ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) G2 Comparatives (continued) Group Reclassified Previously reported $’000 $’000 Presented in Consolidated Statement of Cash Flows Other receivables, deposits and prepayments (55,260) (54,041) Loans to staff and third parties – (1,219) Presented in the Notes to Financial Statements Note B4: Other income, net Government grants – 13,180 Grant income from Wage Credit Scheme – 5,910 Other expense Fair value changes of investment in associates (1,978) – Note E2: Finance costs, net Fair value changes of investment in associates – (1,978) Note C7: Derivative financial instruments – 6,035 Receivable: Within 1 year 339,709 345,744 Note C9: Derivative financial instruments – 27,376 Payable: Within 1 year 1,985,521 2,012,897 G3 Impact of COVID-19 The COVID-19 pandemic has significantly affected countries around the world, resulting in recessions in many economies. Businesses have been impacted by demand reduction, supply chain challenges and workforce disruptions. The Group, with its global presence is not spared, with the effect more pronounced in the Group’s Aerospace sector. Set out below is the impact of COVID-19 on the Group’s financial performance reflected in this set of financial statements for the year ended 31 December 2020: (i) The Group has assessed that the going concern basis of preparation for this set of financial statements remains appropriate. (ii) In 2020, reduction in customer demand, supply chain challenges, and workforce disruption have negatively impacted business volume and operations, resulting in a negative impact on the Group’s financial performance for 2020. / ST ENG I NEER I NG 278