GLOBAL

13. FRANCHISE COSTSFranchise costs are stated net of amounts amortised. The movements in amortised franchisecosts during the ®nancial year were as follows:Cost2002 2001$ $Balance at beginning of the ®nancial year 1,395,913 673,922Franchise costs paid during the ®nancial year 515,464 721,991Balance at the end of the ®nancial year 1,911,377 1,395,913Accumulated amortisationBalance at the beginning of the ®nancial year 306,458 155,133Amortisation charge for the ®nancial year 246,608 151,325Balance at the end of the ®nancial year 553,066 306,458Net book value 1,358,311 1,089,45514. ASSOCIATED COMPANIES2002 2001$ $Investments in equity shares, at cost 2 ÐShare of post-acquisition losses (70,000) Ð(69,998) ÐAdvances to associated companies 150,820 Ð80,822 Ð(a)The following information relates to the associated companies:Name of companyPrincipal activitiesFinancialyear-endCountry ofincorporationand businessEquity holdingCost ofinvestment2002 2001 2002 2001% % $ $Victoria HouseNutritional Products(M) Sdn BhdWholesale ofnutraceuticalproducts and healthsupplements31 December Malaysia 50 Ð 1 ÐGNC NutritionalProducts (M) Sdn BhdRetailing ofnutraceuticalproducts and healthsupplements31 December Malaysia 50 Ð 1 Ð2 Ð(b)The advances made to the associated companies are unsecured, interest-free and have no®xed terms of repayment. Subsequent to the balance sheet date, the Company increasedits investments in the equity shares of the associated companies by capitalising theadvances whilst maintaining the Company's interests in their respective issued sharecapitals at 50%.E-64