Page 105 - ar2013.pdf

NOTES TO THE FINANCIAL STATEMENTS
For the Ànancial year ended 31 December 2013
103
Annual Report 2013
F i nanc i a l Statement s
4. Revenue
The Group
2013 2012
$’000 $’000
Construction revenue
- Ship building and marine engineering 2,878,612 2,975,466
Rendering of services
- Ship repair and marine engineering 573,893 705,078
- Charter hire 54,731 52,839
Others 898 878
Total sales 3,508,134 3,734,261
5. Expenses by nature
The Group
2013 2012
$’000 $’000
Allowance for impairment of property, plant and equipment 110 8,131
Allowance for impairment of transferable club memberships 11 73
Amortisation of deferred expenditure 86 85
Changes in inventories and construction contract work-in-progress (784,475) 162,672
Commission 41,714 54,591
Crew overheads 12,401 9,796
Depreciation of property, plant and equipment and
investment properties 183,525 178,895
Director and employee compensation (Note 6) 363,758 354,675
Net allowance for impairment of trade and other receivables 5,228 7,814
Net allowance for inventory write-down 23,678 2,013
Net allowance for/(reversal of) expected losses recognised
on construction contracts 85,717 (28,564)
Non-audit service fees paid/payable to auditor of the Company 35 93
Other expenses 126,731 133,111
Provision for an onerous contract 144 –
Raw materials, finished goods, consumables and other overheads 2,834,362 2,067,980
Rental expense on operating leases 78,758 74,467
Repairs and maintenance 18,813 25,581
Sub-contractor expenses 439,680 467,274
Vessel overheads 16,147 8,884
Write-off of property, plant and equipment 469 230
Total cost of sales, distribution and administrative expenses 3,446,892 3,527,801