10:19 CCT TELECOM<00138> & CCT TECH INT'L<00261> - Joint Ann. (3) The unaudited pro forma statement of assets and liabilities has been prepared for illustrative purposes only and, because of its nature, may not give a true picture of the financial position of the Combined Group as at 30 June 2004 or at any future date. The historical unaudited consolidated assets and liabilities of the CCT Telecom Group and the CCT Tech Group have been extracted from the respective unaudited interim financial statements in respect of the six months ended 30 June 2004 as set out in the 2004 interim reports of CCT Telecom and CCT Tech respectively. CCT Telecom Group as at 30 June 2004 Pro forma adjustments Combined Group HK$'million HK$'million Notes HK$'million Non-current assets Fixed assets 1,476 1,476 Intangible assets 26 26 Goodwill 14 171 (d) 185 Interests in associates 297 297 Other assets 12 12 Long term investments 4 4 Deferred tax assets 7 7 -------------------- 1,836 2,007 -------------------- Current assets Short term investments 3 3 Inventories 267 267 Trade and bills receivables 696 696 Prepayments, deposits and other receivables 69 69 Pledged time deposits 100 100 Cash and cash equivalents 907 (250) (a), (b) 657 ------------------------------------- 2,042 1,792 ------------------------------------- Current liabilities Trade and bills payables 910 910 Tax payable 27 27 Other payables and accruals 182 182 Interest-bearing bank loans and other borrowings 148 148 Convertible notes 57 (45) (b) 12 ----------------------- 1,324 1,279 ---------------------- Net current assets 718 513 ---------------------- Total assets less current liabilities 2,554 2,520 ------------------------------------ Non-current liabilities Interest-bearing bank loans 103 103 Finance lease payables 4 4 Convertible Bonds --- 104 (b) 104 Deferred tax liabilities 6 6 ----------------------- 113 217 Minority interests 138 (138) (c) --- ----------------------- Net assets 2,303 2,303 ======================= Notes: (a) The adjustment represents the cash consideration to acquire all the issued CCT Tech Shares (other than those already owned by the CCT Telecom Group) and cancel all the outstanding CCT Tech Options on the assumption that all the CCT Tech Independent Shareholders accepted the Offers and opted for cash and all the CCT Tech Optionholders accepted the Option Offer.