing commercial risks, at the
Companys expense.
To efficiently discharge its responsibilities, the Board has established several board
committees, namely, the Executive Committee, Audit Committee, Nominating
Committee and Remuneration Committee. These committees are given specific
responsibilities and they are empowered by the Board to deal with matters within the
limits of authority set out in the terms of reference of their appointments. They assist
the Board operationally without the Board losing authority over major issues.

14
1. BOARD MATTERS (continued)
a. Boards conduct of its affairs (continued)
The Board currently holds at least four scheduled meetings each year to review
and deliberate on the key activities and business strategies of the Group, including
significant acquisitions and disposals, annual budget, financial performance and to
endorse the release of the quarterly and annual results. Where necessary, additional
meetings are held to address significant transactions or issues arising from the
business operations of the Group.
The frequency of Board, Audit Committee, Nominating Committee and Remuneration

Committee meetings held during the financial year and the attendance at those
meetings are set out below:
Number of meetings attended during the

financial year ended 31 March 2013
Board of Audit Nominating Remuneration
Name of Director Directors Committee Committee Committee
Mr Ow Chio Kiat 4 #4 1 NA
(Executive Chairman)
Mr Ow Cheo Guan 4 #4 NA NA
(Executive Deputy Chairman)
Mr Ow Yew Heng 4 #4 NA NA
(Executive Director)
Mr Tan Guong Ching 4 4 1 1
(Non-executive and independent)
Lt-Gen (Retd) Ng Jui Ping 3 3 1 1
Mr Jones Christopher Adrian (1) 2 2 NA
Mr Bengt Christer Olsson (2) NA
Number of meetings held 4 4 1 1
# By Invitation
NA Not applicable
Note:
(1) Appointed on 21 August 2012
(2) Resigned on 21 August 2012

15
b. Board composition and guidance

Principle 2: Strong and independent Board
The Company believes that there should be a strong and independent element on
the Board in order for it to exercise sound, objective judgement on corporate and
business affairs. Hence, of the six directors appointed, three are non-executive and
independent, and the Audit Committee, Remuneration Committee and the Nominating
Committee are constituted in compliance with the Code. The Company also believes
that the non-executive and independent directors should be selected for their diverse
expertise to provide a balance of views.
Our directors profiles are set out on pages 4 and 5 of this Annual Report. Our Board
members have the appropriate breadth and depth of expertise and experience in
the areas of accounting, finance, business, management, industry knowledge and
strategic planning.
c. Role of Executive Chairman (the Chairman) and Chief Executive Officer

(the CEO)
Principle 3: Clear division of responsibilities between Chairman and Chief Executive
Officer to ensure a balance of power and authority
Mr Ow Chio Kiat is the Chairman and CEO. The role of the Chairman is not separate
from that of the CEO as the Board believes that there is adequate accountability and
transparency as reflected in the internal controls established within the Group.
Executive Committee (Exco)
Moreover the Board has delegated to the Exco the powers to supervise the
management of the Groups business activities. The Exco currently comprises:
Mr Ow Chio Kiat Chairman

Mr Ow Cheo Guan Member
Mr Jones Christopher Adrian Member
Mr Ow Cheo Guan is the Executive Deputy Chairman of the Company. The Chairman
and the Executive Deputy Chairman are brothers.
The Excos responsibilities include reviewing and approving investments or

divestments, other than operational expenditure or disposals that are conducted in
the ordinary course of business.

16
c. Role of Executive Chairman (the Chairman) and Chief Executive Officer

(the CEO) (continued)
Executive Committee (Exco) (continued)
The Chairman is assisted by the management team in the daily operations and
administration of the Groups business activities and in the effective implementation
of the Groups business strategies. Information on key executives is set out on page
21 of this Annual Report.
The Chairman also oversees the workings of the Board, ensuring that the Board is
able to perform its duties and that there is a flow of information between the Board
and the management. The Chairman reviews most of the board papers before they
are presented to the Board. The management staff who have prepared the papers, or
who may provide additional insights, are invited to present the papers or attend the
board meetings.
d. Board membership
Principle 4: Formal and transparent process for appointment of new directors
We believe that board renewal must be an on-going process to ensure good

governance and maintain relevance to the changing needs of the Groups businesses.
Nominating Committee (NC)
To achieve a formal and transparent process for the appointment of directors to the
Board, the NC was set up on 1 September 2002. The NC is responsible for identifying
and selecting new directors. The Chairman of the NC is an independent director and is
not associated with the substantial shareholder, and the majority of the NC members
are independent. The NC currently comprises:
Lt-Gen (Retd) Ng Jui Ping Chairman

Mr Tan Guong Ching Member
Mr Ow Chio Kiat Member
The NCs principal functions are as follows:
Decide on and propose to the Board, for approval and implementation, the
assessment process including determining a set of objective performance
criteria for evaluating the Boards performance from year to year
Evaluate the Boards performance and the contributions of each director to the
effectiveness of the Board in accordance with the assessment process and
performance criteria mentioned above

17
d. Board membership (continued)
Nominating Committee (NC) (continued)
Consider, review and recommend to the Board any new Board appointments
or re-appointments of executive or non-executive directors
Determine annually whether or not a director is independent in accordance

with the guidelines on independence as set out in the Code
All the directors are subject to the provisions of the Companys Articles of Association
whereby one-third of the directors are required to retire and subject themselves to
re-election (one-third rotation rule) by the shareholders at every annual general
meeting (AGM).
A newly appointed director will have to submit himself for re-election at the AGM
immediately following his appointment and, thereafter, he is subjected to the one-third
rotation rule.
e. Board performance
Principle 5: Formal assessment of the effectiveness of the Board and contribution of
each director
The fiduciary responsibilities of the Board include the following:
Conduct itself with proper due diligence and care
Act in good faith
Comply with applicable laws
Act in the best interests of the Company and its shareholders at all times
In addition, the Board is charged with key responsibilities of leading the Group and
setting strategic directions.
The Company holds the belief that the Groups performance and that of the Board are
directly related. The Company assesses the Boards performance through its ability
to steer the Group in the right direction and the support it renders to the management
during difficult times. For the purpose of evaluating directors performance, the NC
takes into consideration a number of factors including the directors attendance,
participation and contributions at the main board and board committee meetings and
other Company activities.

18
e. Board performance (continued)
The NC uses its best efforts to ensure that directors appointed to the Board possess
the necessary background, experience, skills and knowledge in management,
business and finance, critical to the Groups business; and that each director is able
to contribute his perspective, thus allowing effective decisions to be made. The NC
conducts reviews of the Boards performance taking into account inputs from the
other Board members.
f. Access to information
Principle 6: Provision of complete, adequate and timely information prior to board
meetings and on an on-going basis
The Board is provided with timely and complete information, prior to Board meetings
and as and when necessary. New members are briefed on the business activities of
the Group.
The Board has separate and independent access to the senior management and the
Company Secretary at all times. If necessary, the Board may, in furtherance of their
duties, obtain independent professional advice at the Companys expense.
The Company Secretary attends all board meetings, ensures that established
procedures and regulatory requirements as well as board policies are complied with
and that the directors receive appropriate training as necessary.
2. REMUNERATION MATTERS
We believe in adopting a formal and transparent procedure for fixing the remuneration
packages of the directors and key management so as to ensure that the level of remuneration
should be appropriate to attract, retain and motivate the directors and key management
needed to run the Groups business successfully.
a. Remuneration Committee (RC)

Principle 7: Procedures for developing remuneration policies
The RC was formed to achieve this formal and transparent process to evaluate the
remuneration packages of the directors and key management. It comprises three
non-executive and independent directors. The RC currently comprises:
Mr Jones Christopher Adrian Chairman

Mr Tan Guong Ching Member
Lt-Gen (Retd) Ng Jui Ping Member

19
2. REMUNERATION MATTERS (continued)
a. Remuneration Committee (RC) (continued)
The RC is responsible for the following:
Reviewing and determining appropriate adjustments as well as approving

the remuneration of the non-executive directors, executive directors and
senior executives
Administering any share incentive scheme implemented by the Company,

and delegating the day-to-day administration of such plan or scheme to such
persons as the RC deems fit
Assuming other duties (if any) that may be required of the RC under the Code,
and by the Singapore Exchange Securities Trading Limited (the SGX-ST)
The RC meets at least once a year. In its deliberations, the RC takes into consideration
industry practices and norms for remuneration packages and may also obtain
independent professional advice, if necessary.
No director is involved in any discussion relating to his own remuneration, and terms
and conditions of service and the review of his own performance.
All directors are paid a fixed board fee and additional fees are payable to a
director for appointment as a chairman or member of a particular committee. The
recommendations made by the RC in relation to such board fees are subject to
approval by the shareholders at the AGM.
b. Level and mix of remuneration

Principle 8: Appropriate remuneration to attract, retain and motivate directors
The level and structure of the Groups remuneration policy are aligned with its long-term
interest and risk policies, as are appropriate to attract, retain and motivate directors
to provide good stewardship, as well as to retain and motivate key management
personnel to successfully manage the Group.

20
c. Disclosure on directors fees and remuneration

Principle 9: Clear disclosure on remuneration policy, level and mix
The directors fees and remuneration paid/payable by the Group are as follows:
2013 2012
US$000 US$000
Directors fees
Directors of the Company 159 166
Other directors of subsidiaries 4 4
Directors remuneration
Directors of the Company 938 936
Other directors of subsidiaries 328 323
1,429 1,429
The following table shows the composition (in percentage terms) of the remuneration
of the directors for the financial year ended 31 March 2013. They are grouped in
bands of S$250,000.
Directors
Remuneration bands Salaries Bonuses fees Others Total
% % % % %
S$750,000 to below
S$1,000,000
Ow Chio Kiat 77.9 5.7 16.4 100.0
S$250,000 to below
S$500,000
Ow Cheo Guan 70.9 17.1 7.0 5.0 100.0
Below S$250,000
Ow Yew Heng 54.5 10.3 24.8 10.4 100.0
Tan Guan Ching 100.0 100.0
Ng Jui Ping 100.0 100.0
Jones Christopher Adrian 100.0 100.0

21
d. Key executives and remuneration policy
The Company adopts a remuneration policy for staff comprising a fixed component
and a variable component. The fixed component is in the form of a base salary and
allowances. The variable component is in the form of a variable bonus that is linked to
the Group and each individuals performance.
Academic/ No. of
Professional years with Prior Working
Name and Designation Qualifications the Group Experience
Mr Tay Lai Wat BA (Accountancy) 18 Group Financial

Chief Operating Officer (University of Sterling) Controller for
Member of Institute First Capital
of Chartered Corporation Ltd
Accountants of (n.k.a. Guocoland
Scotland Limited)
Mr Leong Weng Choy Diploma in Marine 29 Chief Engineer
General Manager Engineering for Singa Ship
(Ship Management) (Singapore Management
Polytechnic)
Certificate of
Competency as
First Class Engineer
(Motorship)
Ms Chew Heng Siang Fellow Member of 15 Senior Finance
Christina The Association of Manager for the
Group Financial Chartered Certified then Sembawang
Controller/Joint Accountants Group of
Company Secretary MBA (University of companies
Warwick)
Mr Peter Pang Diploma in Marine 21 Superintendent
Fleet Quality/Safety Engineering for Thome Ship
Manager (Singapore Management Pte
Polytechnic) Ltd
Certificate of
Competency as
First Class Engineer
(Motorship)
Mr Koh Chee Fai Certificate of 23 3rd Engineer for
Engineer Competency as First Sime Darby Pte
Superintendent Class Engine Driver Ltd
(Motorship)

22
d. Key executives and remuneration policy (continued)
The remuneration bands and the composition (in percentage terms) of the remuneration
of the top five employees (excluding executive directors of the Company) of the Group
for the financial year ended 31 March 2013 are as follows:
Directors
Remuneration bands Salaries Bonuses fees Others Total
% % % % %
S$250,000 to below
S$500,000
Leong Weng Choy 78.6 14.9 0.7 5.8 100.0
Below S$250,000
Tay Lai Wat 54.8 10.9 1.9 32.4 100.0
Chew Heng Siang Christina 81.1 15.4 3.5 100.0
Peter Pang 77.7 14.7 7.6 100.0
Koh Chee Fai 75.9 16.0 8.1 100.0
During the financial year ended 31 March 2013, no key executive was an immediate
family member of any director of the Company.
3. ACCOUNTABILITY AND AUDIT

Principle 10: Board to present balanced and understandable assessment of the companys
performance, position and prospects
The Company is committed to discharging its obligations to provide prompt and thorough
disclosures.
The quarterly and annual financial results are released via SGXNET on a timely manner. The
Chief Operating Officer (COO) provides assurance to the Board on the integrity of these
financial statements through a written representation.

23
3. ACCOUNTABILITY AND AUDIT (continued)

Principle 11: Establishment of an Audit Committee with written terms of reference
The Audit Committee (AC) comprises three non-executive and independent directors.
Not less than two members have accounting or related financial management expertise or
experience. The AC currently comprises:
Mr Tan Guong Ching Chairman

Lt-Gen (Retd) Ng Jui Ping Member
Mr Jones Christopher Adrian Member
The AC performs the functions as set out in the Code, inter alia:
Nominates the external auditors for appointment or re-appointment and reviews

the level of audit fees, cost effectiveness of the audit and the independence and
objectivity of the external auditors
Reviews the audit plans and scope of work of the internal and external auditors
Reviews the findings of the internal and external auditors and the response from
management
Reviews the internal and external auditors evaluation of the adequacy of the Groups
system of accounting and internal controls
Reviews the Groups level of risk tolerance, its risk strategy and risk policies and
ensures that the Group set up a process for the accurate and timely monitoring of
large exposures and certain risk types of critical importance
Reviews the Groups overall risk assessment process and risk assessment framework
and reviews the parameters used in these measures and the methodology adopted
Reviews risk reports on the Group and reviews and monitors managements responses
to the findings
Reviews any interested person transactions

24
Reviews the Groups quarterly and annual results announcements and the financial
statements of the Group and of the Company as well as the auditors report thereon
before they are submitted to the Board for approval
Reviews legal and regulatory matters that may have a material impact on the
financial statements
Reports actions and minutes of the AC to the Board
The AC is given full access to, and receives full cooperation from the management. The
AC has full discretion to invite any director or management staff to attend its meetings. It is
empowered to investigate any matters relating to the Groups accounting, auditing, internal
controls and/or financial practices that are brought to its attention; and has full access
to records, resources and personnel to enable it to discharge its functions properly and
effectively.
Formal procedures are in place for the internal and external auditors to report their findings
and recommendations to the management and AC. The internal and external auditors also
have unrestricted access to the AC. In addition, the AC also meets with the internal and
external auditors separately, at least once a year, without the presence of the management,
in order to have free and unfiltered access to information that it may require.
The Group has in place the Whistle-Blower Policy and Procedures, pursuant to which staff
may, in confidence, raise concerns about possible improprieties in matters of financial
reporting or other matters. This helps to ensure that arrangements are in place for the
independent investigation of such matters and for appropriate follow up action. All employees
may address their report to the Whistle-Blower Panel (comprising the Head of Internal Audit,
Director of Human Resources and the General Counsel) and/or the Chairman of the Audit
Committee. Direct contact details of the Whistle-Blower Panel and the Chairman of the Audit
Committee were made available to all staff.
External Auditors
Details of the aggregate amount of fees paid to the external auditors for the financial year are
set out in note 5 of the Notes to the Financial Statements, found on page 58 of the Annual
Report.
There were no non-audit services provided by the external auditors during the financial year
ended 31 March 2013.
The Group has complied with Rules 712 and 715 of the SGX Listing Manual in relation to
the appointment of external auditors for the Company, its subsidiaries and a significant
associated company. KPMG LLP has been engaged to audit the accounts of all companies
within the Group, except for the subsidiary that is not required to be audited by the laws of
the country of incorporation.

25
Internal Audit
Principle 13: Establishment of an internal audit function that is independent of the functions
it audits
The Group is supported by a well-established compliance and internal audit department. The
Internal Auditor (the IA) reports to the Chairman of the AC on audit matters and to the COO
on administrative matters.
The IA plans the internal audit program which includes a review of the Groups risks
assessments and the effectiveness of the Groups material internal controls to address the
identified risks, in consultation with, but independent of the management.
4. INTERNAL CONTROLS
Principle 12: Sound system of internal controls
a. Risk management
The Group has identified the following key risk areas:
Investment risk
Operational risk
Compliance and legal risk
Financial risk
i. Investment risk
Investments and acquisitions are undertaken only after extensive and

satisfactory due diligence work have been conducted and must be consistent
with the Groups strategies in focusing on the shipping, agency and logistics
industries. All major investment proposals are carefully evaluated, must meet
minimum threshold hurdles and be assessed within tolerable risks parameters
and they must be submitted to the Board of Directors for approval.
ii. Operational risk
The Groups operating risk is managed at each operating unit and monitored
at the Group level. As operational risk cannot be eliminated completely, the
Group has to weigh the cost and benefit in managing these risks. The Group
maintains sufficient insurance coverage taking into account the cost of cover
and the risk profiles of the business in which it operates. The Internal Audit
team complements the managements role by providing an independent
perspective on the controls that help to mitigate any operational risks.

26
4. INTERNAL CONTROLS (continued)
a. Risk management (continued)
iii. Compliance and legal risk
Although the operating business units are responsible to ensure compliance

with the relevant laws and regulations, the internal legal department also assists
in identifying, monitoring and providing the necessary support to manage the
legal risks across the Group. Advice from external legal advisors are obtained
where necessary.
iv. Financial risk
The Groups financial risk managements objectives and policies are set out in
note 25 of the Notes to the Financial Statements, found on pages 74 to 82 of
the Annual Report.
Based on the internal controls established and maintained by the Group, work
performed by the internal and external auditors, and reviews performed by
management and various Board Committees, the Board, with the concurrence of the
AC, is of the opinion that the Groups system of risk management and internal controls
are adequate to address the financial, operational and compliance risks, which the
Group considers relevant and material to its operations.
The Board notes that the system of risk management and internal controls established
by the Group provides reasonable, but not absolute assurance that the Group will not
be affected by any event that could be reasonably foreseen as it strives to achieve
its business objectives. In this regards, the Board also notes that no system can
provide absolute assurance against the occurrence of material error, poor judgement
in decision-making, human error, fraud or other irregularities.
b. Dealings in Companys securities
The Group has complied with the best practices in dealings in securities, as set out
under Rule 1207(19) of the SGX-ST Listing Manual. In this regard, the Group has issued
and implemented internal guidelines, to provide appropriate guidance to directors
and staff on dealings in the Companys securities. All directors and staff of the Group
are not allowed to trade in the Companys securities during the two weeks before
the release of the Companys first three quarters results and during the one month
before the release of the full year results. To facilitate compliance, quarterly reminders
are issued to all directors and staff prior to the applicable trading black-outs. Our
directors and staff, who are expected to observe insider trading laws at all times, are
also reminded not to deal in the Companys securities on short-term considerations,
or whilst in possession of unpublished material price-sensitive information.

27
5. COMMUNICATION WITH SHAREHOLDERS

Principle 14: Regular, effective and fair communication with shareholders
Principle 15: Greater shareholder participation at AGMs
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 through SGXNET to the SGXs website in a timely manner to ensure fair disclosure
of information.
All shareholders receive the annual report and the notices of shareholders meetings. The
notices for such meetings are also advertised in a local newspaper and made available on
SGXNET. The chairpersons of the various board committees and the external auditors are
invited to be present at our general meetings, to address any queries from our shareholders.
6. INTERESTED PERSON TRANSACTIONS (IPT)
The Company has established a procedure for recording and reporting interested person
transactions. Details of significant interested person transactions for the financial year ended
31 March 2013 are set out below:
Aggregate value of all IPT

Aggregate value of all IPT conducted under
during the financial year shareholders mandate
ended 31 March 2013 pursuant to Rule 920
(excluding transactions (excluding transactions
Name of interested person below S$100,000) below S$100,000)
Paid to a subsidiary of
Stamford Land Corporation Ltd
Rental expense S$194,000
The above IPT was concluded on normal commercial terms.
Save as otherwise disclosed, there were no other material contracts or loan entered into by
the Company and its subsidiaries involving the interests of the CEO, directors or controlling
shareholder, which are either subsisting at the end of the financial year or, if not then
subsisting, entered into since the end of the previous financial year.

28
FINANCIAL STATEMENTS
29 Directors Report
32 Statement by Directors
33 Independent Auditors Report
35 Consolidated Income Statement
36 Consolidated Statement of Comprehensive Income
37 Statements of Financial Position
38 Consolidated Statement of Changes in Equity
39 Consolidated Statement of Cash Flows
41 Notes to the Financial Statements

29
DIRECTORS REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013
The directors present their report to the members of the Company together with the audited financial
statements for the financial year ended 31 March 2013.
DIRECTORS
The directors in office at the date of this report are as follows:
Ow Chio Kiat (Executive Chairman)

Ow Cheo Guan (Executive Deputy Chairman)
Ow Yew Heng
Tan Guong Ching
Ng Jui Ping
Jones Christopher Adrian (Appointed on 21 August 2012)
DIRECTORS INTERESTS
According to the register kept by the Company for the purposes of Section 164 of the Singapore
Companies Act, Chapter 50 (the Act), particulars of interests of directors who held office at the end
of the financial year (including those held by their spouses and infant children) in shares, debentures,
warrants and share options in the Company are as follows:
Holdings Holdings
at beginning at end
of the year of the year
Singapore Shipping Corporation Limited

Ordinary shares
Ow Chio Kiat
Interests held 153,532,500 153,532,500
Deemed interests 7,340,000 7,340,000
Ow Cheo Guan
Deemed interests 13,200,000 13,200,000
By virtue of Section 7 of the Act, Mr Ow Chio Kiat is deemed to have an interest in all the subsidiaries
of the Company at the beginning and at the end of the financial year.
There were no changes in any of the abovementioned interests in the Company between the end of
the financial year and 21 April 2013.
Neither at the end of nor at any time during the financial year was the Company a party to any
arrangement whose objects are, or one of whose objects is, to enable the directors of the Company
to acquire benefits by means of the acquisition of shares in or debentures of the Company or any
other body corporate.

30
DIRECTORS REPORT
DIRECTORS INTERESTS (continued)
Except for salaries, bonuses and fees and those benefits that are disclosed in note 27 to the financial
statements, since the end of the last financial year, no director has received or become entitled to
receive a benefit by reason of a contract made by the Company, or a related corporation with the
director, or with a firm of which he is a member, or with a company in which he has a substantial
financial interest.
SHARE OPTIONS
The Singapore Shipping Corporation Limited Share Option Plan (the Option Plan) which was
approved at the Companys Extraordinary General Meeting held on 30 August 2002, has expired on
30 August 2012.
Since the commencement of the Option Plan, no options have been granted.
SHARE-BASED INCENTIVE
The Singapore Shipping Corporation Limited Performance Share Plan (the Performance Plan) which
was approved at the Companys Extraordinary General Meeting held on 30 August 2002 has expired
on 30 August 2012.
Since the commencement of the Performance Plan, no shares have been awarded.
AUDIT COMMITTEE
The members of the Audit Committee during the financial year and at the date of this report are:
Tan Guong Ching (Chairman)

Ng Jui Ping
Jones Christopher Adrian (Appointed on 21 August 2012)
Bengt Christer Olsson (Resigned on 21 August 2012)
All members of the Audit Committee are non-executive directors.
The Audit Committee performs the functions specified in Section 201B of the Act, the SGX Listing
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 their work, the results of their examination and evaluation of the Companys internal
accounting control system.

31
AUDIT COMMITTEE (continued)
The Audit Committee also reviewed the following:
assistance provided by the Companys officers to the internal and external auditors;
quarterly financial information and annual financial statements of the Group and the Company
prior to their submission to the directors of the Company for adoption; and
interested person transactions (as defined in Chapter 9 of the SGX Listing Manual).
The Audit Committee has full access to management and is given the resources required for it to
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.
The Audit Committee is satisfied with the independence and objectivity of the external auditors and
has recommended to the Board of Directors that the auditors, KPMG LLP, be nominated for re-
appointment as auditors at the forthcoming Annual General Meeting of the Company.
INTERNAL CONTROLS
Based on the internal controls established and maintained by the Group, work performed by the
internal and external auditors, and reviews performed by management, various Board Committees
and the Board; the Audit Committee and the Board are of the opinion that the Groups internal
controls addressing financial, operational and compliance risks, were adequate as at 31 March 2013.
AUDITORS
In appointing our auditors for the Company, subsidiaries and a significant associated company, we
have complied with Rules 712 and 715 of the SGX Listing Manual.
The auditors, KPMG LLP, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors
Ow Chio Kiat Ow Cheo Guan

Director Director
Singapore
30 May 2013

32
STATEMENT BY DIRECTORS
In our opinion:
(a) the financial statements set out on pages 35 to 90 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 2013 and the
results, changes in equity and cash flows of the Group for the financial year ended on that
date, in accordance with the provisions of the Singapore Companies Act, Chapter 50 and
Singapore Financial Reporting Standards; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will
be able to pay its debts as and when they fall due.
The Board of Directors has, on the date of this statement, authorised these financial statements
for issue.
On behalf of the Board of Directors
Ow Chio Kiat Ow Cheo Guan

Director Director
Singapore
30 May 2013

33
INDEPENDENT AUDITORS REPORT

MEMBERS OF THE COMPANY
SINGAPORE SHIPPING CORPORATION LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Singapore Shipping Corporation

Limited (the Company) and its subsidiaries (the Group), which comprise the statements of financial
position of the Group and the Company as at 31 March 2013, the income statement, statement
of comprehensive income, statement of changes in equity and statement of cash flows of the
Group for the financial year then ended, and a summary of significant accounting policies and other
explanatory information, as set out on pages 35 to 90.
Managements responsibility for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair
view in accordance with the provisions of the Singapore Companies Act, Chapter 50 (the Act) and
Singapore Financial Reporting Standards, and for devising and maintaining a system of internal
accounting controls sufficient to provide a reasonable assurance that assets are safeguarded
against loss from unauthorised use or disposition; and transactions are properly authorised and that
they are recorded as necessary to permit the preparation of true and fair profit and loss accounts
and balance sheets and to maintain accountability of assets.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Singapore Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors judgement, including
the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to
the entitys preparation of the financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.

34
INDEPENDENT AUDITORS REPORT

MEMBERS OF THE COMPANY
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 Financial Reporting Standards to give a true and fair view of the state of affairs of the
Group and of the Company as at 31 March 2013 and the results, changes in equity and cash flows
of the Group for the financial year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In our opinion, the accounting and other records required by the Act to be kept by the Company and
by those subsidiaries incorporated in Singapore of which we are the auditors have been properly
kept in accordance with the provisions of the Act.
KPMG LLP
Public Accountants and
Certified Public Accountants
Singapore
30 May 2013

35
CONSOLIDATED INCOME STATEMENT

Note 2013 2012

US$000 US$000
Revenue 4 19,914 19,711

Other operating income 1,139 190
Depreciation expense on property, plant and equipment 11 (4,317) (3,934)
Vessel operation and crew management costs (3,736) (3,414)
Staff and crew costs (5,218) (5,125)
Other operating expenses (597) (719)
Results from operating activities 5 7,185 6,709
Finance income 6 322 56
Finance costs on bank borrowing 7 (814) (899)
Exchange differences 8 88 162
Share of results of associated company, net of tax 26 27
Profit before taxation 6,807 6,055
Taxation 9 11
Profit for the year 6,807 6,066
Attributable to:
Owners of the Company 6,807 6,066
Earnings per share (US cents): 10

Basic 1.6 1.4
Diluted 1.6 1.4
The accompanying notes form an integral part of these financial statements.

36
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2013 2012
US$000 US$000
Profit for the year 6,807 6,066
Cash flow hedges:

Effective portion of changes in fair value of cash flow hedges (109) (564)
Realised and transferred to income statement 253 258
144 (306)
Available-for-sale financial assets:
Fair value realised and transferred to income statement (4)
Net change in currency translation reserve 52 11
Other comprehensive income for the year, net of tax 196 (299)
Total comprehensive income for the year 7,003 5,767
Attributable to:
Owners of the Company 7,003 5,767

37
STATEMENTS OF FINANCIAL POSITION

AS AT 31 MARCH 2013
The Group The Company

Note 2013 2012 2013 2012
US$000 US$000 US$000 US$000
Non-current assets
Property, plant and equipment 11 61,797 66,018
Subsidiaries 12 34,283 36,895
Associated company 13 3,069 3,043
Other assets 14 233 231
65,099 69,292 34,283 36,895
Current assets
Inventories 251 201
Trade and other receivables 15 612 779 2,754 4,274
Financial assets held-for-trading 16 1,329 1,916
Cash and cash equivalents 17 17,240 12,380 13,967 4,940
19,432 15,276 16,721 9,214
Less:
Current liabilities
Trade and other payables 18 3,023 1,897 5,695 3,843
Bank borrowing 19 4,520 4,520
7,543 6,417 5,695 3,843
Net current assets 11,889 8,859 11,026 5,371
Non-current liabilities
Bank borrowing 19 19,212 23,732
Derivative financial liabilities 20 428 590
19,640 24,322
Net assets 57,348 53,829 45,309 42,266
Equity attributable to owners

of the Company
Share capital 21 31,665 31,665 31,665 31,665
Other reserves 22 (266) (462)
Retained earnings 25,949 22,626 13,644 10,601
Total equity 57,348 53,829 45,309 42,266

38
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Total
attributable
Currency to owners
Share Hedging translation Retained of the
Note capital reserve reserve earnings Company
US$000 US$000 US$000 US$000 US$000
Balance at
1 April 2012 31,665 (590) 128 22,626 53,829
Total comprehensive
income for the year 144 52 6,807 7,003
Distributions to owners
Dividends paid 23 (3,502) (3,502)
Unclaimed dividends 18 18
Balance at
31 March 2013 31,665 (446) 180 25,949 57,348
Total
attributable
Currency to owners
Share Fair value Hedging translation Retained of the
Note capital reserve reserve reserve earnings Company
US$000 US$000 US$000 US$000 US$000 US$000
Balance at
1 April 2011 31,665 4 (284) 117 20,174 51,676
Total comprehensive
income for the
year (4) (306) 11 6,066 5,767
Distributions to
owners
Dividends paid 23 (3,614) (3,614)
Balance at
31 March 2012 31,665 (590) 128 22,626 53,829

39
CONSOLIDATED STATEMENT OF CASH FLOWS

Note 2013 2012

US$000 US$000
Cash flows from operating activities

Adjustments for:
Depreciation expense on property, plant and equipment 11 4,317 3,934
Gain on disposal of property, plant and equipment (1)
Interest income 6 (103) (57)
Dividend income 6 (26) (24)
Gain on disposal of available-for-sale financial assets 6 (4)
Net change in fair value of financial assets held-for-trading 6 (193) 29
Finance costs on bank borrowing 7 814 899
Net change in fair value of derivative financial assets /
liabilities 8 2 (2)
Share of results of associated company, net of tax (26) (27)
11,592 10,802
Changes in working capital:
Inventories (50) 5
Trade and other receivables 131 61
Trade and other payables 1,045 29
Cash generated from operations 12,718 10,897
Tax refunded 11
Net cash from operating activities 12,718 10,908
Cash flows from investing activities

Purchase of property, plant and equipment 11 (30) (33)
Payments for drydocking expenditure 11 (66) (431)
Purchase of financial assets held-for-trading (1,685) (2,215)
Interest received 110 51
Dividends received from quoted equity securities 26 24
Proceeds from maturity of financial assets held-for-trading 2,504 1,000
Proceeds from sale of financial assets 7
Proceeds from sale of property, plant and equipment 1
Net cash from / (used) in investing activities 859 (1,596)

40
CONSOLIDATED STATEMENT OF CASH FLOWS

Note 2013 2012

US$000 US$000
Cash flows from financing activities

Repayment of bank borrowing (4,520) (4,404)
Payment of finance costs on bank borrowing (785) (875)
Unclaimed dividends 18
Dividends paid 23 (3,502) (3,614)
Net cash used in financing activities (8,789) (8,893)
Change in cash and cash equivalents 4,788 419

Cash and cash equivalents at beginning of the year 12,380 11,942
Effects of exchange rate fluctuations on cash and
cash equivalents 72 19
Cash and cash equivalents at end of the year 17 17,240 12,380

41
NOTES TO THE FINANCIAL STATEMENTS

These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Board of Directors on 30 May 2013.
1. DOMICILE AND ACTIVITIES
Singapore Shipping Corporation Limited (the Company) is incorporated in Singapore and

listed on the Singapore Exchange. Its registered office is at 200 Cantonment Road, #09-01
Southpoint, Singapore 089763.
The principal activity of the Company is that of investment holding. The principal activities of
the Group consist of investment holding, ship owning and ship management.
The consolidated financial statements relate to the Company and its subsidiaries (together
referred to as the Group and individually as Group entities) and the Groups interests in
associated companies.
2. BASIS OF PREPARATION
(a) Statement of compliance
The financial statements have been prepared in accordance with the Singapore
Financial Reporting Standards (FRSs).
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis except for
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 the currency that best reflects the economic substance of the underlying events
and circumstances relevant to that entity (the functional currency).
The financial statements are presented in United States dollars (US$), which is the
Companys functional currency. All financial information presented in US$ has been
rounded to the nearest thousand, unless otherwise stated.

42

2. BASIS OF PREPARATION (continued)
(d) Use of estimates and judgements
The preparation of the financial statements in conformity with FRSs requires

management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions

to accounting estimates are recognised in the period in which the estimates are
revised and in any future periods affected.
Information about estimation uncertainties and critical judgements in applying

accounting policies that have the most significant effect on the amounts recognised
in the financial statements or risk of resulting in a material adjustment within the next
financial year are included in the following notes:
Note 11 Impairment assessment, depreciation, useful lives and residual

values of vessels
Note 12 Impairment assessment on investments in subsidiaries
Note 13 Impairment assessment on investment in an associated company
Note 15 Impairment assessment on receivables owing by subsidiaries
Note 26 Valuation of financial instruments.
(e) Changes in accounting policies
With effect from 1 April 2012, the Group has adopted the following revised FRS which
is relevant to the Groups operations:
Amendments to FRS 107 Disclosures Transfers of Financial Assets.
The adoption of the above FRS has no material impact on the earnings per share.

43
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented
in these financial statements and have been applied consistently by the Group entities,
except as explained in note 2(e), which addresses changes in accounting policies.
(a) Basis of consolidation
Business combinations
Business combinations are accounted for using the acquisition method as at the
acquisition date, which is the date on which control is transferred to the Group. Control
is the power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities. In assessing control, the Group takes into consideration
potential voting rights that are currently exercisable.
The Group measures goodwill at the acquisition date as:
the fair value of the consideration transferred; plus
the recognised amount of any non-controlling interests in the acquiree; plus
if the business combination is achieved in stages, the fair value of the pre-
existing equity interest in the acquiree,
over the net recognised amount (generally fair value) of the identifiable assets acquired
and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in

profit or loss.
The consideration transferred does not include amounts related to the settlement of
pre-existing relationships. Such amounts are generally recognised in profit or loss.
Any contingent consideration payable is recognised at fair value at the acquisition

date and included in the consideration transferred. If the contingent consideration is
classified as equity, it is not re-measured and settlement is accounted for within equity.
Otherwise, subsequent changes to the fair value of the contingent consideration are
recognised in profit or loss.
Costs related to the acquisition, other than those associated with the issue of debt or
equity securities, that the Group incurs in connection with a business combination are
expensed as incurred.

44

3. SIGNIFICANT ACCOUNTING POLICIES (continued)
(a) Basis of consolidation (continued)
Subsidiaries
Subsidiaries are entities controlled by the Group. Control is the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities,
generally accompanying a shareholding of more than one half of the voting rights.
The existence and effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the Group controls another entity.
The financial statements of subsidiaries are included in the consolidated financial

statements from the date that control commences until the date that control ceases.
Losses applicable to the non-controlling interests in a subsidiary are allocated to the

non-controlling interests even if doing so causes the non-controlling interests to have
a deficit balance.
Acquisition of non-controlling interests
Acquisitions of non-controlling interests are accounted for as transactions with

owners in their capacity as owners and therefore no goodwill is recognised as a result.
Adjustments to non-controlling interests arising from transactions that do not involve
the loss of control are based on a proportionate amount of the net assets of the
subsidiary. Any difference between the adjustment to non-controlling interests and
the fair value of consideration paid is recognised directly in equity and presented as
part of equity attributable to owners of the Company.
Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the
subsidiary, any non-controlling interests and the other components of equity related
to the subsidiary. Any surplus or deficit arising on the loss of control is recognised
in the profit or loss. If the Group retains any interest in the previous subsidiary, then
such interest is measured at fair value at the date that control is lost. Subsequently, it
is accounted for as an equity-accounted investee or as an available-for-sale financial
asset depending on the level of influence retained.

45
(a) Basis of consolidation (continued)
Investments in associated companies
Associated companies are those entities in which the Group has significant influence,
but not control, over the financial and operating policies of these entities. Significant
influence is presumed to exist when the Group holds between 20% and 50% of the
voting power of another entity.
Investments in associated companies are accounted for using the equity method
(equity-accounted investees) and are recognised initially at cost. The cost of the
investments includes transaction costs.
The consolidated financial statements include the Groups share of the profit or
loss and other comprehensive income of the equity-accounted investees, after
adjustments to align the accounting policies of the equity-accounted investees
with those of the Group, where the amounts involved are considered significant to
the Group, from the date that significant influence commences until the date that
significant influence ceases.
When the Groups share of losses exceeds its interest in an equity-accounted

investee, the carrying amount of the investment, together with any long-term
investments that form part thereof, is reduced to zero, and the recognition of further
losses is discontinued except to the extent that the Group has an obligation to fund
the investees operations or has made payments on behalf of the investee.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses
arising from intra-group transactions, are eliminated in preparing the consolidated
financial statements. Unrealised gains arising from transactions with equity-accounted
investees are eliminated against the investment to the extent of the Groups interest
in the investee. Unrealised losses are eliminated in the same way as unrealised gains,
but only to the extent that there is no evidence of impairment.
Subsidiaries and associated companies in the separate financial statements
Investments in subsidiaries and associated companies are stated in the Companys

statement of financial position at cost less accumulated impairment losses.

46

(b) Foreign currency
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
currencies of the Group entities are either the US$ or Singapore dollar (S$).
Monetary assets and liabilities denominated in foreign currencies at the end of the
reporting period are retranslated to the functional currency at the exchange rate at
that date.
Non-monetary assets and liabilities denominated in foreign currencies that are

measured in terms of historical cost are translated into the functional currency at
the exchange rate at the date of the transaction. Non-monetary assets and liabilities
denominated in foreign currencies that 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.
Foreign exchange differences arising on retranslation are recognised in profit or

loss, except for the differences arising on the retranslation of monetary items that in
substance form part of the Groups net investment in a foreign operation and which
are recognised in other comprehensive income.
Foreign operations
The assets and liabilities of foreign operations, excluding goodwill and fair value
adjustments arising on acquisition of the foreign operations, are translated to US$ at
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
of the transactions. Goodwill and fair value adjustments arising on the acquisition of
a foreign operation on or after 1 January 2005 are treated as assets and liabilities of
the foreign operation and translated at the exchange rates at the end of the reporting
period. For acquisitions prior to 1 January 2005 the exchange rates at the date of
acquisition were used.
Foreign currency differences arising on translation are recognised in other

comprehensive income and presented as currency translation reserve in equity.
However, if the foreign operation is a non-wholly-owned subsidiary, then the relevant
proportionate share of the translation difference is allocated to the non-controlling
interests. When a foreign operation is disposed of, such that control, significant
influence or joint control is lost, the cumulative 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.

47
(b) Foreign currency (continued)
Foreign operations (continued)
When the Group disposes of only part of its interest in a subsidiary that includes a
foreign operation while retaining control, the relevant proportion of the cumulative
amount in the currency translation reserve is reattributed to non-controlling interests.
When the Group disposes of only part of its investment in an associated company,
that includes a foreign operation, while retaining significant influence, the relevant
proportion of the cumulative amount in the currency translation reserve is reclassified
to profit or loss.
When the settlement of a monetary item receivable from or payable to a foreign

operation is neither planned nor likely in the foreseeable future, foreign exchange
gains and losses arising from such a monetary item are considered to form part of a
net investment in a foreign operation. These are recognised in other comprehensive
income, and are presented as currency translation reserve in equity.
(c) Revenue
Revenue comprises charter hire and other shipping income. Provided it is probable
that the economic benefits will flow to the Group, and that the revenue and costs, if
applicable, can be measured reliably, revenue is recognised in the profit or loss in the
following manners:
Charter hire income is recognised daily in accordance with the terms of the
charter hire agreement.
Other shipping income is recognised as and when ship management and other
related shipping services are rendered.
(d) Government grants
Cash grants received from the government in relation to the Small and Medium-Size
Enterprise cash grant and cash payout from the Productivity and Innovation Credit
Scheme are recognised in profit or loss as other income upon receipt.
(e) Operating lease payments
Payments made under operating leases are recognised in profit or loss on a straight-
line basis over the term of the lease. Lease incentives received are recognised as an
integral part of the total lease expense, over the term of the lease.
Contingent lease payments are accounted for by revising the minimum lease payments
over the remaining term of the lease when the lease adjustment is confirmed.

48

(f) Finance income
Finance income comprises interest income on funds invested, dividend income, gains
or losses on disposal of available-for-sale financial assets, and changes in the fair
value of 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.
Dividend income is recognised in profit or loss on the date that the Groups right to
receive payment is established, which in the case of quoted securities, is normally the
ex-dividend date.
(g) Finance costs on bank borrowing
Finance costs comprise fees and interest expense on bank borrowing and interest
rate swaps.
Finance costs that are not directly attributable to the acquisition, construction or
production of a qualifying asset are recognised in profit or loss using the effective
interest method.
(h) Exchange differences
Exchange differences comprise net foreign exchange gains or losses and net change
in fair value of foreign exchange options and forward contracts recognised in profit
or loss.
The foreign exchange gains and losses are, however, reported separately if they are
material.
(i) Taxation
Tax expense which comprises current and deferred tax, is recognised in profit or loss
except to the extent that it relates to a business combination, or items recognised
directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss
for the financial year, using tax rates enacted or substantively enacted at the reporting
date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying

amounts of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. Deferred tax is not recognised for:

49
(i) Taxation (continued)
temporary differences on the initial recognition of assets or liabilities in

a transaction that is not a business combination and that affects neither
accounting nor taxable profit or loss;
temporary differences related to investments in subsidiaries and associated

companies to the extent that the Group is able to control the timing of the
reversal of the temporary difference and it is probable that they will not reverse
in the foreseeable future; and
taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred taxes reflects the tax consequences that would follow
the manner in which the Group expects, at the end of the reporting period, to recover
or settle the carrying amount of its assets and liabilities. Deferred tax is measured at
the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the
reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to
offset current tax liabilities and assets and they relate to taxes levied by the same
tax authority on the same taxable entity, or on different tax entities, but they intend to
settle current tax liabilities and assets on a net basis or their tax assets and liabilities
will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible
temporary differences, to the extent that it is probable that future taxable profits will
be available against which they can be utilised. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
(j) Earnings per share
The Group presents basic and diluted earnings per share data for its ordinary shares.
Basic earnings per share, is calculated by dividing the profit or loss attributable to
ordinary shareholders of the Company by the weighted average number of ordinary
shares outstanding during the financial year. Diluted earnings per share is determined
by adjusting the profit or loss attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding, for the effects of all dilutive potential
ordinary shares.

50

(k) Segment reporting
An operating segment is a component of the Group that engages in business activities

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 operating results are reviewed regularly by the chief operating decision
maker to make decisions about resources to be allocated to the segment and to
assess its performance, and for which discrete financial information is available.
Segment results that are reported to the chief operating decision maker include
items directly attributable to a segment as well as those that can be allocated on a
reasonable basis. Unallocated items comprise mainly finance income, finance costs,
exchange differences, corporate assets and liabilities, and income tax assets and
liabilities.
Segment capital expenditure is the total cost incurred during the year to acquire
property, plant and equipment.
(l) Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated
depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset.
When parts of an item of property, plant and equipment have different useful lives,
they are accounted for as separate items (major components) of property, plant and
equipment.
The gain or loss on disposal of an item of property, plant and equipment is determined
by comparing the proceeds from disposal with the carrying amount of property, plant
and equipment, and is recognised net within other income or other expenses in profit
or loss.
Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is

recognised in the carrying amount of the item if it is probable that the future economic
benefits embodied within the component will flow to the Group and its cost can be
measured reliably. The carrying amount of the replaced component is derecognised.
The costs of the day-to-day servicing of property, plant and equipment are recognised
in profit or loss as incurred.

51
(l) Property, plant and equipment (continued)
Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant
components 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.
Depreciation is recognised as an expense in profit or loss on a straight-line basis

over the estimated useful lives of each component of an item of property, plant and
equipment, from the date that the property, plant and equipment are installed and are
ready for use.
Drydocking expenditure is capitalised when incurred and depreciated on a straight-

line basis over the period to the next anticipated drydocking date.
The estimated useful lives for the current and comparative periods are as follows:
Vessels 15 to 30 years
Drydocking expenditure 2 to 3 years
Renovations, furniture and fittings 5 years
Equipment 3 to 5 years
Computers 3 years
Depreciation methods, useful lives and residual values are reviewed at each financial
year-end and adjusted if appropriate.
(m) Goodwill
For the measurement of goodwill at initial recognition, see note 3 (a).
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses. In respect of

the equity-accounted investees, the carrying amount of goodwill is included in the
carrying amount of the investment, and an impairment loss on such an investment is
not allocated to any asset, including goodwill, that forms part of the carrying amount
of the equity-accounted investee.

52

(n) Non-derivative financial assets
The Group initially recognises loans and receivables and deposits on the date that
they are originated. Financial assets classified as held-for-trading are recognised by
the Group on the settlement date of the investments.
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 the financial asset in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred. Any interest in transferred
financial assets that is created or retained by the Group is recognised as a separate
asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement
of financial position when, and only when, the Group has a legal right to offset the
amounts and intends either to settle on a net basis or to realise the asset and settle
the liability simultaneously.
The Group classifies non-derivative financial assets into the following categories:
financial assets at fair value through profit or loss, and loans and receivables.
Financial assets at fair value through profit or loss
A financial asset is classified at fair value through profit or loss if it is classified as

held-for-trading or is designated as such upon initial recognition. Financial assets are
designated at fair value through profit or loss if the Group manages such investments
and makes purchase and sale decisions based on their fair value in accordance
with the Groups documented risk management or investment strategy. Attributable
transaction costs are recognised in profit or loss as incurred. Financial assets at
fair value through profit or loss are measured at fair value, and changes therein are
recognised in profit or loss.
Financial assets designated at fair value through profit or loss include equity securities
that otherwise would have been classified as available-for-sale.
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that
are not quoted in an active market. Such assets are recognised initially at fair value
plus any directly attributable transaction costs. Subsequent to initial recognition,
loans and receivables are measured at amortised cost using the effective interest
method, less any impairment losses.
Loans and receivables comprise cash and cash equivalents, and trade and other
receivables.
Cash and cash equivalents comprise cash at bank and in hand, and fixed deposits.

53
(o) Derivative financial instruments
The Group holds derivative financial instruments to hedge its foreign currency and
interest rate risk exposures.
On initial designation of the derivative as the hedging instrument, the Group formally
documents the relationship between the hedging instrument and the hedged item,
including the risk management objectives and strategy in undertaking the hedge
transaction and the hedged risk, together with the methods that will be used to assess
the effectiveness of the hedging relationship. The Group makes an assessment,
both at the inception of the hedge relationship as well as on an ongoing basis, of
whether the hedging instruments are expected to be highly effective in offsetting
the changes in the fair value or cash flows of the respective hedged items attributable
to the hedged risk, and whether the actual results of each hedge are within a range of
80% - 125%. For a cash flow hedge of a forecast transaction, the transaction should
be highly probable to occur and should present an exposure to variations in cash
flows that could ultimately affect reported profit or loss.
Derivatives are recognised initially at fair value and the attributable transaction costs
are recognised in profit or loss as incurred. Subsequent to initial recognition, the
derivatives are measured at fair value, and changes therein are accounted for as
described below.
Cash flow hedges
When a derivative is designated as the hedging instrument in a hedge of the variability

in cash flows attributable to a particular risk associated with a recognised asset
or liability or a highly probable forecast transaction that could affect profit or loss,
the effective portion of changes in fair value of the derivative is recognised in other
comprehensive income and presented in the hedging reserve in equity. Any ineffective
portion of changes in the fair value of the derivative is recognised immediately in profit
or loss.
The amount accumulated in equity is reclassified to profit or loss in the same period
that the hedged item affects profit or loss. If the hedging instrument no longer meets
the criteria for hedge accounting, expires or is sold, terminated or exercised, or the
designation is revoked, then hedge accounting is discontinued prospectively. If the
forecast transaction is no longer expected to occur, then the balance in equity is
reclassified to profit or loss.
Other non-trading derivatives
When a derivative financial instrument is not designated in a hedge relationship that

qualifies for hedge accounting, all changes in its fair value are recognised immediately
in profit or loss.

54

(p) Impairment of non-derivative financial assets
A financial asset not carried at fair value through profit or loss is assessed at the end
of each reporting period to determine whether there is any objective evidence that it is
impaired. A financial asset is impaired if objective evidence indicates that a loss event
has occurred after the initial recognition of the asset, and that the loss event has a
negative effect on the estimated future cash flows of that asset that can be estimated
reliably.
Objective evidence that financial assets are impaired can include default or
delinquency by a debtor; restructuring of an amount due to the Group on terms that
the Group would not consider otherwise; or indications that a debtor or issuer will
enter bankruptcy.
Loans and receivables
The Group considers evidence of impairment for loans and receivables at both a
specific asset and collective level. All individually significant loans and receivables
are assessed for specific impairment. All individually significant loans and receivables
found not to be specifically impaired are then collectively assessed for any impairment
that has been incurred but not yet identified. Loans and receivables that are not
individually significant are collectively assessed for impairment in groups that share
similar risk characteristics.
In assessing collective impairment, the Group uses historical trends of the probability
of default, the timing of recoveries and the amount of loss incurred, adjusted for
managements judgement as to whether current economic and credit conditions
are such that the actual losses are likely to be greater or less than suggested by
historical trends.
An impairment loss in respect of loans and receivables measured at amortised cost is

calculated as the difference between its carrying amount and the present value of the
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
loans and receivables. When a subsequent event causes the amount of impairment
loss to decrease, the decrease in impairment loss is reversed through profit or loss.
(q) Impairment of non-financial assets
The carrying amounts of the Groups non-financial assets, other than inventories
are reviewed at each reporting date to determine whether there is any indication
of impairment. If any such indication exists, then the assets recoverable amount is
estimated. For goodwill, the recoverable amount is estimated each year at the same
time. An impairment loss is recognised if the carrying amount of an asset or its related
cash-generating unit (CGU) exceeds its estimated recoverable amount.

55
(q) Impairment of non-financial assets (continued)
The recoverable amount of an asset or CGU is the greater of its value in use and its
fair value less costs to sell. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset or
CGU. For the purpose of impairment testing, assets that cannot be tested individually
are grouped together into the smallest group of assets that generates cash inflows
from continuing use that are largely independent of the cash inflows of other assets
or CGUs.
Subject to an operating segment ceiling test, for the purposes of goodwill impairment
testing, CGUs to which goodwill has been allocated are aggregated so that the
level at which impairment testing is performed reflects the lowest level at which
goodwill is monitored for internal reporting purposes. Goodwill acquired in a business
combination is allocated to groups of CGUs that are expected to benefit from the
synergies of the combination.
The Groups corporate assets do not generate separate cash inflows and are utilised
by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and
consistent basis and tested for impairment as part of the testing of the CGU to which
the corporate asset is allocated.
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 basis.
An impairment loss recognised for 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
reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the assets carrying
amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised.
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 impairment as a single asset when there is objective evidence that the
investment in an associated company may be impaired.
(r) Inventories
Inventories, which comprise consumable stores, are valued at cost of purchase

(including cost incurred in bringing the inventories to their present location and
condition) on a first-in first-out basis less any applicable allowance for obsolescence.
When inventories are consumed, the carrying amount of these consumable stores is
recognised as an expense in the period in which the consumption occurs.

56

(s) Non-derivative financial liabilities
The Group initially recognises debt securities issued and subordinated liabilities on
the date that they are originated. Financial liabilities for contingent consideration
payable in a business combination are recognised at the acquisition date. All other
financial liabilities (including liabilities designated at fair value through profit or loss)
are recognised initially on the trade date, which is the date that the Group becomes a
party to the contractual provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are
discharged, cancelled or expired.
Financial liabilities for contingent consideration payable in a business combination are

initially measured at fair value. Subsequent changes in the fair value of the contingent
consideration are recognised in profit or loss.
Financial assets and liabilities are offset and the net amount presented in the statement
of financial position when, and only when, the Group has a legal right to offset the
amounts and intends either to settle on a net basis or to realise the asset and settle
the liability simultaneously.
The Group classifies non-derivative financial liabilities into other financial liabilities
which comprise bank borrowing, and trade and other payables. Such financial
liabilities are recognised initially at fair value plus any directly attributable transaction
costs. Subsequent to initial recognition, these financial liabilities are measured at
amortised cost using the effective interest method.
(t) Provisions
A provision is recognised if, as a result of a past event, the Group has a present
legal or constructive obligation that can be estimated reliably, and it is probable that
an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific
to the liability. The unwinding of the discount is recognised as finance cost.
(u) Employee benefits
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis

and are expensed as the related service is provided. A liability is recognised for the
amount expected to be paid under short-term cash bonus or employees entitlements
to annual leave when they accrue to employees, if the Group has a present legal or
constructive obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.

57
(u) Employee benefits (continued)
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity

pays fixed contributions into a separate entity and will have no legal or constructive
obligation to pay further amounts. Obligations for contributions to defined contribution
plans are recognised as an employee benefit expense in profit or loss in the periods
during which services are rendered by employees.
(v) Intra-group financial guarantees
Where the Company enters into financial guarantee contracts to guarantee the
indebtedness of other companies within the Group, the Company considers these
to be insurance arrangements, and accounts for them as such. In this respect, a
provision is recognised based on the Companys estimate of the ultimate cost of
settling all claims incurred but unpaid at the reporting date. The provision is assessed
by reviewing individual claims and tested for adequacy by comparing the amount
recognised and the amount that would be required to settle the guarantee contract.
(w) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the
issue of ordinary shares are recognised as a deduction from equity, net of any tax
effects.
(x) Key management personnel
Key management personnel of the Group are those persons having authority and
responsibility for planning, directing and controlling the activities of the Group. The
Board of Directors of the Group and the senior management team are considered as
key management personnel of the Group.
(y) New accounting standards and interpretations not yet adopted
New standards, amendments to standards and interpretations that are not yet effective
for the financial year ended 31 March 2013 have not been applied in preparing these
financial statements. None of these are expected to have a significant effect on the
financial statements of the Group.

58

4. REVENUE
The Group
2013 2012
US$000 US$000
Charter hire income 19,801 19,561

Ship management related services 113 150
19,914 19,711
5. RESULTS FROM OPERATING ACTIVITIES
The following items have been included in arriving at results from operating activities:
The Group
2013 2012
US$000 US$000
Recovery from an insurance related claim 1,027

Audit fees paid to auditors of the Company (65) (61)
Non-audit fees paid to auditors of the Company
Contributions to defined contribution plans,
included in staff and crew costs (162) (151)
Operating lease expense (156) (155)
6. FINANCE INCOME
The Group
2013 2012
US$000 US$000
Interest income on deposits with banks 79 53

Interest income on interest-bearing financial assets 24 4
Dividend income from quoted equity securities 26 24
Gain on disposal of available-for-sale financial assets 4
Net change in fair value of financial assets held-for-trading 193 (29)
322 56

59
7. FINANCE COSTS ON BANK BORROWING
The Group
2013 2012
US$000 US$000
Amortisation of upfront fee on bank borrowing 26 26

Interest expense:
Interest rate swaps 270 271
Bank borrowing 518 602
814 899
8. EXCHANGE DIFFERENCES
The Group
2013 2012
US$000 US$000
Net change in fair value of foreign exchange options 2 (2)

Net change in fair value of foreign exchange forward contracts (4) 4
Net exchange gain 90 160
88 162

60

9. TAXATION
The Group
2013 2012
US$000 US$000
Tax recognised in profit or loss
Current tax credit

Adjustment for prior years 11
Reconciliation of effective tax rate:

Less: Share of results of associated company, net of tax (26) (27)
6,781 6,028
Tax using the Singapore tax rate of 17% (2012: 17%) (1,153) (1,025)
Income not subject to tax 1,271 1,365
Non-deductible expenses (19) (39)
Adjustment for prior years 11
Utilisation of previously unrecognised tax losses 15 6
Tax benefit on tax losses not recognised (114) (307)
11
Profits from qualifying shipping activities of the Group are exempted from income tax under
the provision of Section 13A of the Singapore Income Tax Act, Chapter 134.

61
9. TAXATION (continued)
Movements in deferred tax liabilities of the Group during the financial year are as follows:
Credited / Credited /
(charged) (charged)
At 1 April to income At 31 March to income At 31 March
2011 statement 2012 statement 2013
US$000 US$000 US$000 US$000 US$000
Deferred tax liabilities

Property, plant and
equipment 1 1 2 (1) 1
Accrued interest income (1) (1) (2) 1 (1)

Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off
current tax asset against current tax liability and when the deferred taxes relate to the same
tax authority.
The tax losses are subject to agreement by the tax authorities. Deferred tax asset is
recognised for tax losses carried forward to the extent that realisation of the related tax
benefits through future taxable profits are probable. In assessing the probability of future
taxable profits available for utilisation of the tax benefits, management has considered profit
forecasts based on certain assumptions which may change.
As at 31 March 2013, certain subsidiaries of the Group have unutilised tax losses of
approximately US$18,851,000 (2012: US$18,260,000). The unutilised tax losses are available
for carry forward and set off against future taxable profits subject to agreement by the
Comptroller of Income Tax and compliance with the relevant provisions of the Income Tax Act.
Of these unutilised tax losses, deferred tax asset amounting to approximately US$3,205,000
(2012: US$3,104,000) have not been recognised in the financial statements because it is
uncertain whether future taxable profits will be available against which the aforementioned
subsidiaries can utilise the benefits arising therefrom.
10. EARNINGS PER SHARE
The Group
2013 2012
US$000 US$000
Basic and diluted earnings per share is based on:

Profit attributable to owners of the Company 6,807 6,066
Weighted average number of ordinary shares in issue

for basic and diluted earnings per share (000) 436,017 436,017
Basic and diluted earnings per share are calculated by dividing the profit attributable to
owners of the Company by the weighted average number of ordinary shares in issue during
the financial year.
62

11. PROPERTY, PLANT AND EQUIPMENT
Renovations, Equipment
Drydocking furniture and
The Group Vessels expenditure and fittings computers Total
US$000 US$000 US$000 US$000 US$000
Cost
At 1 April 2011 109,795 18 165 540 110,518
Additions 431 19 14 464
Disposals (3) (14) (17)
At 31 March 2012 109,795 449 181 540 110,965
Additions 66 30 96
Disposals (2) (2)
At 31 March 2013 109,795 515 181 568 111,059
Accumulated depreciation
At 1 April 2011 40,499 105 426 41,030
Depreciation for the year 3,696 179 21 38 3,934
Disposals (3) (14) (17)
At 31 March 2012 44,195 179 123 450 44,947
Depreciation for the year 4,089 180 6 42 4,317
Disposals (2) (2)
At 31 March 2013 48,284 359 129 490 49,262
Carrying amounts
At 1 April 2011 69,296 18 60 114 69,488
At 31 March 2012 65,600 270 58 90 66,018
At 31 March 2013 61,511 156 52 78 61,797
Impairment assessment on vessels
Each of the Groups vessels is a separate cash-generating unit. Under the Groups formal
impairment assessment of its vessels, the recoverable amount for each vessel is determined
based on value-in-use calculation.
The recoverable amounts were derived from value-in-use calculations using discounted
cash flow projections which are based on contractual cash flows arising from charter of
the vessels over the lease term. These cash flows take into account contractual charter
rates, managements assessment of projected off-hire periods and expectations for market
development which are supported by the Groups historical experience and past observable
data. The cash flows are then discounted at rates determined using the appropriate weighted
average cost of capital which approximates the specific risks relating to the vessels.
Based on managements assessment, no impairment loss has been identified.

63
11. PROPERTY, PLANT AND EQUIPMENT (continued)
Depreciation, useful lives and residual values of vessels
The Group reviews the estimated useful lives of the vessels regularly in order to determine
the amount of depreciation expense to be recorded for each financial year. Changes in the
expected 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 the depreciation charges and consequently affect the Groups results. The residual
values are 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 financial year is estimated using up to five years average scrap steel price per
light displacement ton less estimated costs of disposal of a complete vessel with all normal
machinery and equipment on board.
Drydocking costs are amortised on a straight-line basis over the period to the next anticipated
drydocking date. The Group determines the next anticipated drydocking date of each
individual vessel by reviewing the condition of each vessel and taking into consideration
the Groups historical experience with similar vessels and the relevant regulations governing
such vessels. Any changes to the next anticipated drydocking date could impact the
amortisation and consequently affect the Groups results. The next anticipated drydocking
date is reviewed at each reporting date.
Change in estimates
During the financial year, the residual value for one of the vessels has been revised. The
change in residual value of the vessel constitutes a change in estimates and the effect of the
change has been applied prospectively. The effect of the change is an increase in depreciation
expense in the current financial year by approximately US$388,000. During the last financial
year, a revision in the residual value of the aforementioned vessel had resulted in a decrease
in depreciation expense by approximately US$222,000. As the residual values of the vessels
are reviewed at each financial year-end and any changes in estimates are accounted for
prospectively, the effect on future periods is impracticable to estimate.
Security
At 31 March 2013, a vessel of the Group with carrying amount of US$42.3 million (2012:
US$45.1 million) has been mortgaged as security to secure a bank borrowing (see note 19).

64

12. SUBSIDIARIES
The Company
2013 2012
US$000 US$000
Unquoted equity shares, at cost 23,560 23,560

Less: Impairment loss (589) (857)
22,971 22,703
Due from a subsidiary (non-trade) 11,312 14,192
34,283 36,895
The investments in subsidiaries are tested for impairment when a subsidiary is in a net
liabilities position or has suffered continual operating losses or has any other known
impairment indicators. This test requires significant judgement.
Based on this assessment, an impairment loss has been recognised in respect of the
investment in one of the subsidiaries.
The impairment loss in respect of the investment in a subsidiary is as follows:
The Company
2013 2012
US$000 US$000
Balance at beginning of the year 857 857

Movement during the year (268)
Balance at end of the year 589 857
The net assets of the subsidiary, which comprise mainly current monetary assets and
liabilities, approximate the fair value less costs to sell.
The non-trade amount due from a subsidiary is unsecured and interest free. The full settlement
of the loan is neither planned nor likely to occur in the foreseeable future. As this loan is, in
substance, a part of the Companys net investment in the subsidiary, it is stated at cost less
accumulated impairment losses, if any.

65
12. SUBSIDIARIES (continued)
Details of the subsidiaries are as follows:
Country of Effective equity held by

Name of subsidiary incorporation the Group
2013 2012
% %
Ow Brothers Pte. Ltd. Singapore 100 100

Seatrade Ship Management Pte Ltd Singapore 100 100
Singapore Ship Technologies Ltd (a) British Virgin Islands 100 100
SSC Carriers Pte Ltd Singapore 100 100
SSC Investments (Pte) Limited Singapore 100 100
SSC Pisces Pte. Ltd. Singapore 100 100
SSC Ship Management Pte Ltd Singapore 100 100
(a) Not required to be audited by the laws of the country of incorporation
All the subsidiaries are audited by KPMG LLP, except for the subsidiary that is not required
to be audited by the laws of the country of incorporation.
13. ASSOCIATED COMPANY

2013 2012 2013 2012
US$000 US$000 US$000 US$000
Unquoted equity shares, at cost * * * *

Groups share of post-acquisition profits
and reserves, net of dividends received 3,069 3,043
3,069 3,043
* Cost is below US$1,000.

66

13. ASSOCIATED COMPANY (continued)
Investment in associated company is tested for impairment when the associated company is
in a net liabilities position or has suffered continual operating losses or has any other known
impairment indicators. This test requires significant judgement.
Based on the assessment, no impairment indicators were found on the Companys investment
in associated company as at 31 March 2013 and 31 March 2012.
Details of the associated company are as follows:
Country of Effective equity held

Name of associated company incorporation by the Group
2013 2012
% %
MOB Cougar Pte Ltd Singapore 30 30
The associated company is audited by KPMG LLP.
Summary financial information relating to the associated company, not adjusted for the
percentage of ownership held by the Group, are as follows:
2013 2012
US$000 US$000
Results
Revenue 2,728 2,511
Profit after taxation 88 90
Assets and liabilities

Total assets 13,901 14,171
Total liabilities 3,670 4,028
The contingent liability of the associated company is set out in note 29(a) (ii).
14. OTHER ASSETS
The Group
2013 2012
US$000 US$000
Club memberships 233 231
The Groups exposure to foreign currency risk related to other assets is disclosed in note 25.

67
15. TRADE AND OTHER RECEIVABLES

2013 2012 2013 2012
US$000 US$000 US$000 US$000
Trade receivables 5 47
Due from subsidiaries (non-trade) 15,949 15,715
Less: Impairment loss (13,224) (11,454)
2,725 4,261
Deposits 42 41 1 1
Accrued interest receivable 4 11 2 3
Derivative financial assets (note 20) 4
Sundry debtors 191 301
242 404 2,728 4,265
Advances 3 3 1 2
Prepayments 367 372 25 7
612 779 2,754 4,274
The non-trade amounts due from subsidiaries are unsecured, interest-free and repayable
on demand.
The Group and the Companys exposure to foreign currency risk related to trade and other
receivables are disclosed in note 25.
The Company
Impairment loss
The non-trade amounts due from subsidiaries are tested for impairment when a subsidiary
records a net liabilities position or has suffered continual operating losses. This test requires
significant judgement.
Based on this assessment, an impairment loss has been recognised in respect of a non-trade
amount due from a subsidiary.
The change in impairment loss in respect of the non-trade receivables during the year is
as follows:
The Company
2013 2012
US$000 US$000
Balance at beginning of the year 11,454 9,554

Addition during the year 1,770 1,900
Balance at end of the year 13,224 11,454

68

16. FINANCIAL ASSETS HELD-FOR-TRADING
The Group
2013 2012
US$000 US$000
Quoted equity securities 893 722

Structured deposit 782
Convertible debt security note 436 412
1,329 1,916
The structured deposit and convertible debt security note carry fixed interest rates and their
weighted average effective interest rates per annum at the reporting dates are as follows:
The Group
2013 2012
% %
Structured deposit 0.80

Convertible debt security note 3.13 3.13
The Groups exposure to foreign currency risk related to financial assets held-for-trading is
disclosed in note 25.
17. CASH AND CASH EQUIVALENTS

2013 2012 2013 2012
US$000 US$000 US$000 US$000
Cash at bank and in hand 625 394 80 65

Fixed deposits 16,615 11,986 13,887 4,875
17,240 12,380 13,967 4,940
The weighted average effective interest rates per annum at the reporting dates are as follows:

2013 2012 2013 2012
% % % %
Fixed deposits 0.34 0.61 0.32 0.70
Interest rates are repriced at intervals of one to six months.
The Group and the Companys exposure to foreign currency risk related to cash and cash
equivalents are disclosed in note 25.

69
18. TRADE AND OTHER PAYABLES

2013 2012 2013 2012
US$000 US$000 US$000 US$000
Trade payables 134 128

Due to subsidiaries (non-trade) 5,330 3,525
Sundry creditors 1,022 50 56 46
Accrued interest payable 166 163
Derivative financial liabilities (note 20) 18 2
Accrued operating expenses 1,534 1,389 309 272
2,874 1,732 5,695 3,843
Advance receipts from customers 149 165
3,023 1,897 5,695 3,843
The non-trade amounts due to subsidiaries are unsecured, interest-free and repayable
on demand.
The Groups sundry creditors includes an amount of approximately US$966,000 (2012: Nil)
payable to a third party for their share of the recovery from an insurance related claim.
The Group and the Companys exposure to foreign currency risk related to trade and other
payables are disclosed in note 25.

70

19. BANK BORROWING
The Group
2013 2012
US$000 US$000
Current
Current portion of long-term bank borrowing 4,520 4,520
Non-current
Long-term bank borrowing 19,212 23,732
The bank borrowing is secured by a corporate guarantee from the Company, first priority
mortgage over a subsidiarys vessel, and first priority assignment of the said vessels charter
earnings and insurances. The carrying amount of the vessel mortgaged as security for the bank
borrowing is approximately US$42.3 million as at 31 March 2013 (2012: US$45.1 million).
The bank borrowing is being repaid by equal monthly installments and the final monthly
installment will fall due on 1 June 2018. The interest rates on the bank borrowing are being
re-priced at intervals of one to three months.
As part of its interest rate risk management, the aforementioned subsidiary had entered into
interest rate swaps to swap floating interest rates on US$19.9 million (2012: US$15 million) of
the bank borrowing to fixed interest rates. The notional principal amounts of the outstanding
interest rate swap contracts and their corresponding fair values at the reporting date are
disclosed in note 20.
The interest rates for the bank borrowing (after taking into consideration the interest rate
swaps), range from approximately 1.85% to 4.27% per annum (2012: 1.84% to 4.27%), and
the weighted average effective interest rate per annum at the reporting date is approximately
3.43% (2012: 3.35%).

71
20. DERIVATIVE FINANCIAL ASSETS / LIABILITIES
The Group
2013 2012
Positive /
Notional Negative Notional (negative)
amount fair value amount fair value
US$000 US$000 US$000 US$000
Current
Foreign exchange forward
contracts - trading (note 15) 375 4
Foreign exchange
options - trading (note 18) 500 (2)
Interest rate swap (note 18) 6,000 (18)
Non-current
Interest rate swaps 13,900 (428) 15,000 (590)
The interest rate swaps are designated as cash flow hedge for the Groups bank borrowing.
See note 19 for further details.
21. SHARE CAPITAL
Ordinary shares
The Company
000
Number of shares at 1 April 2011 and 31 March 2012 436,017
Number of shares at 1 April 2012 and 31 March 2013 436,017
The holders of ordinary shares are entitled to receive dividends as declared from time to time
and are entitled to one vote per share at meetings of the Company. All shares rank equally
with regard to the Companys residual assets.

72

22. OTHER RESERVES
The Group
2013 2012
Note US$000 US$000
Hedging reserve (a) (446) (590)

Currency translation reserve (b) 180 128
(266) (462)
(a) Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in
the fair value of cash flow hedging instruments related to hedged transactions that
have not yet affected profit or loss.
(b) Currency translation reserve
The currency translation reserve comprises foreign currency differences arising from
the translation of the financial statements of foreign operations whose functional
currencies are different from the functional currency of the Company.
23. DIVIDENDS
The Company
2013 2012
US$000 US$000
Dividends paid
In respect of financial year ended 31 March 2011
Final one-tier tax exempt dividend of
1 Singapore cent per share 3,614
In respect of financial year ended 31 March 2012
Final one-tier tax exempt dividend of
1 Singapore cent per share 3,502
3,502 3,614
For the financial year ended 31 March 2013, the directors have proposed a final one-tier tax
exempt dividend of 1 Singapore cent per share amounting to approximately S$4,360,000.
The financial statements do not reflect this dividend payable, which will be accounted for
in the shareholders equity as an appropriation of the retained earnings in the financial year
ending 31 March 2014.

73
24. SEGMENT INFORMATION
(a) Operating segments
The Group is principally engaged in ship owning and ship management. The assets,
liabilities and capital expenditure of the Group are mainly employed in this sole
reportable segment.
(b) Geographical segments
In presenting information on the basis of geographical segments, segment revenue is

based on the country of domicile of the customers.
The Group
2013 2012
US$000 US$000
Revenue
Japan 9,173 8,998
Singapore 113 150
Sweden 10,628 10,563
19,914 19,711
As the Groups vessels are deployed by the customers to various parts of the world, the
Directors do not consider it meaningful to allocate the assets and capital expenditure
to specific geographical segments.
(c) Information about major customers
Revenue of approximately US$10,628,000, US$4,829,000 and US$4,344,000 (2012:

US$10,563,000, US$4,629,000 and US$4,369,000) are derived from three (2012:
three) external customers arising from chartering of vessels.
For the purpose of this disclosure, a major customer is defined as one in which
revenue from transactions with a single customer amounts to ten per cent or more of
the Groups revenue.

74

25. FINANCIAL INSTRUMENTS
(a) Overview
The Group has exposure to the following risks from its use of financial instruments:
credit risk
liquidity risk
market risk
This note presents information about the Groups exposure to each of the above risks
and the Groups objectives, policies and processes for measuring and managing
these risks and the Groups management of capital. Further quantitative disclosures
are included throughout these consolidated financial statements.
(b) Risk management framework
The Board of Directors has overall responsibility for the establishment and oversight
of the Groups risk management framework.
The Group has a system of controls in place to create an acceptable balance between
the cost of risks occurring and the cost of managing the risks. The management
continually monitors the Groups risk management process to ensure that an
appropriate balance between risk and control is achieved. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the
Groups activities.
The Audit Committee oversees how management monitors compliance with the
Groups risk management policies and procedures and reviews the adequacy of the
risk management framework in relation to the risks faced by the Group. The Audit
Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes
both regular and ad hoc reviews of risk management controls and procedures, the
results of which are reported to the Audit Committee.

75
25. FINANCIAL INSTRUMENTS (continued)
(c) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to
a financial instrument fails to meet its contractual obligations, and arises principally
from the Groups trade and other receivables, cash and cash equivalents, financial
assets held-for-trading and derivative instruments.
The maximum exposure to credit risk is represented by the carrying amount of each
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.
Cash and cash equivalents
The Group places its cash and fixed deposits with banks and financial institutions
which are regulated, to limit its credit exposure.
Financial assets held-for-trading and derivative instruments
The Group limits its credit risk by investing in securities, debt security notes and
structured deposits of well established companies, banks and financial institutions;
entering into interest rate swaps and dealing in foreign exchange options with banks
and financial institutions which are regulated and have sound credit rating.
Intra group financial guarantees
The principal risk to which the Company is exposed is the credit risk in connection
with the guarantee contract it has issued on behalf of a subsidiary in respect of a bank
borrowing. The bank borrowing amounting to US$23,732,000 (2012: US$28,252,000)
will mature on 1 June 2018. There are no terms and conditions attached to the
guarantee contract that would have a material effect on the amount, timing and
uncertainty of the Companys future cash flows.
The credit risk represents the loss that would be recognised upon a default by the
party to which the guarantee was given on behalf of. To mitigate this risk, management
continually monitors the risk and has established processes including performing
credit evaluation of the party it is providing the guarantee on behalf of.

76

(d) Liquidity risk
Liquidity risk is the risk that the Group or the Company will not be able to meet its
financial obligations as they fall due. The Groups approach to managing liquidity is
to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Groups reputation. This is achieved
through monitoring the cash flow requirements closely and optimising its cash return
on investments.
The Group and the Companys contractual maturities of non-derivative financial

liabilities and derivative financial instruments, including estimated interest payments
are as follows:
More than
Carrying Contractual 1 year 1 year to More than
The Group amount cash flows or less 2 years 2 years
US$000 US$000 US$000 US$000 US$000
2013
Non-derivative
financial liabilities
Trade payables and

sundry creditors 1,156 (1,156) (1,156)
Accrued operating
expenses 1,534 (1,534) (1,534)
Bank borrowing cum
accrued interest 23,898 (25,311) (5,037) (4,886) (15,388)
26,588 (28,001) (7,727) (4,886) (15,388)
Derivative
financial instruments
Interest rate swaps
used for hedging
(net-settled) 446 (448) (191) (212) (45)
27,034 (28,449) (7,918) (5,098) (15,433)

77
(d) Liquidity risk (continued)
More than
Carrying Contractual 1 year 1 year to More than
The Group amount cash flows or less 2 years 2 years
US$000 US$000 US$000 US$000 US$000
2012
Non-derivative
financial liabilities
Trade payables and

sundry creditors 178 (178) (178)
Accrued operating
expenses 1,389 (1,389) (1,389)
Bank borrowing cum
accrued interest 28,415 (30,657) (5,137) (5,043) (20,477)
29,982 (32,224) (6,704) (5,043) (20,477)
Derivative
financial instruments
Foreign exchange
forward contracts
(gross-settled): (4)
Outflow (375) (375)
Inflow 379 379
Foreign exchange
options
(gross-settled): 2
Outflow (500) (500)
Inflow 518 518
Interest rate swaps
used for hedging
(net-settled) 590 (596) (194) (210) (192)
30,570 (32,798) (6,876) (5,253) (20,669)

78

(d) Liquidity risk (continued)
Carrying Contractual 1 year

The Company amount cash flows or less
US$000 US$000 US$000
2013
Sundry creditors 5,386 (5,386) (5,386)
Accrued operating expenses 309 (309) (309)
Non-derivative financial liabilities 5,695 (5,695) (5,695)
2012
Sundry creditors 3,571 (3,571) (3,571)
Accrued operating expenses 272 (272) (272)
Non-derivative financial liabilities 3,843 (3,843) (3,843)
The maturity analyses show the undiscounted cash flows of the Group and the
Companys financial liabilities on the basis of their earliest possible contractual maturity.
For derivative financial instruments, the cash inflows / (outflows) represent the
contractual undiscounted cash flows relating to these instruments. The amounts
are compiled on a net basis for derivatives that are net-settled. Gross inflows and
outflows are included for derivatives that are gross-settled on a simultaneous basis.
It is not expected that the cash flows included in the maturity analysis of the Group
and the Company could occur significantly earlier, or at significantly different amounts.

79
(e) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange
rates, interest rates and equity prices will affect the Groups income or the value of
its holdings of financial instruments. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters, while
optimising the return on risk.
The Group is exposed to market risk and the risk of changes in the fair value of
the investments held. The Group manages the risk by evaluating the investment
opportunities, continuously monitoring the performance of the investments held and
assessing the market risk relevant to which the investment operates.
(i) Foreign currency risk
The Group is exposed to foreign currency risk on transactions denominated in

foreign currencies arising from normal trading and investment activities.
Generally, borrowings are denominated in currencies that match the cash flows
generated by the underlying operations of the Groups assets. This provides
an economic hedge without derivatives being entered into and therefore hedge
accounting is not applied in these circumstances.
The Group also regularly reviews its exposure to foreign currency risk and
manages it by entering into foreign exchange options and/or forward exchange
contracts where applicable.
The currency giving rise to foreign currency risk is primarily the S$. The Group
and the Companys exposures to the S$ are as follows:

2013 2012 2013 2012
US$000 US$000 US$000 US$000
Other assets 233 231

Trade and other receivables 52 51 8,274 14,562
Financial assets
held-for-trading 1,231 1,836
Cash and cash equivalents 14,380 11,748 13,286 4,939
Trade and other payables (1,098) (133) (4,590) (3,571)
Net exposure 14,798 13,733 16,970 15,930

80

(e) Market risk (continued)
(i) Foreign currency risk (continued)
Sensitivity analysis
A 5% strengthening of the functional currency against the S$ as at the

reporting date would decrease the currency translation reserve and earnings
by the amounts shown below.

2013 2012 2013 2012
US$000 US$000 US$000 US$000
Currency translation reserve 37 33

Earnings 703 654 849 797
A 5% weakening of the functional currency against the S$ as at the reporting

date would have had the equal but opposite effect by the amounts shown
above.
The above analyses assume all other variables, in particular interest rates,
remain constant.
Management is of the view that the above sensitivity analysis may not be
representative of the inherent foreign currency risk as year-end exposure may
not reflect the actual exposure and circumstances during the year.
(ii) Interest rate risk
The Groups variable rate financial instruments are exposed to a risk of change
in cash flows due to changes in interest rates.
The Group manages its exposure to changes in interest rates on bank borrowing
by entering into interest rate swaps to convert the floating rates of part of the
bank borrowing to fixed rates. As at 31 March 2013, the Group has interest rate
swaps with a total notional contract amount of US$19.9 million (2012: US$15
million), whereby it pays fixed interest rates and receives variable rates pegged
to the US$ London Interbank Offer Rate. The Group classifies these interest
rate swaps as cash flow hedges. The interest rate swaps will mature over the
next four years.

81
(ii) Interest rate risk (continued)
If interest rates on variable rate financial instruments and the interest rate
swaps accounted for as a cash flow hedge, had been 50 basis points higher
at the reporting date, with all other variables held constant, it would increase/
(decrease) the earnings and equity on a per annum basis by the amounts
shown below.

2013 2012 2013 2012
US$000 US$000 US$000 US$000
Earnings
Fixed deposits 83 60 69 24
Bank borrowing (119) (141)
Interest rate swaps 100 75
64 (6) 69 24
Equity
Hedging reserve 136 120
If interest rates on variable rate financial instruments and the interest rate
swaps accounted for as a cash flow hedge, had been 50 basis points lower
at the reporting date, with all other variables held constant, it would increase/
(decrease) the earnings and equity on a per annum basis by the amounts
shown below.

2013 2012 2013 2012
US$000 US$000 US$000 US$000
Earnings
Fixed deposits (56) (57) (45) (24)
Bank borrowing 66 107
Interest rate swaps (58) (75)
(48) (25) (45) (24)
Equity
Hedging reserve (129) (120)
Management is of the view that the above sensitivity analysis may not be
representative of the inherent interest rate risk as year-end exposure may not
reflect the actual exposure and circumstances during the year.

82

(iii) Equity security price risk
Equity security price risk is the risk of changes in cash flows and fair value
of the Groups investments due to changes in the underlying equity security
prices. The risk is concentrated in the Groups investments in equity securities.
A 10% increase in the price of equity securities at the reporting date would
increase the Groups earnings by approximately US$89,000 (2012: US$72,000).
A 10% decrease in the price of equity securities would have an equal but
opposite effect.
The above analyses assume all other variables remain constant.
Management is of the view that the above sensitivity analyses may not be
representative of the inherent equity security price risk as year-end exposure
may not reflect the actual exposure and circumstances during the year.
(f) Capital management
The Boards policy is to have a strong capital base to maintain investor, creditor and
market confidence and to sustain future development of the business.
The Group defines capital to include funds raised through the issuance of ordinary
share capital and all components of equity. The Group manages its capital to ensure
entities in the Group will be able to continue as a going concern while maximising
the return to shareholders through optimisation of the debt and equity balance. The
Group actively reviews its capital structure and considers the cost of capital and the
risks associated with each class of capital. As at 31 March 2013, the Group had
an outstanding debt exposure of US$23,732,000 (2012: US$28,252,000). The Group
balances its overall capital structure through the payment of dividends, return of
capital to shareholders, new share issues as well as the issue of new debt or the
redemption of existing debt.
There were no changes in the Groups approach to capital management during the year.
The Groups ship-owning subsidiaries are subject to externally imposed capital

requirements as required under Regulation 7 of the Merchant Shipping Act (Chapter
179). These companies have complied with the requirements during the financial year.

83
(g) Classification of financial instruments
Liabilities at
Hedging Loans and amortised
The Group Note Trading instruments receivables cost Total
US$000 US$000 US$000 US$000 US$000
2013
Trade and other
receivables 15 242 242
Financial assets
held-for-
trading 16 1,329 1,329
Cash and cash
equivalents 17 17,240 17,240
1,329 17,482 18,811
Trade and other

payables 18 (18) (2,856) (2,874)
Bank borrowing 19 (23,732) (23,732)
Derivative
financial
liabilities 20 (428) (428)
(446) (26,588) (27,034)
2012
Trade and other
receivables 15 4 400 404
Financial assets
held-for-
trading 16 1,916 1,916
Cash and cash
equivalents 17 12,380 12,380
1,920 12,780 14,700
Trade and other

payables 18 (2) (1,730) (1,732)
Bank borrowing 19 (28,252) (28,252)
Derivative
financial
liabilities 20 (590) (590)
(2) (590) (29,982) (30,574)

84

(g) Classification of financial instruments (continued)
Liabilities at
Loans and amortised
The Company Note receivables cost Total
US$000 US$000 US$000
2013
Trade and other receivables 15 2,728 2,728
Cash and cash equivalents 17 13,967 13,967
16,695 16,695
Trade and other payables 18 (5,695) (5,695)
2012
Trade and other receivables 15 4,265 4,265
Cash and cash equivalents 17 4,940 4,940
9,205 9,205
Trade and other payables 18 (3,843) (3,843)

85
26. ESTIMATION OF FAIR VALUES
(a) Fair value hierarchy
The Group determines the fair value of its financial assets and liabilities using various
measurements. The different levels of fair value measurements are as follows:
Level 1 Quoted prices (unadjusted) in active markets for identical assets

and liabilities
Level 2 Inputs other than quoted prices within Level 1 that are observable for
the asset or liability, either directly (i.e. as prices), or indirectly (i.e.
derived from prices); and
Level 3 Inputs for the asset or liability that are not based on observable market
data (unobservable inputs).
(b) Investments in quoted equity securities
The fair value of quoted equity securities is determined by reference to their quoted
bid prices at the reporting date without any deduction for transaction costs.
The fair value of the Groups quoted equity securities falls under Level 1.
(c) Interest-bearing financial assets
The fair value of structured deposit and convertible debt security are based on brokers
quotes at the balance sheet date.
The fair value of the abovementioned instruments falls under Level 2.
(d) Derivatives
The fair value of interest rate swaps, foreign exchange options and forward contracts
are based on brokers quotes. The quotes for interest rate swaps are tested for
reasonableness by discounting estimated future cash flows based on the terms and
maturity of each contract and using market interest rates for a similar instrument at
the measurement date.
The fair value of the abovementioned derivatives falls under Level 2.
(e) Other financial assets and liabilities
The carrying amounts of financial assets and liabilities with a maturity of less than one
year (including trade and other receivables, cash and cash equivalents, and trade and
other payables) are assumed to approximate their fair values because of the short
period to maturity. The fair value of the bank borrowing approximates its carrying
value as they are repriced every one to three months.

86

27. SIGNIFICANT RELATED PARTY TRANSACTIONS
(a) Key management personnel compensation
Compensation paid and payable to the key management personnel are as follows:
The Group
2013 2012
US$000 US$000
Directors of the Company

Directors fees 159 166
Short-term employee benefits 925 924
Post-employment benefits contributions to defined
contribution plans 13 12
1,097 1,102
Senior management team

Fees paid to other directors of subsidiaries 4 4
Short-term employee benefits 707 689
Post-employment benefits contributions to defined
contribution plans 33 30
744 723
Total 1,841 1,825

87
27. SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(b) Other significant related party transactions
In addition to the transactions and balances disclosed elsewhere in the notes to the
financial 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
2013
Associated company 2
Others 35 (52) (156)
2012
Associated company 2
Others 88 (98) (155)
Others refer to companies and their subsidiaries with a substantial shareholder in

common with the Company.
28. COMMITMENTS
Operating leases
As lessor
The future minimum lease payments to be received under non-cancellable lease agreements
for vessels are as follows:
The Group
2013 2012
US$000 US$000
Within 1 year 18,028 19,795

After 1 year but within 5 years 59,901 62,964
More than 5 years 109,567 124,532
187,496 207,291
The Group leases out its vessels under operating leases. The leases typically run for initial
periods of three to fifteen years.
88

29. CONTINGENT LIABILITIES
(a) The Group
(i) The Company has given a counter indemnity of US$1,200,000 (2012:

US$1,200,000) to a shareholder of an associated company who had given
undertaking to issue letter of guarantee in respect of an uncommitted short-
term loan facility granted to the associated company. At 31 March 2013, the
Companys share of the facility utilised was US$300,000 (2012: US$300,000).
(ii) On 24 July 2006, an associated companys vessel encountered a ship distress.

As a consequence, a claim was filed on 5 February 2007, against the associated
company (in which the Group has 30% interest) and the charterer of the vessel.
The charterer and their insurers are handling and co-ordinating the defence
on behalf of all parties. To the Groups knowledge, in the event the claim
against the charterers protection and indemnity insurance fails, the associated
company may have to claim against its protection and indemnity insurance,
which carries a deductible of US$250,000.
The ultimate outcome of the matter cannot be reasonably determined

presently and no provision for any liability that may result has been made in
the associated companys or the Groups financial statements.
(b) The Company
Since prior years, the Company had provided a performance guarantee to a third party
with respect to a charter party agreement for the charter of a vessel by a subsidiary
to the third party.
30. SUBSEQUENT EVENT
At the Companys extraordinary general meeting held on 11 April 2013, the shareholders
approved the acquisition of all of MYP Ltd.s shareholdings in the following companies:
(i) 50,000 shares in Hai Poh Terminals Pte Ltd (HPTL), representing 50% of HPTLs
total issued and paid up share capital of S$100,000;
(ii) 400,000 shares in Island Line Pte Ltd (ISPL), representing 100% of ISPLs total
issued and paid up share capital of S$400,000;
(iii) 245,000 shares in Nanyang Maritime (Spore) Pte Ltd (NYML), representing 49% of
NYMLs total issued and paid up share capital of S$500,000; and
(iv) 10,000,000 shares in SSC Shipping Agencies Pte Ltd (SSPL), representing 100% of
SSPLs total issued and paid up share capital of S$5,000,500

89
30. SUBSEQUENT EVENT (continued)
for an aggregate cash consideration of S$15,000,000, equivalent to approximately

US$12,080,000 (the Acquisition).
The Acquisition which was completed on 15 April 2013, presents the Group with the
opportunity to expand into the agency and logistics businesses to improve the Groups
revenue streams.
Effects of the Acquisition
The following summarises the effects of the Acquisition:
To acquire
To acquire associated
subsidiaries companies Total
US$000 US$000 US$000
Cash consideration transferred 9,664 2,416 12,080
Less: Fair value of identifiable net assets

Property, plant and equipment 48 48
Investments in associated companies 1,940 1,940
Other assets 10 10
Trade and other receivables 4,773 4,773
Cash and cash equivalents 7,042 7,042
Trade and other payables (2,550) (2,550)
Tax liabilities (506) (506)
8,817 1,940 10,757
Goodwill 847 476 1,323
The trade and other receivables comprise gross contractual amounts due of approximately
US$4,929,000, of which approximately US$228,000 was expected to be uncollectible at
acquisition date.
The goodwill represents payment made in anticipation of the future economic benefits arising
from assets acquired that are not capable of being individually identified and separately
recognised. The goodwill is not expected to be deductible for tax purposes.

90

30. SUBSEQUENT EVENT (continued)
Net cash flow on the Acquisition

To acquire
To acquire associated
subsidiaries companies Total
US$000 US$000 US$000
Cash consideration transferred 9,664 2,416 12,080

Less: Cash and cash equivalents
of subsidiaries acquired (7,042) (7,042)
Cash outflow on the Acquisition 2,622 2,416 5,038
Acquisition-related costs
The Company incurred acquisition-related costs of approximately US$70,000 related to

external legal fees, statutory and administrative expenses. The acquisition-related costs are
recognised in profit or loss as and when incurred.
Financial effects on the Groups results
If the Acquisition had occurred on 1 April 2012, management estimates that the Groups
revenue and net profit for the financial year would have been approximately:
US$000
Revenue 36,547
Net profit 9,932
In determining these amounts, management has assumed that the fair value adjustments that
arose on the date of acquisition would have been the same if the acquisition had occurred
on 1 April 2012.

91
SHAREHOLDING STATISTICS
AS AT 14 JUNE 2013
Number of Shares in Issue : 436,016,591

Number of Shareholders : 9,292
Class of Shares : Ordinary Shares
Treasury Shares : Nil
Voting Rights : One vote per share
BREAKDOWN OF SHAREHOLDINGS BY RANGE
No. of % of No. of % of Issued

Size of Shareholdings Shareholders Shareholders Shares Share Capital
1 999 144 1.55 57,517 0.01

1,000 10,000 5,682 61.15 30,442,267 6.98
10,001 1,000,000 3,446 37.09 165,457,056 37.95
1,000,001 and above 20 0.21 240,059,751 55.06
TOTAL 9,292 100.00 436,016,591 100.00
TWENTY LARGEST SHAREHOLDERS
No. of % of Issued
No. Name of Shareholder Shares Share Capital
1 OW CHIO KIAT 153,532,500 35.21

2 TAN GIM TEE HOLDINGS PTE LTD 13,200,000 3.03
3 CHU SIEW HOONG CHRISTOPHER 12,060,000 2.77
4 UNITED OVERSEAS BANK NOMINEES PTE LTD 11,939,000 2.74
5 DBS NOMINEES PTE LTD 9,969,500 2.29
6 HT OFFSHORE PTE. LTD. 8,000,000 1.83
7 HAI SUN HUP GROUP PTE LTD 6,200,000 1.42
8 OCBC NOMINEES SINGAPORE PTE LTD 5,372,000 1.23
9 CITIBANK NOMINEES SINGAPORE PTE LTD 3,550,250 0.81
10 KIERSTEN OW YILING (OU YILING) 2,500,000 0.57
11 PHILLIP SECURITIES PTE LTD 2,037,500 0.47
12 MAYBANK KIM ENG SECURITIES PTE LTD 1,836,001 0.42
13 OW WEIWEN 1,434,000 0.33
14 WONG KIM SOON 1,400,000 0.32
15 TANG HOUI MIANG 1,300,000 0.30
16 KHONG LAI CHEONG 1,286,000 0.30
17 HONG LEONG FINANCE NOMINEES PTE LTD 1,207,000 0.28
18 TAN YONG CHIANG OR TAN HUI LIANG 1,119,000 0.26
19 ANG JWEE HERNG 1,102,000 0.25
20 LIM SIEW FENG 1,015,000 0.23
TOTAL 240,059,751 55.06

92
SHAREHOLDING STATISTICS
AS AT 14 JUNE 2013
SUBSTANTIAL SHAREHOLDER
Direct Interest Deemed Interest Total

% of % of % of
No. of Issued Share No. of Issued Share No. of Issued Share
Shares Capital Shares Capital Shares Capital
Ow Chio Kiat 153,532,500 35.21 7,340,000* 1.68 160,872,500 36.89
* Mr Ow Chio Kiat is deemed to have an interest in the shares owned by (a) his spouse, Madam Lim Siew Feng
(1,015,000 shares); (b) Hai Sun Hup Group Pte Ltd (6,200,000 shares); and (c) Maritime Properties Pte Ltd
(125,000 shares).
PUBLIC FLOAT
Rule 723 of the Listing Manual of the Singapore Exchange Securities Trading Limited requires that
at least 10% of the total number of issued shares (excluding preference shares and convertible
equity securities) of a listed company in a class that is listed is at all times held by the public. Based
on information available to the Company as at 14 June 2013, approximately 59.04% of the issued
ordinary shares of the Company was held by the public and therefore, Rule 723 of the Listing Manual
has been complied with.

93
NOTICE OF ANNUAL GENERAL MEETING AND BOOKS CLOSURE

Company Registration No. 198801332G (Incorporated in the Republic of Singapore)
NOTICE IS HEREBY GIVEN that the 25th Annual General Meeting of Singapore Shipping
Corporation Limited (the Company) will be held at Klapsons, The Boutique Hotel, Tower Fifteen,
Level 18, 15 Hoe Chiang Road, Singapore 089316 on Thursday, 25 July 2013 at 10:00 a.m. to transact
the following business:
ORDINARY BUSINESS
1. To receive and adopt the Audited Financial Statements for the financial year ended
31 March 2013 and the Directors Report and Auditors Report thereon. (Resolution 1)
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 2013. (Resolution 2)
3. To approve the payment of Directors Fees of S$195,000 for the financial year ended
31 March 2013. (Resolution 3)
4. To re-elect Mr Ow Yew Heng, who is retiring in accordance with Article 91 of the Articles of
Association of the Company, as a Director. (Resolution 4)
5. To re-elect Lt-Gen (Retd) Ng Jui Ping, who is retiring in accordance with Article 91 of the
Articles of Association of the Company, as a Director.
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
Singapore Exchange Securities Trading Ltd (SGX-ST). (Resolution 5)
6. To re-elect Mr Jones Christopher Adrian, who is retiring in accordance with Article 97 of the
Articles of Association of the Company, as a Director.
Note: Mr Jones Christopher Adrian will, upon his re-election as Director, remain as Chairman
of the Remuneration Committee, and member of the Executive and Audit Committees.
He is considered independent for the purposes of Rule 704(8) of the Listing Manual
of the SGX-ST. (Resolution 6)
7. To re-appoint KPMG LLP as Auditors of the Company and to authorise the Directors to fix
their remuneration. (Resolution 7)

94
NOTICE OF ANNUAL GENERAL MEETING AND BOOKS CLOSURE

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:
8. That authority be and is hereby given to the Directors to:
(a) (i) issue new shares in the capital of the Company (shares) whether by way of
rights, bonus or otherwise; and/or
(ii) make or grant offers, agreements or options (collectively, Instruments) that

might or would require shares to be issued, including but not limited to the
creation and issue of (as well as adjustments to) warrants, debentures or other
instruments convertible into shares, at any time and upon such terms and
conditions and for such purposes and to such persons as the Directors may in
their absolute discretion deem fit; and
(b) (notwithstanding the authority conferred by this Resolution may have ceased to be in
force) issue shares in pursuance of any Instruments made or granted by the Directors
while this Resolution was in force,
provided that:
(i) the aggregate number of shares to be issued pursuant to this Resolution

(including shares to be issued in pursuance of Instruments made or granted
pursuant to this Resolution), does not exceed 50% of the issued shares in the
capital of the Company (as calculated in accordance with sub-paragraph (ii)
below), of which the aggregate number of shares to be issued other than on a
pro rata basis to shareholders of the Company (including shares to be issued
in pursuance of Instruments made or granted pursuant to this Resolution)
does not exceed 20% of the issued shares in the capital of the Company (as
calculated in accordance with sub-paragraph (ii) below);
(ii) (subject to such manner of calculation as may be prescribed by the SGX-ST)

for the purpose of determining the aggregate number of shares that may be
issued under sub-paragraph (i) above, the percentage of issued shares shall
be based on the number of issued shares in the capital of the Company at the
time this Resolution is passed, and adjusting for: (1) new shares arising from
the conversion or exercise of any convertible securities or share options or
vesting of share awards which are outstanding or subsisting at the time this
Resolution is passed; and (2) any subsequent bonus issue, consolidation or
subdivision of shares;
(iii) in exercising the authority conferred by this Resolution, the Company shall
comply with the provisions of the Listing Manual of the SGX-ST for the time
being in force (unless such compliance has been waived by the SGX-ST) and
the Articles of Association for the time being of the Company; and

95
SPECIAL BUSINESS (continued)
(iv) (unless revoked or varied by the Company in General Meeting) the authority
conferred by this Resolution shall continue in force until the conclusion of
the next Annual General Meeting of the Company or the date by which the
next Annual General Meeting of the Company is required by law to be held,
whichever is the earlier.
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 debentures) convertible into
shares, and to issue shares in pursuance of such instruments, up to an amount not exceeding
in total 50% of the issued shares in the capital of the Company, with a sub-limit of 20% for
issues other than on a pro rata basis to shareholders. (Resolution 8)
OTHER BUSINESS
To transact any other business that may be transacted at an Annual General Meeting of the
Company.
NOTICE IS ALSO HEREBY GIVEN that the Share Transfer Books, Register of Members of the
Company will be closed on 2 August 2013 for the preparation of dividend warrants. Duly completed
registrable transfers received by the Companys Registrar, M & C Services Private Limited of 112
Robinson Road, #05-01, Singapore 068902, up to the close of business at 5:00 p.m. on 1 August
2013 will be registered to determine the shareholders entitlement to the proposed dividend. In
respect of shares in securities accounts with The Central Depository (Pte) Limited (CDP), the said
dividend will be paid by the Company to CDP which will in turn distribute the dividend entitlements
to such holders of shares in accordance with its practice.
If approved, the proposed dividend will be paid on 22 August 2013.
BY ORDER OF THE BOARD
CHEW HENG SIANG CHRISTINA

COMPANY SECRETARY
Singapore
10 July 2013
Notes:
A member of the Company entitled to attend and vote at the Meeting is entitled to appoint not more than two proxies to attend
and vote in his stead. Where a member appoints more than one proxy, he shall specify the proportion of his shareholdings to be
represented by each proxy. A proxy need not be a member of the Company.
The instrument appointing a proxy must be deposited at the registered office of the Company at 200 Cantonment Road,
#09-01 Southpoint, Singapore 089763 not less than 48 hours before the time appointed for holding the Meeting.

This page is intentionally left blank.
PROXY FORM IMPORTANT: FOR CPF INVESTORS ONLY
1. This Annual Report is forwarded to them at the request of their CPF
SINGAPORE SHIPPING CORPORATION LIMITED Approved Nominees and is sent solely FOR INFORMATION ONLY.
Company Registration No. 198801332G 2. This Proxy Form is not valid for use by CPF Investors and shall be
(Incorporated in the Republic of Singapore) ineffective for all intents and purposes if used or purported to be
used by them.
3. CPF Investors who wish to attend the meeting as Observers have to
submit their requests through their respective Agent Banks so that
their Agent Banks may register with the Companys Registrar (please
see Note No. 7 on the reverse).
I/We
of
being a member/members of the abovementioned Company, hereby appoint
NRIC/Passport Proportion of
Name Address
Number Shareholdings
No. of Shares %
and/or (please delete as appropriate)

NRIC/Passport Proportion of
Name Address
Number Shareholdings
No. of Shares %
as my/our proxy/proxies, to vote for me/us and on my/our behalf and, if necessary to demand a poll,
at the 25th Annual General Meeting of the Company to be held at Klapsons, The Boutique Hotel,
Tower Fifteen, Level 18, 15 Hoe Chiang Road, Singapore 089316 on Thursday, 25 July 2013 at
10:00 a.m. and at any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against
the Resolutions to be proposed at the Annual General Meeting as indicated below. In the absence
of specific directions, the proxy/proxies will vote or abstain from voting at his/their discretion, as he/
they will on any other matter arising at the Annual General Meeting. The authority includes the right
to demand or to join in demanding a poll and to vote on a poll.
Resolution
Ordinary Resolutions For* Against*
No.
1. Adoption of Directors Report and Audited Financial Statements
2. Declaration of Dividend
3. Approval of Directors Fees of S$195,000
4. Re-election of Mr Ow Yew Heng as Director
5. Re-election of Lt-Gen (Retd) Ng Jui Ping as Director
6. Re-election of Mr Jones Christopher Adrian as Director
7. Re-appointment of KPMG LLP as Auditors
8. Authority to issue shares
* Please indicate your vote For or Against with a tick in the box provided.
Dated this day of 2013 Total Number

of Shares held
Signature(s) or Common Seal of Member(s)
Important: Please read the notes on the overleaf.

2nd fold here
Affix
Postage
Stamp
The Company Secretary

200 Cantonment Road
#09-01 Southpoint
Singapore 089763
1st fold here
NOTES
1. Please insert the total number of shares held by you. If you appointing a proxy or proxies is executed by a corporation,
have shares entered against your name in the Depository it must be executed either under its common seal or
Register (as defined in Section 130A of the Companies under the hand of an officer or attorney duly authorised.
Act, Chapter 50), you should insert that number of
shares. If you have shares registered in your name in the 6. A corporation which is a member may authorise by
Register of Members, you should insert that number of resolution of its directors or other governing body
shares. If you have shares entered against your name such person as it thinks fit to act as its representative
in the Depository Register and shares registered in your at the meeting, in accordance with Section 179 of the
name in the Register of Members, you should insert the Companies Act, Chapter 50.
aggregate number of shares entered against your name
in the Depository Register and registered in your name 7. Agent Banks acting on the request of the CPF Investors
in the Register of Members. If no number is inserted, the who wish to attend the meeting as Observers are
instrument appointing a proxy or proxies shall be deemed requested to submit in writing, a list with details of the
to relate to all the shares held by you. investors names, NRIC/passport numbers, addresses
and number of shares held. The list, signed by an
2. A member of the Company entitled to attend and vote at a authorised signatory of the Agent Bank, should reach the
meeting of the Company is entitled to appoint one or two Companys Registrar at least 48 hours before the time
proxies to attend and vote instead of him. A proxy need fixed for holding the meeting.
not be a member of the Company.
3. Where a member appoints two proxies, the appointments GENERAL

shall be invalid unless he specifies the proportion of his
shareholding (expressed as a percentage of the whole) to The Company shall be entitled to reject the instrument
be represented by each proxy. appointing a proxy or proxies if it is incomplete, improperly
completed or illegible or where the true intentions of the
4. To be effective, the instrument appointing a proxy appointor are not ascertainable from the instructions of the
or proxies must be completed and deposited at the appointor specified in the instrument appointing a proxy
registered office of the Company at 200 Cantonment or proxies. In addition, in the case of shares entered in the
Road, #09-01 Southpoint, Singapore 089763 not less Depository Register, the Company may reject any instrument
than 48 hours before the time appointed for the meeting. appointing a proxy or proxies lodged, if the member, being
the appointor, is not shown to have shares entered against his
5. The instrument appointing a proxy or proxies must name in the Depository Register as at 48 hours before the time
be executed under the hand of the appointor or of his appointed for holding the meeting, as certified by The Central
attorney duly authorised in writing. Where the instrument Depository (Pte) Limited to the Company.
Safely Navigating Forward
Annual Report 2012/2013
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Annual Report 2012/2013

CONTENTS 02 Chairmans Message

Annual Repo rt 2012/2013

Singapore Shipping Corporation Limited

The global shipping industry remains depressed

Amidst this instability, SSC is firmly anchored

As the global shipping industry undergoes

From our initial beginnings as Hai Sun Hup over

Sin g a p o re S h i p p i n g Cor por a tion L imite d

M.V. Boheme and M.V. Sirius Leader two to three PROSPECTS

In view of our satisfactory results, the Board is OW CHIO KIAT AO

Annual Repo rt 2012/2013

MR OW CHIO KIAT AO MR OW CHEO GUAN MR OW YEW HENG

Sin g a p o re S h i p p i n g Cor por a tion L imite d

MR TAN GUONG CHING LT-GEN (RETD) NG JUI PING MR JONES CHRISTOPHER

General Ng holds a Master of

Annual Repo rt 2012/2013

BOARD OF DIRECTORS REGISTERED OFFICE

Sin g a p o re S h i p p i n g Cor por a tion L imite d

August 2013 Scheduled payment of final dividend for FY 2013

November 2013 Announcement of FY 2014 second quarter results

February 2014 Announcement of FY 2014 third quarter results

May 2014 Announcement of FY 2014 full year results

Annual Repo rt 2012/2013

Revenue (US$000) 19,914 19,711 15,669 7,972 8,142

Prot / (Loss) attributable to owners

Dividend per share

Sin g a p o re S h i p p i n g Cor por a tion L imite d

As at 31 March 2013 2012 2011 2010 2009

Current assets 19,432 15,276 13,735 40,425 35,578

Trade and other liabilities 3,451 2,487 2,149 1,103 1,274

Net assets 57,348 53,829 51,676 48,722 48,861

Equity attributable to owners

Annual Repo rt 2012/2013

REVENUE PROFIT / (LOSS)

2009 2010 2011 2012 2013

EARNINGS / (LOSS) RETURN

2009 2010 2011 2012 2013

Sin g a p o re S h i p p i n g Cor por a tion L imite d

SHAREHOLDERS NET ASSET

2009 2010 2011 2012 2013

Annual Repo rt 2012/2013

Vessel Boheme Sirius Leader Singa Ace Cougar Ace

% Owned 100 100 100 30

Capacity 7,200 cars 5,190 cars 4,889 cars 5,540 cars

Year Built 1999 2000 1984 1993

Charter 2010 2011 1984 1993

Charterer Wallenius Lines AB Nippon Yushen Mitsui O.S.K. Mitsui O.S.K.

Sin g a p o re S h i p p i n g Cor por a tion L imite d

CORPORATE GOVERNANCE STATEMENT

a. Boards conduct of its affairs

Ensure effective management leadership of the highest quality and integrity

Provide oversight in the proper conduct of the Groups businesses

Annual Repo rt 2012/2013

CORPORATE GOVERNANCE STATEMENT

1. BOARD MATTERS (continued)

a. Boards conduct of its affairs (continued)

The frequency of Board, Audit Committee, Nominating Committee and Remuneration

Number of meetings attended during the

Number of meetings held 4 4 1 1

Sin g a p o re S h i p p i n g Cor por a tion L imite d

1. BOARD MATTERS (continued)