Asiaone 1-42

Notes to the Financial Statements
1. General
FINANCIAL STATEMENTS
The Company was incorporated on July 23, 1999 as a private limited company in Singapore,
under the name of SPH.com Pte Ltd. The Company changed its name on August 25, 1999 to
AsiaOne Internet Pte Ltd and on December 16, 1999 to SPH AsiaOne Pte Ltd. On February 8,
2000, the Company was converted into a public limited company and changed its name to
SPH AsiaOne Ltd.
The Company acquired the business of the Multimedia division of Singapore Press Holdings
Limited (“SPH”) under a Business Transfer Agreement dated November 25, 1999. The effective
date for the transfer of business was November 30, 1999.
The Company is a subsidiary of SPH. Related companies in these financial statements refer to
members of the group of companies controlled by SPH.
The principal activities of the Company are the operation of portal sites and the provision of
advertising, content and audiotex services.
There have been no significant changes in the nature of these activities during the period
covered by this report.
Ernst & Young has been the auditors of the Company since the date of incorporation of the
Company. No audited financial statements of the Company have been prepared for any period
subsequent to February 29, 2000.
2. Basis of preparation of the proforma financial statements
The objective of the Company’s proforma financial statements is to show what the historical
information might have been, had the Company been in existence from the beginning of the
period covered in this report. However, the proforma financial statements are not necessarily
indicative of the operations or the related effects on the financial position that would have been
attained if the Company actually existed at the beginning of the period covered in this report.
Prior to the incorporation of the Company, it operated as the Multimedia division of its holding
company, SPH. In the preparation of the proforma financial information, the financial statements
of the Multimedia division of SPH (prior to the transfer of business to the Company under the
Business Transfer Agreement effected November 30, 1999) were presented as if it had operated
as a separate legal entity since the beginning of the period covered in this report. As the
financial information of the Multimedia division and the other divisions of SPH were prepared
on an integrated basis, the management has applied various assumptions and estimations in
the segregation of the financial information of the Multimedia division.
The proforma financial statements for the period covered in this report have been prepared on
the following bases:
(a) Profit and loss accounts
(i) Revenue
The revenue for the period covered in this report was separately identified by means
of the relevant divisional coding within SPH’s accounting systems. To the best of the
knowledge and belief of the directors, there was no revenue-sharing between the
Multimedia division and other divisions of SPH.
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