ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) E1 Capital management (continued) Group 2020 2019 $’000 $’000 Shareholders’ funds Share capital 895,926 895,926 Treasury shares (23,743) (26,731) Capital and other reserves 18,017 (36,882) Retained earnings 1,402,414 1,389,966 2,292,614 2,222,279 Non-controlling interests 282,175 268,722 2,574,789 2,491,001 Gross debt/equity ratio 0.8 1.0 Cash and cash equivalents 729,479 452,095 Gross debt (excluding bank overdrafts) (2,062,227) (2,443,759) Net debt position (1,332,748) (1,991,664) E2 Finance costs, net Group 2020 2019 $’000 $’000 Finance income Interest income – bank deposits 3,003 4,620 – staff loans 6 7 – finance lease 617 160 – others 2,117 4,700 Exchange gain, net – 3,350 Fair value changes of financial instruments – gain on forward currency contract designated as hedging instrument 103 118 – gain on fair value changes of forward currency contract not designated as hedging instrument 863 – – gain on ineffective portion of forward currency contract designated as hedging instrument in cash flow hedges 45 3 Fair value changes of hedged items 2,520 1,332 9,274 14,290 / ST ENG I NEER I NG 238