Auditor's Report To The National Library Board
(established under the National Library Board act, chapter 197)

We have audited the financial statements of the National Library Board ("Board") and the consolidated financial statements of the Group for the financial year ended 31 March 2001 set out on pages 43 to 56. These financial statements are the responsibility of the Board. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Board's management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
 

In our opinion,
a)

the accompanying financial statements of the Board and consolidated financial statements of the Group are properly drawn up in accordance with the provisions of the National Library Board Act (Chapter 197) ("Act") and Singapore Statements of Accounting Standard and so as to give a true and fair view of the state of affairs of the Board and the Group as at 31 March 2001 and of the results and changes in capital account and accumulated deficit of the Board and of the Group, and the consolidated cash flows of the Group for the year ended on that date; and

b)

the accounting and other records required by the Act to be kept by the Board have been properly kept in accordance with the provisions of the Act, including records of all assets of the Board whether purchased, donated or otherwise.
 

During the course of our audit, nothing came to our notice that caused us to believe that the receipt, expenditure and investment of monies and the acquisition and disposal of assets by the Board during the year have not been in accordance with the provisions of the Act.

We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the Board are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations as required by us for those purposes.

The auditors' reports on the financial statements of the subsidiaries were not subject to any qualification.
 


PricewaterhouseCoopers
Certified Public Accountants
Singapore
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Income & Expenditure Statements For The FY Ended March 2001
    The Group The Board
    2000/2001 2000/2001 1999/2000
  Notes $ $ $
Operating income    
Professional Service 2(e) 3,996,938 3,996,938 3,890,806
Book fines   1,867,971 1,867,971 1,586,345
Membership fees 2(e) 335,125 335,125 321,993
Other income 2(e) 6,641,419 6,641,419 4,525,110
   
    12,861,453 12,711,453 10,324,254
   
Less:        
Operating Expenditure        
Salaries 3 39,981,887 39,981,887 32,661,866
Books, periodicals and serials   37,066,693 37,066,693 28,619,812
Rental   18,088,299 18,088,299 15,141,442
Depreciation of property, plant and equipment   12,898,121 12,898,121 9,344,034
Maintenance of buildings   4,368,217 4,368,217 4,573,411
Computer services   10,076,693 10,076,693 9,442,564
Manpower development and staff welfare   2,769,021 2,769,021 2,719,277
Public utilities   3,297,329 3,297,329 2,384,285
Telecommmunication, transport and postage   4,570,458 4,570,458 2,946,816
Supplies and materials   1,296,789 1,296,413 912,002
Consultancy fees   998,292 802,346 1,350,311
Write-off of property, plant and equipment   6,368,108 6,368,108 2,595,982
Loss on disposal of property, plant and equipment   37,310 37,310 398,918
Maintenance of computer hardware   1,970,636 1,970,636 1,767,326
Other operating expenses 4 21,907,496 21,886,393 12,728,814
   
    165,695,339 165,457,914 127,586,860
   
Operating Deficit   (152,833,886) (152,746,461) (117,262,606)
   
Non-operating income        
Interest income 2(e),5 339,727 339,727 178,528
   
Deficit before grants   (152,494,159) (152,406,734) (117,084,078)
   
Grants        
Operating grants 6 87,620,096 87,620,096 77,399,624
Development grants 7 44,248,083 44,248,083 25,914,855
Deferred capital grants amortised 8 12,949,186 12,949,186 9,544,912
   
    144,817,365 144,817,365 112,859,391
   
    (7,676,794) (7,589,369) (4,224,687)
   
         
Tan Chin Nam
Chairman
Christopher Chia
Chief Executive Officer

The accompanying notes form an integral part of these financial statements.
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Balance Sheets As At 31 March 2001
    The Group The Board
    2000/2001 2000/2001 1999/2000
  Notes $ $ $
Current assets        
Cash and cash equivalents 10 24,010,317 23,918,151 127,588,826
Receivables 11 846,809 851,809 715,130
Other current assests 12 2,760,872 2,760,872 3,703,281
   
    27,617,998 27,530,832 132,007,237
   
Non-current assets        
Investment in subsidiaries 13 - 2 -
Property, plant and equipment 14 164,602,685 164,602,685 61,023,871
   
    164,602,685 164,602,687 61,023,871
   
Total assets   192,220,683 192,133,519 193,031,108
   
Current liabilities        
Trade and other payables 15 24,644,925 24,470,336 17,197,603
Development grants received in advance 7 533,809 533,809 104,428,992
Library subscribers' deposits   - - 167,530
Security and other deposits   291,490 291,490 295,474
   
    25,470,224 25,295,635 122,089,599
   
Net assets   166,750,459 166,837,884 70,941,509
   
Capital account 9 10,334,137 10,334,137 10,334,137
Accumulated deficit   (8,207,538) (8,120,113) (530,744)
   
    2,126,599 2,214,024 9,803,393
Deferred capital grants 8 164,623,860 164,623,840 61,138,116
   
    166,750,459 166,837,884 70,941,509
   

The accompanying notes form an integral part of these financial statements.
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Consolidated Statement Of Charges In Capital Account & Accumulated Deficit For The FY Ended 31 March 2001
  Notes
Capital account
Accumulated deficit
Total
    $ $ $
         
Balance at 1 April 2000   10,334,137 (530,744) 9,803,393
         
Deficit for the financial year   - (7,676,794) (7,676,794)
         
   
Balance at 31 March 2001   10,344,137 (8,207,538) 2,126,599
   

The accompanying notes form an integral part of these financial statements.
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Statement Of Charges In Capital Account & Accumulated Deficit - The Board For The FY Ended 31 March 2001
 
Capital account
Accumulated deficit
Total
  $ $ $
       
Balance at 1 April 2000 10,334,137 (530,744) 9,803,393
       
Deficit for the financial year - (7,589,369) (7,589,369)
       
 
Balance at 31 March 2001 10,344,137 (8,120,133) 2,214,024
 
Balance at 1 April 1999 10,334,137 3,693,943 14,028,080
       
Deficit for the financial year - (4,224,487) (4,224,487)
 
Balance at 31 March 2000 10,334,137 (530,744) 9,803,393
 

The accompanying notes form an integral part of these financial statements.
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Consolidated Cash Flow Statement For The FY Ended 31 March 2001
    The Group
    2000/2001 1999/2000
  Notes $ $
Cash flows from operating activities    
Deficit before grants   (152,494,159) (117,084,078)
Adjustments for:    
  Depreciation of property, plant and equipment   12,898,121 9,344,034
  Loss on disposal of property, plant and equipment   37,310 398,918
  Loss arising from property, plant and equipment written off   (93,072) -
  Interest income   (339,727) (178,528)
   
Deficit before working capital changes   (139,991,527) (107,519,654)
       
Change in operating assets and liabilities      
  Receivables   (131,679) (210,736)
  Other assets   977,016 2,172,282
  Account payables   7,275,808 2,341,447
   
Net cash used in operating activities   (131,870,382) (103,216,661)
   
Cash flows from investing activities      
Purchase of property, plant and equipment   (116,528,002) (26,370,955)
Proceeds from disposal of property, plant and equipment   13,757 818
Interest received   305,120 186,253
   
Net cash used in investing activities   (116,209,125) (26,183,884)
   
Cash flows from financial activities      
Government grants received   144,500,998 140,563,869
   
Net cash generated from financial activities   144,500,998 140,563,869
   
Net (decrease)/increase in cash and cash equivalents   (103,578,509) 11,163,324
Cash and cash equivalents at the beginning of the year 10 127,588,826 116,425,502
   
Cash and cash equivalents at the end of the year 10 24,010,317 127,588,826
   

The accompanying notes form an integral part of these financial statements.
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Notes To The Financial Statements For The FY Ended 31 March 2001

These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1.
General
The National Library Board is domiciled and incorporated in Singapore, and established under the National Library Board Act (Chapter 197). The address of its registered office is:
1 Temasek Avenue
#06-00 Millenia Tower
Singapore 039192
Under the National Library Board Act (Chapter 197), the National Library Board shall:
(a) establish and maintain libraries, and provide library information services;
(b) promote reading and encourage learning through the use of libraries and their services;
(c) provide a repository for library materials published in Singapore;
(d) acquire and maintain a comprehensive collection of library materials relating to Singapore and its people;
(e) establish standards for the training of library personnel;
(f) provide advisory and consultancy services concerning libraries and library information services;
(g) compile and maintain a national union catalogue and a national bibliography; and
(h) advise the Government on national needs and policies in respect of matters relating to publicly-funded libraries and library information services in Singapore.
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2.
Significant accounting policies
(a) Basis of accounting
The financial statements are prepared in accordance with the historical cost convention.

The financial statements are prepared in accordance with and comply with Singapore Statements of Accounting Standard. The financial statements are expressed in Singapore Dollars.
 
(b) Basis of consolidation
The consolidated financial statements include the financial statements of the Board and all its subsidiaries made up to the end of the financial year. The results of subsidiaries acquired or disposed of during the financial year are included in or excluded from the consolidated income and expenditure statement from the date of their acquisition or disposal. Intercompany balances and transactions are eliminated in full on consolidation. Where necessary, accounting policies for subsidiaries have been changed to ensure consistency with the policy adopted by the Group.
 
(c) Capital account
Government assets transferred in for the establishment of the Board are taken into the Capital Account.
 
(d) Grants
Government grants and contributions from other organisations utilised for the purchase/construction of depreciable assets are taken to the Deferred Capital Grants account.

Deferred capital grants are recognised in the income and expenditure statement over the periods necessary to match the depreciation of the assets purchased with the related grants. Upon disposal of property, plant and equipment, the balance of the related deferred capital grants is recognised in the income and expenditure statement to match the net book value of the assets written-off.

Government grants to meet the current year's operating expenses are recognised as income in the same year.
 
(e) Revenue recognition
Professional library services are rendered to government ministries and statutory boards and fees charged are recognised when services are rendered. Fees are charged based on fixed charging formula approved by the supervisory ministry.

Income from the rental of library facilities are recognised when services are rendered and charges are based on rates approved by the supervisory ministry.

Book fines are accounted for when received.

Interest income from bank account balances are recognised on the accrual basis.

Other income comprises mainly consultancy services, multi-media sessional charges and amounts from Cluster Development Fund. Fees charged on consultancy services, multi-media sessional charges and amounts from Cluster Development Fund are recognised when the relevant services are rendered.
 
(f) Taxation
Tax expense is determined on the basis of tax effect accounting using the liability method. Deferred taxation is provided on significant timing differences arising from the different treatments in accounting and taxation of relevant items.

In accounting for timing differences, deferred tax assets are not recognised unless there is reasonable expectation of their realisation.
 
(g) Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise cash in hand and deposits held at call with banks.
 
(h) Trade debtors
Trade debtors are carried at anticipated realisable value. Bad debts are written off and specific provisions are made for those debts considered to be doubtful.
 
(i) Investment in subsidiaries
Investment in subsidiaries that are intended to be held for the long term is stated in the financial statements of the Board at cost less provision. This provision is made in recognition of a diminution in the value of the investment which is other than temporary, determined on an individual basis.
 
(j) Depreciation of property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line basis to write off the cost of the assets over their estimated useful lives as follows:
 
    Years  
  Motor vehicles 5  
  Renovation 5  
  Furniture and fittings 5  
  Office equipment 5  
  Computer hardware and operating system software 4  
No depreciation is provided for works-of-art and projects-in-progress.

Depreciation is charged from the month of acquisition and no depreciation is charged in the month of disposal. Fully depreciated assets are retained in the financial statements until they are no longer in use. Property, plant and equipment costing $2,000 and less each are charged to the income and expenditure statement in the year of purchase.

Movable property, plant and equipment belonging to the National Library before its conversion to a statutory board were transferred at net book value to the Board when it was established and depreciated over their remaining useful lives.
 
(k) Expenditure on books, periodicals and serials
Expenditure on books, periodicals and serials are charged to the income and expenditure statement in the year of purchase.
 
(l) Foreign currencies
Foreign currency assets and liabilities at balance sheet date are converted to Singapore dollars at the rates of exchange ruling at the balance sheet date. Foreign currency transactions during the year are converted into Singapore dollars at the rates of exchange ruling on the transaction dates. Differences on exchange are included in the income and expenditure statement.
 
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3.
Staff costs
  The Group and The Board
  2000/2001 1999/2000
  $ $
   
Wages, salaries and allowances 36,244,005 30,230,806
Employer's contribution to Central Provident Fund 3,737,872 2,431,060
 
  39,981,877 32,661,866
 
Number of employees at the end of the year:    
  The Group and The Board
  2000/2001 1999/2000
Full time 877 812
Part time 396 402
 
  1,273 1,214
 
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4.
Other operating expenses
  The Group The Board
  2000/2001   2000/2001 1999/2000
  $   $ $
     
Advertising costs 140,333   140,333 61,356
Agency fees and commissions 21,881   21,881 31,223
Audit fees 78,000   67,000 65,000
Bad debts 528   528 455
Board member's allowance 57,500   57,500 57,500
Entertainment 35,877   35,877 35,968
Exchange programme 89,716   89,716 62,530
General supplies 192,079   192,079 71,258
Goods and Services Tax expense 5,798,154   5,798,154 2,925,984
Legal fees 213,822   213,822 65,462
Maintenance of library books 82,244   82,244 74,761
Miscellaneous 1,023,322   993,219 840,030
Network for Electronic Transfer ("NETS") charges 61,607   61,607 75,587
Other professional services 4,216,778   4,216,778 3,403,193
Other services 6,564,177   6,564,177 3,375,555
Printing expenses 590,443   590,443 359,230
Public Works Department ("PWD") fees 674,604   674,604 617,779
Security services 403,805   403,805 217,708
Stamp duties 1,049,670   1,049,670 920
Travelling 612,956   612,956 387,315
   
  21,907,496   21,866,393 12,728,814
   
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5.
Financial income
  The Group and The Board
  2000/2001 1999/2000
  $ $
Interest income  
- Fixed deposits 339,727 178,528
 
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6.
Operating grants
  The Group and The Board
  2000/2001 1999/2000
  $ $
   
Operating grants received during the year 88,774,900 80,675,600
Less:  
Amount transferred to deferred capital grants (Note 8) (1,154,804) (3,275,976)
 
  87,620,096 77,399,624
 
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7.
Development grants
Development grants received from the Government are used for implementing approved development projects. Except for capital expenditure on community children's libraries, all other capital-related expenditure costing above $2,000 are capitalised as property, plant and equipment. Other project costs and expenditure including books, are charged to the income and expenditure statement in the year of purchase.
 
  The Group and The Board
  2000/2001 1999/2000
  $ $
   
Development grants received in advance brought forward 104,428,992 93,550,558
Development grants received during the year 55,726,098 59,888,269
 
  160,155,090 153,438,827
 
Less:  
Development grants received in advance (533,809) (104,428,992)
Amount transferred to deferred capital grants (Note 8) (115,373,198)
(23,094,980)
 
  (115,907,007) (127,523,972)
 
Development grants utilised for the year 44,248,083 25,914,855
 
Comprising:  
Books and periodicals
18,568,281 10,612,283
Computer and other professional services 13,798,286 11,868,301
Salaries 895,692 841,101
Others 10,985,824 2,593,170
 
  44,248,083 25,914,855
 
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8.
Deferred capital grants
  The Group and The Board
  2000/2001 1999/2000
  $ $

 
Balance as at 1 April 61,138,116 43,718,390
Development grants utilised (Note 7) 115,373,198 23,094,980
Amount utilised transferred from operating grants (Note 6) 1,154,804 3,275,976
Reclassification (93,072) 593,682
 
  177,573,046 70,683,028
Less:  
Deferred capital grants amortised (12,949,186) (9,544,912)
 
Balance as at 31 March 164,623,860 61,138,116
 
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9.
Capital account
The Capital Account comprises the net book value of movable property, plant and equipment, imprest floats and specific donations and miscellaneous project account balances held by the former National Library, which were transferred to the Board on its establishment on 1 September 1995.
 
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10.
Cash and cash equivalents
Cash and cash equivalents consist of cash and bank balances and fixed deposits as follows:
  The Group   The Board
  2000/2001   2000/2001 1999/2000
  $   $ $
Fixed deposits
1,809,748   1,809,748 1,179,226
Cash and bank balances 22,200,569   22,108,403 126,409,600
   
  24,010,317   23,918,151 127,588,826
   
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11.
Reveivables
  The Group   The Board
  2000/2001   2000/2001 1999/2000
  $   $ $
Trade debtors
846,809   851,809 715,130
Receivables from subsidiary (non-trade) -   5,000 -
   
  846,809   851,809 715,130
   
The amount receivable from the subsidiary is unsecured, interest free and is repayable on demand.
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12.
Other current assets
  The Group and The Board
  2000/2001 1999/2000
  $ $

 
Net Goods and Services Tax recoverable 173,879 106,981
Advance payment 61,800 -
Accrued revenue 205,964 40,387
Deposits 1,777,389 1,525,380
Prepayments 541,840 2,030,533
 
  2,760,872 3,703,281
 
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13.
Investment in subsidiaries
Name of subsidiary/
country of incorporation
Principal activities Country of business Equity holding Cost of investment
      2000/2001 1999/2000 2000/2001 1999/2000
      % % $ $
Shares held by National Library Board            
Cybrarian Holdings Pte Ltd Singapore Investment holding Singapore 100 - 2 -
Singapore            
             
Shares held by Cybrarian Holidngs Pte Ltd
           
Cybrarian Ventures Pte Ltd Investment holding Singapore 100 - - -
Singapore            
             
         
          2 -
         
Acquisition of subsidiary
On 15 August 2000, the Board acquired 100% of the ordinary issued share capital of $2 in Cybrarian Holdings Pte Ltd for cash. Cybrarian Holdings Pte Ltd and its subsidiary, Cyberian Ventures Pte Ltd contributed an operating loss of $87,425 to the Group for the period from 15 August 2000 to 31 March 2001.
 
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14.
Property, plant and equipment
  Motor
vehicles
Renovation Furniture
& fittings
Office equipment Computer hardware
and software
Works-of-art Project-in-progress Total
  $ $ $ $ $ $ $ $
The Group and The Board
                 
Cost                
At 1 April 2000 184,655 18,199,710 2,985,319 8,375,376 25,262,498 791,918 34,008,470 89,807,946
Additions 250,795 148,190 368,701 1,092,666 6,461,466 116,252 108,089,932 116,528,002
Disposals - (161,741) (74,275) (121,777) (1,104,006) - - (1,461,799)
Transfer - 27,676,906 21,013 297,600 5,375,903 - (33,371,422) -
 
At 31 March 2001 435,450 45,863,065 3,300,758 9,643,865 35,995,861 908,170 108,726,980 204,874,149
 
                 
Accumulated depreciation
At 1 April 2000 120,288 7,110,366 1,490,039 4,997,095 15,066,287 - - 28,784,075
Disposals - (149,994) (67,840) (111,274) (1,081,624) - - (1,410,732)
Depreciation of charge 22,939 5,152,230 590,356 1,640,955 5,491,641 - - 40,271,464
 
At 31 March 2001 143,227 12,112,602 2,012,555 6,526,776 19,476,304 - - 40,271,464
 
                 
Net book value                
At 31 March 2001 292,223 33,750,463 1,288,203 3,117,089 16,519,557 908,170 108,726,980 164,602,685
 
                 
Net book value                
At 31 March 2001 64,367 11,089,344 1,495,280 3,378,281 10,196,211 791,918 34,008,470 61,023,871
 
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15.
Trade and other payables
  The Group   The Board
  2000/2001   2000/2001 1999/2000
  $   $ $
Trade payables
17,365,159   17,365,159 14,309,440
Other payables 368,070   368,070 101,940
Accrued operating expenses 6,911,696   6,737,107 2,786,223
   
  24,644,925   24,470,336 17,197,603
   
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16.
Commitments
(a) Capital commitments
Capital expenditure approved by the Board during the year but not provided for in the accounts is as follows:
  The Group and The Board
  2000/2001 1999/2000
  $ $

 
Amount approved and contracted 27,874,206 58,647,257
Amount approved but not contracted 3,442,881 9,733,152
 
(b) Operating lease commitments
The future minimum lease payments under non-cancellable operating leases are payable as follows:

  The Group and The Board
  2000/2001 1999/2000
  $ $

 
Not later than one financial year 12,507,143 18,569,376
Later than one financial year but not later than 5 financial years 8,572,611 14,966,312
 
  21,079,754 33,353,688
 
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17.
Contingent liabilities
  The Group and The Board
  2000/2001 1999/2000
  $ $
Obligations in respect of normal trade guarantees
 
issued by the bank 1,392,863 986,732
 
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18.
Government grants
Total grants received and utilised from Government since the establishment of the Board was $728,383,685 (1999 / 2000: $479,987,504).
  The Group and The Board
  2000/2001 1999/2000
  $ $

 
Capital grants 204,824,822 88,296,820
Operating grants 382,077,922 294,457,826
Development grants 141,480,941 97,232,858
 
  728,383,685 479,987,504
 
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19.
Subsequent event
Subsequent to the financial year end, a subsidiary, Cybrarian Ventures Pte Ltd, acquired a 100% interest in One Learning Place Pte Ltd, consisting of 200 ordinary shares of $0.01 each at par for cash. As a result, One Learning Place Pte Ltd became a wholly-owned subsidiary of the Board.
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20.
Comparative figures
Certain comparative figures have been reclassified to conform with the current year's presentation. In particular, the comparatives have been adjusted or extended to take into account the requirements of the revised Singapore Statement of Accounting Standard 1 - Presentation of Financial Statements which the Group and the Board implemented in financial year 2000/2001.
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