MR Ar2000
MR Ar2000
MR Ar2000
CONTENTS
Our Evolution 2
Chairman’s Message 3
Corporate Information 7
Financial Statements 9
Corporate Governance 45
Statistics of Shareholdings 47
Proxy Form
OUR
EVOLUTION
We were founded in 1993 as Mediacom Technologies focusing on multimedia technology.
By mid 90’s, when most people had hardly ever heard of Voice over Internet Protocol (VoIP),
here in Singapore, there was a team of engineers who were already developing Internet
based voice applications that would become one of the leading players of Voice over Internet
in the world.
Filing more than a dozen technology patents, this core team of engineers, who are still
with MediaRing, continue to invent and develop new voice applications for the Internet.
This technological strength enabled the Company to successfully transform from a
consumer-focused company to one that provides leading edge Internet Voice Services
to telecommunication carriers and enterprises by the end of year 2000.
What started out as an endeavour by a small group of people, MediaRing’s strength
and expertise has tranformed it into a global business. Our early vision of voice-enabling the
Internet continues on.
MediaRing is headquartered in Singapore and has offices in Tokyo; Hong Kong; London;
New York; San Jose, California; Taipei; Beijing and Shanghai.
2
”
CHAIRMAN’S
MESSAGE
“ Group revenue
increased eightfold
from $2.5 million in
1999 to $19.8
million for the year
2000.
Dear Shareholders,
The year 2000 brought with it many challenges. While the early part of the year was
one of continued buoyancy in the industry and IT sector, business conditions in the
second half deteriorated considerably, particularly in the Internet sector, and many
businesses were forced to restructure and re-evaluate their business models.
MediaRing was affected by the slowdown in the industry and the deterioration in the
Internet sector. To cope with the new realities of the marketplace, we transformed our business
from a free Internet usage model based on consumer advertisement revenue to a fee-based
service model delivering full-fledged Internet voice services worldwide. As a fee-based Internet
”
voice service provider, we have strengthened our revenue model and expanded our target
markets to include not just the consumer market segment, but also the carriers and enterprise
segments. Going forward, these segments will contribute significant revenue growth to MediaRing.
3
PRODUCTS
& SERVICES
Year 2000 Review
Year 2000 has been an eventful year for MediaRing invented new ways of
MediaRing’s R&D organization. Key Internet maintaining and improving the voice quality
voice services previously available through of VoIP applications over congested
MediaRing’s flagship software - MediaRing IP-based networks. By the end of the year,
e Talk - were revamped and extended into a the patent-pending technology was fully
hony Servic
t
Ca
ra
lep e suite of web-based solutions serving portals incorporated into MediaRing’s global network
rri
po
Te
and enterprise customers. The company also infrastructure, positioning the company to
er
s
Cor
launched a new service providing carriers and expand its services to carriers, enterprises,
MediaRing telecommunication operators with traffic and consumers worldwide in 2001. As PC-to-
Technology termination services over leased circuits into Phone usage increases in China, MediaRing
Platform China and selected countries in Asia. and CNC teamed up to launch a suite of new
Working with its strategic partner, China prepaid calling cards with the added feature
In
ns
gr
a t e d S olu the largest field trials of PC-to-Phone
service in the world over China’s evolving Year 2001 Products and Services Focus
public Internet. During this highly successful MediaRing’s technology infrastructure has
Consu m er trial, which contributed more than fifteen been harnessed to support two major product
million minutes of voice traffic in China in the and service pillars - Telephony Services and
month of November alone. Integrated Solutions - serving the consumer,
corporate, and carrier segments.
Telephony Services
In the telephony service area the Company
focuses on delivering high-quality termination
services into China as well as to an expanded
list of countries worldwide. Carriers can
choose premium grade services over leased
circuits or they can choose to exploit
MediaRing’s unique technology that enables
the use of the public Internet to deliver high
quality voice traffic. By the second half of 2001,
MediaRing, working with its worldwide
partners, will expand its telephony service
offerings to the corporate sector.
MediaRing’s
IP Telephony
Traffic Volume
60
6
Million Minutes
50
40
30
20 2.7
10 1
0.2
0
Q1 Q2 Q3 Q4
Year 2000
4
Integrated Solutions
• VoizLetter Pro – merging streaming voice Recipients can even be given the option of
As businesses worldwide continue to adopt with email, web pages or newsletters replying with their own voice message to an
and exploit Internet technology as part of their email or newsletter.
core business processes, MediaRing forsees VoizLetter Pro enables marketing
major opportunities in the incorporation of messages to be embedded in email or online In addition to using voice to enrich the
Internet voice capabilities into e-business newsletters that can be streamed over content, recipients can have the option of
applications. MediaRing’s voice services are extremely low bandwidth connections without engaging in a two-way conversation with a
designed for easy integration with enterprise sacrificing voice quality. No special client customer service representative. This level
portals and essential applications such as software is required as a small audio player is of real-time interaction is easily enabled by
email, supply chain management, eCRM, streamed along with the message to enable adding a VoizAssist Pro button (see below) to
eDirect Marketing, and eCommerce. immediate playback of the message. the email or newsletter, thus combining email
Recipients can be directed to click on a start marketing and CRM at the initial point of
Many innovative voice technologies button to hear the audio message while reading customer contact.
previously deployed in MediaRing Talk are now the email text. Or they can be instructed to
extended and incorporated into a set of MediaRing has built a complete service
click on a URL of a specific web page to view around this technology to assist in voice-
commercial applications that constitute while the voice message plays. A VoizLetter
MediaRing’s Integrated Solutions pillar. These enabled email, ad and newsletter creation, web
Pro URL can also be embedded in a web page page design and hosting, email marketing, and
solutions work separately or in concert to or banner ad to send a message to the listener.
deliver Internet Voice Services to a broad tracking and reporting.
spectrum of the business world. MediaRing’s
set of Integrated Solutions include:
5
• VoizFone Pro – improved communications,
enhanced convenience and accountability
VoizFone Pro enables companies to use
the Internet and their internal IP backbones
as the medium for low cost PC-to-phone
telephone calls without incurring toll charges.
As overall costs go down, long-distance
telephone usage becomes more affordable,
thus enabling more open and effective
communication between employees, partners,
and customers. What’s more, the use of
VoizFone Pro couples the cost savings aspect
of VoIP with new levels of convenience –
business users can travel anywhere and make
convenient and high quality PC-to-phone
calls from anywhere.
Completely standards-compliant (including
H.323), VoizFone Pro conforms easily to
business needs – calls are enabled from PCs
to both standard wireline and wireless phones;
there is no special hardware requirement;
there are no expensive telephony gateways;
and, deployment can be immediate. Like
VoizAssist Pro, VoizFone Pro can be used by
ISPs, portals, and enterprises as the basis for
private-label voice services.
68
CORPORATE
INFORMATION
BOARD OF DIRECTORS PRINCIPAL BANKER
Walter Sousa Citibank N.A., Singapore
(Chairman) 3 Temasek Avenue
Ng Ede Phang #17-00 Centennial Tower
(Chief Executive Officer) Singapore 039190
Koh Boon Hwee
Sim Wong Hoo
Tan Lip-Bu AUDITORS
Pol Lucien Corneel Hauspie Arthur Andersen
Thomas Kalon Ng Certified Public Accountants
10 Hoe Chiang Road
#18-00 Keppel Towers
COMPANY SECRETARY Singapore 089315
Mun Tien Shoong Partner-in-charge: Max Loh Khum Whai
SHARE REGISTRAR
Lim Associates (Pte) Ltd
10 Collyer Quay
#19-08 Ocean Building
Singapore 049315
7
MAIN BUSINESS
ADDRESSES
SINGAPORE HEAD OFFICE ASIA PACIFIC
MediaRing.com Ltd Hong Kong
10 Eunos Road 8 MediaRing.com (Hong Kong) Limited
#12-01 Singapore Post Centre Suite 905B
Singapore 408600 9/F Sino Plaza
Tel : (65) 846 0990 255-257 Gloucester Road
Fax : (65) 846 0286 Causeway Bay, Hong Kong
Tel : (852) 2836 6191
Fax : (852) 2836 6477
UNITED STATES OF AMERICA
Shanghai
San Jose
MediaRing.com (Shanghai) Limited
MediaRing.com Inc.
13/F Golden Finance Tower
99 West Tasman Drive
No 58 Yanan Dong Road
Suite 280
Shanghai 200002
San Jose, CA 95134
P.R.China
United States of America
Tel : 86 (21) 6361 8899
Tel : 1 (408) 383 9222
Fax : 86 (21) 6361 1010
Fax : 1 (408) 383 9223
Beijing (Branch Office)
New York (Representative Office)
Room 722, 7/F World Tower
MediaRing.com Inc.
No. 16 Ande Road
121 W. 27th Street
Dong Cheng District
Suite 801
Beijing 100011
New York, N.Y. 10001
P.R. China
United States of America
Tel : 86 (10) 8488 2390
Tel : 1 (646) 638 0960
Fax : 86 (10) 8488 2339
Fax : 1 (646) 638 0961
Taiwan (Representative Office)
MediaRing.com Ltd
UNITED KINGDOM
11F 237 No. Sec 4,Cheng De Rd,
London Shihlin Dist, Taipei
MediaRing.com Europe Limited Taiwan, R.O.C.
First Floor Office, Warwick House Tel : 886 (2) 8861 5376
25/27 Buckingham Palace Road Fax : 886 (2) 8861 5409
London SW1WOPP
United Kingdom Japan (Associated Company)
Tel : 44 (207) 798 6200 MediaRing TC, Inc
Fax : 44 (207) 798 6260 Shinbashi Yamane Building
8F, 2-5-14 Higashi-Shinbashi
Minato-ku, Tokyo
105-0021 Japan
Tel : 81 (3) 5777-3641
Fax : 81 (3) 5777-3617
8
DIRECTORS’ REPORT - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
The directors are pleased to present their report to the members together with the audited financial statements of the Company
and of the Group for the financial year ended 31 December 2000.
Directors
The directors of the Company in office at the date of this report are:
Ng Ede Phang
Koh Boon Hwee
Thomas Kalon Ng
Pol Lucien Corneel Hauspie
Tan Lip-Bu
Sim Wong Hoo
Walter Sousa
Thomas Denys (alternate director to Pol Lucien Corneel Hauspie)
Principal Activities
The principal activities of the subsidiaries include those relating to marketing and the sale of international telephony services
and internet voice services in their respective countries of incorporation.
There have been no significant changes in the nature of these activities during the financial year.
Employees
The total number of employees in the Company and the Group at the end of the financial year was 123 (1999: 142) and 277
(1999: 211).
9
DIRECTORS’ REPORT (CONTINUED)
Except as shown in the financial statements, there were no material transfers to or from reserves or provisions during the
financial year.
The following subsidiary was acquired by the Company during the financial year:
The following subsidiary was incorporated by MediaRing.com (Hong Kong) Limited during the financial year:
There were no other acquisitions and disposals of subsidiaries during the financial year.
The Company
The Company issued the following shares during the financial year:
(a) 8,190,477 ordinary shares of $0.10 each at $1.05 per share, To raise additional working capital
for cash
(b) 4,950,495 ordinary shares of $0.10 each at $1.01 per share To acquire issued shares in I2U Pte Ltd
for consideration other than cash
(c) 3,011,603 ordinary shares of $0.10 each at $1.56 per share To acquire issued shares in eWorld of
for consideration other than cash Sports.com Limited
(d) 14,851,500 ordinary shares of $0.10 each at par for cash Exercise of employee share options
10
DIRECTORS’ REPORT (CONTINUED)
The subsidiary
During the financial year, MediaRing.com Shanghai Ltd was incorporated with a registered and paid–in capital of US$11,000,000.
All newly issued and paid up shares rank pari passu in all respects with the existing ordinary shares of the respective companies.
Except as disclosed above, no other shares or debentures of the Company or its subsidiaries were issued during the financial
year.
Except as described in the paragraph “Options and Warrants of the Company” below, neither at the end nor at any time during
the financial year was the Company a party to any arrangement whose object was to enable the directors of the Company to
acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate.
According to the Register of Directors’ Shareholdings, the interests of the directors holding office at the end of the financial
year in the share capital of the Company were as follows:
11
DIRECTORS’ REPORT (CONTINUED)
No other directors of the Company had an interest in any shares of the Company or related corporations either at the beginning
or end of the financial year.
Except as disclosed in Note 27 to the financial statements, since the end of the previous financial year, no director has
received or become entitled to receive a benefit (other than any fixed salary of a full-time employee of the Company, or a
benefit included in the aggregate amount of emoluments shown in the financial statements, or any emoluments received from
a related corporation) by reason of a contract made by the Company or a related corporation with the director or with a firm
of which the director is a member, or with a company in which the director has a substantial financial interest.
Dividends
No dividend has been paid or declared since the end of the previous financial year.
Before the financial statements of the Company were prepared, the directors took reasonable steps to ascertain that proper
action had been taken in relation to writing off bad debts and providing for doubtful debts of the Company and satisfied
themselves that no debts need to be written off as bad and that adequate provision had been made for doubtful debts.
At the date of this report, the directors are not aware of any circumstances which would require any debts to be written off as
bad or render the amount of provision for doubtful debts in the group of companies inadequate to any substantial extent.
Current Assets
Before the financial statements of the Company were prepared, the directors took reasonable steps to ascertain that any
current assets of the Company which were unlikely to realise their book values in the ordinary course of the business had been
written down to their estimated realisable values or that adequate provision had been made for the diminution in values of
such current assets.
At the date of this report, the directors are not aware of any circumstances which would render the values attributed to current
assets in the consolidated financial statements misleading.
12
DIRECTORS’ REPORT (CONTINUED)
At the date of this report, no charge on the assets of the Company has arisen which secures the liabilities of any other person
and no contingent liability has arisen since the end of the financial year.
No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months
after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the
Company and of the Group to meet their obligations as and when they fall due.
At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the
consolidated financial statements which would render any amount stated in the financial statements of the Company and
consolidated financial statements misleading.
Unusual Items
In the opinion of the directors, the results of the operations of the Company and of the Group for the financial year have not
been substantially affected by any item, transaction or event of a material and unusual nature.
In the opinion of the directors, no item, transaction or event of a material and unusual nature has arisen in the interval between
the end of the financial year and the date of this report which would affect substantially the results of the operations of the
Company and of the Group for the financial year in which this report is made.
13
DIRECTORS’ REPORT (CONTINUED)
The particulars of share options and warrants of the Company are as follows:
(a) 1995 Employee Share Option Scheme and 1996 Employee Share Option Scheme
These schemes were adopted in 1995 and 1996, respectively, under the previous management of the Company.
Options to subscribe for a total of 2,050,000 ordinary shares of $0.10 each were granted under these schemes as follows:
Number of As at
As at date options lapsed/ 31 December
Date of grant of grant exercised 2000 Exercise price Expiry date
Pursuant to this scheme, 112,000 ordinary shares of $0.10 each were issued during the financial year by virtue of the
exercise of options to take up unissued shares of the Company.
In September 1999, the Company adopted an employee share option scheme (the “1999 MediaRing Employees’
Share Option Scheme”) to grant options to subscribe for 65,921,470 ordinary shares of $0.10 each to employees of
the Group.
The scheme is administered by the Compensation Committee. The members of the committee are:
Details of the options to subscribe for ordinary shares of $0.10 each in the Company granted to employees and
directors of the Group pursuant to the Scheme are as follows:
Except as disclosed above, no other directors were granted options under this scheme and no participant received
5% or more of the total number of options available under the scheme.
14
DIRECTORS’ REPORT (CONTINUED)
Pursuant to this scheme, the Compensation Committee has the ability to grant options to present and future employees
of the Group as well as to other persons who are eligible under the scheme at the then prevailing market price of the
shares, less a discount to be determined by the Compensation Committee, which shall not exceed 20% of the then
prevailing market price.
The scheme will be administered by the Compensation Committee who will then determine the terms and conditions
of the grant of the options, including the exercise price, the vesting periods which may be over and above the minimum
vesting periods prescribed by the Listing Manual of the SGX-ST and the imposition of retention periods following the
exercise of these options by the employees, if any.
In line with the current rules of the SGX-ST, the total number of shares to be issued under the 1999 MediaRing
Employees’ Share Option Scheme II will not exceed 15% of the total issued share capital of the Company from time
to time.
Details of the options to subscribe for ordinary shares of $0.10 each of the Company granted to employees of the
Group pursuant to the scheme are as follows:
Granted
Exercise during the Total Total Total Total not Exercise
period year granted exercised lapsed exercised price
None of the directors were granted options under this scheme and no participant received 5% or more of the total
number of options available under the scheme.
Except for the above, during the financial year there were:
• no options granted by the Company or its subsidiaries to any person to take up unissued shares in the Company
or any subsidiaries; and
• no shares issued by virtue of any exercise of options to take up unissued shares of the Company or any
subsidiaries.
There were no unissued shares of any subsidiaries under option as at the end of the financial year.
15
DIRECTORS’ REPORT (CONTINUED)
Audit Committee
The Audit Committee comprises three independent non-executive directors, one of whom is also the Chairman of the Committee.
The members of the Committee are:
The Committee performs the functions set out in the Companies Act. In performing those functions, the Committee reviewed
the overall scope of the external audits and the assistance given by the Company’s officers to the auditors. The Committee
met with the external auditors to discuss the results of their audit and their evaluation of the systems of internal accounting
controls. The Committee also reviewed the financial statements of the Company and the consolidated financial statements of
the Group for the financial year ended 31 December 2000, as well as the external auditors’ report thereon.
In addition, the Audit Committee reviewed interested person transactions for the financial year ended 31 December 2000
conducted pursuant to the shareholders’ mandate obtained in accordance with Chapter 9A of the Singapore Exchange’s
Listing Manual to satisfy itself that the transactions are on normal commercial terms.
The Audit Committee held two meetings during the financial year ended 31 December 2000.
The Committee has recommended to the Board of Directors that Arthur Andersen be nominated for re-appointment as auditors
at the forthcoming annual general meeting of the Company.
No material contracts to which the Company or any subsidiary, is a party and which involve directors’ interests subsisted at
the end of the financial year, or have been entered into since the end of the previous financial year.
Auditors
Arthur Andersen have expressed their willingness to accept re-appointment as auditors of the Company.
Singapore
22 March 2001
16
STATEMENTS BY DIRECTORS
In the opinion of the directors, the financial statements set out on pages 19 to 44 are drawn up so as to give a true and fair
view of the state of affairs of the Company and of the Group as at 31 December 2000 and the results and changes in equity
of the Company and of the Group and cash flows of the Group for the year then ended and at the date of this statement there
are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.
Singapore
22 March 2001
17
AUDITORS’ REPORT TO THE MEMBERS OF MEDIARING.COM LTD
We have audited the financial statements of MediaRing.com Ltd and the consolidated financial statements of MediaRing.com
Ltd and its subsidiaries as at 31 December 2000 and for the year then ended set out on pages 19 to 44. These financial
statements are the responsibility of the Company’s directors. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by the directors, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion:
(a) the financial statements and consolidated financial statements are properly drawn up in accordance with the provisions
of the Companies Act and Statements of Accounting Standard in Singapore and so as to give a true and fair view of:
(i) the state of affairs of the Company and of the Group as at 31 December 2000 and of the results and changes
in equity of the Company and of the Group and cash flows of the Group for the year then ended; and
(ii) the other matters required by Section 201 of the Act to be dealt with in the financial statements and consolidated
financial statements;
(b) the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries
incorporated in Singapore have been properly kept in accordance with the provisions of the Act.
We have considered the financial statements and auditors’ reports of the subsidiaries of which we have not acted as auditors
and the financial statements of subsidiaries which are not required to present audited financial statements under the laws of
their countries of incorporation, being financial statements included in the consolidated financial statements. The names of
these subsidiaries are indicated in Note 7 to the financial statements.
We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of
the Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial
statements and we have received satisfactory information and explanations as required by us for those purposes.
The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and in respect of the
subsidiaries incorporated in Singapore, did not include any comment made under Section 207(3) of the Act.
Arthur Andersen
Certified Public Accountants
Singapore
22 March 2001
18
BALANCE SHEETS AS AT 31 DECEMBER 2000
(Amounts in Singapore dollars)
Current assets
Stocks 13 – 54,991 – 54,991
Trade debtors 14 4,706,734 136,023 446,386 34,598
Other debtors, deposits and
prepayments 15 3,860,522 2,110,511 1,657,995 1,217,147
Due from a subsidiary (trade) 16 – – – –
Due from subsidiaries (non–trade) 11 – – 476,147 86,181
Loan to a subsidiary 12 – – 1,179,702 –
Due from corporate shareholders (trade) 1,405,085 562,940 1,405,085 562,940
Fixed deposits 18 20,385,427 125,124,193 18,388,699 123,457,693
Cash and bank balances 21,194,343 8,305,048 607,376 6,010,198
Current liabilities
Trade creditors 3,663,028 43,126 43,769 11,574
Accruals and other creditors 17 7,202,047 9,005,511 2,713,717 6,218,700
Due to subsidiaries (trade) – – 5,575 –
Due to subsidiaries (non–trade) – – – 632,745
Short–term loan (secured) 18 5,013,096 – – –
Lease obligations 19 501,589 – – –
Provision for taxation – 4,200 – –
19
STATEMENTS OF PROFIT AND LOSS FOR THE YEAR ENDED 31 DECEMBER 2000
(Amounts in Singapore dollars)
Taxation 24 – (4,200) – –
Accumulated losses,
carried forward 25 (91,874,354) (35,918,888) (39,818,428) (20,652,481)
20
STATEMENTS OF CHANGES IN EQUITY - 31 DECEMBER 2000
(Amounts in Singapore dollars)
21
STATEMENTS OF CHANGES IN EQUITY - 31 DECEMBER 2000
(Amounts in Singapore dollars)
22
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
2000 1999
$ $
23
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
2000 1999
$ $
Cash and cash equivalents consist of cash and bank balances and fixed deposits. Cash and cash equivalents included
in the consolidated statement of cash flows comprise the following balance sheet items:
2000 1999
$ $
41,579,770 133,429,241
Fixed deposits of a subsidiary amounting to $150,000 are pledged to a bank to secure banking guarantee facilities.
Bank balances of a subsidiary amounting to US$3,000,000 are pledged as security for a short-term loan.
24
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
B. ACQUISITION OF A SUBSIDIARY
Increases and decreases in assets and liabilities and the net cash flows resulting from the acquisition of a subsidiary
were as follows:
C. FIXED ASSETS
During the financial year, the Group acquired fixed assets with an aggregate cost of $7,970,031 of which $672,313
was acquired by means of finance leases. Cash payments of $7,297,718 were made to purchase fixed assets.
25
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
These notes are an integral part of and should be read in conjunction with the accompanying financial statements.
The Company is a limited company domiciled and incorporated in Singapore. The address of the Company’s registered office
is 10 Eunos Road 8, #12-01, Singapore Post Centre, Singapore 408600.
The principal activities of the subsidiaries include those relating to marketing and the sale of international telephony services
and internet voice services in their respective countries of incorporation.
Basis of preparation
The financial statements, expressed in Singapore dollars, are prepared in accordance with the historical cost convention and
Statements of Accounting Standard in Singapore.
Revenue recognition
Advertising revenue on both banner and sponsorship contracts are recognised rateably over the period in which the
advertisement is displayed, provided that no significant Group obligations remain at the end of the period and collection of the
resulting receivable is probable. Group obligations for advertising contracts typically include contracted number of
“impressions”, or times that an advertisement appears in pages viewed by users of the Group’s online properties. To the
extent these impressions are not served, the Group defers recognition of the corresponding revenues until the remaining
impression levels are achieved.
Revenues from other consumer operations and integrated solutions are recognised as service is provided. Prepayments for
communication services are deferred and recognised as revenue as and when the communication services are provided.
Unexpired prepayments from customers are included in “accruals and other creditors” in the balance sheet as “unearned
revenue”.
The Group recognises revenue, net of discounts, from product sales over its websites, when products are shipped to the
customers. Outbound shipping and handling charges are included in net sales.
Investments in subsidiaries and associated companies are stated in the financial statements of the Company at cost. Provision
is made where there is a decline in value that is other than temporary.
A subsidiary is a company in which the Group, directly or indirectly, holds more than half of the issued share capital, or
controls more than half of the voting power, or controls the composition of the board of directors.
26
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
An associated company is a company, not being a subsidiary, in which the Group has an equity interest of not less than 20%
and in whose financial and operating policy decisions the Group exercises significant influence.
Basis of consolidation
The Group financial statements include the financial statements of the Company and all its subsidiaries made up to the end of
the financial year. The results of subsidiaries acquired or disposed of during the financial year are included in or excluded
from the Group financial statements with effect from the respective dates of acquisition or disposal. Significant intercompany
balances and transactions have been eliminated on consolidation. In the preparation of the consolidated financial statements,
the financial statements of the foreign subsidiaries have been translated from their respective functional currencies to Singapore
dollars as follows:
(a) all assets and liabilities at the rates of exchange ruling at the balance sheet date;
(b) share capital and reserves at historical rates of exchange; and
(c) profit and loss items at the average exchange rates for the year.
Goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of net assets acquired of another business. This
amount is fully written off to the statement of profit and loss in the year of acquisition.
Fixed assets are stated at cost less accumulated depreciation. Fixed assets are depreciated using the straight-line method to
write-off the cost over their estimated useful lives. The estimated useful lives have been taken as follows:
Years
Quoted bonds
Quoted bonds held on a long-term basis are stated at cost, adjusted for amortisation of premiums and accretion of discounts.
Other investments
Quoted investments are stated at the lower of cost and market value determined on an aggregate portfolio basis. Further
provision is made when, in the opinion of the directors, there has been a decline, other than a temporary decline in the value
of the investment.
Unquoted investments held for the long term are stated at cost. Provision is made for any decline in value that is other than
temporary.
27
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
Finance leases
Fixed assets acquired under finance leases are capitalised and depreciated over their useful lives. The capital elements of
future lease obligations are recorded as liabilities, while the interest elements are charged to income over the period of the
lease to produce a constant rate of charge on the balance of capital repayments outstanding.
Research and development costs are written off in the year in which they are incurred.
Intangible assets
The initial costs of acquiring patents, trademarks and licences are capitalised and charged to the profit and loss account over
3 years in equal instalments. The costs of renewing patents and licences are charged to the profit and loss account. The
carrying values of intangible assets are assessed at the end of each financial year. Intangible assets that are not expected to
have future benefits are fully written off to the statement of profit and loss.
Stocks
Stocks are stated at the lower of cost (determined on a first-in, first-out basis) and net realisable value. Provision is made for
deteriorated, damaged, obsolete and slow-moving stocks.
Income tax
Income tax expense is determined on the basis of tax effect accounting, using the liability method and is applied to all
significant timing differences. Deferred tax benefits are not recognised unless there is reasonable expectation of their realisation.
The accounting records of the companies in the Group are maintained in their respective functional currencies. Transactions
in foreign currencies during the financial year are recorded in the respective functional currencies using exchange rates
approximating those ruling at transaction dates. Foreign currency monetary assets and liabilities at the balance sheet date
are translated into the respective functional currencies at exchange rates approximating those ruling at that date. All resultant
exchange differences are dealt with through the profit and loss account.
Segments
For management purposes, the Group is organised on a world-wide basis into three major operating businesses. The divisions
are the basis on which the Group reports its primary segment information.
3. SHARE CAPITAL
28
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
The Company issued the following shares during the financial year:
(a) 8,190,477 ordinary shares of $0.10 each at $1.05 per share, To raise additional working capital
for cash
(b) 4,950,495 ordinary shares of $0.10 each at $1.01 per share To acquire issued shares in I2U Pte Ltd
for consideration other than cash
(c) 3,011,603 ordinary shares of $0.10 each at $1.56 per share To acquire issued shares in eWorld of
consideration other than cash Sports.com Limited
(d) 14,851,500 ordinary shares of $0.10 each at par for cash Exercise of employee share options
4. SHARE PREMIUM
Group and Company
2000 1999
$ $
At beginning of year 100,504,916 19,437,958
Premium arising from the issue of 4,730,000 Preference “D” shares of
$0.01 each at $1.27 per share – 5,959,800
Premium arising from the issue of 15,000,000 Preference “D” shares of
$0.01 each at $1.40 per share – 20,850,000
Premium arising from the issue of 63,000 ordinary shares
of $1 each at $1.82 per share – 51,660
Premium arising from the issue of 8,132,678 Preference “D” shares of
$0.01 each at $3.57 per share – 28,952,333
Premium arising from the issue of 200,000 Preference “D” shares of
$0.01 each at $1.27 per share – 252,000
Premium arising from the issue of 36,429 ordinary shares of
$1 each at $1.20 per share – 7,286
Conversion of 2,032,000 Preference “C” shares of $0.01 each to ordinary shares
of $0.10 each via capitalisation of share premium – (2,011,680)
Conversion of 41,749,343 Preference “D” shares of $0.01 each to ordinary shares
of $0.10 each via capitalisation of share premium – (41,331,850)
Premium arising from the issue of 170,431,000 ordinary shares of
$0.10 each at $0.53 per share, in connection with the
initial public offering of the Company – 73,285,330
Less: Initial public offering expenses – (4,947,921)
Premium arising from the issue of 8,190,477 ordinary shares of
$0.10 each at $1.05 per share 7,780,953 –
Premium arising from the issue of 4,950,495 ordinary shares of
$0.10 each at $1.01 per share 4,504,951 –
Premium arising from the issue of 3,011,603 ordinary shares of
$0.10 each at $1.56 per share 4,396,940 –
29
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
5. FIXED ASSETS
(a) Group
Furniture,
fixtures and Computer Office Motor Leasehold
fittings equipment equipment vehicles improvements Total
$ $ $ $ $ $
Cost
As at 1.1.2000 707,103 6,313,909 607,467 142,205 – 7,770,684
Arising from acquisition
of subsidiary 783 10,565 73,123 – – 84,471
Additions 662,841 2,913,952 3,719,095 195,970 478,173 7,970,031
Disposals (94,873) (14,692) (42,968) (39,174) – (191,707)
Write–offs – (3,732,329) – – – (3,732,329)
Translation difference (271) 182,628 (2,763) 6,500 (493) 185,601
Accumulated depreciation
As at 1.1.2000 31,416 1,457,224 70,208 10,093 – 1,568,941
Arising from acquisition
of subsidiary 66 434 4,711 – – 5,211
Charge for the year 222,641 2,538,189 805,273 37,596 103,912 3,707,611
Disposals (13,524) (572) (13,957) (13,399) – (41,452)
Write–offs – (1,751,105) – – – (1,751,105)
Translation difference (169) 25,501 (723) 437 (58) 24,988
Computer equipment and office equipment with net book values of $665,632 and $6,566 respectively (1999: $Nil and $Nil)
were acquired under finance leases.
30
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
(b) Company
Furniture,
fixtures and Computer Office
fittings equipment equipment Total
$ $ $ $
Cost
As at 1.1.2000 627,131 1,635,691 543,192 2,806,014
Additions 22,570 1,082,986 109,435 1,214,991
Disposals – (5,982) (16,972) (22,954)
Accumulated depreciation
As at 1.1.2000 22,171 811,263 60,435 893,869
Charge for the year 129,362 633,018 209,571 971,951
Disposals – (2,158) (4,416) (6,574)
6. INTANGIBLE ASSETS
Group and Company
2000 1999
$ $
1,888,053 612,077
Less accumulated amortisation (804,164) (134,464)
1,083,889 477,613
31
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
7. INVESTMENT IN SUBSIDIARIES
27,923,441 21,921,661
Less provision for diminution in value of investment (1,083,300) –
26,840,141 21,921,661
Movement in provision for diminution in value of investment during the year is as follows:
32
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
Country of
Incorporation Percentage of
and Place of equity held by Cost of investment
Name Principal Activities Business the Group by the Company
2000 1999 2000 1999
% % $ $
Held by the Company
Mediacommunication To market and sell Sweden 100 100 40,040 40,040
Nordic AB* products of holding
company in Sweden
(currently dormant)
MediaRing.com, Inc # To market and sell USA 100 100 20,044,154 20,044,154
products of holding
company in USA
MediaRing.com To market and sell United Kingdom 100 100 1,083,300 1,083,300
Europe Ltd † products of holding
company in Europe
Held by a subsidiary
MediaRing.com To market and sell People’s Republic 90 – – –
Shanghai Ltd. † products of holding of China
company in the
People’s Republic of China
27,923,441 21,921,661
33
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
3,373,239 – 3,832,859 –
(b) The Company had the following associated company as at 31 December 2000:
9. INVESTMENT IN BONDS
Group and Company
2000 1999
$ $
Quoted bonds, at cost 48,158,288 –
Included in quoted bonds are bonds amounting to $34,601,170 (market value: $34,132,906) maturing within the next twelve
months.
34
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
24,798,529 141,697
These amounts are unsecured and bear interest at 6% per annum. A loan amount of $21,222,890 is classified under non–
current assets and is not expected to be repaid within the next financial year. The other balance of $1,179,702 relating to
another subsidiary, which is classified under current assets is repayable on demand.
13. STOCKS
– 54,991
35
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
Group Company
2000 1999 2000 1999
$ $ $ $
Movement in provision for doubtful trade debts during the year is as follows:
Group Company
2000 1999 2000 1999
$ $ $ $
Company
2000 1999
$ $
– –
36
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
Group Company
2000 1999 2000 1999
$ $ $ $
The short-term loan is secured by a subsidiary’s bank deposit of US$3,000,000, bears interest at 5.85% per annum and is
repayable on 10 July 2001.
Group
Payments Interest Principal
$ $ $
20. TURNOVER
37
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
Group Company
2000 1999 2000 1999
$ $ $ $
Group Company
2000 1999 2000 1999
$ $ $ $
Auditors’ remuneration
- auditors of the company 72,250 40,899 60,000 40,000
- other auditors 54,481 40,250 – –
Non–audit fees paid to auditors of the company 18,746 – – –
Amortisation of intangible assets 934,377 98,617 934,377 98,617
Depreciation of fixed assets 1,419,287 131,290 517,591 105,913
Directors’ remuneration
- directors of holding company 212,696 415,778 212,696 415,778
- directors of subsidiaries 144,005 – – –
Fixed assets written off 1,981,224 – – –
Goodwill on consolidation written off 2,457,279 – – –
Government grants – (720,753) – (720,753)
(Gain)loss on disposal of fixed assets (87,981) 74,608 (1,510) 74,608
Intangible assets written off 768,651 – 768,651 –
Operating lease expense 2,576,487 698,606 849,544 282,562
Provision for diminution in value
of investment in a subsidiary – – 1,083,300 –
Provision for diminution in value of
quoted investments 7,843,555 – 4,722,961 –
Provision for diminution in value
of unquoted investments 1,683,310 – – –
Provision for doubtful debts
receivable from a subsidiary – – 3,189,274 –
Provision for doubtful trade debts 89,652 – – –
Provision for stock obsolescence 52,336 – 52,336 –
Research and development costs* 11,987,706 4,827,843 5,168,197 3,217,890
Stocks written off – 70,001 – 70,001
* Included in research and development costs are depreciation charges relating to the Group and Company amounting to
$2,288,324 (1999: $971,405) and $454,360 (1999: $315,345) respectively as well as personnel expenses relating to the
Group and Company amounting to $7,248,390 (1999: $2,556,528) and $4,490,241 (1999: $2,234,100) respectively.
38
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
Group Company
2000 1999 2000 1999
$ $ $ $
Interest income
– fixed deposit 2,237,419 645,923 1,626,678 582,415
– bonds 910,140 - 910,140 -
– bank balances 30,316 - 10,054 -
– loan to subsidiaries - - 871,879 -
Foreign exchange gain (loss), net 833,158 (280,304) 836,563 (280,242)
Interest expense on short-term loans (9,536) - - (995)
24. TAXATION
The Company
As at 31 December 2000, the Company had unutilised tax losses of approximately $25,400,000 (1999: $16,900,000). These
are available for offset against future taxable profits, subject to compliance with the relevant provisions of the Singapore
Income Tax Act.
The subsidiaries
As at 31 December 2000, the subsidiaries had unutilised tax losses of approximately $28,000,000 (1999: $14,000,000).
These are available for offset against future taxable profits, subject to agreement with the Income Tax Authorities and the
relevant provisions of the tax legislation of the respective countries in which the subsidiaries operate.
The losses of companies within the Group are not available for offset against the profits of profitable companies on a group
basis.
The Group’s potential deferred tax benefit arising from these unutilised tax losses and capital allowances has not been
recognised in the financial statements in accordance with the accounting policy in Note 2 to the financial statements.
39
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
Group
2000 1999
$ $
This is retained by:
91,874,354 35,918,888
Basic loss per share is calculated by dividing the Group’s net loss for the year of $55,955,466 (1999: $25,854,522) by the
weighted average number of shares in issue during the year of 710,140,188 (1999: 252,686,013) ordinary shares of $0.10
each.
Diluted loss per share is the same as basic loss per share as the effects of anti–dilutive potential ordinary shares are ignored
in calculating diluted loss per share.
The Group and Company has significant transactions with related parties on terms agreed between the parties as follows:
Group Company
2000 1999 2000 1999
$ $ $ $
Revenue
Revenue from corporate shareholders 4,692,339 592,362 4,692,339 592,362
Interest income from subsidiaries – – 871,879 –
Expenses
Management fees to a subsidiary – – 23,426 393,797
40
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
(i) The Company has undertaken to provide continuing financial support to three of its subsidiaries by not demanding
payment for loans and receivables owing by them and when required, to provide sufficient working capital up to $1
million in excess of the shareholders’ deficit of each subsidiary as at 31 December 2000 to enable them to operate as
going concerns for a period of at least twelve months from the respective dates of the directors’ reports of the subsidiaries.
(ii) The Company’s wholly-owned subsidiary in the United States of America, MediaRing.com, Inc., is one of ten defendants
whereby the plaintiff is claiming that MediaRing.com, Inc., along with the other nine defendants, is in infringement of
patented technology for a product that uses simultaneous voice and data in engaging in telephone calls over telephone
lines using Internet Protocol. The Company, its legal counsel, engineers and patent attorneys, are currently assessing
the case and as at this date are unable to ascertain the possible outcome of the litigation or potential losses, if any, that
may arise therefrom.
Group Company
2000 1999 2000 1999
$ $ $ $
41
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
2000
Consumer Integrated
operations Telephony solutions Others Group
$ $ $ $ $
Revenue
External sales 11,323,856 7,761,153 490,414 264,382 19,839,805
Result
Operating loss (20,345,322) (10,310,183) (20,346,725) (171,883) (51,174,113)
Unallocated corporate income 3,652,008
Unallocated corporate expenses (9,417,492)
Share of loss of associated company (459,620)
Minority interest 1,443,751
Assets
Allocated assets 6,871,588 28,602,161 3,146,170 – 38,619,919
Investment in associated company 3,373,239
Unallocated assets 72,293,718
Liabilities
Allocated liabilities 3,043,695 11,117,155 2,194,731 24,179 16,379,760
42
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
1999
Consumer
operations Others Group
$ $ $
Revenue
External sales 2,465,970 33,350 2,499,320
Result
Operating loss (22,123,070) (76,946) (22,200,016)
Unallocated corporate expenses (3,672,277)
Minority interest 17,771
Assets
Allocated assets 7,709,192 68,887 7,778,079
Unallocated assets 135,194,983
Liabilities
Allocated liabilities 3,671,300 247,125 3,918,425
Unallocated liabilities 5,134,412
43
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2000
(Amounts in Singapore dollars unless otherwise stated)
Total 1 7 8
1999
Total 2 8 10
31. COMPARATIVES
Where necessary, prior year financial statements have been restated to conform with the current year’s presentation in
accordance with the new presentation requirements of Statement of Accounting Standard No. 1 (Revised 1999), Presentation
of Financial Statements, and Statement of Accounting Standard No. 15 (Revised 1999), Leases and Statement of Accounting
Standard No. 23 (Revised 1999), Segment Reporting.
44
CORPORATE GOVERNANCE
This portion is in compliance with the “Listing Manual”, Clause 912(4), to provide sufficient disclosure of the Company’s
corporate governance processes and activities in its Annual Report.
The Directors and Management are committed to maintaining a high standard of corporate governance. We adopt the best
practices set out under the Best Practices Guide issued by the Singapore Exchange Securities Trading Limited. For effective
corporate governance, the Company has the following:
BOARD OF DIRECTORS
The Board of Directors consists of 7 members and an alternate director to one of the members. Except for the CEO, Ng Ede
Phang, all other members are non-Executive Directors.
The Board supervises the management of the business and affairs of the Group. Apart from its statutory responsibilities, the
Board approves the Group’s strategic plans, key operational initiatives, major investments and funding decisions, reviews the
financial performance of the Group and evaluates the performance and compensation of senior management personnel.
These functions are carried out either directly or through Board committees like the Audit Committee, Compensation Committee
and the Executive Committee as well as by means of a system of Corporate Authorization to management personnel in
various companies of the Group.
The Board of Directors held a total of 4 Board Meetings during the financial year ended 31 December 2000.
AUDIT COMMITTEE
The Audit Committee comprises three members, Walter Sousa, Koh Boon Hwee and Thomas Kalon Ng, all of whom are
independent directors. Walter Sousa is the Chairman of the Audit Committee.
The overall objective of the Audit Committee, is to ensure that Management has created and maintained an effective control
environment in the Company, and the Management demonstrates and stimulates the necessary respect of the internal control
structure among all parties.
The role of the Audit Committee is to assist the Board with discharging its responsibility to:
The Audit Committee met the external auditors twice to discuss and review :
(1) the financial statements of the Company and the consolidated accounts of the Group for the year ended 31 December
1999;
(2) the audit plan for year 2000, their evaluation of the system of internal accounting controls and the audit report;
(3) the assistance given by the Group’s officers to the external auditors;
(4) the nomination of the external auditors for their reappointment; and
(5) interested party transactions.
The Audit Committee is also charged with the responsibility of commissioning and reviewing the findings of internal investigations
into matters where there is any suspected fraud or irregularity or failure of internal controls of infringement of any Singapore
law, rule or regulation which has or is likely to have a material impact on the Group’s operations results and/or financial
position.
45
CORPORATE GOVERNANCE
COMPENSATION COMMITTEE
The Compensation Committee of the Board comprises Koh Boon Hwee, Sim Wong Hoo and Tan Lip-Bu, who are all non-
executive directors.
The Compensation Committee was created and mandated with the responsibility to oversee the general compensation of
employees of the Group with a goal to motivate, recruit and retain employees and directors through competitive compensation
and progressive policies, in particular, the Compensation Committee is responsible for approving and overseeing share
incentives, including the employee share option schemes. The Compensation Committee met 3 times in 2000.
EXECUTIVE COMMITTEE
The Executive Committee (EXCO) comprises Walter Sousa, Sim Wong Hoo, Koh Boon Hwee and Ng Ede Phang. The Chairman
of the EXCO is Walter Sousa.
The EXCO acts for the Board in supervising the management of the Group’s business and affairs within limits of authority
delegated by the Board.
The delegation of authority by the Board to the EXCO and other management personnel enables the Board to achieve operational
efficiency by empowering them to decide on matters within certain limits of authority and yet maintain control over major
policies and decisions of the Group.
Interested persons transactions carried out during the financial year by the Group pursuant to the approval given under the
Shareholders’ Mandate in accordance with Chapter 9A of the Listing Manual were as follows:
The Company has adopted a Code of Best Practices on securities transactions which contains the recommendations of the
Best Practices Guide in the Listing Manual. The Code sets out the prohibitions on dealing in the securities during “closed
periods” and the system of controls in monitoring dealings in the securities by directors and officers of the Company to
handle potential interests and insider trading situations in compliance with the Securities Industry Act and the disclosure
requirements of the Singapore Exchange Securities Trading Limited.
The Company directors and staff are prohibited from dealing in the Company’s shares at least 4 weeks before the announcement
of the Company’s full-year or half-year results or 3 days before the announcement of price-sensitive information. Directors
and key officers are expected not to deal in the Company’s Securities on short-term considerations. Besides directors, key
officers are required to notify the Company of their dealings within 2 days after transaction. All employees and directors of the
Company and its subsidiaries are required to observe the insider trading laws under the Securities Industry Act at all times.
46
STATISTICS OF SHAREHOLDINGS AS AT 16 APRIL 2001
Distribution of Shareholdings
Location of Shareholdings
Substantial Shareholders
47
MEDIARING.COM LTD
NOTICE IS HEREBY GIVEN that the Annual General Meeting of MediaRing.com Ltd (“the Company”) will be held at the Hullet
Room, The Westin Stamford & Westin Plaza, 2 Stamford Road, Singapore 178882 on Thursday, 31 May 2001 at 10.00 a.m for
the following purposes:
AS ORDINARY BUSINESS
1. To receive and adopt the Directors’ Report and Audited Accounts of the Company for the year ended 31 December
2000 together with the Auditors’ Report thereon. (Resolution 1)
2. To re-elect the following Directors retiring pursuant to Article 104 of the Company’s Articles of Association:
Mr Koh Boon Hwee will, upon re-election as Director of the Company, remain as member of the Audit Committee and
will be considered independent for the purposes of Clause 902(4)(a) of the Listing Manual of the Singapore Exchange
Securities Trading Limited.
Mr Tan Lip-Bu has indicated that he does not wish to seek for re-election and will retire at the close of this meeting.
3. To re-appoint Arthur Andersen as the Company’s Auditors and to authorise the Directors to fix their remuneration.
(Resolution 4)
4. To transact any other ordinary business which may properly be transacted at an Annual General Meeting.
AS SPECIAL BUSINESS
To consider and if thought fit, to pass the following resolutions as Ordinary Resolutions, with or without any modifications:
That pursuant to Section 161 of the Companies Act, Cap. 50 and Clause 941(3)(b) of the Listing Manual of the Singapore
Exchange Securities Trading Limited, the Directors be and are hereby empowered to allot and issue shares in the
Company at any time and upon such terms and conditions and for such purposes as the Directors may, in their
absolute discretion, deem fit provided that:-
i) the aggregate number of shares to be allotted and issued pursuant to this Resolution shall not exceed fifty per
centum (50%) of the issued share capital of the Company for the time being, and
ii) the aggregate number of shares to be issued other than on a pro-rata basis to existing members does not
exceed twenty per cent (20%) of the Company’s issued share capital for the time being.
Such authority shall continue in force until the conclusion of the next Annual General Meeting or the expiration of the
period within which the next General Meeting is required by law to be held, whichever is earlier, unless revoked or
varied by the Company. (Resolution 5)
6. Authority to grant options and issue shares under the 1999 MediaRing Employees’ Share Option Scheme
That pursuant to Section 161 of the Companies Act, Cap. 50, the Directors be and are hereby empowered to allot and
issue shares in the capital of the Company to the holders of options granted by the Company under the MediaRing
Enployees’ Share Option Scheme (“the Scheme”) established by the Company upon the exercise of such options and
in accordance with the terms and conditions of the Scheme provided always that the aggregate number of additional
ordinary shares to be allotted and issued pursuant to the Scheme shall not exceed 65,921,470 ordinary shares from
time to time. [See Explanatory Note (i)] (Resolution 6)
48
MEDIARING.COM LTD
7. Authority to grant options and issue shares under the 1999 MediaRing Employees’ Share Option Scheme II
That pursuant to Section 161 of the Companies Act, Cap. 50, the Directors be and are hereby empowered to allot and
issue shares in the capital of the Company to the holders of options granted by the Company under the MediaRing
Enployees’ Share Option Scheme II (“the Scheme II”) established by the Company upon the exercise of such options
and in accordance with the terms and conditions of the Scheme provided always that the aggregate number of
additional ordinary shares to be allotted and issued pursuant to the Scheme shall not exceed fifteen per centum (15%)
of the issued share capital of the Company from time to time. [See Explanatory Note (ii)] (Resolution 7)
That approval be and is hereby given for the purposes of Chapter 9A of the Listing Manual of the Singapore Exchange
Securities Trading Limited, for the Company, its subsidiaries and target associated companies or any of them to enter
into any of the transactions falling within the types of Interested Person Transactions particulars of which are set out
on pages 68 to 69 of the Company’s Prospectus dated 11 November 1999 (“Prospectus”) with the Interested Persons
described in the Prospectus and that such approval shall, unless revoked or varied by the Company in general meeting,
continue in force until the conclusion of the next Annual General Meeting. [See Explanatory Note (iii)] (Resolution 8)
That authority be given to the Directors to complete and do all such acts and things (including executing all such
documents as may be required) as they may consider necessary, desirable or expedient to give effect to Resolution 9
above as they may think fit. [See Explanatory Note (iv)] (Resolution 9)
Singapore
15 May 2001
49
MEDIARING.COM LTD
Explanatory Notes:
(i) The Ordinary Resolution 6 proposed in item 6 above, if passed, will empower the Directors of the Company, from the
date of the above Meeting until the next Annual General Meeting, to allot and issue shares in the Company up to a
maximum of 65,921,470 ordinary shares of the issued share capital of the Company for the time being pursuant to the
exercise of the options under the Scheme
(ii) The Ordinary Resolution 7 proposed in item 7 above, if passed, will empower the Directors of the Company, from the
date of the above Meeting until the next Annual General Meeting, to allot and issue shares in the Company of up to a
number not exceeding in total fifteen per centum (15%) of the issued share capital of the Company for the time being
pursuant to the exercise of the options under the Scheme.
(iii) The Ordinary Resolution 8 proposed in item 8(a) above, if passed, will authorise the Interested Person Transactions as
described in the Prospectus and recurring in the year. This authority will, unless previously revoked or varied by the
Company at a general meeting, expire at the conclusion of the next Annual General Meeting of the Company.
(iv) The Ordinary Resolution 9 proposed in item 8(b) above, if passed, will empower the Directors of the Company from the
date of the above meeting until the next Annual General Meeting of the Company to do all acts necessary to give effect
to the ordinary resolution proposed in item 8(a) above.
Notes:
1. A Member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote instead of him.
A proxy need not be a Member of the Company.
2. If the appointor is a corporation, the proxy must be executed under seal or the hand of its duly authorised officer or
attorney.
3. The instrument appointing a proxy must be deposited at the Registered Office of the Company at 10 Eunos Road 8,
#12-01/02 Singapore Post Centre, Singapore 408600 not less than forty-eight hours (48) hours before the time for
holding the meeting.
50
MEDIARING.COM LTD
(Incorporated in The Republic Of Singapore)
PROXY FORM
(Please see notes overleaf before completing this Form)
I/We,
of
of
of
or, failing him/her, the Chairman of the meeting as my/our proxy to vote for me/us on my/our behalf at the Annual General
Meeting of the Company to be held on 31 May 2001 at 10.00 a.m. and at any adjournment thereof. The proxy is to vote on the
business before the meeting as indicated below. If no specific direction as to voting is given, the proxy will vote or abstain
from voting at his/her discretion, as he/she will on any other matter arising at the Meeting:
1 Directors’ Report and Accounts for the year ended 31 December 2000
3 Re-election of Mr Tan Lip-Bu [Mr Tan Lip-Bu has indicated that he does not wish
to seek for re-election and will retire at the close of this meeting]
6 Authority to grant options and issue shares under the 1999 MediaRing
Employees’ Share Option Scheme
7 Authority to grant options and issue shares under the 1999 MediaRing
Employees’ Share Option Scheme II
Notes :
1. Please insert the total number of Shares held by you. If you have Shares entered against your name in the Depository Register (as defined in
Section 130A of the Companies Act, Chapter 50 of Singapore), you should insert that number of Shares. If you have Shares registered in your
name in the Register of Members, you should insert that number of Shares. If you have Shares entered against your name in the Depository
Register and Shares registered in your name in the Register of Members, you should insert the aggregate number of Shares entered against
your name in the Depository Register and registered in your name in the Register of Members. If no number is inserted, the instrument
appointing a proxy or proxies shall be deemed to relate to all the Shares held by you.
2. A member of the Company entitled to attend and vote at a meeting of the Company is entitled to appoint one or two proxies to attend and
vote instead of him.
3. Where a member appoints two proxies, the appointments shall be invalid unless he specifies the proportion of his shareholding (expressed
as a percentage of the whole) to be represented by each proxy.
4. The instrument appointing a proxy or proxies must be deposited at the registered office of the Company at 10 Eunos Road 8, #12-01/02
Singapore Post Centre, Singapore 408600 not less than 48 hours before the time appointed for the Annual General Meeting.
5. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney duly authorised in writing. Where the
instrument appointing a proxy or proxies is executed by a corporation, it must be executed either under its seal or under the hand of an officer
or attorney duly authorised.
6. A corporation which is a member may authorise by resolution of its directors or other governing body such person as it thinks fit to act as its
representative at the Annual General Meeting, in accordance with Section 179 of the Companies Act, Chapter 50 of Singapore.
General:
The Company shall be entitled to reject the instrument appointing a proxy or proxies if it is incomplete, improperly completed or illegible or where the true
intentions of the appointor are not ascertainable from the instructions of the appointor specified in the instrument appointing a proxy or proxies. In
addition, in the case of Shares entered in the Depository Register, the Company may reject any instrument appointing a proxy or proxies lodged if the
member, being the appointor, is not shown to have Shares entered against his name in the Depository Register as at 48 hours before the time appointed
for holding the Annual General Meeting, as certified by The Central Depository (Pte) Limited to the Company.
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