NOTES TO THE FINANCIAL STATEMENTS

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12. INVESTMENTS IN UNQUOTED SUBSIDIARY COMPANIES
These consist of unquoted shares in subsidiary companies at cost.
The subsidiary companies, which are all incorporated in Malaysia (except where indicated), are as follows:

* The financial statements of these companies were examined by auditors other than the auditors of the Company.

On 27th April, 2001, the Company entered into a supplementary conditional agreement with YHS (Singapore) Pte. Ltd. (YHSPL) to acquire the entire issued and paid-up share capital of YHSBI, consisting of 128,000 ordinary shares of SGD1.00 each, for a purchase consideration of SGD33,917,264 (equivalent to RM73,973,553) to be satisfied by an issue of 44,295,541 new ordinary shares of the Company at an issue price of RM1.67 per share. At an Extraordinary General Meeting held on 11th July, 2001, the proposed acquisition of YHSBI was duly approved by the shareholders of the Company and on 21st August, 2001, the Company allotted the new ordinary shares to YHSPL (Note 25).

On 13th May, 2001, the Company set up a new subsidiary company, Yeo Hiap Seng (Middle East) Co. Ltd. E. C., at Bahrain with cost amounting to RM202,600.

13. INVESTMENTS IN UNQUOTED ASSOCIATED COMPANIES

The associated companies, which are all incorporated in Malaysia (except where indicated), are as follows:

One of the associated companies, Senawang Edible Oil (Sendirian) Berhad, was granted income tax relief under the Investment Incentive Act and, accordingly, was not liable for tax on substantially all its business income earned. The income tax relief period expired in June 1980. As of 31st December, 2002, the Company's attributable share in the unappropriated tax-exempt profits of this associated company amounted to RM78,000 (RM636,000 in 2001).

The amount owing by associated companies mainly represents unsecured loans and expenses paid on behalf. The loans
bear interest at rates ranging from 2% to 7.75% (2% to 7.25% in 2001) per annum and have no fixed term of repayment.

During the financial year, interest income received from the associated companies for the Group and the Company amounted
to RM136,102 (RM16,466 in 2001).

The Group's share of losses in two associated companies has been recognised to the extent of the carrying amount of the
investment. The cumulative and current year's unrecognised share of losses in excess of carrying amount is about RM2,233,000
(RM2,189,000 in 2001) and RM29,000 (RM212,000 in 2001) respectively.

14. OTHER INVESTMENTS
Other investments of the Group and the Company consist of the following:

15. GOODWILL ON CONSOLIDATION

16. INVENTORIES
The inventories consist of the following:

17. TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAID EXPENSES

The credit period granted on sales of goods ranges from 14 to 90 days (14 to 90 days in 2001). An allowance has been made for estimated doubtful amounts of RM8,140,636 (RM2,981,961 in 2001).