|Additional Information On The Results|
|1 Mar , 2004|
In response to the letter from Singapore Exchange Ltd dated 1 March 2004, the Company wishes to provide the following information:
Query: Please provide the factors which led to a decrease in "Other debtors" from about $7.1 million as at 31 December 2002 to about $3.8 million as at 31 December 2003.
Reply: The substantial decrease in "Other debtors" was mainly due to:
(1) Proceeds from the sale of shares in Links Island Holdings Ltd ("Links Islands") of $1.6 million was included in "Other debtors" as at 31 December 2002. These proceeds were deposited into trust accounts with securities firms designated by the Commercial Affairs Department ("CAD") pending the conclusion of its investigation on Links Islands matter. These proceeds have been released to the company after the conclusion of the CAD investigation in 2003 and the amount is no longer included in 'Other debtors" as at 31 December 2003, contributing to the decrease in "Other debtors".
(2) The Comptroller of Income Tax amended its tax assessments for the years of assessment 1990 to 1994, 1996 and 1999 and discharged a total of $1.7 million. The Company recognized the original assessments for those years of assessments as tax suspense until the final determination of the Company's tax liability. As a result of the amended assessments, tax suspense, which is included in "Other debtors", decreased. Accordingly, the provision for taxation was also reduced.
BY ORDER OF THE BOARD
INNO-PACIFIC HOLDINGS LTD
LEE KOH SING