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ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The amount due to SPH as at 31 August 1997, 1998 and 1999 and as at 30 November 1999 were
interest free cash advances we received from SPH for our working capital requirements. These
advances were unsecured and had no fixed term of repayment. As at 29 February 2000, we did not
have any borrowings from SPH.
For illustration purposes only, had these cash advances been from third parties or bank facilities at
an assumed interest rate of 5.0% per annum, we would have incurred interest expense and our
corresponding proforma profits/(losses) would have been as follows:-
Proforma Income Statement Data
6-month 6-month
Period Ended Period Ended
Financial Year Ended 31 August 28 February 29 February
($’000) 1997 1998 1999 1999 2000
Interest Expense 264 307 343 172 95
Net profit/(loss) (998) 400 (881) (869) (2,236)
The amount due from SPH as at 29 February 2000 pertained to trade debts collected by SPH on
our behalf. The amount due to other related company as at 29 February 2000 was for the rental of
our office premises from Singapore News & Publications Limited, a subsidiary of SPH.
In 1996, we were given a grant of up to $2.61 million for the funding of the development of AsiaOne
website into a one-stop information and service centre under the Innovation Development Scheme
of the Economic Development Board. The grant was for 50.0% of the actual cost incurred by us
during the qualifying period from 1 April 1996 to 31 December 1997.
In 1997, we were given a grant of up to $0.19 million from the National Computer Board for the
development of the SingaporeConnect under the Innovation Development Scheme of the Board. The
grant was for 50.0% of the actual cost incurred by us during the qualifying period from 1 September
1996 to 30 March 1998.
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