Annual Report 11 / 12 - Unity Pharmacy Healthcare AR12.pdf · FairPrice Co-operative Ltd, NTUC...

Annual Report 11 / 12

Copyright August 2012

Publisher: NTUC Media Co-operative Limited, for and on behalf of the Singapore Labour Foundation. The publisher owns the copyright to all photographs and articles in this book. No photograph or article may be reproduced in part or in full without the consent of the publisher.

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NTUC Media Co-operative Limited

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Core ValuesNTUC Unity Healthcare believes in making a difference and is proud of the contributions we make to the well-being of the communities we serve with these core values:

CARE : We care for people, inspiring them to be healthy at all stages of life.

RESPECT : We are inclusive in our thoughts and actions and believe in trust and dignity for all.

INTEGRITY : We are a trusted member of the community and we are fair and honest in everything we do.

PASSION : We are passionate about working together to be the first choice health and wellness partner.

Brand Vision & MissionOUR VISION is to be a partner of choice in the community for every individual and family in caring for their health and wellness.

OUR MISSION is to empower people to care for their health and wellness, enabling them to live life to the full.

03 Board Of Directors

05 Chairman’s Message

07 Management Team

08 New Group CEO And Deputy CEO

09 Interpretations On Care For Life

12 NTUC Unity - Care Beyond The Call Of Duty

15 NTUC Unity Denticare - Making Small Differences On A Daily Basis

- Quality Service And Care For Three Generations

19 Report Of The Directors And Financial Statements

82 Our Branch Locations

84 Membership Listing And Shareholdings As At 31 March 2012

CONTENTS

The NTUC Unity Healthcare brand expresses the way in which NTUC supports

and encourages well-being for everyone, at all stages of their life. Our brand is symbolised by the

logo, which captures our brand essence ‘Care for Life’. It brings together three distinct visual elements: the hand, the

heart and the Labour Movement ‘U’.

The hand extending from the Labour Movement ‘U’ symbolises the role NTUC plays in providing care, support and guidance to promote a healthy lifestyle for all. The heart is a reflection

of love, good health and passion for life. It represents the warmth of human nature and the passion that drives

our commitment to promoting wider well-being in the community. The logo portrays a hand nurturing the heart and also releasing it, representing both the

protection of life and freedom that healthy living offers to people of all ages.

About NTUC Unity Healthcare Co-operative Limited

NTUC Unity Healthcare Co-operative Limited is the largest healthcare co-operative in

Singapore with 48 Unity pharmacies and 13 Unity Denticare clinics island-wide.

Driven by the focus on Care for Life, NTUC Unity Healthcare Co-operative Limited has

revitalised its brand and offers something for everyone through Unity and

Unity Denticare.

Customers and patients can expect to be served by warm and professional staff,

pharmacists and dentists, supported by the Labour Movement’s commitment to care for

the community.

A home-grown and proud Singaporean brand, NTUC Unity Healthcare promises to

uphold its ideals and philosophy of its parent NTUC, by ensuring a healthier and happier

meaningful life for all ages and collars.

NTUC Unity Healthcare Annual Report 11 / 12

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Tan Hwee BinChairman

Nora Kang

Ameer Hamzah

Liak Teng Lit

BOARD OF DIRECTORS

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Ms Tan joined the Board in 2009. She is the Chairman of NTUC Unity Healthcare Co-operative Ltd and Executive Director of Wing Tai Holdings Ltd. Ms Tan is a Director of Singapore Labour Foundation, NTUC FairPrice Co-operative Ltd, NTUC Eldercare Co-operative Ltd and Agency for Integrated Care Pte Ltd. She is also a member of the Finance and Establishment Committee of Chinese Development Assistance Council (CDAC).

Ms Kang joined the Board in 2004. She is the Director of NTUC Unity Healthcare Co-operative Ltd. She is currently the Vice President of NTUC Central Committee, President of DBS Staff Union (DBSSU), Director of NTUC Foodfare Co-operative Ltd, Chairman of NTUC Women Committee and Member of NTUC Club Management Council. Ms Kang is also appointed by Ministry of Manpower Singapore as a member of the Industrial Arbitration Court (IAC) under the Employee Panel.

Mr Hamzah joined the Board in 2006. He is the Director of NTUC Unity Healthcare Co-operative Ltd and also the General Secretary of the Singapore Port Workers Union. He is the Chairman of the Advisory Committee of Costa Sands Resort (Pasir Ris) and is a member of the Dockers Section Committee / ITF (International Transport Workers Federation).

Mr Liak joined the Board in 2009. He is the Director of NTUC Unity Healthcare Co-operative Ltd, and is currently the Group Chief Executive Officer of Alexandra Health. Mr Liak also serves on the Boards of NTUC First Campus, Pathlight School, NorthLight School, Advisory Panel of the Singapore Human Resources Institute, Advisory Council of the Singapore Computer Society and The Advisory Panel of the School of Information Systems at the Singapore Management University.

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Gerry Lee

Pauline Goh

Diana Chia Siew Fui

Wade Cruse

Ms Goh joined the Board in 2005. She is the Director of NTUC Unity Healthcare Co-operative Ltd and Chief Executive Officer of the CBRE Group, Inc.

Ms Chia joined the Board in 1992 for a term of 12 years before she was re-elected in 2008. She is the Director of NTUC Unity Healthcare Co-operative Ltd and General Secretary of Healthcare Services Employees’ Union (HSEU). Ms Chia is the President of NTUC and serves on the Boards of NTUC Foodfare Co-operative Ltd, Industrial Arbitration Court Employee Panel, and Singapore workforce Development Agency (Healthcare ISTC). She also holds position as Chairperson of Singapore General Hospital Branch Union and NTUC Women’s Programme.

Mr Lee joined the Board in 2011. He is currently the Managing Director (Business Groups) of NTUC FairPrice Co-operative Ltd. He oversees the supermarket, hypermarket, convenience & online business groups at FairPrice. Mr Lee also serves on the Boards of Grocery Logistics of Singapore Pte Ltd, NewFront Investments Pte Ltd, Cheers Holdings (2004) Pte Ltd and NTUC Link Pte Ltd.

Mr Cruse joined the Board in 2011. He is a Partner of Bain & Company SE Asia, Inc, an advisory firm that helps many of the world’s leading companies achieve excellence in their industries.

Philip Wee

Mr Wee joined the Board in 2011. He is the founder of Claymore Training & Consultancy which manages consultancy services for SMEs. Mr Wee has 9 years of experience in the shipping industry in Singapore and over 3 decades of experience in the retail industry, working with retailers like Selfridges in London, Robinsons & Co. and IKEA Singapore.


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FINANCIAL PERFORMANCE Over the past year, the Group has focused on consolidating our resources and systems to gear up for future growth. We achieved a turnover of $92 million for the current financial year ended 31 March 2012, an increase of 1.5% compared to the previous year. Group profit before contributions and dividend was $0.9m. The lower profit achieved this year was due mainly to investments in information systems and technology, physical upgrading of stores and clinics as well as corporate branding initiative.

SPIRIT OF CARINGWhile we invested in technology to enhance our operations, we continue to focus on upholding Unity Healthcare’s unwavering caring spirit towards our customers and the community. Our team of dedicated and professional staff are ever ready to go out of their way and beyond the call of duty to serve and assist our customers. We take pride in sharing one of many such stories with you in this Report. To recognise and encourage the Unity Healthcare’s Caring spirit, deserving staff are presented with the NTUC Care Ambassador Award.

CHAIRMAN‘S MESSAGE

Our team of dedicated and

professional staff are ever ready to go out of their way and beyond

the call of duty to serve and assist our

customers.

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IMPROVING PROCESSESUnity and Unity Denticare have both rolled out a series of initiatives to increase efficiency in our stores and clinics. At Unity, we have introduced a more robust point-of-sale (POS) system to integrate our frontend and backend systems. This translates to faster and seamless operations, enabling our customers to enjoy speedier checkouts. Unity has also drawn up a new Planogram to optimize the use of retail shelf space and improve the visual merchandising aspect of the stores to enhance customers’ shopping experience.

On the Unity Denticare front, we rolled out a new Clinic Management System, that enables a more effective management of patients appointments, medical bills and treatment history.

SCALING UP ON “DO GOOD”In line with NTUC’s broader goal of creating greater social impact, Unity has launched our first house brand range of vitamins and supplements. Priced at 20 to 30 per cent cheaper than national brands, Unity aims to provide a more affordable range of products to promote health and wellness to the public.

Over the next two years, we plan to introduce more than 100 house brand products covering over-the-counter medications, vitamins and supplements, surgical supplies, first-aid kits, skin and bodycare products to bring greater value to customers.

To empower diabetic patients with more knowledge to better self-manage their chronic condition, Unity started the Sweet Spot project in partnership with Department of Pharmacy of National University of Singapore. The project aims to help diabetic patients managed and improve their condition with pharmacists’ assistance. It involves regular follow up and counselling on lifestyle modifications, medication therapy management and

close monitoring through regular health checks by Unity’s pharmacists.

Unity Denticare has also introduced a more affordable scaling and polishing package. Through collaboration with dentists in the community, the initiative is part of a wider scheme to stretch the public’s hard earned dollars.

It enables our customers to save up to 30 per cent on basic dental services. It is encouraging

that within two months of its launch, more than 300 people have

benefitted from the program and we are confident that

the scheme will help improve the standard of dental health in the community.

LOOKING AHEAD The Group remains strongly committed to growing our businesses while

creating greater social impact to the

community. As a NTUC Social Enterprise, Unity

Healthcare will strive to “Do Good” and “Do Well”. We will

continue to focus on strengthening staff capability and deliver effective operation

so that we can look forward to better performance and results in the year ahead.

APPRECIATIONI would like to thank our shareholders, customers and business partners for their unyielding support and confidence in the Group. I would also like to record my appreciation to the Board for their valuable contribution as well as the management and staff for their hard work and passion in Caring for Life.

In view of the group’s performance and our long-term growth prospects, the Board has recommended a final dividend of $0.03 per share for the financial year, subject to approval at the Annual General Meeting.

Tan Hwee BinChairman


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Chua Song KhimGroup CEO

Steven LyeDeputy CEO

Chan Yiam MoiGeneral Manager,

Unity

Melati AluiDirector,

Human Resources

Jean LokeDirector,

Real Estate

Ivy TaiChief Financial Officer

Chong Nai MinDirector,

Information Systems & Technology

Sonia TayManaging Director,Origins Health Food

Dr Lawrence YongDirector, Unity Denticare

(Clinical Practice)

MANAGEMENT TEAM

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NEW GROUP CEO AND DEPUTY CEOMr Chua Song KhimNTUC Unity Healthcare welcomes Mr Chua Song Khim as Group CEO with effect from 1 June 2012. Mr Chua also holds the appointment of Executive Director, NTUC Eldercare and Cluster Lead for the Community-based Healthcare Cluster Development.

Mr Chua has more than 25 years of experience in healthcare management. Prior to joining us, Mr Chua was the Group CEO of China Healthcare Ltd (formerly Econ Healthcare), a public-listed company that owns and operates nursing homes in Singapore and Malaysia, a private hospital in Jurong and other professional care related services. Before that, he was the CEO of the National University Hospital from 2001-2008. His other past work experiences include IT consultancy in the private sector and key management positions at the Singapore General Hospital, Toa Payoh Hospital and Changi General Hospital.

Mr Chua is a strong believer and supporter of union management partnership. He was awarded the NTUC Commendation Award in 2004 and the “Enlightened Management Partner Award” from the Healthcare Services Employees’ Union - NUH Branch in 2007. He was also a recipient of the National Day Commendation Award and the MOH Health Leader Award.

Mr Chua said, “I count it a privilege to be part of the NTUC family especially as a member of Unity Healthcare. While the company has grown much over the years through the commitment and effort of all staff, there are more opportunities ahead especially with an aging population. So I look forward to work closely with everyone in Unity to ‘do good’ and ‘do well’ in a greater way so that we can further benefit the public and stakeholders. While we work hard, let us also enjoy what we do as well as the interaction with one another as team members.”

Mr Chua holds a basic degree in Computer Science and Information Systems from NUS,

and a Masters degree in Health Services Administration (Policy & Management) from the University of Michigan (USA). He is married with 2 teenage daughters.

With his extensive experience and strong leadership, we look forward

towards attaining our Social Enterprise 2015 Vision.

Mr Steven Lye2 April 2012 saw the official appointment of Mr Steven Lye as our Deputy Chief Executive Officer of NTUC Unity

Healthcare Co-operative Limited.

Steven is an industry veteran with over 20 years of

consumer retail experience. Prior to joining NTUC Unity Healthcare, Steven had worked at Guardian Pharmacy, where he was the Operations Director.

He has a well-rounded background of the consumer retail trade including franchising where he was instrumental in starting and developing the 7-Eleven’s business. He had headed Guardian’s entry into Thailand and grown it up to 10 stores within a 2-year period.

On joining NTUC Unity Healthcare, he says: ”My business experience over the past few decades has been centred on building organizations and establishing them as a pole player in their respective areas of the market. My goal now is to leverage this substantial experience and propel NTUC Unity Healthcare to the next level, so that it can make a difference in Singapore and change the lives of people.”

With Steven’s extensive and hands-on experience, NTUC Unity Healthcare is set to make a difference in the retail pharmacy scene.


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The care for life mission means two things to me; firstly, caring for patients at different stages of their life and providing

treatment according to their age and needs. Secondly, caring for their lifelong oral health. I think an important part of this mission is to understand the patients’ needs and guide them towards achieving their goals through appropriate treatment. At Unity Denticare, we work to ensure that patients feel in control of their dental health and also understand the issues that they face with regard to their teeth. They are often very tolerant and appreciative of the extra time and effort it takes to achieve this.

Dr Erica AnwarDental Surgeon, Unity Denticare

Care for life means that we value and look after life. As a pharmacist, members of the public look to me to help them by educating them on the various supplements they can take to better enhance their quality of life. In addition, if they have certain minor ailments that can be treated with Over-The-Counter medications, I would be more than glad to share my knowledge of these medications with them. With the commitment to serve the customers, the quality of personalised and sincere care is embodied where relationships are built on solid ground, and this makes customers feel welcomed to return to Unity because we care for life.

Ms Lee Min Huey Pharmacist, Unity

INTERPRETATIONS ONCARE FOR LIFE To me, care for life means caring for the customers’ health and overall well-being. Whenever customers enter Unity, I will attend to them with sincerity, understand their needs and help them make the right product choice which will help to improve their entire well-being. The pleasant shopping experience make customers feels that they are being taken care of like a friend and some have indeed became my friends along the way and they enjoy shopping at Unity. Being aligned to our mission of care for life propelled me to do better and excel in my job. My success is the key to the company’s success.

Ms Jenny TanSenior Retail Executive, Unity

company’s success.

Ms Jenny TanSenior Retail Executive, Unity

Dental Surgeon, Unity Denticare

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Care for life means caring for our customer on a long term basis. We hope they will benefit from the services we render for a long time to come. In my role as an Operations Manager, I take care of operational matters and attend to customers’ feedback. Although it is not possible to change our operation requirement to suit every customer’s need, we try to understand their problems and come up with workable and sustainable solutions. We are looking towards a long term relationship with the customers where we can provide them, and their family, a seamless and comfortable experience at our clinics and become their lifelong provider for their dental needs.

Ms Valencia KhooOperations Manager, Unity Denticare

I think care for life means taking care of all patients with sincerity so that they can be happy.

My job is to prepare the patients for treatments and assist the dentist in providing efficient dental treatments. I will always ensure that I know where the instruments are placed so that the procedures can be carried out efficiently. I will also make sure all instruments are properly sterilised so our patients feel safe with us. When a treatment is done successfully, the patient feels happy and will return to Denticare regularly or even bring along his or her family and friends. When they are

happy, I am also happy. The care for life mission has become a guiding light in my job.

Ms Ong Ai HoonDental Assistant, Unity Denticare


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NTUC Unity Healthcare Co-operative Limited is the largest healthcare co-operative in

Singapore with 48 Unity pharmacies and 13 Unity Denticare clinics.

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he suffered from partial memory loss each time after an epilepsy attack.

When they reached his one-room flat an hour later, Mr Teo complained of breathing difficulties. Mr Ang helped him with his medication and decided to stay on to see if his condition would stabilise. That was when Mr Teo had his first epileptic attack. When the attack did not subside, the pharmacist decided to administer medication.

At 11.50pm, Mr Ang called his colleague, Mr Leng, to explain Mr Teo’s situation and consulted him for any additional thing that he could do to help Mr Teo. Although he had to start work early the next day, Mr Leng offered to help. When he arrived, both pharmacists administered an external catheter to

While Mr Melvin Teo has been a regular customer at Unity Pharmacy, the caring act of two pharmacists, Sean Ang and Leng

Yew Fei, has recently strengthened his relationship with the pharmacy.

One evening, the wheelchair-bound customer visited Unity Pharmacy to check on catheters. He then realised that his friend had left him alone in the store, so Mr Teo asked Mr Ang, the pharmacist on duty, if he could help wheel him back home as he stayed nearby. Mr Ang agreed, and when he ended work at 10.30pm, he took Mr Teo home. On their way back, Mr Teo shared how a work-related accident left him paralysed from the neck down and then as it got better, he regained his upper body movement and is now only paralysed waist down. He also shared that

CarePharmacist,

Sean Ang

Beyond The Call Of Duty

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connect to the urine bag and continued to monitor Mr Teo’s condition. At 2am, Mr Teo had a second epileptic attack. Medication was again administered, and by 3.15am, he started to recover.

The pharmacists left Mr Teo’s house at 5.30am. They took a set of keys to his home so that they could return to check on him the next day. Mr Ang also left a note for Mr Teo’s friend to let him know that they had used some of the medical supplies so that it could be replenished later.

The next day, Mr Leng called Mr Teo during lunch time, and checked on his condition at night, after work. Although Mr Teo had no recollection of what had happened the night before, he thanked them for their care and concern.

After a few weeks, Mr Teo was well enough to visit the Unity Pharmacy for his usual supplies. Occassionally he would also just drop by to greet the two pharmacists. The very special care shown by Mr Ang and Mr Leng has made Mr Teo more than just a customer to Unity; he is now a friend.

The foundation on which NTUC Unity Healthcare’s operates is to care for people, from customers to staff. As Singapore’s largest healthcare co-operative, we are very focused on the health and wellness of our community. Our staff will continue to put the

customer’s well-being at the heart of their decisions. Our customers can continue to expect value from us. NTUC Unity Healthcare

will continue to strive to be Singapore’s preferred healthcare and wellness partner.

Steven Lye, Deputy Chief Executive Officer

NTUC Unity Healthcare

Pharmacist, Leng Yew Fei


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Since joining Unity Denticare in 2001, Dr Tiju Krishnan has one hope for his patients, no matter what their level of dental health is. As a

dentist, he wants them to receive the best treatment with the utmost care, concern and professionalism. He said: “I would like my patients to leave feeling that they have received an all-round positive experience beyond the monetary value.” Parallel with NTUC Unity Healthcare’s “Care for Life” mission, the all-round positive experience include developing the relationship, rapport and most of all, trust which is vital in the healthcare profession. Dr Krishnan exemplifies the mission by treating every new and existing patient for life and providing care to them for the long term.

Making Small Differences

Dental Surgeon, Dr Tiju Krishnan

On A Daily Basis

Dr Krishnan is a very patient and gentle dentist. Be it a simple

scaling & polishing procedure or a complicated root canal treatment,

he is always able to do it with professionalism. I feel very much at

ease with him.Ms Joey Liew,

NTUC Unity Denticare Customer


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I would like my patients to leave feeling that they have received an all-round positive experience beyond the monetary value.

Dr Tiju Krishnan, Dental Surgeon,

NTUC Unity Denticare, Ang Mo Kio Hub

Dr Krishnan’s job satisfaction comes from the small differences he makes in the people’s lives on a day-to-day basis. “Almost everyday, I get the opportunity to ease someone of their pain and discomfort. The gratitude from that alone still gives me a high! It’s those nuggets of satisfaction that still keeps me happy at my job after so many years,” he said. During his many years with the Co-operative, he had plenty of opportunities to enhance his career: “Denticare has always allowed me flexibility in

Doing Good For The Community

To help provide accessible and affordable basic dental services to Singaporeans, Unity Denticare has partnered with the Agency for Integrated

Care (AIC), which is set up by the Ministry of Health (MOH), to provide dental treatment at subsidised rate. Patients under the Community Health Assist Scheme (CHAS) pay as low as $0.50 for consultation and $150 for a full set of denture. Currently, all our 13 clinics are accredited under the CHAS Scheme.

Unity Denticare has also partnered with the South East Community Development Council (CDC) to enable residents staying in the south eastern districts to have easy and affordable access to our services. Representatives from South East CDC will identify residents with dental needs and refer them to our team. The residents will then be matched to the nearest Unity Denticare clinic for the dental care services they require. Through these meaningful partnerships with various agencies, we hope to fulfil our mission of care for life.

balancing my working life and social life and this has allowed me to continue with my own ongoing professional development. They have always encouraged and supported this platform of lifelong learning.” As an employee for a Social Enterprise of the Labour Movement, Dr Krishnan recognises that “Care for Life” goes hand-in-hand with NTUC’s mission to serve the workers and look after their welfare in all aspects of their lives.

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Many people may not know this, but the first Unity Denticare logo, before it was called Unity Denticare, was proposed by one of our very

own dentists, Dr Sandra Lee. Dr Lee joined the Co-operative back in 1987 when it was located at the Singapore Conference Hall. Her decision to join the Social Enterprise was largely influenced by her desire to provide her service to society at large and to maximise the outreach of broad spectrum of patients. She said: “Unity Denticare is always progressive and growing without compromising on quality of care and service. Since I started in 1987, it has grown from one clinic to 13 today”. In her profession, Dr Lee aims to be a dentist providing a holistic approach in the solution to her patients’ dental

Quality ServiceDental Surgeon,

Dr Sandra Lee

And Care For Three Generationsneeds. In line with NTUC Unity Healthcare’s “Care For Life” mission, she places an importance in providing them with good and adequate cures and remedies with the least hassle and discomfort. Her job satisfaction comes in many forms and one of which is seeing many of her patients return to her for their dental needs. Dr Lee reckons herself as “a 3G dental surgeon” as many of her customers often recommend her services to their extended family members. She said: “Since I know them 25 years ago, they have asked and looked for me, and even traced my whereabouts to seek treatments whenever I am transferred to a different branch. It has gone into 3 generations of patients.”

Thank you Denticare for reaching out and continuing to show care to all Singaporeans in need and, not

forgetting to support the continuing education of our dentists to enhance

service to the public.

Dr Sandra Lee, Dental Surgeon,

NTUC Unity Denticare, Bishan


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Report Of The Directors & Financial StatementsAs At 31 March 2012

20 Report Of The Directors

22 Statement By Directors

23 Independent Auditors’ Report

25 Statements Of Financial Position

26 Statements Of Comprehensive Income

28 Statements Of Changes In Equity

31 Consolidated Statement Of Cash Flows

33 Notes To Financial Statements

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES REPORT OF THE DIRECTORS The Directors of the Co-operative present their report to the members together with the audited financial statements of the Group for the financial year ended 31 March 2012 and the statement of financial position of the Co-operative as at 31 March 2012 and the statement of comprehensive income and statement of changes in equity of the Co-operative for the financial year ended 31 March 2012. 1. Directors

The Directors of the Co-operative in office at the date of this report are: Tan Hwee Bin (Chairman) Pauline Goh Nora Kang Ameer Hamzah Lee Kian Hup Gerry Diana Chia Siew Fui Liak Teng Lit Wade Cruse Philip Vincent Wee

2. Arrangements to enable Directors to acquire shares or debentures Neither at the end of nor at any time during the financial year was the Co-operative a party to any arrangement whose object is to enable the Directors of the Co-operative to acquire benefits by means of the acquisition of shares in or debentures of the Co-operative or any other body corporate.

3. Directors’ interests in shares or debentures According to the register of Directors’ shareholdings kept by the Co-operative, none of the Directors of the Co-operative holding office at the end of the financial year had any interest in shares or debentures of the Co-operative or its related corporations except as detailed below:

Shareholdings registered in

the name of Director

Balance as at 1 April 2011

Balance as at 31 March 2012

Number of ordinary shares

The Co-operative

Nora Kang 50 50

Diana Chia Siew Fui 2,000 2,000


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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES REPORT OF THE DIRECTORS (Continued) 4. Directors’ contractual benefits

Since the end of the previous financial year, no Director of the Co-operative has received or become entitled to receive a benefit by reason of a contract made by the Co-operative or by a related corporation with the Director, or with a firm of which he is a member, or with a company in which he has a substantial financial interest, except as disclosed in the financial statements.

5. Share options There were no share options granted by the Co-operative or its subsidiaries during the financial year. There were no shares issued during the financial year by virtue of the exercise of options to take up unissued shares of the Co-operative or its subsidiaries. There were no unissued shares of the Co-operative or its subsidiaries under options as at the end of the financial year.

6. Auditors The auditors, BDO LLP, have expressed their willingness to accept re-appointment.

On behalf of the Board of Directors Tan Hwee Bin Pauline Goh Chairman Director Singapore 27 August 2012

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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES STATEMENT BY DIRECTORS In the opinion of the Board of Directors, (a) the consolidated financial statements of the Group, the statement of financial position, statement of

comprehensive income and statement of changes in equity of the Co-operative with the notes thereon are properly drawn up in accordance with the provisions of the Singapore Co-operative Societies Act, Cap. 62 and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Co-operative as at 31 March 2012 and of the results and changes in equity of the Group and of the Co-operative and cash flows of the Group for the financial year ended on that date;

(b) at the date of this statement, there are reasonable grounds to believe that the Co-operative will be able to pay

its debts as and when they fall due; (c) the accounting and other records required by the Act to be kept by the Co-operative have been properly kept

in accordance with the provisions of the Act; and (d) the receipt, expenditure and investment of monies and the acquisition and disposal of assets made by the Co-

operative during the year ended 31 March 2012 have been in accordance with the By-laws of the Co-operative and provisions of the Act.

On behalf of the Board of Directors Tan Hwee Bin Pauline Goh Chairman Director Singapore 27 August 2012


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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED)

Report on the Consolidated Financial Statements We have audited the accompanying financial statements of NTUC Unity Healthcare Co-operative Limited (formerly known as NTUC Healthcare Co-operative Limited)(the “Co-operative”) and its subsidiaries (the “Group”), which comprise the statements of financial position of the Group and of the Co-operative as at 31 March 2012, the consolidated statements of comprehensive income and statements of changes in equity of the Group and of the Co-operative and statement of cash flows of the Group for the financial year ended 31 March 2012, and a summary of significant accounting policies and other explanatory information as set out on pages 25 to 81. Management’s Responsibility for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Singapore Co-operative Societies Act, Cap. 62 (the “Act”) and Singapore Financial Reporting Standards, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair profit and loss accounts and balance sheets and to maintain accountability of assets. Auditors’ Responsibility 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 comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED)

Report on the Consolidated Financial Statements (Continued) Opinion In our opinion, the accompanying consolidated financial statements of the Group, the statement of financial position, statement of comprehensive income and statement of changes in equity of the Co-operative are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Co-operative as at 31 March 2012 and of the results and changes in equity of the Group and of the Co-operative and cash flows of the Group for the financial year ended on that date. Report on Other Legal and Regulatory Requirements In our opinion, (a) the accounting and other records required by the Act to be kept by the Co-operative have been

properly kept in accordance with the provisions of the Act; and (b) the receipt, expenditure and investment of monies and the acquisition and disposals of assets by the Co-

operative during the financial year ended 31 March 2012 have been made in accordance with the By-laws of the Co-operative and the provisions of the Act.

BDO LLP Public Accountants and Certified Public Accountants Singapore 27 August 2012


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The accompanying notes form an integral part of these financial statements.

Page 6

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2012

Group Co-operative

Note 2012 2011 2012 2011

$ $ $ $

ASSETS

Current assets

Cash and bank balances 4 16,333,595 18,434,671 12,074,916 14,092,395

Trade and other receivables 5 6,442,449 4,968,463 8,961,327 7,788,331

Prepayments 297,987 472,126 279,782 458,433

Inventories 6 13,318,856 12,606,173 11,824,615 11,221,281

Assets held for sale 7 - 45,906 - 45,906

36,392,887 36,527,339 33,140,640 33,606,346

Non-current assets

Investments in subsidiaries 8 - - 1,270,506 1,270,506

Available-for-sale financial assets 9 883,610 1,124,914 883,610 1,124,914

Property, plant and equipment 10 13,143,487 11,193,412 13,079,469 11,084,138

Investment properties 11 8,314,454 7,741,563 8,314,454 7,741,563

22,341,551 20,059,889 23,548,039 21,221,121

Total assets 58,734,438 56,587,228 56,688,679 54,827,467

LIABILITIES AND EQUITY

Current liabilities

Trade and other payables 13 19,960,078 18,212,569 19,622,897 18,419,800

Provision 14 795,000 - 795,000 -

Current income tax payable 238,734 191,307 - -

Share capital repayable on demand 15 17,468,824 17,576,524 17,468,824 17,576,524

38,462,636 35,980,400 37,886,721 35,996,324

Non-current liability

Deferred tax liabilities 12 1,988 1,988 - -

Total liabilities 38,464,624 35,982,388 37,886,721 35,996,324

Equity

Share capital 15 100,000 100,000 100,000 100,000

Fair value reserve 16 279,750 404,162 279,750 404,162

Retained earnings 19,331,820 19,515,967 18,422,208 18,326,981 Equity attributable to owners of

the parent 19,711,570 20,020,129 18,801,958 18,831,143

Non-controlling interest 558,244 584,711 - -

Total equity 20,269,814 20,604,840 18,801,958 18,831,143

Total liabilities and equity 58,734,438 56,587,228 56,688,679 54,827,467


Page 6

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2012

Group Co-operative

Note 2012 2011 2012 2011

$ $ $ $

ASSETS

Current assets

Cash and bank balances 4 16,333,595 18,434,671 12,074,916 14,092,395

Trade and other receivables 5 6,442,449 4,968,463 8,961,327 7,788,331

Prepayments 297,987 472,126 279,782 458,433

Inventories 6 13,318,856 12,606,173 11,824,615 11,221,281

Assets held for sale 7 - 45,906 - 45,906

36,392,887 36,527,339 33,140,640 33,606,346

Non-current assets

Investments in subsidiaries 8 - - 1,270,506 1,270,506

Available-for-sale financial assets 9 883,610 1,124,914 883,610 1,124,914

Property, plant and equipment 10 13,143,487 11,193,412 13,079,469 11,084,138

Investment properties 11 8,314,454 7,741,563 8,314,454 7,741,563

22,341,551 20,059,889 23,548,039 21,221,121

Total assets 58,734,438 56,587,228 56,688,679 54,827,467

LIABILITIES AND EQUITY

Current liabilities

Trade and other payables 13 19,960,078 18,212,569 19,622,897 18,419,800

Provision 14 795,000 - 795,000 -

Current income tax payable 238,734 191,307 - -

Share capital repayable on demand 15 17,468,824 17,576,524 17,468,824 17,576,524

38,462,636 35,980,400 37,886,721 35,996,324

Non-current liability

Deferred tax liabilities 12 1,988 1,988 - -

Total liabilities 38,464,624 35,982,388 37,886,721 35,996,324

Equity

Share capital 15 100,000 100,000 100,000 100,000

Fair value reserve 16 279,750 404,162 279,750 404,162

Retained earnings 19,331,820 19,515,967 18,422,208 18,326,981 Equity attributable to owners of

the parent 19,711,570 20,020,129 18,801,958 18,831,143

Non-controlling interest 558,244 584,711 - -

Total equity 20,269,814 20,604,840 18,801,958 18,831,143

Total liabilities and equity 58,734,438 56,587,228 56,688,679 54,827,467

25


Page 7

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012

Group Co-operative

Note 2012 2011 2012 2011

$ $ $ $

Continuing operations

Revenue 17 91,379,176 90,188,592 84,575,237 83,181,203

Other operating income 18 5,917,615 4,791,740 7,114,254 7,600,033

Consumables used (62,035,147) (61,195,705) (58,656,258) (57,994,494)

Staff costs 19 (16,048,587) (15,330,389) (14,372,066) (13,035,822)

Depreciation expense (2,559,195) (1,864,513) (2,539,299) (1,762,505)

Rental expense (9,592,134) (8,186,585) (9,638,296) (8,138,120)

Other operating expenses (6,012,849) (7,158,164) (5,718,370) (6,557,157)

Finance costs 20 (527,296) (710,558) (527,296) (710,558) Profit before income tax and

contributions 21 521,583 534,418 237,906 2,582,580

Income tax expense 22 (177,370) (163,351) - -. Profit for the financial year

from continuing operations 344,213 371,067 237,906 2,582,580

Discontinuing operation (Loss)/Profit for the financial year

from discontinuing operation 7 (199,609) 87,918 (27,112) 88,385

Profit before contributions 144,604 458,985 210,794 2,670,965

Contributions

Central Co-operative Fund 23 (25,000) (25,000) (25,000) (25,000)

Singapore Labour Foundation 24 (47,018) (340,657) (47,018) (340,657)

Profit after contributions 72,586 93,328 138,776 2,305,308

Honorarium to directors (40,200) (66,000) (40,200) (66,000)

Profit for the financial year 32,386 27,328 98,576 2,239,308

Other comprehensive income:

Available-for-sale financial assets:

- fair value (loss)/gain 16 (45,000) 129,338 (45,000) 129,338

- reclassifications to profit or loss 16 (79,412) - (79,412) - Income tax relating to

components of other comprehensive income - - - -

Other comprehensive income for the financial year, net of tax (124,412) 129,338 (124,412) 129,338

Total comprehensive income for the financial year (92,026) 156,666 (25,836) 2,368,646


Page 7


Group Co-operative

Note 2012 2011 2012 2011

$ $ $ $


Revenue 17 91,379,176 90,188,592 84,575,237 83,181,203



Staff costs 19 (16,048,587) (15,330,389) (14,372,066) (13,035,822)


Rental expense (9,592,134) (8,186,585) (9,638,296) (8,138,120)



contributions 21 521,583 534,418 237,906 2,582,580






Contributions














26


Page 7


Group Co-operative

Note 2012 2011 2012 2011

$ $ $ $


Revenue 17 91,379,176 90,188,592 84,575,237 83,181,203



Staff costs 19 (16,048,587) (15,330,389) (14,372,066) (13,035,822)


Rental expense (9,592,134) (8,186,585) (9,638,296) (8,138,120)



contributions 21 521,583 534,418 237,906 2,582,580






Contributions














Page 8

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012 (Continued)

Group Co-operative

Note 2012 2011 2012 2011

$ $ $ $ (Loss)/Profit for the financial

year attributable to:

Owners of the parent (181,147) (132,179) 98,576 2,239,308

Non-controlling interest 213,533 159,507 - -.

32,386 27,328 98,576 2,239,308

Total comprehensive income

attributable to:

Owners of the parent (305,559) (2,841) (25,836) 2,368,646

Non-controlling interest 213,533 159,507 - -.

(92,026) 156,666 (25,836) 2,368,646..

27

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29


Page 11

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012 (Continued)

Note Share

capital Fair value

reserve Retained

earnings Total

equity

$ $ $ $

Co-operative

Balance at 1 April 2011 100,000 404,162 18,326,981 18,831,143

Profit for the financial year - - 98,227 98,227 Other comprehensive income for the

financial year:


- fair value loss 9,16 - (45,000) - (45,000)

- reclassifications to profit or loss 16 - (79,412) - (79,412) Total comprehensive income for the financial year - (124,412)

98,227 (26,185)

Distributions to owners of the parent

Dividends 25 - - (3,000) (3,000)

Balance at 31 March 2012 100,000 279,750 18,422,208 18,801,958

Note Share

capital Fair value

reserve Retained

earnings Total

equity

$ $ $ $

Co-operative

Balance at 1 April 2010 100,000 274,824 16,091,673 16,466,497

Profit for the financial year - - 2,239,308 2,239,308 Other comprehensive income for the

financial year:


- fair value gain 9,16 - 129,338 - 129,338 Total comprehensive income for the financial year - 129,338

2,239,308 2,368,646


Dividends 25 - - (4,000) (4,000)

Balance at 31 March 2011 100,000 404,162 18,326,981 18,831,143


Page 11

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012 (Continued)

Note Share

capital Fair value

reserve Retained

earnings Total

equity

$ $ $ $

Co-operative

Balance at 1 April 2011 100,000 404,162 18,326,981 18,831,143

Profit for the financial year - - 98,227 98,227 Other comprehensive income for the

financial year:


- fair value loss 9,16 - (45,000) - (45,000)

- reclassifications to profit or loss 16 - (79,412) - (79,412) Total comprehensive income for the financial year - (124,412)

98,227 (26,185)


Dividends 25 - - (3,000) (3,000)

Balance at 31 March 2012 100,000 279,750 18,422,208 18,801,958

Note Share

capital Fair value

reserve Retained

earnings Total

equity

$ $ $ $

Co-operative

Balance at 1 April 2010 100,000 274,824 16,091,673 16,466,497

Profit for the financial year - - 2,239,308 2,239,308 Other comprehensive income for the

financial year:


- fair value gain 9,16 - 129,338 - 129,338 Total comprehensive income for the financial year - 129,338

2,239,308 2,368,646


Dividends 25 - - (4,000) (4,000)

Balance at 31 March 2011 100,000 404,162 18,326,981 18,831,143


30


Page 12

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012

Group

Note 2012 2011

$ $

Operating activities

Profit before income tax and contributions 321,974 622,336

Adjustments for:

Allowance for doubtful third parties trade receivables 15,601 21,249

Depreciation of property, plant and equipment 2,367,818 1,632,820

Depreciation of investment properties 235,169 235,168

Dividend income (59,076) (186,478) Dividends paid to members in respect of share capital repayable on

demand

527,296 710,558

Gain on disposal of available-for-sale financial assets (67,179) -

Interest income (49,428) (64,097)

Inventories written off 13,682 32,313

Loss on disposal of assets held for sale 36,987 -

(Gain)/Loss on disposal of property, plant and equipment (36,120) 61,222

Property, plant and equipment written off 110,826 -

Reversal of allowance for impairment loss on investment properties (808,060) (523,022)

Operating cash flows before working capital changes 2,609,490 2,542,069

Working capital changes:

Inventories (726,365) (152,772)

Trade and other receivables (1,489,587) (1,091,418)

Prepayments 174,139 (116,032)

Trade and other payables 1,539,999 1,802,098

Cash generated from operations 2,107,676 2,983,945

Contributions paid to:

- Central Co-operative Fund (25,000) (25,000)

- Singapore Labour Foundation (341,004) (541,829)

Income tax paid (129,943) (177,419)

Interest received 49,428 64,097

Directors' honorarium paid (66,000) (60,650)

Net cash from operating activities 1,595,157 2,243,144


Page 12

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012

Group

Note 2012 2011

$ $

Operating activities

Profit before income tax and contributions 321,974 622,336

Adjustments for:

Allowance for doubtful third parties trade receivables 15,601 21,249

Depreciation of property, plant and equipment 2,367,818 1,632,820

Depreciation of investment properties 235,169 235,168

Dividend income (59,076) (186,478) Dividends paid to members in respect of share capital repayable on

demand

527,296 710,558

Gain on disposal of available-for-sale financial assets (67,179) -

Interest income (49,428) (64,097)

Inventories written off 13,682 32,313

Loss on disposal of assets held for sale 36,987 -

(Gain)/Loss on disposal of property, plant and equipment (36,120) 61,222

Property, plant and equipment written off 110,826 -

Reversal of allowance for impairment loss on investment properties (808,060) (523,022)

Operating cash flows before working capital changes 2,609,490 2,542,069

Working capital changes:

Inventories (726,365) (152,772)

Trade and other receivables (1,489,587) (1,091,418)

Prepayments 174,139 (116,032)

Trade and other payables 1,539,999 1,802,098

Cash generated from operations 2,107,676 2,983,945

Contributions paid to:

- Central Co-operative Fund (25,000) (25,000)

- Singapore Labour Foundation (341,004) (541,829)

Income tax paid (129,943) (177,419)

Interest received 49,428 64,097

Directors' honorarium paid (66,000) (60,650)

Net cash from operating activities 1,595,157 2,243,144

31


Page 13

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012 (Continued)

Group

Note 2012 2011

$ $

Investing activities

Dividend received from available-for-sale financial assets 59,076 52,026

Purchase of property, plant and equipment (3,674,046) (2,033,321)

Proceeds from disposal of property, plant and equipment 76,447 33,642

Purchase of available-for-sale financial assets (8,028) -

Proceeds from disposal of available-for-sale financial assets 192,099 -

Proceeds from disposal of assets held for sale 8,919 -

Net cash used in investing activities (3,345,533) (1,947,653)

Financing activities

Dividends paid (243,000) (703,722)

Withdrawal of shares (107,700) (187,428)

Net cash used in financing activities (350,700) (891,150)

Net change in cash and bank balances (2,101,076) (595,659)

Cash and bank balances at beginning of financial year 18,434,671 19,030,330

Cash and bank balances at end of financial year 4 16,333,595 18,434,671


Page 13

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012 (Continued)

Group

Note 2012 2011

$ $

Investing activities

Dividend received from available-for-sale financial assets 59,076 52,026

Purchase of property, plant and equipment (3,674,046) (2,033,321)

Proceeds from disposal of property, plant and equipment 76,447 33,642

Purchase of available-for-sale financial assets (8,028) -

Proceeds from disposal of available-for-sale financial assets 192,099 -

Proceeds from disposal of assets held for sale 8,919 -

Net cash used in investing activities (3,345,533) (1,947,653)

Financing activities

Dividends paid (243,000) (703,722)

Withdrawal of shares (107,700) (187,428)

Net cash used in financing activities (350,700) (891,150)

Net change in cash and bank balances (2,101,076) (595,659)

Cash and bank balances at beginning of financial year 18,434,671 19,030,330

Cash and bank balances at end of financial year 4 16,333,595 18,434,671


32

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012

These notes form an integral part of and should be read in conjunction with the financial statements. 1. General corporate information

NTUC Unity Healthcare Co-operative Limited (formerly known as NTUC Healthcare Co-operative Limited) (the "Co-operative") is incorporated and domiciled in the Republic of Singapore. The Co-operative’s registered office address and principal place of business is at 55 Ubi Avenue 1, #08-01, Singapore 408935. The Co-operative’s registration number is S92CS0208D. The principal activities of the Co-operative are those relating to retail pharmacy, provisions of dental and medical services and dental care facilities to members and the public, and investment holding. The principal activities of the subsidiaries are set out in Note 8 to the financial statements. On 11 October 2011, the Co-operative changed its name from NTUC Healthcare Co-operative Limited to NTUC Unity Healthcare Co-operative Limited. The consolidated financial statements of the Co-operative and its subsidiaries (the “Group”) and the statement of financial position, statement of comprehensive income and statement of changes in equity of the Co-operative for the financial year ended 31 March 2012 were authorised for issue in accordance with a Directors’ resolution dated 27 August 2012.

2. Summary of significant accounting policies 2.1 Basis of preparation of financial statements

The financial statements are prepared in accordance with the provisions of the Co-operative Societies Act, Cap. 62 (the “Act”) and Singapore Financial Reporting Standards ("FRS") including related Interpretations of FRS (“INT FRS”). The financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies below. Although the Group’s and Co-operative’s current liabilities exceeded its current assets by $2,069,749 and $4,746,081 respectively as at 31 March 2012, the financial statements have been prepared on the basis that the Group and Co-operative are going concern as the net current liabilities position is due mainly to the share capital repayable on demand. In the opinion of the Directors, based on past experience, the share capital will not be substantially redeemed in the next twelve months. Items included in the individual financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The financial statements of the Group and of the Co-operative are measured and presented in Singapore dollar, which is the functional currency of the Co-operative.

33

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Formerly known as NTUC HEALTHCARE CO-OPERATIVE LIMITED) AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012 (Continued)

2. Summary of significant accounting policies (Continued)

2.1 Basis of preparation of financial statements (Continued)

Critical accounting judgements and key sources of estimation uncertainty used that are significant to the financial statements are disclosed in Note 3 to the financial statements. During the current financial year, the Group and the Co-operative have adopted the new or revised FRS and INT FRS that are relevant to their operations and effective for annual periods beginning or after 1 April 2011. The adoption of the new or revised FRS and INT FRS did not result in any substantial changes to the Group’s and the Co-operative’s accounting policies and has no material effect on the amounts reported for the current and prior financial year. FRS and INT FRS issued but not yet effective At the date of authorisation of these financial statements, the following FRS and INT FRS were issued but not effective:

Effective date (Annual periods beginning on or

after) FRS 1 : Amendments to FRS 1 – Presentation of Items of Other 1 July 2012

Comprehensive Income

FRS 12 : Amendments to FRS 12 - Deferred Tax: Recovery of 1 January 2012

Underlying Assets

FRS 19 : Employee Benefits (Revised) 1 January 2013

FRS 27 : Separate Financial Statements 1 January 2013

FRS 28 : Investments in Associates and Joint Ventures 1 January 2013 FRS 32 : Amendments to FRS 32 – Offsetting of Financial Assets and

Financial Liabilities 1 January 2014

FRS 101 : Amendments to FRS 101 – Severe Hyperinflation and 1 July 2011

Removal of Fixed Dates for First-time Adopters

: Amendments to FRS 101 – Government Loans 1 January 2013

FRS 107 : Amendments to FRS 107 – Transfers of Financial Assets 1 July 2011 : Amendments to FRS 107 – Offsetting of Financial Assets and

Financial Liabilities 1 January 2013

FRS 110 : Consolidated Financial Statements 1 January 2013

FRS 111 : Joint Arrangements 1 January 2013

FRS 112 : Disclosure of Interests in Other Entities 1 January 2013

FRS 113 : Fair Value Measurement 1 January 2013

INT FRS 120 : Stripping Costs in the Production Phase of a Surface Mine 1 January 2013

Improvements to FRSs 2012 1 January 2013 Consequential amendments were also made to various standards as a result of these new/revised standards.


34



2.1 Basis of preparation of financial statements (Continued)

FRS and INT FRS issued but not yet effective (Continued) The management anticipates that the adoption of the above FRS and INT FRS in future periods, if applicable, will not have a material impact on the financial statements of the Co–operative in the period of initial adoption, except as disclosed below. Amendments to FRS 1 Presentation of Items of Other Comprehensive Income The amendments to FRS 1 changes the grouping of items presented in other comprehensive income. Items that could be reclassified to profit or loss at a future point in time would be presented separately from items which will never be reclassified. As the amendments only affect the presentation of items that are already recognised in other comprehensive income, the Group does not expect any impact on its financial position or performance upon adoption of this standard. FRS 112 Disclosures of Interests in Other Entities FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interest in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. FRS 112 requires an entity to disclose information that helps users of its financial statements to evaluate the nature and risks associated with its interests in other entities and the effects of those interests on its financial statements. The Group is currently determining the impact of the disclosure requirements. As this is a disclosure standard, it will have no impact to the financial position and financial performance of the Group when implemented.

FRS 113 Fair Value Measurement FRS 113 provides guidance on how to measure fair values including those for both financial and non-financial items and introduces significantly enhanced disclosure about fair values. It does not address or change the requirements on when fair values should be used. When measuring fair value, an entity is required to use valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. It establishes a fair value hierarchy for doing this. This FRS is to be applied for annual periods beginning on or after 1 April 2013. The Group will determine the impact of this standard when it becomes effective.

2.2 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Co-operative and its subsidiaries made up to the end of the financial year. The financial statements of the subsidiaries are prepared for the same reporting date as that of the parent.

35



2.2 Basis of consolidation (Continued)

Subsidiaries are consolidated from the date on which control is transferred to the Group up to the effective date on which that control ceases. In preparing the consolidated financial statements, inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of impairment loss of the asset transferred. Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. Non-controlling interest in the acquiree may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the parent. When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognised in other comprehensive income in relation to the subsidiary are accounted for (i.e. reclassified to profit or loss or transferred directly to accumulated profits) in the same manner as would be required if the relevant assets or liabilities were disposed of. The fair value of any investments retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under FRS 39 Financial Instruments: Recognition and Measurement or, when applicable, the cost on initial recognition of an investment in an associate or jointly controlled entity.

2.3 Business combinations Business combinations from 1 July 2009 The acquisition of subsidiaries is accounted for using the acquisition method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.


36



2.3 Business combinations (Continued)

Business combinations from 1 July 2009 (Continued) The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under FRS 103 are recognised at their fair values at the acquisition date, except for non-current assets (or disposal groups) that are classified as held-for-sale in accordance with FRS 105 Non-Current Assets Held for Sale and Discontinued Operations, which are recognised and measured at the lower of cost and fair value less costs to sell. Where a business combination is achieved in stages, the Group’s previously held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. the date the Group attains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under FRS 103 are recognised at their fair value at the acquisition date, except that: • deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are

recognised and measured in accordance with FRS 12 Income Taxes and FRS 19 Employee Benefits respectively;

• liabilities or equity instruments related to the replacement by the Group of an acquiree’s share-

based payment awards are measured in accordance with FRS 102 Share-based Payment; and • assets (or disposal groups) that are classified as held for sale in accordance with FRS 105 Non-current

Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see below), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date. The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date, and is subject to a maximum of one year. Goodwill arising on acquisition is recognised as an asset at the acquisition date and initially measured at cost, being the excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer previously held equity interest (if any) in the entity over net acquisition-date fair value amounts of the identifiable assets acquired and the liabilities assumed.

37



2.3 Business combinations (Continued)

Business combinations from 1 July 2009 (Continued) If, after reassessment, the Group’s interest in the net fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain. Business combinations before 1 July 2009 In comparison to the above mentioned requirements, the following differences applied: Business combinations are accounted for by applying the purchase method. Transaction costs directly attributable to the acquisition formed part of the acquisition costs. The non-controlling interest (formerly known as minority interest) was measured at the proportionate share of the acquiree's identifiable net assets. Business combinations achieved in stages were accounted for as separate steps. Adjustments to those fair values relating to previously held interests are treated as a revaluation and recognised in equity. When the Group acquired a business, embedded derivatives separated from the host contract by the acquiree are not reassessed on acquisition unless the business combination results in a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required under the contract. Contingent consideration was recognised if, and only if, the Group had a present obligation, the economic outflow was probable and a reliable estimate was determinable. Subsequent measurements to the contingent consideration affected goodwill.

2.4 Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash and deposits with banks and financial institutions. Cash and cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

2.5 Financial assets The Group and the Co-operative classify their financial assets as loans and receivables and available-for-sale financial assets. The classification depends on the purpose of which the assets were acquired. The management determines the classification of the financial assets at initial recognition and re-evaluates this designation at the end of the reporting period, where allowed and appropriate.


38



2.5 Financial assets (Continued)

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are classified within “cash and bank balances” and “trade and other receivables” on the statements of financial position.

(ii) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are not classified in any other categories. They are included in non-current assets unless the management intends to dispose the assets within 12 months after the end of the reporting period.

Recognition and derecognition Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group and the Co-operative commit to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group and the Co-operative have transferred substantially all risks and rewards of ownership. On derecognition of a financial asset, the difference between the carrying amount and the net consideration proceeds is recognised in profit or loss. Any amount in the fair value reserve relating to the asset is also recognised in profit or loss. Initial and subsequent measurement Financial assets are initially recognised at fair value plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. After initial recognition, loans and receivables are carried at amortised cost using the effective interest method, less impairment loss, if any. After initial recognition, available-for-sale financial assets are re-measured at fair value with gains or losses from changes in fair value of the financial asset are recognised in other comprehensive income except that impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gains or losses previously recognised in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment when the financial assets are derecognised. The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the relevant year. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instruments, or where appropriate, a shorter period.

39



2.5 Financial assets (Continued)

Impairment The Group and the Co-operative assess at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. (i) Loans and receivables

An allowance for impairment loss of loans and receivables is recognised when there is objective evidence that the Group and the Co-operative will not be able to collect all amounts due according to the original terms of the receivables. The amount of allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss is recognised in profit or loss. If, in a subsequent year, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed either directly or by adjusting an allowance account. Any subsequent reversal of an impairment loss is recognised in profit or loss, to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date.

(ii) Available-for-sale financial assets Significant or prolonged decline in fair value below cost, significant financial difficulties of the issuer or obligor, and the disappearance of an active trading market are considerations to determine whether there is objective evidence that investment securities classified as available-for-sale financial assets are impaired. If an available-for-sale asset is impaired, an amount comprising the difference between its cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss, is transferred from other comprehensive income to profit or loss. Reversals of impairment losses on debt instruments are not recognised in profit or loss. Reversals of impairment losses on debt instruments are recognised in profit or loss if the increase in fair value of the debt instrument can be objectively related to an event occurring after the impairment loss was recognised in profit or loss.

2.6 Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis and includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.


40



2.6 Inventories (Continued)

Net realisable value is the estimated selling price at which the inventories can be realised in the normal course of business less estimated costs of completion and costs incurred in marketing and distribution. When necessary, allowance is made for obsolete, slow-moving and defective inventories to adjust the carrying value of those inventories to the lower of cost and net realisable value.

2.7 Non-current assets (or disposal groups) and discontinued operations held for sale Non-current assets (or disposal groups) are classified as held-for-sale if its carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Events or circumstances may extend the period to complete the sale beyond one year and this does not preclude an asset (or disposal group) from being classified as held for sale if the delay is caused by events or circumstances beyond the entity’s control and there is sufficient evidence that the entity remains committed to its plan to sell the disposal group. Non-current assets (or disposal groups) classified as held-for-sale are measured at the lower of the asset’s previously carrying amount and fair value less costs to sell. Any impairment loss on initial classification and subsequent measurement is recognised as an expense. Any subsequent increase in fair value less costs to sell (not exceeding the accumulated impairment loss that has been previously recognised) is recognised in profit or loss. A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and (i) represents a separate major line of business or geographical area of operations; (ii) is part of a single co-ordinated plan to dispose of a separate major line or geographical area of

operations; and (iii) is a subsidiary acquired exclusively with a view to resale.

2.8 Subsidiary A subsidiary is an entity (including special purposes entity) over which the Group has power to govern the financial and operating policies, generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The investments in subsidiaries are accounted for at cost less accumulated impairment losses in the Co-operative’s separate financial statements.

41



2.9 Property, plant and equipment

Property, plant and equipment are initially recorded at cost. Subsequent to initial recognition, property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. The cost of property, plant and equipment includes expenditure that is directly attributable to the acquisition of the items. Dismantlement, removal or restoration costs are included as part of the cost of property, plant and equipment if the obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring or using the property, plant and equipment. Subsequent expenditure relating to the property, plant and equipment that has already been recognised is added to the carrying amount of the asset when it is probable that the future economic benefits, in excess of standard of performance of the asset before the expenditure was made, will flow to the Group and the Co-operative, and the cost can be reliably measured. Other subsequent expenditure is recognised as an expense during the financial year in which it is incurred. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in profit or loss in the financial year the asset is derecognised. Depreciation is calculated using the straight-line method so as to allocate the depreciable amounts of the property, plant and equipment over their estimated useful lives as follows:

Years

Freehold property 50

Leasehold building 50

Leasehold properties 50

Dental equipment 5

Medical equipment 5

Furniture and fittings 3

Computer and office equipment 3 to 5

Computer software 2 to 5

Motor vehicles 3 to 10 The residual values, useful life and depreciation method of property, plant and equipment are reviewed at each financial year-end to ensure that the residual values, period of depreciation and depreciation method are consistent with previous estimates and expected pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment.


42



2.10 Investment properties

Investment properties, which are properties held to earn rentals and/or for capital appreciation are initially recognised at cost and subsequently carried at cost less accumulated depreciation and impairment losses. Depreciation is charged using the straight-line method, so as to write off the cost over their estimated useful lives of 50 years. The residual values, useful lives and depreciation method of investment properties are reviewed and adjusted as appropriate, at the end of each reporting period. The effect of any revision is included in profit or loss when the changes arise. Investment properties are subject to renovations or improvements at regular intervals. The costs of major renovations and improvements are capitalised as additions and the carrying amounts of the replaced components are written off to profit or loss. The costs of maintenance, repairs and minor improvement are charged to profit or loss when incurred. Investment properties are derecognised when either they have been disposed of or when the investment properties are permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of investment properties are recognised in profit or loss in the financial year of retirement or disposal. Transfers are made to or from investment properties only when there is a change in use. For a transfer from investment properties to owner occupied property, the deemed cost for subsequent accounting is the fair value at the date of change in use. For a transfer from owner occupied property to investment properties, the property is accounted for in accordance with FRS 16 Property, Plant and Equipment, up to the date of change in use.

2.11 Jointly-controlled assets A jointly-controlled asset is a joint venture in which the venturers have joint control over the assets contributed to or acquired for the purposes of the joint venture. Jointly-controlled assets do not involve the establishment of a corporation, partnership or other entity. This includes situations where the participants derive benefit from the joint activity through a share of the production, rather than by receiving a share of the results of trading. The Group’s and the Co-operative’s proportionate interest in the assets, liabilities, revenues, expenses and cash flows of jointly-controlled assets are incorporated into the Group’s and the Co-operative’s financial statements under the appropriate headings.

2.12 Impairment of non-financial assets The carrying amounts of the non-financial assets are reviewed at the end of each reporting period to determine whether there is any indication of impairment loss and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If any such indication exists, or when annual impairment testing for an asset is required, the asset’s recoverable amount is estimated.

43



2.12 Impairment of non-financial assets (Continued)

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that are largely independent from other assets and groups of assets. Impairment loss is recognised in profit or loss unless it reverses a previous revaluation, credited to other comprehensive income, in which case it is also recognised in other comprehensive income up to the amount of any previous revaluation. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. Recoverable amount is determined for individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. The fair value less costs to sell is the amount obtainable from the sale of an asset or cash-generating unit in an arm’s length transaction between knowledgeable, willing parties, less costs of disposal. Value in use is the present value of estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life, discounted at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating unit for which the future cash flow estimates have not been adjusted.

An assessment is made at the end of each reporting period as to whether there is any indication that an impairment loss recognised in prior periods for an asset may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. An impairment loss recognised in prior periods is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognised. Reversals of impairment loss are recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal in excess of impairment loss recognised in profit or loss in prior periods is treated as a revaluation increase. After such a reversal, the depreciation is adjusted in future years to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

2.13 Financial liabilities Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities.

Financial liabilities are classified as at fair value through profit or loss if the financial liability is either held for trading or it is designated as such upon initial recognition.


44



2.13 Financial liabilities (Continued)

The accounting policies adopted for other financial liabilities are set out below: (i) Trade and other payables

Trade and other payables are recognised initially at cost which represents the fair value of the consideration to be paid in the future, less transaction cost, if any, for goods received or services rendered, whether or not billed to the Group and the Co-operative, and are subsequently measured at amortised cost using the effective interest method. Gains or losses are recognised in profit or loss when the liabilities are derecognised as well as through the amortisation process.

(ii) Share capital repayable on demand Ordinary shares issued by the Co-operative which are repayable on demand as they are redeemable at the option of the shareholders are initially recorded at the proceeds received, net of direct issue costs. Dividends paid to the shareholders are recognised in profit or loss as finance costs.

Recognition and derecognition Financial liabilities are recognised on the statements of financial position when, and only when, the Group and the Co-operative become parties to the contractual provisions of the financial instruments. Financial liabilities are derecognised when the contractual obligation has been discharged or cancelled or expired. On derecognition of a financial liability, the difference between the carrying amount and the consideration paid is recognised in profit or loss. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

2.14 Provision Provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

45



2.14 Provision (Continued)

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. Changes in the estimated timing or amount of the expenditure or discount rate are recognised in profit or loss when the changes arise.

2.15 Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of their liabilities. Ordinary shares are classified as equity and recognised at the fair value of the consideration received by the Co-operative. Incremental costs directly attributable to the issuance of new equity instruments are shown in equity as a reduction from the proceeds.

2.16 Dividends Equity dividends are recognised when they become legally payable. Interim dividends are recorded in the financial year in which they are declared payable. Final dividends are recognised as a liability in the financial year in which the dividends are approved by the members.

2.17 Revenue recognition Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and services rendered in the ordinary course of business. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. Revenue is presented, net of rebates and discounts and sales related taxes. Revenue from sale of goods is recognised upon passage of title to the customer which coincides with the delivery and acceptance, the significant risks and rewards of ownership has been transferred to customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably. Revenue from rendering of services is recognised as and when the services are completed. Rental income under operating leases is recognised in profit or loss on a straight-line basis over the term of the lease. Dividend income is recognised in profit or loss when the shareholders’ right to receive the payment is established. Interest income is recognised on a time-apportionment basis using the effective interest method.


46



2.18 Employee benefits

Defined contribution plans Contributions to defined contribution plans are recognised as expenses in profit or loss in the same financial year as the employment that gives rise to the contributions. Employee leave entitlement Employee entitlements to annual leave are recognised when they accrue to employees. An accrual is made for the estimated liability for unutilised annual leave as a result of services rendered by employees up to the end of the reporting period.

2.19 Leases When the Group and the Co-operative are the lessors of operating leases Leases where the Group and the Co-operative retains substantially all risks and rewards incidental to the ownership are classified as operating leases. Assets leased out under operating leases are included in investment properties. Rental income from operating leases (net of any incentives given to lessees) is recognised in profit or loss on a straight-line basis over the lease term. When the Group and the Co-operative are the lessees of operating leases Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are recognised in profit or loss on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the financial year in which termination takes place.

2.20 Grants Grants are recognised at the fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Where the grants relate to expenditures, which are not capitalised, the fair value of grants are credited to profit or loss as and when the underlying expenses are included and recognised in profit or loss to match such related expenditures.

47



2.20 Grants (Continued)

Government grant – Jobs credit scheme The Singapore government introduced a cash grant known as the Jobs Credit Scheme in its Budget for 2009 in a bid to help businesses preserve jobs in the economic downturn. The amount received for jobs credit are paid to eligible employers in instalments and the amount an employer can receive would depend on the fulfillment of the conditions as stated in the Scheme. The Group and the Co-operative recognise the amounts received for jobs credit at their fair values as other income in the month of receipt of these grants from the government.

2.21 Income tax

Income tax expense for the financial year comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. Current income tax expense is the expected tax payable on the taxable income for the financial year, using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to income tax payable in respect of previous financial years. Deferred tax is provided using the liability method, for temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax is measured using the tax rates expected to be applied to the temporary differences when they are realised or settled, based on tax rates enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the related tax benefit will be realised. Unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred income tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition. Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same tax authority and where there is intention to settle the current tax assets and liabilities on a net basis.


48



2.21 Income tax (Continued)

Deferred tax liabilities are recognised for all taxable temporary differences associated with investments in subsidiaries, except where the timing of the reversal of the temporary difference can be controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Revenue, expenses and assets are recognised net of the amount of sales tax except: • when the sales tax that is incurred on purchase of assets or services in not recoverable from the tax

authorities, in which case the sales tax is recognised as part of cost of acquisition of the asset or as part of the expense item as applicable; and

• Receivables and payables that are stated with the amount of sales tax included.

2.22 Foreign currencies In preparing the financial statements, transactions in currencies other than the entity’s functional currency (“foreign currencies”) are recorded at the rates of exchange prevailing on the date of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period. Non-monetary items carried at fair value that are denominated in foreign currencies are re-translated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. Exchange differences arising on the settlement of monetary items and on re-translating of monetary items are recognised in profit or loss for the financial year. Exchange differences arising on the re-translation of non-monetary items carried at fair value are included in profit or loss for the financial year except for differences arising on the re-translation of non-monetary items in respect of which gains and losses are recognised in other comprehensive income. For such non-monetary items, any exchange component of that gain or loss is also recognised in other comprehensive income.

3. Critical accounting judgements and key sources of estimation uncertainty In the application of the Group’s and the Co-operative’s accounting policies, which are described in Note 2, management made judgements, estimates and assumptions about the carrying amounts of assets and liabilities that were not readily apparent from other sources. The estimates and associated assumptions were based on historical experience and other factors that were considered to be reasonable under the circumstances. Actual results may differ from these estimates. These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

49


3. Critical accounting judgements and key sources of estimation uncertainty (Continued)

3.1 Critical judgements in applying the accounting policies

The following are the critical judgements, apart from those involving estimations (see below), that management has made in the process of applying the Group’s and the Co-operative’s accounting policies and that have the significant effect on the amounts recognised in the financial statements. (i) Impairment of investments in subsidiaries and financial assets

The Group and the Co-operative follow the guidance of FRS 36 and FRS 39 in determining whether an investment or a financial asset is impaired. This determination requires significant judgement. The Group and the Co-operative evaluate, among other factors, the duration and extent to which the fair value of an investment or a financial asset is less than its cost, and the financial health of and near-term business outlook for the investment or financial asset, including factors such as industry and sector performance, changes in technology and operational and financing cash flow.

3.2 Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities and the reported amounts of revenue and expenses within the next financial year are discussed below. (i) Allowance for doubtful receivables

The management establishes allowance for doubtful receivables on a case-by-case basis when they believe that payment of amounts owed is unlikely to occur. In establishing these allowances, the management considers its historical experience and changes to its customers’ financial position. If the financial conditions of receivables were to deteriorate, resulting in impairment of their ability to make the required payments, additional allowances may be required. The carrying amounts of the Group’s and the Co-operative’s trade and other receivables as at 31 March 2012 were $6,442,449 (2011: $4,968,463) and $8,961,327 (2011: $7,788,331) respectively.


50



3.2 Key sources of estimation uncertainty (Continued)

(ii) Allowance for inventory obsolescence

Inventories are stated at the lower of cost and net realisable value. The management primarily determines cost of inventories using the weighted average method. The management estimates the net realisable value of inventories based on assessment of receipt or committed sales price and provide for excess and obsolete inventories based on historical usage, estimated future demand and related pricing. In determining excess quantities, the management considers recent sales activities, related margin and market positioning of its products. However, factors beyond its control, such as demand levels, could change from period to period. Such factors may require the Group and the Co-operative to reduce the value of their inventories. The carrying amounts of the Group’s and the Co-operative’s inventories as at 31 March 2012 were $13,318,856 (2011: $12,606,173) and $11,824,615 (2011: $11,221,281) respectively.

(iii) Depreciation of property, plant and equipment and investment properties

Property, plant and equipment and investment properties are depreciated on a straight-line method over their estimated useful lives. The management estimates the useful lives of these assets to be within 2 to 50 years. The carrying amounts of the Group’s and the Co-operative’s property, plant and equipment as at 31 March 2012 were $13,143,487 (2011: $11,193,412) and $13,079,469 (2011: $11,084,138) respectively. The carrying amounts of the Group’s and the Co-operative’s investment properties were $8,314,454 (2011: $7,741,563) and $8,314,454 (2011: $7,741,563) respectively. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.

(iv) Income taxes

The Group recognises expected liabilities for income tax based on estimation of the likely taxes due, which requires significant judgement as to the ultimate tax determination of certain items. Where the final tax outcome of these matters differs from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions, in the period in which such determination is made. The carrying amounts of the Group’s current income tax payable and deferred tax liabilities as at 31 March 2012 were $238,734 (2011: $191,307) and $1,988 (2011: $1,988).

51



3.2 Key sources of estimation uncertainty (Continued)

(v) Provision

Provision for reinstatement costs refers to costs required to reinstate its office premise and retail

outlets to its original state according to the terms and conditions of the respective tenancy agreements. The calculation requires the management to estimate the expected future cash outflows as a result of site restoration and review the estimates used on an annual basis to reflect current market assessments with reference to the area of the rented space.

Due to the nature of such provisions, estimates are subject to significant uncertainty. The carrying amounts of the Group’s and the Co-operative’s provision for reinstatement costs as

at 31 March 2012 were $795,000 (2011: $Nil) and $795,000 (2011: $Nil) respectively.

4. Cash and bank balances

Group Co-operative

2012 2011. 2012 2011.

$ $. $ $. Cash at bank 10,368,070 5,563,202 8,864,127 4,364,190

Fixed deposits 5,794,825 12,704,539 3,040,689 9,563,625

Cash on hand 170,700 166,930 170,100 164,580

16,333,595 18,434,671 12,074,916 14,092,395 The Group’s and the Co-operative’s fixed deposits mature on varying dates between 3 months to 1 year (2011: 4 months to 1 year) and 3 to 9 months (2011: 4 to 6 months) respectively for the financial year ended 31 March 2012. The weighted average effective interest rates on the fixed deposits range from 0.25% to 0.43% (2011: 0.31% to 0.59%) per annum. Cash and bank balances are denominated in Singapore dollar.


52


5. Trade and other receivables

Group Co-operative

2012 2011 2012 2011

$ $. $ $.

Trade receivables

- third parties 2,616,876 2,539,269 1,645,721 1,760,587

- related parties 10,580 28,698 10,580 28,698

2,627,456 2,567,967 1,656,301 1,789,285 Allowance for doubtful trade

receivables

- third parties (36,850) (21,249) (36,850) (21,249)

2,590,606 2,546,718 1,619,451 1,768,036

Non-trade receivables

- third parties 932,053 415,832 699,827 401,288

- subsidiaries - - 3,736,526 3,622,276

- related parties 719,727 109,709 719,727 109,709

1,651,780 525,541 5,156,080 4,133,273 Allowance for doubtful non-

trade receivables

- third parties (74,982) (74,982) (74,982) (74,982)

1,576,798 450,559 5,080,098 4,058,291

Deposits 2,275,045 1,971,186 2,260,778 1,962,004

6,442,449 4,968,463 8,961,327 7,788,331 Trade amounts due from third parties and related parties are unsecured, non-interest bearing and generally on 30 (2011: 30) days credit terms. Non-trade amounts due from subsidiaries and related parties are unsecured, non-interest bearing and repayable on demand. Movement in the allowance for doubtful third parties trade receivables are as follows:

Group and Co-operative

2012. 2011

$. $ Balance at beginning of financial year 21,249 -

Allowance made during the financial year 15,601 21,249

Balance at end of financial year 36,850 21,249

53


5. Trade and other receivables (Continued)

Movement in the allowance for doubtful third parties non-trade receivables are as follows:


2012. 2011

$. $ Balance at beginning and end of financial year 74,982 74,982 As at 31 March 2012, the Group and the Co-operative carried out a review on the recoverable amount of their trade and other receivables. The review led to the recognition of an allowance for doubtful trade receivables of $15,601 (2011: $21,249) that have been recognised in the Group’s and the Co-operative’s profit or loss and included in “Other operating expenses” line item. Trade and other receivables are denominated in the following currencies:

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Singapore dollar 6,312,407 4,697,780 8,961,327 7,788,331

Australian dollar 67,643 30,128 - -

New Zealand dollar - 87,175 - -

United States dollar 58,628 153,380 - -

Other 3,771 - - -

6,442,449 4,968,463 8,961,327 7,788,331

6. Inventories

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Finished goods 13,318,856 12,606,173 11,824,615 11,221,281 The cost of inventories recognised as an expense and included in “Consumables used” line item in the Group’s and the Co-operative’s profit or loss amounted to $62,035,147 (2011: $61,195,705) and $58,656,258 (2011: $57,994,494) respectively and included in “(Loss)/Profit for the financial year from discontinuing operation” line item in the Group’s and the Co-operative’s profit or loss amounted to $219,401 (2011: $309,500) and $171,221 (2011: 309,573) respectively.


54


7. Assets held for sale/discontinued operation

Provision for medical service operation During the financial year ended 31 March 2010, management had resolved to cease the provisions of medical services. All medical clinics had ceased or disposed except for a clinic in which management had resolved to dispose the inventories and equipment. Negotiations with several interested parties had subsequently taken place. Owing to circumstances beyond the Group’s and the Co-operative’s control, the assets, which were expected to be sold within the previous twelve months, have not been sold as at the reporting date. The management remains committed to its plan to sell the assets. The inventories and equipment attributable to the business have been classified as assets held for sale and are presented separately in the statements of financial position. The proceeds from disposal are expected to exceed the net carrying amount of the relevant inventories and equipment and, accordingly, no impairment loss has been recognised on the assets held for sale. The major classes of assets comprising the assets held for sale are as follows:

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Inventories - 44,133 - 44,133

Equipment - 1,773 - 1,773

- 45,906 - 45,906 Provision for chinese medical service operation On 28 November 2011, the Group entered into a business agreement (“Agreement”) with The Lifestar Group Pte Ltd (“Lifestar”) to dispose of its TCM Wellness Business to Lifestar. The effective transfer date is 1 December 2011. Pursuant to the Agreement, the purchase price amounting to $95,000 included taking over of equipment and drug inventory of the 3 remaining outlets in Ang Mo Kio, Choa Chu Kang and Jurong Point. With the completion of the above transaction, the Group’s profit or loss arising from the TCM Wellness Business will be presented as “Discontinued operations” in the Consolidated Statement of Comprehensive Income.

55


7. Assets held for sale/discontinued operation (Continued)

The (loss)/profit for the financial year from the discontinuing operation is analysed as follows:

Group Co-operative

2012 2011 2012 2011

$ $ $ $

(Loss)/profit for the financial year : - Provision of medical service

operation (27,112) 87,918 (27,112) 88,385 - Provision of chinese medical

service (172,497) - - -

(199,609) 87,918 (27,112) 88,385 The results of the discontinuing operation for the financial year are as follows:

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Revenue 890,738 744,013. 271,684 744,553.

Other operating income 48,261 1,500. 10,923 1,500.

Consumables used (219,401) (309,500) (171,221) (309,573)

Staff costs (566,065) (213,335) (68,097) (213,335)

Depreciation expense (43,792) (3,475) (253) (3,475)

Rental expense (181,330) (49,332) (16,444) (49,332)

Other operating expenses (128,020) (81,953) (53,704) (81,953) (Loss)/Profit for the financial year,

representing total comprehensive income for the financial year (199,609) 87,918. (27,112) 88,385.

The impact of the discontinued operations on the cash flows of the Group is as follows:

Group

2012 2011

$ $ Operating cash (outflows)/ inflows (73,114) 86,514

Investing cash inflows 49,246 -

Total cash (outflows)inflows (23,868) 86,514


56


8. Investments in subsidiaries

Co-operative

2012. 2011

$. $ Unquoted equity shares, at cost 1,501,764 1,501,764.

Allowance for impairment loss (231,258) (231,258)

1,270,506. 1,270,506. Movement in allowance for impairment loss on investments in subsidiaries was as follows:

Co-operative

2012. 2011

$. $ Balance at beginning and end of financial year 231,258. 231,258.

Details of the subsidiaries are as follows:

Name of company Principal activities Effective equity interest 2012 2011 % % NHC Health Resources Pte Ltd

(Singapore) (1) Trading of health products 100 100

Unicare Health Pte Ltd (Singapore) (1)

Trading of health products 100 100

Origins Healthcare Pte Ltd (Singapore) (1)

Trading of health products 80 80

NTUC Unity TCM Wellness Pte Ltd (Singapore) (1)

Dormant 100 100

(1) Audited by BDO LLP, Singapore

57


9. Available-for-sale financial assets


2012. 2011

$. $ Balance at beginning of financial year 1,124,914 861,124

Additions 8,028 134,452

Disposal (204,332) -

Fair values changes recognised in equity (Note 16) (45,000) 129,338

Balance at end of financial year 883,610 1,124,914 Additions during the previous financial year represent shares received as dividends. Details of the available-for-sale financial assets are as follows:


2012. 2011

$. $ Quoted equity investment, at fair value 616,500 661,500.

Unquoted equity investments, at cost 467,110 663,414.

Allowance for impairment loss (200,000) (200,000)

267,110 463,414.

Total 883,610 1,124,914. Quoted equity investment has no fixed maturity date nor coupon rate. The fair value of this investment is based on closing quoted market prices on the last market day of the financial year. As the unquoted investments do not have quoted market prices in an active market and there are no other available methods to reasonably estimate the fair values, it is not practicable to determine the fair values of the unquoted investments with sufficient reliability and these are stated at cost less impairment loss, if any. Available-for-sale financial assets are denominated in Singapore dollar.


58

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-

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(765

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At 3

1 M

arch

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2 36

6,67

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1,90

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At 3

1 M

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2 1,

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95

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94,6

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6,62

2

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98

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1,

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s -

-

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(1

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97

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4,94

0,64

3

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6,99

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n 39

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1 1,

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60

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At 1

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1,71

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978,

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s -

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Recl

assi

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-

-

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285,

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61

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At 3

1 M

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2 1,

712,

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778,

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1,17

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8

977,

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8

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At 1

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Dep

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n 39

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2

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1 M

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2 36

6,67

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1,71

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s -

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7,

698

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17

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-

-

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(18,

216)

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15,3

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(1

83,3

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(4

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assi

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-

-

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37,4

14

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7,41

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-

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sfer

red

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vest

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t pr

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ties

-

-

(2,7

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-

-

-

-

-

-

(2

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At 3

1 M

arch

201

1 1,

712,

781

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778,

521

1,

174,

048

97

8,02

9

4,62

2,36

3

581,

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4,28

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60

8,73

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Acc

um

ula

ted

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n

At 1

Apr

il 20

10

287,

692

1,

594,

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4,76

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2,

157,

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9,87

5

738,

317

-

-

6,

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Dep

reci

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n 39

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5,57

1

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00

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0,51

0

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7

93,4

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1,

677

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1,

527,

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-

-

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(3

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-

-

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37,4

14

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-

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Tran

sfer

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t pr

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-

(489

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)

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-

-

-

-

-

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At 3

1 M

arch

201

1 32

7,18

4

1,75

0,16

9

192,

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4,29

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2,93

0,48

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Car

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At 3

1 M

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201

1 1,

385,

597

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028,

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98

1,89

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8,67

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608,

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11

,084

,138


62


10. Property, plant and equipment (Continued)

For the purpose of consolidated statement of cash flows, the Group’s additions to property, plant and equipment were financed as follows:

Group

2012 2011

$ $ Additions during the financial year 4,469,046 2,033,321

Less: Provision for reinstatement costs (795,000) -

Cash payment to acquire plant and equipment 3,674,046 2,033,321 11. Investment properties

Group and.

Co-operative.

$.

Cost

At 1 April 2011 and 31 March 2012 11,345,933

Accumulated depreciation and impairment loss

At 1 April 2011 3,604,370

Depreciation for the financial year 235,169

Reversal of allowance for impairment loss (808,060)

At 31 March 2012 3,031,479

Carrying amount

At 31 March 2012 8,314,454

Cost

At 1 April 2010 8,592,813

Transferred from property, plant and equipment 2,753,120

At 31 March 2011 11,345,933

Accumulated depreciation and impairment loss

At 1 April 2010 3,402,608

Transferred from property, plant and equipment 489,616

Depreciation for the financial year 235,168

Reversal of allowance for impairment loss (523,022)

At 31 March 2011 3,604,370

Carrying amount

At 31 March 2011 7,741,563

63


11. Investment properties (Continued)

As at 31 March 2012, the fair value of the investment properties amounting to approximately $11,317,000 (2011: $10,199,000) has been determined on the basis of valuation carried out by an independent valuer having an appropriate recognised professional qualification and recent experience in the location and category of the property being valued. The valuation was arrived at by reference to market evidence of transaction prices for similar properties and was performed in accordance with International Valuation Standards. Rental income earned by the Group and Co-operative from the investment properties amounted to $513,292 (2011: $474,212). Direct operating expenses arising on the investment properties during the financial year amounted to $202,020 (2011: $109,507). Included in investment properties is an amount of approximately $4,167,000 (2011: $3,449,000) representing the Group’s and the Co-operative’s 25% share in certain units jointly-owned with NTUC Income. As at 31 March 2012, the Group and the Co-operative have no contingent liabilities and capital commitments in respect of those units.

12. Deferred tax liabilities

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Deferred tax liabilities 1,988 1,988 - - The following are the major deferred tax liabilities recognised by the Group and movements thereon during the financial year:

Tax.

losses.

Accelerated. tax.

depreciation. Net.

$. $. $. Balance at 1 April 2011 and 31 March 2012 - 1,988 1,988

Balance at 1 April 2010 -. 6,255 6,255

Charge to profit or loss - (4,267) (4,267)

Balance at 31 March 2011 - 1,988 1,988


64


13. Trade and other payables

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Trade payables

- third parties 14,342,011 13,944,402 14,206,432 14,086,860

- subsidiaries - - 85,907 747,756

- related parties - 7,413 - 7,413

14,342,011 13,951,815 14,292,339 14,842,029

Non-trade payables

- third parties 1,986,676 1,156,684 1,982,281 1,076,509

- subsidiaries - - 925,684 307,140

- related parties 53,311 238,064 53,311 238,064

2,039,987 1,394,748 2,961,276 1,621,713

Dividend payable 911,755 671,748 71,755 67,748

Central Co-operative Fund 25,000 25,000 25,000 25,000

Singapore Labour Foundation 46,670 340,657 46,670 340,657

Honorarium to directors 51,150 66,000 51,150 66,000

Accrued operating expenses 2,543,505 1,762,601 2,174,707 1,456,653

19,960,078 18,212,569 19,622,897 18,419,800 Trade and non-trade amounts due to third parties are unsecured, non-interest bearing and generally on 60 (2011: 60) days term. Trade amounts due to subsidiaries and related parties are unsecured, non-interest bearing and repayable within trade credit terms. Non-trade amounts due to subsidiaries and related parties are unsecured, non-interest bearing and repayable on demand.

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Singapore dollar 19,910,403 18,206,942 19,622,897 18,419,800

Australian dollar 44,558 5,627 - -

United States dollar 4,597 - - -

Other 520 - - -

19,960,078 18,212,569 19,622,897 18,419,800

65


14. Provision


2012 2011

$ $ Provision for reinstatement costs 795,000 -

Movements in provision for reinstatement costs:


2012 2011

$. $

Balance at beginning of financial year - -

Provision made 795,000 -

Balance at end of financial year 795,000 - Provision for reinstatement costs The provision for reinstatement costs are the estimated costs of dismantle, removal or restoration of plant and equipment arising from the acquisition or use of assets, which are recognised and included in the cost of property, plant and equipment.

15. Share capital


2012 2011

$ $

Issued and fully paid 17,676,524 (2011: 17,863,952) ordinary shares at beginning of financial

year 17,676,524 17,863,952 Withdrawn 107,700 (2011: 187,428) ordinary shares during the financial

year (107,700) (187,428)

17,568,824 (2011: 17,676,524) ordinary shares at end of financial year 17,568,824 17,676,524

The share capital is represented by:

Share capital repayable on demand as current liabilities (a) 17,468,824 17,576,524

Share capital classified as equity (b) 100,000 100,000

17,568,824 17,676,524 (a) This relates to the shares held by members where the Co-operative does not have the right of refusal to

redeem the members' shares. Members include an individual person or institution or organisation duly admitted to the membership of the Co-operative in accordance with the By-Law of the Co-operative.

(b) This comprised only the portion that relates to founder member National Trade Union Congress.


66


15. Share capital (Continued)

(c) In accordance with By-laws 4.6, every member shall, unless otherwise disqualified under the Co-

operative Societies Act, Chapter 62 or the By-laws, have the right to:

(i) avail himself of all services of the Society; (ii) stand for election to office, subject to the provisions of the Act and the By-laws, where applicable; (iii) be co-opted to hold office in the Society, where applicable; (iv) participate and vote at general meetings; and (v) enjoy all other rights, privileges or benefits provided under the By-laws.

(d) The Co-operative has one class of ordinary share which carries no right to fixed income. During the financial year ended 31 March 2012, in accordance with the By-Laws of the Co-operative, 107,700 (2011: 187,428) ordinary shares of $1 each were withdrawn.

16. Fair value reserve

The fair value reserve represents the cumulative fair value changes, net of tax, of available-for-sale financial assets until they are disposed of or impaired.


2012 2011

$ $ At beginning of financial year 404,162 274,824

Fair value (losses)/gains (Note 9) (45,000) 129,338

Transfer to profit or loss upon disposal (79,412) -

At end of financial year 279,750 404,162

17. Revenue

Group Co-operative

2012 2011 2012 2011

$ $ $ $


Sales of goods 79,973,351 79,271,865 73,169,412 72,264,476

Dental services 11,405,825 10,916,727 11,405,825 10,916,727

91,379,176 90,188,592 84,575,237 83,181,203

Discontinuing operations

Medical services 271,684 744,013 271,684 744,533

Chinese medical services 619,054 - - -

890,738 744,013 271,684 744,533

Total 92,269,914 90,932,605 84,846,921 83,925,736

67


18. Other operating income

Group Co-operative

2012 2011 2012 2011

$ $ $ $

Continuing operations Reversal of allowance for

impairment loss on investment property 808,059 523,022 808,059 523,022

Dividend income 59,076 186,478 1,019,076 2,602,478

Interest income 49,428 64,097 30,993 48,566 Management fee income from

subsidiaries - - 9,000 46,000

Rental income 1,220,316 1,023,086 1,414,805 1,394,806

Advertising income 3,140,501 2,426,422 3,140,501 2,426,422

Royalty fees 15,852 98,043 15,852 98,043 Government grant – Job credit

scheme - 52,547 - 57,264 Gain on disposal of available-for-

sale financial assets 67,179 - 67,179 -

Others 557,204 418,045 608,789 403,432

Total 5,917,615 4,791,740 7,114,254 7,600,033

Discontinuing operations

Gain on disposal of business 36,119 - - -

Others 12,142 1,500 10,923 1,500

48,261 1,500 10,923 1,500

Total 5,965,876 4,793,240 7,125,177 7,601,533


68


19. Staff costs

Group Co-operative

2012 2011 2012 2011

$ $ $ $

Continuing operations Salaries, bonuses and other

short-term benefits 14,493,695 13,988,635 12,948,432 11,867,380 Employer’s contribution to

defined contribution plans 1,554,892 1,341,754 1,423,634 1,168,442

16,048,587 15,330,389 14,372,066 13,035,822

Discontinuing operations Salaries, bonuses and other

short-term benefits 516,228 206,261 66,323 206,261 Employer’s contribution to

defined contribution plans 49,837 7,074 1,774 7,074

566,065 213,335 68,097 213,335

Total 16,614,652 15,543,724 14,440,163 13,249,157 Included in staff costs were key management remuneration as shown in Note 27 to the financial statements.

20. Finance costs

Group Co-operative

2012 2011 2012 2011

$ $ $ $

Continuing operations Dividends paid to members in

respect of share capital repayable on demand 527,296 710,558 527,296 710,558

69


21. Profit before income tax and contributions

The above is arrived at after charging:

Group Co-operative

2012 2011 2012 2011

$ $ $ $

Other operating expenses

Continuing operations Advertisement and promotion

expenses 953,098 1,238,230 855,159 1,178,764

Inventories written off 12,172 28,867 - 10,331

Linkpoint charges 1,044,612 914,769 996,680 910,616 Loss on disposal of property,

plant and equipment - 61,222 - 58,851 Property, plant and equipment

written off 110,826 - 110,827 -

Discontinuing operations Allowance for doubtful third

parties trade receivables 15,601 21,249 15,601 21,249

Inventories written off 1,510 3,446 1,510 3,446 Loss on disposal of assets held

for sale 36,987 - 36,987 -

22. Income tax expense

Group

2012 2011

$ $


Current income tax

- current financial year 179,535 167,618

- over provision in prior financial years (2,165) -

177,370 167,618

Deferred income tax

- current financial year - (4,267)

Total income tax expense recognised in profit or loss 177,370 163,351


70


22. Income tax expense (Continued)

Reconciliation of effective income tax rate

Group

2012 2011

$ $

Profit before income tax and contributions: Continuing operations 521,583 534,418

Discontinuing operations (199,609) 87,918

321,974 622,336

Income tax expense at Singapore’s statutory income tax of 17% 54,736 105,797

Tax effect of expenses not deductible for income tax purposes 130,884 1,997

Tax effect of income not subject to income tax - (802)

Income tax exemption (25,925) (69,902)

Over provision of current income tax in prior financial years (2,165) -

Utilisation of previously unrecognised deferred tax assets (1,249) -

Deferred tax assets not recognised 27,652 97,073

Others (6,563) 29,188

177,370 163,351 The Co-operative is a co-operative society registered under the Co-operative Societies Act, Chapter 62 which is exempted from income tax under Section 13 of the Income Tax Act, Chapter 134. Unrecognised deferred tax assets The movement of unrecognised deferred tax assets is as follows:

Group

2012 2011

$ $ Balance at beginning of financial year 211,140 114,067

Amount not recognised during financial year 27,652 97,073

Utilisation of deferred tax assets not recognised previously (1,249) -

Balance at end of financial year 237,543 211,140

71


22. Income tax expense (Continued)

The unrecognised deferred tax assets arise from the following temporary differences:

Group

2012 2011

$ $ Unutilised tax losses 182,694 179,529

Unabsorbed capital allowances 26,401 26,401

Property, plant and equipment 28,448 5,210

237,543 211,140

As at 31 March 2012, the Group has unutilised tax losses of approximately $1,075,000 (2011: $1,056,000) and unabsorbed capital allowances of approximately $155,000 (2011: $155,000) available to offset against future taxable profits subject to the agreement by the tax authorities and provisions of the tax legislations of Singapore. No deferred tax assets have been recognised in respect of the unutilised tax losses and unabsorbed capital allowance of approximately $209,000 (2011: $206,000) as the management is not confident that there will be sufficient future taxable profits to realise these future benefits. Accordingly, these deferred tax assets have not been recognised in the financial statements of the Group in accordance with the accounting policy in Note 2.21 to the financial statements.

23. Central Co-operative Fund In accordance with Section 71 of the Co-operative Societies Act, Chapter 62, the Co-operative is required to contribute 5% of the first $500,000 of its profit before contributions and distributions to the Central Co-operative Fund. During the financial year, the Co-operative made a contribution of $25,000 (2011: $25,000) towards the Central Co-operative Fund.

24. Singapore Labour Foundation In accordance with Section 71 of the Co-operative Societies Act, Chapter 62, the Co-operative opted to contribute 20% of its profit before contributions and distributions in excess of $500,000 to the Singapore Labour Foundation. During the financial year, the Co-operative made a contribution of $47,018 (2011: $340,657) to the Singapore Labour Foundation.


2012 2011

$ $

Contribution

- current financial year 47,018 575,957

- over provision in prior financial years - (235,300)

47,018 340,657


72


25. Dividends

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Dividends to owners of the

parent First and final exempt (one-tier)

dividend paid of $0.03 (2011: $0.04) per share in respect of the previous financial year 3,000 4,000 3,000 4,000

Group

2012 2011

$ $

Dividends to non-controlling interest Interim exempt (one-tier) dividend paid of $6 (2011: $15) per share in

respect of the current financial year 240,000 600,000

In respect of the current financial year, the Directors propose that a final dividend of $0.03 per share be paid to shareholders at the end of the reporting period, or on a pro-rata basis, if shareholders held such shares for a lesser period than one year.

26. Operating lease commitments

The Group and the Co-operative as lessees The Group and the Co-operative lease various retail outlets under non-cancellable operating leases. The leases have variable lease charge of 0.25% to 15.0% (2011: 0.5% to 15.0%) of targeted gross sales as stipulated on the lease agreement and are negotiated for an average term of 3 years. The future minimum lease payables under non-cancellable operating leases contracted for at the end of the reporting period but not recognised as liabilities, are as follows:

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Within one financial year 8,782,102 7,683,266 8,658,054 7,506,333 After one financial year but

within five financial years 7,433,699 6,486,007 7,414,421 6,417,802

16,215,801 14,169,273 16,072,475 13,924,135

73


26. Operating lease commitments (Continued)

The Group and the Co-operative as lessors The Group and the Co-operative lease out various retail and office space under non-cancellable operating leases. The leases are committed for an average of 3 years. The future minimum lease receivables under non-cancellable operating leases contracted for at the end of the reporting period but not recognised as receivables, are as follows:


2012 2011

$ $ Within one financial year 1,138,684 725,138

After one financial year but within five financial years 378,860 498,238

1,517,544 1,223,376 27. Significant related party transactions

A related party is defined as follows: (a) A person or a close member of that person’s family is related to the Group and Co-operative if that person:

(i) Has control or joint control over the Co-operative; (ii) Has significant influence over the Co-operative; or (iii) Is a member of the key management personnel of the Group or Co-operative of a parent of the Co-

operative.

(b) An entity is related to the Group and the Co-operative if any of the following conditions applies: (i) The entity and the Co-operative are members of the same group (which means that each parent,

subsidiary and fellow subsidiary is related to the others). (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a

member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint ventures of a third entity and the other entity is an associate of the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of either the Co-

operative is itself such a plan, the sponsoring employers are also related to the Co-operative. (vi) The entity is controlled or jointly controlled by a person identified in (a); (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key

management personnel of the entity (or of a parent of the entity). Many of the Group’s and Co-operative’s transactions and arrangements are with related parties and the effect of these on the basis determined between the parties is reflected in these financial statements. The balances are unsecured, interest-free and repayable on demand unless otherwise stated.


74


27. Significant related party transactions (Continued)

In addition to the transactions disclosed elsewhere in the financial statements, there were the following significant related party transactions based on terms as agreed between the parties during the financial year:

Group Co-operative

2012 2011 2012 2011

$ $ $ $

With subsidiaries

Sales - - 90 -

Purchase of goods - - 517,772 1,029,752

Management fee income - - 9,000 46,000

Rental income - - 194,489 374,720

Dividend income - - 960,000 2,416,000

Group Co-operative

2012 2011 2012 2011

$ $ $ $

With related parties

Dividend income 31,247 33,276 31,247 33,276

Rental paid 2,362,550 2,384,818 2,362,550 2,384,818

Insurance expenses - 72,052 - 72,052

Patronage rebates/discounts 1,044,612 914,881 1,044,612 910,618

Management fee expense 238,700 509,641 238,700 509,641

Consultancy fees 312,249 139,200 - -

Compensation of key management personnel The compensation of Directors and other members of the key management personnel of the Group and the Co-operative during the financial year were as follows:

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Short-term benefits 815,690 346,235 503,431 240,590

Post-employment benefits 26,752 14,055 26,752 14,055

Directors’ honorarium 40,200 66,000 40,200 66,000

882,642 426,290 570,383 320,645

75


28. Financial instruments, financial risks and capital management

The Group’s and the Co-operative’s activities expose them to credit risk, market risk (including foreign currency risks and interest rate risks), and liquidity risk. The Group’s and the Co-operative’s overall risk management strategy seek to minimise adverse effects from the volatility of financial markets on the Group’s and the Co-operative’s financial performance. There has been no change to the Group’s and the Co-operative’s exposure to these financial risks or the manner in which it manages and measures the risk. 28.1 Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a loss to the Group and the Co-operative. The Group and the Co-operative have adopted a policy of only dealing with creditworthy counterparties. The Group and the Co-operative perform ongoing credit evaluation of its counterparties’ financial condition and does not require collaterals. The carrying amount of financial assets recorded in the financial statements, grossed up for any allowances for losses, represents the Group’s and the Co-operative’s maximum exposure to credit risk. There is no significant concentration of credit risk with any single customer or group of customers of the total trade and other receivables of the Group and the Co-operative as at the end of the reporting period. The Group’s and the Co-operative’s major classes of financial assets are trade and other receivables and cash and bank balances. Trade receivables that are neither past due nor impaired are substantially companies with good collection track record with the Group and the Co-operative. The age analysis of past due trade receivables but not impaired is as follows:

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Past due 1 to 30 days 391,344 627,798 211,663 499,305

Past due 31 to 60 days 284,014 169,919 70,618 140,657

Past due 61 to 90 days 59,203 25,948 50,186 20,685

Past due more than 90 days 291,031 272,615 251,659 272,173


76


28. Financial instruments, financial risks and capital management (Continued)

28.2 Market risk

(i) Foreign exchange risk

Currency risk arises from transactions denominated in currency other than the functional currency of the entities within the Group. The currencies that give rise to this risk are primarily Australian dollar, New Zealand dollar and United States dollar. At the end of the reporting period, the carrying amounts of monetary assets and monetary liabilities of the Group denominated in currencies other than the functional currency of the entities within the Group are as follows:

Assets Liabilities

2012 2011 2012 2011

$ $ $ $

Group

Australian dollar 67,643 30,128 44,558 5,627

New Zealand dollar - 87,175 - -

United States dollar 58,628 153,380 4,597 - At the end of the reporting period, the Co-operative did not enter into significant foreign currency transactions other than its functional currency which is Singapore dollar. Accordingly, the Co-operative is not exposed to foreign exchange risk exposure. Foreign currency sensitivity analysis The Group’s exposure to foreign currency risks are mainly in Australian dollar, New Zealand dollar and United States dollar. The following table details the Group’s sensitivity to a 5% change in Australian dollar, New Zealand dollar and United States dollar against the respective functional currencies of the entities within the Group. The sensitivity analysis assumes an instantaneous 5% change in the foreign currency exchange rates from the end of the reporting period, with all other variables held constant. The results of the model are also constrained by the fact that only monetary items, which are denominated in Australian dollar, New Zealand dollar and United States dollar are included in the analysis. Consequentially, reported changes in the values of some of the financial instruments impacting the results of the sensitivity analysis are not matched with the offsetting changes in the values of certain excluded items that those instruments are designed to finance or hedge.

77



28.2 Market risk (Continued)

(i) Foreign exchange risk (Continued)

Profit or loss

2012 2011

$ $

Group

Australian dollar

Strengthens against Singapore dollar 1,154 1,225

Weakens against Singapore dollar (1,154) (1,225)

New Zealand dollar

Strengthens against Singapore dollar - 4,359)

Weakens against Singapore dollar - (4,359)

United States dollar

Strengthens against Singapore dollar 2,702 7,669.

Weakens against Singapore dollar (2,702) (7,669)

(ii) Interest rate risk Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Group and the Co-operative do not have significant exposure to interest-bearing financial instrument at the end of the reporting period.

28.3 Liquidity risk Liquidity risk refers to the risk in which the Group and the Co-operative encounter difficulties in meeting their short-term obligations. Liquidity risk is managed by matching the payment and receipt cycle. The Group and the Co-operative actively manage their operating cash flows so as to finance the Group’s and the Co-operative’s operations. As part of its overall prudent liquidity management, the Group and the Co-operative maintain sufficient levels of cash to meet their working capital requirement.


78



28.3 Liquidity risk

The following table details the Group’s and the Co-operative’s remaining contractual maturity for its non-derivative financial instruments. The table has been drawn up based on undiscounted cash flows of financial instruments based on the earlier of the contractual date or when the Group and the Co-operative are expected to pay. The table below includes both interest and principal cash flows.

Group Within one

financial year

Co-operative Within one

financial year

$ $

2012

Financial assets

Non-interest bearing 7,496,759 10,015,037

Interest bearing 16,162,895 11,904,816

23,659,654 21,919,853 Financial liabilities


2011

Financial assets


Interest bearing 18,267,741 13,927,815

24,528,048 23,005,640 Financial liabilities

Non-interest bearing 35,789,093 35,996,324 Non-interest bearing financial liabilities include share capital repayable on demand which are not expected to be substantially redeemed within one financial year.

28.4 Capital management policies and objectives The Group and the Co-operative manage their capital to ensure that the Group and the Co-operative are able to continue as going concern and to maintain an optimal capital structure so as to maximise shareholders’ value. The Group and the Co-operative manage their capital structure and make adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group and the Co-operative may adjust the return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the financial year.

79



28.4 Capital management policies and objectives (Continued)

The Group and the Co-operative monitor capital using a gearing ratio, which is calculated as net debt divided by equity attributable to owners of the parent plus net debt. The Group and the Co-operative include within net debt, trade and other payables and share capital repayable on demand less cash and bank balances.

Group Co-operative

2012 2011 2012 2011

$ $ $ $ Trade and other payables 19,960,078 18,212,569 19,622,897 18,419,800 Share capital repayable on

demand 17,468,824 17,576,524

17,468,824 17,576,524

Total debt 37,428,902 35,789,093 37,091,721 35,996,324

Less: Cash and bank balances (16,333,595) (18,434,671) (12,074,916) (14,092,395)

Net debt 21,095,307 17,354,422. 25,016,805 21,903,929.

Total equity 19,711,570 20,020,129. 18,801,958 18,831,143.

Total capital 40,806,877 37,374,551. 43,818,763 40,735,072. Gearing ratio 51.7 % 46.4% 57.1% 53.8%

28.5 Fair value of financial assets and financial liabilities The carrying amounts of the current financial assets and current financial liabilities approximate their fair values as at the end of the reporting period due to the relatively short period of maturity of these financial instruments. The fair values of financial assets and liabilities are determined as follows: • the fair value of financial assets and financial liabilities with standard terms and conditions and

traded on active liquid markets are determined with reference to quoted market prices; and

• the fair value of other financial assets and financial liabilities (excluding derivative instruments) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis.

The management considers that the carrying amounts of the financial assets and financial liabilities recorded at amortised cost in the financial statements approximate their fair values.


80



28.5 Fair value of financial assets and financial liabilities (Continued)

The Group and the Co-operative classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: ● Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or

liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and ● Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable

inputs).


Level 1. Level 2. Level 3.

$. $. $.

2012

Assets

Available-for-sale financial assets 616,500 - 267,110

2011

Assets

Available-for-sale financial assets 661,500 196,304 267,110

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ANG MO KIO HUB53 Ang Mo Kio Ave 3#B2-21/25Singapore 569933Tel: 6 552 2001

ALEXANDRA RETAIL CENTRE460 Alexandra Road#02-04/05/06 Alexandra Retail CentreSingapore 119963Tel: 6 278 8791

BEDOKBlk 212 Bedok North St 1#02-147 (inside NTUC FairPrice)Singapore 460212Tel: 6 445 9551

BISHAN Blk 510 Bishan St 13#01-520 (at level 2 of FairPrice)Singapore 570510Tel: 6 259 3449

BUKIT MERAHBlk 166 #01-3531Bukit Merah Central(inside NTUC FairPrice)Singapore 150166Tel: 6 276 3407

BUKIT PANJANG PLAZA1 Jelebu Road#01-06Singapore 677743Tel: 6 760 2363

BUKIT TIMAH PLAZA1 Jalan Anak Bukit#B1-01 (inside NTUC FairPrice)Singapore 588996Tel: 6 466 2957

CLEMENTIBlk 451 Clementi Ave 3 #01-307 (inside NTUC FairPrice)Singapore 120451Tel: 6 779 0438

THE CLEMENTI MALL3155 Commonwealth Ave West#B1-10/11Singapore 129588Tel: 6 659 4719

DAWSON PLACEBlk 57 Dawson Road#01-10A Singapore 142057Tel: 6 471 1300

EASTPOINT3 Simei St 6#B1-05/07Singapore 528833Tel: 6 788 2415

OUR BRANCH LOCATIONS

FORTUNE CENTRE190 Middle Road #01-26Singapore 188979Tel: 6 336 3616

GREAT WORLD CITY1 Kim Seng Promenade #B1-14/15Singapore 237994Tel: 6 235 1601

HARBOUR FRONT CENTRE1 Maritime Square#02-118/119Singapore 099253Tel: 6 271 5100

HOLLAND VILLAGE MRT STATION200 Holland AveB1-05/06/07 Singapore 278995Tel: 6 462 3580

HOUGANG MALL90 Hougang Ave 10#B1-35/36Singapore 538766Tel: 6 385 8606

HOUGANGBlk 202 #01-00Hougang St 21Singapore 530202Tel: 6 383 1308

HOUGANG 11 Hougang St 91#02-03 (inside NTUC FairPrice)Singapore 538692Tel: 6 384 0952

J CUBE2 Jurong East Central 1#B1-05Singapore 609731Tel: 6 684 4080

JURONG POINT1 Jurong West Central 2#B1-09Singapore 648886Tel: 6 793 5712

KATONG MALL112 East Coast Road #B1-08 Katong MallSingapore 428802Tel: 6 636 3160

LINK BRIDGE62 Collyer Quay#02-01 to 04 OUE LinkSingapore 049325Tel:6 509 5673

LOT 1 SHOPPER’S MALL21 Choa Chu Kang Ave 4#B1-04/05Singapore 689812Tel: 6 763 7678

MARINE PARADENo. 6 Marine Parade Central(inside NTUC FairPrice)Singapore 449411Tel: 6 345 1548

NEX23 Serangoon Central#03-37/38Singapore 556083Tel:6 509 0316

PUNGGOL PLAZABlk 168 Punggol Field#03-01/02Singapore 820168Tel: 6 343 8336

PLAZA SINGAPURA68 Orchard Road#B2-20ASingapore 238839Tel: 6 238 0230

RAFFLES CITY252 North Bridge Road #B1-44LRaffles City Shopping CentreSingapore 179103Tel: 6 337 1358

RIVERVALE MALL11 Rivervale Crescent#02-02Singapore 545082 Tel: 6 384 4514

RIVERVALE PLAZABlk 118 Rivervale Drive#01-16Singapore 540118Tel: 6 386 4183

SINGAPORE POST CENTRE10 Eunos Road 8#B2-10Singapore 408600Tel : 6 547 0095

SERANGOON CENTRALBlk 266 Serangoon Central Drive#01-253Singapore 550266Tel: 6 487 6178

SUNTEC CITY3 Temasek Boulevard#02-105Singapore 038983Tel: 6 836 5483

TAMAN JURONG Blk 399 Yung Sheng Road#01-35 Taman Jurong Shopping Centre(inside NTUC FairPrice)Singapore 610399Tel: 6 264 0921

TIONG BAHRU PLAZA302 Tiong Bahru Road#B1-11Singapore 168732Tel: 6 276 6562

TANGLIN MALL163 Tanglin Road#B1-13Singapore 247933Tel: 6 732 1380

TOA PAYOH LOR 4Blk 192 Toa Payoh Lor 4#02-674 (inside NTUC FairPrice)Singapore 310192Tel: 6 354 1775

TOA PAYOH CENTRAL500 Toa Payoh Lor 6#B1-30Singapore 310500Tel: 6 352 2933

TANJONG PAGARBlk 5 #01-01Tanjong Pagar Plaza(inside NTUC FairPrice)Singapore 081005Tel: 6 323 1281

TAMPINES CENTRAL CCBlk 866A Tampines St.83 #01-01 (inside NTUC FairPrice) Singapore 521866Tel: 6 786 6796

TAMPINES MALL4 Tampines Central 5#B1-12 (inside NTUC FairPrice)Singapore 529510Tel: 6 783 3903

TAMPINES ONE10 Tampines Central 1#B1-11/12Singapore 529536Tel:6 784 6055

THOMSON PLAZA301 Upper Thomson Road#01-102Singapore 574408Tel: 6 552 1965


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ANG MO KIO HUB53 Ang Mo Kio Ave 3 #03-14 Singapore 569933Tel: 6 483 5618Fax: 6 483 5617

BEDOKBlk 203 Bedok North St 1#01-465 Singapore 460203 Tel: 6 445 0886Fax: 6 445 3855

BISHANBlk 510 Bishan St 13 #02-04 Singapore 570510 Tel: 6 356 5603Fax: 6 356 5630

BUKIT MERAH CENTRALBlk 163 Bukit Merah Central #03-3599 Singapore 150163 Tel: 6 273 3583Fax: 6 273 2279

CLEMENTI Blk 431 Clementi Ave 3#01-304 Singapore 120431 Tel: 6 773 4533Fax: 6 773 4534

CHOA CHU KANGBlk 309 Choa Chu Kang Ave 4 #03-01 Choa Chu Kang Centre Singapore 680309 Tel: 6 763 2692Fax: 6 793 5973

GOLDEN SHOE CARPARK 50 Market Street #01-30 Singapore 048940Tel: 6 221 9295Fax: 6 226 0478

JURONG POINT1 Jurong West Central 2 #B1A-20B Singapore 648886 Tel: 6 793 5938Fax: 6 794 1171

MIDPOINT ORCHARD220 Orchard Road #02-12 Singapore 238852Tel: 6 738 0383Fax: 6 738 5786

PARKWAY PARADE80 Marine Parade Road #05-02Singapore 449269 Tel: 6 348 9188Fax: 6 344 6712

RIVERVALE MALL11 Rivervale Crescent #02-16 Singapore 545082 Tel: 6 388 2661Fax: 6 388 2659

TAMPINES JUNCTION300 Tampines Ave 5 #01-05Singapore 529653 Tel: 6 784 6291Fax: 6 794 6193

TOA PAYOH HDB HUB 500 Toa Payoh Lor 6#B1-31Singapore 310500 Tel: 6 352 8738Fax: 6 352 5351

WOODLANDS CIVIC CENTRE900 South Woodlands Drive#B1-01 (inside NTUC FairPrice)Singapore 730900Tel: 6 219 4898

WEST MALL1 Bukit Batok Central Link#01-08Singapore 658713Tel: 6 792 9730

WHITE SANDS SHOPPING CENTRE1, Pasir Ris Central St 3 #01-12/12A Singapore 518457Tel: 6581 7736

YISHUNBlk 849 Yishun Ring Road#01-3703 (inside NTUC FairPrice)Singapore 760849Tel: 6 759 1070

YEW TEE POINT21 Choa Chu Kang North 6#B1-08/09Singapore 689578Tel: 6 762 6549

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No. Name Total Shares

1 National Trades Union Congress 816,800

2 Air-Transport Executive Staff Union 10,000

3 Amalgamated Union Of Public Daily Rated Workers 1,000

4 Amalgamated Union of Public Employees 10,000

5 AUPE Multi-purpose Co-operative Ltd 10,000

6 Building Construction & Timber Industries Employees’ Union 20,000

7 Chemical Industries Employees’ Union 41,504

8 DBS Staff Union 10,000

9 Dnata Singapore Staff Union 20,000

10 ExxonMobil Singapore Employees Union 79,248

11 Food, Drinks & Allied Workers’ Union 110,840

12 Healthcare Services Employees’ Union 40,000

13 Housing & Development Board Staff Union 100,000

14 Keppel Employees’ Union 10,000

15 Keppel FELS Employees Union 30,000

16 Metal Industries Workers’ Union 76,504

17 National Transport Workers’ Union 151,504

18 Natsteel Employees’ Union 30,000

19 Ngee Ann Polytechnic Consumer Co-operative Society Ltd 10,000

20 NTUC Fairprice Co-operative Limited 1,000,000

21 NTUC First Campus Co-operative Ltd 10,000

22 NTUC Income Insurance Co-operative Limited 1,000,000

23 NTUC Media Co-operative Ltd 10,000

24 Port Officers’ Union 10,000

25 Public Utilities Board Employees’ Union 61,532

26 Shipbuilding & Marine Engineering Employees’ Union 81,504

27 Singapore Airlines Staff Union 108,192

28 Singapore Airport Terminal Services Workers’ Union 103,840

29 Singapore Bank Employees’ Union 746,800

30 Singapore Bank Officers’ Association 51,792

31 Singapore Chinese Teachers’ Union 2,000

32 Singapore Government Shorthand Writers Association 2,000

33 Singapore Industrial & Services Employees’ Union 65,088

No. Name Total Shares

34 Singapore Insurance Employees’ Union 10,376

35 Singapore Interpreters’ & Translators’ Union 5,000

36 Singapore Labour Foundation 356,000

37 Singapore Malay Teachers’ Union 10,000

38 Singapore Manual & Mercantile Workers’ Union 140,400

39 Singapore Maritime Officers’ Union 203,584

40 Singapore Mercantile Co-operative Society Ltd 10,000

41 Singapore National Union of Journalists 3,584

42 Singapore Organisation of Seamen 500,000

43 Singapore Port Workers Union 30,000

44 Singapore Press Holdings Employees’ Union 20,000

45 Singapore Shell Employees’ Union 106,144

46 Singapore Shell Employees’ Union Co-operative Ltd 10,000

47 Singapore Stevedores’ Union 10,000

48 Singapore Tamil Teachers’ Union 10,000

49 Singapore Teachers’ Union 10,000

50 Singapore Union of Broadcasting Employees 10,000

51 Singapore Urban Redevelopment Authority Workers’ Union 2,000

52 The Singapore Government Staff Credit Co-operative Society Ltd 10,000

53 The Singapore Teachers’ Co-operative Society Limited 50,000

54 Union of Power And Gas Employees 82,804

55 Union of Security Employees 107,400

56 Union of Telecoms Employees of Singapore 100,000

57 United Workers of Electronic & Electrical Industries 121,504

58 United Workers of Petroleum Industry 10,000

Institutional Share Capital 6,758,944

Ordinary Share Capital (18,771 members) 10,809,880

Total Share Capital as at 31 March 2012 17,568,824

MEMBERSHIP LISTING AND SHAREHOLDINGSAS AT 31 MARCH 2012


84

NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN THAT the 20th Annual General Meeting of NTUC Unity Healthcare Co-operative Limited will be held at NTUC Centre, One Marina Boulevard, Room 801, Level 8, Singapore 018989, on Tuesday 25th September 2012, 4.00 pm to transact the following businesses:

AGENDA

1. To confirm the Minutes of the 19th Annual General Meeting held on 22nd September 2011.

2. To consider and, if approved, to adopt the Director’s Report and the Audited Financial Statements of the Co-operative for the financial year ended 31st March 2012 together with the Auditors’ Report thereon.

3. To consider and, if approved, to declare a dividend of 3 cents per share for the financial year ended 31st March 2012.

4. Election / Appointment of Directors.

5. To re-appoint BDO LLP as the external auditors for the year ending 31st March 2013 and to authorize the Board of Directors to fix their remuneration.

6. To approve the payment of honoraria to Directors for the year ended 31st March 2012.

7. To transact such other businesses as may be properly transacted at an Annual General Meeting.

By order of the Board of DirectorsIVY TAICo-operative Secretariat31st August 2012

Registration for the meeting will commence from 3.30 pm. Members are advised to be early and to bring along their NTUC Link Card or Identity Card for verification.

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NTUC Unity Healthcare Co-operative Limited

55 Ubi Ave 1 #08-01 Singapore 408935 T 6590 4300 F 6590 4389

Annual Report 11 / 12 - Unity Pharmacy Healthcare AR12.pdf · FairPrice Co-operative Ltd, NTUC...

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Transcript of Annual Report 11 / 12 - Unity Pharmacy Healthcare AR12.pdf · FairPrice Co-operative Ltd, NTUC...