Fna Project Q9

Question 9 Refer to the balance sheet. Are there any investments in other companies or entities made by the company? How are they accounted for? Yes, Stamford Tyres Corporation has investments in other companies and entities in the form of i.

Subsidiary companies

ii.

Joint venture company

iii.

Associated companies

In the financial statements of the Company, investments in subsidiary companies are stated at cost less provision for diminution in value. Acquisitions of subsidiary companies are accounted for using the purchase method of accounting.

Joint ventures are regarded as entities in which the Group holds an interest on a longterm basis and are jointly controlled by the Group with one or more parties under a contractual agreement. The Group’s interest in the joint venture company is included in the consolidated balance sheet and profit and loss account using the proportionate consolidation method, whereby the Group’s share of the joint venture company’s assets, liabilities, income and expenses are combined on a line by line basis with similar items in the consolidated financial statements. In the financial statements of the Company, investments in Joint Venture Company are stated at cost less provision for diminution in value.

An associated company is defined as a company, not being a subsidiary company, in which the Group has a long-term interest of not less than 20% of the equity and in whose financial and operating policy decisions the Group exercises significant influence. The Group’s share of the results of associated companies is included in the consolidated profit and loss account. The Group’s share of the post-acquisition reserves of associated companies is included in the investments in the consolidated balance sheet. When the Group’s share of post-acquisition losses exceeds the carrying amount of the respective investment, the investment is reported at nil value and recognition of losses is discontinued except to the extent of the Group’s commitment. Where the audited financial statements of these associated companies are not coterminous with those of the Group, the share of profits is arrived at from the last audited financial statements available and unaudited management financial statements to the end of the accounting period. In the financial statements of the Company, investments in associated companies are stated at cost less provision for any diminution in value. List of Subsidiary Companies (Held by the Company) 1. Stamford Tyres International Pte Ltd (Singapore) 2. Stamford Tyres (M) Sdn Bhd (Malaysia) 3. STC Tyres (Malaysia) Sdn Bhd (Malaysia) 4. Stamford Tyre Mart Sdn Bhd (Malaysia) 5. Stamford Tires Distributor Co., Ltd (Thailand) 6. STC Tyres Limited (Thailand) 7. Stamford Auto Mart Limited (Thailand) 8. Stamford Tures (China) Limited (Hong Kong) 9. Boon Tyre Holdings Limited (Hong Kong) 10. Stamford Tires (Latin America), Inc. (United States of America) 11. Stamford Tyres (Africa) (Proprietary) Limited (South Africa) 12. PT Stamford Tyres Indonesia (Indonesia)

13. PT Stamford Tyres Distributor Indonesia (Indonesia) 14. Green Tyre Singapore Pte Ltd (Singapore) 15. Stamford Auto City Pte Ltd (Singapore) 16. Wahsan Trading Pte Ltd (Singapore) 17. Stamford Sport Wheels Company Limited (Thailand) 18. Stamford Internation Trading (Tianjin) Co. Ltd. (People’s Republic of China) 19. Stamford Tyres Australia Pty Limited (Australia) 20. Stamford Tyres Korea Ltd (South Korea) 21. Stamford Tyres Philippines, Inc. (Philippines) List of Subsidiary Companies (Held by Stamford Tyres (China) Limited) 1. Stamford Tyres (Shanghai) Limited (China) 2. Stamford Tyres (Guangzhou) Limited (China) List of Subsidiary Companies (Held by Boon Tyre Holdings Limited) 1. Raffles Resources Singapore Pte Ltd (Singapore) Joint Venture Company (Held by the Company) 1. Tyre Pacific (HK) Limited (Hong Kong) Associated Companies (Held by the Company) 1. Stamford Tyres (Thailand) Co., Ltd (Thailand) Associated Companies (Held by Tyre Pacific (HK) Limited) 1. SRITP Limited (British Virgin Islands)