Page Financial Calendar 2. Corporate Information 3. Chairman s Statement and Operations Review 4. Financial Highlights 9. Financial Contents 13

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1 C o n t e n t s Page Financial Calendar 2 Corporate Information 3 Chairman s Statement and Operations Review 4 Financial Highlights 9 Financial Contents 13 Shareholding Statistics 49 Notice of Annual General Meeting 51 Proxy Form 1 Auric Pacific Group Limited Annual Report 2000

2 Financial Calendar 8 September October December March April April May to 8 May May 2001 Announcement of interim results for the year ended 31 December 2000 Payment of 2.0 cents net interim dividend for the year ended 31 December 2000 Financial year-end Announcement of unaudited full year results for the year ended 31 December 2000 Despatch of Annual Report Fourteenth Annual General Meeting Book closure dates for preparation of dividend (both dates inclusive) warrants Payment of 3.0 cents net final dividend for the year ended 31 December Auric Pacific Group Limited Annual Report 2000

3 Corporate Information BOARD OF DIRECTORS James T Riady, Executive Chairman Stephen T Riady, Group Managing Director Joseph Shing Chiang, Group Deputy Managing Director Yao Che Wan, Finance Director John Lee Luen Wai Lee Seng-Huang Tony Tan Choon Keat Tan Kai Seng Wee Sin Tho Christopher James Williams AUDIT COMMITTEE Tan Kai Seng, Chairman John Lee Luen Wai Yao Che Wan COMPANY SECRETARY Peter Tay Yew Beng CORPORATE HEAD OFFICE AND REGISTERED OFFICE 9 Temasek Boulevard #41-01 Suntec Tower Two Singapore Tel: Fax: SHARE REGISTRAR M & C Services Private Limited 138 Robinson Road #17-00 Hong Leong Centre Singapore Tel: AUDITORS Ernst & Young Partner-Nagaraj Sivaram PRINCIPAL BANKERS Oversea-Chinese Banking Corporation Limited Overseas Union Bank Limited The Development Bank of Singapore Limited United Overseas Bank Limited STOCK EXCHANGE LISTING The Singapore Exchange Securities Trading Limited GROUP MANAGEMENT Stephen T Riady, Group Managing Director Joseph Shing Chiang, Group Deputy Managing Director Yao Che Wan, Finance Director Peter Tay Yew Beng, Company Secretary Foo Weng Kong, Group Financial Controller TECHNOLOGY GROUP Joseph Shing Chiang, Group Deputy Managing Director and Director-in-charge of technology group FOOD OPERATIONS Singapore Joseph Shing Chiang, Group Deputy Managing Director and CEO of food operations Steven Lauw, Executive Director Auric Pacific Marketing Pte Ltd Joseph Ooi, General Manager Sunshine Bakeries (a division of Auric Pacific Food Industries Pte Ltd) Patricia Wong Kin May (Ms), Manager Business Development Hong Yuen Weng, Manager Management Information Services Malaysia F. F. Tong, Assistant General Manager Auric Pacific (M) Sdn. Bhd 3 Auric Pacific Group Limited Annual Report 2000

4 Chairman s Statement & Operations Review 4 Auric Pacific Group Limited Annual Report 2000

5 Chairman s Statement & Operations Review The Group registered a net profit after tax and before extraordinary items of S$8.2 million for the year ended 31 December 2000, an increase of 75% over the previous year s net profit of S$4.7 million. On behalf of the Board of Directors, I am pleased to report on the operations and financial performance of the Group for the year ended 31 December GROUP RESULTS The Group registered a net profit after tax and before extraordinary items of S$8.2 million for the year ended 31 December 2000, an increase of 75% over the previous year s net profit of S$4.7 million. The key contributing factors to this performance were improved operating efficiency and inventory turnover from the sales and distribution operations, higher interest income and write-back of prior years provision for tax which accounted for the bulk of the net profits after tax. The higher income was however, eroded by the start-up costs of the Auric Technology Group, higher corporate expenses and the bakery s operating losses. The Group also registered an extraordinary gain of S$6.5 million resulted primarily from the gain on sale of investment properties at Sim Lim Square in July The profit attributable to shareholders rose by 14% to S$14.7 million compared to the previous year s gain of S$12.8 million. For the year 2000, the Group s turnover of S$125 million, which was 15% lower compared to the previous year, was within the management s expectation. This was largely due to the divestment of under-performing or nonstrategic assets in the low margin commodity business, Siam Food business, Wellington Cold Storage and investment properties at Sim Lim Square, in line with the Group s business rationalization and investment focus for better returns. 5 Auric Pacific Group Limited Annual Report 2000

6 Chairman s Statement & Operations Review FOOD GROUP ACTIVITIES The highly competitive bread market in Singapore consolidated further with one player being acquired by another in late However, Sunshine Bakeries being a premium household brand, will be positioning itself to address competition with better quality products and a wider range of choices that will benefit consumers. The bakery will focus more on improving efficiency and enhancing its R&D team to produce better and tastier bread. Its goal is to be the most efficient bread manufacturer, providing good value to the consumer in the region. Sunshine Bakeries was awarded ISO 9002, ISO and Hazard Analysis Critical Control Point (HACCP) certificates in It aims to set the highest standard for bread manufacturing in Singapore and in Asia. The merging of the Group s sales and distribution business at Enterprise Road after its acquisition of EAC Consumer Products (S) Pte Ltd [renamed Auric Pacific Marketing Pte Ltd ( APM )] in February 1999 has shown favorable results with better utilization of premises and operational efficiency. In 2001, APM was appointed by Nabisco to distribute their products in Singapore. Although the management focus is on acquiring brands and agencies with growth potential and better margins, business processes will continue to be further improved and streamlined to bring about greater added value to principals and customers. In Malaysia, the Group s sales and distribution operation had appointed a new distributor. Although sales have been affected to some extent by the change in distributorship, the operation in Malaysia remains profitable with emphasis on the promotion of house brands, SCS and Buttercup. APM is expanding its market presence in Malaysia through setting-up of a joint-venture manufacturing plant to produce our house brand of Buttercup. APM s goal is to be a regional marketing and distribution company covering Singapore, Malaysia, Indonesia, Thailand, Vietnam, Hong Kong, the Philippines and The People s Republic of China. 6 Auric Pacific Group Limited Annual Report 2000

7 Chairman s Statement & Operations Review TECHNOLOGY GROUP At an Extraordinary General Meeting held on 4 May 2000, a mandate was given to the Group to establish the Auric Technology Group to invest up to S$100 million in growing technology areas, namely, internet/e-commerce and related areas, info-communications technology, semi-conductor/microelectronics and bio-technology. For the year 2000, the Auric Technology Group invested S$12.6 million in technology-related businesses. At the end of December 2000, the Technology Group decided to outsource the management of the technology investment business to the management team which previously headed the Group s technology investment business. INVESTMENT ACTIVITIES The Group sold its investment properties in Sim Lim Square in July Its key investment focus is on higher yield financial instruments inclusive of short-term deposits with financial institutions and blue-chip corporate papers in Singapore and the region. CORPORATE STRUCTURE During the year Mr. P J Smith left the company as Chief Executive Officer of the Food Operations in June 2000 and his role and responsibilities were assumed by Mr. Joseph Shing Chiang, Group Deputy Managing Director. On 31 December 2000, Dr. Lim Boh Soon relinquished his position as Chief Executive Officer of the Auric Technology Group to start his own fund-management company. On behalf of the Board, I would like to record a word of thanks to both Mr. P J Smith and Dr. Lim Boh Soon for their valuable contributions to the Group and wish them every success in their endeavors. 7 Auric Pacific Group Limited Annual Report 2000

8 Chairman s Statement & Operations Review SHARE CAPITAL AND OPTIONS During the year, the issued capital of the Company increased by S$32,500 as a result of the issue of 65,000 shares of S$0.50 each for cash, upon the exercise of executive share options at an issue price of S$1.02. DIVIDEND Subject to the approval of the shareholders at the Annual General Meeting of the company to be held on 23 April 2001, the directors are recommending a final dividend of 3.0 cents net of tax (24.5% income tax) for the year ended 31 December 2000 to be paid on 23 May The Transfer Books and Register of Members of the Company will be closed from 4 May 2001 to 8 May 2001 (both dates inclusive), for the preparation of dividend warrants. Duly completed and stamped transfers received by the Company s Registrar, M&C Services Private Limited at 138 Robinson Road #17-00 Hong Leong Centre Singapore by 5:00 pm on 3 May 2001 (the Book Closure Date ) will be registered to determine shareholders entitlement to the final dividend. Shareholders (being depositor(s) whose securities account with The Central Depository (Pte) Limited) are credited with shares as at the Book Closure Date will be entitled to the payment of the final dividend. This proposed final dividend, together with the interim dividend of 2.0 cents, amounts to a total dividend of 5.0 cents for 2000 compared with total dividend of 4.0 cents for The directors consider this higher total dividend justified as the extraordinary gains were achieved in 2000 and there are substantial retained profits brought forward from earlier years. PROSPECTS The merged sales and distribution operations of the Group will continue to contribute towards the Group s profitability with improved operational efficiency. With intensifying competition in the bread market, Sunshine Bakeries will position itself to address competition with better quality and variety of products. The Auric Technology Group had made certain medium to long-term investments that would not have any material impact on the current overall group performance. The Company will continue to explore investment opportunities in the Asia Pacific region that would broaden the Group s revenue base and provide long-term benefits to the Group. On the performance of the Group for the year 2001, the focus will be on revenue from investment and interest-bearing instruments. Overall, the Company expects to maintain profitability. James T Riady Chairman 8 Auric Pacific Group Limited Annual Report 2000

9 Financial Highlights Turnover $ m 200 Profit Before Tax and After Tax $ m /97 12/97 12/98 12/99 12/00 Earnings per Share Net Assets per Share cents 10 $ /97 12/97 12/98 12/99 12/00 Profit before Taxation Profit after Taxation and Minority Interests /97 12/97 12/98 12/99 12/00 6/97 12/97 12/98 12/99 12/00 9 Auric Pacific Group Limited Annual Report 2000

10 Financial Highlights FIVE YEARS FINANCIAL SUMMARY Profit & Loss Account YEAR ENDED 31Dec 31Dec 31Dec 31Dec 30 Jun $ 000 $ 000 $ 000 $ 000 $ 000 Turnover Continuing businesses 122, , , , ,035 Discontinued businesses 3,340 6,820 17,064 5,225 16,698 Total 125, , , , ,733 Profit before taxation Continuing businesses 3,842 6,121 8,508 6,008 7,881 Discontinued businesses 2, (228) 25 6,060 6,485 8,651 5,780 7,906 Share of results of associated company (1,816) 6,060 6,485 8,651 5,780 6,090 Taxation 2,114 (1,819) (2,830) (1,931) (2,307) Profit after taxation 8,174 4,666 5,821 3,849 3,783 Minority interests - (133) (229) 4 (165) Profit before extraordinary items 8,174 4,533 5,592 3,853 3,618 Extraordinary items 6,482 8,296 (5,023) (12,658) (456) Attributable to members 14,656 12, (8,805) 3, Auric Pacific Group Limited Annual Report 2000

11 Financial Highlights Balance Sheet YEAR ENDED 31Dec 31Dec 31Dec 31Dec 30 Jun $ 000 $ 000 $ 000 $ 000 $ 000 Fixed assets 17,502 20,488 23,428 28,780 30,535 Investments 16,049 70,000 70,000 86, ,588 Balances with Financial Institutions 136, , , ,380 27,667 Corporate papers and managed funds 72,301 37,000 19,000 35,465 95,419 Working capital 12,017 4,096 (1,199) 2,962 11,651 Deferred liability (432) (2,132) (2,132) (3,891) (3,904) Finances by: 254, , , , ,956 Share capital 62,826 62,794 62,606 62,606 62,606 Reserves 191, , , , , , , , , ,090 Minority interest , , , , ,956 Ratio: Earnings per $0.50 share (cents) Dividends net per $0.50 share (cents) Net assets per share ($) After tax return on shareholders funds(%)(note1) Note 1: The return on shareholders funds is the profit attributable to members before extraordinary items expressed as a percentage of share capital and reserves. 11 Auric Pacific Group Limited Annual Report 2000

12 Financial Review 12 Auric Pacific Group Limited Annual Report 2000

13 13 Auric Pacific Group Limited Annual Report 2000

14 Sunshine Achieves Highest on Goodness Sunshine has just become Asia s first and only bakery to be awarded the leading certificates by PSB for quality, environmental friendliness, and food safety & hygiene. AWARDED CERT.NO.: SS ISO 9002:1994 CERT.NO.: CERT.NO.: H SS ISO 14001:1996 CODEX CAC/RCP ,REV3 (1997) SS 444: Auric Pacific Group Limited Annual Report 2000

15 C o n t e n t s Page Financial Calendar 2 Corporate Information 3 Chairman s Statement and Operations Review 4 Financial Highlights 9 Financial Contents 13 Shareholding Statistics 49 Notice of Annual General Meeting 51 Proxy Form 151 Auric Pacific Group Limited Annual Report 2000

16 Auric Pacific Group Limited 9 Temasek Boulevard #41-01 Suntec Tower Two Singapore Tel: (65) Fax: (65) Auric Pacific Group Limited Annual Report 2000

17 AURIC PACIFIC 17 Auric Pacific Group Limited Annual Report 2000

18 F i n a n c i a l C o n t e n t s Page Directors Report 14 Statement by Directors 25 Auditors Report 26 Profit and Loss Accounts 27 Balance Sheets 28 Statements of Changes in Equity 29 Consolidated Statement of Cash Flows 30 Notes to the Financial Statements Auric Pacific Group Limited Annual Report 2000

19 Directors Report The Board of Directors present their report to the members together with the audited financial statements of the Company and of the Group for the year ended 31 December PRINCIPAL ACTIVITIES The principal activity of the Company is that of investment holding. The principal activities of its subsidiaries are:- a) wholesale distribution of food and allied fast-moving consumer goods; b) food manufacturing; and c) investment. There have been no significant changes in the nature of these activities during the financial year. CORPORATE GOVERNANCE Board of Directors The Board of Directors consists of members who have broad corporate experience. The Board comprises ten members, six of whom are non-executive directors. The Board supervises the management of the business and affairs of the Group. Apart from its statutory responsibilities, the Board approves the Group s strategic plans, key operational initiatives, major investments and funding decisions; identifies principal risks of the Group s business and ensures the implementation of appropriate systems to manage these risks; reviews the financial performance of the Group and evaluates the performance and compensation of senior management personnel. These functions are carried out either directly or through Board committees like the Audit Committee and Remuneration Committee. Audit Committee The Board of Directors have adopted the principles of corporate governance under the Best Practices Guide with respect to Audit Committees as formulated by the Singapore Exchange. The Audit Committee comprises three members. As at the date of this report, the members of the Audit Committee, the majority of whom (including the Chairman of the Audit Committee) are non-executive directors are:- Mr. Tan Kai Seng (Chairman) Mr. John Lee Luen Wai Mr. Yao Che Wan (Independent) (Independent) 14 Auric Pacific Group Limited Annual Report 2000

20 Directors Report CORPORATE GOVERNANCE (cont d) The Audit Committee holds periodic meetings and performs the following functions: i. reviews with the external auditors, their audit plan, evaluation of the internal accounting controls, audit report and any matters which the external auditor wishes to discuss without executive Board members present; ii. iii. iv. reviews with the internal auditors, the scope and results of internal audit procedures and their evaluation of the overall internal control system; reviews the half-yearly and annual financial statements, including announcements of results to shareholders prior to submission to the Board; reviews any significant findings of internal investigations; v. makes recommendations to the Board of Directors on the appointment of the external auditors and their fees; vi. vii. reviews and approves the appointment, replacement, reassignment, or the dismissal of the internal auditor; and reviews the assistance given by the Company s officers to the external and internal auditors. The Audit Committee has recommended to the Board of Directors the nomination of Ernst & Young for re-appointment as auditors of the Company at the forthcoming Annual General Meeting. Remuneration Committee The Remuneration Committee comprises of non-executive members of the Board of Directors. The Remuneration Committee is responsible for reviewing and approving the remuneration and terms of employment for senior management including Executive Chairman and the Group Managing Director. DIRECTORS The directors of the Company in office at the date of this report are: Mr. James T Riady (Executive Chairman) Mr. Stephen T Riady (Group Managing Director) Mr. Joseph Shing Chiang (Group Deputy Managing Director) Mr. Yao Che Wan (Finance Director) Mr. John Lee Luen Wai Mr. Lee Seng-Huang Mr. Tony Tan Choon Keat Mr. Tan Kai Seng Mr. Wee Sin Tho Mr. Christopher James Williams In accordance with article 91, Messrs Tony Tan Choon Keat, Tan Kai Seng and Wee Sin Tho will retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election. 15 Auric Pacific Group Limited Annual Report 2000

21 Directors Report ACQUISITION AND DISPOSAL OF SUBSIDIARY COMPANIES During the year, the following subsidiary companies were incorporated with 2 subscriber shares of $1 each at par for cash:- Name of company (Place of incorporation) Auric Technology Holdings Pte Ltd Auric Asset Management Pte Ltd Auric Technology Ventures Pte Ltd Auric Technology Enterprises Pte Ltd Principal activities (Place of business) Investment holding Provision of investment management and advisory services Investment holding Investment holding There were no acquisitions or disposals of subsidiary companies during the financial year. RESULTS FOR THE FINANCIAL YEAR The Group The Company $ 000 $ 000 Profit after taxation and before extraordinary items attributable to the shareholders 8,174 1,782 Extraordinary items 6,482 - Profit for the year 14,656 1,782 Retained profits at 1 January , ,099 Profits available for appropriation 196, ,881 Paid interim dividend of 2.0 cents net (2,513) (2,513) Proposed final dividend of 3.0 cents net (3,770) (3,770) Retained profits at 31 December , ,598 In the opinion of the directors, the results of the operations of the Company and of the Group during the financial year have not been affected by any item, transaction or event of a material and unusual nature other than the extraordinary items disclosed in note 6 to the financial statements. RESERVES AND PROVISIONS Material movements in reserves and provisions during the financial year are shown in the financial statements. 16 Auric Pacific Group Limited Annual Report 2000

22 Directors Report SHARE CAPITAL AND DEBENTURES (a) (b) During the financial year, the Company increased its issued ordinary share capital from $62,793,662 to $62,826,162 by the issue of 65,000 shares of $0.50 each for cash by virtue of the exercise of share options pursuant to the Auric Pacific Group Limited Executives Share Option Scheme, at an issue price of $1.02. The Company did not issue any debentures. Save as disclosed above no company in the Group has issued any shares or debentures. ARRANGEMENT TO ENABLE DIRECTORS TO ACQUIRE SHARES OR DEBENTURES Apart from the granting of share options during the year, neither during nor at the end of the financial year was the Company a party to any arrangement whose object was to enable the directors of the Company to acquire benefits through the acquisition of shares in, or debentures of, the Company or any other corporate body. DIRECTORS INTEREST IN SHARES OR DEBENTURES (a) According to the register of directors shareholdings, the following directors who held office at the end of the financial year had the following interests in the shares of the Company and related companies: Shareholdings registered Shareholdings in which directors in the name of directors are deemed to have an interest 01/01/00# 31/12/00 21/01/01 01/01/00# 31/12/00 21/01/01 Auric Pacific Group Ltd (Ordinary shares of S$0.50 each) Mr. James T Riady ,548,335 63,548,335 No change Mr. Stephen T Riady ,548,335 63,548,335 No change Mr. Wee Sin Tho ,120,821 32,120,821 No change Nine Heritage Pte Ltd (Ordinary shares of S$1.00 each) Mr. James T Riady , ,000 No change Mr. Stephen T Riady , ,000 No change Mr. Wee Sin Tho , ,000 No change Jeremiah Holdings Limited (Ordinary shares of S$1.00 each) Mr. James T Riady , ,187 No change Mr. Stephen T Riady , ,187 No change Lippo China Resources Limited (Ordinary shares of HK$0.10 each) Mr. James T Riady ,330,995,736 6,141,720,389 No change Mr. Stephen T Riady ,330,995,736 6,141,720,389 No change 17 Auric Pacific Group Limited Annual Report 2000

23 Directors Report DIRECTORS INTEREST IN SHARES OR DEBENTURES (cont d) Shareholdings registered Shareholdings in which directors in the name of directors are deemed to have an interest 01/01/00# 31/12/00 21/01/01 01/01/00# 31/12/00 21/01/01 Lippo China Resources Limited (Warrants Exercise price : HK$0.32 each subject to adjustment) Mr. James T Riady HK$233,423, HK$233,423, No change Mr. Stephen T Riady HK$233,423, HK$233,423, No change Options of HK$0.883 each (subject to adjustment) Mr. John Lee Luen Wai *(1) 1,500,000 1,500,000 No change Lippo Limited (Ordinary shares of HK$0.10 each) Mr. James T Riady ,312, ,297,776 No change Mr. Stephen T Riady ,312, ,297,776 No change Mr. John Lee Luen Wai 825, ,000 No change Mr. Joseph S Chiang 100, ,000 No change The HKCB Bank Holding Company Ltd (Ordinary shares of HK$1.00 each) Mr. James T Riady ,487, ,487,743 No change Mr. Stephen T Riady ,487, ,487,743 No change Mr. John Lee Luen Wai No change No change AcrossAsia Multimedia Limited (Ordinary shares of HK$0.10 each) Mr. James T Riady ,947,648,769 3,934,555,499 Mr. Stephen T Riady ,947,648,769 3,934,555,499 Options to acquire 2,364,000 shares * (2) Mr. Christopher James Williams - 2,364,000 No change * (1) holder of each option is entitled to subscribe for six shares of HK$0.10 each in Lippo China Resources Limited. Accordingly Mr. John Lee Luen Wai is entitled to subscribe for 9,000,000 shares in Lippo China Resources Limited. * (2) holder of the options is entitled to subscribe for shares in AcrossAsia Multimedia Limited. Accordingly Mr. Christopher James Williams is entitled to subscribe for 2,364,000 shares of HK$0.10 each in AcrossAsia Multimedia Limited. 18 Auric Pacific Group Limited Annual Report 2000

24 Directors Report DIRECTORS INTEREST IN SHARES OR DEBENTURES (cont d) Apart from the above, Messrs James T Riady and Stephen T Riady are also deemed to have interests in the ultimate holding company and its related companies including those as shown below: Shareholdings registered Shareholdings in which directors in the name of directors are deemed to have an interest 01/01/00# 31/12/00 21/01/01 01/01/00# 31/12/00 21/01/01 Lippo Cayman Limited (Ordinary shares of US$1.00 each) ,000,000 10,000,000 No change Lippo Capital Limited (Ordinary shares of HK$1.00 each) ,901, ,690,000 No change Hassell Holdings Limited (Ordinary shares of US$0.01 each) ,500 5,500 No change Medco Asia Investment Corporation (Ordinary Shares of Pesos each) ,134,498 18,659,498 No change Medco Holdings Inc. (Ordinary shares of Peso 1.00 each) ,814, ,814,901 No change The Hong Kong Building and Loan Agency Limited (Ordinary shares of HK$1.00 each) ,068, ,746,038 No change Lippo CRE (Financial Services) Limited (Ordinary shares of US$1.00 each) ,000 25,000 No change Lippocean Winterthur Underwriting Management Limited (Ordinary shares of HK$1.00 each) , ,000 No change 19 Auric Pacific Group Limited Annual Report 2000

25 Directors Report DIRECTORS INTEREST IN SHARES OR DEBENTURES (cont d) Shareholdings registered Shareholdings in which directors in the name of directors are deemed to have an interest 01/01/00# 31/12/00 21/01/01 01/01/00# 31/12/00 21/01/01 PT Lippo Investment Management (Ordinary shares of Rp1,000,000 each) No change Lippo Finance Limited (Ordinary shares of HK$1.00 each) ,176,470 6,176,470 No change Chung Po Investment Holding Co., Ltd. (Ordinary shares of HK$1.00 each) ,200,000 1,200,000 No change Dimion Limited (Shares of US$1.00 each) No change Shanghai Lippo Fuxing Real Estate Limited (Total paid up registered capital : US$25,000,000) US$23,750,000 US$23,750,000 No change Tecwell Limited (Shares of US$1.00 each) No change Zhuhai Chung Po House Property Development Company Limited (Total paid up registered capital : RMB150,000,000) RMB150,000,000 RMB150,000,000 No change PT Natrindo Telepon Seluler (Rp 500 at par per share) ,375,000 No change PT AsiaNet Multimedia (Rp 7,600/US$1 at par per share) ,333,333 No change PT Multipolar Corporation Tbk (Rp 500 at par per share) ,317,298 No change PT Broadband Multimedia Tbk (Rp 500 at par per share) ,145,320 No change PT Tryane Saptajagat (Rp 500 at par per share) ,000 No change PT Reksa Puspita Karya (Rp 500 at par per share) ,000 No change 20 Auric Pacific Group Limited Annual Report 2000

26 Directors Report DIRECTORS INTEREST IN SHARES OR DEBENTURES (cont d) Shareholdings registered Shareholdings in which directors in the name of directors are deemed to have an interest 01/01/00# 31/12/00 21/01/01 01/01/00# 31/12/00 21/01/01 PT Natrindo Global Telekomunikasi (Rp 500 at par per share) ,750,000 No change PT Lippo On Line (Rp 500 at par per share) ,000,000 No change PT Computrade Indonesia (Rp 500 at par per share) ,000,000 No change PT Sharestar Indonesia (Rp 1,000 at par per share) ,000 No change PT Natrindo Kartu Panggil (Rp 500 at par per share) ,000 No change PT Lippo Shop (Rp 500 at par per share) ,000,000 No change PT Link Net (Rp 500 at par per share) ,000,000 No change PT DialMart Indotama (Rp1,000,000 at par per share) ,000 No change Asia MobileNet Holdings Inc. (US$1 at par per share) No change Asia MobileNet (HK) Limied (HK$1 at par per share) No change e-planet Telemedia Limited (US$1 at par per share) No change Communication Resources Pte Ltd (S$1 at par per share) ,873 No change MediaManager Pte Ltd (S$1 at par per share) ,716,478 No change Digital Access Sdn Bhd (RM1 at par per share) ,000 No change # 01/01/00 or date of appointment of the relevant directors of the Company, whichever is later. 21 Auric Pacific Group Limited Annual Report 2000

27 Directors Report DIVIDENDS Dividends paid, declared or proposed since the end of the Company s last financial year are as follows: - (a) (b) (c) A final dividend, net of tax of 25.5%, amounting to $2,512,045 was paid on 20 May 2000 in respect of the financial year ended 31 December 1999 as proposed in the Report of the Directors for that period. An interim dividend, net of tax of 25.5%, amounting to $2,513,046 was paid on 25 October 2000 in respect of the year ended 31 December A proposed final dividend recommended by the directors, net of tax of 24.5%, amounting to $3,769,570 in respect of the financial year ended 31 December 2000, to be paid on 23 May 2001, subject to approval at the Annual General Meeting to be held on 23 April BAD AND DOUBTFUL DEBTS (a) (b) Before the financial statements of the Company were made out, the directors took reasonable steps to ascertain the action taken in relation to the writing off of and providing for bad and doubtful debts of the Company and have satisfied themselves that all known bad debts have been written off or provided for and that adequate provisions have been made for doubtful debts. At the date of this report, the directors are not aware of any circumstances which would render the amounts written off or provided for bad and doubtful debts in the Group of companies inadequate to any substantial extent. CURRENT ASSETS (a) (b) Before the financial statements of the Company were made out, the directors took reasonable steps to ascertain that current assets which were unlikely to realise their book values in the ordinary course of business have been written down to an amount which they might be expected to realise or that adequate provisions have been made for the diminution in values of such current assets. At the date of this report, the directors are not aware of any circumstances which would render the values attributed to current assets in the consolidated financial statements misleading. CHARGES AND CONTINGENT LIABILITIES At the date of this report, no charges have arisen since the end of the financial year on the assets of the Company or any corporation in the Group which secure the liability of any other person nor have any contingent liabilities arisen since the end of the financial year in the Company or in any corporation in the Group. ABILITY TO MEET OBLIGATIONS No contingent or other liability of the Company or any corporation in the Group has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Company and the Group to meet their obligations as and when they fall due. 22 Auric Pacific Group Limited Annual Report 2000

28 Directors Report OTHER CIRCUMSTANCES AFFECTING FINANCIAL STATEMENTS At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the consolidated financial statements which would render any amount stated in the financial statements of the Company and the consolidated financial statements misleading. UNUSUAL ITEMS In the opinion of the directors, the results of the operations of the Company and the Group during the financial year have not been substantially affected by any item, transaction or event of a material and unusual nature other than the extraordinary items which are more fully disclosed in the financial statements. UNUSUAL ITEMS AFTER YEAR END In the opinion of the directors, no item, transaction or other event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which would affect substantially the results of the operations of the Company and of the Group for the financial year in which this report is made. DIRECTORS CONTRACTUAL BENEFITS Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than as disclosed in the financial statements) by reason of a contract made by the Company or by a related corporation with the director or with a firm of which he is a member, or with a company in which he has a substantial financial interest, apart from remuneration from the Company and/or related corporations in their capacities as directors/ executives of those corporations. SHARE OPTION SCHEME (a) (b) (c) (d) The Auric Pacific Group Limited Executives Shares Option Scheme (the Scheme ) was approved by shareholders at the Annual General Meeting held on 17 December Options for 730,000 shares of S$0.50 each were granted to employees on 25 March 1998 at the option subscription price of S$1.02. These options may be exercised at any time between 25 March 1999 and 24 March Options for 785,000 shares of S$0.50 each were granted to employees on 27 April 1999 at the option subscription price of S$1.53. These options may be exercised at any time between 27 April 2000 and 26 April With regards to both the aforesaid options, the consideration for the grant of options is $1-00. Options granted will lapse when the option holder, inter alia, ceases to be an employee of the Company or of the subsidiary companies, subject to certain exceptions at the discretion of the Company. The shares under options may be exercised in full or multiples of 1000 shares upon payment of the relevant option subscription price. However an option holder may exercise his option otherwise than in multiples of 1000 shares if (and only if) such exercise is for the subscription of all (and not part only) of the shares which are the subject of the option. The employees shall not be eligible to be granted any options if he is or shall have elected to participate in any share ownership scheme implemented by the Company in the Group. 23 Auric Pacific Group Limited Annual Report 2000

29 Directors Report SHARE OPTION SCHEME (cont d) (e) (f) (g) Save as disclosed in the annual report for the year ended 31 December 1988 in which the Company s former director, Mr. Rico F da Silveira was granted options for 200,000 shares; no options have been granted to any directors of the Company. No options have been granted to controlling shareholders or their associates, or parent group employees and no employees have received 5% or more of the total options available under the scheme. Details of options granted to and exercised are as follows: NUMBER OF SHARES UNDER OPTIONS : No of Brought No of No of Options Exercise Date of Forward - Options Options Outstanding Price Per Grant As at 1/1/2000 Exercised Lapsed As at 31/12/2000 Share Expiry date 25/3/ ,000 65, ,000 90,000 S$ /3/03 27/4/ , , ,000 S$ /4/04 1,140,000 65, , ,000 (h) (i) During the financial year, no option to take up unissued shares of any subsidiary companies was granted and there were no shares of the subsidiary companies issued by virtue of the exercise of an option to take up unissued shares. At the end of the financial year, there were no unissued shares of subsidiary companies under option. AUDITORS The auditors, Ernst & Young, Certified Public Accountants, have expressed their willingness to accept re-appointment. On behalf of the Board Mr. Stephen T Riady Group Managing Director Mr. Yao Che Wan Finance Director 15 March 2001 Singapore 24 Auric Pacific Group Limited Annual Report 2000

30 Statement by Directors We state that, in the opinion of the directors: (i) (ii) the accompanying balance sheets, profit and loss accounts, the statements of changes in equity and consolidated statement of cash flows, together with the notes thereon, are drawn up so as to give a true and fair view of the state of affairs of the Company and of the Group at 31 December 2000, and the results of the business and changes in equity of the Company and the Group and the cash flows of the Group for the financial year then ended; and at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. On behalf of the Board Mr. Stephen T Riady Group Managing Director Mr. Yao Che Wan Finance Director 15 March 2001 Singapore 25 Auric Pacific Group Limited Annual Report 2000

31 Auditors Report to the Members of Auric Pacific Group Limited (incorporated in Singapore) We have audited the financial statements of Auric Pacific Group Limited set out on pages 27 to 48. These financial statements comprise the balance sheets of the Company and of the Group as at 31 December 2000, the profit and loss accounts of the Company and of the Group, the statements of changes in equity of the Company and of the Group and the consolidated statement of cash flows of the Group for the year ended 31 December 2000, and notes thereto. These financial statements are the responsibility of the Company s directors. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the directors, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, (a) the financial statements are properly drawn up in accordance with the provisions of the Companies Act (Act) and Singapore Statements of Accounting Standard and so as to give a true and fair view of:- (i) (ii) the state of affairs of the Company and of the Group as at 31 December 2000, the results and changes in equity of the Company and of the Group and the cash flows of the Group for the year then ended; and the other matters required by section 201 of the Act to be dealt with in the financial statements and consolidated financial statements; (b) the accounting and other records, and the registers required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. We have considered the financial statements and auditors reports of all subsidiary companies for which we have not acted as auditors, being financial statements included in the consolidated financial statements. The names of those subsidiary companies audited by our associated firms and those audited by other firms are stated in Note 10. We are satisfied that the financial statements of the subsidiary companies that have been consolidated with the financial statements of the Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations as required by us for those purposes. The auditors reports on the financial statements of the subsidiary companies were not subject to any qualification and in respect of subsidiary companies incorporated in Singapore did not include any comment made under section 207(3) of the Act. ERNST & YOUNG Certified Public Accountants 15 March 2001 Singapore 26 Auric Pacific Group Limited Annual Report 2000

32 Profit and Loss Accounts for the year ended 31 December 2000 Group Company Note $ 000 $ 000 $ 000 $ 000 Revenue 3 125, ,399 3,250 2,021 Cost of sales (80,593) (100,363) - - Gross profit 44,872 48,063 3,250 2,021 Other revenue Building, plant and equipment upkeep (12,625) (13,816) - - Selling and marketing expenses (16,166) (20,298) - - General and administration expenses (10,661) (7,991) (471) (441) Profit from operating activities 6,060 6,550 3,635 2,162 Finance costs - (65) (1,304) - Profit before taxation 4 6,060 6,485 2,331 2,162 Taxation 5 2,114 (1,819) (549) (600) Profit after taxation 8,174 4,666 1,782 1,562 Minority interests - (133) - - Profit before extraordinary items 8,174 4,533 1,782 1,562 Extraordinary items 6 6,482 8,296-38,407 Profit for the year 14,656 12,829 1,782 39,969 Earnings per share 6.51 cts 3.62 cts The accompanying notes form an integral part of the financial statements. 27 Auric Pacific Group Limited Annual Report 2000

33 Balance Sheets as at 31 December 2000 Group Company Note $ 000 $ 000 $ 000 $ 000 Fixed assets 9 17,502 20, Subsidiary companies , ,079 Investments 11 16,049 70,000 3,460 - Current assets Investments - quoted 7, Stocks 12 9,748 11, Trade debtors 13 25,792 29, Other debtors 14 1, Corporate papers 72,301 37,000 68,301 37,000 Balances with financial institutions , ,508 62,747 62,557 Cash and bank balances 3,847 1, , , , ,101 Current liabilities Trade creditors 15,940 19,549 1,195 1,160 Other creditors 16 11,109 10, Current taxation 5,193 7, Proposed dividend 3,770 2,512 3,770 2,512 36,012 39,485 5,754 4,514 Net current assets 221, , ,230 95,587 Non-current liabilities Deferred taxation 17 (432) (2,132) , , , ,666 Share capital 18 62,826 62,794 62,826 62,794 Share premium 1,619 1,585 1,619 1,585 Revaluation reserves 19-8,091 20,713 20,713 Merger reserves ,475 8,475 Foreign currency translation reserves (626) (598) - - Retained earnings , , , , , , , ,666 The accompanying notes form an integral part of the financial statements. 28 Auric Pacific Group Limited Annual Report 2000

34 Statements of Changes in Equity for the year ended 31 December 2000 Group Company Note $ 000 $ 000 $ 000 $ 000 Issued capital Balance at beginning 62,794 62,606 62,794 62,606 Issuance of ordinary shares Balance at end 18 62,826 62,794 62,826 62,794 Share Premium Balance at beginning 1,585 1,390 1,585 1,390 Premium on shares issued on exercise of share options Balance at end 1,619 1,585 1,619 1,585 Revaluation reserves Balance at beginning 8,091 8,091 20,713 20,713 Write-back due to disposal of investment properties (8,091) Balance at end - 8,091 20,713 20,713 Merger reserves Balance at beginning and end - - 8,475 8,475 Foreign currency translation reserves Balance at beginning (598) (795) - - Net translation difference arising during the year (28) Balance at end (626) (598) - - Retained earnings Balance at beginning 182, , ,099 88,151 Profit for the year 14,656 12,829 1,782 39,969 Dividends 7 (6,283) (5,021) (6,283) (5,021) Goodwill written-off on acquisition of a subsidiary - (148) - - Balance at end 190, , , ,099 Total equity 254, , , ,666 Net change in equity from non-owner sources excluding net profits (8,119) The accompanying notes form an integral part of the financial statements. 29 Auric Pacific Group Limited Annual Report 2000

35 Consolidated Statement of Cash Flows for the year ended 31 December $ 000 $ 000 Operating activities Receipts from customers 122, ,568 Payments to suppliers and employees (114,935) (140,775) Net cash inflow/(outflow) from operating activities before extraordinary items 7,698 (2,207) Provision for reorganisation costs utilised - (153) Net cash inflow/(outflow) from operating activities after extraordinary items 7,698 (2,360) Tax paid (1,539) (2,685) Investing activities Interest received 5,466 3,131 Purchase of fixed assets (1,911) (2,001) Purchase of quoted investments (8,856) (307) Purchase of unquoted investments (16,049) - Acquisition of a subsidiary, net of cash acquired Proceeds on sale of short-term investments 1, Proceeds on sale of fixed assets 1, Proceeds from disposal of a subsidiary, net of cash divested - 2,840 Net cash (outflow)/inflow from investing activities before extraordinary items (18,640) 4,852 Additional profit arising from a business disposed of in prior years - 3,645 Proceeds on sale of long-term investments - 4,539 Proceeds on sale of property 67,043 3,817 Net cash inflow from investing activities after extraordinary items 48,403 16,853 Financing activities Proceeds from issue of shares under option Interest paid - (65) Dividends paid (5,025) (6,891) Repayment of borrowings - (256) Net cash outflow from financing activities (4,959) (6,829) Increase in cash and cash equivalents 49,603 4,979 The accompanying notes form an integral part of the financial statements. 30 Auric Pacific Group Limited Annual Report 2000

36 Consolidated Statement of Cash Flows for the year ended 31 December Reconciliation of operating profit to net cash inflow from operating activities before extraordinary items $ 000 $ 000 Operating profit before taxation 6,060 6,485 Interest received shown under investing activities (5,466) (3,131) Interest paid shown under financing activities ,419 Depreciation charges 3,484 3,681 (Profit)/loss on sale of fixed assets (76) 4 Profit on disposal of short-term investments (180) (126) Diminution in quoted investments Decrease in stocks 2, Decrease/(increase) in trade and other debtors 2,814 (179) Decrease in creditors (1,309) (9,594) Translation differences Net cash inflow/(outflow) from operating activities before extraordinary items 7,698 (2,207) 2. Analysis of changes in cash and cash equivalents as shown in the balance sheet Opening balance 163, ,409 Net cash inflow 49,603 4,979 Closing balance 212, , Analysis of the balances of cash equivalents as shown in the balance sheet Change in year $ 000 $ 000 $ 000 Balances with financial institutions 136, ,508 12,335 Corporate papers 72,301 37,000 35,301 Cash and bank balances 3,847 1,880 1,967 Closing balance 212, ,388 49, Auric Pacific Group Limited Annual Report 2000

37 Notes to the Financial Statements 31 December Significant accounting policies (a) Basis of accounting The financial statements of the Company and of the Group, which are expressed in Singapore dollars, are prepared under the historical cost convention modified by the revaluation of certain investments and in accordance with Singapore Statements of Accounting Standard and applicable requirements of Singapore law. (b) Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiary companies, which have been made up to 31 December. The Group treats as subsidiary companies those companies (a) in which it holds more than half of the issued capital, or (b) where it controls the composition of the Board of Directors as well as more than half the voting power. The results of subsidiary companies acquired or disposed of during the year are included in or excluded from the consolidated profit and loss account from the date of their acquisition or disposal. Intercompany balances and transactions are eliminated in full on consolidation. A list of the Group s subsidiary companies is shown in note 10. (c) Goodwill Goodwill represents the excess of the consideration paid over the fair values of the net assets of businesses acquired. No value is attributed to goodwill in the Group. Purchased goodwill is written off against reserves in the year of acquisition. (d) Foreign currencies Foreign currency transactions are translated into Singapore dollars at rates of exchange approximating those ruling on the transaction dates. Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet date or at contracted rates where they are covered by forward exchange contracts. Exchange differences are included in the profit and loss account. The balance sheets and results of foreign subsidiary companies are translated into Singapore dollars at the exchange rates prevailing at the balance sheet date. Exchange differences arising from the translation of net assets of foreign subsidiary companies are taken directly to the foreign currency translation reserve. (e) Revenue recognition Revenues from the sale of goods are recognised on despatch of goods to customers. The basis of recognising dividend is set out in paragraph 1(g). All other revenue is recognised on as accrual basis. 32 Auric Pacific Group Limited Annual Report 2000

38 Notes to the Financial Statements 31 December Significant accounting policies (cont d) (f) Fixed assets Fixed assets are stated at cost or valuation less accumulated depreciation. Depreciation is calculated on the straight line method to write off the cost of fixed assets over their estimated useful lives. No depreciation is provided on freehold land and long leasehold land. The principal annual rates of depreciation are as follows :- Rate per annum Buildings - 2% Short leasehold land and buildings (50 years or less) - Over period of lease Plant and machinery - 10% Motor vehicles - 20% Computer equipment - 20% Fully depreciated assets are retained in the accounts until they are no longer in use and no further charge for depreciation is made in respect of these assets. (g) Investments Investment properties are those properties which are held on a long term basis for their investment potential and income. They are included in the balance sheet at their open market value or other appropriate basis. Investment properties are revalued annually by the directors based on a periodic independent professional valuation. An increase arising from a revaluation is transferred to revaluation reserve and a deficit is offset against this reserve to the extent possible, with any shortfall being charged to the profit and loss account. Long term investments in shares, including investments in subsidiary companies in the financial statements of the Company, are stated at their cost or valuation and provision is made for any diminution in value, other than temporary, of the investments determined on an aggregate basis. The Group s policy is generally not to revalue its long-term investments. Corporate papers are investments in marketable non-equity instruments issued by corporations. Quoted investments held as current assets are stated at the market value determined on an aggregate basis. Gains or losses arising from the changes in market values of quoted investments are taken to the profit and loss account. Dividend income is recorded gross in the profit and loss account in the accounting period when the dividend is paid by the investee company or, in the case of subsidiary companies, when it is proposed. Interest income is credited on an accrual basis. Profits and losses on disposal of investments are taken to the profit and loss account. 33 Auric Pacific Group Limited Annual Report 2000