NOTES TO THE FINANCIAL STATEMENTSCompanies Act,Chapter 50 and Singapore Statement of Accounting Standard No.22 “Accounting for Business Combinations”,the assets,liabilities and

125CapitaLandAR 2000

NOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2000

These notes form an integral part of and should be read in conjunction with the accompanying Balance Sheets, Profit and LossAccounts, Statements of Changes in Equity and Consolidated Statement of Cash Flows.

1. PRINCIPAL ACTIVITIES/SCHEME OF ARRANGEMENT

(a) Principal Activities

The principal activities of the Company during the financial year are those relating to investment holding, theprovision of property management and related agency and consultancy services as well as the corporateheadquarters which gives direction, provides management services and integrates the activities of its subsidiaries.Theprincipal activities of the subsidiaries are set out in note 49 to the financial statements.

(b) Scheme of Arrangement

At the Extraordinary General Meeting of DBS Land Limited (“DBS Land”) held on 18 October 2000, the Mergerof the Company and DBS Land pursuant to a scheme of arrangement under Section 210 of the Companies Act,Chapter 50, was approved.As a result of the scheme of arrangement, DBS Land became a wholly-owned subsidiaryof the Company.

The financial statements have been prepared under merger accounting principles in relation to the Merger. Undermerger accounting, the results and cash flows of DBS Land and the Company are combined from the beginning ofthe financial period in which the merger occurred. Profit and loss account and balance sheet comparatives arerestated on the combined basis and adjustments are made to achieve consistency of accounting principles.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CapitaLand Limited is a company incorporated in the Republic of Singapore with its registered office at 168 RobinsonRoad, #30-01, Capital Tower, Singapore 068912.The consolidated financial statements of the Company for the year ended31 December 2000 relate to the Company and its subsidiaries (together referred to as the “Group”) and the Group’sinterests in associated companies, joint venture companies and partnerships.

(a) Statement of Compliance

These financial statements have been prepared in accordance with the Singapore Statements of Accounting Standardissued by the Institute of Certified Public Accountants of Singapore and the disclosure requirements of theSingapore Companies Act, Chapter 50.

(b) Basis of Financial Statements Preparation

The financial statements, expressed in Singapore dollars, are prepared on the historical cost basis except that certainproperty, plant and equipment and investment properties are stated at valuation and certain investments in securitiesare stated at market value.

(c) Basis of Consolidation

(i) A subsidiary is a company in which the Group, directly or indirectly, holds more than half of the issuedshare capital, or controls more than half of the voting power, or controls the composition of the board ofdirectors.The consolidated financial statements include the financial statements of the Company and itssubsidiaries made up to the end of the financial year.All significant inter-company transactions areeliminated on consolidation.

M YC K

While every effort has been taken to carry out instruction to customers satisfaction NO RESPONSIBILITY liablilty will be accepted for errors CUSTOMERS ARE THEREFORE URGED TO CHECK THOROUGHLY BEFORE AUTHORISING PRINT RUNS DALIM

1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067

PANTONE3015 CVPANTONE317 CV

PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1

CapitaLand Fin FA-ok 3/26/01 7:12 PM Page 125

126CapitaLand

AR 2000

(ii) For acquisition of subsidiaries which meet the criteria for merger relief under Section 69B of theCompanies Act, Chapter 50 and Singapore Statement of Accounting Standard No. 22 “Accounting forBusiness Combinations”, the assets, liabilities and results are accounted for under the pooling of interestsmethod. In the year of the merger, the prior year comparative figures of the Group are restated as if thecompanies acquired have always been members of the Group.For acquisition of subsidiaries which areaccounted for under the purchase method, fair values are assigned to the assets, principally investmentproperties, land and buildings, owned by the subsidiaries at the date of acquisition as determined by thedirectors based on independent professional valuations.Any excess or deficiency of the purchaseconsideration over the fair values assigned to the net assets acquired is accounted for as goodwill or reserveon consolidation respectively. Goodwill on consolidation is written off against reserves in the year ofacquisition. Goodwill and fair value adjustments to the carrying amounts of assets and liabilities arising onacquisition of subsidiaries are determined and are translated at the exchange rate at the date of acquisition.

(iii) The results of subsidiaries acquired and disposed of during the financial year are included in theconsolidated financial statements from the effective date of acquisition and up to the effective date ofdisposal respectively.

(iv) Assets, liabilities and the results of foreign subsidiaries are translated into Singapore dollars at rates ofexchange closely approximate to those ruling at the balance sheet date.Translation differences arisingtherefrom are taken directly to foreign currency translation reserve.

(v) Exchange differences arising from the translation of inter-company balances which represent an extension ofinterests of the holding corporation in the subsidiaries are taken directly to the foreign currency translationreserve in the consolidated financial statements.

(d) Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation except for certain leasehold land andbuildings which have been reclassified from investment properties at their last market valuation. Depreciation isprovided on the straight-line basis so as to write off the costs over their estimated useful lives as follows:

Hotels leasehold land and buildings – lower of remaining business operation licence tenure or land lease(subject to maximum of 50 years)

Other leasehold land and buildings – period of land lease (subject to maximum of 30 years)Freehold buildings – 20 to 50 yearsPlant, machinery and improvements – 3 to 10 yearsFurniture, fittings and equipment – 2 to 5 yearsMotor vehicles – 5 years

Assets under construction is stated at cost. Expenditure relating to assets under construction (including interestexpenses) are capitalised when incurred. Depreciation will commence when the development is completed.

(e) Investment Properties

Investment properties, which are not held with the intention of sale in the ordinary course of business, are stated atvaluation on an open market basis.Valuation is made by the directors on an annual basis based on internal valuationor independent professional valuation. Independent professional valuation is made at least once every 3 years.

The net surplus or deficit on revaluation is taken to revaluation reserve except when the total of the reserve is notsufficient to cover a deficit, in which case the amount by which the deficit exceeds the amount in the revaluationreserve is charged to the profit and loss account.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



Surplus on revaluation is released to the profit and loss account upon the sale of investment properties.

Investment properties under or awaiting major retrofitting or redevelopment are stated either at cost or at valuationimmediately prior to the commencement of the major retrofitting or redevelopment. Major retrofitting orredevelopment expenditure are stated at cost. Provision for diminution in value is made when, in the opinion of thedirectors, there has been a decline, other than temporary, in the value of the investment properties.

The value of investment properties with remaining lease period of 20 years or less are amortised over theirremaining leasehold lives.

(f) Properties Under Development

Properties under development are stated at cost. Cost of property under development includes interest and otherrelated expenditure which are capitalised as and when activities that are necessary to get the asset ready for itsintended use are in progress. Provision for diminution in value is made when in the opinion of the directors, therehas been a decline, other than temporary, in the value of the properties under development. Upon completion ofthe development, the amount is reclassified to investment properties.This will be stated at valuation on open marketbasis.

(g) Subsidiaries

Investments in subsidiaries in the Company’s balance sheet are stated at cost less any provisions for diminution invalue which are other than temporary as determined by the directors for each subsidiary individually.Any suchprovisions are recognised as an expense in the profit and loss account.

(h) Associated Companies

(i) An associated company is a company in which the Group or the Company has significant influence, but notcontrol or joint control, over its management, including participation in the financial and operating policydecisions.

(ii) In the Company’s balance sheet, investments in associated companies are stated at cost less any provisions fordiminution in value which are other than temporary as determined by the directors for each associatedcompany individually.Any such provisions are recognised as an expense in the profit and loss account.

(iii) Investments in associated companies are accounted for in the consolidated financial statements under theequity method and the following policies are adopted:

• The difference between the cost of acquisition and the Group’s share of the fair value of the netassets of an associated company at the date of acquisition is accounted for as goodwill or reserve onconsolidation. Goodwill arising therefrom is written off against reserves in the year of acquisition.

• The Group’s share of the post-acquisition results of the associated companies is included in theconsolidated profit and loss account using the most recent available audited financial statements.Where the audited financial statements are not available, the Group’s share is based on the unauditedfinancial statements.Any differences between the unaudited financial statements and the auditedfinancial statements obtained subsequently are adjusted for in the following year.

The Group’s share of the post-acquisition retained profits and reserves of the associated companies isincluded in the consolidated balance sheet under interests in associated companies.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


128CapitaLand

AR 2000

(i) Joint Venture Companies

(i) A joint venture is one which is operated under a contractual arrangement between the Group or the Companyand other parties, where the contractual agreement establishes that the Group or the Company and one ormore of the other parties share joint control over the economic activity of the joint venture company.

(ii) In the Company’s balance sheet, investments in joint venture companies are stated at cost less any provisionsfor diminution in value which are other than temporary as determined by the directors for each jointventure company individually.Any such provisions are recognised as an expense in the profit and loss account.

(iii) Investments in joint venture companies are accounted for in the consolidated financial statements under the equity method and the following policy is adopted:

• The Group’s share of the post-acquisition results of the joint venture companies is included in theconsolidated profit and loss account using the most recent available audited financial statements.Where the audited financial statements are not available, the Group’s share is based on the unauditedfinancial statements.Any differences between the unaudited financial statements and the auditedfinancial statements obtained subsequently are adjusted for in the following year.

The Group’s share of the post-acquisition retained profits and reserves of the joint venturecompanies is included in the consolidated balance sheet under interests in joint venture companies.

(j) Partnership

(i) A partnership is one where the Group or the Company has an interest and a share in the profits or loss andthe net assets of the partnership.

(ii) In the Company’s balance sheet, investments in partnerships are stated at cost less any provisions fordiminution in value which are other than temporary as determined by the directors for each partnershipindividually.Any such provisions are recognised as an expense in the profit and loss account.

(iii) Investments in partnerships are accounted for in the consolidated financial statements under the equitymethod and the following policy is adopted:

• The Group’s share of the post-acquisition results of the partnership is included in the consolidatedprofit and loss account using the most recent available audited financial statements.Where the auditedfinancial statements are not available, the Group’s share is based on the unaudited financial statements.Any differences between the unaudited financial statements and the audited financial statementsobtained subsequently are adjusted for in the following year.

The Group’s share of the post-acquisition retained profits and reserves of the partnership is includedin the consolidated balance sheet under interests in partnerships.

(k) Financial Assets

(i) Debt and equity securities held for the long term are stated at cost less any provisions for diminution invalue which are other than temporary as determined by the directors for each debt and equity securitiesindividually.Any such provisions are recognised as an expense in the profit and loss account.

(ii) Debt and equity securities held for the short term are classified as current assets, and are stated at the lowerof cost and market value determined on a portfolio basis. Cost is determined on the weighted average basis.Any increases or decreases in carrying amount are included in the profit and loss account.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



(l) Deferred Expenditure

Deferred expenditure are charged to the profit and loss account as follows:

(i) Pre-operating expenses incurred by subsidiaries are amortised over a period of between 1 to 5 years,commencing from the date of commercial operations of the subsidiaries;

(ii) Reimbursement of renovation expenses to tenants is amortised over the period of the tenancies;

(iii) Front-end fee incurred in respect of issuance of bonds or loan facilities is amortised over the tenure of thenotes or loan facilities; and

(iv) Premium or discount on Floating Rate Notes (“FRNs”) issued is amortised over the term of the notes.

(m) Development Properties for Sale

Development properties for sale are stated at the lower of cost plus, where appropriate, a portion of the attributableprofit, and estimated net realisable value, net of progress billings. Cost of development properties include interestand other related expenditure which are capitalised as and when activities that are necessary to get the assets readyfor their intended use are in progress.

(n) Consumable Stock

Consumable stock comprises principally food and beverages, maintenance supplies and spare parts.They are statedat lower of cost and net realisable value. Cost is determined on a weighted average basis and includes all costs inbringing the stock to its present location and condition. Provision is made where necessary for obsolete, slow-moving and defective stock.

(o) Provision for Cyclical Maintenance

The Group operates a cyclical maintenance scheme for its investment properties, under which a provision is madeannually based on the projected maintenance costs for the next five years on the straight line basis.

Actual maintenance expenditure incurred during the year is charged against the provision.

(p) Revenue Recognition

Provided it is probable that the economic benefits will flow to the Group and the revenue and costs, if applicable,can be measured reliably, revenue is recognised in the profit and loss account as follows:

(i) Rental Income

Rental income is recognised on an accrual basis.

(ii) Development Properties for Sale

The Group recognises income on property development projects using the percentage of completionmethod. Profit is brought into the financial statements only in respect of sales procured and to the extentthat such profit relates to the progress of construction work.The progress of the construction work ismeasured by the proportion of the construction costs incurred to date to the estimated total constructioncosts for each project.

For property development projects in Australia where purchasers are able to rescind the contracts prior tothe date of handover of property, income from sale is recognised in the period in which the purchaser takespossession of the property.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


130CapitaLand

AR 2000

(iii) Technical Consultancy and Management Fee

Technical consultancy and management fee is recognised in the profit and loss account as and when servicesare rendered.

(iv) Dividend Income

Dividend income from subsidiaries is recognised as soon as the dividend is proposed by the subsidiaries.Allother dividend income is recognised on the receipt basis.

(v) Interest Income

Interest income is recognised on an accrual basis.

(vi) Club Memberships

Entrance fees from club memberships are recognised in the profit and loss account when the amounts aredue to be received. 50% of the entrance fees is set aside and included in deferred income. Deferred incomeis amortised over the remaining membership period.

(q) Borrowing Costs

(i) Borrowing costs are expensed in the profit and loss account in the period in which they are incurred,except to the extent that they are capitalised as being directly attributable to the acquisition, construction orproduction of an asset which necessarily takes a substantial period of time to get ready for its intended useor sale.

(ii) The interest on borrowings capitalised is arrived at by reference to the actual rate of interest on borrowingsfor development purposes and, with regard to that part of the development cost financed out of generalfunds, at the average rate of interest.

(r) Deferred Taxation

Deferred taxation is provided using the liability method on all material timing differences arising from the differenttreatments of certain items for accounting and taxation purposes. Deferred tax benefit, however, is not recognised inthe financial statements unless there is a reasonable expectation of realisation.

(s) Foreign Currency Translation

(i) Unhedged Foreign Currency Assets and Liabilities

Monetary assets and liabilities in foreign currencies are translated into reporting currencies at rates ofexchange closely approximate to those ruling at the balance sheet date.Transactions in foreign currencies aretranslated at rates ruling on transaction dates.Translation differences are included in the profit and lossaccount.

(ii) Hedged Foreign Currency Assets and Liabilities

Where translation differences arise on translation of a foreign currency liability accounted for as a hedge ofthe foreign entity, this is included in the foreign currency translation reserve. On disposal of the investmentin the foreign entity, translation differences are taken to the profit and loss account.

(t) Operating Leases

Rental payable under operating leases are accounted for in the profit and loss account on a straight-line basis overthe periods of the respective leases.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



(u) Related Parties

For the purposes of these financial statements, parties are considered to be related to the Group if the Group hasthe ability, directly or indirectly, to control the party or exercise significant influence over the party in makingfinancial and operating decisions, or vice versa, or where the Group and the party are subject to common controlor common significant influence. Related parties may be individuals or other entities.

(v) Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand and bank deposits. For the purpose of the statement of cash flows,cash and cash equivalents are presented net of bank overdrafts which are repayable on demand and which form anintegral part of the Group’s cash management.

(w) Impairment

The carrying amounts of the Group’s assets, other than inventories, are reviewed at each balance sheet to determinewhether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount isestimated. In determining the recoverable amount of property, plant and equipment, expected future cash flowsgenerated by the property, plant and equipment are discounted to their present values.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds itsrecoverable amount.All impairment losses are recognised in the profit and loss account.

An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carryingamount that would have been determined, net of depreciation or amortisation, if no impairment loss had beenrecognised.All reversals of impairment are recognised in the profit and loss account.

(x) Segment Reporting

A segment is a distinguishable component of the Group that is engaged either in providing products or services(business segments), or in providing products or services within a particular economic environment (geographicalsegments), which is subject to risks and rewards that are different from those of other segments.

Segment information is presented in respect of the Group’s business and geographical segments.The primaryformat, business segments, is based on both the Group’s principal activities and the Group’s management andinternal reporting structure.

Inter-segment pricing is determined on an arm’s length basis.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can beallocated on a reasonable basis. Unallocated items mainly comprise income-earning assets and revenue, interest-bearing loans, borrowings and expenses, and corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expectedto be used for more than one period.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


132CapitaLand

AR 2000

3. PROPERTY, PLANT AND EQUIPMENT

Leasehold Other Assets Plant, Furniture,Freehold Freehold Leasehold Hotel Leasehold under Machinery & Motor Fittings &

Land Buildings Land Buildings Buildings Construction Improvements Vehicles Equipment TotalThe Group $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

At Cost/ValuationAt beginning of the

year 137,669 156,614 297,386 696,577 274,315 175,564 308,110 8,451 368,921 2,423,607Translation difference

on consolidation (3,745) (5,900) 7,382 12,164 15,406 (11,851) 3,843 179 3,763 21,241Additions – 731 – 5,885 27,647 59,036 7,642 2,645 16,183 119,769Assets of subsidiaries

acquired/disposed 7,807 113,918 41,675 – 92,648 1,895 32,158 1,309 68,918 360,328Disposals (1,151) (3,662) – (115) (1,169) – (12,367) (1,002) (19,103) (38,569)Written off – – – (150,597) – (18) (854) – (1,417) (152,886)Reclassification/

Transfer fromInvestment Properties – – 47,400 72,901 300,012 (207,858) 5,591 193 81,761 300,000

At end of the year 140,580 261,701 393,843 636,815 708,859 16,768 344,123 11,775 519,026 3,033,490

Accumulated DepreciationAt beginning of the

year – 8,701 19,891 200,393 55,590 – 156,725 5,303 210,524 657,127Translation difference

on consolidation – (174) 268 209 1,005 – 73 111 912 2,404Charge for the year – 1,683 4,651 26,591 13,489 – 22,303 1,477 50,030 120,224Assets of subsidiaries

acquired/disposed – 5,061 4,570 – 24,288 – 19,834 840 50,380 104,973Disposals – (232) – – (51) – (12,145) (577) (18,646) (31,651)Written off – – – (6,796) – – (731) (165) (1,239) (8,931)Reclassification/Transfer

from Investment Properties – – 47 422 (47) – (8,065) 74 7,569 –

At end of the year – 15,039 29,427 220,819 94,274 – 177,994 7,063 299,530 844,146

Depreciation Charge:– 1999 restated – 921 3,770 31,833 8,703 – 17,674 676 37,943 101,520

– 1999 previously reported – 16 2,640 3,724 8,703 – 7,435 443 15,072 38,033

Net Book Value as at:31 December 2000 140,580 246,662 364,416 415,996 614,585 16,768 166,129 4,712 219,496 2,189,344

31 December 1999 restated 137,669 147,913 277,495 496,184 218,725 175,564 151,385 3,148 158,397 1,766,480

31 December 1999previously reported – 904 182,854 87,306 223,586 12 53,573 1,754 55,416 605,405

At 31 December 2000, certain property, plant and equipment amounting to approximately $152 million (1999 restated:$320 million; 1999 previously reported: $141 million) are mortgaged to banks to secure credit facilities for the Group(notes 29 and 30).

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



Included in the above property, plant and equipment is leasehold land and building of $300 million (1999 restated andpreviously reported: Nil) which is stated at valuation.The carrying amount would have been $277.6 million (1999 restatedand previously reported: Nil) had the leasehold land and building been carried at cost less accumulated depreciation.

The net book value of property, plant and equipment held for use under operating leases as at 31 December 2000 was$299.2 million (1999 restated and previously reported: Nil).

Plant, Furniture,Machinery and Fittings and MotorImprovements Equipment Vehicles Total

The Company $’000 $’000 $’000 $’000

At CostAt beginning of the year 4,664 9,281 259 14,204Additions 2,896 656 526 4,078Disposals – (19) (92) (111)Transfers (444) (646) (167) (1,257)Written off (304) (515) – (819)

At end of the year 6,812 8,757 526 16,095

Accumulated DepreciationAt beginning of the year 4,206 8,188 107 12,501Charge for the year 459 608 46 1,113Disposals – (18) (75) (93)Transfers (383) (461) (34) (878)Written off (282) (498) – (780)

At end of the year 4,000 7,819 44 11,863

Depreciation charge for 1999 598 1,121 33 1,752

Net Book ValueAs at 31 December 2000 2,812 938 482 4,232

As at 31 December 1999 458 1,093 152 1,703

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


134CapitaLand

AR 2000

4. INVESTMENT PROPERTIESThe Group

PreviouslyRestated Reported

2000 1999 1999$’000 $’000 $’000

Freehold investment properties, at valuation 1,078,514 1,084,472 17,072Leasehold investment properties, at valuation 7,568,162 6,203,637 3,166,459

Leasehold investment properties, at cost 2,021 2,021 2,021

Less:Amortisation

Balance at beginning of the year 1,400 1,276 1,276Amount amortised (note 38) 124 124 124

Balance at end of the year 1,524 1,400 1,400

497 621 621

8,647,173 7,288,730 3,184,152

Investment properties are stated at directors’ valuation based on independent professional valuations carried out by thefollowing valuers, on the basis of open market valuations.

Valuation Date

CB Richard Ellis Pte Ltd – October/November 2000Jones Lang LaSalle Property Consultants Pte Ltd – October/November 2000Knight Frank Pte Ltd – October/November 2000Brooke International (Hong Kong) – November 2000CB Richard Ellis Limited (China) – November 2000Jones Lang LaSalle/PT Artanila Permai – November 2000Jones Lang Wootton (Malaysia) – November 2000Debenham Tie Leong (Hong Kong) – November 2000CB Hillier Parker (United Kingdom) – November 2000C.Y.Leung (China) – November 2000

At 31 December 2000, certain investment properties amounting to approximately $3,502 million (1999 restated: $2,814 million;1999 previously reported: $2,110 million) are mortgaged to banks to secure credit facilities for the Group (note 30).Allinvestment properties of the Group are held for use under operating leases.

5. PROPERTIES UNDER DEVELOPMENTThe Group


2000 1999 1999$’000 $’000 $’000

At costLeasehold land and other related costs 129,032 528,377 367,991Freehold land and other related costs 201,506 90,396 90,396Development costs 93,031 349,111 339,092Interest, property tax and other costs 47,845 10,564 3,164

471,414 978,448 800,643

During the financial year, interest capitalised as cost of properties under development amounted to $11.1 million (1999restated: $10.6 million; 1999 previously reported: $3.2 million).At 31 December 2000, there are no properties underdevelopment mortgaged to banks to secure credit facilities for the Group (1999 restated and previously reported:$188 million) (note 30).

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



6. INTERESTS IN SUBSIDIARIESThe Company

2000 1999$’000 $’000

(a) Unquoted shares, at costOrdinary shares 2,512,714 1,194,683Redeemable preference shares 1,945,871 2,007,850

4,458,585 3,202,533

Less:Provision for diminution in value of investments

Balance at beginning of the year (144,211) (126,072)Provision made (note 42) – (18,139)

Balance at end of the year (144,211) (144,211)

4,314,374 3,058,322Add:

Amounts owing by subsidiariesLoan accounts

– interest free 280,244 86,141– interest bearing 1,086,672 790,562

1,366,916 876,703

Less:Provision for doubtful debts

Balance at beginning of the year (61,589) (46,710)Provision made (note 42) – (14,879)

Balance at end of the year (61,589) (61,589)

1,305,327 815,114

5,619,701 3,873,436

Amounts owing by/(to) subsidiaries (notes 14 and 28):Current accounts (mainly non-trade)

– interest free 493,946 635,929– interest free (3,431) (529)– interest bearing 686,261 1,329,919– interest bearing (111,844) (891,209)

1,064,932 1,074,110

(b) The balances with subsidiaries are unsecured and have no fixed terms of repayments. However, the management ofthe parties involved do not intend for the loan accounts to be repaid within the next 12 months. In respect ofinterest bearing loan and current accounts, interests are charged at rates ranging from 2.06% to 9.22% (1999 restatedand previously reported: 0.82% to 10.25%) per annum. Included in the interest bearing loans is an amount ofapproximately $131 million (1999 restated and previously reported: $200 million) which is subordinated to therepayment of long-term secured bank loans of certain subsidiaries.

(c) Details of the subsidiaries are set out in note 49.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


136CapitaLand

AR 2000

7. INTERESTS IN ASSOCIATED COMPANIESThe Group The Company


2000 1999 1999 2000 1999$’000 $’000 $’000 $’000 $’000

(a) Unquoted shares, at cost 331,601 359,087 159,949 30,603 30,603Quoted shares, at cost 113,203 216,216 464,149 – –

Add:(Goodwill)/Reserve on acquisition (26,908) (2,171) 10,112 – –

417,896 573,132 634,210 30,603 30,603Share of post-acquisition revaluation

reserve 117,505 107,139 (32,060) – –Share of post-acquisition capital reserve 1,055 2,658 969 – –Share of post-acquisition retained profit (159,154) (55,397) 79,340 – –Share of pre-acquisition reserves due to

subsidiaries acquired (5,108) – (8,243) – –Exchange differences arising on translation

of foreign associated companies (29,459) (28,568) (431) – –Amounts owing by associated companies

Loan accounts– interest bearing 556,492 489,872 80,603 – 7,915– interest free 173,948 208,785 115,746 – 776

730,440 698,657 196,349 – 8,691

1,073,175 1,297,621 870,134 30,603 39,294Less:

Provision for diminution in value of investmentsBalance at beginning of the year (30,513) (29,246) (2,173) – –Provision made (note 42) – (1,267) (444) – –Translation adjustments (122) – – – –Balance at end of the year (30,635) (30,513) (2,617) – –

1,042,540 1,267,108 867,517 30,603 39,294

Market value of quoted shares 93,561 256,763 359,805 – –

Amounts owing by/(to) associated companies (notes 14 and 20):Current accounts (non-trade)

– interest bearing 96,894 112,126 112,126 – –– interest bearing (3,229) (4,905) (4,905) – –– interest free – – – (19) –

93,665 107,221 107,221 (19) –

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123931 DL-MAC10 23.3.01 200#

HO/YCH2



(b) Areca Investment Pte Ltd, a wholly-owned subsidiary of the Company, holds 21.9% equity interest in RafflesHoldings Limited (“RHL”). Interests in RHL were previously reported in 1999 as interests in associated companies.

DBS Land Limited (“DBS Land”) also holds 38.2% equity interest in RHL and has similarly reflected RHL as anassociated company.As a result of the Merger between the Company and DBS Land, the Group has a total effectiveequity interest of 60.1% in RHL and RHL became a subsidiary of the Group.Accordingly, the investments in RHLhave been reclassified as investments in subsidiary.

(c) Amounts owing by associated companies are unsecured and have no fixed terms of repayment. However, themanagement of the parties involved do not intend for the loan accounts to be repaid within the next 12 months. Inrespect of interest bearing loan and current accounts, interests are charged at rates ranging from 1.00% to 9.50%(1999 restated: 0.92% to 10.38%; 1999 previously reported: 2.00% to 10.38%) per annum.

(d) Included in the loan accounts is an amount of approximately $37 million (1999 restated and previously reported:$97 million) which is subordinated to the repayment of external borrowings of certain associated companies.

(e) Details of the associated companies are set out in note 50.

8. INTERESTS IN JOINT VENTURE COMPANIESThe Group The Company


2000 1999 1999 2000 1999$’000 $’000 $’000 $’000 $’000

(a) Capital contribution, at cost 14,360 14,360 14,360 – –Unquoted shares, at cost 210,571 72,452 72,452 21,100 21,100

Less:Goodwill on acquisition (176) – – – –Provision for diminution in value of

investments (note 42) – – – (16,500) (16,500)

224,755 86,812 86,812 4,600 4,600Amounts owing by joint venture companies

Loan accounts– interest bearing 242,300 26,170 26,170 – –– interest free 95,958 70,120 70,120 28,585 28,576

338,258 96,290 96,290 28,585 28,576Share of post-acquisition retained profit (35,815) (21,511) (21,511) – –Share of post-acquisition

revaluation reserve 24,672 – – – –Share of post-acquisition reserves

due to subsidiaries acquired (5,688) – – – –

546,182 161,591 161,591 33,185 33,176

Amounts owing by/(to) joint venture companies (note 20):Current accounts (non-trade)

– interest free 217 10,072 10,072 – 10,072– interest free (22,341) (30,810) (30,810) (23,340) (35,367)

(22,124) (20,738) (20,738) (23,340) (25,295)

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


138CapitaLand

AR 2000

(b) Amounts owing by/(to) joint venture companies are unsecured and have no fixed terms of repayment. However,the management of the parties involved do not intend for the loan accounts to be repaid within the next 12months. In respect of interest bearing loan accounts, interests are charged at 8.50% (1999 restated and previouslyreported: 2.90% to 9.00%) per annum. Included in the above is an amount of approximately $83 million (1999restated and previously reported: $67 million) which is subordinated to the repayment of external borrowings ofcertain joint venture companies.

(c) Details of the joint venture companies are set out in note 51.

(d) The Group’s share of the assets, liabilities and reserves of the joint venture companies are as follows:

The Group Previously

Restated Reported2000 1999 1999

$’000 $’000 $’000

Balance SheetProperty, Plant and Equipment 110 79 79Investment Properties 320,310 – –Properties under Development 267,814 48,760 48,760Deferred Expenditure 107 72 72

Current Assets 209,561 190,482 190,482Less:

Current Liabilities (79,549) (30,415) (30,415)Net Current Assets 130,012 160,067 160,067

718,353 208,978 208,978Less:

Non-Current Liabilities (194,295) (68,125) (68,125)

524,058 140,853 140,853

Representing:Capital Contribution 14,360 14,360 14,360Share Capital 210,571 72,452 72,452Share of Reserves (17,007) (21,511) (21,511)

207,924 65,301 65,301

Amounts owing to/(by) Shareholders– Loan accounts 338,258 96,290 96,290– Current accounts (22,124) (20,738) (20,738)

316,134 75,552 75,552

524,058 140,853 140,853

Profit and Loss AccountRevenue 18,380 22,097 22,097Expenses (12,357) (38,206) (38,206)

Profit/(Loss) before taxation 6,023 (16,109) (16,109)Taxation (900) (157) (157)

Profit/(Loss) after taxation 5,123 (16,266) (16,266)

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



9. INTERESTS IN PARTNERSHIPS



$’000 $’000 $’000

(a) Capital contribution, at cost 56,400 – –Share of post-acquisition retained profit 2 – –

56,402 – –

(b) The Group’s share of the assets, liabilities and reserves of the partnerships are as follows:

Balance SheetProperties under Development 25,098 – –Current Assets 31,464 – –Less: Current Liabilities (160) – –

56,402 – –Representing:

Capital Contribution 56,400 – –Share of Reserves 2 – –

56,402 – –

Profit and Loss AccountRevenue 60 – -Expenses (58) – –

Profit after tax 2 – –

(c) The Group has interests in the following partnerships:

(i) Moorgate Investment Partnership

This is a limited partnership which is registered in United Kingdom and in which the Group has aneffective interest of 50%.The principal activity of the partnership is that of investment holding.

(ii) Yoyogi Partnership

This is an un-incorporated partnership which the Group has a 60% interest in a residential developmentproject in Japan.The principal activity of the partnership is that of property development.

10. OTHER NON-CURRENT ASSETS

The Group The CompanyPreviously

Restated Reported2000 1999 1999 2000 1999

$’000 $’000 $’000 $’000 $’000

Club memberships 3,990 3,993 115 25 25Lease receivable – after 1 year – 620 – – –Lease deposits – 8,250 – – –Loans to staff and directors of subsidiary 4,182 5,693 – – –

8,172 18,556 115 25 25

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


140CapitaLand

AR 2000

11. OTHER FINANCIAL ASSETSThe Group


2000 1999 1999$’000 $’000 $’000

(a) Non-Current Financial AssetsQuoted shares, at cost less write-down (note 42) 230,340 149,048 –Unquoted shares, at cost 65,122 44,514 25,432Quoted bonds, at cost 1,700 – –Unquoted other investments 50,621 48,426 –

347,783 241,988 25,432Less:

Provision for diminution in value of investmentsBalance at beginning of the year (9,831) (3,409) (1,973)Provision made (note 42) (11,512) (6,422) (2,091)Balance at end of the year (21,343) (9,831) (4,064)

326,440 232,157 21,368

Amounts owing by investee companiesLoan accounts– interest bearing 22,787 6,853 6,853– interest free 37,697 90,686 2,811

60,484 97,539 9,664Less:

Provision for doubtful debtsBalance at beginning of the year (7,140) (5,555) (2,658)Provision made (note 42) – (1,585) –Balance at end of the year (7,140) (7,140) (2,658)

53,344 90,399 7,006

379,784 322,556 28,374

Market Value:Quoted shares 216,458 227,488 –

Quoted bonds 1,000 – –

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1





$’000 $’000 $’000

(b) Current Financial AssetsAt cost:Quoted shares 5,170 525 521Quoted investment – 40,394 –Unquoted investment – 18,500 –

Less:Provision for diminution in value of investments

Balance at beginning of the year (219) – –Provision of subsidiaries acquired – (18) (18)Provision made (note 38) (527) (201) (201)Balance at end of the year (746) (219) (219)

4,424 59,200 302

Market Value:Quoted shares 4,424 306 302

Quoted investment – 41,234 –

(c) The Company holds 16.1% equity interest in RC Hotels (Pte) Ltd (“RCHPL”) and had previously reported in 1999its interests in RCHPL as a long-term investment. RCHPL is also held by DBS Land Limited (“DBS Land”) and Raffles Holdings Limited whose equity interests are 18.5% and 49% respectively.

As a result of the Merger between the Company and DBS Land, the Group has a total effective equity interest of 64.1% in RCHPL.Accordingly, the investments in RCHPL have been reclassified as investments in subsidiary and RCHPL accounts have been consolidated.

(d) The amounts owing by investee companies are unsecured and have no fixed terms of repayment. However, the management of the parties involved do not intend for the amounts to be repaid within the next 12 months. In respect of interest bearing loan accounts, interests are charged at rates ranging from 7.44% to 9.60% (1999 restated and previously reported: 6.00% to 7.19%) per annum.

(e) Quoted and unquoted investments include investments in floating rate notes and bonds.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


142CapitaLand

AR 2000

12. DEFERRED EXPENDITURE



$’000 $’000 $’000

At cost:Pre-operating expenses 40,932 30,817 11,000Bond/loan issue expenses 13,818 14,612 392Others 43,513 40,044 –

98,263 85,473 11,392Less:

AmortisationBalance at beginning of the year (39,904) (31,239) (1,187)Amortisation written off 874 109 109Amount amortised (note 38) (17,672) (8,854) (3,857)Adjustments due to acquisition of subsidiaries (3,300) – –Translation adjustments (1,915) 80 80

(61,917) (39,904) (4,855)

36,346 45,569 6,537

13. DEVELOPMENT PROPERTIES FOR SALE



$’000 $’000 $’000

(a) Properties in the course of development, at costLand and other related costs 3,259,282 3,330,166 1,607,706Development costs 1,101,193 915,227 635,782Interest, property tax and others 281,967 276,865 142,099

4,642,442 4,522,258 2,385,587

Less: Provision for foreseeable losses

Balance at beginning of the year (528,912) (725,286) (413,839)Provision of subsidiaries disposed/(acquired) 31,255 (47,569) (47,569)Provision (made)/written back (note 38) (2,528) 90,200 34,600Provision utilised 2,620 130,336 121,796Transfer to completed units 83,386 – –

Balance at end of the year (414,179) (552,319) (305,012)

4,228,263 3,969,939 2,080,575Add:Attributable profit 36,815 97,750 23,190

4,265,078 4,067,689 2,103,765Less: Progress billings (565,555) (894,376) (629,929)

3,699,523 3,173,313 1,473,836

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1





$’000 $’000 $’000

Completed units 644,619 386,406 93,832Less : Provision for foreseeable losses

Balance at beginning of the year (23,407) (33,366) (9,959)Provision made (note 38) (6,955) – –Provision utilised 50,784 9,959 9,959Transfer from properties in the course of development (83,386) – –

Balance at end of the year (62,964) (23,407) –

581,655 362,999 93,832

4,281,178 3,536,312 1,567,668

(b) During the financial year, there were the following interest capitalised as cost of development properties for sale:



$’000 $’000 $’000

Interest paid and payable to banks (note 40) 53,244 49,868 27,268Less : interest received and receivable from– fixed deposit project accounts (1,755) (1,149) (1,149)

51,489 48,719 26,119

(c) At 31 December 2000, certain development properties for sale amounting to approximately $181 million (1999restated: $860 million; 1999 previously reported: $603 million) are mortgaged to banks to secure credit facilities ofthe Group (notes 30 and 31).

14. TRADE AND OTHER RECEIVABLESThe Group The Company


2000 1999 1999 2000 1999Note $’000 $’000 $’000 $’000 $’000

Trade Debtors 15 420,829 371,915 170,298 614 673Accrued Receivables 16 250,220 183,426 177,199 – –Other debtors, deposits and prepayments 17 238,602 194,707 58,448 26,934 19,673Funds held in trust 18 31,140 25,225 25,225 – –Amounts owing by associated companies (net) 7 93,665 107,221 107,221 – –Loans to investee companies 12,371 7,467 – – –Amounts owing by related corporation (net) 28 – – – 1,064,932 1,071,497

1,046,827 889,961 538,391 1,092,480 1,091,843

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


144CapitaLand

AR 2000

15. TRADE DEBTORS



$’000 $’000 $’000 $’000 $’000

Trade debtors 433,401 385,339 175,155 1,039 1,167Less:

Provision for doubtful debtsBalance at beginning of the year (13,424) (6,371) (2,308) (494) (471)Provision of subsidiaries acquired (518) (666) (1,928) – –Provision made (note 38) (2,278) (8,343) (2,196) (84) (121)Bad debts written off against provision 3,636 1,940 1,575 153 98Translation adjustments 12 16 – – –Balance at end of the year (12,572) (13,424) (4,857) (425) (494)

420,829 371,915 170,298 614 673

16. ACCRUED RECEIVABLES

In accordance with the Group’s accounting policy, income is recognised on the progress of the construction work. Uponreceipt of Temporary Occupation Permit, the balance of sales consideration to be billed is included as accrued receivables.

17. OTHER DEBTORS, DEPOSITS AND PREPAYMENTS



$’000 $’000 $’000 $’000 $’000

Prepayments 31,187 28,252 2,028 3 71Deposits 39,983 68,067 19,511 93 627Other debtors 109,538 79,830 34,747 1,269 680

Less:Provision for doubtful debts

Balance at beginning of the year (2,890) (1,930) (1,930) – –Provision of subsidiaries disposed/(acquired) 960 (350) (350) – –Provision made (note 38) (4,949) (610) (610) – –

Balance at end of the year (6,879) (2,890) (2,890) – –102,659 76,940 31,857 1,269 680

Tax recoverable 64,773 21,448 5,052 25,569 18,295

238,602 194,707 58,448 26,934 19,673

Other debtors comprise principally amount receivable in connection with the sale of certain units of an investmentproperty of the Group, staff loans, interest receivable and other recoverables.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



18. FUNDS HELD IN TRUST

Funds held in trust comprise fixed deposits and bank balances with banks and finance companies held on behalf of theCommissioner of Land, Public Utilities Board, the Housing and Development Board and related corporations:



$’000 $’000 $’000

Fixed deposits 12,069 17,688 17,688Cash at banks 19,071 7,537 7,537

31,140 25,225 25,225

Included in funds held in trust is an amount of $885,000 (1999 restated and previously reported: $915,690) held on behalfof related corporations.

19. CASH AND CASH EQUIVALENTS



$’000 $’000 $’000 $’000 $’000

Amounts held under “Project Account Rules – 1997 Ed” withdrawals from which are restricted to payments for expenditure incurred on development projects 187,962 218,723 216,823 – –

Fixed deposits 475,483 645,362 191,368 328,835 146,208Cash at bank and in hand 215,853 422,838 67,010 988 6,881

879,298 1,286,923 475,201 329,823 153,089Bank overdrafts (unsecured) (11,182) (13,447) (3,486) – –

Cash and cash equivalents in the statement of cash flows 868,116 1,273,476 471,715 329,823 153,089

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


146CapitaLand

AR 2000

20. TRADE AND OTHER PAYABLES



Note $’000 $’000 $’000 $’000 $’000

Trade Creditors 253,682 240,664 106,579 1,541 3,134Accruals 21 551,938 596,751 283,415 45,648 36,670Other creditors 22 196,289 93,943 29,004 823 7,986Rental and other deposits 23 140,709 72,655 55,491 1,304 1,670Funds held in trust 18 31,140 25,225 25,225 – –Provision for cyclical maintenance 24 4,850 27,973 27,973 – –Contract work-in-progress 25 7,350 9,880 – – –Accrued redemption premium 26 41,217 – – 41,217 –Deferred income 32 – 10,071 – – –Amounts owing to associated companies (net) 7 – – – 19 –Amounts owing to joint venture

companies (net) 8 22,124 20,738 20,738 23,340 25,295Amounts owing to related corporations (net) 28 34,925 47,835 47,187 – –

1,284,224 1,145,735 595,612 113,892 74,755

21. ACCRUALS

Accruals include accrued development expenditure, accrued property, plant and equipment purchase and accrued interestpayable.

22. OTHER CREDITORS

Other creditors relate principally to retention sums and amounts payable in connection with capital expenditure incurred.

23. RENTAL AND OTHER DEPOSITS

Included in rental and other deposits are the following:



$’000 $’000 $’000

Rental and other deposits received from related corporations 1,557 1,773 1,773

24. PROVISION FOR CYCLICAL MAINTENANCE



$’000 $’000 $’000

Balance at beginning of the year 27,973 39,271 39,271Write-back (note 38) (21,943) (8,526) (8,526)Amount utilised (1,180) (2,772) (2,772)

Balance at end of the year 4,850 27,973 27,973

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



25. CONTRACT WORK-IN-PROGRESS



$’000 $’000 $’000

Cost incurred and provided for 121 216,788 –Less:Provision for anticipated costs/losses 6,446 7,640 –Costs recognised – 190,176 –

(6,325) 18,972 –Less: Progress payments received and receivable 1,025 28,852 –

Progress billings in excess of work-in-progress (7,350) (9,880) –

26. 2% REDEEMABLE CONVERTIBLE CUMULATIVE PREFERENCE SHARES (“RCCPS”)



Note $’000 $’000 $’000 $’000 $’000

Due within 1 year2% redeemable convertible cumulative

preference shares 301,530 – – 301,530 –Accrued redemption premium 20 41,217 – – 41,217 –

342,747 – – 342,747 –

Due after 1 year2% redeemable convertible cumulative

preference shares – 287,380 – – –Accrued redemption premium – 29,509 – – –

27 – 316,889 – – –

Pursuant to the Merger which was effective on 24 November 2000, 172,500 2% RCCPS of US$1 each were issued by the Company at a premium of US$999 per share to existing RCCPS holders of DBS Land Limited in exchange for their2% RCCPS.

Unless previously redeemed, the 2% RCCPS are convertible into ordinary shares at $5.43 (1999: $5.43) per ordinary sharesubject to adjustments under certain circumstances.The 2% RCCPS are convertible by 31 December 2001 and anyoutstanding RCCPS must be redeemed on that date at a yield to redemption of 5% per annum.As the conversion price is currently much higher than the prevailing market price and is expected to be so within the next 12 months, the saidRCCPS together with the accrued redemption premium have been reclassified as short-term liabilities.

ers satisfaction

ORE M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


148CapitaLand

AR 2000

27. OTHER NON-CURRENT LIABILITIES



Note $’000 $’000 $’000 $’000 $’000

Amounts owing to related companies 28 33,065 46,791 46,791 26,397 45,820Redeemable convertible cumulative

preference shares 26 – 316,889 – – –Customer deposits and other payables 17,244 25,079 – – –

50,309 388,759 46,791 26,397 45,820

28. AMOUNTS OWING BY/(TO) RELATED CORPORATIONS



$’000 $’000 $’000 $’000 $’000

Current (notes 14 and 20)Subsidiaries– Current accounts (non-trade) (note 6) – – – 1,064,932 1,074,110

Immediate holding corporation– Current accounts (non-trade, interest free) – (2,613) (2,613) – (2,613)

Other related corporations– Current accounts (trade, interest free) 2,205 – – – –– Current accounts (trade, interest free) (37,130) (45,222) (44,574) – –

(34,925) (47,835) (47,187) 1,064,932 1,071,497

Non-Current (note 27)Immediate holding corporation – (971) (971) – –

Other related corporations– Loan accounts

– interest bearing (14,132) (26,887) (26,887) (7,464) (26,887)– interest free (18,933) (18,933) (18,933) (18,933) (18,933)

(33,065) (46,791) (46,791) (26,397) (45,820)

All balances with related corporations are unsecured and have no fixed terms of repayment. However, the management ofthe parties involved do not intend for the loan balances to be repaid within the next 12 months. In respect of interestbearing loan and current accounts, interests are charged at rates ranging from 2.06% to 9.22% (1999 restated and previouslyreported: 0.82% to 8.44%) per annum.

The immediate holding corporation is Singapore Technologies Pte Ltd and the ultimate holding corporation is TemasekHoldings (Private) Limited. Both corporations are incorporated in the Republic of Singapore.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



29. SHORT TERM LOANS



$’000 $’000 $’000 $’000 $’000

Short term loans– secured 67,107 77,100 – – –– unsecured 1,714,892 798,301 400,006 329,868 396,131

1,781,999 875,401 400,006 329,868 396,131

Included in the secured short term loan is amount of US$20 million equivalent to $35 million which is secured by a bankguarantee issued by another bank.The loan bears interest at 11.5% per annum and is repayable on 22 February 2001.Theremaining secured short term loans are secured by mortgages on the borrowing subsidiaries’ land and buildings.

30. TERM LOANS



$’000 $’000 $’000 $’000 $’000

Term loans– secured 1,827,478 1,584,686 1,105,837 – –– unsecured 1,387,228 1,307,353 513,475 365,762 255,000

3,214,706 2,892,039 1,619,312 365,762 255,000

Repayable:– within 1 year 810,208 890,737 420,770 105,000 –– after 1 year 2,404,498 2,001,302 1,198,542 260,762 255,000

3,214,706 2,892,039 1,619,312 365,762 255,000

(a) Secured Term LoansThese comprise loans repayable:



$’000 $’000 $’000 $’000 $’000

Within 1 year 510,893 345,293 246,865 – –From 1 to 2 years 489,352 233,179 202,416 – –From 2 to 5 years 807,866 937,477 656,556 – –After 5 years 19,367 68,737 – – –After 1 year 1,316,585 1,239,393 858,972 – –

1,827,478 1,584,686 1,105,837 – –

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


150CapitaLand

AR 2000

The secured term loans bear interests ranging from 2.80% to 10.50% (1999 restated and previously reported: 1.77%to 10.50%) per annum.

The above term loans are generally secured by:

– mortgages on the borrowing subsidiaries’ land and buildings, investment properties, properties under development or development properties for sale; and

– assignments of all rights and benefits with respect to the properties.

(b) Unsecured Term LoansThese comprise loans repayable:



$’000 $’000 $’000 $’000 $’000

Within 1 year 299,315 545,444 173,905 105,000 –From 1 to 2 years 505,556 155,945 105,945 179,970 105,000From 2 to 5 years 582,357 605,964 233,625 80,792 150,000After 1 year 1,087,913 761,909 339,570 260,762 255,000

1,387,228 1,307,353 513,475 365,762 255,000

The unsecured term loans bear interests ranging from 0.90% to 9.30% (1999 restated and previously reported:2.50% to 8.50%) per annum.

31. DEBT SECURITIES

Debt securities comprise fixed rate notes, floating rate notes, hybrid rate notes and bonds issued by the Group and theCompany.



$’000 $’000 $’000 $’000 $’000

Notes issued as at end of the year 4,449,423 4,356,705 1,908,040 1,703,810 1,461,540Less:

Notes purchased (but not cancelled) (699,000) (738,078) (368,750) (680,250) (366,750)

Notes outstanding as at end of the year 3,750,423 3,618,627 1,539,290 1,023,560 1,094,790

Repayable:Within 1 year 1,467,613 1,217,417 787,750 498,250 524,250From 1 to 2 years 694,310 531,170 134,500 283,810 105,500From 2 to 5 years 580,500 872,040 512,040 126,500 360,040After 5 years 1,008,000 998,000 105,000 115,000 105,000After 1 year 2,282,810 2,401,210 751,540 525,310 570,540

3,750,423 3,618,627 1,539,290 1,023,560 1,094,790

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1



(a) Secured Debt SecuritiesIncluded in the above debt securities are $1,390.75 million (1999 restated: $1,050.75 million; 1999 previously reported:$255.75 million) debt securities issued by subsidiaries which are secured.The details of the secured debt securities as at31 December 2000 are as follows:

(i) $100 million fixed rate bonds bearing interest at 4.75% per annum and are secured by a fixed and floatingcharge on the assets of a subsidiary and assignment of sales proceeds from the subsidiary’s developmentproperty (The Clearwater).The bonds which were issued in 1999 are repayable in full on 6 August 2002;

(ii) $125 million fixed rate bonds bearing interest at 6.00% per annum and are secured by a fixed charge on theinvestment property (Robinson Point) of a subsidiary.The bonds which were issued in 1999 are due tomature on 21 July 2009 or at an earlier date in accordance with the terms of the “Call” and “Put” OptionAgreements;

(iii) $120 million fixed rate bonds bearing interest at 6.00% per annum and are secured by a fixed charge on theinvestment property (268 Orchard Road) of a subsidiary.The bonds which were issued in 1999 are due tomature on 31 August 2009 or at an earlier date in accordance with the terms of the “Call” and “Put”Option Agreements;

(iv) $550 million fixed rate bonds bearing interest at 6.00% per annum and are secured by a fixed charge on theinvestment property (Six Battery Road) of a subsidiary.The bonds which were issued in 1999 are due tomature on 15 December 2009 or at an earlier date in accordance with the terms of the “Call” OptionAgreement;

(v) $208 million medium term notes (“MTNs”) which comprise 6 series issued at variousfixed/floating/variable rates, as part of a $350 million secured MTN programme which has a 3 to 5 yearsduration from 12 July 2000.The MTNs bear interests ranging from 3.0625% to 5.5625% per annum and aresecured by a collateral mortgage on the investment property (Liang Court Complex) of a subsidiary. Unlesspreviously redeemed or purchased and cancelled, the MTNs are redeemable at their principal amounts ontheir respective maturity dates from July 2003 to November 2005;

(vi) $222.75 million MTNs which comprise 19 series issued at various fixed/floating/variable rates, as part of a$500 million secured MTN programme which has a 10-year duration from 8 December 1999.The MTNsbear interests ranging from 2.80% to 4.875% (1999: 3.3125% to 4.875%) per annum and are secured by twoinvestment properties (Funan The IT Mall and Orchard Point) held by subsidiaries. Unless previouslyredeemed or purchased and cancelled, the MTNs are redeemable at their principal amounts on theirrespective maturity dates from January 2001 to December 2002; and

(vii) $65 million of MTNs which comprise 2 series issued by a subsidiary in 2000 at various fixed rates, as part ofa $168 million secured MTN programme which has a 10-year duration from 30 October 2000.The MTNsbear interests ranging from 3.0625% to 3.125% per annum and are secured by a legal assignment of allissued ordinary shares of the subsidiary and a guarantee of Somerset Holdings Limited. Unless previouslyredeemed or purchased and cancelled, the MTNs are redeemable at their principal amounts on theirrespective maturity dates from February to March 2001.

(b) Unsecured Debt SecuritiesDetails of the remaining $2,359.67 million (1999 restated: $2,567.88 million; 1999 previously reported: $1,283.54million) unsecured debt securities are as follows:

(i) The holders of some of the above debt securities have the option to have all or any of their notes purchasedby the Group at their principal amount on interest payment dates. In determining the repayment dates of thedebt securities, it is assumed that the option will be exercised. Unless previously redeemed or purchased andcancelled, the debt securities are redeemable at the principal amounts on their respective maturity dates.

(ii) The debt securities bear interest ranging from 1.09% to 8.50% (1999 restated and previously reported:1.25% to 8.00%) per annum.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


152CapitaLand

AR 2000

32. DEFERRED INCOME

Deferred income represents mainly premium on bonds issued and 50% of entrance fees from club memberships which hasbeen set aside to match any possible excess operating costs over operating revenues in the remaining membership period.

33. SHARE CAPITAL

The Group and The Company

2000 1999$’000 $’000

Authorised:4,000,000,000 (1999: 2,000,000,000) ordinary shares of $1 each 4,000,000 2,000,000

172,500 (1999: Nil) 2% redeemable convertible cumulative preference shares of US$1 each 255 –

Issued and fully paid:At beginning of the year, 1,095,254,589 (1999: 1,028,504,633) ordinary shares of $1 each 1,095,255 1,028,505

Issue of 19,569,230 (1999: 66,749,956) ordinary shares of $1 each at a premium of $2.25 (1999: $2.15) per share 19,569 66,750

Issue of 86,494,952 bonus ordinary shares of $1 each at par 86,495 –

Issue of 1,316,031,127 ordinary shares of $1 each at par pursuant to the Merger 1,316,031 –

At end of the year, 2,517,349,898 (1999: 1,095,254,589) ordinary shares of $1 each 2,517,350 1,095,255

On 30 June 2000, 19,569,230 ordinary shares of $1 each were issued at a premium of $2.25 per share fully paid for cash, tothe immediately holding corporation, Singapore Technologies Pte Ltd.

On 31 August 2000, an amount of $86,494,952 standing to the credit of the share premium account was applied in payingup in full at par for 86,494,952 ordinary shares of $1 each which were allotted and distributed as fully paid to existingshareholders in the proportion of approximately 7.76 bonus shares for every 100 existing ordinary shares then held.

By an ordinary resolution passed at an extraordinary general meeting held on 16 November 2000, the Company’sauthorised share capital was increased to $4,000,000,000 by the creation of an additional 2,000,000,000 ordinary shares of$1 each, ranking pari passu with the existing shares of the Company.An additional class of 172,500 2% RedeemableConvertible Cumulative Preference Shares due 2001 (“RCCPS”) of US$1 each was also created.

Pursuant to the Merger which was effective on 24 November 2000, 1,316,031,127 ordinary shares of $1 each issued at parwere issued to existing ordinary shareholders of DBS Land Limited in exchange for their ordinary shares.

All the ordinary shares issued rank pari passu with the then existing ordinary shares of the Company.

At the end of the financial year, there were options relating to the Company’s Share Option Plan for unissued ordinaryshares of the Company of 24,448,985 (1999: Nil), details of which are given in the Directors’ Report under the section“Share Options”.

M YC K


1 2 3 4 5 6 7 8 9 10 OK SL MOD:SL0067


PANTONE3015 CV

SL123918 DL-MAC10 21.3.01 200#

HO1


Documents

NOTES TO THE FINANCIAL STATEMENTSCompanies Act,Chapter 50 and Singapore Statement of Accounting Standard No.22 “Accounting for Business Combinations”,the assets,liabilities and