SHARE PREMIUM ACCOUNT CAPITAL RESERVE GENERAL RESERVE REVENUE RESERVE

25 15 RESERVES

15.1 SHARE PREMIUM ACCOUNT

In S’million 2002 2001 Balance at January 1 8,944 4,273 Issue of shares 1,190 4,673 Expenses arising from issue of shares 2 Balance at December 31 10,134 8,944 Amount under S500,000

15.2 CAPITAL RESERVE

The capital reserve comprises net exchange translation adjustments arising from translation differences on opening net investments in foreign subsidiary companies and branches, and the related foreign currency borrowings designated as a hedge. Prior to January 1, 2002, goodwill or reserve arising from acquisition of subsidiary companies and other business undertakings has also been included in this account. In S’million 2002 2001 Balance at January 1 - as previously reported 12 138 - effect of restating long term investments at historical costs 92 206 Balance at January 1 as restated 104 68 Net exchange translation adjustments during the year 214 191 Goodwill written back on disposal of subsidiary companies - 19 Balance at December 31 110 104

15.3 GENERAL RESERVE

The movement in general reserve relates to the amounts transferred to the Reserve Fund to comply with the Banking Act, and the other statutory regulations. This reserve is non- distributable. In S’million 2002 2001 RESERVE FUND Balance at January 1 1,728 1,523 Reserves arising from folding in of subsidiary companies - 138 Appropriation from profit and loss account Note 15.4 223 67 Balance at December 31 1,951 1,728 26

15.4 REVENUE RESERVE

In S’million 2002 2001 Balance at January 1 - as previously reported 2,248 1,014 - effect of adopting SAS 12 in connection with deferred taxation 94 82 Balance at January 1 as restated 2,342 1,096 Net profit after taxation 891 1,356 Goodwill transferred from capital reserve on disposal of subsidary companies - 19 Transfer to general reserve Note 15.3 223 67 223 86 Amount available for distribution 3,010 2,366 Less:Dividend on ordinary shares of 104 net of 22 income tax 2001 : nil paid for the financial year ended December 31, 2002 1,500 - Dividends on preference shares of 6 net of 22 income tax 2001 : 6 paid for the financial year 51 24 Balance at December 31 1,459 2,342 Total Reserves 13,654 12,910

15.5 DIVIDEND PROPOSED