NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
19
FINANCE LEASES (CONT’D)
It is the Group’s and the Company’s policy to lease certain of its property, plant and equipment under finance
leases. The average lease term is 5 years. For the year ended December 31, 2015, the borrowing rate ranged
from 3.9% to 5.1% (2014 : 3.9% to 7.3%) per annum. Interest rates are fixed at the contract date, and thus
expose the Group and the Company to fair value interest rate risk. All leases are on a fixed repayment basis and
no arrangements have been entered into for contingent rental payments.
The Group’s and the Company’s obligations under finance leases are secured by the lessors’ title to the leased
assets.
20
RETIREMENT BENEFIT OBLIGATIONS
Defined contribution plans
Singapore (the Company and its subsidiary)
The employees of theCompany and its subsidiary that are located inSingapore aremembers of a state-managed
retirement benefit plan, the Central Provident Fund Board, operated by the Government of Singapore. The
Company and its subsidiary are required to contribute a specified percentage of payroll costs to the retirement
benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit
plan is to make the specified contributions.
Defined benefit plan
Indonesia (PT SSS)
PT SSS provides a defined benefit pension plan, covering substantially all their permanent employees, which
is funded through monthly contributions to a separately administered fund in Indonesia. The benefits under
such pension plan have been adjusted to cover minimum benefit under Labor Law No.13/2003 of Indonesia.
The additional benefits under the Law are unfunded. In addition, PT SSS also provides their employees with
other unfunded long-term benefit in the form of vacation leave based on the number of years of service.
The pension plan is managed by Dana Pensiun Samudera Indonesia (“DPSI”), a related party. The deed of
establishment of which was approved by the Minister of Finance of the Republic of Indonesia in his decision
letter reference: KEP-042/KM.12/2006 dated July 28, 2006.
122
FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
