LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

Appendix BPro Forma Consolidated Balance Sheet of LMIR Trust, upon completion of the offering and the acquisitionof the Properties, has been prepared by the Manager as set out in section D below and a profit forecast forthe period from 1 July 2007 to 31 December 2007 and profit projections for the financial years ending31 December 2008 and 2009 have been included in the Prospectus.(C) Bases of preparation of Pro Forma Consolidated Balance Sheet as at the listing dateThe Pro Forma Consolidated Balance Sheet as at the listing date is prepared for illustrative purposes onlyand based on certain assumptions after making certain adjustments. The Manager has assumed that thelisting date is 1 July 2007 (“Listing Date”).The Pro Forma Consolidated Balance Sheet is prepared:• based on the audited balance sheets of the seven Retail Malls Property Companies as at 31 December2006 and audited balance sheets of the seven Retail Spaces Property Companies as at 15 February2007;• based on the audited balance sheets of the seven Retail Spaces’ Investment Holding Companies as at10 February 2007;• based on the unaudited balance sheets of the relevant ten Investment Holding Companies as atincorporation date and four of the relevant Investment Holding Companies as at 31 December 2006;• based on the unaudited balance sheet of LMIR Trust as at its constitution; and• incorporating adjustments necessary to reflect the financial position of the Pro Forma Group, pursuantto the terms set out in the Prospectus and bases set out below.The Pro Forma Consolidated Balance Sheet of LMIR Trust as at the Listing Date reflects the financialposition of LMIR Trust as if it had purchased the Property Companies on the Listing Date under the sameterms set out in the Prospectus.The Pro Forma Consolidated Balance Sheet has been prepared on the basis of the accounting policies setout in section F below.The objective of the Pro Forma Consolidated Balance Sheet of the Pro Forma Group is to show what thefinancial position might have been at the Listing Date, on the basis as described above. However, the ProForma Consolidated Balance Sheet is not necessarily indicative of the financial position that would havebeen actually attained by LMIR Trust on the Listing Date. The Pro Forma Consolidated Balance Sheet,because of its nature, may not give a true picture of the Pro Forma Group’s financial position.The Pro Forma Consolidated Balance Sheet has been prepared after incorporating the following keyadjustments:• Adjustments to reflect the transfer of assets and liabilities from the Retail Malls Property Companies tothe Operating Companies (namely cash and cash equivalents, trade and other receivables, otherinvestments, certain plant and equipment, trade and other payables and borrowings). The Retail MallProperty Companies have entered into the Operating Costs Agreements with the OperatingCompanies. These agreements are more particularly described in “Certain Agreements Relating toLMIR Trust and the Properties—Description of Operating Costs Agreements” of the Prospectus.The financial statements of seven Retail Malls Property Companies have been restated fromIndonesian GAAP to Singapore Financial Reporting Standards (“FRS”) (“Restated FRS financialstatements”) to be in line with the accounting policies of LMIR Trust. RSM AAJ Associates were theauditors for this purpose. The Restated FRS financial statements have been qualified by RSM AAJAssociates to the extent that certain financial assets and financial liabilities of these Retail MallsProperty Companies have not been fair valued, accounted and presented in accordance with therequirements of FRS 32 and 39. The Manager is of the view that there is no practical benefit in restatingthese financial assets and financial liabilities to FRS as these financial assets and financial liabilities willbe transferred to the Operating Companies (see Note F15) at their carrying values as stated inaccordance with Indonesian GAAP. As such, the Manager believes that restating the financial assetsand financial liabilities to FRS will have no value to investors. The audited financial statements of theseentities prepared in accordance with Indonesian GAAP were not qualified.B-5