freight links express holdings limited

Freight Links Express Holdings Limited51 Penjuru Road, Freight Links Express Logisticentre, Singapore 609143

Tel: 262 6988 Fax: 262 6928URL: www.freightlinks.net

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CORPORATE HEA

Freight Links Express H51 Penjuru Road #04-0Singapore 609143Tel : (65) 262 6988 (30URL: www.freightlinks

SINGAPORE OFFICES

INTERNATIONAL FREIGHT FORWARDING

Freight Links Express Pte Ltd51 Penjuru Road #03-00Freight Links Express LogisticentreSingapore 609143Tel : (65) 267 5511 (20 lines)Fax : (65) 267 5577E-mail : [email protected] Free Line : (65) 566 2866

Crystal Freight Services Pte Ltd51 Penjuru Road Mezzanine FloorFreight Links Express LogisticentreSingapore 609143Tel : (65) 267 5622Fax : (65) 267 5623E-mail : [email protected]

WAREHOUSING & DISTRIBUTION

Freight Links Express Logisticentre Pte Ltd51 Penjuru Road #04-00Freight Links Express LogisticentreSingapore 609143Tel : (65) 262 6988Fax : (65) 262 6928

Freight Links Express DistricentrePte Ltd9 Changi South Street 3 #01-00Freight Links Express DistricentreSingapore 486361Tel : (65) 546 7118Fax : (65) 546 7108

Freight Links E-logistics TechnoParkPte Ltd51 Penjuru Road #04-00Freight Links Express LogisticentreSingapore 609143Tel : (65) 262 6988Fax : (65) 262 6928

Freight Links Express DistriparkPte Ltd62 Toh Guan Road #04-00Freight Links Express DistriparkSingapore 608831Tel : (65) 566 9988 (10 lines)Fax : (65) 566 8813E-mail : [email protected]

Crystal Freight Services Pte Ltd146 Gul CircleSingapore 629604Tel : (65) 863 4438Fax : (65) 863 4437

Freight Links Express LoPte Ltd33 - 35 Penjuru LaneSingapore 609200Tel : (65) 267 2688Fax : (65) 266 2833

WAREHOUSING & CONS

Thru-Consolidation Serv62 Toh Guan Road #04-00Freight Links Express DistriSingapore 608831Tel : (65) 566 9988 (10 linFax : (65) 566 8813

EXPOSITION DESIGN AN

Freight Links Express Ex9 Changi South Street 3 #Freight Links Express DistricSingapore 486361Tel : (65) 546 7122Fax : (65) 546 7138E-mail : [email protected]

MOVING SERVICES

United Moving Services 62 Toh Guan Road #04-00Freight Links Express DistriSingapore 608831Tel : (65) 665 3722Fax : (65) 665 3022E-mail: [email protected]

DOCUMENTS MANAGEM

Freight Links Express ArPte Ltd51 Penjuru Road #04-00Freight Links Express LogistSingapore 609143Tel : (65) 665 3773Fax : (65) 665 7557


BOARD OF DIRECTORS

ExecutiveDavid Lim Teck Hiang (Chairman)Henry Chua Tiong Hock (Executive Director)

Non-ExecutiveLee Ying CheunCapt. Sze Shaw Pao

AUDIT COMMITTEELee Ying Cheun (Chairman)David Lim Teck HiangCapt. Sze Shaw Pao

CORPORATE SECRETARYNancy Quek

REGISTERED OFFICE51 Penjuru Road #04-00Freight Links Express LogisticentreSingapore 609143Tel: 262 6988 Fax: 262 6928

SHARE REGISTRARSBarbinder & Co Pte Ltd8 Cross Street #11-00PWC BuildingSingapore 048424Tel: 236 3333 Fax: 236 4399

AUDITORSPricewaterhouseCoopersCertified Public Accountants8 Cross Street #17-00PWC BuildingSingapore 048424Tel: 236 3388 Fax: 236 3300

PRINCIPAL BANKERSOverseas Union Bank LimitedKeppel TatLee Bank LimitedOversea-Chinese Banking Corporation Limited

CORPORATE INFOR


C O

Chairman’s

Board of D

Review

Internation

Warehousi

Other Log


4

C H A I R M A N ’ S S TA

2

The Freight Li

Group of compa

a strategy of c

in the past yea

was on its core

of internation

forwarding, w

distr ibution an

services.

For the financial y

April 2001, Gro

amounted to $

compared to $90.3

previous financial

efforts to main

share, margins


capitalized due to delay in

completion of construction

($1.1 million) and writing off

goodwill relating to a loss-

making subsidiary ($0.8 million).

Including extraordinary items of

$1.6 million from provisions

made for diminution in value of

investments, net losses

amounted to $24.2 million

compared to $38.6 million in the

previous financial year.

During the year, the Group

continued its strategy of

divesting its non-core businesses

and under-performing assets. At

the same time, m

had been given to

Group’s bank borr

had declined subs

$146.6 million as at

to current level o

million. This is a

bank borrowin

million or 46.1% fo

The Group is ca

current market s

hopes to emerge

more competitive

years. In the lon

Group is intent o

further its tot

The Group is cautious in the curre

situation and hopes to emerge lea

competitive in the coming years.

the Group is intent on developing

logistics capability as a one-stop so


6

B O A R D O F D I R E C

He

4


R E V I E W O F O P E R

INTERNATIONAL FREIGHTFORWARDING

The Group’s international freight forwarding ac

affected by a less than robust global economy. As freig

to international destinations declined, competition

intense. As a result, price-cutting to maintain market

prevalent. Under such market conditions, the need to

efficient and cost effective solutions to customers becom

critical.

To achieve this, the Group seeks to enhance its compe

by continuing to upgrade its IT capability that will allow

integration of its various logistics services. The ultim

provide customers with online real-time control of

activities.

The Group has an expanding global network of agent

wide spread of destinations to cater to customers’ nee

with long established relationships with major shipp

Group is able to offer customers the best routes a

freight rates.

The Group

competiti

upgrade i

allow for

various lo


8


To meet the in

transportation nee

value-adding logis

technical infrastru

supply chain techn

The Group’s mod

island, support the

of locations acco

conventional war

complemented by

WAREHOUAND DIST

6


the Group provides a range of services tailored

customers’ needs.

Whilst this segment has suffered from prolonged wea

excess capacities resulting in soft rental/service rates,

hopeful that it will be in a good position to take adv

economic recovery in the future.

From a convention

supported by mod

by ASRS (Automat

System), the Grou

tailored to meet t


10


Apart from its core

warehousing and

logistics services su

and archive manag

These services com

provide customers

The Group is cons

have synergy with

facilities and deve

efficient cost-effec

OTHERLOGISTIC

8


Report o

Corporat

Stateme

Auditors

Income S

Balance

Consolid

Stateme

Consolid

Notes to

Shareho

Notice o

Proxy


10

FREIGHT LINKS EXPRESS HOLDINGS LIMITED

REPORT OF THE DIRECTORS

The directors present their report to the members together with the auditthe financial year ended 30 April 2001.

Directors

The directors of the Company at the date of this report are:

David Lim Teck Hiang ChairmanHenry Chua Tiong HockLee Ying CheunCapt. Sze Shaw Pao (appointed on 30 May 2000)

Principal activities

The principal activities of the Company are those of investment holding, pon corporate and strategy matters. The principal activities of its subsidiahave been no significant changes in the nature of these activities during

Results for the financial year

The consolidated net loss attributable to the members of the Company fnet loss for the financial year of $32,596,000.

Material transfers to or from reserves and provisions

Material transfers to or from reserves and provisions are set out in the f

Acquisition and disposal of subsidiaries

On 4 July 2000, a subsidiary of the Company, Singapore Enterprises Prof Concept Hope Sdn. Bhd., a company incorporated in Malaysia, for a cas

The Group has not consolidated the financial statements of Concept Hoinvestment is held exclusively with a view to its subsequent disposal in

There were no disposals of interests in subsidiaries during the financial


Issue of shares and debentures

During the financial year, the Company increased its issued ordinaof 14,777 new ordinary shares of $0.20 each by way of subscriptioat the exercise price of $0.20 per share.

The newly issued shares rank pari passu in all respects with the p

The Company and its subsidiaries have not issued any debenture

Arrangements to enable directors to acquire share

Except for a director’s entitlement under the Executives’ ShareExtraordinary General Meeting held on 18 April 1996, neither duriany arrangement whose object was to enable the directors of the or debentures of, the Company or any other body corporate.

Directors’ interests in shares or debentures

The directors holding office at 30 April 2001 and their interests in thCompany and related corporations as recorded in the register of

A30.4

Freight Links Express Holdings Limited

(Ordinary shares of S$0.20 each)

David Lim Teck Hiang 99,14Henry Chua Tiong Hock 3,10

Lee Ying Cheun

Capt. Sze Shaw Pao (appointed on 30 May 2000)


12

Directors’ interests in shares or debentures (continued

Holdin

At30.4.2001

(Interest in Warrants 2001 tosubscribe for ordinary shares)

David Lim Teck Hiang -Henry Chua Tiong Hock -Lee Ying Cheun -

Capt. Sze Shaw Pao (appointed on 30 May 2000) -

(Interest in Warrants 2002 tosubscribe for ordinary shares)

David Lim Teck Hiang 6,204,830

Henry Chua Tiong Hock -

Lee Ying Cheun -Capt. Sze Shaw Pao (appointed on 30 May 2000) -

(Interest in options to subscribefor ordinary shares underExecutives’ Share Option Scheme)

David Lim Teck Hiang -

Henry Chua Tiong Hock -Lee Ying Cheun -


Freight Links Express Holdings (Australia) Limited(Ordinary shares of A$0.50 each)

David Lim Teck Hiang 4,000Henry Chua Tiong Hock -

Lee Ying Cheun -


As at 30 April 2001, Mr David Lim Teck Hiang owns 18.26% of the issueinterest under Section 7 of the Singapore Companies Act (Cap. 50), he iscapital of the Company’s wholly-owned subsidiaries and in the shares h




Directors’ interests in shares or debentures (contin

Freight Links M&S (H.K) Limited- Ordinary shares of HK$1 each

Freight Links Express Holdings (Australia) Limited- Ordinary shares of A$0.50 each

United Moving Services Pte Ltd- Ordinary shares of S$1 each

Freight Links Express ExpoLogistics Pte Ltd- Ordinary shares of S$1 each

Freightlinks.com Pte Ltd- Ordinary shares of S$1 each

The directors’ interests in the share capital and options to subscribat 21 May 2001 were the same as those at 30 April 2001.

Dividends

No dividends were paid, declared or proposed since the end of th

Bad and doubtful debts

Before the financial statements of the Company were made out, trelation to the writing off of bad debts and providing for doubtful debad debts of the Company have been written off and that adequa

At the date of this report, the directors are not aware of any circumor provided for doubtful debts in the Group inadequate to any sub

Current assets

Before the financial statements of the Company were made out,assets which were unlikely to realise their book values in the ordinrealisable values or that adequate provisions have been made for

At the date of this report, the directors are not aware of any circumthe values attributed to current assets in the consolidated financia


14

Charges on assets and contingent liabilities

At the date of this report, no charges have arisen since the end of the finin the Group which secure the liability of any other person, nor have any of the Company or any corporation in the Group.

Ability to meet obligations

No contingent or other liability of the Company or any corporation in enforceable within the period of twelve months after the end of the finasubstantially affect the ability of the Company and the Group to meet th

Other circumstances affecting the financial statements

At the date of this report, the directors are not aware of any circumstancfinancial statements which would render any amount stated in the financstatements misleading.

Unusual items

In the opinion of the directors, the results of the operations of the Compasubstantially affected by any item, transaction or event of a material andmore fully disclosed in note 10 of the notes to the financial statements.

Unusual items after the financial year

In the opinion of the directors, no item, transaction or event of a materiaend of the financial year and the date of this report which would affect suof 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 in the consolidated financial statements and in this report) by reason of athe director or with a firm of which he is a member or with a company in

Share options and warrants to subscribe for ordinary s

(a) Freight Links Express Holdings Limited Executives’ Share Op

The Share Option Scheme was approved by the members of tApril 1996.

During the financial year, there were no options granted by thCompany.




Share options and warrants to subscribe for ordina

(b) Warrants 2001 and Warrants 2002

The Warrants 2001 were constituted under a Deed PollMay 1999. Particulars of the Warrants 2001 were set ouand 30 April 1999.

The Warrants 2002 were constituted under a Deed Poll in the Directors’ Report for the financial year ended 30 A

The holders of the Warrants 2001 and Warrants 2002 hissue of any other company in the Group.

(c) During the financial year, 14,777 ordinary shares of $0.by the holders of Executives’ Share Option Scheme “19

(d) Unissued ordinary shares of the Company under option

Optionsgrantedduring Op

At 1.5.2000 the year exe

Executives’Share Options

1996 Options 1,867,428 -

1997 Options 1,705,904 -

1998 Options 1,041,860 - 14,77

1999 Options 3,125,311 -

7,740,503 - 14,77

Warrants

Warrants 2001 5,621,118 -

Warrants 2002 37,720,893 -

43,342,011 -


16

(e) Pursuant to Clause 947 (Practice Note No. 9H) of the Listing Mdisclosed elsewhere in the report, it is reported that during th

(i) The committee administering the Executives’ Share Opt

* Henry Chua Tiong Hock* Lee Ying Cheun* Capt. Sze Shaw Pao

(ii) No options have been granted to directors of the CompanOption Scheme.

(iii) No options have been granted to controlling shareholdemore of the total options available under the scheme.

(iv) No options have been granted at a discount to the mark

Audit Committee

The Audit Committee carried out its functions in accordance with Sectifinancial statements of the Company and of the Group for the financial yof the functions performed by the Audit Committee are further describe

The Audit Committee has nominated PricewaterhouseCoopers for re-aAnnual General Meeting.

Auditors

The auditors, PricewaterhouseCoopers, have expressed their willingnes

On behalf of the directors

DAVID LIM TECK HIANGDirector

Singapore28 August 2001




CORPORA

Freight Links Express Holdings Limited is committed to raising theof its shareholders. The Board of Directors fully supports the Besthe Singapore Exchange Securities Trading Limited and, where amechanism to ensure that effective corporate governance is prac

Board of Directors

The Board of Directors consists of members who have extensivbusiness community. The Board comprises four members, two ofin a financial year.

The Board supervises the management of the business and affairapproves the Group’s strategic plans, key operational initiatives, mthe Group’s business and ensures the implementation of appperformance of the Group and evaluates the performance and comcarried out either directly or through Board committees like the Au

Audit Committee

The Audit Committee of the Board of Directors comprises three The members of the Audit Committee during the financial year en

Lee Ying Cheun - ChairmanDavid Lim Teck HiangCapt. Sze Shaw Pao (appointed on 6 June 2000)

The Audit Committee meets periodically with management and th

(a) the audit plans of the auditors of the Company asystems of internal accounting controls;

(b) the Company’s financial and operating results

(c) the financial statements of the Company and submission to the Board of Directors and the

The Audit Committee has recommended to the Board of Directorsauditors of the Company at the forthcoming Annual General Meet


DAVID LIM TECK HIANGChairman of the Board



18

In the opinion of the directors, the financial statements set out onfair view of the state of affairs of the Company and of the Group at 30 in equity, of the Company and of the Group and the cash flows of the Grstatement there are reasonable grounds to believe that the Company w


DAVID LIM TECK HIANGDirector



STATEMENT BY DIRECTORS


AUDITORS’ REPORT TO THE MEMBERS OF FREIG

We have audited the financial statements of Freight Links ExpressGroup for the financial year ended 30 April 2001 set out on pagthe Company’s directors. Our responsibility is to express an opin

We conducted our audit in accordance with Singapore Standardsour audit to obtain reasonable assurance whether the financial sexamining, on a test basis, evidence supporting the amounts anassessing the accounting principles used and significant estimatestatement presentation. We believe that our audit provides a reas

In our opinion,

(a) the accompanying financial statements of the Compaproperly drawn up in accordance with the provisions of tAccounting Standard and so as to give a true and fair v

(i) the state of affairs of the Company and of the Grouand of the Group, and the cash flows of the Group

(ii) the other matters required by Section 201 of the Ain the consolidated financial statements of the Gro

(b) the accounting and other records, and the registers subsidiaries incorporated in Singapore of which we aprovisions of the Act.

We have considered the financial statements and auditors’ reportsfinancial statements included in the consolidated financial statemefinancial statements.

We are satisfied that the financial statements of the subsidiariesCompany are in form and content appropriate and proper for the puand we have received satisfactory information and explanations a

Except for the qualification as disclosed in note 19(e) to the financthe subsidiaries were not subject to any qualification and in respcomment made under Section 207(3) of the Act.

Without qualifying our opinion, we draw attention to note 21(j) to investment in warehouse properties and the basis on which these

PricewaterhouseCoopersCertified Public AccountantsPartner - Mr Lim Seow ChiangSingapore,28 August 2001


20

N

Turnover

Other operating income

Freight and related costs

Building and related costs

Depreciation and amortisation

Staff costs

Provision for diminution in value of short term investments

Other operating expenses

Operating (loss)/profit

Finance income

Finance costs

Loss before tax

Tax

Loss from ordinary activities

Minority interest

Loss before extraordinary items

Extraordinary items

Net loss for the financial year

Loss per share (cents)Before extraordinary items- Basic- Diluted

After extraordinary items- Basic- Diluted


INCOME STATEMENTSFor the financial year ended 30 April 2001

The accompanying notes form an integral part of these financial statemAuditors’ Report - page 19.


Current assetsCash and cash equivalentsShort term investmentsTrade debtorsDue by subsidiaries – tradeDividends receivable from subsidiariesDue by an associated company – tradeHire purchase receivablesOther debtorsTax recoverableOther current assets

Non-current assetsHire purchase receivablesInvestment in an associated companyInvestments in subsidiariesOther investmentsProperty, plant and equipmentGoodwill

Total assets

Current liabilitiesTrade creditorsOther creditors and provisionsDue to subsidiaries – non-tradeBank overdraftsShort term bank loansLong term bank loansHire purchase creditorsCurrent tax

Non-current liabilitiesBank overdraftsLong term bank loansHire purchase creditorsDeferred tax

Total liabilities

Net assets


22

Share capital, reserves and accumulated lossesShare capitalShare premiumReservesAccumulated lossesInterests of the shareholders of the Company

Minority interests

N


BALANCE SHEETSAs at 30 April 2001



Notes Sharecapital$’000

Balance at 1 May 2000 108,567

Net loss not recognised inincome statement –Currency translation differences 28 -

Net loss for the financial year -

Total recognised losses forthe financial year -

Issue of share capital 27 3

Balance at 30 April 2001 108,570

Balance at 1 May 1999 98,074

Net loss not recognised inincome statement –Currency translation differences -


Total recognised losses forthe financial year -

Issue of share capital 27 10,493

Expenses of private placement -

Balance at 30 April 2000 108,567

CONSOLIDATED STATEM

The accompanying notes form an integral part of these financial sAuditors’ Report - page 19.


24


STATEMENT OF CHANGES IN EQFor the financial year ended 30 April 2001

Notes Share Scapital pre$’000 $

Balance at 1 May 2000 108,567 65

Net loss not recognised inincome statement –Currency translationdifferences 28 -


Total recognised lossesfor the financial year -

Issue of share capital 27 3

Balance at 30 April 2001 108,570 65

Balance at 1 May 1999 98,074 52

Total recognised loss forthe financial year - Netloss for the financial year -

Issue of share capital 27 10,493 13

Expenses of privateplacement - (

Balance at 30 April 2000 108,567 65



Cash flows from operating activitiesLoss before taxation and extraordinary itemsAdjustments for:

DepreciationProvision for diminution in value of short term investmentsAmortisation and write off of goodwillProfit from sale of property, plant and equipment (net)Interest expenseInterest income

Operating cash flow before working capital changesChanges in operating assets and liabilities:

Decrease/(increase) in receivables(Decrease)/increase in creditorsForeign currency translation

Cash generated from operationsIncome taxes paid

Net cash generated from operating activities

Cash flows from investing activitiesProceeds from disposal of property, plant and equipmentPurchase of property, plant and equipmentPurchase of quoted equity shares in an associated companyPurchase of quoted equity investmentsPurchase of unquoted equity investmentsExpenses incurred on disposal of heavy

equipment businessInterest income

Net cash generated from investing activities

Cash flows from financing activitiesNet proceeds from issue of sharesNet proceeds from issue of shares by subsidiaries to

minority shareholdersIncrease/(decrease) in bank loansDecrease in hire purchase creditorsInterest expenseDividends paid to minority shareholders of a subsidiary corpora

Net cash generated from/(used in) financing activities

Net increase in cash and cash equivalentsCash and cash equivalents at beginning of the financial year

Cash and cash equivalents at end of the financial year [see n

CONSOLIDAT

The accompanying notes form an integral part of these financial sAuditors’ Report - page 19.


26


NOTES TO THE FINANCIAL STATFor the financial year ended 30 April 2001

These notes form an integral part of and should be read in conjunction

1. General

The Company is incorporated and domiciled in Singapore aLimited. The address of its registered office is:

51 Penjuru Road#04-00 Freight Links Express LogisticentreSingapore 609143

The principal activities of the Company are those of invesadvisory services on corporate and strategy matters. The prinfinancial statements.

2. Significant accounting policies

(a) Basis of preparation

The financial statements are prepared in accordance with leasehold building and investment in subsidiaries at valuatthose of the preceding financial year.

The financial statements are prepared in accordance with and

The financial statements are expressed in Singapore dollars.

(b) Basis of consolidation

The consolidated financial statements include the financial stathe end of the financial year. The results of subsidiaries acquiexcluded from the consolidated income statement from the dand transactions and resulting unrealised profits are eliminatinter-company transactions are also eliminated unless cost c


2. Significant accounting policies (continued)

(c) Foreign currencies

Transactions in foreign currencies during the year are cothe transaction dates. Foreign currency monetary assetexchange prevailing at the balance sheet date. Exchan

Foreign currency advances to foreign subsidiaries, for whfuture, are in substance part of the Company’s exchange rates prevailing at the balance sheet date. Tcurrency translation reserves account in the balance sdifferences are taken to the income statement.

For the purpose of consolidation of foreign subsidiarioperations, the balance sheets of foreign subsidiarieprevailing at the balance sheet date and the results oaverage monthly exchange rates for the financial yeacurrency translation reserve account in the balance she

(d) Revenue recognition

Revenue from outward freight forwarding is recognisrecognised when the goods are delivered.

Rental income is recognised on a straight line basis ove

Revenue from the rendering of services is recognised w

Interest income on hire purchase is recognised over thstatement based on the “Rule of 78” method.

(e) Taxation

Tax expense is determined on the basis of tax effect accsignificant timing differences arising from the different t

In accounting for timing differences, deferred tax assettheir realisation.

(f) Cash and cash equivalents

For the purposes of the cash flow statement, cash afinancial institutions, net of bank overdrafts.

(g) Trade debtors

Bad debts are written off and specific provisions are ma

NOTES TO T


28

(h) Investments

Long term investments, including investments in subsidiariesand provision is made for any diminution in value, other thanbasis. Quoted investments held as current assets are stateaggregate basis. Cost is determined on the weighted averag

Dividend income is recorded gross in the income statemenpayable by the investee company. Profits or losses on dispos

(i) Associated companies

The Group treats as associated companies those companies i20 and 50 percent and over whose financial and operating po

Associated companies are accounted for under the equity massociated companies is included in the consolidated incoretained profits, or losses, and reserves is adjusted against thWhere the accounting policies of associated companies do noconsolidation where the amounts involved are considered sig

(j) Construction-in-progress

During the course of construction of warehouses, all developminterest, rental of land, property tax and direct overhead costs

(k) Property, plant and equipment

Property, plant and equipment are stated at cost or valuation

When the carrying amount of an asset is greater than its estimits recoverable amount.

An increase in the carrying amount arising from the revaluatithat a decrease in carrying amount offsets a previous increasesubsequently reversed or utilised, it is charged against the acarrying amount is charged to the income statements.

An increase on revaluation directly related to a previous decstatements is credited to income to the extent that it offsets th

On disposal of the property, carried at valuation, the revaluatretained profits.





NOTES TO T


(l) Depreciation of property, plant and equipment

No depreciation is provided on freehold land.

Depreciation is calculated so as to write off the cost of purchase, on a straight-line basis over the expected uspurpose are:

Freehold buildings and leasehold propertiesMotor vehicles, trucks & prime moversOffice equipment & machineryFurniture, fixtures & fittingsCranes

(m) Goodwill

Goodwill represents the excess of the fair value of the cof subsidiaries and associates when acquired. Goodwincome statement over its useful economic life up to a m

Goodwill which is assessed as having no continuing ecassessment is made at the point of its acquisition, orpreviously been assessed as having economic value.

(n) Accounting for leases

A distinction is made between finance leases which effrisks and benefits incidental to the ownership of the leasretains substantially all such risks and benefits. Assets manner as finance leases.

Finance leases and assets on hire purchase are cappayments. Each lease or hire purchase payment is alloconstant rate of finance charge on the outstanding liabiare included in borrowings. The interest elements of statements over the lease period. Plant and equipmedepreciated over the useful life of the assets.

Operating lease payments are charged to the income s


30



3. Turnover

20$’0

Freight forwarding income 70,8Rental income 15,4Services rendered 4,5Dividend income

90,7

4. Staff costs

20$’0

Wages and salaries 9,9Employer’s contribution to Central

Provident Fund 9Other employee benefits

10,9Less: Amount offset against provision

for foreseeable losses (

10,0

The average monthly number of persons employed during the

20

Full time 2Part time

2

5. Remuneration bands of directors of the Compa

The number of directors of the Company in remuneration bTrading Limited Listing Manual is set out below:

Above $500,000$250,000 to $499,999Below $250,000


NOTES TO T

6. Operating (loss)/profit

Operating (loss)/profit is arrived at after:

Charging:Auditors’ remuneration:- Auditors of the Company

- current year- underprovision in prior year

- Other auditorsFees payable for non-audit services rendered by

the auditors of the CompanyDepreciation of property, plant and equipment:- Freehold buildings and leasehold properties- Motor vehicles, trucks and prime movers- Office equipment and machinery- Furniture, fixtures and fittingsAmortisation of goodwillGoodwill written offDirectors’ remuneration:- Company [refer note 5]- SubsidiariesProfessional fees paid to a firm in which a

director of a subsidiary is a memberForeign exchange lossBad trade debts written offProvision for doubtful debts:- Trade debts- Other debtors- Hire purchase debtorsProvision for diminution in value of short term investmeProperty, plant and equipment written offLoss on disposal of property, plant and equipmentRental expenses – Operating leasesMisappropriation of funds by an employee of a subsidia

[see note 19(e)]

And crediting:Rental incomeProfit from disposal of property, plant and equipmentWrite-back of provision for:- Trade debts- Hire purchase debtorsForeign exchange gain


32



7. Finance income

Interest income:- Advances to subsidiaries- Deposits with banks- Others

8. Finance costs

Interest expense:- Bank term loans- Bank overdrafts- Hire purchase- Advances from subsidiaries- Others

Less: Interest capitalised in construction-in-progress [See Note 21 (g)]


NOTES TO T

9. Taxation

(a) Tax expense

Tax expense is made up of:Current income tax provision

Singapore income taxOverseas taxationTransfer to/(from) deferred taxation

Adjustment to deferred taxation arisingfrom the change in tax rate from 25.5%to 24.5% (2000: 26.5% to 25.5%)

Prior year items:Underprovision of Singapore income taxUnderprovision of deferred taxation

Despite the loss of the Group for the financial year, thavailable to certain subsidiaries cannot be offset agains

Certain subsidiaries have utilised tax losses, capital alloyears to set off against taxable profits, resulting in a tax


34



9. Taxation (continued)

(b) Movements in provision for current tax (net of tax recoverable

Balance at the beginning of the financial yearIncome tax paidCurrent financial year’s tax expense on profitUnderprovision in prior financial years

Balance at the end of the financial year

Balance at the end of the financial yearrepresents:Provision for current tax included in

current liabilitiesTax recoverable included in current assets

(c) Composition of deferred tax

Provision for deferred tax comprises the estimated tax expen

Difference in depreciation of property,plant and equipment for accounting andincome tax purposes

On other timing differencesLess: Unutilised capital allowances and

investment allowances available forset-off against future taxable profits


NOTES TO T

9. Taxation (continued)

(d) Movements in provision for deferred tax

Balance at the beginning of the financial yearExchange rate adjustmentsTransfer from income statement

At end of the financial year

As at 30 April 2001, the Group has unutilised tax losse$15,862,000 (2000: $14,425,000) which can, subject tforward and utilised to set-off against future taxable pallowances of the Group amounting to $527,000 (2000: computation.

10. Extraordinary items

Provision for diminution in value of an associateProvision for diminution in value of long term

investmentsProvision (made)/written back for foreseeable

losses arising from:- the decision to convert the factory building

for the manufacture of industrial plasticpallets to a warehouse

- disposal of the heavy equipment businessProvision written back for diminution in value

of long term investmentsProfit on disposal of long term investmentsProvision made for doubtful recovery of

advances to an investee corporation[See Note 17]

Provision to write down certain freehold andleasehold properties to their expectedrecoverable values


36



10. Extraordinary items (continued)

Write off arising from decision to discontinueextension of warehouse- cost of leasehold land- cost of construction-in-progress

Provision for doubtful recovery of advances to subsidiariesProvision for diminution in value of investment in subsidiaries

Less: Minority interest

11. Loss per share

Loss before extraordinary items attributable to shareholders

Loss after extraordinary items attributable to shareholders

Weighted average number of ordinary shares in issue(rounded to nearest thousand)

Adjustments for assumed exercise of:- Executives’ share options- Warrants 2001- Warrants 2002Weighted average number of ordinary shares used in

computing diluted earnings per share

Basic loss per ordinary share is calculated by dividing the average number of ordinary shares in issue during the financ

For the diluted loss per ordinary share the weighted averageconversion of all dilutive potential ordinary shares being the s

For the financial year ended 30 April 2001, the potential ordinto employees and warrants in issue are anti-dilutive and have


NOTES TO T

12. Cash and cash equivalents

Cash at bank and on handFixed deposits with financial institutions

For the purposes of the consolidated cash flow statemethe following:

Cash and bank deposits (as above)Less: Bank overdraftsCash and cash equivalents per consolidated cash flow

13. Short term investments

Quoted equity shares in a corporation, at costLess: Provision for diminution in value of short term inve

Market value


38



13. Short term investments (continued)

Movements in provision for diminution in value of short term i

Balance at the beginning of the financial yearProvision made during the financial yearTransferred from provision for diminution in value of long

term investments


14. Trade debtors

Trade debtorsLess: Provision for doubtful trade debts

Movements in provision for doubtful trade debts are as follow

Balance at the beginning of the financial yearExchange rate adjustmentProvision made during the financial yearProvision written back during the financial yearBad debts written off against provision



NOTES TO T

15. Hire purchase receivables

Not later than one financial yearLater than one financial year but not later than five

financial yearsMinimum lease receivableLess: Future finance chargesLess: Provision for doubtful debts

Representing hire purchase receivables:CurrentNon-current

Movements in provision for doubtful hire purchase debt

Balance at the beginning of the financial yearProvision made during the financial yearProvision written back



40



16. Other debtors

Deposit for purchase of property, plant and equipmentLoan to shareholders of subsidiariesLoans receivablePrepayments and depositsNon-trade receivables due from a former subsidiaryOther receivables

Less : Provision for doubtful debts

Movements in provision for doubtful debts are as follows:

Balance at the beginning of the financial yearProvision made during the financial year



NOTES TO T

17. Other current asset

Cost of investment in unquoted equity shares of a corpAdvances

Less: Provision for doubtful recovery

The Group’s control over Concept Hope Sdn. Bhd. is inta view to its subsequent disposal in the near future. Arsubsidiary of the Group.

As at 30 April 2000, the Company had only paid 95% of was accrued during the financial year.

18. Investment in an associated company

Investment in quoted equity shares at costLess: Provision for diminution in value made during

the financial year

Represented by:Net tangible assets acquiredGoodwillLess : Provision for diminution in value made during

the financial year

Market value


42



18. Investment in an associated company (continue

The associate is:

Country ofName of company incorporation Principa

Cybermast Limited Singapore Investme

The results of the associated company have not been equstatements.

Subsequent to the financial year end, the Group entered intoLimited, at the exercise price of $0.46 per share. The option hincur a loss of $1,581,000 from the disposal and accordingly tfor the year ended 30 April 2001.

19. Investments in subsidiaries

Unquoted equity sharesAt costAt valuation [see note (a) below]

Quoted equity sharesAt cost

Less: Provision for diminution in value

Advances to subsidiaries [see note (b) below]Less: Provision for doubtful recovery of advances

Advances from subsidiaries [see note (b) below]

Market value of quoted equity shares


NOTES TO T

19. Investments in subsidiaries (continued)

Movements in provision for diminution in value of invest

Balance at the beginning of the financial yearProvision made during the financial year


Movements in provision for doubtful recovery of advancare as follows:

Balance at the beginning of financial yearProvision made during the financial year


(a) The directors carried out a valuation of the Company’s itangible asset value of the subsidiaries as at 30 April 19on 31 October 1994 as described in Note 21(c). Theaccount. The valuation was carried out for the purposemade its initial public offering of shares of the Companyregular basis.

(b) The advances to/(from) the subsidiaries are unsecured wwithin the next twelve months. Interest is charged at 6.2

(c) The non-trade balances due to the subsidiaries incluunsecured and interest is payable at 6.25% (2000: 6.25


44




(d) The subsidiaries are:Country of

Incorporation/Place of

Name of Subsidiary Principal Activities Business

At ValuationFreight Links Express Pte Ltd Freight forwarding SingaporeThru-Consolidation Dormant SingaporeServices Pte LtdFreight Links Express Warehouse owner and SingaporeDistripark Pte Ltd warehousing servicesCrystal Freight Services Pte Ltd Freight forwarding SingaporeEuro-Asia Line (Private) Limited Dormant SingaporeUnited Moving Services Pte Ltd International/domestic Singapore

removalists forhousehold effects,office furniture andequipment,commercialand industrial goodsand speciality items

*Freight Links Express Freight forwarding Malaysia(Penang) Sdn. Bhd.*Freight Links Express Freight forwarding Malaysia(Malaysia) Sdn. Bhd.*Freight Links M&S Freight forwarding Hong Kong(H.K.) Limited

At CostFreight Links Express Warehouse owner and SingaporeLogisticentre Pte Ltd warehousing servicesFreight Links Express Warehouse owner and SingaporeDistricentre Pte Ltd warehousing services*Freight Links Express Dormant Sri LankaDistripark (Colombo)(Private) LimitedCrystal Freight Services Warehouse owner and SingaporeDistripark Pte Ltd warehousing servicesSingapore Enterprises Investment holding SingaporePrivate LimitedFreight Links E-logistics Dormant SingaporeTechnoPark Pte LtdFreight Links Express Dormant SingaporeExhibition Forwarding Pte Ltd


NOTES TO T


Country ofIncorporatio

/Place ofName of Subsidiary Principal Activities Business

Freight Links Express Dormant SingaporeInternational Pte LtdFreight Links Express Dormant SingaporeDistrihub Pte Ltd+Freight Links ExpressHoldings (Australia) Limited Investment holding Australia*Caxton Holdings Limited Dormant AustraliaPiow Hong Pte Ltd Leasing and trading of Singapore

heavy equipment. Thesubsidiary ceasedoperations during thefinancial year.

Piow Hong Capital Pte Ltd Leasing of heavy Singaporeequipment

Piow Hong Equipment Pte Ltd Dormant SingaporeFreight Links Express Air Dormant SingaporeSystems Pte LtdFreight Links Express Logistics, archival SingaporeArchivers Pte Ltd storage and retrieval of

corporate documentsand records and relatedservices

Freight Links Express Dormant SingaporeLand Pte LtdFreight Links Express Dormant SingaporeTechpark Pte LtdFreight Links Express Dormant SingaporeAirfreight Pte LtdFreight Links Express Design and construction SingaporeExpoLogistics Pte Ltd of exhibition stands and

other related services*Crystal Shipping Line Dormant Hong Kon(H.K.) LtdFreight Links Express Warehouse owner SingaporeLogisticPark Pte Ltd and warehousing servicesFreightlinks.com Pte Ltd Investment holding SingaporePiow Hong Logistics Dormant SingaporePte LtdTrailer Singapore Pte Ltd Dormant SingaporeFLE Shipping Line Pte Ltd Dormant Singapore


46




Country ofIncorporation

/Place ofName of Subsidiary Principal Activities Business

* Piow Hong (Philippines), Inc. Dormant Philippines* Piow Hong Crane (Malaysia) Dormant Malaysia

Sdn. Bhd.* Piow Hong Equipment Dormant Malaysia

(Malaysia) Sdn. Bhd.* Sunglow Land, Inc. Dormant Philippines~*Harbour Investors, Inc. Dormant Philippines* Freight Links Express, Inc. Dormant Philippines* Freight Links Express Freight forwarding Australia

(Melbourne) Pty Ltd* Freight Links Express Freight forwarding Australia

(Sydney) Pty Ltd* Freight Links Express Warehouse Australia

Logistics (Australia) Pty Ltd Owner/operator

* Companies not audited by PricewaterhouseCoopers, SingOrganisation. The total assets of these companies amount 4.

+ Company audited by another member firm of Pricewaterhous

# Represents amounts less than $1,000.

~ The Group treats these companies as subsidiaries as it contr


NOTES TO T


(e) During the financial year, a 51% owned Hong Kong incdiscovered that a staff had misappropriated the companThe full amount of funds misappropriated was considereGroup’s 51% share of the loss arising from the misappr

Included in the amount of $665,000 were approximatelybeen misappropriated by the staff during the financial yrespectively. According to the requirements of accouadjustments should have been made to correct these ercomputer and accounting records to conceal the misappbefore he was dismissed, it is impracticable to quantify

As a result, the auditors of Freight Links M&S (H.K.) Lim

“ We planned our audit so as to obtain all the informatprovide us with sufficient evidence to give reasonablematerial misstatement. However, the evidence availastatements, approximately HK$1.3 million anmisappropriated by a staff of the Company during the yrespectively (collectively known as the “Prior periods’ Company’s financial statements for the previous yeaHowever, the staff responsible had falsified some of thedocuments therefore it is impracticable to restate misappropriation. Any adjustment to the comparative ihave a consequential effect on the results for the years2000. There were no other satisfactory audit procedurewas properly stated.

In our opinion, the financial statements give a true and and, except for the effects of such adjustments, if any, ato satisfy ourselves as to the comparative information peflows for the year then ended and have been properly p

In respect alone of the limitation on our work relatingmisappropriation:

* We have not obtained all the information and explanati

* We were unable to determine whether proper books o


48



20. Other investments

Unquoted equity shares in corporations, at cost

Quoted equity shares in corporations, at costLess: Provision for diminution in value

[see note (a) below]

Other investments, at cost [see note (b) below]

Market value of quoted equity shares in corporations

(a) The movements in provision for diminution in value of investm

Balance at the beginning of the financial yearProvision written back during the financial yearProvision made during the financial yearTransfer to provision for diminution in value of short term inve


(b) Other investments comprise transferable memberships in gol


NOTES TO T

21. Property, plant and equipment

(a) The Group

Freehold LeaseholdProperties Properties

$’000 $’000Cost or valuationAt 1 May 2000Cost 22,100 97,130Valuation - 24,000

22,100 121,130Exchange rate adjustments (1,974) -Additions 201 252Disposals (10) (737)

At 30 April 2001Cost 20,317 96,645Valuation - 24,000

20,317 120,645

Accumulated depreciationAt 1 May 2000 - 10,801Exchange rate adjustments - -Charge for the financial year - 2,487Disposals - (87)

At 30 April 2001 - 13,201Cost less accumulated

depreciation at 30 April 2001 20,317 107,444Provision to write down to

expected recoverable values[see note (e)] (661) (8,000)

Net book value at30 April 2001 19,656 99,444

Construction-in-progress[see note (f)]

Cost less accumulateddepreciation at 30 April 2000 22,100 110,329

Provision to write down toexpected recoverable values[see note (e)] (717) (8,244)

Net book value at30 April 2000 21,383 102,085

Construction-in-progress[see note (f)]


50



21. Property, plant and equipment (continued)

Included in depreciation charge for the financial year are derelating to Piow Hong Pte Ltd and its subsidiaries which have

For the purpose of calculating depreciation for the Group, $8,3has been attributed to land.

(b) The Company

Cost

At 1 May 2000Additions

At 30 April 2001

Accumulated depreciationAt 1 May 2000Charge for the financial year

At 30 April 2001

Net book value at 30 April 2001

Net book value at 30 April 2000

(c) One of the leasehold properties of the Group was revalued carried out by professional valuers on the basis of open marktransferred to asset revaluation reserves. The Group has no fand equipment and the valuation was carried out for the purpthe initial public offering of shares of the Company.

If the net book value of the leasehold property stated at valuain the financial statements at cost less accumulated depreciat$12,240,000).


NOTES TO T


(d) Certain property, plant and equipment of the Group aextended to certain subsidiaries. The net book value of

Freehold propertiesLeasehold propertiesOffice equipment and machineryFurniture, fixtures and fittings

(e) Movements in provision to write down property, plant an

Balance at the beginning of the financial yearExchange rate adjustmentProvision made during the financial yearUtilised during the financial year


(f) Construction-in-progress at year end comprises:

Development costLeasehold land rentalProperty taxes, interest and other overheads


52




Movements in construction-in-progress were as follows:

At beginning of financial yearAdditions during the financial yearTransferred to property, plant and equipmentWritten off during the financial year [See note 10]

At end of financial year

(g) Interest expenses capitalised in construction-in-progress dur

Interest expense:Bank overdraftsConstruction loansMachinery loans

The actual interest paid on bank loans and bank overdrafts adetermine the amounts of borrowing costs eligible for capital

(h) At the balance sheet date, the net book value of property, planin motor vehicles, trucks & prime-movers, office equipme$13,948,000).


NOTES TO T


(i) The Group’s major properties as at 30 April 2001 are a

Held By Type of Properties Locatio

Freight Links Express Multi-storey 62 Toh Distripark Pte Ltd distribution complex Singap

with 5 storey officeannex

Crystal Freight Warehouse complex 146 GuServices Distripark SingapPte Ltd

Freight Links Express Warehouse cum office 51 PenLogisticentre Pte Ltd Singap

Freight Links Express Warehouse cum office ChangiDistricentre Pte Ltd Singap

Freight Links E- Lot A15416 Tuas Avlogistics TechnoPark (warehouse SingapPte Ltd construction-in-

progress)

Lot A15416a Tuas Av(warehouse Singapconstruction-in-progress)

Freight Links Express Warehouse cum office 33 andLogisticPark Pte Ltd Singap

Freight Links Express Warehouse cum office MelbouLogistics (Australia) AirfreigPty Ltd Interna

TullamaAustral

Sunglow Land Inc. Vacant land Block 4ManilaRadialManila


54




(j) The net book value of the warehouses in Singapore, amounted to $125,801,000 (2000: $125,796,000). As thnormal or favourable economic operating environment, tthe market value of these warehouses. However, othdiminution in the value of two of these warehouses in thebeen made for diminution in the value of the other warehany, is likely to be only short term in nature and it is thewarehousing, distribution and logistics services.

22. Goodwill

At cost

Balance at the beginning of the financial yearExchange rate adjustmentsWritten off to income statementWritten off against provision for foreseeable losses


Amortisation

Balance at the beginning of the financial yearAmortisation for the financial year


Balance at the end of the financial year, net


NOTES TO T

23. Other creditors and provisions

Accrued operating expensesRetention monies payableAmount payable for purchase of property,

plant and equipmentAmount payable for the purchase of

quoted equity shares in an associateProvision for foreseeable lossesOther miscellaneous payables

Movements in provision for foreseeable losses are as fo

Balance at the beginning of the financial yearProvision made during the financial yearProvision written back during the financial yearUtilised during the financial year



56



23. Other creditors and provisions (continued)

Included in the amount charged against the provision for infollowing items which are required to be disclosed under the

Auditors remuneration:- Current year- (Over)/underprovision of prior financial year- Other auditorsGoodwill written offDepreciation of property, plant and equipment- Leasehold property- Motor vehicles, trucks and prime movers- Office equipment and machinery- CranesProvision to write down cranes to their expected

recoverable valuesStaff cost (inclusive of employer’s contribution to

Central Provident Fund)Directors’ remunerationProvision for doubtful trade debtsInterest expense:- Bank overdrafts- Hire purchase creditorsLoss on disposal of property, plant and equipmentForeign exchange loss

24. Bank overdrafts and short term bank loans

The bank overdrafts of the Group are guaranteed by the Comproperties [see Note 21(d)] and fixed and floating charges ovfacilities.

The short term bank loans of the Group are guaranteed by th

As at 30 April 2000, certain subsidiaries of the Company inten15-year term loans. During the financial year, the overdrafts w

For the purpose of disclosure in the financial statements as at to be repaid within 12 months of the balance sheet date liabilities as part of the bank overdraft balance in the balance shas been classified as non-current liabilities.


NOTES TO T

25. Long term bank loans

The above loans are also guaranteed by the Company (2000: 3.5% to 7.75%) per annum.

Loan repayable in 180 monthly instalments of $111December 2000 and secured by a legal mortgacomplex and a fixed charge over certain office eqof Freight Links Express Districentre Pte Ltd.

Loan repayable in 180 monthly instalments of $111December 2000 and secured by a legal mortgacomplex of Freight Links Express Distripark Pte Ltd.

Construction loan repayable in 104 equal monthly instaand the balance in the final 105th instalment comsecured by a legal mortgage over the warehouse floating charge over all assets of Freight Links Expre

Machinery loan repayable in 50 equal monthly instaand the balance in the final 51st instalment commesecured by a legal mortgage over the warehouse floating charge over all assets of Freight Links Expre

Loan repayable in 19 quarterly payments of A$30027 April 1998 and secured by freehold property oLogistics (Australia) Pty Ltd.

Less:Amount repayable within twelve months (included in cu


58



26. Hire purchase creditors

Not later than one financial year

Later than one financial year but not later than five financial y

Less : Future finance charges

Included:Current liabilitiesNon-current liabilities

27. Share capital of Freight Links Express Holdings

(a) Authorised ordinary share capital

The authorised number of ordinary shares is 1 billion shares(2000: $0.20 per share).

(b) Issued ordinary share capital

Balance at the beginning of the financial year 5Issue during the financial year

Balance at the end of the financial year 5

During the financial year, the Company increased its issued by the issue of 14,777 new ordinary shares of $0.20 each byScheme “1998 Options” at the exercise price of $0.20 per sha

The newly issued shares rank pari passu in all respects with

The movements in the share premium account are set out in


NOTES TO T

27. Share capital of Freight Links Express Hold

(c) Outstanding options and warrants

At 30 April 2001, outstanding options and warrants to sup to the dates indicated below are as follows:

Number of Ordinary shares

Executives’ Share Options1996 Options 1,100

1997 Options 884

1998 Options 357

1999 Options 1,969

WarrantsWarrants 2001 5,621

Warrants 2002 37,720

28. Reserves

(a) Composition:Asset revaluation reserveForeign currency translation reserve

(b) Movements:Foreign currency translation reserveBalance at the beginning of the

financial year

Net translation difference arisingduring the financial year



60



29. Commitments

(a) At the balance sheet date, the Group has rental commitments leasehold properties. The minimum lease payments that will

Payable within one yearPayable between one and five yearsPayable after five years

The annual rental of the leasehold properties is subject to rrevision but subject to a maximum increment of 7.6% of the a

(b) Capital commitments not provided for in the financial stateme

Expenditure contracted for

30. Contingent liabilities (unsecured)

(a) The Company has given guarantees to financial institutionamounting to $136,815,000 (2000: $202,782,000). No losses

(b) As at 30 April 2001, a subsidiary of the Group was invol(approximately S$109,000) [2000: RM227,515 (approximatdirectors, as the predicted liability is unlikely to crystallise, noin the financial statements of the Group is considered necess


NOTES TO T

31. Segment information

Primary reporting format – business segments

WarehousinFreight and

forwarding distribution$’000 $’000

Year ended 30 April 2001RevenuesExternal sales 70,809 15,430Inter-segment sales 492 4,531

Total revenues 71,301 19,961

ResultsSegment result (323) 1,066Unallocated corporate costsOperating lossFinance incomeFinance costsLoss before taxTaxLoss from ordinary activitiesMinority interestLoss before extraordinary itemsExtraordinary items - -Loss for the financial year

Other informationSegment assets 17,659 161,579Unallocated assetsInvestment in an associateTax recoverableConsolidated total assets

Segment liabilities 7,938 6,333Unallocated liabilitiesBank overdraftsBank loansTax liabilitiesConsolidated total liabilities

Capital expenditure 193 3,772

Depreciation 172 4,524


62



31. Segment information (continued)

Primary reporting format – business segments (continued)

WarehousingFreight and

forwarding distribution$’000 $’000

Year ended 30 April 2000

RevenuesExternal sales 70,332 14,232Inter-segment sales 2,203 4,367

Total revenues 72,535 18,599

ResultsSegment result 569 1,304Unallocated corporate

costsOperating lossFinance incomeFinance costsLoss before taxTaxLoss from ordinary activitiesMinority interestLoss before extraordinary itemsExtraordinary items - (10,237)Loss for the financial year

Other informationSegment assets 21,561 163,341Unallocated assetsInvestment in an associateTax recoverableConsolidated total assets

Segment liabilities 7,840 4,669Unallocated liabilitiesBank overdraftsBank loansTax liabilitiesConsolidated total liabilities

Capital expenditure 231 7,263

Depreciation 192 4,645


NOTES TO T


The Group is organised into three business segments:

* Freight forwarding - this inc

* Warehouse and distribution

* Sales and leasing of heavy equipment - the opeits dive

Other activities of the Group comprise mainly short teremovalists, design and construction of exhibition standsOther operations include loss on short term investmenvalue of short term investments.

Unallocated costs represent corporate expenses. Segreceivables and operating cash, and exclude investmeitems such as taxation and borrowings. Capital expend

Secondary reporting format – geographical segments

Turnover by geographical market: the following table geographical market, regardless of where the services

SingaporeASEAN (excluding Singapore)North AsiaNorth AmericaAustraliaEuropeOthers

Total


64



Secondary reporting format - geographical segments (continu

Assets and capital expenditure by geographical area: the foassets and capital expenditure by geographical area in which

A(e

Singapore S$’000

2001Segment assets 180,582

Capital expenditure 4,168

2000Segment assets 235,315

Capital expenditure 7,890

32. Comparative figures

Certain comparative figures have been reclassified to conform

In particular, the comparatives have been adjusted or extenrevised Statements of Accounting Standard which the Group

SAS 1 - Presentation of financial statementsSAS 15 - LeasesSAS 23 - Segment reporting

The operating results are not affected by the adoption of the and the Company were already following the recognition and



SIZE OF HOLDINGS NO. OF HOL

1 - 1,0001,001 - 10,000

10,001 - 1,000,0001,000,001 and above

Grand Total

S/NO SHAREHOLDERS’ NAME

1 OVERSEAS UNION BANK NOMINEES PTE LTD2 UNITED OVERSEAS BANK NOMINEES PTE LTD3 DBS NOMINEES PTE LTD4 OVERSEAS CHINESE BANK NOMINEES PTE LTD5 HSBC (SINGAPORE) NOMINEES PTE LTD6 CITIBANK CONSUMER NOMINEES PTE LTD7 SBS NOMINEES PTE LTD8 KEPPEL BANK NOMINEES PTE LTD9 UOB KAY HIAN PTE LTD

10 LIN SHUI CHIN11 CITIBANK NOMINEES SINGAPORE PTE LTD12 PHILLIP SECURITIES PTE LTD13 NG KENG BOO14 TAN BENG CHOO15 CYBERMAST LIMITED16 SOUTHERN NOMINEES (S) SDN BHD17 ONG & COMPANY PTE LTD18 OCBC SECURITIES PRIVATE LTD19 CHEONG AH FATT20 WANG TEK LEE

TOTAL:

SUBSTANTIAL SHAREHOLDER

As shown in the Company’s Register of Substantial Shareholders

David Lim Teck Hiang

SHA

DISTRIBUTION OF SHAREHOLDINGS

Authorised Share Capital 1,000,000,000 Issued and fully paid 542,852,034 oClass of Shares Ordinary sharVoting Right One vote per s


66

SIZE OF HOLDINGS NO. OF HOLDERS

1 - 1,000 7601,001 - 10,000 1,212

10,001 - 1,000,000 5251,000,001 and above 1

Grand Total 2,498

TWENTY LARGEST WARRANTHOLDERS – WARRANTS

S/NO WARRANTHOLDERS’ NAME

1 OVERSEAS UNION BANK NOMINEES PTE LTD2 GOH HUN KENG3 PHILLIP SECURITIES PTE LTD4 ABDUL LATIFF BIN SHIHABUDEEN5 SIU WO PIU6 LIM POH CHENG7 LIM ENG HOE8 CHEW SHIT FUN9 SHEE PING FATT

10 TAN TONG KEK11 TAN YAN KIM12 CHONG YEEM KWOI13 TAY KHIM BENG (ZHENG JINMING)14 NG YAP PENG15 ONG KOK POH16 CHUA HENG LOK17 ARULANANTHAN SUBRAMANIAM18 ESTHER WANG19 TANG WAH JIT20 WONG KEE TOOT

TOTAL:

DISTRIBUTION OF WARRANTHOLDINGS – WARRANTS


SHAREHOLDERS’ INFORMATIONas at 20 August 2001


NOTICE OF

NOTICE IS HEREBY GIVEN that the Annual General Meeting of the Freight LinkExpress Logisticentre, Singapore 609143 on Friday, 28 September 2001 at 9.30 a

As Ordinary Business

1. To receive and adopt the Directors’ Report and Accounts for the year

2. To approve the payment of Directors’ Fees.

3. To re-elect Mr David Lim Teck Hiang as a Director retiring under Articl

4. To re-appoint auditors and to authorise the Directors to fix their remun

As Special Business

5. To consider and if thought fit, to pass the following resolutions with or

a) “That subject always to the Companies Act, Cap. 50, tSingapore Exchange Securities Trading Ltd, the DirectoCompanies Act, Cap. 50, to issue shares in the capital ofor such purposes as the Directors may deem fit PROVIResolution shall not exceed 50 per cent of the issued shshares issued other than on a pro rata basis to existing shfor the time being.”

b) “THAT pursuant to Section 161 of the Companiexercise full powers of the Company to issue, with or pursuant to the terms of the Freight Links Expressagreements and options which would or may require shaof this authority or thereafter, upon such terms and conditbe issued pursuant to the scheme does not exceed 15 p

c) “THAT the Directors of the Company be and areChua Tiong Hock, who is an Executive Director of the CScheme Shares to him not exceeding the limit as set out

6. To transact any other business that may be transacted at an Annual G

By Order Of The Board

Nancy QuekSecretary

Singapore, 12 September 2001


68

Notes :

1. A member of the Company entitled to attend and vote is entitled to appoint onbe a member of the Company.

2. An instrument of Proxy and the power of attorney or other authority (if any) unof authority must to be valid, be deposited at the Company’s Registered Office609143, not less than 48 hours before the time of the Meeting.

Explanatory Notes :

a. The Ordinary Resolution 5 proposed in item 5(a) above, if passed, will empownext Annual General Meeting to issue shares in the capital of the Company uof the Company for the time being for such purposes as they consider wouldshares to be issued other than on a pro rata basis to the existing shareholderscapital of the Company for the time being. This authority will unless previouslyMeeting of the Company.

b. The Ordinary Resolution 6 proposed in item 5(b) above, if passed, will emCompany pursuant to the exercise of the options under the Scheme up to an aof the Company.

c. The Ordinary Resolution 7 proposed in item 5(c) above, if passed, will alloparticipate in accordance with the Scheme.


NOTICE OF ANNUAL GENERAL M


PROXY FORM

Annual General Meeting to be held on 28 September 2001.

I/We,

of (full address)

being member/members of the abovenamed Company hereby appoint the Chairm

Name Address NR

and/or (delete as appropriate)

as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meany adjournment thereof in the manner indicated below :

No. Resolution

1. Report and Accounts

2. Approval of Directors’ Fees

3. To re-elect Mr David Lim Teck Hiang (Article 94)

4. Re-appointment of Auditors

Special Business :

5. Approval pursuant to Section 161 of the Companies Act, Cap. 50

6. Authorising Directors to offer and grant options and issue sharespursuant to the Freight Links Express Holdings LimitedExecutives’ Share Option Scheme

7. Authorising Directors to offer and grant from time to time toMr Henry Chua Tiong Hock options to subscribe for theScheme Shares and to allot and issue the Scheme Shares to him

* Please indicate your vote “For” or “Against” with a “✓ ” within the box pro** If you wish to exercise all your votes “For” or “Against”, please indicate w

as appropriate.

Dated this day of 2001

Signature(s) of member(s)/Common Seal

Important : Please Read Notes Overleaf


70


Notes :

1. Please insert the total number of Shares held by you. If you have Shares en130A of the Companies Act, Chapter 50) you should insert that number of Shaof the Company, you should insert that number of Shares. If you have Sregistered in your name in the Register of Members, you should insert the aRegister and registered in your name in the Register of Members. If no numbto relate to all the shares held by you.

2. A member entitled to attend and vote at a meeting of the Company is entitle

3. The instrument appointing a proxy or proxies must be deposited at the CompLogisticentre, Singapore 609143 not less than 48 hours before the time set f

4. Where a Member appoints two proxies, the appointments shall be invalid unlhis holding to be represented by each proxy.

5. The instrument appointing a proxy or proxies must be under the hand of the aappointing a proxy or proxies is executed by a corporation, it must be execauthorised.

6. A corporation which is a Member may authorise by resolution of its directors oat the meeting, in accordance with Section 179 of the Companies Act, Chap

7. The Company shall be entitled to reject the instrument appointing a proxy or pintentions of the appointor are not ascertainable from the instructions of thaddition, in the case of members whose Shares are deposited with The Centraappointing a proxy or proxies lodged if such members are not shown to havbefore the time appointed for holding the Meeting as certified by CDP to the


freight links express holdings limited

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