2010
ANNUAL REPORT
Anglo-Eastern Plantations Plc
Contents
Financial Highlights
Chairman's Statement
Financial Record
Estate Areas
Location of Estates
Business Review
Directors' Report
Directors' Responsibilities
Directors
Statement on Corporate Governance
Directors' Remuneration Report
Auditors' Report
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Company Balance Sheet
Notes to the Company Financial Statements
Notice of Annual General Meeting
Form of Proxy and Attendance Card
Company addresses, advisers and website
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3
6
7
8
9
10
14
15
16
18
21
23
24
25
26
27
29
47
48
51
Separate Attachment
Inside Back Cover
Anglo-Eastern Plantations Plc, quoted on the London Stock Exchange, owns, operates
and develops plantations in Indonesia and Malaysia, amounting to some 133,000 hectares
producing mainly palm oil and some rubber.
2010
$ m
187.2
66.6
85.0
2009
$ m
150.1
61.2
62.1
99.59cts
129.82cts
5.0cts
*3.1p
94.11cts
94.99cts
5.0cts
3.3p
Financial Highlights
Revenue
Profit before tax
- before biological asset (“BA”) adjustment
- after BA adjustment
EPS before BA adjustment
EPS after BA adjustment
Dividend (cents)
Dividend (pence)
Note: * Based on exchange rate at 15 March 2011 of $1.6064/£
1 Annual Report 2010 | Anglo-Eastern Plantations Plc
Financial Highlights
Denominated in US Dollar
2 Annual Report 2010 | Anglo-Eastern Plantations Plc
Chairman’s Statement
On behalf of the Board of Directors of Anglo-Eastern Plantations Plc, I am pleased to present to you the 2010
Annual Report and Audited Financial Statements on the performance and operations of the Group and the
Company for the year ended 31 December 2010.
Financial Performance
For the year ended 31 December 2010, revenue was $187.2 million, 25% higher than $150.1 million in 2009. This
is due primarily to higher CPO price. The Group operating profit for 2010, before biological asset (“BA”) adjustment
was $64.9 million, 10% more than in 2009. Estates fresh fruit bunch (“FFB”) output for 2010 was 3% lower than
previous year. FFB bought in from surrounding smallholders for 2010 was 432,800mt (2009: 435,500mt), 1% lower
compared to 2009. FFB production was affected by higher rainfall particularly in Bengkulu which interrupted the
evacuation of FFB. With lower FFB processed, Crude Palm Oil (“CPO”) production in 2010 was 204,600mt, 4%
lower compared to 213,200mt in 2009.
Profit before tax and after BA adjustment was $85.0 million, compared to $62.1 million in 2009. The BA adjustment
was a credit of $18.4 million, compared to a credit of $0.9 million in 2009, reflecting higher estate valuations.
Overall, the higher profit was attributed to a higher CPO price. The average CPO price for 2010 was $892/mt, 31%
higher than 2009 of $679/mt.
Earnings per share before BA adjustment increased by 6% to 99.59cts, compared to 94.11cts in 2009.
The Group‟s balance sheet remains strong. The Group continued to experience positive cash flow generation for
2010, enabling it to build up cash reserves and reduce its borrowings. As at 31 December 2010, the Group had a
cash position of $70.9 million and lower borrowings of $22.1 million, giving it a net cash position of $48.8 million,
compared to $36.8 million in 2009.
During the year, we repaid $4.9 million (2009: $8.6 million) out of our existing borrowings of $27.0 million (2009:
$35.6 million).
Corporate Development
In 2010, we planted 7,580 hectares of oil palm mainly in Kalimantan, boosting our planted area by 16% to 52,000
hectares (2009: 44,700 hectares). The Group plans to plant an additional 10,000 hectares per year for the next four
years.
The Sumindo mill (45 MT/hour) was commissioned in May 2010. Construction work to increase Blankahan mill
processing capacity from 25 MT/hour to 40 MT/hour was started in December 2010 and is scheduled for
completion by September 2011 at an estimated cost of $1.6 million.
With over 5,500 hectares already planted in Kalimantan, with the first harvest expected in 1Q2012, an oil mill with
an initial capacity of 60 MT/hour is also planned for PT Sawit Graha Manunggal (“SGM”) for 2Q2011.
Another mill is planned for North Sumatra for 3Q2011.
3 Annual Report 2010 | Anglo-Eastern Plantations Plc
Chairman’s Statement
Directors
Mr. Donald Han Low relinquished his position as Acting Chief Executive on 25 May 2010.
The Board is pleased to announce the appointment of Dato‟ John Lim Ewe Chuan as Executive Director, Corporate
Finance and Corporate Affairs, with effect from 1 September 2010. Prior to taking up this position, Dato‟ John Lim
was the Senior Independent Non-Executive Director of the Company. He will be submitting himself for re-
appointment at the forthcoming annual general meeting.
Mr. Chan Teik Huat has retired as Non-Executive Chairman as well as a Director of the Company with effect from
31 January 2011.
I have been appointed as Non-Executive Chairman of the Company with effect from 31 January 2011. I will be
submitting myself for re-election at the same annual general meeting. Brief profiles of all Directors are set out on
page 15 of this Annual Report.
Corporate Social Responsibility
Corporate social responsibility (“CSR”) is an integral part of corporate self-regulation incorporated into our business
model. Our Group embraces responsibility for the impact of its activities on the environment, consumers,
employees, communities, stakeholders and all other members of the public sphere. In engaging the social
dimension of CSR, the Group‟s business has taken cognizance of the contribution and further enrichment of its
employees while continuing to make contributions to improve the well being of the surrounding community.
We are in the preliminary stage of moving towards the RSPO (Roundtable on Sustainable Palm Oil) standards.
This multinational multi-stakeholder organisation, founded by the World Wildlife Fund for Nature (“WWF”), is
focused upon delivering certified sustainable palm oil to the world market through one of the world‟s most
comprehensive certification programs for agricultural products. This initiative is focused on protecting and
enhancing the principles of people, planet and profit for the benefit of all. RSPO principles are clearly stated under
the Statement on Corporate Governance.
The RSPO steering committee was established in December 2010 to work out a roadmap to support RSPO
implementation at mills and estates. The steering committee is exploring green projects like generating electricity
from empty fruit bunch and compost plants that meet RSPO principles and criteria for implementation.
We also noted that Indonesian Sustainable Palm Oil (“ISPO”) is legally mandatory for all plantations in Indonesia.
By March 2012, ISPO will become the minimum standard for Indonesia planters.
Care For The Environment
As a Group, we equally highlight the importance of creating awareness and implementation of good environmental
management practices throughout the organisation. The Group has been consistently practising good agricultural
practices such as zero burning, integrated pest management, land terracing and recycling of biomass and reducing
fossil fuel consumption.
Outlook
FFB production for two months to February 2011 was 20% higher against the same period in 2010. Although we
have been spared extreme weather patterns so far this year, it is too early to forecast whether the production will
be better for the rest of the year.
4 Annual Report 2010 | Anglo-Eastern Plantations Plc
Chairman’s Statement
Outlook-continued
The CIF (Cost, Insurance, Freight) Rotterdam CPO price opened the year 2011 at $1,195/mt and prices are
expected to be in the range of $1,000/mt to $1,300/mt for 1H 2011. The fundamentals for palm oil price remain
bright due to expectations of tighter supplies in 2011 and the growing dependence on palm oil to raise edible oil
supplies. Various variances like weather, crude oil price, government policies and global liquidity influence CPO
price movement. While it is difficult to forecast the CPO price in 2011, it should remain satisfactory.
In Malaysia and Indonesia, it is generally expected that yields and productivity will pick up reasonably in 2011 due
to increased maturing areas in Indonesia and a recovery from biological tree stress. Oil World forecasts global
CPO production to rise 5.5% year on year in 2011, slightly higher than consumption growth of 5.3%. Demand for
CPO is expected to be firm due to increased share of the vegetable oil market and making up for the shortfall
production of other vegetable oil.
The US dollar depreciated by approximately 4% (2009: 15%) against the Indonesian Rupiah during 2010.
Indonesian Rupiah has not experienced adverse fluctuations against the US dollar in early 2011. We expect a
stable currency exchange level to be attainable for the rest of the year. To mitigate the exposure to currency
exchange volatility, the Group is managing its cash in dollar and local currencies prudently, taking into
consideration its dollar-denominated borrowings and operational cost currency requirements.
Prospects for 2011 should be cautiously optimistic in view of higher CPO price during 1Q2011 on the back of
robust growth of emerging markets. The Chinese government efforts to curb rising food prices and inflation may
potentially affect future demand and CPO price. Indonesia‟s domestic market continued to be resilient and remain
unscathed from global uncertainties during 2010. The continued strength in domestic demand should be
sustainable in 2011. The Company is aware of rising fertiliser costs and wages in Indonesia which is expected to
increase the overall production cost in 2011. Recent increase in export tax on CPO in Indonesia to 25% is also
expected to affect profit margin. Barring any unforeseen circumstances, the Group is confident that CPO demand
will be sustainable in view of global economic recovery and we can expect a satisfactory profit level and cash flow
for 2011.
Dividends
The Board is mindful that the Group‟s development programme will require a considerable capital commitment. In
this respect, the dividend level needs to be balanced against the planned capital expenditure. The Board is
proposing to declare a final dividend of 5.0cts in respect of 2010 (2009: 5.0cts). The final dividend will be paid on
28 June 2011 to those shareholders on the register on 27 May 2011. Shareholders choosing to receive their
dividend in Sterling will do so at the rate ruling on 27 May 2011, when the register closes. Based on the exchange
rate at 15 March 2011 of $1.6064/£, the proposed dividend would be equivalent to 3.1p, compared to 3.3p declared
in respect of 2009.
Acknowledgment
On behalf of the Board of Directors, I would like to convey our sincere thanks to our Directors, management and all
employees of the Group for their dedication, loyalty, resourcefulness, commitment and contribution to the success
of the Group. The year ahead will continue to be challenging given the turbulence of the global market. With similar
commitment, perseverance and effort as exhibited in the past, I am confident we can deliver a good level of
performance to all our shareholders.
I would also like to take this opportunity to thank the shareholders, business associates, government authorities
and all other stakeholders for their continued confidence, understanding and support for the Group.
Madam Lim Siew Kim 26 April 2011
Chairman
5 Annual Report 2010 | Anglo-Eastern Plantations Plc
Financial Record
Income statement
Revenue
Trading profit
Biological asset (BA) movement
Exchange profits
Net finance –income / (costs)
Profit before tax
Tax
Non-controlling interest
Profit attributable to shareholders
Dividend proposed for year
Financial position
Non-current assets & long term receivables
Cash net of short term borrowings
Long term loans
Other working capital
Deferred tax
Non-controlling interest
Net worth
Share capital
Treasury shares
Share premium and capital redemption account
Revaluation and exchange reserve
Profit and loss account
Equity attributable to shareholders’ funds
Ordinary shares in issue („000s)
Earnings per share before BA adj. (US cents)
Earnings per share after BA adj. (US cents)
Dividend per share for year (US cents)
Asset value per share (US cents)
Earnings per share before BA adj (pence
equivalent)
Dividend per share for year (pence)
Asset value per share (pence equivalent)
Exchange rates – year end
Rp : $
$ : £
RM: $
Exchange rates – average
Rp : $
$ : £
RM: $
2010
IFRS
$000
2009
IFRS
$000
2008
IFRS
$000
2007
IFRS
$000
187,233
64,937
18,429
657
1,015
85,038
(22,573)
(11,136)
51,329
(1,977)
150,080
58,955
888
1,259
983
62,085
(16,934)
(7,657)
37,494
(1,973)
174,684
74,064
1,347
1,503
959
77,873
(25,891)
(9,981)
42,001
(1,973)
127,898
52,521
1,001
215
(145)
53,592
(15,628)
(6,964)
31,000
(5,524)
$000
446,260
55,221
(6,438)
(5,087)
(61,293)
428,663
(74,495)
354,168
15,504
(1,507)
25,022
86,089
229,060
354,168
$000
249,699
54,337
(17,589)
285
(28,772)
$000
200,532
60,803
(27,025)
(13,571)
(28,450)
257,960
192,289
(46,989)
(31,558)
210,971
15,504
(1,744)
25,022
(7,405)
160,731
15,504
(1,785)
25,022
(22,083)
179,594
210,971
144,073
160,731
$000
188,700
59,065
(35,719)
(10,683)
(23,025)
178,338
(32,367)
145,971
15,504
(1,785)
25,022
46
107,184
145,971
39,976
39,976
39,976
99.59cts 94.11cts 103.0cts
129.82cts 94.99cts 105.1cts
5.0cts
407cts
5.0cts
896cts
5.0cts
535cts
64.4p
3.1p
572p
9,010
1.57
3.08
9,080
1.55
3.22
59.9p
3.3p
332p
9,400
1.61
3.42
10,158
1.57
3.52
56.0p
3.0p
289p
10,950
1.41
3.48
9,735
1.84
3.34
39,976
77.2cts
78.5cts
14.0cts
370cts
38.4p
7.0p
186p
9,419
1.99
3.31
9,170
2.01
3.43
2006
IFRS
$000
79,094
26,270
2,312
368
90
29,040
(9,289)
(3,277)
16,474
(4,266)
$000
162,160
15,079
(5,454)
(3,256)
(21,152)
147,377
(25,421)
121,956
15,495
(1,387)
24,991
2,407
80,450
121,956
39,958
38.3cts
41.7cts
10.8cts
309cts
20.6p
5.5p
158p
9,020
1.96
3.53
9,141
1.86
3.66
6 Annual Report 2010 | Anglo-Eastern Plantations Plc
Estate Areas
7 Annual Report 2010 | Anglo-Eastern Plantations Plc
Location of Estates
8 Annual Report 2010 | Anglo-Eastern Plantations Plc
Business Review
Commodity Prices
2010 has been a good year for vegetable oil prices, including CPO. The CIF Rotterdam CPO price opened the year
2010 at $780/mt (2009: $495/mt) and ended the year at $1,195/mt (2009: $780/mt), averaging $892/mt for the year
(2009: $679/mt). Palm oil prices made a significant recovery during the year after hitting a low in 2H2008. The
increasing world population leading to higher demand and consumption, lack of agricultural land due to competition
among other grains, increasing renewable biofuel demand from Europe and USA due to higher crude oil price,
shortfall in soybean production together with the increased demand from China and India helped support the
commodity prices.
Rubber prices averaged $3,300/mt for 2010 (2009: $1,800/mt). Our small area of 426 ha of mature rubber
contributed a pre-tax profit of $3.1 million in 2010 (2009: $1.8 million).
Valuation
In 2010, the Group‟s estates were valued by qualified valuers during the year except for PT Tasik Raja and PT
Alno Agro Utama which were valued in January 2011. Valuation was based on market value.
Indonesia
FFB production in North Sumatra, which aggregates the estates of Tasik, Anak Tasik, Labuhan Bilik, Blankahan,
Rambung, Sungai Musam and CPA, produced 258,000mt in 2010 (2009: 266,000mt), 3% lower than 2009. The
decrease in production was mainly due to lower yield from 18% of the crops above 20 years of age. The lower
yielding areas will be replanted in the coming years.
FFB production in Bengkulu (South Sumatra), which aggregates the estates of Puding Mas and Alno as well as
three newly acquired land areas of KKST, ELAP and RAA, produced 211,200mt (2009: 233,000mt), 10% lower
than 2009. This was mainly attributable to the extremely high rainfall experienced in Bengkulu region which
impeded the harvesting operation and evacuation of FFB crop to oil mills. Concerted efforts are being made to
upgrade road condition and bridges in 2011 to improve accessibility during the rainy season.
FFB production in the Riau region, comprising Bina Pitri estates, produced 96,000mt in 2010 (2009: 87,000mt),
10% higher than 2009. The improved performance was a result of higher productivity arising from a fertilisation and
rehabilitation programme started in 2005/6, immediately after Bina Pitri was acquired. Also about 80% of the
planted areas have reached prime maturity.
Overall bought-in crops for Indonesian operations were at 432,800mt for the year 2010 (2009: 435,500mt). The
average oil extraction rate from our mills was 20.5% in 2010 (2009: 20.9%). The extraction rate was diluted as
many young oil palm trees reached maturity in 2010.
Malaysia
FFB production in 2010, at 34,000mt, was 6% above 32,000mt in 2009. The improved performance was due to the
effect of fertilisation programme and also the increase in matured areas. Malaysian estates contributed pre-tax
profit of $1.9 million, 171% higher than 2009.
Development
In 2010, the Group planted another 7,580 hectares mainly in Kalimantan compared to 4,479 hectares in 2009.
In 2010, we acquired PT Kahayan with an initial “Izin Lokasi” area of 17,500 hectares. The conversion permit is
pending with the Indonesian Forestry Department.
We have set a target to plant up to 10,000 hectares of oil palm per year for the next four years. This means we
should be able to increase the planted area of 52,000 hectares to 92,000 hectares by 2014.
9 Annual Report 2010 | Anglo-Eastern Plantations Plc
Directors’ Report
The Directors present their annual report on the affairs of the Group, together with the financial statements and
auditors‟ report, for the year ended 31 December 2010.
Principal activity
The Company is incorporated in the United Kingdom under the Companies Act 2006. The address of the registered
office is on the inside back cover.
The Company acts as a holding company and co-ordinates the businesses of its subsidiaries. At 31 December
2010, the core activities of the Group are the cultivation of oil palm and rubber in Indonesia and Malaysia. The
subsidiary undertakings which principally affected the profits or net assets of the Group in the year are listed in
note 25 to the consolidated financial statements.
Results and dividends
The audited financial statements for the year ended 31 December 2010 are set out on pages 23 to 50. The Group
profit for the year on ordinary activities before taxation was $85,038,000 (2009: $62,085,000) and the profit
attributable to ordinary shareholders was $51,329,000 (2009: $37,494,000). No interim dividend was paid. The
Directors recommend a final dividend of 5.0cts (2009: 5.0cts) to be paid to shareholders on the register on 27 May
2011. Shareholders may elect to receive their dividend in sterling as described on page 13.
Business Review
The review of the Group‟s business is set out on page 9. In addition, the prevailing risks and uncertainties of the
Group‟s business are:
Unexpected variations in crop, principally caused by unusual weather patterns.
Variations in commodity prices.
Variations in the rates of exchange of the Indonesian rupiah and the Malaysian ringgit against the US dollar,
which affect directly the local selling prices of the Group‟s products and the cost of imported inputs, as well as
the value of financial assets and liabilities as set out in note 23 of the consolidated financial statements.
Input cost inflation.
Changes in the policy of the Indonesian or Malaysian governments towards the plantation industry and towards
foreign investment e.g. export taxes.
Protectionist tariffs or controls against CPO for either economic or environmental reasons by importing
countries.
Negative media publicity of the RSPO and the sustainability of palm oil as a vegetable oil.
The Group‟s key performance indicators, being revenue, profit before tax, profit after tax, production volume,
extraction rates and yield are set out in “Financial record” on page 6 and in the business review on page 9.
Environmental and corporate responsibility
The Group‟s management and Directors take a serious view of their environmental and social responsibilities and
are fully committed to the principles developed by the RSPO, which was founded by a Group of growers,
processors, retailers and wildlife and conservation Groups to codify and promote best practices in the industry. The
key RSPO principles are set out on page 17 in “Statement on Corporate Governance”.
Financial risk
Information on financial instruments and other risks is set out in note 23 to the consolidated financial statements.
10 Annual Report 2010 | Anglo-Eastern Plantations Plc
Directors’ Report
Biological assets, property, plant and equipment
Information relating to changes in fixed assets is given in note 10 to the consolidated financial statements.
Directors
A full list of Directors appears on page 15. Mr. Donald H Low relinquished his position as Acting Chief Executive on
25 May 2010. On 1 September 2010, Dato‟ John Lim Ewe Chuan was appointed as Executive Director, Corporate
Finance and Corporate Affairs. Prior to 1 September 2010, Dato‟ John Lim was the Senior Independent Non-
Executive Director of the Company. All other Directors served throughout 2010. On 31 January 2011, Mr. Chan
Teik Huat retired as Non-Executive Chairman and Director of the Company. Madam Lim Siew Kim was appointed
as Non-Executive Chairman upon retirement of Mr. Chan. Madam Lim and Dato‟ John Lim will be submitting
themselves for re-appointment by shareholders.
Directors’ interests
The interests of the Directors together with those of their immediate families in the securities of the Company were
as shown below:
Directors' beneficial interests at 31 December
Madam Lim Siew Kim
Dato' John Lim Ewe Chuan
Nik Din Bin Nik Sulaiman
Drs. Kanaka Puradiredja
Chan Teik Huat (retired on 31 January 2011)
Donald H Low (resigned on 25 May 2010)
2010
Ordinary shares
20,521,314
-
-
-
-
-
2009
Ordinary shares
20,521,314
-
-
-
-
-
The interests disclosed for Madam Lim are held by Genton International Ltd and certain other companies of which
Madam Lim is the controlling shareholder.
There have been no changes in the interests of the Directors in the securities of the Company between 31
December 2010 and the date of this report. Other than Madam Lim, none of the Directors had any interest in the
securities of the Company between the date of their appointments and the date of this report.
Other than as set out in note 6 to the consolidated financial statements, no Director had a material interest in any
contract of the Company subsisting during, or at the end of the financial year.
Substantial share interests
As at 28 February 2011, the following interests had been notified to the Company, being interests in excess of 3%
of the issued ordinary share capital of the Company:
Name of holder
Genton International Limited
Alcatel Bell Pension Fund
KBC Securities NV
S N Roditi
Number
20,247,814
7,199,516
1,599,594
1,216,900
Percentage of voting rights held
51.21%
18.21%
4.05%
3.08%
11 Annual Report 2010 | Anglo-Eastern Plantations Plc
Directors’ Report
Share capital, restrictions on transfer of shares, arrangements affected by change of control and other
additional information
The Company has one class of share capital, ordinary shares. All the shares rank pari passu. The articles of
association of the Company contain provisions governing the transfer of shares, voting rights, the appointment and
replacement of Directors and amendments to the articles of association. These accords with usual English
company law provisions. There are no special control rights in relation to the Company‟s shares. There are no
significant agreements to which the Company is a party which take effect, alter or terminate in the event of a
change of control of the Company. There are no agreements providing for compensation for Directors or
employees on change of control.
Auditors
All of the current Directors have taken all the steps to make themselves aware of any information needed by the
Company‟s auditors for the purposes of their audit and to establish that the auditors are aware of the information.
The Directors are not aware of any relevant audit information of which the auditors are unaware.
BDO LLP have expressed their willingness to continue in office and a resolution to re-appoint them will be
proposed as Resolution 6 at the forthcoming annual general meeting.
Authority to allot shares
At the annual general meeting held on 24 May 2010 shareholders authorised the Board under the provisions of
section 551 of the Companies Act 2006 to allot relevant securities within specified limits for a period of five years.
Renewal of this authority on similar terms is being sought under Resolution 7 at the forthcoming annual general
meeting. Such authority will be limited to shares up to a maximum nominal amount of £3,331,356 which represents
33.3% of the Company‟s current issued share capital. The authority will last for up to five years from the date of the
resolution. The Directors do not have any present intention of issuing any shares under this authority.
A fresh authority is also being sought under the provisions of sections 570 and 573 of the Companies Act 2006 to
enable the Board to make an issue to existing shareholders without being obliged to comply with certain technical
requirements of the Companies Act, which create problems with regard to fractional entitlements and overseas
shareholders. In addition, the authority will empower the Board to make issues of shares for cash to persons other
than existing shareholders up to a maximum aggregate nominal amount of £499,703 representing 5% of the
current issued share capital. The authority will be expiring at the forthcoming annual general meeting or on 30 June
2011, whichever is earlier. Renewal of this authority on similar terms is being sought under Resolution 7 at the
forthcoming annual general meeting.
Scrip dividends
Resolution 8 to be proposed at the annual general meeting seeks renewal for a further five years of the authority
under which the Directors are able to offer shareholders a scrip dividend alternative. No scrip alternative is being
offered in respect of the 2010 final dividend.
Acquisition of the Company’s own shares and authority to purchase own shares
At 26 April 2011, the Directors had remaining authority under the shareholders‟ resolution of 24 May 2010, to make
purchases of 3,997,627 of the Company‟s ordinary shares. This authority expires on 30 June 2011. The Board will
only make purchases if they believe the earnings or net assets per share of the Company would be improved by
such purchases. All such purchases will be market purchases made through the London Stock Exchange.
Companies can hold their own shares which have been purchased in this way in treasury rather than having to
cancel them. The Directors would, therefore, consider holding the Company‟s own shares which have been
purchased by the Company as treasury shares as this would give the Company the flexibility of being able to sell
such shares quickly and effectively where it considers it in the interests of shareholders to do so. Whilst any such
shares are held in treasury, no dividends will be payable on them and they will not carry any voting rights.
12 Annual Report 2010 | Anglo-Eastern Plantations Plc
Directors’ Report
Acquisition of the Company’s own shares and authority to purchase own shares - continued
Resolution 9 to be proposed at the forthcoming annual general meeting seeks renewed authority to purchase up to
a maximum of 3,997,627 ordinary shares of 25p each on the London Stock Exchange, representing 10% of the
Company‟s issued ordinary share capital. The maximum price which may be paid for ordinary shares on any
exercise of the authority will be restricted to 5% above the average middle market quotations for such shares as
derived from the London Stock Exchange Daily Official List for the five business days before the purchase is made.
The maximum number of shares and the price range are stated for the purpose of compliance with statutory
requirements in seeking this authority and should not be taken as an indication of the level of purchases, or the
prices thereof, that the Company would intend to make.
Payment of dividends
The Group reporting currency is US dollars. However, shareholders can choose to receive dividends in US dollars
or in Sterling. In the absence of any specific instruction up to the date of closing the register, shareholders with
addresses in the UK are deemed to have elected to receive their dividends in Sterling and those with addresses
outside the UK in US dollars.
The Sterling equivalent dividend will be paid at the exchange rate ruling at the date of closure of the register.
Supplier payment policy
It is the Group‟s policy to pay suppliers promptly in accordance with agreed terms of payment. The Company had
no trade creditors at 31 December 2010 (2009: Nil).
Liability insurance for Company officers
As permitted by the Companies Act the Company has maintained insurance cover for the Directors against
liabilities in relation to the Company.
By order of the Board
Dato‟ John Lim Ewe Chuan
Executive Director, Corporate Finance and Corporate Affairs 26 April 2011
13 Annual Report 2010 | Anglo-Eastern Plantations Plc
Directors’ Responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with
applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the
directors are required to prepare the group financial statements in accordance with International Financial
Reporting Standards (“IFRSs”) as adopted by the European Union and have elected to prepare the company
financial statements in accordance with UK Generally Accepted Accounting Practice (UK GAAP). Under company
law the directors must not approve the financial statements unless they are satisfied that they give a true and fair
view of the state of affairs of the group and company and of the profit or loss for the group for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether they have been prepared in accordance with IFRSs as adopted by the European Union, subject
to any material departures disclosed and explained in the financial statements;
prepare a director‟s report and director‟s remuneration report which comply with the requirements of the
Companies Act 2006.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company‟s transactions and disclose with reasonable accuracy at any time the financial position of the company
and enable them to ensure that the financial statements comply with the Companies Act 2006 and, as regards the
group financial statements, Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets
of the company and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
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.
Website publication
The directors are responsible for ensuring the annual report and the financial statements are made available on a
website. Financial statements are published on the company‟s website in accordance with legislation in the United
Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in
other jurisdictions. The maintenance and integrity of the company's website is the responsibility of the directors.
The directors' responsibility also extends to the ongoing integrity of the financial statements contained therein.
Directors’ responsibilities pursuant to DTR4
The directors confirm to the best of their knowledge:
The group financial statements have been prepared in accordance with IFRSs as adopted by the European
Union and Article 4 of the IAS Regulation and give a true and fair view of the assets, liabilities, financial position
and profit and loss of the group.
The annual report includes a fair review of the development and performance of the business and the financial
position of the Group and the parent company, together with a description or the principal risks and
uncertainties that they face.
14 Annual Report 2010 | Anglo-Eastern Plantations Plc
Directors
Madam Lim Siew Kim (Non-Executive Chairman, aged 62) – Non-Executive Director since 29 November 1993
and appointed as Non-Executive Chairman on 31 January 2011.
Dato’ John Lim Ewe Chuan (Executive Director, Corporate Finance and Corporate Affairs, Chairman of
nomination and corporate governance committee, member of audit and remuneration committee, aged 61) –
Appointed 28 April 2008. On 1 September 2010 appointed as Executive Director. Prior to 1 September 2010, Dato‟
John Lim was the Senior Independent Non-Executive Director.
Chartered Certified Accountant; partner with UHY Hacker Young LLP, London, since 1998; previously he had a
professional accounting career in Singapore and the UK.
Nik Din Bin Nik Sulaiman (Senior Independent Non-Executive Director, Chairman of audit committee, member of
nomination & corporate governance committee and member of remuneration committee, aged 63) – appointed 1
April 2009.
Non-Executive Director of MTD Capital Berhad and MTD ACPI Engineering Berhad, both listed on Bursa Malaysia.
Drs. Kanaka Puradiredja (Independent Non-Executive Director, Chairman of remuneration committee, member of
audit committee and member of nomination & corporate governance committee, age 67) – appointed 1 August
2009.
Former Managing Partner and Chairman of KPMG Indonesia. Founded Kanaka Puradiredja Suhartono, an
Indonesian based accounting firm in 2000 and was a Senior Partner until October 2007. He was the former
chairman of the Institute of Audit Committee. Currently, he holds the positions of Chairman of the Honorary Board
of Indonesian Institute of Accountants and is an Independent Commissioner of PT Bakrieland Development Tbk
and PT Dharma Henwa Tbk, listed in Indonesia.
15 Annual Report 2010 | Anglo-Eastern Plantations Plc
Statement on Corporate Governance
During 2010 the Company has complied with the majority of the requirements of the Combined Code of Corporate
Governance. Where provisions of the Combined Code were not met during 2010, particular comment is made in
the statements below and in the Directors‟ remuneration report on pages 18 to 20.
The Board
As at 26 April 2011, the Board comprises one Executive and three Non-Executive Directors, two of whom are
Independent. Excluding Madam Lim and Dato‟ John Lim, the remaining two Non-Executive Directors are
considered by the Board to be Independent. Both Independent Non-Executive Directors have a wide range of
business interests beyond their position with the Company and the rest of the Board agree unanimously that they
have shown themselves to be fully independent. Dato‟ John Lim was appointed as Executive Director, Corporate
Finance and Corporate Affairs on 1 September 2010. Prior to 1 September 2010, Dato‟ John Lim was the Senior
Independent Non-Executive Director. Madam Lim Siew Kim was appointed as Non-Executive Chairman upon
retirement of Mr. Chan Teik Huat. Neither external search consultancy nor open advertising was used for such
appointment. The Nomination and Corporate Governance Committee is of the view that Madam Lim, who owns
52% of the Company‟s shares and was the Chairman of the Company from 1993 to 1998 is an appropriate
candidate for the position. The other members of the Board are satisfied that through the specific powers reserved
for the Board, and given the presence of the Independent Non-Executive Directors, there is a reasonable balance
of influence. A schedule of duties and decisions reserved for the Board and management respectively has been
adopted. The audit, remuneration and nomination & corporate governance committees have written terms of
reference which are available for inspection upon request.
Unless warranted by unusual matters, the Board normally meets three times each year. Otherwise all other matters
are dealt with by written resolution and telephone conference. During 2010, there were three meetings, attended by
all the Directors.
All the Independent Non-Executive Directors met on their own during 2010. The Chairman met all the Non-
Executive Directors, in the absence of the other Executive Directors, thrice in 2010.
Non-Executive Directors are appointed for two to three year terms. To maintain the vitality of the Board, the
Directors specify fixed terms of office for Non-Executives. However, the Board will review the position of each
Director for the normal three yearly re-election under the Articles.
New Directors do not receive formal training on the occasion of their appointment to the Board as all have previous
experience of public listed company Directorship and/or some of them have worked in financial or accounting
service industries.
In 2011 the Board conducted a review of its performance by discussion. No major issues arose from this review.
The nomination and corporate governance committee currently comprises Dato‟ John Lim (Chairman), Mr. Nik Din
Bin Nik Sulaiman and Drs. Kanaka Puradiredja. The committee had four meetings during 2010, attended by all
members. Dato‟ John Lim resigned as Chairman of nomination and corporate governance committee on 31 August
2010 and was re-appointed on 8 April 2011. Mr. Chan Teik Huat was appointed as Chairman on 1 September 2010
and retired on 31 January 2011.There were three audit committee meetings and three remuneration committees
meeting in 2010.
Relations with shareholders
Company executives and the Senior Independent Non-Executive Director attempt to contact principal shareholders
twice a year and at all times are pleased to speak to and meet any shareholder. Given the dispersion of Directors
and shareholders it is not possible for every Non-Executive Director to meet shareholders in the presence of
management.
A member of the audit, nomination and remuneration committees will be available at the 2011 annual general
meeting.
16 Annual Report 2010 | Anglo-Eastern Plantations Plc
Statement on Corporate Governance
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. Nik Din Bin Nik Sulaiman (Chairman), Dato‟ John Lim and Drs. Kanaka
Puradiredja. Mr. Nik Din Bin Nik Sulaiman is a Fellow member of the Association of Chartered Certified
Accountants (FCCA) and a member of the Malaysian Institute of Accountants (MIA), CA(M). He has extensive
experience in accounting, auditing and finance. The committee met prior to the completion of the 2010 accounts
and three times during 2010. Dato‟ John Lim stepped down as Chairman of Audit Committee on 31 August 2010.
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 and for
reviewing its effectiveness; 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 but cannot eliminate the
risk of loss. In 2010 and early 2011, for example, the audit committee reviewed, among other things, in relation to
risk – internal audit and succession planning.
The Board receives reports from executive management in Indonesia and Malaysia and focuses at each meeting
on the principal continuing risks to which the Group is exposed including, but not limited to, commodity price
movements, exchange rate movements, political and social change and government legislation.
The Group has internal auditors who visit operating sites in Indonesia and Malaysia regularly and provide wide
ranging reports.
Environmental and corporate responsibility
In 2004 a group of growers, processors, retailers and wildlife and conservation groups founded the “Roundtable for
Sustainable Palm Oil”, known as RSPO, to codify and promote best practices in the industry. The Group‟s
Management and Directors take a serious view of their environmental and social responsibilities and are fully
committed to the principles being developed by RSPO. These principles cover eight headings as follows:
• Transparency
• Compliance with local laws and regulations
• Commitment to long term economic and financial viability
• Use of appropriate best practices by growers and millers
• Environmental responsibility and conservation of natural resources and biodiversity
• Responsible consideration of individuals and communities affected by growers and mills
• Responsible development of new plantings
• Commitment to continuous improvement in key areas of activity.
Within these headings are 40 detailed principles. Among the most important are:
• Not to remove primary forest
• Not to use fire for clearing areas designated for new or replanting
• To follow accepted soil and water conservation practices
• To use agrochemicals in ways that do not endanger health or the environment and to promote non-chemical
methods of pest management
• To leave wild areas for wildlife corridors, water catchment and riparian protection
• Provide full treatment of mill effluent water
• Ensure the wishes of local communities and individuals are taken account of, and
• To pay to individuals with residual rights over land only freely agreed compensation, in addition to following
government land regulations.
17 Annual Report 2010 | Anglo-Eastern Plantations Plc
Directors’ Remuneration Report
This report by the remuneration committee has been approved by the Board of Directors for submission to
shareholders for their approval at the forthcoming annual general meeting.
Membership
The remuneration committee comprised during the year Drs. Kanaka Puradiredja (Chairman), Mr. Chan Teik Huat
(appointed on 1 September 2010 and retired on 31 January 2011), and Mr. Nik Din Nik Sulaiman (appointed on 1
September 2010). The committee met three times in 2010, attended by all members, Dato John Lim resigned as
Chairman of remuneration committee on 31 August 2010 and was re-appointed as a member on 8 April 2011.
Policy
The remuneration committee makes recommendations on senior management pay and conditions, after
consultation with the Chairman, and recommends to the Board the terms of Executive Directors.
Non-Executive Directors‟ remuneration is considered by the Board as a whole.
When determining executive director‟s remuneration, the committee reviews the pay policy and levels for
executives below the board, as well as pay and conditions of employees throughout the Group. Other factors
considered are individual performance, market conditions, the Company‟s performance and the need to maintain
an economic operation.
Components
Base salary
Base salaries are reviewed on an annual basis by the remuneration committee or when an individual changes
responsibilities. Non-Executive Directors receive no benefit other than a fee.
Bonus
The Group operates a bonus scheme for senior executives and managers of operating units, which is determined
by weighted performance criteria. Annual bonus for Executive Director is determined at the discretion of the Board.
Share options
The UK and overseas executive share option schemes of the Company are administered and supervised by a
committee consisting, in the majority, of Non-Executive Directors. These schemes are limited over their 10 year life
to issuing no more than 10% of the issued ordinary share capital of the Company from time to time. They provide
for options to be granted over treasury shares as well as over new shares. To avoid dilution, the Board intends
generally to follow the treasury share route.
Individual grants vest over three years. The total grant to each holder is determined by seniority and total market
value at date of grant is normally limited to two times base salary. Exercise of options is only permitted three years
after grant, provided that the holder remains an employee of the Group throughout the period. There are no other
performance criteria for exercise of options granted so far.
Pensions
There is no company-sponsored pension scheme for Executive Directors or Senior Executives and management.
Service contracts
All Directors, Executive and Non-Executive, have formal appointment letters. Those of the Non-Executives are all
for two year terms with notice periods of one month. Mr. Donald Low resigned from the Board and relinquished the
role of Acting Chief Executive upon the expiry of his contract on 25 May 2010. Notice periods for all other senior
management are generally two months.
18 Annual Report 2010 | Anglo-Eastern Plantations Plc
Directors’ Remuneration Report
Performance graph
The following graph shows the Company‟s share price performance compared to FTSE 100 index for the period of
2006 to 2010 (last 5 years) to indicate the volatility and trend of the market generally. Our share price performance
consistently outperformed the FTSE 100 index throughout these periods. In determining senior management
compensation, the remuneration committee is influenced by the operating performance of the Company and not
directly by the share price.
AEP Share Price Performance Vs FTSE 100 (5 yrs Chart)
______ Anglo-Eastern Plantations ________FTSE 100
Audited information
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 and outstanding at 31 December 2010 were:
Name of Director Date of Grant Exercise price Period of option
No. of ordinary shares under option
Chan Teik Huat*
30/4/2002
44.7p
30/4/2005-
29/4/2012
1/1/2010
(Exercised) 31/12/2010
30,600
-
30,600
The market price of the shares at 31 December 2010 was 730.00p and the range during 2010 was 380.00p to
740.00p.
* retired on 31 January 2011
19 Annual Report 2010 | Anglo-Eastern Plantations Plc
Directors’ Remuneration Report
Directors’ remuneration
The remuneration of all Directors who served during the year was:
Executive
Salary
Bonus
and
allowance
Benefits in
kind
$000
$000
$000
Fees
$000
Total
2010
$000
Total
2009
$000
Name of Director
Executive:
Dato'John Lim Ewe Chuan (1)
Donald H Low (2)
Non-Executive
Lim Siew Kim (3)
Nik Din Bin Nik Sulaiman (4)
Drs. Kanaka Puradiredja (5)
Chan Teik Huat (6)
Datuk Henry Chin (7)
27
-
16
19
19
51
-
25
59
-
-
-
17
-
Total
132
101
-
-
-
-
-
83
-
83
-
3
-
-
-
26
-
29
52
62
16
19
19
177
-
42
137
21
13
7
235
14
345
469
Notes:
(1) Appointed as Executive Director on 1 September 2010. Previously was the Senior Independent Non-Executive Director.
(2) Appointed on 26 August 2008, resigned on 25 May 2010
(3) Appointed on 29 November 1993 and appointed as Non-Executive Chairman on 31 January 2011
(4) Appointed on 1 April 2009
(5) Appointed on 1 August 2009
(6) Appointed to Non-Executive Chairman on 10 February 2010 and retired on 31 January 2011
(7) Retired on 19 June 2009
On behalf of the Board
Drs. Kanaka Puradiredja
Chairman, Remuneration Committee 26 April 2011
20 Annual Report 2010 | Anglo-Eastern Plantations Plc
Auditors’ Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
We have audited the financial statements of Anglo Eastern Plantations Plc for the year ended 31 December 2010
which comprise the consolidated statement of financial position and Company balance sheet, the consolidated
statement of comprehensive income, the consolidated statement of cash flow, the consolidated statement of
changes in equity and the related notes. The financial reporting framework that has been applied in the
preparation of the Group financial statements is applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union. The financial reporting framework that has been applied in preparation
of the Company financial statements is applicable law and United Kingdom Accounting Standards (United Kingdom
Generally Accepted Accounting Practice).
This report is made solely to the Company‟s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company‟s members
those matters we are required to state to them in an auditor‟s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the Company and the
Company‟s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the statement of directors‟ responsibilities, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility
is to audit and express an opinion on the financial statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board‟s
(APB‟s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB‟s website at
www.frc.org.uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the state of the group‟s and the parent company‟s affairs
as at 31 December 2010 and of the group‟s profit for the year then ended;
the group financial statements have been properly prepared in accordance with IFRSs as adopted by the
European Union;
the parent company financial statements have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006;
and, as regards the group financial statements, Article 4 of the IAS Regulation.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion:
the part of the directors‟ remuneration report to be audited has been properly prepared in accordance with the
Companies Act 2006; and
the information given in the directors‟ report for the financial year for which the financial statements are
prepared is consistent with the financial statements.
21 Annual Report 2010 | Anglo-Eastern Plantations Plc
Auditors’ Report (Continued)
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO-EASTERN PLANTATIONS PLC
(continued)
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit
have not been received from branches not visited by us; or
the parent company financial statements and the part of the directors‟ remuneration report to be audited are
not in agreement with the accounting records and returns; or
certain disclosures of directors‟ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Under the Listing Rules we are required to review:
the directors‟ statement, set out on page 14, in relation to going concern;
the part of the corporate governance statement relating to the company‟s compliance with the nine provisions
of the June 2008 Combined Code specified for our review; and
certain elements of the report to shareholders by the Board on directors‟ remuneration.
Nicholas Taylor (senior statutory auditor)
For and on behalf of BDO LLP, statutory auditor
55 Baker Street, London
United Kingdom
26 April 2011
22 Annual Report 2010 | Anglo-Eastern Plantations Plc
Consolidated Income Statement
For the year ended 31 December 2010
Continuing operations
Notes
2010
Result
before
BA
adjustment
$000
BA
adjustment
$000
Total
$000
Result
before
BA
adjustment
$000
2009
BA
adjustment
$000
Revenue
Cost of sales
Gross profit
Biological asset revaluation
2
187,233
(118,641)
68,592
-
-
-
187,233
150,080
(118,641)
(88,202)
68,592
61,878
movement (BA adjustment)
-
18,429
18,429
-
Total
$000
150,080
(88,202)
61,878
888
(2,923)
59,843
1,259
3,202
(2,219)
-
-
-
888
-
888
-
-
-
-
18,429
(3,655)
83,366
(2,923)
58,955
1,259
3,202
657
2,220
-
-
-
(1,205)
(2,219)
18,429
85,038
61,197
888
62,085
(4,589)
(22,573)
(16,667)
(267)
(16,934)
13,840
62,465
44,530
621
45,151
11,954
1,886
51,329
11,136
13,840
62,465
37,146
7,384
44,530
348
273
621
37,494
7,657
45,151
129.82cts
129.27cts
94.99cts
94.99cts
(3,655)
64,937
657
2,220
(1,205)
66,609
(17,984)
48,625
39,375
9,250
48,625
Administration expenses
Operating profit
Exchange profits
Finance income
Finance expense
Profit before tax
Tax expense
Profit for the year
Attributable to:
- Owners of the parent
- Non-controlling interests
Earnings per share for profit
attributable to the owners of the
parent during the year
- basic
- diluted
3
3
4
7
8
8
Earnings per share before BA adjustment are shown in note 8.
The accompanying notes are an integral part of this consolidated income statement.
23 Annual Report 2010 | Anglo-Eastern Plantations Plc
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2010
Profit for the year
Other comprehensive income:
Unrealised surplus/(loss) on revaluation of the estates
Profit on exchange translation of foreign operations
Deferred tax on revaluation
Other comprehensive income for the year
2010
$000
62,465
121,908
14,193
(26,482)
109,619
2009
$000
45,151
(12,320)
41,058
(6,286)
22,452
Total comprehensive income for the year
172,084
67,603
Attributable to:
- Owners of the parent
- Non-controlling interests
144,823
27,261
172,084
52,172
15,431
67,603
The accompanying notes are an integral part of this consolidated statement of comprehensive income and expense.
24 Annual Report 2010 | Anglo-Eastern Plantations Plc
Consolidated Statement of Financial Position
As at 31 December 2010
Non-current assets
Biological assets
Property, plant and equipment
Receivables
Current assets
Inventories
Tax receivables
Trade and other receivables
Cash and cash equivalents
Current liabilities
Loans and borrowings
Trade and other payables
Tax liabilities
Net current assets
Non- current liabilities
Loans and borrowings
Deferred tax liabilities
Retirement benefits - net liabilities
Net assets
Issued capital and reserves attributable to owners of the parent
Share capital
Treasury shares
Share premium reserve
Share capital redemption reserve
Revaluation and exchange reserves
Retained earnings
Non-controlling interests
Total equity
Note
10
10
11
12
13
14
15
14
16
17
18
18
2010
$000
68,593
376,173
1,494
446,260
6,820
7,342
3,356
70,871
88,389
(15,650)
(15,170)
(5,130)
(35,950)
52,439
(6,438)
(61,293)
(2,305)
428,663
15,504
(1,507)
23,935
1,087
86,089
229,060
354,168
74,495
428,663
2009
$000
47,608
200,414
1,677
249,699
3,720
5,181
2,582
63,761
75,244
(9,424)
(5,077)
(4,291)
(18,792)
56,452
(17,589)
(28,772)
(1,830)
257,960
15,504
(1,744)
23,935
1,087
(7,405)
179,594
210,971
46,989
257,960
The financial statements were approved by the Board of Directors and authorised for issue on 26 April 2011 and were signed on its behalf by
Dato‟ John Lim Ewe Chuan
The accompanying notes are an integral part of this consolidated statement of financial position.
25 Annual Report 2010 | Anglo-Eastern Plantations Plc
Consolidated Statement of Changes in Equity
For the year ended 31 December 2010
Treasury
shares
$000
Share
premium
$000
Share capital
redemption
reserve
$000
Revaluation
reserve
$000
Foreign
exchange
reserve
$000
Retained
earnings
$000
Non-
controlling
interests
$000
Total
$000
Total
equity
$000
(1,785)
23,935
1,087
79,582
(101,665)
144,073
160,731
31,558
192,289
Balance as at 1 January 2009
Items of other comprehensive income
Unrealised loss on revaluation of estates
Deferred tax on revaluation of assets
Gain on exchange translation
Net income recognised directly in equity
Profit for year
Total comprehensive income and expense for the
year
Share options exercised
Dividends paid
Share
capital
$000
15,504
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(10,867)
(1,536)
-
(12,403)
-
-
(3,618)
30,699
27,081
-
(12,403)
27,081
-
-
-
-
-
-
-
-
37,494
37,494
-
(1,973)
Balance at 31 December 2009
15,504
(1,744)
23,935
1,087
67,179
(74,584)
179,594
Items of other comprehensive income
Unrealised gain on revaluation of estates
Deferred tax on revaluation of assets
Gain on exchange translation
Net income recognised directly in equity
Profit for year
Total comprehensive income and expense for
the year
Acquisition of subsidiary
Share options exercised / Share based
payment expense
Dividends paid
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
237
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
105,296
(23,079)
-
82,217
-
-
-
11,277
11,277
-
82,217
11,277
-
-
-
-
-
-
-
-
-
-
51,329
51,329
-
110
(1,973)
Balance at 31 December 2010
15,504
(1,507)
23,935
1,087
149,396
(63,307)
229,060
26 Annual Report 2010 | Anglo-Eastern Plantations Plc
(10,867)
(5,154)
30,699
14,678
37,494
52,172
41
(1,973)
210,971
105,296
(23,079)
11,277
93,494
51,329
(1,453)
(1,132)
10,359
7,774
7,657
15,431
-
-
(12,320)
(6,286)
41,058
22,452
45,151
67,603
41
(1,973)
46,989
257,960
16,612
121,908
(3,403)
(26,482)
2,916
16,125
11,136
14,193
109,619
62,465
144,823
27,261
172,084
-
347
(1,973)
354,168
245
-
-
245
347
(1,973)
74,495
428,663
Consolidated Statement of Cash Flows
For the year ended 31 December 2010
Cash flows from operating activities
Profit before tax
Adjustments for:
BA adjustment
(Profit) / Loss on disposal of tangible fixed assets
Depreciation
Retirement benefit provisions
Net finance income
Tangible fixed assets written off
Unrealised gain in foreign exchange
Share based payments expense
Operating cash flow before changes in working capital
(Increase)/decrease in inventories
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Cash inflow from operations
Interest paid
Retirement benefit paid
Overseas tax paid
Net cash flow from operations
Investing activities
Acquisition of subsidiary
Property, plant and equipment
- purchase
- sale
Interest received
Net cash used in investing activities
2010
$000
2009
$000
85,038
62,085
(18,429)
(50)
8,953
334
(1,015)
12
(755)
112
74,200
(2,937)
(591)
5,939
76,611
(1,254)
(63)
(18,959)
56,335
(888)
21
5,070
336
(983)
-
-
11
65,652
476
1,561
(5,672)
62,017
(2,219)
-
(27,169)
32,629
(4,645)
-
(43,540)
(39,925)
222
2,220
108
3,202
(45,743)
(36,615)
27 Annual Report 2010 | Anglo-Eastern Plantations Plc
Consolidated Statement of Cash Flows
For the year ended 31 December 2010
Financing activities
Dividends paid by Company
Share options exercised
Repayment of existing long term loans
Finance lease repayment
Net cash used in financing activities
Increase / (Decrease) in cash and cash equivalents
Cash and cash equivalents
At beginning of year
Foreign exchange
At end of year
Comprising:
Cash at end of year
2010
$000
(1,973)
235
(4,925)
-
(6,663)
3,929
63,761
3,181
70,871
2009
$000
(1,973)
30
(8,638)
(13)
(10,594)
(14,580)
69,442
8,899
63,761
70,871
63,761
The accompanying notes are an integral part of this consolidated statement of cash flows.
28 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
1 Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations
(IFRS and IFRIC interpretations) issued by the International Accounting Standards Board (“IASB”) as adopted by the EU and with
those parts of the Companies Act 2006 applicable to companies preparing their accounts under IFRS. The principal accounting
policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all
the years presented, unless otherwise stated.
Changes in accounting standards
a) New standards, interpretations and amendments effective from 1 January 2010.
Revised IFRS 3 “Business combinations”: Much of the basic approach to business combination accounting required under the
previous version of IFRS 3 “Business combinations” has been retained in this revised version of the standard. However, in some
respects the revised standard may result in very significant changes to the account treatments previously adopted, including: The
requirement to write off all acquisition costs to profit or loss instead of including them in the cost of investment (which will have a
consequent effect on the value of goodwill recognised); the requirement to recognise an intangible asset even if it cannot be
reliably measured; and, an option to gross up the balance sheet for goodwill attributable to non-controlling interests (known
formerly as “minority interests”) on a combination-by-combination basis. There are also some significant changes in the
disclosure requirements of the revised standard. Contingent consideration in an IFRS 3(R) business combination will also now fall
within the scope of IAS 39 and be measured initially and subsequently at fair value with remeasurement differences being
recognised in profit or loss. Changes in the value of contingent consideration in a business combination falling with the scope of
the old IFRS 3 continue to be treated as adjustments to goodwill.
Amendments to IAS 27 Consolidated and Separate Financial Statements: This Amendment affects in particular the treatment of
non-wholly-owned subsidiaries. Transactions which increase or decrease the Group‟s interest in a subsidiary without altering
control will no longer give rise to changes in the carrying value of the subsidiary‟s assets or liabilities (including its associated
goodwill) and will not give rise to a gain or loss. Any difference between the consideration paid or received and the adjustment to
the carrying value of the non-controlling interest will be recognised directly in equity. In addition, total comprehensive income must
now be attributed to owners of the parent and to the non-controlling interests even if this results in the non-controlling interest
having a deficit balance. Previously, unfunded losses in such subsidiaries would be attributed entirely to the Group. The
Amendment does not require the restatement of previous transactions and has had no effect on the current financial year.
b) The following new standards, amendments and interpretations are also effective for the first time in these financial statements but
none have had a material effect on the Group.
•
•
•
•
•
•
•
Amendment to IAS 39 Financial Instruments: Recognition and Measurement: Eligible Hedged Items
IFRIC 17 Distributions of Non-cash Assets to Owners
Revised IFRS 1 First-time Adoption of international Financial Reporting Standards
IFRIC 18 Transfer of Assets from Customers
Improvements to IFRSs (2009)
Group Cash-settled Share-based Payment Transactions (Amendments to IFRS 2)
Additional Exemptions for First-time Adopters (Amendments to IFRS 1)
None of the other new standards, interpretations and amendments effective for the first time from 1 January 2010, have had a material
effect on the financial statements.
c) New standards, interpretations and amendments not yet effective.
The following new standards, interpretations and amendments, which have not been applied in these financial statements, will or
may have an effect on the Group's future financial statements:
•
•
•
•
•
Amendments to IFRS 1 – limited exemption from Comparative IFRS 7 Disclosures for First-time Adopters (effective for
accounting periods beginning on or after 1 July 2010).
Amendments to IFRS 1 – amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting
periods beginning on or after 1 January 2011)
Amendments to IFRS 1 – replacement of „fixed dates‟ for certain exceptions with „the date of transition to IFRSs‟ and
additional exemption for entities ceasing to suffer from severe hyperinflation (effective for accounting periods beginning on
or after 1 July 2011)
Amendments to IFRS 3 – amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting
periods beginning on or after 1 July 2010)
Amendments to IFRS 7 – amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting
periods beginning on or after 1 January 2011)
29 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
1 Accounting policies - continued
•
•
•
•
•
•
Amendments to IFRS 7 – amendments enhancing disclosures about transfers of financial assets (effective for accounting
periods beginning on or after 1 July 2011)
IFRS 9 Financial instruments – classification and measurement (effective for accounting periods beginning on or after 1
January 2013)
Amendments to IAS 1 – amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting
periods beginning on or after 1 January 2011)
Amendments to IAS 12 – limited scope amendment (recovery of underlying assets) (effective for accounting periods
beginning on or after 1 January 2012)
Amendments to IAS 24 – revised definition of related parties (effective for accounting periods beginning on or after 1
January 2011)
Amendments to IAS 27 – amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting
periods beginning on or after 1 July 2010)
Other than IFRS7, which will impact the level of disclosure, none of the other new standards, interpretations and amendments,
which are effective for periods beginning after 1 January 2011 and which have not been adopted early, are expected to have a
material effect on the Group's future financial statements.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its
subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to govern the financial and
operating policies of an investee entity so as to obtain benefits from its activities.
Business combinations
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the
consolidated statement of financial position, the acquiree‟s identifiable assets, liabilities and contingent liabilities are initially recognised
at their fair values at the acquisition date. Acquisitions of entities that comprise principally land with no active plantation business do
not represent business combinations, in such cases, the amount paid for each acquisition is allocated between the identifiable
assets/liabilities at the acquisition date.
Foreign currency
The individual financial statements of each subsidiary are presented in the currency of the country in which it operates (its functional
currency) with the exception of the Company and its UK subsidiaries which are presented in US dollars. The presentation currency for
the consolidated financial statements is also US dollars, chosen because the price of the bulk of the Group‟s products are ultimately
denominated in dollars.
On consolidation, the results of overseas operations are translated into US dollars at average exchange rates for the year unless
exchange rates fluctuate significantly in which case the actual rate is used. All assets and liabilities of overseas operations are
translated at the rate ruling at the balance sheet date. Exchange differences arising on re-translating the opening net assets at opening
rate and the results of overseas operations at actual rate are recognised directly in equity (the “foreign exchange reserve”). Exchange
differences recognised in the income statement of Group entities‟ separate financial statements on the translation of long-term
monetary items forming part of the Group‟s net investment in the overseas operation concerned are reclassified to the foreign
exchange reserve if the item is denominated in the presentational currency of the Group or of the overseas operation concerned.
On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that
operation up to date of disposal are transferred to the income statement as part of the profit or loss on disposal.
All other exchange profits or losses are credited or charged to the income statement.
Revenue recognition
Revenue includes
-
amounts receivable for produce provided in the normal course of business, net of sales related taxes and levies, including export
taxes;
amounts received for sales of palm kernel shell, rubber wood and other income of an operating nature.
-
Sales of CPO and palm kernel are recognised when goods are delivered or allocated to a purchaser. Delivery or allocation does not
take place until contracts are paid for. Sales of rubber are recognised on signing of sales contract.
Share based payments
Outstanding share options are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant.
This fair value is expensed on a straight-line basis over the vesting period, based on the Group‟s estimate of shares that will eventually
vest and adjusted for the effect of non market-based vesting conditions.
30 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
1 Accounting policies -continued
Fair value is measured by use of a binomial model. The expected life used in the model has been adjusted, based on management‟s
best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.
Provided that all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are
satisfied.
Capitalisation on development activities
Interest capitalisation
Interest on third party 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. These interest rates are booked at the rate prevailing at the time.
Plantation development
Plantation development comprises cost of planting and development on oil palm and other plantation crops. Costs of new planting and
development of plantation crops are capitalised from the stage of land clearing up to the stage of maturity or subject to certificate of
Land Exploitation Rights (HGU) being obtained, whichever is earlier. The costs of immature plantations consist mainly of the
accumulated cost of land clearing, planting, fertilising and maintaining the plantation, borrowing costs and other indirect overhead costs
up to the time the trees are harvestable and to the extent appropriate.
Tax
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 substantively enacted by the balance sheet date.
Dividends
Equity dividends are recognised when they become legally payable. The Company pays only one dividend each year as a final
dividend which becomes legally payable when approved by the shareholders at the next following annual general meeting.
Biological assets, property, plant and equipment
Estates, which comprise biological assets, and property plant and equipment, are shown at fair values in use, which are calculated
internally every year and reviewed by an external valuer every five years. Value in use is calculated based on the present value of the
local currency cash flows of each estate over the next nineteen years for Indonesian estates, including replanting where required. The
cash flows for the Malaysian estates are over a period of thirty years.
Any surplus or deficit on revaluation of property, plant and equipment 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 income statement.
On the disposal or recognition of a provision for impairment of a revalued estate, any related balance remaining in the revaluation and
exchange reserve is transferred to retained earnings as a movement in reserves.
Oil mills, which are part of property, plant and equipment, are shown 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. Oil mills are depreciated at 5% per annum. The Malaysian leasehold land is depreciated over the remaining term of the
lease. Mature plantations in Malaysia are depreciated at 5% per annum.
Within the estate valuations described above the value of biological assets is estimated separately as a proportion of total estate value
and, as required by IAS41, the movement in valuation surplus of biological assets is charged or credited to the income statement for
the relevant period (BA adjustment).
Leased assets
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 in accordance with 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 income statement to produce a
constant rate of charge on the balance of capital repayments outstanding. There are no operating leases.
Impairment
Impairment tests on tangible assets are undertaken annually on 31 December. Where the carrying value of an asset exceeds its
recoverable amount (i.e. the higher of value in use or fair value, less costs to sell), the asset is written down accordingly. Impairment
charges are included in the administrative expenses in the income statement, except to the extent they reverse gains previously
recognised in the statement of recognised income and expense.
31 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
1 Accounting policies - continued
Inventories
Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. Cost comprises all costs of
purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Weighted average cost is used to determine the cost of ordinarily interchangeable items.
All produce inventories are already in processed form as oil or kernel and therefore the requirement under IAS41 to value agricultural
produce at market value, does not apply.
Financial assets
All the Group's receivables and loans are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They are recognised at fair value at inception and subsequently at amortised cost. No impairment provisions have been
considered necessary.
Cash and cash equivalents consist of cash in hand and short term deposits at banks with an original maturity of less than three months.
Bank overdrafts are shown within loans and borrowings under current liabilities on the balance sheet.
There are no assets in hedging relationships and no financial assets or liabilities available for sale.
Financial liabilities
All the Group's financial liabilities are non-derivative financial liabilities.
Bank borrowings and long term development loans are initially recognised at fair value and subsequently at amortised cost, which is
the total of proceeds received net of issue costs. Finance charges are accounted for on an accruals basis and charged in the income
statement, unless capitalised according to the policy as set out under Interest capitalisation above.
Trade and other payables are shown at fair value at recognition and subsequently at amortised cost.
Deferred tax
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the balance sheet differs from its
tax base except for differences in the initial recognition of an asset or liability in a transaction which is not a business combination and
at the time of the transaction affects neither accounting nor taxable profit.
Recognition of deferred tax assets is restricted to those instances where it is possible that taxable profit will be available against which
the difference can be utilised. Deferred tax is recognised on temporary differences arising on property revaluation surpluses.
Deferred tax is determined using the tax rates that are enacted or substantively enacted at the balance sheet date. Deferred tax is
charged or credited in the income statement, except when it relates to items charged or credited directly to equity, such as
revaluations, in which case the deferred tax is also dealt with in equity; in this case assets and liabilities are offset.
Retirement benefits
Contributions to defined contribution pension schemes are charged to the income statement in the year to which they relate.
The Group operates a number of defined benefit pension schemes in respect of its Indonesian operations. The pension costs of these
schemes charged to the income statement comprise the annual payments to the schemes together with any provision required for any
shortfall in funding as disclosed by annual valuations of the schemes as advised by the schemes‟ actuaries.
Treasury shares
Consideration paid or received for the purchase or sale of the Company‟s own shares for holding in treasury is recognised directly in
equity, where the cost is presented as the treasury share reserve. Any excess of the consideration received on the sale of treasury
shares over the weighted average cost of shares sold, is taken to the share premium account.
Any shares held in treasury are treated as cancelled for the purpose of calculating earnings per share.
Critical accounting estimates and judgements
The preparation of the Group financial statements in conformity with IFRS requires the use of estimates and assumptions that affect
the reported assets and liabilities and reported revenue and expenses. Actual results could differ from those estimates and accordingly
they are reviewed on an on-going basis. The main areas in which estimates are used are: fair value of biological assets, property,
plant and equipment, deferred tax and retirement benefits.
Revisions to accounting estimates are recognised in the period in which the estimate is revised or the revision affects only that period,
or in the period of revision and future periods if the revision affects both and current and future periods.
32 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
1 Accounting policies - continued
Assumptions regarding the valuation of biological assets, property, plant and equipment are set out in note 10. The Group's policy with
regard to impairment of such assets is set out above.
Details on deferred tax are given in note 16 and retirement benefits in note 17.
2 Revenue
Sales of produce
Other income
3
Finance income and expense
Finance income
Finance expense
Interest payable on:
Development loans - (note 14)
Interest capitalised on loans related to field development and construction in progress
Net finance income recognised in income statement
4
Profit before tax
Profit before tax is stated after charging
Depreciation (note 10)
Staff costs (note 6)
Auditors‟ remuneration
- Group audit (Company $9,300 (2009: $8,800))
- audit of subsidiaries
- Total
2010
$000
186,082
1,151
187,233
2010
$000
2,220
1,205
-
1,205
1,015
2010
$000
8,953
17,803
82
52
134
2009
$000
148,976
1,104
150,080
2009
$000
3,202
2,260
(41)
2,219
983
2009
$000
5,070
14,415
82
50
132
33 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
5. Segment Information
2010
Total sales revenue (all external)
Other income
Total revenue
Profit/(loss) before tax
BA Movement
Profit for the year before tax per consolidated income
statement
Total Assets
Non-Current Assets
2009
Total sales revenue (all external)
Other income
Total revenue
North
Sumatra
$000
80,401
660
81,061
35,003
Bengkulu
$000
57,998
123
58,121
17,401
South
Sumatra
$000
-
-
-
-
Riau
$000
41,352
350
41,702
13,879
Bangka
$000
Kalimantan
$000
-
-
-
-
-
-
-
-
186,131
155,813
174,024
137,070
32,275
30,857
57,032
50,045
$000
$000
$000
6,618
6,537
$000
38,045
36,367
$000
$000
70,154
584
70,738
44,547
-
44,547
-
-
-
-
30,191
358
30,549
10,897
-
-
-
-
-
-
-
-
Total
Indonesia
$000
179,751
1,133
180,884
66,283
494,125
416,689
$000
144,892
942
145,834
61,434
Malaysia
$000
6,331
8
6,339
1,616
36,835
28,208
$000
4,084
162
4,246
426
UK
$000
-
10
10
(1,290)
3,689
1,363
$000
-
-
-
(663)
Profit/(loss) before tax
BA Movement
Profit for the year before tax per consolidated income
30,094
20,443
statement
Total Assets
Non-Current Assets
137,127
101,182
84,455
66,462
15,695
15,047
41,832
30,782
1,572
1,528
13,572
13,067
294,253
228,068
27,761
19,954
2,929
1,677
34 Annual Report 2010 | Anglo-Eastern Plantations Plc
Total
$000
186,082
1,151
187,233
66,609
18,429
85,038
534,649
446,260
$000
148,976
1,104
150,080
61,197
888
62,085
324,943
249,699
Notes to the Consolidated Financial Statements
5 Segment information - continued
In year 2010, revenues from 4 customers of the Indonesian segment represent approximately $118.1m (2009: $118.2m) of the Group‟s
total revenue. An analysis of these revenues is provided below:
Major customers
Customer 1
Customer 2
Customer 3
Customer 4
Total
2010
2009
$m
40.7
26.9
26.3
24.2
118.1
%
21.7
14.4
14.0
12.9
63.0
$m
41.4
36.2
24.3
16.3
118.2
%
27.6
24.1
16.2
10.9
78.8
Save for a small amount of rubber, all the Group‟s operations are devoted to oil palm. Therefore the Group‟s report is by geographical
area, as the estates in each specific area tend to be at the same stage of development and each area tends to have different
agricultural conditions.
6
Employees' and Directors' remuneration
Average numbers employed (primarily overseas) during the year
- full time
- casual
Staff costs (including Directors) comprise:
Wages and salaries
Social security costs
Retirement benefit costs (note 17)
Share based payments expenses
2010
number
2009
number
3,802
8,512
2010
$000
17,128
229
334
112
17,803
3,640
6,934
2009
$000
13,758
224
422
11
14,415
The information required by the Companies Act and the listing rules of the Financial Services Authority is contained in the Directors'
report on remuneration on pages 18 - 20 of which the information on pages 19 and 20 has been audited.
Directors emoluments
Pension contributions
Remuneration expense for key management personnel
2010
$000
341
4
345
114
2009
$000
469
-
469
372
Executive Directors are considered to be the only key management personnel: their remuneration is shown on page 20.
35 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
7
Tax
Foreign corporation tax - current year
Deferred tax adjustment - current year
Total tax charge for year
2010
$000
18,017
4,556
22,573
2009
$000
16,034
900
16,934
Both corporation tax rates in Indonesia and Malaysia are at 25%. The standard rate of corporation tax in the UK for the current year is
28%. The Group‟s charge for the year differs from the standard UK rate of corporation tax for the reasons below.
Profit before tax
Profit before tax multiplied by standard rate of UK corporation tax of 28% (2009: 28%)
Effects of:
Rate adjustment relating to overseas profits
Group accounting adjustments not subject to tax
Expenses not allowable for tax
Temporary differences
Utilisation of tax losses brought forward
Income not subject to tax
Losses not offset against fellow subsidiary profits
Foreign corporation tax charge for year
Deferred tax adjustments (note 16)
Total tax charge for year
8
Earnings per ordinary share (EPS)
Profit for the year attributable to owners of the Company before BA adjustment
Net BA adjustment
Earnings used in basic and diluted EPS
Weighted average number of shares in issue in year
- used in basic EPS
- dilutive effect of outstanding share options
- used in diluted EPS
Basic EPS before BA adjustment
Basic EPS after BA adjustment
Dilutive EPS before BA adjustment
Dilutive EPS after BA adjustment
2010
$000
85,038
23,811
(2,719)
1,522
176
85
(65)
(237)
-
22,573
-
22,573
2010
$000
39,375
11,954
51,329
Number
‘000
39,539
166
39,705
2009
$000
62,085
17,384
(285)
(583)
178
(724)
(130)
-
194
16,034
900
16,934
2009
$000
37,146
348
37,494
Number
„000
39,470
-
39,470
99.59cts
129.82cts
94.11cts
94.99cts
99.17cts
129.27cts
94.11cts
94.99cts
In 2009, options over 243,300 ordinary shares have been excluded from the calculation of diluted earnings per share. They were
considered anti-dilutive as the weighted average exercise price was above the market average price in 2009.
9
Dividends
Paid during the year
Final dividend of 5.0 cts per ordinary share for the year ended 31 December 2009 (2008:
5.0 cts)
2010
$000
2009
$000
1,973
1,973
Proposed final dividend of 5.0 cts per ordinary share for the year ended 31 December 2010
(2009: 5.0 cts)
1,977
1,973
The proposed dividend for 2010 is subject to shareholders‟ approval at the forthcoming annual general meeting and has not been
included as a liability in these financial statements.
36 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
10 Biological assets, property, plant and equipment
Cost or valuation
At 1 January 2009
Exchange translations
Revaluations
Additions
Development costs capitalised
Disposals
At 31 December 2009
Exchange translations
Reclassification
Revaluations
Additions
Development costs capitalised
Acquisition of a subsidiary
Written off
Disposals
At 31 December 2010
Accumulated depreciation and impairment
At 1 January 2009
Exchange translations
Revaluations
Charge for the year
Disposals
At 31 December 2009
Exchange translations
Revaluations
Charge for the year
Disposals
At 31 December 2010
Carrying amount
At 31 December 2008
At 31 December 2009
At 31 December 2010
Non-
biological
plantation
assets
$000
143,349
16,070
(15,935)
12,443
26,039
(183)
181,783
10,955
(8,301)
118,089
14,358
24,427
4,890
(12)
(145)
346,044
-
-
3,218
(3,218)
54
54
(54)
5,637
(5,637)
-
-
Total
property
plant and
equipment
$000
Biological
assets
$‟000
164,509
19,369
(18,739)
13,886
26,039
(183)
204,881
13,780
-
118,089
19,253
24,427
4,890
(12)
(184)
385,124
(4,497)
1,052
3,217
(4,293)
54
(4,467)
(2,557)
5,637
(7,576)
12
(8,951)
38,843
7,877
888
-
-
-
47,608
2,556
-
18,429
-
-
-
-
-
68,593
-
-
777
(777)
-
-
-
1,377
(1,377)
-
-
Mills
$'000
21,160
3,299
(2,804)
1,443
-
-
23,098
2,825
8,301
-
4,895
-
-
-
(39)
39,080
(4,497)
1,052
(1)
(1,075)
-
(4,521)
(2,503)
-
(1,939)
12
(8,951)
Total
$'000
203,352
27,246
(17,851)
13,886
26,039
(183)
252,489
16,336
-
136,518
19,253
24,427
4,890
(12)
(184)
453,717
(4,497)
1,052
3,994
(5,070)
54
(4,467)
(2,557)
7,014
(8,953)
12
(8,951)
143,349
181,837
346,044
16,663
18,577
30,129
160,012
200,414
376,173
38,843
47,608
68,593
198,855
248,022
444,766
The Group‟s estates (comprising biological assets, non-biological plantation assets, plantation infrastructure and oil mills) were valued
by qualified valuers during the year except for estates in PT Tasik Raja and PT Alno Agro Utama, which were valued in January 2011.
Indonesian estates were valued on a market value basis by qualified valuer, Doli Siregar & Rakan, an independent firm of property
consultants. The assumptions applied in the valuation were, inter alia, an assumed CPO selling price of $550/mt and discount rates of
17% for planted estates and 18% for developing estates taking into consideration the age of plants ranging from 8 years to 27 years.
Malaysia‟s estates were valued by PPC International Sdn Bhd, an independent firm of chartered surveyors in December 2010 on a
market value basis. The Directors are of the opinion that market value for these estates have not changed significantly from the date of
valuation obtained to 31 December 2010. In 2009, the Directors valued the estates at value in use derived from discounted estimated
future cash flows of each estate. Among the principal assumptions underlying the calculations were an assumed CPO selling price CIF
Rotterdam of $550/mt and a discount rate of 16.25%. Biological assets are estimated as a proportion of these valuations.
The estates include $72 (2009: $40,745) of interest and $4,621,000 (2009: $3,882,000) of overheads capitalised during the year in
respect of expenditure on estates under development.
Original cost and depreciation at historical rates of exchange of the estates at 31 December 2010:
Original cost
Cumulative depreciation based on original cost
37 Annual Report 2010 | Anglo-Eastern Plantations Plc
2010
Estates
$000
273,709
(47,755)
225,954
2010
Mills
$000
37,520
(13,915)
23,605
2010
Total
$000
311,229
(61,670)
249,559
2009
Total
$000
266,133
(52,717)
213,416
Notes to the Consolidated Financial Statements
10 Biological assets, property, plant and equipment - continued
The Indonesian authorities have granted certain land exploitation rights and operating permits for the estates. In the case of
established estates in North Sumatra these rights and permits expire between 2023 and 2038 with rights of renewal thereafter. In the
case of estates in Bengkulu land titles were issued between 1994 and 2008 and the titles expire between 2028 and 2034 with rights of
renewal thereafter for two consecutive periods of 25 and 35 years respectively. In the case of estates in Riau, land titles were issued in
2004 and expire in 2033. In the case of PT Cahaya Pelita Andhika‟s estate acquired in 2007 land titles were issued in 1996 to expire in
2029.
In both cases there are subsequent rights of renewal similar to those in Bengkulu. 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 Receivables: non-current
Due from non-controlling interests
Due from village smallholder schemes
2010
$000
1,363
131
1,494
2009
$000
1,363
314
1,677
The non-controlling interests in PT Alno Agro Utama and PT Cahaya Pelita Andhika have acquired their interests on deferred terms
(see note 23, Credit risk).
Amounts due from village smallholder schemes represents expenditure on planting and maintaining to maturity oil palms on communal
land owned by 21 separate villages neighbouring the Group's estates.
The book values of the amounts due from minority shareholders and village smallholder schemes approximate their fair values.
12
Inventories
Estate and mill consumables
Processed produce for sale
13 Trade and other receivables
Trade receivables
Other receivables
Prepayments and accrued income
The carrying amount of trade and other receivables approximates their fair value.
14 Loans and borrowings
2010
$000
4,856
1,964
6,820
2010
$000
617
2,359
380
3,356
2009
$000
2,530
1,190
3,720
2009
$000
362
1,978
242
2,582
2010
under one
year
$000
800
10,350
4,500
15,650
more than
one year
$000
400
6,038
-
6,438
2009
under one
year
$000
800
8,624
-
9,424
more than
one year
$000
1,200
16,389
-
17,589
6,438
-
6,438
11,150
6,439
17,589
Long term development loan (a)
Long term development loan (b)
Revolving credit (c)
Total bank loans
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
38 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
14 Loans and borrowings – continued
(a)
(b)
(c)
The long term development loan of $1,200,000 (2009: $2,000,000), to part finance construction of a mill, was made in
September 2006 to, and secured by a fixed and floating charge on the land titles and other assets of, PT Bina Pitri Jaya. This
loan bears interest rate at 5.5% above the Bank‟s prime lending rate per annum. The loan is repayable in sixteen quarterly
instalments of $200,000 from July 2008 to April 2012.
The long term development loan of $16,388,000 (2009: $25,013,000) to finance the purchase and development of new land or
developed estates, was made in June and July 2007. It is secured by a fixed and floating charge on the land titles and other
assets of PT Alno Agro Utama and of PT Tasik Raja (Tasik) and is guaranteed by Tasik and by the Company. Interest is at 3%
over SIBOR and premium charges with percentage depend on bank liquidity. Average interest in 2010 was about 4.8% (2009:
6.3%). The loan is repayable from September 2008 to June 2012.
The revolving credit facility („RCF”) is the extension of development loan as disclosed in Note 14(b) above and is available up to
a maximum amount of RP120 billion, with the maximum drawdown period of 3 months and the limit of the RCF can be utilised
for the banking sub-facility in the form of uncommitted revolving credit facility (available for drawdown in USD currency)
available up to maximum sub-limit amount of RP108 billion with the maximum drawdown period of 3 months. The security for
this facility is the same as the development loan disclosed in the Note 14(b) above.
15 Trade and other payables
Trade creditors
Other creditors
Accruals
16 Deferred tax liabilities
Year end (liability) relates to
Revaluation surplus
Unutilised tax losses
Other temporary differences
Movement:
At beginning of year (liability)
(Charge) to
- income statement
- equity: revaluation and exchange reserve
Exchange adjustment
At end of year (liability)
Details of movement in 2010
Revaluation surplus
Accelerated capital allowances
Employee pension liabilities
Available losses
Details of movement in 2009
Revaluation surplus
Accelerated capital allowances
Employee pension liabilities
Other temporary and deductible differences
Available losses
39 Annual Report 2010 | Anglo-Eastern Plantations Plc
2010
$000
4,766
6,811
3,593
15,170
2010
$000
(62,004)
277
434
(61,293)
2009
$000
2,773
1,092
1,212
5,077
2009
$000
(27,600)
208
(1,380)
(28,772)
(28,772)
(28,450)
(4,556)
(26,482)
(1,483)
(61,293)
(Charged)/
credited
to income
2010
$000
(4,575)
(431)
231
219
(4,556)
(Charged)/
credited to
income
2009
$000
(517)
(16)
60
(480)
53
(900)
(Liability)
2010
$000
(62,004)
(530)
964
277
(61,293)
Liability
2009
$000
(27,600)
(96)
488
(1,772)
208
(28,772)
(900)
(6,286)
6,864
(28,772)
(Charged)/
credited to
reserves
2010
$000
(26,482)
-
-
-
(26,482)
(Charged)/
credited to
reserves
2009
$000
(6,286)
-
-
-
-
(6,286)
Notes to the Consolidated Financial Statements
16 Deferred tax liabilities (Continued)
A deferred tax asset has not been recognised for the following items:
Unutilised tax losses
Accelerated capital allowances
2010
$000
1,799
653
2009
$000
1,180
1,187
The Group does not recognise the tax losses of certain companies in the Group as tax assets as the future recoverability of the losses
cannot be certain.
17 Retirement benefits
The Group maintains a defined benefit funded pension scheme for some employees in Indonesia. The scheme is valued by an actuary
at the end of each financial year. Any excess of the actuarial liability over the fund assets is provided and charged to the income
statement. The major assumptions used by the actuary were:
Inflation
Rate of increase in wages
Discount rate
2010
7%
8%
8.5%
2009
10%
8%
12%
2008
10%
8%
12%
2007
10%
10%
12%
2006
10%
10%
12%
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 and charged in the income
statement based on individual employees‟ service up to the end of the financial year.
Defined
benefit
- funded
schemes
2010
$000
Defined
benefit –
unfunded
schemes
2010
$000
Defined
benefit
- funded
schemes
2009
$000
Defined
benefit –
unfunded
schemes
2009
$000
Total
2010
$000
Total
2009
$000
Reconciliation to consolidated statement of
financial position
Scheme assets (all cash)
Scheme (liabilities)
Net liabilities
Reconciliation of scheme assets
At beginning of year
Exchange gain
Contributions by Group
Income
Benefits paid
Expenses
At end of year
Reconciliation of scheme (liabilities)
At beginning of year
Exchange loss
Current service (cost)
Benefits paid
At end of year
2,060
(2,198)
(138)
1,675
75
243
128
(55)
(6)
2,060
(1,781)
(80)
(392)
55
(2,198)
The charge/(credit) for the year for retirement benefit comprises:
Defined benefit funded scheme
Current service cost
Expenses
Income
Defined benefit unfunded scheme
Current service cost
Defined contribution schemes
Contributions
40 Annual Report 2010 | Anglo-Eastern Plantations Plc
-
(2,167)
(2,167)
2,060
(4,365)
(2,305)
1,675
(1,781)
(106)
-
(1,724)
(1,724)
1,675
(3,505)
(1,830)
-
-
-
-
-
-
-
(1,724)
(59)
(447)
63
(2,167)
1,675
75
243
128
(55)
(6)
2,060
(3,505)
(139)
(839)
118
(4,365)
1,241
222
162
138
(84)
(4)
1,675
(1,408)
(243)
(214)
84
(1,781)
2010
$000
149
6
(128)
27
307
-
334
-
-
-
-
-
-
-
(1,327)
(160)
(342)
105
(1,724)
2009
$000
214
4
(138)
80
1,241
222
162
138
(84)
(4)
1,675
(2,735)
(403)
(556)
189
(3,505)
2008
$000
275
5
(112)
168
342
308
-
422
57
533
Notes to the Consolidated Financial Statements
18 Share capital
Ordinary shares of 25p each
Beginning and end of year
Authorised
Number
Issued and
fully paid
Number
Authorised
£000
Issued and
fully paid
£000
Authorised
$000
Issued and
fully paid
$000
60,000,000
39,976,272
15,000
9,994
23,865
15,504
2010
Number
506,000
(68,800)
437,200
2009
Number
518,000
(12,000)
506,000
Treasury shares
Beginning of year
Share options exercised
End of year
Market value of treasury shares:
Beginning of year (385.0p /share)
End of year (730.0p/share)
No treasury shares were purchased in 2010 (2009: Nil).
19 Share based payment
Cost
2010
$’000
(1,744)
237
(1,507)
Cost
2009
$‟000
(1,785)
41
(1,744)
3,136
4,997
Options have been granted under the Company's 1994 Executive Share Option Scheme and Overseas Share Option Scheme and the
2005 Unapproved Executive Share Option Scheme to subscribe for ordinary shares of 25p each of the Company as follows:
Date of
grant
Price
per share
16.04.02
21.05.03
13.05.04
19.05.06
09.10.06
21.05.07
03.06.08
44.7p
108.5p
181.2p
234.0p
323.25p
360.3p
598.0p
Period of option
30.04.05 – 29.04.12
21.05.06 – 20.05.13
13.05.07 - 12.05.14
19.05.09 – 18.05.16
09.10.09 - 08.10.16
21.05.10 - 20.05.17
03.06.11 – 02.06.18
Exercisable
1 Jan 09
Number
30,600
2,400
30,000
51,200
15,500
78,300
97,700
305,700
63,000
Exercised
Number
-
(2,400)
(9,600)
-
-
-
-
Lapsed
Number
-
-
-
(6,400)
(6,800)
(13,200)
(24,000)
(12,000)
(50,400)
31 Dec 09
Number
30,600
-
20,400
44,800
8,700
65,100
73,700
243,300
104,500
Exercised
Number
-
-
(20,400)
(44,800)
(3,600)
-
-
Lapsed 31 Dec 10
Number
Number
30,600
-
-
-
-
-
-
-
2,400
(2,700)
62,400
(2,700)
71,000
(2,700)
(68,800)
(8,100)
166,400
95,400
Options granted to Directors, included above, are shown on page 19.
The weighted average contracted life of options outstanding at the end of the year was 5.9 years (2009: 6.6 years) and the weighted
average exercise price was 403p (2009: 353p). The weighted average exercise price of options exercisable at the end of the year was
258p (2009: 176p).
The weighted average share price at date of exercise of options exercised in during the year was 595p (2009: 360p). 68,800 options
(2009: 12,000) were exercised during the year. No share options were granted in 2010 (2009: Nil).
The weighted average share price of options that lapsed during the year was 427p (2009: 452p)
There are no vesting conditions other than that option holders may exercise their options at any time within three and ten years after
grant, provided they remain employees of the Group for a period of three years from date of grant.
20 Ultimate controlling shareholder and related party transactions
At 31 December 2010，Genton International Limited, a company registered in Hong Kong, held 20,247,814 (2009: 20,247,814) shares
of the Company representing 51.2% (2009: 51.3%) of the issued share capital of the Company. Together with other deemed interested
parties, the Company„s shareholding totals 20,521,314 or 51.9%. Madam Lim, a Director of the Company, has advised the Company
that she is the controlling shareholder of Genton International Limited. In 2009, the subsidiary of the Company managed, for a fee of
$12,200, small plantation owned by companies controlled by Madam Lim. The contract was on an arm‟s length basis. The amount due
in 2009 was $1,400. During the year the Company engaged UHY Hacker Young, an accounting firm of which Dato‟ John Lim Ewe
Chuan is a partner, to provide company secretarial and taxation services for a fee of $7,303 (2009: $9,617). This contract is on an
arm‟s length basis.
41 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
21 Reserves and non-controlling interest
Nature and purpose of each reserve:
Share capital
Amount of shares subscribed at nominal value.
Share premium
Amount subscribed for share capital in excess of nominal value.
Share capital redemption Amounts transferred from share capital on redemption of issued shares.
Treasury shares
Cost of own shares held in treasury.
Revaluation
Gains/losses arising on the revaluation of the Group's property.
Foreign exchange
Gains/losses arising on translating the net assets of overseas operations into dollars.
Retained earnings
Cumulative net gains and losses recognised in the consolidated income statement.
22 Guarantees and other financial commitments
Capital commitments at 31 December
Contracted but not provided - normal estate operations
Authorised but not contracted - plantation and mill development
23 Disclosure of financial instruments and other risks
2010
$000
2,006
60,000
2009
$000
2,648
-
The Group's principal financial instruments comprise cash, short and long term bank loans, trade receivables and payables and
receivables from local partners in respect of their investments.
The Group‟s accounting classification of each class of financial asset and liability at 31 December 2010 and 2009 were:
2010
Non-current receivables
Trade and other receivables
Cash and cash equivalent
Borrowings due within one year
Trade and other payables
Borrowings due after one year
2009
Non-current receivables
Trade and other receivables
Cash and cash equivalent
Borrowings due within one year
Trade and other payables
Borrowings due after one year
Loans and
receivables
$000
1,494
3,356
70,871
-
-
-
75,721
Loans and
receivables
$000
1,677
2,582
63,761
-
-
-
68,020
Amortised
cost
$000
-
-
-
(15,650)
(15,170)
(6,438)
(37,258)
Amortised
cost
$000
-
-
-
(9,424)
(5,077)
(17,589)
(32,090)
Total carrying
value and
fair value
$000
1,494
3,356
70,871
(15,650)
(15,170)
(6,438)
38,463
Total carrying
value and
fair value
$000
1,677
2,582
63,761
(9,424)
(5,077)
(17,589)
35,930
The principal financial risks to which the Group is exposed are:
- commodity selling price changes;
- exchange movements; and
which, in turn, can affect financial instruments and/or operating performance.
With the exception described below, the Company does not hedge any of its risks. Its trade credit risks are low. There are no financial
assets or liabilities that are held at fair value through the profit and loss.
The Board is directly responsible for setting policies in relation to financial risk management and monitors the levels of the main risks
through review of regular operational reports.
42 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
23 Disclosure of financial instruments and other risks - continued
Commodity selling prices
The Group does not normally contract to sell produce more than one month ahead.
Currency risk
Most of the Group's operations are in Indonesia. The Company and Group accounts are prepared in US dollars which is not the
functional currency of the operating subsidiaries. The Group does not hedge its net investment in its overseas subsidiaries and is
therefore exposed to a currency risk on that investment. The historic cost of investment (including intercompany loans) by the parent in
its subsidiaries amounted to $80,142,000 (2009: $78,624,000), while the fair value of the Group's share of underlying assets at 31
December 2010 amounted to $359,741,000 (2009: $213,771,000).
All the Group's sales are made in local currency and any trade receivables are therefore denominated in local currency. No hedging is
therefore necessary.
Selling prices of the Group's produce are directly related to the US dollar denominated world prices. Appreciation of local currencies
therefore reduces profits and cash flow of the Indonesian and Malaysian subsidiaries in terms US dollar consolidated profits – and vice
versa.
The Group's subsidiaries which are borrowing in US dollars, as set out under Liquidity Risk below could face significant exchange
losses in the event of depreciation of their local currency – and vice versa. This risk is mitigated to some extent by dollar denominated
cash balances in those subsidiaries. While the Company was in a position to match dollar cash balances with dollar financial liabilities
throughout 2009 and 2010, policy has been for only a partial but increasing match because interest rates on local currency deposits
were 5.8% higher than on dollar deposits and about the same as dollar borrowing costs. The unmatched balance at 31 December
2010 is represented by the $16,791,000 shown in the table below (2009: $16,154,000). If the Group's net cash position continues to
improve then dollar cash balances will continue to be increased through 2011.
The table below shows the net monetary assets and liabilities of the Group at 31 December 2010 and 2009 that were not denominated
in the operating or functional currency of the operating unit involved.
Functional currency of Group operation
2010
Indonesian rupiah
US dollar
Total
2009
Indonesian rupiah
US dollar
Total
Net foreign currency assets/(liabilities)
US dollar
$000
Sterling
$000
(16,791)
-
(16,791)
$000
(16,154)
-
(16,154)
-
792
792
$000
-
302
302
Total
$000
(16,791)
792
(15,999)
$000
(16,154)
302
(15,852)
Liquidity risk
Development to profitability of new sizable plantations requires a period of between six and seven years before cash flow turns
positive. Because oil palms do not begin yielding significantly until four years after planting, this period and the cash requirement is little
affected by changes in commodity prices.
The Group attempts to ensure that it is likely to have either self-generated funds or further loan/equity capital to complete its
development plans and to meet loan repayments. Long term forecasts are updated about twice a year for review by the Board. In the
event that falling commodity prices reduce self-generated funds below expectations and to a level where Group resources may be
insufficient, further new planting may be restricted. Consideration is given to the funds continued to be required to bring existing
immature plantings to maturity.
The Group's trade and tax payables are all due for settlement within a year. At 31 December 2010 the Group had the following loans
and facilities.
Indonesia:
US dollar denominated - long term loan
RP denominated - revolving credit
Borrowings
$000
Facilities
$000
17,588
4,500
17,588
13,318
Repayable
2008 - 2012 (note 14)
expired on October 2011
(note 14)
43 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
23 Disclosure of financial instruments and other risks - continued
Liquidity risk - continued
The total loan facilities of $22,088,000 together with interest at current rates is repayable as follows:
Principal
Interest
Total
2011
$000
15,650
572
16,222
2012
$000
6,438
330
6,768
Forecasts prepared in December 2010 indicate that the Group has sufficient funds to meet its development plans and financial
commitments through 2011.
All the long term loans include varying covenants covering minimum net worth and cash balances, dividend and interest cover and debt
service ratios.
Interest rate risk
Both the Group's surplus cash and its borrowings are subject to variable interest rates. The Group had net cash throughout 2010, so
the effect of variations in borrowing rates is more than offset. A 1% change in the borrowing or deposit interest rate would not have a
significant impact on the Group‟s reported results. The rates on borrowings are set out in note 14.
There is no policy to hedge interest rates, partly because of the net cash position and partly because net interest is a relatively small
proportion of Group profits.
Interest rate profiles of the Group's financial assets (comprising non current receivables, tax receivables, trade and other receivables
and cash) at 31 December were:
2010
Sterling
US dollar
Rupiah
Ringgit
Total
2009
Sterling
US dollar
Rupiah
Ringgit
Total
Total
$000
832
8,143
65,584
8,504
83,063
$000
425
13,361
51,645
7,770
73,201
Fixed rate
$000
-
1,363
-
-
1,363
Variable rate
$000
52
6,190
52,622
7,897
66,761
No interest
$000
780
590
12,962
607
14,939
$000
-
1,363
-
-
1,363
$000
425
11,998
44,054
7,284
63,761
$000
-
-
7,591
486
8,077
Long term receivables of $1,363,000 (2009: $1,363,000) comprise dollar denominated amounts due from minority shareholders as
described in note 11 on which interest is due at a fixed rate of 6%.
Average US dollar deposit rates in 2010 were 2.0% (2009: 3.94%) and rupiah deposit rates were 7.07% (2009: 10.41%).
Interest rate profiles of the Group's financial liabilities (comprising bank loans and other financial liabilities, trade and other payables,
and retirement benefit liabilities) at 31 December were:
2010
Sterling
US dollar
Rupiah
Ringgit
Total
2009
Sterling
US dollar
Rupiah
Ringgit
Total
Total
$000
(75)
(22,634)
(15,349)
(1,505)
(39,563)
$000
(123)
(27,013)
(5,931)
(853)
(33,920)
Fixed rate
$000
-
-
-
-
-
Variable rate
$000
-
(22,088)
-
-
(22,088)
No interest
$000
(75)
(546)
(15,349)
(1,505)
(17,475)
$000
-
-
-
-
-
$000
-
(27,013)
-
-
(27,013)
$000
(123)
-
(5,931)
(853)
(6,907)
Weighted average interest rate on variable rate borrowings was 5.36% in 2010 (2009: 6.24%).
44 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
23 Disclosure of financial instruments and other risks - continued
Credit risk
Sales of CPO and kernel are not despatched unless payment has been received in advance. Remaining sales are on credit for about
30 days. No provisions were considered necessary at 31 December 2010 (2009: Nil).
All cash is deposited with licensed banks. The list of the principal banks used by the Group is given on the inside of the back cover of
this report.
Amounts receivable from local partners, amounting to $1,363,000 (2009: $1,363,000), in relation to their investments in operating
subsidiaries are secured on those investments and are repayable from their share of dividends from those subsidiaries. Amounts due
from village smallholder schemes are unsecured and are to be repaid from FFB supplied.
Capital
The Group defines its Capital as Share capital and Reserves, shown in the statement of financial position as "Issued capital attributable
to owners of the parent" and amounting to $354,168,000 at 31 December 2010 (2009: $210,971,000)
Group policy is presently to attempt to fund development from self-generated funds and loans and not from issue of new share capital.
At 31 December 2010 (2009: Nil) the Group had no net borrowings but, depending market conditions, the Board is prepared for the
Group to have net borrowings.
24 Acquisitions
For the acquisition below, since it was not an active plantation, the Directors consider that it has obtained control of an entity that is not
a business and accordingly have not accounted for this acquisition as a business combination. Instead, the amount paid for the
acquisition has been allocated between individual identifiable assets and liabilities in the entity based on their fair values at the
acquisition date.
2010
PT Kahayan Agro Plantation (KAP)
On 25 February 2010, the Group acquired 95% interest in PT Kahayan Agro Plantation for a cash consideration of $4,645,000.
Kahayan has no assets or liabilities other than the location permit of 17,500 hectares in Gunung Mas District near Palangkaraya,
Central Kalimantan. Plantable area is approximately 70%. The assets and liabilities and their fair value adjustment were assessed as
follows:
Fixed assets only acquired
Group share (95%)
Book value
$000
1,612
Revaluation to fair value
$000
3,278
Fair value
$000
4,890
4,645
Kahayan was inactive throughout 2010 and therefore the Group's share of any profit or loss from the date of acquisition to the end of
2010 was nil.
2009
There were no acquisitions in 2009.
45 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Consolidated Financial Statements
25 Subsidiary companies
The principal subsidiaries of the Company all of which have been included in these consolidated financial statements are as follows:
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 Bangka Malindo Lestari
PT Bina Pitra Jaya
PT Cahaya Pelita Andhika
PT Empat Lawang Agro Perkasa
PT Hijau Pryan Perdana
PT Kahayan Agro Plantation
PT Karya Kencana Sentosa Tiga
PT Mitra Puding Mas
PT Musam Utjing
PT Riau Agrindo Agung
PT Sawit Graha Manunggal
PT Simpang Ampat
PT Tasik Raja
PT United Kingdom Indonesia Plantations
100
100
55
100
90
100
95
80
90
95
80
95
95
90
75
95
95
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.
46 Annual Report 2010 | Anglo-Eastern Plantations Plc
Company Balance Sheet
As at 31 December 2010
Fixed assets
Investment in subsidiaries
Current assets
Other debtors
Cash and cash equivalents
Creditors: amount falling due within one year
Other creditors
Net current assets
Net assets
Capital and reserves
Share capital
Treasury shares
Share premium reserve
Share capital redemption reserve
Exchange reserve
Retained earnings
Shareholders' funds
Notes
2
3
5
6
6
7
7
7
7
2010
$000
80,142
80,142
50
2,276
2,326
(653)
1,673
81,815
15,504
(1,507)
23,935
1,087
3,872
38,924
81,815
2009
$000
78,624
78,624
-
1,564
1,564
(124)
1,440
80,064
15,504
(1,744)
23,935
1,087
3,872
37,410
80,064
The financial statements were approved by the Board of Directors and authorised for issue on 26 April 2011 and were signed on its behalf by
Dato‟ John Lim Ewe Chuan
The accompanying notes are an integral part of this balance sheet.
47 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Company Financial Statements
1 Accounting policies
Basis of accounting
The separate financial statements of the Company are presented as required by the Companies Act 2006. They have been prepared
under the historical costs convention and in accordance with applicable United Kingdom Accounting Standards and law. The principal
accounting policies are summarised below.
Foreign currency
The functional currency of the Company is US dollars, chosen because the prices of the bulk of the Group‟s products are ultimately
denominated in dollars. Transactions in sterling are translated to US dollars at the actual exchange rate and exchange losses
recognised in profit and loss. Sterling denominated assets and liabilities are converted to US dollars at the rate ruling at the balance
sheet date.
Investments
Investments in subsidiaries are stated at cost less provision for any permanent diminution in value.
Dividends
In accordance with FRS21 equity dividends are recognised when they become legally payable.
Share based payments
As set out under Group accounting policies on page 30.
Deferred tax
A deferred tax asset has not been recognised in relation to brought forward tax losses of $4.1m (2009: $2.2m) because it is not certain
those losses can be utilised.
Treasury shares
Consideration paid or received for the purchase or sale of the Company‟s own shares for holding in treasury is recognised directly in
equity, where the cost is presented as the treasury share reserve. Any excess of the consideration received on the sale of t reasury
shares over the weighted average cost of shares sold, is taken to the share premium account. Any shares held in treasury are treated
as cancelled for the purpose of calculating earnings per share.
Financial guarantee contracts
Where the Company enters into financial guarantee contracts and guarantees the indebtedness of other companies within the Group,
the Company considers these to be insurance arrangements and accounts for them as such. In this respect, the Company treats the
guarantee contract as a contingent liability until such time that it becomes probable that the Company will be required to make a
payment under the guarantee.
2
Investments in subsidiaries
At beginning of year
Movements in year
At end of year
Investments in
subsidiary
undertakings
$000
7,745
(725)
7,020
Loans to
subsidiary
undertakings
$000
70,879
2,243
73,122
Total
$000
78,624
1,518
80,142
Loans to and from subsidiary companies do not have fixed repayment terms and are repayable on demand. In practice they are
effectively long term in nature and therefore classified with investments in subsidiaries. The investment of preference shares in
subsidiaries of $6.146m is due for full redemption in 2012.
The principal subsidiaries of the Company are listed in note 25 to the consolidated financial statements on page 46.
3
Other debtors
Other receivables
Prepayments
2010
$000
39
11
50
2009
$000
-
-
-
48 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Company Financial Statements
4
Dividends
Paid during the year
Final dividend of 5.0 cts for the year ended 31 December 2009 (2008: 5.0cts)
Proposed final dividend of 5.0 cts for the year ended 31 December 2010 (2009: 5.0cts)
2010
$000
1,973
1,977
2009
$000
1,973
1,973
The proposed dividend for 2010 is subject to shareholder approval at the forthcoming annual general meeting and has not been
included as a liability in these financial statements.
5. Other creditors
Other payables
Accruals
6
Share capital
2010
$000
36
617
653
2009
$000
-
124
124
Issued and
fully paid
Number
Issued and
fully paid
£000
Issued and
fully paid
$000
Ordinary shares of 25p each
Beginning and end of year
39,976,272
2010
Number
506,000
(68,800)
437,200
2009
Number
518,000
(12,000)
506,000
Treasury shares
Beginning of year
Share options exercised
End of year
Market value of treasury shares:
Beginning of year (385.0p /share)
End of year (730.0p/share)
9,994
Cost
2010
$’000
(1,744)
237
(1,507)
15,504
Cost
2009
$‟000
(1,785)
41
(1,744)
3,136
4,997
Details of share based payments are set out in note 19 to the consolidated financial statements on page 41.
7
Reserves
Company balance sheet
Beginning of year
Share options exercised
Loss for the financial year
Reversal of provision for doubtful debts
Dividend paid
End of year
Share
premium
account
$000
23,935
-
-
-
23,935
Treasury
shares
$000
(1,744)
237
-
-
(1,507)
Share
capital
redemption
$000
1,087
-
-
-
1,087
Exchange
reserve
$000
3,872
-
-
-
3,872
(Distributable)
Profit and loss
account
$000
37,410
(2)
(1,871)
5,360
(1,973)
38,924
As permitted by section 408 of the Companies Act 2006, a separate profit and loss account dealing with the results of the Company
has not been presented. The loss before tax of the Company for the year was $1,845,000 (2009 profit before tax: $4,553,659) and loss
for the year was $1,871,000 (2009 profit for the year: $3,215,000). The exchange reserve arose on the initial transition from sterling to
US dollars as the Company‟s functional currency.
49 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notes to the Company Financial Statements
8
Employees' and Directors' remuneration
Average numbers employed during the year – Directors
– staff
Staff costs
Wages and salaries
Social security costs
Share based remuneration expense
2010
number
6
2
2010
$000
93
6
-
99
2009
number
6
2
2009
$000
145
10
11
166
The information required by the Companies Act and the Listing Rules of the Financial Services Authority is contained in the Directors'
report on remuneration on pages 18 to 20 of which the information on page 19 and 20 have been audited.
Directors' emoluments
Pension contributions
2010
$000
341
4
345
2009
$000
469
-
469
9
Guarantees and other financial commitments
The Company has provided guarantees for loans to subsidiaries totalling $22,088,000 (2009: $27,013,000) as set out in note 14 of the
consolidated financial statements.
50 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notice of Annual General Meeting
Notice is hereby given that the twenty-sixth Annual General Meeting of Anglo-Eastern Plantations Plc will be held at the offices of UHY
Hacker Young LLP, Quadrant House, 4 Thomas More Square, London E1W 1YW on Wednesday 22 June 2011 at 11.00 a.m. for the
following purposes:
As Ordinary Business
1
2
3
4
5
6
To receive and consider the Company‟s annual report for the year ended 31 December 2010
To declare a dividend
To approve the Directors' remuneration report for the year ended 31 December 2010
To re-appoint Dato‟ John Lim Ewe Chuan, Executive Director
To re-elect Madam S K Lim, a Non-Executive Director, who has served more than nine years.
To re-appoint BDO LLP as auditors and to authorise the Directors to fix their remuneration.
As Special Business
7
To consider and, if thought fit, to pass the following resolution as special resolution:
That
(a)
the Directors be generally and unconditionally authorised pursuant to and in accordance with section 551 of the Companies Act
2006 (“the Act”) to exercise all the powers of the Company to allot shares in the Company up to an aggregate nominal amount
equal to one third of the issued share capital at the date of this resolution provided that this authority shall expire on 21 June 2016
save that the Company may before such expiry make an offer or agreement which would or might require relevant securities to be
allotted after such expiry and the Directors may allot relevant securities in pursuance of such an offer or agreement as if the
authority conferred hereby had not expired;
(b) during the period expiring on the date of the next annual general meeting or on 30 June 2012 (whichever shall be earlier) the
Directors be empowered pursuant to section 570 and 573 of the Companies Act 2006 (“the Act”) to allot equity securities for cash
pursuant to the authority conferred under paragraph (a) above or by way of sale of treasury shares (within the meaning of section
560 of the Act):
(i)
in connection with a rights issue; and
(ii) up to an aggregate nominal amount of £499,703, otherwise than in connection with a rights issue;
as if section 561(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 periods; 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 (other than the Company) 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 17 of the Act shall bear the same meanings herein.
8
To consider and if thought fit to pass the following resolution as a special resolution:
That the Directors be and they are hereby authorised
51 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notice of Annual General Meeting
(i)
(ii)
to exercise the powers contained in 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 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
21 June 2016; and
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 561 of the Companies Act 2006 (“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 21 June 2016 as if sub-section (1) of
section 561 of the Act did not apply thereto and so that this authority shall be without prejudice and additional to the authority
conferred by resolution no 7.
9
To consider and if thought fit to pass the following as a special resolution:
That the Company is hereby generally and unconditionally authorised for the purposes of section 701 of the Companies Act 2006 (“the
Act”) to make market purchases (as defined in section 693(2) of the Companies Act 2006) 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 3,997,627 (representing 10% of the issued
ordinary share capital);
(b)
the minimum price which may be paid for each ordinary share is 25p;
(c)
(d)
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 plc for the five business days
immediately preceding the date of purchase; and
the authority hereby conferred shall expire on 30 June 2012 or, if earlier, 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.
10 To consider and if thought fit to pass the following resolution as a special resolution:
That a general meeting of the Company other than an annual general meeting may be called on not less than 14 clear days‟
notice.
By order of the Board
CETC (Nominees) Limited
Company Secretary
Notes:
13 May 2011
1.
2.
3.
4.
5.
Pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, the Company has specified that only those shareholders on the register of
members of the Company at 11.00 a.m. on 20 June 2011 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 11.00 am on 20 June 2011 or, if the meeting is adjourned, in the register
of members at 6.00 p.m. on the date which is two days before the day of the adjourned meeting shall be disregarded in determining the rights of any
person to attend and vote at the meeting.
As at 26 April 2011 (being the latest practicable date prior to the publication of this notice), the Company‟s issued share capital comprised 39,976,272
Ordinary Shares of 25p each. Each share carries one vote except 437,200 shares held as treasury shares and therefore the total number of voting
rights in the Company as at 9.00 am on 26 April 2011 is 39,539,072.
A member of the Company entitled to attend and vote at the meeting may appoint one or more proxies to attend, speak and vote at a meeting. Where
more than one proxy is appointed, each proxy must be appointed for different shares. You may not appoint more than one proxy to exercise rights
attached to any one share. A proxy need not be a member of the Company.
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 (or any adjournment thereof).
In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the most senior
holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the Company‟s register of members in
respect of the joint holding (the first-named being the most senior).
52 Annual Report 2010 | Anglo-Eastern Plantations Plc
Notice of Annual General Meeting
6.
7.
8.
CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the annual general
meeting and any adjournment thereof by using the procedures described in the CREST Manual. CREST personal members or other CREST sponsored
members and those CREST members who have appointed a voting service provider should refer to their CREST sponsor or voting service provider,
who will be able to take the appropriate action on their behalf. In order for a proxy appointment or instruction made using the CREST service to be
valid, the appropriate CREST message (a “CREST Proxy Instruction”) must be properly authenticated in accordance with Euroclear‟s specifications and
must contain the information required for such instructions, as described in the CREST Manual. All messages relating to the appointment of a proxy or
an instruction to a previously appointed proxy must be transmitted so as to be received by our Registrar [CREST ID: RA10] by 20 June 2011. It is the
responsibility of the CREST member concerned to take such action as shall be necessary to ensure that a message is transmitted by means of the
CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service providers
are referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings. The Company
may treat a CREST Proxy Instruction as invalid in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
You may submit your proxy electronically using The Share Portal service at www.capitashareportal.com. If not already registered for The Share Portal
you will need your Investor Code which can be found on your share certificate.
The statement of the rights of shareholders in relation to the appointment of proxies does not apply to a person who receives this notice of general
meeting as a person nominated to enjoy “information rights” under section 146 of the Companies Act 2006. If you have been sent this notice of meeting
because you are such a nominated person the following statements apply: (i) you may have a right under an agreement between you and the
registered shareholder by whom you were nominated to be appointed (or to have someone else appointed) as a proxy for this general meeting and (ii) if
you have no such a right, or do not wish to exercise it, you may have a right under such an agreement to give instructions to that registered shareholder
as to the exercise of voting rights. Nominated persons should contact the registered member by whom they were nominated in respect of these
arrangements.
9.
In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at the meeting so that:
(i)
(ii)
if a corporate member has appointed the Chairman of the meeting as its corporate representative with instructions to vote on a poll in accordance
with the directions of all the other corporate representatives for that member at the meeting, then, on a poll, those corporate representatives will
give voting directions to the Chairman and the Chairman will vote (or withhold a vote) as corporate representative in accordance with those
directions; and
if more than one corporate representative for the same corporate member attends the meeting but the corporate member has not appointed the
Chairman of the meeting as its corporate representative, a designated corporate representative will be nominated, from those corporate
representatives who attend, who will vote on a poll and the other corporate representatives will give voting directions to that designated corporate
representative.
10. Corporate members are referred to the guidance issued by the Institute of Chartered Secretaries and Administrators on proxies and corporate
representatives – www.icsa.org.uk – for further details of this procedure. The guidance includes a sample form of representation letter to appoint the
Chairman as a corporate representative as described in 9(i) above.
11. Members satisfying the requirements of section 527 of the Companies Act 2006 may require the Company to publish on a website a statement by them
(at the Company‟s cost) relating to the audit of the Company‟s accounts which are being laid before this meeting (including the auditor‟s report and the
conduct of the audit) or, where applicable, any circumstances connected with an auditor of the Company ceasing to hold office since the previous
general meeting at which accounts were laid. As at 26 April 2011, no such statement has been received by the Company. Should such a statement be
received, it will be published on the Company‟s website at www.angloeastern.co.uk. In those circumstances the Company would be under an obligation
to forward a copy of the statement to the auditors forthwith and the statement would form part of the business which may be dealt with at this meeting.
12. Any member attending the meeting has the right to ask questions. The Company must cause to be answered any such questions relating to the
business being dealt with at the meeting but no such answer need be given if (a) to do so would interfere unduly with the preparation of the meeting or
involve the disclosure of confidential information, (b) the answer has already been given on a website in the form of an answer to a question, or (c) it is
undesirable in the interests of the Company or the good order of the meeting that the question be answered.
13. The following documents are available for inspection by members at the registered office of the Company during normal business hours (except Bank
Holidays) and at the place of the meeting not less than 15 minutes prior to and during the meeting:
(a)
The register of Directors‟ interests, showing any transactions of Directors and of their families in the securities of the Company;
(b) Copies of the Director‟s service agreements and letters of appointment.
14. A copy of this notice and the other information required by section 311A of the Companies Act 2006 can be found at www.angloeastern.co.uk.
15.
16.
If you are in any doubt as to any aspect of Resolutions 7 to 9 or as to the action you should take, you should immediately take your own advice from a
stockbroker, solicitor, accountant or other independent financial advisor authorised under the Financial Services and Markets Act 2000. The Board
believes that these Resolutions are in the best interests of the Company and shareholders as a whole.
If you have sold or otherwise transferred all your shares in the Company, please hand this document and the accompanying form of proxy to the
purchaser or transferee, or to the bank, stockbroker or other agent through whom the sale or transfer was effected, for transmission to the purchaser or
transferee. If you sell or have sold or otherwise transferred only part of your holding of existing shares please consult the bank, stockbroker or other
agent through whom the sale or transfer was effected.
53 Annual Report 2010 | Anglo-Eastern Plantations Plc
Company addresses Malaysian Office Anglo-Eastern Plantations (M) Sdn Bhd 7th Floor, Wisma Equity 150 Jalan Ampang 50450 Kuala Lumpur Malaysia Tel: 60 (0)3 2162 9808 Fax: 60 (0)3 2164 8922 Indonesian Office PT United Kingdom Indonesia Plantations Wisma HSBC Jalan Diponegoro, Kav 11 Medan 20152 North Sumatra Indonesia Tel: 62 (0)61 452 8683 Fax: 60 (0)61 452 0029 Secretary and registered office Anglo-Eastern Plantations Plc (Number 1884630) (Registered in England and Wales) CETC (Nominees) Limited Quadrant House Floor 6 4 Thomas More Square London E1W 1YW United Kingdom Tel: 44 (0)20 7216 4600 Fax: 44 (0)20 7767 2602 Company website www.angloeastern.co.uk Company advisers Auditors BDO LLP 55 Baker Street London W1U 7EU United Kingdom Principal Bankers National Westminster Bank Plc 15 Bishopsgate London EC2P 2AP United Kingdom The Hong Kong and Shanghai Banking Corporation Limited Wisma HSBC Jalan Diponegoro, Kav 11 Medan 20152 North Sumatra Indonesia PT Bank DBS Indonesia Uniplaza Building Jalan Letjen MT Haryono A-1 Medan 20231 North Sumatra Indonesia Malayan Banking Bhd Menara Maybank 100 Jalan Tun Razak 50050 Kuala Lumpur Malaysia Registrars Capita Registrars Ltd Northern House Woodsome Park Fenay Bridge Huddersfield West Yorkshire HD8 0GA United Kingdom Solicitors Withers LLP 16 Old Bailey London EC4M 7EG United Kingdom Sponsor/Broker Charles Stanley & Co. Ltd 131 Finsbury Pavement London EC2A 1NT United Kingdom