Anglo-Eastern Plantations

N N U A L   R E P O RT 20

0

2

A

C O N T E N T S

Financial Summary
1
Chairman’s Statement
2
Location of Estates
6
Estate Areas
7
Financial Record
8
Additional Information
9
Directors’ Report
11
Directors’ Responsibilities
Directors
14
Statement on Corporate Governance
15
Directors’ Remuneration Report
16
Auditors’ Report
18
Consolidated Profit and Loss Account ($)
19
Consolidated and Company Balance Sheet ($)
20
Recognised Gains and Losses ($)
Movement in Shareholders’ Funds ($)
Historical Cost Profits and Losses ($)
21
Consolidated Cash Flow Statement ($)
22
Notes to the Financial Statements ($)
23
Consolidated Profit and Loss Account (£)
35
Consolidated and Company Balance Sheet (£)
36
Consolidated Cash Flow Statement (£)
37
Notice of Meeting
38
Company Addresses
Company Advisers
40
Photographs
New oil mill - Puding Mas (pages 2-3)
Cocoa under coconuts - Rambung (page 4)
Family day - North Sumatra estates (page 5)
Rubber - Rambung (page 9)

Anglo-Eastern Plantations Plc, quoted on the London Stock Exchange,
operates and is developing plantations in Indonesia and Malaysia, amounting
to some 40,000 hectares producing palm oil, rubber and cocoa.

FINANCIAL SUMMARY

2002

2001

US$000

US$000

2002

£000

2001

£000

31,139

12,092

81,133

16.5cts

4.0cts

16,992

20,622

11,800

3,359

8,008

2,333

80,629

50,393

55,225

5.2cts

2.0cts

10.9p

2.58p

3.6p

1.40p

Turnover

Profit before tax

Shareholders’ funds (year end)

Earnings per share

Dividends per share

PROFIT BEFORE TAX: NET INTEREST PAID

EARNINGS: DIVIDENDS PER SHARE

16,000

14,000

12,000

10,000

0
0
0
$

'

8,000

6,000

4,000

2,000

0

Pre-tax profit
Interest Paid

EPS

Dividend

18

16

14

12

10

8

6

4

2

0

e
r
a
h
s

r
e
p

s
t
n
e
c

S
U

1997

1998

1999

2000 2001 2002

1997

1998

1999

2000

2001

2002

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1

 
 
 
C H A I R M A N ’ S   S TAT E M E N T

Iam pleased to report that in 2002 the

group achieved a turnover of $31.1 million

and profit before tax of $12.1 million. The
previous year’s turnover and profit were $17.0
million and $3.4 million respectively.

The increase reflects mainly a strong palm

oil price after three years of falling or weak
prices, but is also supported by increasing
production from our Bengkulu project which
is now coming to maturity and was the
principal contributor to a 16% increase in
group FFB production. There was also an
exchange gain of $0.8 million arising on our
long term borrowings compared to a loss of
$0.2 million in the previous year. Against
these positives there were significant increases
in operating costs following an industry wide
36% increase in wages and a reduction in fuel
subsidies in Indonesia from January 2002.
The results for 2001 included an exceptional
provision of $1.5 million against the value of

our Malaysian estates.

Earnings per share were 16.5 cts (10.9p)
compared to 5.2 cts (3.6p) in 2001. Group
net assets per share at the year end amounted
to 207 cts, largely unchanged from the
previous year because of exchange effects.

In line with its major capital expenditure
programme, the group completed draw down
of its long term development loan facilities
during 2002 bringing the total borrowings
outstanding to $10.1 million. Against this, the
group’s cash balances stood at $8.4 million at
the year end.

Commodity prices

The CPO price began to improve from
March 2002 after reaching a low of $215/mt
(cif Rotterdam) in May 2001, the lowest level
for 15 years. The average price for 2002 was
$400/mt, compared to $281/mt in 2001. At

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C H A I R M A N ’ S   S TAT E M E N T

the end of 2002 the price was $465/mt.

Prices for the other two crops produced by

the group also recorded strong increases in
2002. Average prices for rubber were around
27% higher and for cocoa, which reached a
15 year peak, 56% higher. These two crops
contributed about 6% of group profits in
2002.

Indonesia

FFB production from our main estate,
Tasik, and from Anak Tasik in North Sumatra,
was 149,000 mt, down 3,000 mt from the
previous year. Although this was the second
consecutive year of decline in output, the
cause was probably due more to weather
factors rather than reflecting the age of the
plantings.

By contrast, FFB crops from our three
smaller estates around Medan registered an

increase of 22% to an all time record of
51,000 mt. Cocoa and rubber crops at these
estates also improved.

New planting in Bengkulu was scaled

down to 350 ha in 2002 while we 
concentrated on improving infrastructure and
consolidating the areas already planted. Total
area planted there now is 9,600 ha, of which
2,100 ha are still immature. FFB production
at Bengkulu was 62,000 mt compared to
30,000 mt in 2001.

The 40mt/hr mill in Bengkulu, pictured

below, was commissioned on schedule in
April 2002. In the eight months of its
operation, the mill was able to run at a
satisfactory throughput as a result of
processing bought-in crop of 28,000 mt as
well as 52,000 mt of our own. However, this
high proportion of bought-in crop affected
the extraction rate. It is planned that the mill
will be expanded to a capacity of 60mt/hr in

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C H A I R M A N ’ S   S TAT E M E N T

2004/5 which will allow us to handle all the
crops from Bengkulu for the next five years.
Definitive land titles were finally obtained

over all the Bengkulu areas which we have
planted, or will plant, in the next three or
four years. The terms are described in note
10 to the accounts. We have rights over
another 5,000 ha of vacant land and will
apply for the relevant papers in the light of
prevalent conditions at the appropriate time.
I am pleased to report that the Indonesian

operations continue to operate with no
unusual interruption. Our local management
and staff continue to pay particular attention
to good relations with local authorities and
local residents.

Malaysia

Our Malaysian estates experienced an
exceptionally dry spell in early 2002 which
affected production. Although the FFB crop
of 32,000 mt was an improvement of 11%
over the previous year, it was below our
expectations.

At present prices, the estates are just self-

funding, including loan repayments. The
operation made a loss, at the pre-tax level, of
$190,000 in 2002 compared to a loss of
$490,000 in the previous year. However, low
yields remain a concern. We have recently
strengthened local management and hope that
new approaches to field husbandry, in what is
hilly terrain, will accelerate the move to
profitability.

Directors

Mr Wee Sin Tho, who was instrumental in
the acquisition by my family of its holding in
Anglo-Eastern in 1993, has decided not to
seek re-election at the forthcoming annual

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C H A I R M A N ’ S   S TAT E M E N T

general meeting. We are grateful to him for
his help and advice over the time he has been
with us.

Outlook and dividend

Group crops for the first three months of
2003 have been above expectations and are
35% ahead of same period in 2002. However,
it is difficult to predict whether this
improvement will continue for the rest of the
year.

The CPO price settled at $450/mt in
January and February but has since fallen to
$405/mt. Rubber and cocoa prices are
around 15% better than last year’s averages
and our production is at a similar level to that
of the same period in 2002. Competition for
bought-in crop at Bengkulu and Tasik is
expected to increase with new mill capacities
coming on stream near both locations, so

contribution from this source is expected to
be lower in the current year.

The group’s cash position has continued to
improve but significant capital expenditure in
Bengkulu remains and repayment of our long
term loans commenced this year. In addition,
we are considering building a small oil mill
for our Medan estates which is expected to
cost nearly $3 million.

If CPO prices average about $400/mt, the

group can expect an improved profit for
2003.

Having regard to the satisfactory results
and to the increasing production from the
Bengkulu estates, the board is proposing to
double the dividend in respect of 2002 to 
4.0 cts per share.

CHAN TEIK HUAT
Chairman

9 April 2003

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5

E S TAT E  A R E A S

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A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

7

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N

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
F I N A N C I A L   R E C O R D

Profit and Loss Account

Turnover
Operating profit

Net interest 

- (paid)/received
- capitalised

Profit before tax

Taxation
Minority interests

Profit attributable to shareholders

Dividends

2002

$000

31,139
12,767
(895)
220

12,092
(4,367)
(1,250)

6,475
(1,571)

2001

$000

16,992
3,369
(320)
310

3,359
(1,638)
320

2,041
(785)

2000

$000

17,562
6,560
27
56

6,643
(3,147)
(522)

2,974
(588)

1999

$000

19,636
8,954
277
-

9,231
(3,399)
(984)

4,848
(1,569)

1998

$000

14,944 
9,421
245 
-

9,666
(3,170)
(1,042)

5,454 
(2,746)

Retained profit

4,904

1,256

2,386

3,279

2,708 

Balance Sheet

Fixed assets
Cash net of short term borrowings
Long term loans
Other working capital and deferred tax

$000
103,558
6,376
(8,085)
(3,339)

$000
104,333
2,149
(6,460)
(1,594)

$000
97,556
1,660
(1,412)
(2,910)

$000
95,284
2,709
-
(4,344)

$000
87,587 
6,943 
-
(5,614)

98,510

98,428

94,894

93,649

88,916

Minority interests

(17,377)

(17,799)

(17,993)

(19,073)

(17,896) 

Net worth

81,133

80,629

76,901

74,576

71,020

Share capital
Share premium and capital redemption account
Revaluation and exchange reserve
Profit and loss account

15,171
24,657
6,586
34,719

15,171
24,657
10,986
29,815

15,171
24,657
8,514
28,559

15,171
24,657
8,575
26,173

15,480 
24,348 
6,290
24,902 

Shareholders’ funds

81,133

80,629

76,901

74,576

71,020

Ordinary shares  in issue (‘000s)
Earnings per share (US cents)
Dividends per share (US cents)
Asset value per share (US cents)
Earnings per share (pence equivalent)
Dividends per share (pence equivalent)
Asset value per share (pence equivalent)
Borrowings net of cash: shareholders’ funds (%)

39,227
16.5cts
4.0cts
207cts
10.9p
2.58p
128p
2%

39,227
5.2cts
2.0cts
206cts
3.6p
1.40p
141p
5%

39,227
7.6cts
1.50cts
196cts
5.0p
1.04p
132p
-

39,227
12.3cts
4.00cts
190cts
7.6p
2.56p
118p
-

40,027 
13.3cts
7.00cts
177cts
8.0p
4.34p
106p
-

Relevant exchange rates shown on page 9.

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A D D I T I O N A L   I N F O R M AT I O N

Crops
FFB - all estates

- bought in or processed for third parties

Saleable Crude Palm Oil (CPO)
Rubber
Cocoa

Sales
CPO - Tasik 
FFB - other estates
Rubber
Cocoa

Average Sales Prices - Indonesia
CPO (after export tax)
Rubber
Cocoa
FFB

Average Sales Prices - Malaysia
FFB

Exchange Rates - Year End
Rp : $
$  : £
RM: $

Exchange Rates - Average
Rp : $
$  : £
RM: $

2002
Tonnes

294,062
99,029
63,240
1,491
193

63,042
93,929
1,508
170

Rp/kg
3,113
6,698
15,214
617

2001
Tonnes

252,632
74,789
52,073
1,376
120

52,072
61,458
1,351
127

Rp/kg
2,271
5,254
9,712
380

2000
Tonnes

253,094
38,730
52,297
1,253
131

53,169
54,114
1,251
134

Rp/kg
2,026
5,206
6,029
358

1999
Tonnes

206,725
36,730
42,941
1,595
182

44,619
31,887
1,595
175

Rp/kg
2,295
5,037
7,791
491

1998
Tonnes

176,546
42,750
31,224
1,621
206

29,012
26,486
1,621
162

Rp/kg
3,166
6,941
15,787
668

RM/mt
242

RM/mt
152

RM/mt
158

RM/mt
243

RM/mt
424

8,940
1.61
3.80

9,253
1.51
3.80

10,400
1.46
3.80

10,270
1.44
3.80

9,595
1.49
3.80

8,510
1.51
3.80

7,100
1.61
3.80

7,795
1.61
3.80

8,025
1.67
3.80

9,935
1.66
3.89

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A D D I T I O N A L   I N F O R M AT I O N

FFB PRODUCTION

RUBBER AND COCOA PRODUCTION

Estate

Outside

1997

1998

1999

2000

2001

2002

PALM OIL - PRICE *
(Rotterdam)

350000

300000

250000

s
e
n
n
o
T

200000

150000

100000

50000

0

800

700

600

500

400

300

200

100

0

e
n
n
o
t
/
$

1800

1600

1400

1200

1000

800

600

400

200

0

3000

2500

2000

1500

1000

500

0

s
e
n
n
o
T

e
n
n
o
t
/
$

Rubber
Cocoa

1997

1998

1999

2000

2001

2002

RUBBER AND COCOA PRICES *

Cocoa
Rubber

1997

1998

1999

2000

2001

2002

1997

1998

1999

2000

2001

2002

PLANTED AREAS - HECTARES

Rubber
(843 ha - 3.5%)

Cocoa
(258 ha - 1.1%)

Oil palm - Immature 
(3,389 ha - 14.2%)

Oil palm - mature
(19,335 ha - 81.2%)

* = Source: Thomson Financial Datastream

140

120

100

80

60

40

20

0

e
r
a
h
s

r
e
p

e
c
n
e
P

ANGLO-EASTERN SHARE PRICE
(Month opening)

1997

1998

1999

2000

2001

2002

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

10

 
 
D I R E C TO R S ’ R E P O RT

The directors present their annual report on the

therefore resign on that date. In accordance with

affairs of the group, together with the financial

the Articles of Association, Mr P E  O'Connor

statements and auditors' report, for the year ended

and Datuk H  Chin Poy-Wu will retire by

31 December 2002.

rotation and offer themselves for re-election at the

forthcoming annual general meeting.

Principal Activity

The company acts as a holding company and co-

Directors' interests

ordinates the businesses of its subsidiaries. At 31

The beneficial interests of the directors together

December 2002 these comprised principally the

with those of their immediate families in the

cultivation of oil palm, rubber and cocoa in

securities of the company were as shown below:

Indonesia and Malaysia.

The subsidiary undertakings principally

affecting the profits or net assets of the group in

the year are listed in note 26 to the financial

statements.

Results and Dividends

The audited financial statements for the year

Directors’ beneficial 
interests at 31 December

R O B Barnes
T H Chan
Datuk Chin
Dato Haron
S C Ho
S K Lim
P E O’Connor
S T Wee

2002
Ordinary
shares
3,602
345,500
-
-
340,000
20,917,914
300,000
-

2001
Ordinary
shares
3,602
345,500
-
249,000
400,000
20,917,914
300,000
-

ended 31 December 2002 are set out on pages 19

Until November 2002 Mr S T Wee was general

to 37. The group profit for the year on ordinary

manager of SouthQuay Global Markets Ltd,

activities before taxation was $12,092,000 (2001 -

which owned 244,117 shares at 31 December

$3,359,000) and the profit attributable to ordinary

2001 and 2002 but sold its entire interest in

shareholders was $6,475,000 (2001 - $2,041,000).

February 2003. Mr Wee has no beneficial interests.

No interim dividend was paid.The directors

The interests disclosed for Madam S K  Lim

recommend a final dividend of 4.00 cts (2001 –

are held by Genton International Ltd and certain

2.00cts) to be paid on 18 June 2003 to

other companies of which Madam Lim is the

shareholders on the register on 23 May 2003.

controlling shareholder.

Shareholders who elect to receive their dividend

Between 31 December 2002 and the date of

in sterling as described on page 12 will receive a

this report, Mr T H Chan disposed of 245,500

dividend of 2.58p (2001 – 1.40p).

shares.

Fixed Assets

financial statements no director had a material

Information relating to changes in tangible fixed

interest in any contract of the company subsisting

assets is given in note 10 to the financial

during, or at the end of, the financial year.

Other than as set out in note 18 to the

statements.

Substantial Share Interests

Directors

As at 9 April 2003 the following were the interests

A full list of directors appears on page 14.

in excess of 3% of the issued ordinary share capital:

All the directors served throughout the year.

Mr S T Wee will not seek re-election at the

forthcoming annual general meeting and will

Name of holder
Genton International Limited
Alcatel Bell Pension Fund
S N Roditi

Number
20,176,414
5,000,000
2,116,900

Percentage held
51.4%
12.7%
5.4%

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

11

D I R E C TO R S ’ R E P O RT

Power to Issue Share Capital

The board will only make purchases if they

At the annual general meeting held on 13 June

believe the earnings or net assets per share of the

2002 shareholders authorised the board under the

company would be improved by such purchases.

provisions of section 80 of the Companies Act

All such purchases will be market purchases made

1985 to allot relevant securities within specified

through the London Stock Exchange and will be

limits for a period of five years. Renewal of this

subject to the Financial Services Authority model

authority on similar terms is being sought under

code of dealings. Any shares purchased by the

Resolution 6 at the forthcoming annual general

company will be cancelled and the number of

meeting. Such authority will be limited to the

shares in issue will accordingly be reduced.

unissued authorised share capital.

Resolution 8 to be proposed at the

A fresh authority is also being sought under

forthcoming annual general meeting seeks

the provisions of section 95 of the Companies Act

renewed authority to purchase up to a maximum

1985 to enable the board to make an issue to

of 3,927,492 ordinary shares of 25p each on the

existing shareholders without being obliged to

London Stock Exchange, representing 10% of the

comply with certain technical requirements of the

company's issued ordinary share capital. The

Companies Act, which create problems with

maximum price which may be paid for ordinary

regard to fraction entitlements and to overseas

shares on any exercise of the authority will be

shareholders. In addition the authority will give

restricted to 5% above the average middle market

the board power to make issues of shares for cash

quotations for such shares as derived from the

to other than existing shareholders up to a

London Stock Exchange Daily Official List for

maximum nominal amount of £490,936

the 5 business days before the purchase is made.

representing 5% of the current issued share capital.

The section 95 authority will last for up to 15

Payment of Dividends

months from the date of the annual general

The group reporting currency is US dollars.

meeting.

However at the time of acquiring their interest

shareholders can choose to receive dividends in

Scrip Dividends

US dollars or in sterling. In the absence of any

Resolution 7 to be proposed at the annual general

specific instruction up to the date of closing the

meeting seeks renewal for a further five years of

register, shareholders with addresses in the UK are

the authority under which the directors are able

deemed to have elected to receive their dividends

to offer shareholders a scrip dividend alternative.

in sterling and those with addresses outside the

No scrip alternative is being offered in respect of

UK in US dollars.

the 2002 final dividend.

The sterling equivalent dividend will be paid

at the exchange rate ruling at the date of the

Acquisition of the Company's Own Shares

preliminary announcement of the company’s

and Authority to Purchase Own Shares

results and in the case of the current year is

At 9 April 2003, the directors had remaining

recorded within the section "Results and

authority, under the shareholders' resolution of 13

Dividends" on page 11.

June 2002, to make purchases of 3,922,692 of the

company's ordinary shares. This authority expires

Supplier Payment Policy

on 10 June 2003.

It is the group’s policy to pay suppliers promptly

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

12

D I R E C TO R S ’ R E P O RT

in accordance with agreed terms of payment. Year

end trade creditor days were about 30 (2001 –

30).

Liability Insurance for Company Officers

As permitted by the Companies Act 1985 the

company has maintained insurance cover for the

directors against liabilities in relation to the

company.

Political and Charitable Donations

None (2001: none).

Income and Corporation Taxes Act 1988

In the opinion of the directors, the company is

not a close company within the meaning of the

above Act.

By order of the board

R O B Barnes

Secretary

9 April 2003

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

13

D I R E C TO R S ’ R E S P O N S I B I L I T I E S

Company law requires the directors to prepare
financial statements for each financial year which
give a true and fair view of the state of affairs of
the company and group and of the profit or loss
of the group for that period.

After making enquiries, the directors have a
reasonable expectation that the company and the
group have adequate resources to continue
operations for the foreseeable future. For this
reason, they continue to adopt the going concern
basis in preparing the financial statements.

In preparing those financial statements, the

directors are required to:
-

select suitable accounting policies and then 
apply them consistently;

- make judgements and estimates that are 

reasonable and prudent;

-

-

state whether applicable accounting 
standards have been followed, subject to 
any material departures disclosed and 
explained in the financial statements;
prepare the financial statements on the going 
concern basis unless it is inappropriate to 
presume that the group will continue in business.
The directors are responsible for keeping

proper accounting records which disclose with
reasonable accuracy at any time the financial
position of the company and group and to enable
them to ensure that the financial statements
comply with the Companies Act 1985. They are
also responsible for safeguarding the assets of the
company and the group and hence for taking
reasonable steps for the prevention and detection
of fraud and other irregularities.

D I R E C TO R S

T H Chan (Chairman and CEO, aged 63)
Chartered Accountant; managing director of
Metroplex Berhad, an investment holding
company, listed on the Kuala Lumpur Stock
Exchange, primarily engaged in property
development, investment property, hotel
ownership, building materials, leisure and 
gaming; founder and managing partner of a
leading accounting firm in Malaysia for some 17
years.

R O B Barnes (Chief financial officer, aged 58)
Chartered Accountant; director of The Chillington
Corporation Plc from 1986 to 1989.

Dato Haron bin Dato Mohd Salleh
(Managing director, Anglo-Eastern Plantations (M)
Sdn Bhd, aged 59)  
Vice Admiral Royal Malaysian Navy, now retired.
Chief of Staff Malaysian Armed Forces HQ 1994
- 1996.

Madam S K Lim (Non-executive, aged 54)
Executive chairman of Metroplex Berhad.

S T Wee (Independent non-executive, aged 54)
Consultant.

P E O'Connor (Senior independent non-
executive, aged 62)
Chairman of City Merchants High Yield Trust Plc
and of Advance Developing Markets Plc; director
of AMR Technologies Inc and of IMS Investment
Manager Selection Limited; director of GT
Management Plc 1975 to 1990 (in London and
Hong Kong).

S C Ho (Independent non-executive, chairman
of audit committee, aged 53)
Executive director of Nexgen Financial Solutions
(Asia) Ltd, a financial services firm.

Datuk H Chin Poy-Wu (Independent non-
executive, chairman of remuneration committee,
aged 66)
Chairman of Hap Sang Consolidated, director of
Glenealy Plantations Berhad, Bhd and Sabah
Forest Industries Sdn Bhd. Commissioner of
Police - Kuala Lumpur, retired 1993.

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

14

S TAT E M E N T   O N   C O R P O R AT E   G OV E R N A N C E

In June 1998 the Stock Exchange published the
Principles of Good Governance and Code of Best
Practice (the "Combined Code"). During 2002
the company has complied with the majority of
the requirements of the Combined Code.

Where the requirements were not met during

2002, particular comment is made in the
statements below and in the Directors’
Remuneration Report on page 16.

The Board
Mr T H Chan has been both chairman and chief
executive since 1998. Together with his wife,
Madam S K Lim, he is a controlling shareholder
of the company. In the opinion of the board,
given the size of his family's commitment to the
company, his common interest as shareholder and
manager in the company make it reasonable that
the post of chairman and chief executive are
combined. The other members of the board are
satisfied that through the specific powers reserved
for the board, and given the presence of four
wholly independent non-executives, there is a
reasonable balance of influence.

Mr P E O’Connor has been senior non-

executive director since January 1999.

Non-executives are not appointed for

specified terms. There have been changes in non-
executive directors at intervals in the past for a
variety of reasons. While accepting the need to
maintain the vitality of the board the directors do
not intend to specify terms of office for non-
executives. However, the board will review the
position of each director at the time set for his
normal two to three yearly reappointment under
the Articles.

New directors have not received formal
training on the occasion of their appointment to
the board as all have previous experience of public
company directorships.

Remuneration

The required report is set out at the end of this
statement.

Relations with Shareholders
Company executives attempt to contact principal
shareholders at least twice a year and at all times
are pleased to speak to and meet any shareholder.
A member of the audit and remuneration

committees will be available at the 2003 annual
general meeting.

Accountability and Audit
The responsibilities of the directors as regards the
financial statements are set out on page 14. A
statement of going concern is also on page 14.

The audit committee comprises Mr S C Ho,
Mr P E O'Connor and Datuk H Chin Poy-Wu.
The committee met prior to the completion of
the 2002 accounts, and three times during the year.

Internal Control
The company has followed the Combined Code
provisions and Turnbull Committee guidance on
internal control since 1999. The board has overall
responsibility for the group’s internal control and
risk management; the audit committee reviews
and monitors specific risks and internal control
procedures and reports to the board where
appropriate. Executive staff and directors are
responsible for implementation of control
procedures and for identifying and managing
business risks. The audit committee review is a
continuous but sequential process and in any one
year does not necessarily cover all risks which are
significant to the group. The process aims to
provide reasonable assurance against material
misstatement or loss.

The board receives regular reports from
executive management in Indonesia and Malaysia
and focuses at each meeting on the principal
continuing risks to which the group is exposed.
These comprise: commodity price movements,
exchange rate movements, political and social
change and government legislation.

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

15

D I R E C TO R S ’ R E M U N E R AT I O N   R E P O RT

This report by the remuneration committee has

Share options

been approved by the board of directors for

Options are granted to senior executives and

submission to shareholders for their approval at

managers throughout the group. Policy is

the forthcoming annual general meeting.

generally to phase the grant over three years.

Membership

seniority and total market value at date of grant is

The remuneration committee comprised

limited to four times base salary. Exercise of

throughout the year Mr S C  Ho and Mr P E

options is only permitted three years after grant

O'Connor and was chaired by Datuk H Chin

and there are no performance criteria for exercise.

The total grant to each holder is determined by

Poy-Wu.

Policy

Pensions

The remuneration committee makes

There is no company pension scheme for

recommendations on senior management pay and

executive directors or senior executives and

conditions, after consultation with the chief

management. In the case of one executive

executive, and recommends to the board the terms

director, Mr Barnes, the company makes

of executive directors.

contributions based on base salary only to a

Non-executive directors' remuneration is

personal money purchase scheme. Senior

considered by the board as a whole.

executives who leave voluntarily after more than

The committee recommends remuneration

five years' service are entitled to a leaving payment

terms by reference to individual performance,

of one month's base salary for each year of service.

market conditions, the company's performance

and the need to maintain an economic operation.

Service contracts

The committee is also charged with overseeing

Other than Mr Barnes, as a matter of policy no

the company's share option scheme.

director has either a service contract or notice

Components

in May 2004; in the event that this contract is not

period. Mr Barnes has a contract which expires

Base salary

renewed in certain circumstances Mr Barnes

Base salaries are reviewed on an annual basis by

would be entitled to one year's termination

the remuneration committee or when an

payment. Notice periods for all other senior

individual changes responsibilities. Non-executive

management are generally three months.

directors receive no benefits other than a 
fixed fee.

Bonus

Performance graph

The graph at the top of the next page shows the

company's performance, measured by capital

The group operates a bonus scheme for senior

return, compared to the Kuala Lumpur Stock

executives and managers which is generally

Exchange (KLSE) Plantation Index for the period

determined by physical and operating cost

27 February 1998 to 28 February 2003. This is

performance criteria. Annual bonuses for senior

the only relevant index available in terms of sector

executives and managers are capped at 66% of
base salary. Executive directors receive a bonus

but many Malaysian plantation companies are
diversified as well as not holding as great a

which has ranged from 25% to zero in past years,

proportion of their assets in Indonesia as Anglo-

at the discretion of the board.

Eastern.

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

16

D I R E C TO R S ’ R E M U N E R AT I O N   R E P O RT

Anglo-Eastern Plantations

Malaysia KLSE/Plantation 

Directors' share options

Share options granted to the directors of the

company under the company's 1994 Executive

Share Option Scheme and Overseas Share Option

Scheme at 31 December 2002 were:

Name of
Director

R O B  Barnes

T H Chan

No of
ordinary
shares under
option
31,412
14,338
250,000
40,800
30,600

Date of 
Grant

Exercise
price

Exercise
period

5.11.94
24.5.96
25.10.99
25.10.99
16.10.00

93.2p
124p
47p
47p
37p

5.11.97-4.11.04
24.5.99-23.5.06
25.10.02-24.10.09
25.10.02-24.10.09
16.10.03-24.10.10

1998

1999

2000

2001

2002

The market price of shares at 31 December 2002

was 91.5p and the range during 2002 was 36.5p

70

60

50

40

30

20

10

0

-10

-20

-30

-40

-50

-60

h
t
w
o
r
G
e
g
a
t
n
e
c
r
e
P

In determining senior management compensation,

to 95.5p.

the remuneration committee is influenced by the

operating performance of the company and not

directly by the share price.

Directors' remuneration

The remuneration of all directors who served during the year was:

Name of director

Fees
$000

Executive
salary
$000

Bonus
(re 2001)
$000

Benefits 
in kind
$000

Total
2002
$000

Executive:
T H Chan (Chairman and CEO)
R O B Barnes 
Dato Haron
Non-executive:
S K Lim 
Datuk H Chin
S C Ho
P E O’Connor
S T Wee

2002

2001

-
-
12

12
12
12
12
12

72

72

60
130
33

-
-
-
-
-

223

210

-
11
1

-
-
-
-
-

12

10

60
149
52

12
12
12
12
12

321

-
8
6

-
-
-
-
-

14

10

Total
2001
$000

59
135
48

12
12
12
12
12

302

Pension contribution
2001
$000

2002
$000

-
22
-

-
-
-
-
-

22

-
23
-

-
-
-
-
-

23

The  executive  salary  and  other  benefits  of  Dato  Haron  are  paid  by  a  third  party  company  with  whom  he  has  an
employment contract. Since his entire salary is charged to the group it has been decided his remuneration should be
included in the table above for the year ended 31 December 2002. The comparative for the year ended 31 December
2001 has been amended accordingly.

The disclosures on this page on share options and directors’ remuneration have been audited, as required by Part 3 of
Schedule 7A of the Companies Act 1985.
Graph source : Lipper Hindsight

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

17

 
AU D I TO R S ’ R E P O RT

Independent auditors' report to the shareholders of Anglo-Eastern Plantations Plc
We have audited the financial statements of Anglo-Eastern Plantations Plc for the year ended 31 December 2002 on pages 19
to 37 which have been prepared under the accounting policies set out on pages 23 and 24. We have also audited the information
in the Directors' Remuneration Report that is described as having been audited.

Respective responsibilities of directors and auditors
The directors' responsibilities for preparing the Annual Report, the Directors' Remuneration Report and the financial statements
in  accordance  with  applicable  law  and  United  Kingdom  Accounting  Standards  are  set  out  in  the  Statement  of  Directors'
Responsibilities.

Our responsibility is to audit the financial statements and the parts of the Directors' Remuneration Report to be audited in
accordance with relevant legal and regulatory requirements, United Kingdom Auditing Standards and the Listing Rules of the
Financial Services Authority.

We  report  to  you  our  opinion  as  to  whether  the  financial  statements  give  a  true  and  fair  view  and  whether  the  financial
statements and the part of the Directors' Remuneration Report to be audited have been properly prepared in accordance with
the Companies Act 1985. We also report to you if, in our opinion, the Directors' Report is not consistent with the financial
statements, if the company has not kept proper accounting records, if we have not received all the information and explanations
we  require  for  our  audit, or  if  information  specified  by  law  or  the  Listing  Rules  regarding  directors'  remuneration  and
transactions with the group is not disclosed.

We  review  whether  the  Corporate  Governance  Statement  reflects  the  group's  compliance  with  the  seven  provisions  of  the
Combined Code specified for our review by the Listing Rules, and we report if it does not. We are not required to consider
whether the board's statement on internal control covers all risks and controls, or form an opinion on the effectiveness of the
group's corporate governance procedures or its risk and control procedures.

We  read  other  information  contained  in  the Annual  Report  and  consider  whether  it  is  consistent  with  the  audited  financial
statements. This other information comprises only the Financial Summary, Chairman's Statement, Location of Estates, Estate
Areas, Financial Record,Additional Information, Directors' Report, the unaudited parts of the Directors' Remuneration Report
and the Statement on Corporate Governance. We consider the implications for our report if we become aware of any apparent
misstatements  or  material  inconsistencies  with  the  financial  statements. Our  responsibilities  do  not  extend  to  any  other
information.

Our report has been prepared pursuant to the requirements of the Companies Act 1985 and for no other purpose. No person
is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose
of the Companies Act 1985 or has been expressly authorised to do so by our prior written consent. Save as above, we do not
accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all
such liability.

Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An
audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and
the part of the Directors' Remuneration Report to be audited. It also includes an assessment of the significant estimates and
judgements  made  by  the  directors  in  the  preparation  of  the  financial  statements, and  of  whether  the  accounting  policies  are
appropriate to the company's circumstances consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in
order  to  provide  us  with  sufficient  evidence  to  give  reasonable  assurance  that  the  financial  statements  and  the  part  of  the
Directors' Remuneration Report to be audited are free from material misstatement, whether caused by fraud or other irregularity
or  error. In  forming  our  opinion  we  also  evaluated  the  overall  adequacy  of  the  presentation  of  information  in  the  financial
statements.

Fundamental uncertainty
In  forming  our  opinion  we  have  considered  the  adequacy  of  the  disclosures  made  in  note  25  to  the  financial  statements
concerning political change in Indonesia where most of the group’s activities are based.

In view of the significance of this uncertainty we consider that it should be drawn to your attention but our opinion is not
qualified in this respect.

Opinion
In our opinion:
• the financial statements give a true and fair view of the state of the group's and the company's affairs as at 31 December 2002

and of the group's profit for the year then ended; and

• the financial statements and the part of the Directors' Remuneration Report to be audited have been properly prepared in

accordance with the Companies Act 1985.

10 April 2003

BDO Stoy Hayward
Chartered Accountants and Registered Auditors
8 Baker Street
London W1U 3LL

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

18

C O N S O L I DAT E D   P RO F I T  A N D   L O S S  AC C O U N T

FOR THE YEAR ENDED 31 DECEMBER 2002

Turnover - continuing operations

Cost of sales

Gross profit - continuing operations

Administration and other expenses

Operating profit - continuing operations

Interest

-  receivable

-  payable

Profit on ordinary activities before taxation

Tax on profit on ordinary activities

Profit on ordinary activities after taxation

Minority interests (all equity interests)

Profit for the financial year

Dividends proposed 

Retained profit for the year

Earnings per ordinary share (basic and diluted)

-  basic

-  diluted

Notes

2

3

4

5

2

7

19

8

19

9

9

2002
US$000

31,139

2001
US$000

16,992

(17,475)

(10,334)

13,664

(897)

6,658

(3,289)

12,767

3,369

50

(725)

12,092

(4,367)

7,725

(1,250)

6,475

(1,571)

4,904

16.5cts

16.4cts

48

(58)

3,359

(1,638)

1,721

320

2,041

(785)

1,256

5.2cts

5.2cts

The accompanying notes are an integral part of this consolidated profit and loss account.

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

19

C O N S O L I DAT E D  A N D   C O M PA N Y   B A L A N C E   S H E E T S

31 DECEMBER 2002

Fixed Assets

Tangible assets

Investments in subsidiary undertakings

Current Assets

Stocks

Debtors

Investments

Cash at bank and in hand

Current Liabilities

Creditors: falling due within one year

Borrowings

Other creditors

Net current assets/(liabilities)

Total assets less current liabilities

Non-current Assets/Liabilities

(Creditors)/assets: due after more than one year

Borrowings

Deferred taxation

Net assets

Capital and Reserves

Called-up share capital

Share premium account

Share capital redemption reserve

Revaluation and exchange reserve

Profit and loss account

Consolidated

Company

Notes

2002
US$000

2001
US$000

2002
US$000

10

26

11

12

13,24

24

15,24

14

103,558

104,333

-

-

103,558

104,333

928

2,001

234

8,416

11,579

(2,040)

(7,717)

(9,757)

1,822

600

1,916

266

2,248

5,030

(99)

(5,266)

(5,365)

(335)

-

45,425

45,425

-

31

234

1,335

1,600

-

(1,702)

(1,702)

(102)

2001
US$000
(restated)

-

43,115

43,115

-

26

266

1,202

1,494

-

(862)

(862)

632

105,380

103,998

45,323

43,747

15,24

16

(8,085)

1,215

98,510

(6,460)

890

-

-

-

-

98,428

45,323

43,747

17

19

19

19

19

15,171

23,570

1,087

6,586

34,719

81,133

17,377

15,171

23,570

1,087

10,986

29,815

80,629

17,799

15,171

23,570

1,087

3,872

1,623

15,171

23,570

1,087

3,872

47

45,323

43,747

-

-

Shareholders’ funds - all equity interests

Minority interests - all equity interests

19,27

Total capital employed

98,510

98,428

45,323

43,747

The financial statements were approved by the board of directors on 9 April 2003 and were signed on its behalf by

R O B  Barnes.

The accompanying notes are an integral part of these balance sheets.

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R E C O G N I S E D   G A I N S  A N D   L O S S E S
R E C O N C I L I AT I O N   O F   M OV E M E N T S   I N   S H A R E H O L D E R S ’ F U N D S
H I S TO R I C A L   C O S T   P RO F I T S  A N D   L O S S E S

FOR THE YEAR ENDED 31 DECEMBER 2002

Statement of Total Recognised Gains and Losses

Profit for the financial year

Unrealised (deficit)/surplus on revaluation of the estates

Profit/(loss) on exchange translation

Consolidated

Company

2002
US$000

6,475

(15,375)

10,975

2001
US$000

2,041

7,292

(4,820)

2002
US$000

3,147

-

-

2001
US$000

740

-

-

Total recognised gains relating to the year

2,075

4,513

3,147

740

Reconciliation of Movements in Shareholders’ Funds

Total recognised gains

Dividends

Net increase/(decrease) in shareholders’ funds

Beginning of year

End of year

2,075

(1,571)

504

80,629

4,513

3,147

(785)

(1,571)

3,728

76,901

1,576

43,747

740

(785)

(45)

43,792

81,133

80,629

45,323

43,747

Historical Cost Profits and Losses

Reported profit on ordinary activities before taxation

12,092

3,359

3,172

818

Difference between historical cost depreciation charge 

and the actual depreciation charge for the year

(692)

(800)

-

Historical cost profit on ordinary activities before taxation

11,400

2,559

Historical cost retained profit/(loss) for the year 

4,212

456

3,172

1,576

-

818

(45)

The accompanying notes are an integral part of this statement of total recognised gains and losses, and this note of

historical cost profits and losses.

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C O N S O L I DAT E D   C A S H   F L OW   S TAT E M E N T

FOR THE YEAR ENDED 31 DECEMBER 2002

Notes

22

2002

US$000

US$000

13,691

2001

US$000

US$000

6,666

Net cash inflow from operating activities

Returns on Investments and Servicing of Finance

Interest received

Interest paid

Interest element of finance lease payment

Dividends paid to minority shareholders

Taxation

Foreign tax paid

UK tax paid

Capital Expenditure

Payments to acquire tangible fixed assets

Payments to acquire land

Proceeds from sale of tangible fixed assets 

Equity Dividends Paid

Parent company

Cash inflow/(outflow) before financing

Financing

Drawdown of long term loan

Finance lease repayments

Increase in cash in year

23

50

(942)

(3)

(263)

(2,424)

-

(6,136)

(620)

34

3,663

(29)

48

(362)

(6)

-

(1,158)

(320)

(2,511)

(2)

(2,424)

(2,513)

(7,605)

(270)

71

5,080

(29)

(7,804)

(588)

(4,559)

5,051

492

(6,722)

(785)

2,602

3,634

6,236

The accompanying notes are an integral part of this consolidated cash flow statement.

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1 Accounting Policies

The  principal  accounting  policies  are  summarised  below. Except  as  noted  below  they  have  all  been  applied
consistently throughout the year and the preceding year.

Basis of accounting
The financial statements have been prepared under the historical cost convention, modified to include the revaluation
of certain tangible fixed assets, and in accordance with applicable United Kingdom law and accounting standards.

Basis of consolidation
The  group  financial  statements  consolidate  those  of Anglo-Eastern  Plantations  Plc  and  its  subsidiary  undertakings,
drawn up to 31 December each year under the acquisition method of accounting.

Tangible fixed assets
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation
is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value,
of each asset as described below.
Estates are shown at valuation, which are calculated internally every year and reviewed by an external valuer every five
years. Estates are valued at the lower of replacement cost and recoverable amount, which is the higher of value in use
and net realisable value. Value in use is calculated as the present value of the local currency cash flows of each estate
over the next twenty years, including replanting where required.
Any surplus or deficit on revaluation is transferred to the revaluation and exchange reserve, except that a deficit which
is in excess of any previously recognised surplus relating to the same property is charged to the profit and loss account.
On the disposal or recognition of a provision for impairment of a revalued fixed asset, any related balance remaining
in the revaluation and exchange reserve is transferred to the profit and loss account as a movement on reserves.
The Tasik oil mill is included at cost less depreciation.
The depreciation charge on Indonesian estates is based on mature values at the beginning of the year and is provided
at a rate of 2% per annum. The Tasik oil mill is depreciated at a rate of 5% per annum. The Malaysian leasehold land
is depreciated over the remaining term of the lease. Mature plantations in Malaysia are depreciated at a rate of 5% per
annum.

Fixed asset investments
The  company's  fixed  asset  investments  in  subsidiary  undertakings  are  stated  at  cost  less  provisions  for  impairment.
Only dividends received or receivable are credited to the company’s profit and loss account.

Leasing
Assets financed by leasing agreements which give rights approximating to ownership (finance leases) are capitalised at
amounts equal to the original cost of the asset to the lessors and depreciation is provided on the asset over the shorter
of the lease term or its useful economic life on the basis of group depreciation policy. The capital elements of future
obligations under finance leases are included as liabilities in the balance sheet and the current year’s interest element
is charged to the profit and loss account to produce a constant rate of charge on the balance of capital repayments
outstanding. There are no operating leases.

Stocks
Stocks are stated at the lower of cost and net realisable value.

Current asset investments
The company's current asset investments are stated at the lower of cost or market value.

Foreign currency
Normal trading transactions in foreign currencies are recorded at the rates of exchange at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of
exchange prevailing at that date. Any gain or loss arising from a change in exchange rates subsequent to the date of
the transaction is included as an exchange gain or loss in the profit and loss account.
In the group financial statements the results and year end balances of foreign group companies are translated using the
average and closing rates respectively which are shown on page 9. Exchange rate adjustments arising from translation
are transferred direct to the revaluation and exchange reserves.
Exchange differences on foreign currency intercompany loans, to the extent that they relate to investments in overseas
operations, are also taken to the revaluation and exchange reserve.

Turnover
Turnover represents amounts receivable for goods and services provided by the group in the normal course of business,
net of trade discounts,VAT and export taxes.

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1 Accounting Policies - continued

Overhead capitalisation
Directly attributable overheads are capitalised in respect of immature areas.

Interest capitalisation
Interest on loans directly related to field development is capitalised in the proportion that the opening immature area
bears to the total planted area of the relevant estate. Interest on loans related to construction in progress (such as an
oil mill) is capitalised up to the commissioning of that asset.

Pensions
The group operates a number of defined pension schemes in respect of its Indonesian operations. The pension costs
of these schemes charged to the profit and loss accounts comprise the annual payments to the schemes as advised by
the  schemes’ actuaries  together  with  any  provision  required  for  any  shortfall  in  funding  as  disclosed  by  annual
valuations of the schemes.
This policy is not in accordance with SSAP24 ‘Accounting for Pension Costs’, but any differences are not material.

Taxation
UK and foreign corporation tax is provided at amounts expected to be paid or recovered using the tax rates and laws
that have been enacted or substantially enacted by the balance sheet date.

Deferred tax
Following the adoption of FRS19, Deferred Tax, is recognised in respect of all timing differences that have originated
but not reversed by the balance sheet date, except that:

• deferred tax is not recognised on timing differences arising on revalued properties unless the company has entered

into a sale agreement and is not proposing to take advantage of rollover relief; and

• the recognition of deferred tax assets is limited to the extent that the company anticipates making sufficient taxable

profits in the future to absorb the reversal of the underlying timing differences.

Deferred tax balances are not discounted. The adoption of the accounting standard has not had a material impact on
current or prior year.

Liquid resources
For the purposes of the cash flow statement liquid resources are defined as current asset investments and short term
deposits.

2 Segment Information

Net assets

Turnover

2002
$000

91,271
1,632
700
-
-
4,907

98,510

2002
$000

80,555
17,498
457

98,510

2001
$000

94,893
1,884
435
-
-
1,216

98,428

Net assets

2001
$000

79,531
17,710
1,187

98,428

By activity:
Oil palm
Rubber
Cocoa
Administration and other expenses
Interest
Unallocated assets

By geographic origin:
Indonesia
Malaysia
UK

By location of customer:
Indonesia
Malaysia

2002
$000

29,768
1,092
279
-
-
-

31,139

2002
$000

29,132
2,007
-

31,139

29,132
2,007

31,139

2001
$000

16,180
692
120
-
-
-

16,992

Turnover

2001
$000

15,864
1,128
-

16,992

15,864
1,128

16,992

Profit/(loss) before taxation
2001
$000

2002
$000

12,852
629
183
(897)
(675)
-

12,092

6,275
338
45
(3,289)
(10)
-

3,359

Profit/(loss) before taxation
2001
$000

2002
$000

12,970
(269)
(609)

12,092

6,174
(2,143)
(672)

3,359

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N OT E S  TO  T H E   F I N A N C I A L   S TAT E M E N T S

3 Administration and Other Expenses

Administrative expenses
Other operating income
Income from current asset investments
(Loss)/profit on disposal of fixed assets
Movement in market value of current asset investments
Exchange profit/(losses)
Provision for reduction in value of Malaysian estates

4 Operating Profit

Operating profit is stated after charging

Depreciation (including $16,000 (2001 – $19,000) in respect of leased assets)
Auditors’ remuneration - audit 

- other advisory services –  company only

5 Interest Payable

Payable on loans repayable within five years:

Development loans
Overdraft

- (note 15)
- (note 15)

Other (including $3,000 (2001 –$6,000) in respect of finance leases)
Interest capitalised on loans related to field development and construction in progress

6 Employees' and Directors' Remuneration

Average numbers employed (primarily overseas) during the year - full time

- casual

Staff costs (primarily overseas):

Wages and salaries
Social security costs
Retirement benefit costs

2002
$000
(1,751)
63
-
(5)
(32)
828
-

(897)

2002
$000
2,411
67
11

2002
$000

667
17
261
(220)

725

2002
number
2,927
2,974

2002
$000

4,495
136
195

4,826

2001
$000
(1,646)
43
4
4
47
(188)
(1,553)

(3,289)

2001
$000
2,115
65
7

2001
$000

332
30
6
(310)

58

2001
number
2,645
2,812

2001
$000

3,102
100
152

3,354

The company has contributed $31,000 (2001 - $29,000) to directors’ and employees’ money purchase pension plans
administered by UK insurance companies. Only one director is a member of such plans and no other director has a
pension entitlement. The remaining amount of $164,000 (2001 - $119,000) for retirement benefit costs charged to
profit and loss account relates to schemes described in note 21.

The information required by the Company Act and the listing rules of the Financial Services Authority is contained
in the directors' report on remuneration on pages 16 to 17 of which the information on page 17 has been audited.

Directors’ emoluments
Pension contributions

2002
$000
321
22

343

2001
$000
302
23

325

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7 Taxation 

The tax charge comprises:

Foreign corporation tax  - current year
Foreign withholding tax on remittances
Deferred tax adjustment - current year

- prior years

2002
$000
4,170
372
(175)
-

4,367

2001
$000
2,443
97
(472)
(430)

1,638

The corporation tax rates in Indonesia and Malaysia, the group's countries of operation, are close to the 30% standard
rate of corporation tax in the UK but the charge for the year differs from the standard UK rate of corporation tax
for the reasons below.

Profit on ordinary activities before tax

Profit on ordinary activities multiplied by standard rate of UK corporation tax of 30% 
(2001 – 30%)
Effects of:
Rate adjustment relating to overseas profits
Group accounting adjustments not subject to tax
Provision for reduction in value of Malaysian estates
Expenses not allowable for tax
Timing differences
Losses not offsetable against fellow subsidiary profits
Utilisation of tax losses brought forward

Current tax charge for period

8 Dividends

Final proposed – 4.00 cts per ordinary share (2001 – 2.00cts)

9 Earnings per Ordinary Share

2002
$000
12,092

2001
$000
3,359

3,628

1,008

(13)
73
-
63
64
402
(47)

4,170

2002
$000
1,571

(18)
(210)
466
47
9
1,335
(194)

2,443

2001
$000
785

Basic net earnings per ordinary share have been calculated on the profit attributable to ordinary shareholders being
$6,475,000 (2001: - $2,041,000) divided by 39,226,922 (2001 – 39,226,922) ordinary shares, being the weighted
average number of ordinary shares in issue during the year. The equivalent figure for diluted net earnings per share
is 39,440,025 (2001 – 39,226,922) which includes the effect of share options granted to directors and employees.

10 Tangible Fixed Assets

Cost or valuation
Beginning of year
Revaluations and exchange translations
Additions
Disposals

End of year

Depreciation
Beginning of year
Revaluations and exchange translations
Charge for the year
Disposals

End of year

Net book value
Beginning of year

End of year

Estates
$000

Oil mills
$000

Total
$000

101,753
(9,637)
5,320
(35)

97,401

(1,553)
3,671
(2,118)
-

5,129
830
1,656
(6)

7,609

(996)
(165)
(293)
2

106,882
(8,807)
6,976
(41)

105,010

(2,549)
3,506
(2,411)
2

-

(1,452)

(1,452)

100,200

97,401

4,133

6,157

104,333

103,558

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10 Tangible Fixed Assets – continued

Net book value of estates includes $48,000 (2001 - $55,000) in respect of assets held under finance leases.

The directors valued the estates at 31 December 2002 and 2001 at the higher of net realisable value and value in use.
In  the  case  of  the  Indonesian  estates  the  2001  valuations  were  independently  reviewed  in  accordance  with  the
requirement of FRS 15, Tangible Fixed Assets, by PT Nagadi Ekasakti, management consultants in Indonesia, who
have extensive plantation experience. The Indonesian estates have been included at value in use, which in the opinion
of the directors are probably above market values at the date of this report. The impairment loss, if any, has not been
accounted  for  as  the  directors  believe  that  valuations  of  the  Indonesian  estates  on  the  basis  of  their  value  to  the
company as a going concern best reflect their worth as opposed to general market values, which are impacted by
current conditions in Indonesia and current palm oil prices and are in any event difficult to determine. The Malaysian
estates were professionally valued by Messrs Khong & Jafaar in December 2001 on an open market existing use basis
and are included at this valuation plus subsequent additions at cost less depreciation.

Tangible fixed assets include $220,000 (2001: $310,000) of interest and $1,589,000 (2001: $1,725,000) of overheads
capitalised during the year in respect of expenditure on estates under development during 2002.

Original cost and depreciation at historical rates of exchange of tangible fixed assets at 31 December 2002 were:

Original cost
Cumulative depreciation based on original cost

Estates
$000
117,895
(20,083)

97,812

Oil
mill 
$000
14,904
(5,468)

9,436

Total
$000
132,799
(25,551)

107,248

The Indonesian authorities have granted certain land exploitation rights and operating permits for the estates. In the
case  of  estates  in  North  Sumatra  these  rights  and  permits  expire  between  2023  and  2028  with  rights  of  renewal
thereafter for a period of 35 years. In the case of estates in Bengkulu outstanding land titles were issued in 2002 and
the titles expire between 2028 and 2032 with rights of renewal thereafter for two consecutive periods of 25 and 35
years respectively. Renewal is subject to compliance with the laws and regulations of Indonesia. As described in note
1 the values in use of the Indonesian estates are depreciated over a period of fifty years since the directors expect the
renewals will take place.
The land title of the estate in Malaysia is a long lease expiring in 2084.

11 Stocks

These are estate and mill stores of $718,000 (2001 - $574,000), and produce stocks of $210,000 (2001 - $26,000),
stated at the lower of cost and net realisable value. Replacement value is not materially different.

12 Debtors

Consolidated balance sheet
Due within one year
Trade debtors
Other debtors
Taxation
Prepayments and accrued income

Due after more than one year

Minority shareholders (note 27)

Company balance sheet
Due within one year
Other debtors
Prepayments and accrued income

2002
$000

657
344
250
193

557

2001
$000

493
238
428
200

557

2,001

1,916

2002
$000

4
27

31

2001
$000

4
22

26

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13 Investments

These represent short term investments listed on the Kuala Lumpur Stock Exchange and are shown at market value,
being lower than cost of $591,000 (2001 - $591,000).

14 Creditors: Amounts Falling Due Within One Year

Consolidated balance sheet
Trade creditors
Overseas taxation
Other creditors
Accruals
Proposed dividend

Company balance sheet
Other creditors
Proposed dividend
Accruals

15 Borrowings

Consolidated balance sheet

Bank overdraft (a)
Finance lease obligations (b)
Long term development loan (c)
Long term development loan (d)

Amounts repayable after more than one year, as follows:
in more than one year but not more than two years
in more than two years but not more than five years
more than five years

2002
$000

666
3,051
1,401
1,028
1,571

7,717

2002
$000

11
1,571
120

1,702

2001

under one
year

68
31
-
-

99

2001
$000

520
1,111
1,813
1,037
785

5,266

2001
$000

4
785
74

863

more than 
one
year
-
18
4,734
1,708

6,460

2,360
3,760
340

6,460

under one
year

-
20
1,600
420

2,040

2002

more than
one
year
-
-
6,400
1,685

8,085

2,021
6,064
-

8,085

(a) The  bank  overdraft  is  secured  by  a  fixed  and  floating  charge  over  the  land  titles  and  assets  of  the  company’s
Malaysian  operating  subsidiary, Anglo-Eastern  Plantations  (M)  Sdn  Bhd  (“AEP  Malaysia”)  as  well  as  over  the
company’s  shareholding  in AEP  Malaysia. The  company  has  guaranteed  the  overdraft. Interest  is  at  2%  above
Malaysian Bank Lending Rate or about 8.4%.

(b) Finance lease obligations relate to vehicles and machinery, on which the obligations are secured, in the Indonesian

subsidiaries. Interest is effectively at 8%. Payments complete by the end of 2003.

(c) The long term development loan, which is part of a facility of $8,000,000, is made to and secured by a fixed and
floating  charge  on  the  land  titles  and  other  assets  of  PT  Mitra  Puding  Mas  and  PT Alno Agro  Utama. The
company has guaranteed the loan. Interest is at 1% under the US dollar Indonesian prime rate or about 8.3%
through 2002. The loan is repayable in eight quarterly instalments of $400,000 from January 2003 to September
2004, and four quarterly instalments of $1,200,000 from January 2004 to September 2005.

(d) The long term development loan is made to AEP Malaysia on the same security and interest terms described for
the overdraft in note 15(a) above. The loan is repayable in equal monthly instalments over five years commencing
January 2003.

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16 Deferred Taxation

Consolidated balance sheet

Beginning of year asset
Transfer to revaluation reserve
Credit to profit and loss account during year
Exchange adjustment

End of year asset

Deferred tax asset at end of year comprises:
Unutilised tax losses
Other timing differences

2002
$000
890
-
175
150

1,215

2002
$000
1,069
146

1,215

2001
$000
816
74

890

Potential tax payable if revalued assets realised for their carrying value

2002
$000
14,835

2001
$000
17,762

Unutilised tax losses for which no deferred tax asset created

17 Share Capital

Company 

Consolidated

2002
$000
369

2001
$000
565

2002
$000
12,554

2001
$000
11,884

Authorised
Number

Issued and
fully paid
Number

Ordinary shares of 25p each
Beginning of year

End of year

60,000,000

39,226,922

60,000,000

39,226,922

Authorised
$000

23,865

23,865

Issued and
fully paid
$000

15,171

15,171

Authorised
£000

15,000

15,000

Issued and 
fully paid
£000

9,808

9,808

Options have been granted under the company's 1994 Executive Share Option Scheme and Overseas Share Option
Scheme to subscribe for ordinary shares of 25p each of the company as follows:

Date of 
grant
5.11.94
3.11.95
24.5.96
25.10.99
16.10.00
16.04.02

Price per
share
93.2p
115.8p
124.0p
47.0p
37.0p
44.7p

Period of option

1 Jan 01

5.11.97 - 4.11.04
3.11.98 - 2.11.05
24.5.99 - 23.5.06
25.10.02 – 24.10.09
16.10.03 – 15.10.10
30.04.05 – 29.04.12

1
1
1
28
32
0

63

31 Dec 01

Number of options
Granted/
(Lapsed)
0
0
0
(6)
(7)
28

15

1
1
1
22
25
28

78

1 Jan 01

31 Dec 01

Number of shares subject to option
Granted/
(Lapsed)
0
0
0
(31,200)
(27,200)
196,500

31,412
8,000
14,338
409,600
164,900
196,500

31,412
8,000
14,338
440,800
192,100
0

686,650

138,100

824,750

Options granted to directors, included above, are shown on page 17.

In  January  2003  options  over  48,000  shares  were  exercised  at  47p  increasing  the  number  of  shares  in  issue  to
39,274,922.

18 Ultimate Controlling Shareholder

At 31 December 2002 Genton International Limited, a company registered in Hong Kong, held 20,176,414 (2001 –
20,176,414) shares of the company representing 51.4% (2000 – 51.4%) of the issued share capital of the company.
Madam S K Lim, a director of the company has advised the company that she is the controlling shareholder of Genton
International Limited.

A  subsidary  of  the  company  rents  office  space  at  $20,000  p.a. from, and  for  a  fee  of  $6,000  p.a. manages  a  small
plantation owned by, companies controlled by Madam S K Lim.These contracts are on an arm’s length basis.

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N OT E S  TO  T H E   F I N A N C I A L   S TAT E M E N T S

19 Reserves and Minority Interests
(a) Consolidated balance sheet

Beginning of year
Revaluation
Exchange translation
Retained profit for year
Minority dividends

End of year

Share
premium
account
$000
23,570
-
-
-
-

23,570

Share
capital
redemption
$000
1,087
-
-
-
-

1,087

Revaluation
and exchange
reserve
$000
10,986
(15,375)
10,975
-
-

Profit and loss
account
$000
29,815
-
-
4,904
-

6,586

34,719

Minority
interests
$000
17,799
(3,044)
2,299
1,250
(927)

17,377

As significantly all foreign exchange translation is attributable to fixed assets, foreign exchange translation effects have
been  included  in  the  revaluation  and  exchange  reserve. This  reserve  includes  cumulative  revaluation  reserve  of
$76,258,000 (credit), the reserve of $3,449,000 (credit) referred to in note 19(b) below and exchange translation loss
of $73,121,000 (debit). No deferred tax has been provided by the group in respect of the revaluation and exchange
reserve.

(b) Company balance sheet

Beginning of year
Profit for the financial year 
Proposed dividend
Retained profit for year

End of year

Share
premium
account
$000
23,570
-
-
-

23,570

Share
capital
redemption
$000
1,087
-
-
-

Revaluation
and exchange
reserve
$000
3,872
-
-
-

Profit and loss
account
(distributable)
$000
47
3,147
(1,571)
1,576

1,087

3,872

1,623

As permitted by section 230 of the Companies Act 1985, a separate profit and loss account dealing with the results of
the  company  has  not  been  presented. The  profit  before  tax  of  the  company  for  the  year  was  $3,252,000  (2001  -
$818,000). Of the revaluation and exchange reserve, $3,449,000 is available to meet any reduction in dollar terms of
investments in and loans to subsidiaries caused by adverse exchange rate movements on the underlying assets.

20 Guarantees and Other Financial Commitments

Consolidated
Capital commitments at 31 December
Contracted for but not provided for - normal operations

Authorised but not contracted for

- oil mill
- normal operations
- acquisition of new land

2002
$000

2001
$000

477
-
1,350
-

231
1,239
1,190
100

Contingent liabilities
A subsidiary is facing a claim over 236ha of unplanted land in Indonesia. The subsidiary in question has a valid HGU
land title covering the relevant area and has won its case in the local and Appeal courts but the plaintiff has appealed
to the Supreme Court. The company is reasonably confident of winning this case. The relevant piece of land is valued
in the consolidated financial statements at approximately $45,000.

Company
The  company  has  provided  a  guarantee  for  loans  and  overdrafts  to  subsidiaries  totalling  $10,105,000  (2001  -
$6,442,000), as set out in note 15.

The company had no capital commitments at 31 December 2002 (2001 - nil).

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N OT E S  TO  T H E   F I N A N C I A L   S TAT E M E N T S

21 Retirement Benefits

The group maintains a defined benefit funded pension scheme for labour in Indonesia. The scheme is valued by an
actuary at the end of each financial year. The major assumptions used by the actuary were:

Inflation
Rate of increase in wages
Discount rate

The fair values of assets in the scheme were:

Cash (expected long term rate of return: 12%)

The following amounts were measured in accordance with the requirements of FRS 17.

Fair value of scheme assets
Actuarial value of scheme liabilities

Deficit in scheme provided within accruals (note 14)

2002
$000
10%
10%
12%

2002
$000
397

2002
$000
397
(473)

(76)

2001
$000
10%
10%
12%

2001
$000
287

2001
$000
287
(363)

(76)

The group also operates a non-contributory non-funded retirement plan for staff in Indonesia. Retirement benefits
are paid to employees in a single lump sum at the time of retirement. Retirement benefit is accrued by the group
based on individual employees’ service up to the end of the financial year.

Amount included in accruals (note 14)

2002
$000
227

2001
$000
147

Since deficits have been provided in full within the group financial statements the group net assets and results would
be unaffected if the schemes were combined within the financial statements in accordance with FRS 17.

22 Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities
2002
$000
12,767
2,411
-
5
32
(328)
(263)
(815)
(118)

Operating profit
Depreciation and amortisation
Provision for reduction in value of Malaysian estates
Loss/(profit) on sale of fixed assets
Movement in market value of investments
(Increase)/decrease in stocks 
Increase in debtors
(Decrease)/increase in creditors
Foreign exchange 

Net cash inflow from ordinary activities

23 Reconciliation of Net Cash Flows to Movement in Net Debt

Increase in cash in year
Cash inflow from increase in long term loans
Cash outflow from decrease in finance leases

Change in net debt resulting from cash flows
Change in market value of current asset investments

Movement in net debt in year
Net (debt)/funds at start of year (note 24)

Net debt at end of year (note 24)

13,691

2002
$000
6,236
(3,663)
29

2,602
(32)

2,570
(4,045)

(1,475)

2001
$000
3,369
2,115
1,553
(4)
(47)
184
(314)
130
(320)

6,666

2001
$000
492
(5,080)
29

(4,559)
47

(4,512)
467

(4,045)

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N OT E S  TO  T H E   F I N A N C I A L   S TAT E M E N T S

24 Analysis of Net Debt

Cash at bank and in hand
Overdraft 

Net cash
Loans due within 1 year
Finance leases due within 1 year
Borrowings due in more than 1 year
Finance leases due in more than 1 year
Current asset investments

Net funds/(debt)

At 31 Dec
2001
$000
2,248
(68)

2,180
-
(31)
(6,442)
(18)
266

(4,045)

Flows
$000
6,168
68

6,236
-
29
(3,663)
-
-

2,602

Reclas-
sification

$000
-
-

-
(2,020)
(18)
2,020
18
-

-

Change in
market
value
$000
-
-

-
-
-
-
-
(32)

(32)

At 31 Dec
2002
$000
8,416
-

8,416
(2,020)
(20)
(8,085)
-
234

(1,475)

25 Disclosure of Financial Instruments and Other Risks

General
The group’s financial instruments at present comprise cash and liquid resources, some short term creditors, together
with normal trade debtors and creditors, and long term loans in Indonesia and Malaysia. The main risks which arise
from these financial instruments relate to liquidity, interest rates and exchange rates.

Liquidity risk
At 31 December 2002 the group had the following loans and facilities.

Malaysia:

ringgit denominated
- overdraft
- long term loan

Indonesia: US dollar denominated

- long term loan

Borrowings
$000

-
2,105

8,000

Facilities
$000

790
2,105

8,000

Repayable

on demand
2003 – 2007  (note 15)

2003 – 2005  (note 15)

The total long term loan facilities of $10,105,000 are repayable as follows:

2003
$000
2,021

2004
$000
2,021

2005
$000
5,221

2006
$000
421

2007
$000
421

Interest rate risk
The loans listed above are all at variable rates of interest as described in note 15.

The  group’s  financial  liabilities  comprise  long  term  loans  as  set  out  above, as  well  as  short  term  creditors, and  a
potential short term overdraft facility.

The group’s financial assets comprise short term debtors, short term portfolio investments, cash at bank and long term
debtors. All surplus cash is in bank deposits at variable short term rates of interest. Long term debtors comprise dollar
denominated amounts due from minority shareholders, as described in note 27, on which amounts interest is due at
6% (fixed) but not accrued in the group accounts; these debtors are expected to be settled in about five years.

The interest rate profiles of the group’s financial liabilities at 31 December 2002 and 2001 were:

Currency

2002
Sterling
US dollar
Rupiah
Ringgit

Total

Total Fixed rate financial
(liabilities)

$000
(131)
(10,631)
(4,836)
(2,244)

(17,842)

$000
-
-
-
-

-

Variable rate
financial 
(liabilities)
$000
-
(8,020)
-
(2,105)

(10,125)

Financial (liabilities)
on which no interest
is paid
$000
(131)
(2,611)
(4,836)
(139)

(7,717)

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N OT E S  TO  T H E   F I N A N C I A L   S TAT E M E N T S

25 Disclosure of Financial Instruments and Other Risks

Interest rate risk – continued

2001
Sterling
US dollar
Rupiah
Ringgit

Total

All currencies - 2002

Total Fixed rate financial
(liabilities)

$000
(78)
(7,113)
(2,277)
(2,357)

(11,825)

$000
-
(1,314)
-
-

(1,314)

Variable rate
financial
(liabilities)
$000
-
(4,734)
-
(1,776)

(6,510)

Financial 
(liabilities) on which
no interest is paid
$000
(78)
(1,065)
(2,277)
(581)

(4,001)

Fixed rate financial (liabilities)

Weighted average
interest rate

%
-

Weighted average 
period on which
rate is fixed
Years
-

Financial (liabilities) on 
which no interest is paid
Weighted average
period until maturity 

Years
<1

Foreign currency risk
All the group’s operations are overseas. The group is therefore exposed to currency movements on its net investment
overseas.

The effects of devaluation in local currencies on the group's operations are as follows:

Since selling prices of the group's produce are linked directly to the US dollar, a depreciation of local currencies against
the US dollar would increase the profit of the Malaysian and Indonesian subsidiaries. However, this benefit is partly
offset over time by consequent inflation in local costs. Cost of development in dollar terms also reduces.

Value of plantations in Indonesia are included in the group's financial statements based on estimated future cash flows
in rupiah. Plantations in Malaysia have been included in the group's financial statements at ringgit market valuation
determined by a professional valuer. In both cases, exchange losses on translation of these values into US dollars are
offset against revaluation surpluses.

The  group  retains  little  of  its  cash  balances  in  local  currencies. The  exchange  profits  or  losses  arising  in  overseas
subsidiaries holding foreign currency balances are also credited or charged in the group profit and loss account.

The group’s subsidiaries which are borrowing US dollars, as shown under “Liquidity risk” above, could face significant
exchange losses, which would be charged in the group profit and loss account. This risk is mitigated in part by the
dollar denomination of the group’s income, and by any dollar liquid assets.

Exchange losses on long term dollar intercompany debt are charged against the revaluation surpluses referred to above
and do not affect the group’s profit.

Gains and losses arising from structural currency exposures are taken to the revaluation and exchange reserve and are
therefore recognised in the Statement of Total Recognised Gains and Losses.

The table below shows the net monetary assets and liabilities of the group at 31 December 2002 and 2001 that were
not denominated in the operating (or “functional”) currency of the operating unit involved.

Functional currency of group operation
2002
Indonesian rupiah
US dollar

Total

2001
Indonesian rupiah
US dollar

Total

Net foreign currency assets/(liabilities)

US dollar
$000
(2,996)
-

(2,996)

$000
(6,018)
-

(6,018)

Ringgit
$000
-
244

244

$000
-
273

273

Sterling
$000
-
(69)

(69)

$000
-
(20)

(20)

Total
$000
(2,996)
175

(2,821)

$000
(6,018)
253

(5,765)

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N OT E S  TO  T H E   F I N A N C I A L   S TAT E M E N T S

25 Disclosure of Financial Instruments and Other Risks

Fair values of financial assets and financial liabilities
There is no material difference between the book values and fair values of the group’s financial assets and liabilities as
at 31 December 2002.

Gains and losses on hedges
The group enters into no hedging transactions and normally does not contract to sell produce more than one month
ahead.

Other risks
Indonesia has been through a period of major political change. Further changes could affect exchange and interest
rates and social stability. Indonesian government policy towards foreign investment and the plantation industry may
also change, affecting the group’s future profits and cash flow. The net assets of the group in Indonesia subject to these
risks are set out in note 2.

26 Investments in Subsidiary Undertakings - Company

At beginning of year
Movement in year

At end of year

Investments
in subsidiary
undertaking
$000
1,599
-

1,599

Loans to
subsidiary
undertakings
$000
41,516
2,310

43,826

Total
$000
43,115
2,310

45,425

Loans to and from subsidiary companies do not have fixed repayment dates and on this basis have previously been
included  under  current  assets  and  liabilities. Since  these  balances  are  effectively  long  term  in  nature  it  has  been
decided to reclassify them with the investments in subsidiaries at 31 December 2002. The comparative figures for
investments and for amounts due from and to subsidiaries at 31 December 2001 have been re-stated accordingly.

Percentage holding of 
ordinary shares

Principal United Kingdom sub-holding company

Anglo-Indonesian Oil Palms Limited

UK management company
Indopalm Services Limited

Malaysian operating companies

Anglo-Eastern Plantations (M) Sdn Bhd 
Anglo-Eastern Plantations Management Sdn Bhd 

Indonesian operating companies

PT Alno Agro Utama 
PT Anak Tasik  
PT Mitra Puding Mas 
PT Musam Utjing
PT Simpang Ampat
PT Tasik Raja
PT United Kingdom Indonesia Plantations

100

100

55
100

94
100
90
75
100
80
75

The principal United Kingdom sub-holding company and UK management company are registered in England and
Wales and are direct subsidiaries of the company. Details of United Kingdom subsidiaries which are not significant
have been omitted. The Malaysian operating companies are incorporated in Malaysia and are direct subsidiaries of
the company. The Indonesian operating companies are incorporated in Indonesia and are direct subsidiaries of the
principal sub-holding company. The principal activity of the operating companies is plantation agriculture.

The company’s entire interest in Anglo-Eastern Plantations (M) Sdn Bhd has been secured against the loans to that
subsidiary set out in note 15.

27 Minority Interests

The  minority  shareholders  in  PT  Mitra  Puding  Mas  and  PT Alno Agro  Utama  have  acquired  their  interests  on
deferred terms. The resulting debts together with accrued interest will be settled from dividends arising from these
projects.

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34

C O N S O L I DAT E D   P RO F I T  A N D   L O S S  AC C O U N T   ( £   S T E R L I N G )

FOR THE YEAR ENDED 31 DECEMBER 2002

Turnover - continuing operations

Cost of sales

Gross profit - continuing operations

Administration and other expenses

Operating profit - continuing operations

Interest

-  receivable

-  payable

Profit on ordinary activities before taxation

Tax on profit on ordinary activities

Profit on ordinary activities after taxation

Minority interests (all equity interests)

Profit for the financial year

Dividends proposed 

Retained profit for the year

Earnings per ordinary share (basic and diluted)

-  basic

-  diluted

Notes
(References in
US Dollars)

2002
£000

2001
£000

2

3

4

5

7

19

8

19

9

9

20,622

(11,573)

9,049

(594)

8,455

33

(480)

8,008

(2,892)

5,116

(828)

4,288

(1,040)

3,248

10.9p

10.9p

11,800

(7,176)

4,624

(2,284)

2,340

33

(40)

2,333

(1,138)

1,195

222

1,417

(545)

872

3.6p

3.6p

The accompanying notes are an integral part of this consolidated profit and loss account.

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35

C O N S O L I DAT E D  A N D   C O M PA N Y   B A L A N C E   S H E E T S   ( £   S T E R L I N G )

31 DECEMBER 2002

Consolidated

Company

Notes
(References in
US dollars)

2002
£000

2001
£000

2002
£000

64,322

71,461

-

-

64,322

71,461

-

28,214

28,214

Fixed Assets

Tangible assets

Investments

Current Assets

Stocks

Debtors

Investments

Cash at bank and in hand 

Current Liabilities

Creditors: falling due within one year

Borrowings

Other creditors

Net current (liabilities)/assets

Total assets less current liabilities

Non-current Assets/Liabilities

Creditors: falling due after more than one year

Borrowings

Deferred taxation

Net assets

Capital and Reserves

Called-up share capital

Share premium account

Share capital redemption reserve

Revaluation and exchange reserve

Profit and loss account

10

26

11

12

13,24

24

15,24

14

15,24

16

17

19

19

19

19

Shareholders’ funds - all equity interests

Minority interests - all equity interests

19,27

576

1,243

145

5,227

7,191

(1,267)

(4,793)

(6,060)

1,131

65,453

(5,022)

755

61,186

9,808

15,329

663

3,028

21,565

50,393

10,793

2001
£000
(restated)

-

29,531

29,531

-

18

182

823

1,023

-

(591)

(591)

432

411

1,312

182

1,540

3,445

-

20

145

829

994

(68)

(3,607)

(3,675)

(230)

-

(1,057)

(1,057)

(63)

71,231

28,151

29,963

(4,425)

610

-

-

-

-

67,416

28,151

29,963

9,808

15,329

663

9,004

20,421

55,225

12,191

9,808

15,329

663

1,342

1,009

9,808

15,329

663

4,131

32

28,151

29,963

-

-

Total capital employed

61,186

67,416

28,151

29,963

The accompanying notes are an integral part of these balance sheets.

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36

C O N S O L I DAT E D   C A S H   F L OW   S TAT E M E N T   ( £   S T E R L I N G )

FOR THE YEAR ENDED 31 DECEMBER 2002

Net cash inflow from operating activities

22

8,670

4,647

Notes
(References in
US dollars)

2002

2001

£000

£000

£000

£000

Returns on Investments and Servicing of Finance

Interest received

Interest paid

Interest element of finance lease payment

Dividends paid to minority shareholders

Taxation

Foreign tax paid

UK tax paid/repaid

Capital Expenditure

Payments to acquire tangible fixed assets

Payments to acquire land

Proceeds from sale of tangible fixed assets 

Equity Dividends Paid

Parent company

Cash inflow/(outflow) before financing

Financing

Drawdown of long term loan

Finance lease repayments

Increase in cash in year

23

33

(624)

(2)

(174)

(1,605)

-

(4,064)

(411)

23

2,427

(19)

33

(251)

(4)

-

(767)

(222)

(1,744)

(1)

(1,605)

(1,745)

(5,281)

(188)

49

3,508

-

(5,420)

(408)

(3,148)

3,508

360

(4,452)

(520)

1,326

2,408

3,734

The accompanying notes are an integral part of this consolidated cash flow statement.

A N G L O   -   E A S T E R N   P L A N TAT I O N S   P L C

37

N OT I C E   O F   M E E T I N G

Notice is hereby given that the eighteenth Annual General Meeting of Anglo-Eastern Plantations Plc will be held at the
offices of Lovells,Atlantic House, 50 Holborn Viaduct, London EC1A 2FG on 11 June 2003 at 11.30 am for the following
purposes:

As Ordinary Business
1
2
3
4

To receive and consider the company’s annual report for the year ended 31 December 2002.
To declare a dividend.
To approve the remuneration report for the year ended 31 December 2002.
To re-elect the following directors.
a) Mr P E O'Connor
b) Datuk H Chin Poy-Wu
To re-appoint BDO Stoy Hayward as auditors and to authorise the directors to fix their remuneration.

5

As Special Business
6

To consider and, if thought fit, to pass the following resolution as a special resolution:

That

(a) the directors be generally and unconditionally authorised pursuant to and in accordance with section 80 of the
Companies Act  1985  (“the Act”)  to  exercise  for  the  period  ending  on  10  June  2008  all  the  powers  of  the
company to allot relevant securities up to an aggregate nominal amount equal to the company's authorised but
unissued share capital at the date of this resolution;

(b) pursuant to the said authority and during the period expiring on the date of the next Annual General Meeting
or  on  10  September  2004  (whichever  shall  be  earlier)  the  directors  be  empowered  to  allot  equity  securities
wholly for cash:

in connection with a rights issue; and

(i)
(ii) up  to  an  aggregate  nominal  amount  of  £490,936  otherwise  than  in  connection  with  a  rights  issue; as  if

section 89 (1) of the Act did not apply to any such allotment;

(c) by such authority and power the directors may during such periods make offers or agreements which would or

might require the making of allotments after the expiry of such period; and

(d) for the purposes of this resolution:

(i) "rights issue" means an offer of equity securities open for acceptance for a period fixed by the directors to
holders of equity securities on the register on a fixed record date in proportion to their respective holdings
of such securities or in accordance with the rights attached thereto (but subject to such exclusions or other
arrangements as the directors may deem necessary or expedient in relation to fractional entitlements or legal
or practical problems under the laws of, or the requirements of any recognised regulatory body or any stock
exchange in, any territory);

(ii) the nominal amount of any securities shall be taken to be, in the case of rights to subscribe for or convert
any securities into shares of the company, the nominal amount of such shares which may be allotted pursuant
to such rights; and

(iii) words and expressions defined in or for the purposes of part IV of the Act shall bear the same meanings

herein.

7

To consider and if thought fit to pass the following resolution as a special resolution:

That the directors be and they are hereby authorised
(i)

to exercise the powers contained in Articles 137 and 138 of the Articles of Association of the company so that, to
the  extent  determined  by  the  directors, the  holders  of  ordinary  shares  be  permitted  to  elect  to  receive  new
ordinary shares of 25p each in the capital of the company, credited as fully paid, instead of all or part of any interim
or final dividend or dividends which may be declared or paid at any time or times prior to 10 June 2008; and

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N OT I C E   O F   M E E T I N G

(ii) to  capitalise  the  appropriate  nominal  amount  of  additional  ordinary  shares, falling  to  be  allotted  pursuant  to
elections made as aforesaid, out of the amount standing to the credit of any reserves of the company, to apply
such sum in paying up such ordinary shares and pursuant to section 80 of the Act to allot such ordinary shares
up  to  a  maximum  nominal  value  of  an  aggregate  nominal  amount  equal  to  the  company's  authorised  but
unissued share capital at the date of this resolution to members of the company validly making such elections at
any time or times prior to 10 June 2008 as if sub-section (1) of section 89 of the said Act did not apply thereto
and so that this authority shall be without prejudice and additional to the authority conferred by resolution no
6.

8

To consider and if thought fit to pass the following as a special resolution:

That the company is hereby generally and unconditionally authorised to make market purchases (within the meaning
of section 163 of the Act) of ordinary shares of 25p each in the capital of the company provided that:

(a) the maximum number of ordinary shares hereby authorised to be purchased is 3,927,492 (representing 10% of 

the issued ordinary share capital);

(b) the minimum price which may be paid for each ordinary share is 25p;

(c) the maximum price which may be paid for each ordinary share is an amount equal to 105% of the average of
the  middle  market  quotations  for  such  share  as  derived  from  the  Daily  Official  List  of  the  London  Stock
Exchange Limited for the five business days immediately preceding the date of purchase; and

(d) the  authority  hereby  conferred  shall  expire  at  the  conclusion  of  the  next  Annual  General  Meeting  of  the
company save that the company may before the expiry of this authority make a contract of purchase which will
or may be executed wholly or partly after such expiry and may make a purchase of shares pursuant to any such
contract.

9 April 2003

By order of the board
R O B  BARNES
Secretary

A member of the company entitled to attend and vote at the meeting may appoint one or more proxies to attend and on a poll vote instead of him. A
proxy need not be a member. The instrument appointing a proxy must be deposited at the office of the registrars not less than forty-eight hours before the
time appointed for holding the meeting.

Pursuant to regulation 34 of the Uncertified Securities Regulations 1995, the company has specified that only those shareholders on the register of
members of the company at 11.30 am on 9 June 2003 shall be entitled to attend and vote at the meeting in respect of the number of shares registered in
their name at that time. Changes to the register of members after 11.30 am on 9 June 2003 shall be disregarded in determining the rights of any person
to attend and vote at the meeting.

The register of directors' interests, showing any transactions of directors and of their families in the securities of the company, will be available for
inspection at the registered office of the company during usual business hours from the date of this notice until the date of the Annual General Meeting
and on that day until the conclusion of the meeting. No directors have service agreements exceeding one year's duration.

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C O M PA N Y  A D D R E S S E S

C O M PA N Y  A DV I S E R S

Malaysian Office

Level 9

Grand Seasons Avenue

72 Jalan Pahang

53000 Kuala Lumpur

Tel  : 60 (3) 2693 1828

Fax : 60 (3) 2691 1028

Indonesian Office

P T United Kingdom Indonesia Plantations 

Wisma HSBC

Jalan Diponegoro, Kav 11

Medan 20152

North Sumatra

Tel  : 62 (0)61 4528683

Fax : 62 (0)61 4520029

Auditors

BDO Stoy Hayward

8 Baker Street

London  W1U 3LL

Principal Bankers

National Westminster Bank Plc

15 Bishopsgate

London EC2P 2AP

The Hong Kong and Shanghai Banking

Corporation Limited

Wisma HSBC

Jalan Diponegoro, Kav 11

Medan 20152

North Sumatra

Secretary and Registered Office (Number

Malayan Banking Corporation Bhd

1884630)

R O B  Barnes

6/7 Queen Street

London EC4N 1SP

Tel  : 44 (0)20 7236 2838

Fax : 44 (0)20 7236 8283

Menara Promenade

100 Jalan Tun Razak

50050 Kuala Lumpur

Registrars

Capita Registrars

The Registry

34 Beckenham Road

Beckenham

Kent BR3 4TU

Solicitors

Lovells

Atlantic House

Holborn Viaduct

London EC1A 2FG

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