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GROUP2000 1999NUMBER OF SHARES (’000)The weighted average number of ordinary shares is arrived at as follows:Issued ordinary shares at beginning of the year 2,838,689 2,826,089Weighted average number of ordinary shares issued during the year 7,470 7,895Weighted average number of ordinary shares 2,846,159 2,833,984DILUTED EARNINGS PER SHAREWhen calculating diluted earnings per share, the weightedaverage number of shares is adjusted for the effect ofall dilutive potential ordinary shares.The number of unissuedshares under option granted under the ST EnggShare Option Scheme and their exercise prices are setout in the Directors’ Report.The average fair value ofone ordinary share during financial year 2000 was $2.43(1999: $1.96) per share.The weighted average numberof ordinary shares adjusted for the unissued shares underoption is as follows:GROUP2000 1999NUMBER OF SHARES (’000)Weighted average number of ordinary shares (used in the calculation ofbasic earnings per share) 2,846,159 2,833,984Weighted average number of unissued shares under option 98,111 64,180Number of shares that would have been issued at fair value (66,873) (38,247)Weighted average number of ordinary shares (diluted) 2,877,397 2,859,91741. RELATED PARTY TRANSACTIONSIn addition to related party information disclosed elsewherein the financial statements, the Group and theCompany have significant transactions with relatedparties on terms agreed between the parties as follows:GROUPCOMPANY2000 1999 2000 1999$’000 $’000 $’000 $’000INCOMESales and services rendered 6,616 18,978 – –Management fees received from subsidiaries – – 15,202 11,792Other income – 5,344 – –EXPENSESPurchases and services received 44,499 33,671 402 –Management and administrative fees paid 6,693 4,333 6,693 4,333Fixed assets purchases 122 5,622 – –42. CASH AND CASH EQUIVALENTS43. COMMITMENTS(A) CAPITAL COMMITMENTS(B) LEASESFuture minimum lease payments under non-cancellableoperating leases are as follows:GROUP2000 1999$’000 $’000Cash and cash equivalents comprise the following:Fixed deposits with financial institutions 697,118 830,240Cash and bank balances 122,175 71,183Short-term investments 461 3,465Amounts under fund management 545,468 546,242Floating rate notes 609,846 402,789Short-term loans to related corporation 643,063 253,867Bank overdrafts (unsecured) (1,489) –2,616,642 2,107,786GROUP2000 1999$’000 $’000Capital expenditure contracted but not provided for in the financial statements 35,679 5,709GROUP2000 1999$’000 $’000Within 1 year 15,685 11,552Within 2 to 5 years 42,745 37,287After 5 years 388,090 113,328446,520 162,167The Group has an operating lease agreement for leaseholdland and building.The lease for the leasehold landand building does not contain renewal options orpurchase options.The lease does not contain escalationclauses and does not provide for contingent rents.Lease terms do not contain restrictions on the Groupactivities concerning dividends, additional debt orfurther leasing.170 • visionnotes to the financial statements • 171