Annual Report 2006 - Parkway Pantai

CULTIVATING GROWTH 

ANNUAL REPORT 2006

ANNUAL REPORT 2006 

EXCEEDING EXPECTATIONS

The visual theme of this Annual Report is ‘Cultivating Growth’, which 

depicts the effort to nurture and nourish our business represented by the 

‘fruitful’ grove. The metaphor of the orchard connotes the cultivation of 

success and the concerted effort of our people to excel in all endeavours. 

BOUNTIFUL RETURNS 

SUSTAINED GROWTH 

STRATEGIC PRIORITIES 

Parkway is focused on People, Quality, Service, Finance and Growth. 

We want to be the employer of choice in the healthcare industry 

while delivering the finest clinical outcomes to our patients. We will 

provide the highest levels of service excellence to our customers 

while meeting and exceeding our financial plans in order to provide 

value to our shareholders. We are determined on growth and will 

do so by organic and acquisitive channels. 

SUSTAINED GROWTH 

We intend to sustain our growth momentum by exploring both 

organic initiatives and acquisitive ventures. Parkway is keen to 

expand and maintain our regional presence by increasing our 

regional investments, delivering more sophisticated services and 

procedures as well as maintaining our commitment to provide 

premier customer service. 

BOUNTIFUL RETURNS 

As Parkway’s reach grows and our presence throughout the region 

expands, our shareholders will reap the harvest with us. We believe 

in rewarding shareholders for their continued trust and faith in us 

by delivering higher value returns and superb growth prospects. 

STRATEGIC PRIORITIES 

PARKWAY HOLDINGS LIMITED

MISSION 

To make a difference in people’s lives through excellent patient care. 

VISION 

The global leader in value-based integrated healthcare. 

VALUES 

People above all... by treating those we serve and each other with 

compassion, dignity and respect. 

Excellence... by acting with integrity and striving for the highest quality 

care and service. 

Results... by exceeding the expectations of the people we serve and 

those we set for ourselves. 

CONTENTS 

Chairman’s Message/ 3 Managing Director’s Message/ 7 Global Presence/ 10 Operations Review/ 13 

Financial Highlights/ 19 Financial Review/ 20 Corporate Information/ 23 Board of Directors/ 24 

Senior Management/ 26 Financial Report/ 28 


CHAIRMAN’s MESSAGE 

Richard Seow 

Chairman 

BRINGING PEOPLE CLOSER , 

REACHING FURTHER 

Dear Shareholders, 

On behalf of the Board, I am pleased to share with you 

my thoughts on the highlights of the 2006 fiscal year 

leading to those of the current financial year. 

Beyond choice, to being global leader 

The year 2006 affirmed our position as the healthcare provider of choice for the region. Parkway’s 

facilities have seen an increase in contribution from our foreign patient pool. This reflects the changing 

trend in medical value travel as the numbers increase for higher value treatment services, while advances 

in technology reduce treatment costs and patients’ length of stay. 

We believe we made great advances to achieving our vision to be an international healthcare provider of 

choice. Over the past decades, Parkway has also contributed significantly towards Singapore’s reputation 

as a medical value destination. Our reputation in ensuring top clinical outcomes, comprehensive care 

and service excellence is supported by over 8,000 specialist physicians, experienced nurses and staff in 

our Group’s healthcare network across the region. 

By the end of 2006, Parkway’s hospitals in Singapore enjoyed an increase of 32.3% in revenue from 

foreign patients. The growth was driven by higher value treatment such as transplant, cellular therapy, 

cancer treatment, and surgery. In 2007, our Group will focus on aligning these specialties into clinical 

programmes to achieve a seamless treatment strategy based on good clinical practice. 

Fuelled by strong performance across our business divisions, revenue increased 54% over the previous 

year to $868.0 million, with net profit at $70.1 million, excluding exceptional item and exchange losses. 

Our return on equity rose to 15.8%, up from 15.2% last fiscal year, which demonstrated the early 

success of our business strategies. 

 

 

PARKWAY HOLDINGS LIMITED 


The changing trends in global healthcare markets 

are rapidly altering established patterns. The 

increase in treatment options alone suggests that 

Parkway will need a nimble structure to establish 

and entrench its leadership in medical specialty 

areas, while adhering to our strategy of proven 

approaches to ensure best clinical outcomes. This 

will be matched by renewed effort in branding 

and marketing our services worldwide. 

These achievements must reflect Parkway’s longer 

term strategic objectives and our belief in mission 

first, while looking after our people always. 

When I walk through our hospitals, I continue to 

feel the great passion, dedication and commitment 

towards making a difference in people’s lives 

through excellent patient care. This will be our 

driving force to realise our new vision in the global 

marketplace. 

Reiterating Parkway’s key commitment 

Parkway’s renewed vision is to be the global 

leader in value-based integrated healthcare, which 

follows our commitment to strive for excellent 

clinical outcomes. Building our reputation globally 

in healthcare is essential if physicians, patients and 

their loved ones are going to entrust their wellbeing 

in our care. 

This year, Parkway will continue to integrate 

our people, facilities and services. To achieve a 

seamless service that delivers quality outcomes, 

performance measures and benchmark 

performance standards are incorporated into each 

clinical programme. We will continue to engage 

our doctors with transparency and adopt models 

to adapt to the changing disease trends to ensure 

win-win partnerships. 

We are developing IT platforms to upgrade our 

medical information systems to support our plans 

for an integrated patient database. 

While such quality patient treatment through 

the use of advanced, proven, medical procedures 

remains our focus, we plan to ensure these clinical 

initiatives will lead to more balanced revenue 

generation, matched by global industry best 

practices. 

Seeding Parkway’s future growth 

We plan to set in place a clear and focused 

marketing and branding strategy which will be 

critical in the coming year, as Parkway becomes 

poised for its role in providing quality healthcare 

to a worldwide market. In 2006, we partnered 

Khazanah Nasional in Malaysia, to privatise 

Pantai Holdings as part of our regional and global 

ventures to create synergy and a mutual vision in 

delivering top-notch medical care and services. 

Through the partnership, Pantai Holdings will 

enjoy the Group’s strengths in management and 

training, and eventually, consolidated services 

sourcing and cost benefits. 

Singapore will continue to play a central role as the 

Group’s leading edge medical hub. Investment in 

facilities and technologies will continue as we offer 

our patients the best in medical equipment and 

treatment services that the region can provide. 

We intend to continue with our plans for regional 

growth, bringing Parkway’s standards of care and 

services to a larger regional patient base. 

This commitment to growth and dedication to 

replicate clinical outcomes and service quality 

across our units will serve us well, as we take on 

new challenges to cater to existing patients and 

increasingly, a global audience. 

Recognising our people 

On behalf of the Board, I wish to thank Mr Daniel 

Ashton Carroll and Mr David R. White who have 

stepped down as Non-executive Directors. I bid 

them both a fond farewell, and thank them for 

their invaluable insights and advice. I would like 

to welcome to the Board Mr Ranvir Dewan and 

Mr Steven Joseph Schneider, who have joined 

as Non-executive Directors. I am confident 

that they bring extensive expertise from their 

respective fields that will benefit Parkway in 

innumerable ways. 

We also welcome into our Senior Leadership team 

Mr Daniel James Snyder as Group Chief Operating 

Officer and the newly established role of Group 

Executive Vice President. Dan brings a wealth of 

experience and knowledge to Parkway; he has over 

28 years of experience leading healthcare systems 

globally, and his appointment will strengthen the 

Group’s senior leadership as we set our sights on 

global leadership in healthcare. 

Our doctors and nurses are central in the roles they 

play in Parkway’s reputation and success. I would 

like to pay tribute to them and recognise their 

contributions and commitment over the past year. 

We will continue in our quest to make Parkway’s 

hospitals “magnet facilities” that attract and retain 

the best doctors and nurses in the region. 

Our partners and business associates have 

continued to contribute to our success, and I 

thank them for the vital roles that they each play. 

Our reputation, achievements, and our continued 

success would not be possible without the 

passion, professionalism and commitment of our 

doctors, nurses and staff. Each day, hundreds 

of our patients rely on them to rise up to the 

challenge of delivering the best quality care to 

those entrusted to their care. Our people truly 

represent the spirit of Parkway and I am grateful 

to every single member of our Parkway family. In 

the year ahead, we are determined to develop 

better compensation packages to attract and 

retain talent, while instilling a greater sense of 

culture, and of Parkway pride. 

Lastly, I would like to thank each and every one of 

you, our shareholders, for your steadfast support, 

and unwavering confidence in Parkway. 

I look forward to your continued contribution as 

we move ahead, and take on new and bolder 

ventures. 

Richard Seow 

Chairman 


 

 



MANAGING DIRECTOR’s MESSAGE 

Dr Lim Cheok Peng 

Managing Director 

Dear Shareholders, 

DELIVERING RESULTS, 

SUSTAINING GROWTH 

Last year was a year of change and growth for 

Parkway. We have deployed strategies successfully, 

and the Company has reaped, and continues to reap, 

benefits and advantages from these plans. I am proud 

to present to you the Group’s performance and key 

milestones for the financial year ended 31 December 

2006 (“FY2006’’). 

 

Growing in financial strength 

Parkway’s total revenue rose 54% to $868.0 million in FY2006, compared to FY2005. We turned in a 

net profit of $70.1 million, excluding exceptional item and exchange losses, compared to $62.9 million 

in 2005. The Group has seen growth in all business divisions, reaping divisional revenues of $356.3 

million from Singapore Hospitals Division, $239.2 million from International Hospitals Division and 

$269.1 million from Healthcare Services Division. These results were in part driven by the strong growth 

in health care provided, as well as our integration initiatives leading to operational costs savings. 

Parkway enjoyed a return on equity of 15.8% in 2006, an improvement from 15.2% in the previous 

fiscal year. Earnings per share also rose by 4.9% to 9.01 cents compared to the previous corresponding 

period. 

In December 2006, we utilised our tax credits under Section 44A, and completed a special dividend cum 

rights issue exercise, distributing approximately $65.7 million to our shareholders. 

Building on our strong fundamentals and good performance, we have put in place plans to further 

integrate our organisation, and increase the value of services that we provide to our patients. 

 



Growing in unity 

In 2006, Gleneagles Hospital and Mount Elizabeth 

Hospital received accreditation from the Joint 

Commission International (JCI); the accreditation 

acknowledges both facilities and the teams that 

work there, as having internationally-certified 

standards in healthcare. Furthermore, with East 

Shore Hospital aiming for the accreditation in late 

2007, all Parkway’s hospitals will have unstinting 

standards that match and surpass global healthcare 

expectations. 

We have set out to further improve our processes 

and enhance patient experiences. Initiatives aimed 

at further integration of our facilities and services 

will provide patients with increased comfort, 

comprehensive care and clinical excellence. For 

example, the Parkway Liver Centre and Parkway 

Cancer Centre, set up in 2006, bring professionals 

with different medical specialties together to 

provide integrated treatment programmes for 

our patients. These Centres offer an extensive 

spectrum of treatment, including external and 

internal radiation therapy, chemotherapy and 

laboratory tests, together with a full suite of 

services to provide patients with comprehensive 

treatment and care. This holistic approach, we 

believe, results in lesser emotional and physical 

stress for patients and their families and improves 

the delivery of care and clinical outcomes. 

Together with proven technologies and techniques, 

our Centres offer patients an environment in which 

their conditions are cared for in totality by the best 

professionals and with the best equipment. We 

believe that adopting a patient-centric, integrated 

approach in our treatment methodology will result 

in positive clinical outcomes, as well as enhance the 

excellent quality of healthcare services provided to 

our patients. 

Parkway aims to continue improving our clinical 

outcomes and service experiences. To this end, we 

have streamlined our clinical services into several 

clinical programmes - Heart and Vascular, Oncology, 

Transplant and Cellular Therapy, Neuroscience, 

Women and Children, Musculoskeletal, Surgery 

and Chronic Disease Management. These clinical 

programmes, each supervised by a programme 

leader, will provide patients with more integrated 

and convenient treatment programmes. Outcomes 

of these clinical programmes will be monitored 

and will propel us further in our constant bid to 

enhance clinical excellence. Patients on these 

clinical programmes will receive treatment that is 

evidence-based and be treated by specialists who 

meet set the clinical performance standards. 

Our initiatives are in line with Parkway’s vision to 

be the global leader in value-based integrated 

healthcare. Our people will work on common 

platforms and with the integration of systems, 

technology and facilities, patients can look 

forward to receiving an even higher level of care 

and clinical excellence from Parkway. 

Growing our team 

At Parkway, we believe that everyone matters. 

As an organisation, we believe that we have a 

responsibility to make a positive difference not only 

to our patients’ lives, but towards our associates 

and partners too. We continue to seek talents and 

provide a nurturing, motivating and professional 

environment in which everyone can do their best. 

Parkway continues to be an employer of choice 

for many. 

In 2006, Parkway sponsored the first batch of 

student nurses at the Pantai Institute of Health 

Sciences & Nursing in Kuala Lumpur, Malaysia. 

In addition, 23 nurses who graduated from the 

Gleneagles Intan College of Nursing in August 

2006 have started work as Registered Nurses at 

Parkway’s hospitals. I am glad that Parkway has 

played a role in educating and grooming these 

vibrant minds for their chosen careers. 

I am also pleased that our people are recognised 

as the best in their fields. Two of our nursing staff, 

Ms Lisa Chong Ah Yoke and Ms Rahmah bte Mohd 

Shariff, received the Healthcare Humanity Award, 

recognising their dedication to their work. 

At the 2006 Excellent Service Awards (EXSA), 

Parkway won 282 awards. The award recognises 

outstanding service, seeks to develop service 

models for staff to emulate and creates service 

champions to inspire dedicated and professional 

services. 

Growing our technological capabilities 

To further our leadership in delivering clinical 

excellence with high-end, specialised treatments, 

we have invested and continue to invest in proven 

medical technologies from around the globe. 

In 2006, Parkway became the first hospital in 

South Asia to launch the TomoTherapy Hi-Art 

system, which delivers more effective and precise 

cancer treatment, while reducing side effects 

commonly associated with traditional methods of 

treatments. 

We are also the first private healthcare operator 

in Singapore to provide an enhanced ultrasound 

device for safer cataract surgery. Our off-site 

Central Sterilisation Supply Department, the first 

of its kind in Southeast Asia, is equipped with 

state-of-the-art technology to ensure the highest 

level of clinical and hygiene standards for our 

doctors and patients. 

Besides medical technology, we are also further 

integrating our management systems across our 

divisions. An integrated platform will strengthen 

our administrative efficiency and patient service 

quality. Patients can look forward to increased 

convenience and improved service experiences as 

we continue to streamline our facilities, services 

and treatment procedures. 

Growing beyond Singapore 

Since our inception, Parkway has established a firm 

base of operations in Singapore. Our facilities here 

are recognised for bearing the highest standard 

of clinical care and service excellence, and we 

are known as the provider of high-end, specialist 

healthcare. 

With this strong heritage, we intend to continue 

establishing our presence overseas. Work has 

already begun on furthering our growth offshore. 

In Shanghai, we have opened a 32,000 squarefoot 

ambulatory surgical centre. The Shanghai 

Gleneagles International Medical and Surgical 

Centre specialises in healthcare services such as 

health screenings, aesthetics, dental work, and 

obstetrics and gynaecology. Our Apollo Gleneagles 

Hospital in India is doing well, with a 28.3% 

increase in revenue over the last year. Our Brunei 

facility, the Gleneagles JPMC Cardiac Centre, has 

seen a 24.2% year-on-year increase in revenue as 

well. Our entry into Pantai Holdings, one of the 

largest healthcare groups in Malaysia, has allowed 

us opportunities to re-engineer processes and 

achieve operational efficiency, and I hope to see 

good results arising from our efforts. 

The current momentum in growth of our offshore 

interests, together with our local flagships and 

facilities, will see Parkway growing into a global 

healthcare player, delivering value-based services 

to an increasing number of patients worldwide. 

Parkway is also reaching out to the region beyond 

the scope of business, by offering our medical 

expertise in times of disaster. In June 2006, we sent 

a team of doctors, nurses and paramedical staff 

to Yogyakarta, Indonesia, to provide humanitarian 

aid to earthquake victims. I am proud that Parkway 

continues to be an organisation that cares, not 

just for patients who come through our doors, but 

also for communities who require our help. 

A note of appreciation 

I would like to thank the staff, nurses and doctors 

at Parkway, who renew their commitment and 

dedication every single day, in order to provide 

the highest level of care and treatment to our 

patients. 

To my colleagues and business associates, I deeply 

appreciate the support shown as we continue our 

drive to serve our patients better. 

As Parkway ventures into 2007, with renewed 

confidence and strength, I look forward to sharing 

with you our continued growth and progress. 




 



GLOBAL PRESENCE 

Canada 

Russia 

USA 

China 

Egypt 

United 

Arab 

Emirates 

Pakistan 

India 

Bangladesh 

Myanmar 

Thailand 

Vietnam 

Cambodia 

Philippines 

Nigeria 

Sri Lanka 

Malaysia 

Brunei 

SINGAPORE 

Indonesia 

Hospitals & Medical Centres 

IPAC (International Patient 

Assistance Centre) 

10 

HOSPITALS AND MEDICAL CENTRES 

Singapore 

Mount Elizabeth Hospital 

No. of beds: 505 

Gleneagles Hospital 


East Shore Hospital 


Brunei 

Gleneagles JPMC Cardiac Centre, 

Brunei 


China 

Shanghai Gleneagles International 

Medical and Surgical Centre 

India 

Apollo Gleneagles Hospital, 

Kolkata 


Malaysia 

Gleneagles Intan Medical Centre, 

Kuala Lumpur 


Gleneagles Medical Centre, Penang 


Pantai Medical Centre, Kuala Lumpur 


Pantai Cheras Medical Centre, 

Kuala Lumpur 


Pantai Klang Specialist Medical Centre, 

Klang 


Hospital Pantai Putri, Ipoh 


Hospital Pantai Mutiara, Penang 


Hospital Pantai Ayer Keroh, Melaka 


Hospital Pantai Indah, Kuala Lumpur 


Hospital Pantai Batu Pahat, Johor 


HEALTHCARE SERVICES DIVISION 

Primary Healthcare 

GP Services 

No. of clinics: 42 

Dental Services 


Diagnostic Services 

Radiology Services 

Medi-Rad Associates 


Laboratory Services 

Parkway Laboratory Services 

No. of laboratories: 4 

Clinical Research 

Gleneagles CRC HQ 

Consultancy Services 

Hospital Development 

Hospital Management 

IPAC (INTERNATIONAL PATIENT 

ASSISTANCE CENTRE) 

Singapore: 1 

Bangladesh: 3 

Chittagong 

Dhaka 

Sylhet 

Brunei Darussalam: 2 

Cambodia:1 

Phnom Penh 

Canada: 1 

Vancouver 

China: 1 

Shanghai 

Egypt:1 

Cairo 

India: 4 

Chennai 

Mumbai 

New Delhi 

Punjab 

Indonesia: 17 

Balikpapan 

Bandung 

Batam 

Jakarta: 2 

Makassar 

Manado 

Malang 

Medan 

Padang 

Palembang 

Pekan Baru 

Pontianak 

Semarang 

Solo 

Surabaya 

Yogyakarta 

Malaysia: 4 

Johor Bahru 

Kota Kinabalu 

Kuala Lumpur 

Kuching 

Myanmar: 1 

Yangon 

Nigeria: 1 

Lagos 

Pakistan: 3 

Islamabad 

Karachi 

Lahore 

Philippines: 1 

Manila 

Russia: 1 

Vladivostok 

Sri Lanka: 1 

Colombo 

Thailand: 1 

Bangkok 

United Arab Emirates: 1 

Abu Dhabi 

USA: 1 

New Mexico 

Vietnam: 3 

Hanoi 

Ho Chi Minh 

Da Nang 

11 



OPERATIONS REVIEW 

Review of operations in 2006 

CULTIVATING STRENGTHS, 

CREATING SUCCESS 

The TomoTherapy Hi-Art System delivers highly accurate radiation 

doses with precision. 

12 

Integrating our services 

At Parkway we believe in providing our patients with integrated, holistic treatment experiences. Apart 

from offering a pleasant and soothing environment, we also ensure our patients are attended to by 

caring and understanding staff. In 2006, we began streamlining our facilities and services, including 

Parkway’s support services to bring patients greater convenience and improved service experiences. 

With integration, doctors will also engage in deeper sharing of knowledge and experiences; patients will 

benefit from the synergy achieved and have more treatment options available. Our effort to integrate 

our services resulted in the establishment of comprehensive care centres such as the Mount Elizabeth 

Diabetes Care Centre, Parkway Cancer Centre and Parkway Liver Centre. 

The Parkway Cancer Centre aims to provide patients with quality cancer care by bringing together 

specialist physicians, nurses, other medical professionals and pastoral care counsellors. The highly 

skilled, multidisciplinary team deploys the latest proven technology in cancer diagnostics and treatment, 

affording patients easy access to personalised services for their conditions, including laboratory services, 

under one roof. 

We have also established the Mount Elizabeth Diabetes Care Centre, a one-stop centre for the management 

of diabetes and diabetes related diseases, at a cost of $800,000. The Centre offers treatment from prediabetes 

stage to fully-developed diabetes, including diabetes-related complications. The Diabetes Care 

Centre provides a holistic approach to the management of diabetes. Specialist teams comprising the 

presiding doctor, diabetes nurse, dietician, podiatrist, psychologist, exercise trainer are among those 

providing quality integrated care for patients. 

The Parkway Liver Centre, located at Gleneagles Hospital, was set up in November 2006 at the cost of 

$3.0 million. The Liver Centre features a dedicated intensive care unit and is the first fully integrated 

facility for liver transplant and treatment in Asia. Patients at the Liver Centre receive comprehensive 

tertiary care, supported by a dedicated team of professionals, with extensive experience in critical care, 

liver transplantation and liver disease. 

13 



In surgery, the sterilisation of equipment is vital to ensure the finest 

clinical outcomes. 

Highly skilled, multidisciplinary teams deploy the latest proven 

technology. 

Parkway Laboratory Services located at Ayer Rajah in Singapore 

provides a full spectrum of laboratory support to the Group’s 

hospitals and other clients. 

In addition to providing high-end medical services, the staff at 

Shanghai Gleneagles International Medical and Surgical Centre are 

also dedicated to service excellence with a local touch. 

14 

In December 2006, the Central Sterilisation 

Supply Department (“CSSD”) became the first in 

Southeast Asia to be located off the hospital site. 

In surgery, the sterilisation of equipment is a very 

vital element in ensuring finest clinical outcomes 

through effective infection control. The 12,000 

square-foot off-site facility with automated 

systems, designed for efficiency and productivity, 

is fully compliant with international standards. 

A unique feature is the system’s ability to 

accurately track all instruments sent to the facility 

for sterilisation through real time documented 

processes. Through automation, the CSSD aims 

to improve operational efficiency, lower costs 

over time and more importantly, provide and 

maintain the highest standards of sterilisation for 

instruments used in clinical procedures. In addition, 

the CSSD is an advanced training academy for 

infection control in Southeast Asia. This facility will 

help Parkway reinforce and educate staff on the 

correct practices for disinfection and sterilisation, 

instrument logistics management, and quality 

control. The CSSD is an important part of the 

ongoing plan to develop expertise in healthcare 

support services while streamlining our support 

operations. 

To achieve the finest clinical outcomes for our 

patients, we are creating structured clinical 

programmes, where patients and their conditions 

will be cared for in a seamless manner. Facilities, 

processes and services will be integrated; there 

will be performance measures and benchmarks, 

including professional reviews, put in place, to 

deliver excellent clinical results for our patients. 

Some of these clinical programmes include Heart 

and Vascular, Oncology, Transplant and Cellular 

Therapy, Neuroscience, Women and Children, 

Musculoskeletal, Surgery and Chronic Disease 

Management. 

Deploying advanced technology 

Our commitment to constantly improve clinical 

expertise is demonstrated by deploying proven 

advanced technologies that provide patients 

with more effective treatment pathways that are 

reliable and life-saving. 

To provide patients with precise and safe radiation 

treatment for cancer, Parkway invested $7.0 

million in the TomoTherapy Hi-Art System which is 

located at the Oncology Centre in Mount Elizabeth 

Hospital. Being the first in South Asia to deploy 

this most advanced integrated cancer treatment 

system in the world, Parkway’s doctors now have 

a system that delivers highly accurate radiation 

doses with precision, and advanced diagnostic 

imaging that captures moment-by-moment 

images of targeted tumor immediately before 

and after treatment. The benefits to our cancer 

patients include faster, more effective treatment 

with fewer side effects. 

Parkway is the only healthcare provider in Singapore 

to offer an improved ultrasound device for safer 

cataract surgery. Patients who have experienced 

treatment using our new device reported minimal 

post-surgery discomfort. The ultrasound probe 

device located at Gleneagles Hospital, produces 

less heat than older probes and thus, risk of 

injury to the cornea or other parts of the eye is 

reduced. 

We have also begun plans to revamp our 

information technology (“IT”) system. In 2007, we 

have several project plans in place to propel the 

Group forward. The $6.0 million agreement with 

Tata Consultancy Services (TCS), one of the world’s 

largest IT services provider, will see an integration 

and overhaul of IT platforms across the Group. 

With the system upgrade, patients in Parkway will 

experience a seamless level of care, regardless of 

which facility they are in. The new platform will be 

more versatile and enable enhancements as well 

as improve healthcare medical information system 

upgrades over time. 

With improved integration across our IT platforms, 

we will bring our patients increased convenience, 

efficiency and service quality. In addition, our 

staff will also benefit from the enhanced system, 

including having the ability to perform their duties 

more efficiently and having access to better skills 

development programmes. 

Growing the business 

With a firm base of operations established here 

in Singapore, Parkway is setting its sights further, 

and has begun plans to provide value-based 

healthcare to a wider audience. We regard this as 

a great privilege and responsibility to care for our 

patients whose well being we have been entrusted 

with. The Parkway commitment to standards 

will continue to be maintained as we expand 

our operations. Our growth initiatives include 

enhancing our clinical programmes to leverage 

on local and overseas patients through new 

strategic marketing partnerships. Our investment 

in innovative, proven technology, remains an 

integral part of our strategy for growth. 

In addition, the Group will also establish new 

facilities and upgrade existing facilities to 

complement our clinical programmes. A good 

example is the planned Parkway Children’s Centre 

to be set up at East Shore Hospital in the second 

quarter of 2007. Together with the Parkway Cancer 

Centre, the Parkway Children’s Centre will further 

enhance the Oncology clinical programme. 

We also continue to seek new ventures and 

partnerships across the region and the world. The 

Shanghai Gleneagles International Medical and 

Surgical Centre has been established at the cost 

of $10 million and is expected to be operational 

in the first half of 2007. A joint venture with 

Shanghai Huashan Hospital, one of Shanghai’s 

premier hospitals, the Centre will provide high-end 

medical care to the local and foreign community 

in Shanghai. 

In April 2006, our primary healthcare arm, Parkway 

Shenton, began operations of an aesthetics clinic 

in Ho Chi Minh, Vietnam. This venture aims to 

cater to the growing aesthetics needs of the local 

and expatriate community. 

15 



The number of Parkway’s international patient 

assistance centres grew to over 45 worldwide with 

two more set up in Cairo, Egypt and Lagos, Nigeria. 

More such centres are planned for emerging and 

growth markets such as India, Russia and Saudi 

Arabia. 

Parkway won 282 awards. The award recognises outstanding service, 

seeks to develop service models for staff to emulate and creates 

service champions to inspire dedicated and professional services. 

Also in August 2006, Parkway established a 

joint venture known as Pantai Irama Ventures 

Sdn Bhd with Khazanah Nasional Berhad - the 

investment arm of the Malaysian government. 

Parkway plans to provide hospital operating and 

management expertise to Pantai Holdings while 

pursuing growth opportunities in the hospital and 

healthcare services business in Malaysia through 

Pantai Irama Ventures Sdn Bhd. 

Extending care to the community, both locally and around the region. 

A team of doctors, nurses and ground support staff were despatched to 

render medical aid in Yogyakarta after a powerful earthquake struck. 

Recognition 

Joint Commission International (JCI) 

Accreditation 

Two of our premier hospitals, Gleneagles Hospital 

and Mount Elizabeth Hospital were both awarded 

with Joint Commission International accreditation 

in May and June 2006 respectively. The Joint 

Commission International, based in United States, is 

an independent accreditation body for international 

healthcare and quality improvement with standards 

based on international consensus. Having the 

accreditation demonstrates Parkway’s commitment 

to delivering quality, safe and efficient patient care. 

Singapore Excellent Service Award (EXSA) 

In recognition of Parkway’s belief in service 

excellence and continuous training, 282 staff from 

East Shore Hospital, Gleneagles Hospital and Mount 

Elizabeth Hospital received the EXSA. 

Humanitarian Awards 

Two of Parkway’s staff, Ms Lisa Chong Ah Yoke 

and Ms Rahmah bte Mohd Shariff, received the 

prestigious Healthcare Humanity Award from 

Health Minister Mr Khaw Boon Wan, in June 2006. 

The awards are in recognition of their courage, 

compassion and dedication as healthcare workers. 

Ms Chong and Ms Rahmah are active volunteers 

and have participated in various humanitarian relief 

missions around the region. 

While nurturing our offshore growth strategy, 

homegrown interests will continue to feature 

importantly. To meet specific treatment capacity 

needs, Mount Elizabeth Hospital was renovated to 

include a new intensive care unit with 10 beds to 

cater to growing bone marrow transplant patient 

numbers. In addition, at Gleneagles Hospital, 

a new ward with 18 beds for liver patients was 

opened in November 2006. The Parkway Liver 

Centre and the Asian Centre for Liver Disease and 

Transplantation (“ACLDT”) successfully performed 

85 liver transplant cases to date and has leading 

reputation for living donor liver transplants. Our 

expertise in stem cell therapy continues to grow 

with 85 stem cell transplant cases performed to 

date. These initiatives and successes demonstrate 

our commitment to use proven approaches 

to achieve the best clinical outcomes for our 

patients. 

Caring for the region 

Parkway believes strongly in caring for the 

community, both locally and around the region. 

Our success today propels us further in our 

humanitarian and social responsibility efforts. 

Over the past 11 years, the Group’s hospitals 

hold their annual Christmas Light-up and Charity 

drive to collect funds for various local charity 

beneficiaries. 

In May 2006, when a powerful earthquake struck 

Yogyakarta in Indonesia causing widespread 

damage to the city infrastructure, medical support 

was severely disrupted. Parkway immediately 

responded by assembling a team of doctors, nurses 

and ground support staff who were dispatched 

to render emergency medical care there. The 17 

strong team, comprising seven doctors, seven 

nurses and three support staff, spent six days 

performing surgery in hospitals and treating 

victims at various disaster sites. 

Parkway’s commitment to support humanitarian 

efforts in the region continued after the 2004 

December tsunami catastrophe when we partnered 

with Mercy Relief missions to provide medical aid 

to the affected areas in 2005. The Group also 

provided medical relief and humanitarian aid to 

the earthquake victims in Pakistan in 2005. 

Poised for the future 

Strategies are now in place to take Parkway to 

the next level as the global leader in value-based 

integrated healthcare. From Parkway’s global 

medical hub based in Singapore, the Group aims 

to continue its reach to new markets, through 

medical value travel, regional expansion and 

new acquisitions. Parkway remains committed 

to spread the same standard of clinical care and 

service excellence to the global community. 

Moving forward, Parkway has plans to establish 

several new facilities to add to our repertoire 

of capabilities that include a day surgery and 

specialist centre in the heart of Singapore and 

a new radiology clinic. These new facilities will 

enhance our treatment expertise and provide 

integrated support for our clinical programmes. 

The Group continues to see strong demand in 

the existing facilities and expects good growth 

potential from overseas investments such as 

Shanghai’s medical centre. These new ventures 

take time to be established and start-up expenses 

are expected to be incurred in the short term as 

Parkway pursues opportunities for future growth. 

To meet the challenges of the rising tide of global 

competition in healthcare, Parkway will continue 

to develop greater synergies within the Group, 

create and enhance shareholder value, and 

measure performance through benchmarks across 

our operations. 

16 

17 



Financial Highlights 

Review of financials in 2006 

Group Consolidated Statements 

Profit and Loss Account 

Revenue 

Healthcare 864,508 560,876 416,232 350,620 328,744 

Others 3,496 2,740 2,797 4,343 12,804 

2006 

$’000 

2005 # 

$’000 

2004 # 

$’000 

2003 # 

$’000 

2002 # 

$’000 

868,004 563,616 419,029 354,963 341,548 

Earnings before interest expense, tax, depreciation and amortisation 

(EBITDA) ~ 189,641 141,939 112,750 86,860 89,556 

% of revenue 21.8% 25.2% 26.9% 24.5% 26.2% 

Earnings before interest expense, tax and exceptional items (EBIT) ~ 129,377 101,330 77,641 55,137 58,892 

% of revenue 14.9% 18.0% 18.5% 15.5% 17.2% 

Earnings after tax and minority interests but before exceptional items 66,955 63,344 51,945 34,988 33,301 

% of revenue 7.7% 11.2% 12.4% 9.9% 9.8% 

Profit attributable to equity holders of the Company 55,283 61,969 50,463 33,608 33,301 

% of revenue 6.4% 11.0% 12.0% 9.5% 9.8% 

REAPING REWARDS, 

STRIVING BEYOND 

Balance Sheet 

Total Assets 1,231,403 1,344,042 975,889 852,912 867,464 

Net Borrowings 354,570 367,497 222,780 260,780 262,215 

Total Shareholders’ Funds 423,928 415,517 425,027 430,500 427,970 

Profitability Ratios (%): 

Return on Shareholders’ Funds 

Before exceptional items 15.8 15.2 12.2 8.1 7.8 

After exceptional items 13.0 14.9 11.9 7.8 7.8 

Return on Assets 



Gearing Ratio: 

Net debt equity ratio 0.84 0.88 0.52 0.61 0.61 

Per Share Data: 

Earnings per share ($) 



Gross dividend ($) + 0.2225* 0.105 0.09 0.06 0.05 

Net tangible asset backing per share ($) 0.35 0.32 0.54 0.55 0.55 

Net asset value backing per share ($) 0.55 0.57 0.59 0.60 0.59 

~ Earnings before exceptional items, exchange differences and share of results of associates. 

# Certain comparative figures from FY2002 to FY2005 have been restated and reclassified for comparative purposes due to adoption of 

new and revised accounting standards as well as change in accounting treatment for joint ventures. 

+ Gross dividend comprises interim dividend declared during the year and final dividend proposed by directors in respect of that financial 

year under review. 

* Includes special dividend of 11.25 cents per share less tax paid in respect of year 2006. 

18 

19 



FINANCIAL REVIEW 

Review of financials in 2006 

in $’m 

Highlights 

• Group Revenue soared 54% to $868.0 million 

• EBITDA grew 34% to $189.6 million 

• Rewarded shareholders with special cash dividend 

and rights issue exercise 

Revenue by Business Segment 

350.0 

300.0 

250.0 

200.0 

150.0 

100.0 

50.0 

0 

356.3 

300.3 

Singapore 

Hospitals 

239.2 

116.1 

International 

Hospitals 

2006 2005 

269.1 

144.5 

Healthcare 

Services 

3.5 

2.7 

Others 

Growing consistently 

Consolidated total revenue of the Group for 

FY2006 soared 54% to $868.0 million, compared 

with $563.6 million in the previous fiscal year. 

Similarly, the Group’s EBITDA climbed 34% to 

$189.6 million, from $141.9 million in FY2005. 

Pantai Holdings Berhad (“Pantai”), acquired in 

end 3Q 2005, accounted for approximately 35% 

in revenues and 29% in EBITDA of the Group for 

FY2006, contributing positively to the healthy 

growth to the Group’s International Hospitals and 

Healthcare Services Divisions. Net profit excluding 

exceptional item and exchange losses was $70.1 

million, an increase of 11% from $62.9 million in the 

previous fiscal year. The Group achieved this strong 

operational performance despite expenditure 

incurred from investing in future growth in the 

region as a result of improved performances across 

all core healthcare operations with continuing 

focus on delivering more sophisticated and higher 

value-added services. 

Including exceptional item and exchange losses, 

the Group’s net profit was $55.3 million, an 11% 

reduction from FY2005. This was mainly due to 

the exceptional item of the impairment loss of 

$11.7 million on available-for-sale financial assets 

relating to the Group’s investment in Auric Pacific 

Group Limited. 

The Group’s Singapore Hospitals Division, 

comprising of Mount Elizabeth Hospital, 

Gleneagles Hospital and East Shore Hospital, 

delivered $356.3 million in revenue for FY2006, 

a 19% increase compared with $300.3 million in 

FY2005. The Division’s EBITDA also grew 17% in 

the same period to reach $103.7 million, compared 

with $88.3 million in the previous financial year. 

The growth was largely driven by the continuing 

focus on the development of clinical programmes 

which resulted in an increase in higher revenue 

intensity cases and higher utilisation of outpatient 

services such as diagnostic services and cancer 

treatments. 

The Group experienced tremendous growth from 

our International Hospitals Division as well. The 

Division includes our facilities in Malaysia, Brunei 

and India. Revenue climbed 106% from $116.1 

million in FY2005 to $239.2 million in FY2006. 

EBITDA grew at a similar pace rising 69% to reach 

$35.6 million in FY2006. All international hospitals 

performed well in FY2006, delivering an increase 

in revenue and admissions. With the restructuring 

of our interests in Malaysia completed, Parkway 

had ceased to consolidate Pantai as a subsidiary 

and commencing 4Q 2006 had proportionately 

consolidated Pantai’s contributions instead. We 

will integrate Pantai’s hospitals within existing 

operations and realign teams for increased synergy. 

The partnership with Khazanah serves as a strong 

platform to capitalise on the growing healthcare 

opportunities in Malaysia. 

Revenue from our Healthcare Services Division rose 

86% from $144.5 million in FY2005 to $269.1 

million in FY2006. EBITDA increased by 54%, 

from $31.0 million in FY2005 to $47.7 million in 

FY2006. Despite increased business development 

activities and expenditure incurred in new start-up 

clinics and facilities in Singapore and the region 

such as Shanghai and Vietnam, the division 

continued to show healthy growth in revenues 

and EBITDA largely fuelled by contributions from 

Pantai’s healthcare services in Malaysia, and the 

growth in the Singapore radiology and laboratory 

businesses. To provide patients with increased 

convenience, the Parkway Shenton group opened 

new clinics and remained focused on corporate 

clients. Medi-Rad Associates continued adding 

and upgrading its spectrum of diagnostic imaging 

equipment. Parkway Laboratory Services delivered 

top-notch laboratory services and will continue to 

upgrade its facilities and expertise. 

Hospitals Statistics 

Number of Hospitals 

(at end of period) 

Singapore Hospitals 

2005 2006 2006 vs 2005 

3 3 0.0% 

Inpatient Admissions 49,980 48,193 -3.6% 

Number of Day Cases * 13,444 13,866 3.1% 

Average Length of Stay (days) 3.56 3.57 0.2% 

* Day Ward Admissions only 

Number of Hospitals 

(at end of period) 

in $’m 

EBITDA by Business Segment 

110.0 

100.0 

90.0 

80.0 

70.0 

60.0 

50.0 

40.0 

30.0 

20.0 

10.0 

0 

103.7 

88.3 

Singapore 

Hospitals 

35.6 

21.1 

International 

Hospitals 

International Hospitals 

2005 2006 2006 vs 2005 

11 11 0.0% 

Inpatient Admissions + 16,649 17,862 7.3% 

Average Length of Stay (days) + 3.37 3.49 3.6% 

Patient Days + 56,176 62,344 11.0% 

+ 

Statistics on inpatient volume, average length of stay and patient days 

are those of Brunei and Penang hospitals only. 


47.7 

31.0 

Healthcare 

Services 

2.7 1.5 

Others 

20 

21 



CORPORATE INFORMATION 

Parkway’s earnings per share (EPS) 1 increased 

by 4.9% to $0.0901 compared to the previous 

financial year. The Group’s return on equity (ROE) 1 

was 15.8%, an improvement from 15.2% in 

FY2005. Net debt (inclusive of related hedging 

financial derivatives) was $361.2m and net debt 

equity ratio was 0.85 as at 31 December 2006. 

Strong cashflows from healthcare operations 

have helped the Group retain an efficient capital 

structure. 

Reaping rewards 

The Group believes in sharing our growth with 

our stakeholders. With robust performance across 

all business segments, the Directors paid out 

aggregate interim quarterly dividends of $0.055 

per share less tax paid. 

In 3Q 2006, the Group further announced a special 

cash dividend and rights issue exercise which 

was completed during the year. The exercise was 

held to reward our shareholders with a special 

cash dividend as well as provide shareholders 

with an option to re-invest their special dividend 

by subscribing for the rights shares. The special 

dividend also allowed us to pass on our tax credits 

available under Section 44A of the Income Tax Act 

(Cap. 134) to our shareholders. 

Shareholders were rewarded with a special cash 

dividend of $0.1125 per share less tax, as well as a 

rights issue of new ordinary shares at $1.80 each, 

for every 20 shares held. The aggregate amount 

of this special dividend is approximately $65.7 

million, net of tax. 

This rights issue strengthened the capital base of 

Parkway, and together with the special dividend, 

converted a portion of our accumulated profits 

into permanent share capital. 

With a strong finish for FY2006, the Directors 

recommended a final dividend of $0.055 per share 

less tax, generating a total of $0.11 of ordinary 

dividend per share less tax for FY2006. 

Earnings Per Share 1 

cents 

12.00 

9.00 

7.07 

6.00 

3.00 

2004 

Return On Equity 1 

20.0% 

16.0% 

12.2% 

12.0% 

8.0% 

4.0% 

0.0% 

2004 

8.59 

2005 

15.2% 

2005 

9.01 


15.8% 


BOARD OF DIRECTORS 

Richard Seow Yung Liang 

Chairman 

Sunil Chandiramani 

Vice Chairman 



Alain Ahkong Chuen Fah 

Non-executive Director 

Chang See Hiang 


Timothy David Dattels 


Ranvir Dewan 


(Appointed on 8 March 2007) 

Ho Kian Guan 


Dr Ronald Ling Jih Wen 


Steven Joseph Schneider 



Ashish Jaiprakash Shastry 


David R White 


(Resigned on 8 March 2007) 

Ho Kian Hock 

(Alternate Director to 

Ho Kian Guan) 

AUDIT COMMITTEE 


Chairman 


Ho Kian Guan 


MANAGEMENT COMMITTEE 


Chairman 



NOMINATING COMMITTEE 


Chairman 





REMUNERATION COMMITTEE 


Chairman 




SHARE OPTION SCHEME 

COMMITTEE * 


Chairman 




SHARE PURCHASE COMMITTEE 


Chairman 



STRATEGIC PLANNING 

COMMITTEE 


Chairman 




David R White 


REGISTERED OFFICE 

1 Grange Road #11-01 

Orchard Building 

Singapore 239693 

Tel: (65) 6796 0600 

www.parkwayholdings.com 

COMPANY SECRETARIES 

June Tay Kwok Fung 

Ho Li Li 

SHARE REGISTRAR 

M & C Services Private Limited 

138 Robinson Road #17-00 

The Corporate Office 


Tel: (65) 6227 6660 

AUDITORS 

KPMG 

Certified Public Accountants 

Singapore 

16 Raffles Quay #22-00 

Hong Leong Building 


Partner-In-Charge 

– Tay Puay Cheng 

PRINCIPAL BANKERS 

Citibank N.A., Singapore Branch 

1 

ROE and EPS are computed based on net profit attributable to 

shareholders before exceptional item. 

EXECUTIVE COMMITTEE 


Chairman 

Ho Kian Guan 


Oversea-Chinese Banking 

Corporation Limited 

Standard Chartered Bank 




22 

* Dissolved on 9 November 2006 

23 



BOARD OF DIRECTORS 

Mr Richard Seow Yung Liang 

Chairman 

Mr Alain Ahkong Chuen Fah 


Mr Ranvir Dewan 


Mr Steven Joseph Schneider 


Mr Richard Seow Yung Liang Mr Sunil Chandiramani Dr Lim Cheok Peng 

Mr Alain Ahkong Chuen Fah Mr Chang See Hiang Mr Timothy David Dattels 

Mr Ranvir Dewan 


Mr Steven Joseph Schneider 


24 

Mr Ho Kian Guan 

Mr Ashish Jaiprakash Shastry 


Mr David R. White 


Mr Richard Seow has been 

the Chairman of the Board 

of Parkway Holdings and the 

Executive Committee since July 

2005. A former investment 

banker with over 16 years of 

industry experience, he was 

previously with Citigroup, 

Goldman Sachs and JP Morgan. 

Mr Seow is also a director of 

Twinwood Engineering Limited 

and Lee Hing Development 

Limited. Mr Seow is a member 

of the Singapore Sports Council 

and a Governor of the Anglo 

Chinese School. 

Mr Sunil Chandiramani 

Vice Chairman 

Mr Sunil Chandiramani is 

a Director and Partner of 

Symphony Group of companies 

which invest in Healthcare and 

other consumer businesses 

throughout the Asia Pacific 

region. Mr Chandiramani is 

a member of the Executive 

Committee and various other 

committees and sits on the 

boards of several companies. 



Dr Lim Cheok Peng is the 

Managing Director of Parkway 

Holdings and he sits on the 

Executive Committee. Dr Lim 

has been steering the Group’s 

healthcare efforts since 1987 

and recently, has also been 

designated as the Group 

President and Chief Executive 

Officer. He is a cardiologist by 

profession. 

Mr Alain Ahkong is the 

Chairman of the Audit 

Committee of Parkway 

Holdings. Currently a Director of 

Pioneer Management Services 

Pte Ltd, Mr Ahkong also 

holds directorships in several 

companies, including listed 

company, Twinwood Engineering 

Limited. 

Mr Chang See Hiang 


Mr Chang See Hiang sits on 

various committees of Parkway 

Holdings. An Advocate and 

Solicitor of the Supreme Court 

of Singapore, he is the Senior 

Partner of his own law firm, 

M/s Chang See Hiang and 

Partners. Mr Chang is a Director 

of Jardine Cycle & Carriage 

Limited, MCL Land Limited,Yeo 

Hiap Seng Limited, Singapore 

Technologies Aerospace Ltd, 

STT Communications Ltd and 

Honorary Secretary and member, 

Management Committee of the 

Singapore Turf Club. 

Mr Timothy David Dattels 


Mr Timothy Dattels is 

a Managing Director of TPG 

Capital, L.P. Prior to joining TPG 

in 2002, Mr Dattels was 

a Managing Director of 

Goldman Sachs and led the 

firm’s investment banking 

business in Asia. Mr Dattels 

is a Director of Shenzhen 

Development Bank, SingTao 

News Corp. Limited, Shangri-La 

Asia Ltd and Primedia Inc. 

Mr Ranvir Dewan is a Fellow 

of the Institute of Chartered 

Accountants in England 

& Wales and a member of the 

Canadian Institute of Chartered 

Accountants. Mr Dewan joined 

TPG Capital (Singapore) Pte Ltd 

in July 2006 as Senior Advisor 

and is based in Singapore. From 

April 2000 to July 2006 

he was Executive Vice President 

and Chief Financial Officer of 

Standard Chartered First Bank 

(formerly Korea First Bank) in 

Seoul, Korea. Prior to that, 

Mr Dewan spent 13 years with 

Citibank and held various senior 

positions in its international 

businesses. Mr Dewan has also 

held senior positions with KPMG 

in Canada and England where 

he specialized in the audits of 

financial institutions. Mr Dewan 

serves on the board of Shriram 

Transport Finance Co. Ltd. 

Mr Ho Kian Guan 


Mr Ho Kian Guan has been 

a director of Parkway Holdings 

since 1985. Mr Ho is also the 

Chairman of publicly-listed Keck 

Seng (Malaysia) Berhad whose 

principal activities include palm 

oil cultivation, the processing 

and refining of palm oil and real 

estate development. 



Dr Ronald Ling trained as a 

medical doctor and subsequently 

worked as a management 

consultant with McKinsey & Co. 

in London, and as General 

Manager with Parkway Group 

Healthcare. Dr Ling is a Principal 

with the Symphony Group 

of companies which invest in 

Healthcare and other consumer 

businesses throughout the Asia 

Pacific region. He also sits on the 

Boards of Twinwood Engineering 

Limited in Singapore and Strides 

Arcolabs Limited in India. 

Mr Steven Schneider is a Partner 

& Managing Director of TPG 

Capital, Limited. Prior to joining 

TPG in 2005, Mr Schneider was 

the President & CEO of GE Asia- 

Pacific where he previously spent 

20 years at GE Company, 14 of 

which were in Asia. Mr Schneider 

is a Director of Hanaro Telecom, 

Myer Department Store and 

Sigma Manufacturing. 

Mr Ashish Jaiprakash Shastry 


Mr Ashish Shastry is a Managing 

Director and Head of Southeast 

Asia at TPG Capital (Singapore) 

Pte Ltd. Mr Shastry has worked 

at TPG since 1998, during 

which time he has been based 

in Singapore and Hong Kong, 

focusing on TPG’s investment 

activities in India, Australia 

and Southeast Asia. He also 

serves on the board of Lee Hing 

Development Limited. 

Mr David R. White 


Mr David White is the Chairman 

of the Board and Chief Executive 

Officer of Iasis Healthcare 

LLC, headquartered in the 

United States. Mr White was 

also previously Executive Vice 


Officer of Community Health 

Systems, Inc., a hospital 

management company that 

operated about 20 acute care 

hospitals in the United States. 

Mr Ho Kian Hock 

(alternate director to Mr Ho Kian 

Guan) 

25 



2007 SENIOR MANAGEMENT 


Group President and Chief 

Executive Officer 

Dr Lim Cheok Peng, 60, is the 

Managing Director of Parkway 

Holdings and he sits on the 

Executive Committee. Dr Lim 

has been steering the Group’s 

healthcare efforts since 1987 

and recently, has also been 

designated as the Group 


Officer. Dr Lim is a cardiologist 

by profession and holds the 

following qualifications: 

MBBS (Singapore), M.Med. 

Int. Med (Singapore), MRCP 

(UK), FRCP (Edinburgh), FRCP 

(Glasgow), FAMS (Cardiology). 

Daniel James Snyder, FACHE 

Group Executive Vice President 

and Group Chief Operating 

Officer 

Dan Snyder, 52, was appointed 

as Group Chief Operating 

Officer on 19 June 2006 and 

was recently designated as 

Group Executive Vice President 

and Group Chief Operating 

Officer. Mr Snyder leads all 

healthcare operations within 

Parkway’s integrated healthcare 

system. 

Prior to joining Parkway, 

Mr Snyder served as the 

President of Banner Health’s 

Western Region. Based in 

Phoenix, Arizona, Mr Snyder 

led twelve hospitals across the 

western United States. Prior to 

Banner Health, he spent three 

years with the Intermountain 

Health Care, Salt Lake City, 

Utah, leading several hospitals 

across the Intermountain 

West of the United States. 

Prior to Intermountain Health 

Care, Mr Snyder served as 

a commissioned officer and 

healthcare executive in the 

United States Navy’s Medical 

Service Corps. Over the 

course of two decades, he led 

myriad hospital and healthcare 

operations around the world 

serving in Asia, Europe, the 

Middle East, Africa and the 

United States. Mr Snyder 

also served in multiple tours 

on the staff of the Chief of 

Naval Operations, Office of the 

Surgeon General, the Pentagon. 

In the Pentagon, Mr Snyder 

directed the strategic planning, 

programming, budgeting and 

operations for the Department 

of the Navy’s global integrated 

health system. 

Mr Snyder holds undergraduate 

(Southern Illinois University) 

and graduate (Webster 

University) degrees in hospital 

administration and a graduate 

degree in National Resource 

Strategy from the National 

Defense University, Washington, 

DC. Mr Snyder is a Fellow in the 

American College of Healthcare 

Executives having served as both 

a Regent and Governor for the 

college. 

Molly Foo 

Group Senior Vice President, 

Finance 

Molly Foo, 47, was appointed 

as Chief Financial Officer 

on 1 April 2003 and was 

recently designated as Senior 

Vice President, Finance/Chief 

Financial Officer. Ms Foo started 

with Mount Elizabeth Hospital 

in August 1993 and was the 

General Manager, Finance. Prior 

to this, Ms Foo was the Financial 

Controller for Mount Alvernia 

Hospital from 1990 to 1993. 

Ms Foo graduated with 

a Bachelor in Accountancy 

from the National University of 

Singapore. 

Choo Oi Yee 


Strategic Planning & Business 

Development 

Choo Oi Yee, 33, joined 

Parkway on 15 May 2006 and 

was recently designated as 


Strategic Planning & Business 

Development. Ms Choo is 

responsible for the formulation 

and implementation of 

Parkway’s business strategy and 

business development. Prior 

to joining Parkway, Ms Choo 

was an investment banker with 

Citigroup from 2000 to 2006. 

She was with Arthur Anderson 

from 1996 to 1998. 

Ms Choo graduated with 

a Bachelor in Accountancy from 

the Nanyang Technological 

University of Singapore and 

holds an MBA from Manchester 

Business School. 

June Tay 


General Counsel 

June Tay, 52, was appointed as 

Group Legal Manager in 1996 

and was recently designated as 


General Counsel/Company 

Secretary. Ms Tay is responsible 

for legal and corporate 

secretarial matters as well as risk 

management for Parkway and 

its group of companies. Ms Tay 

joined Parkway Properties Pte 

Ltd in May 1981 as its Corporate 

Legal Officer and has been the 

Company Secretary of Parkway 

since 1985. 

Ms Tay graduated with 

a Bachelor of Laws (Honours) 

from the University of Singapore. 

Bella Ong 


People Resource 

Bella Ong, 49, was appointed 

as General Manager, Human 

Resource on 1 October 1999 

and was recently designated 

as Group Senior Vice 

President, People Resource. 

Ms Ong is responsible for the 

Group’s human resource and 

development matters. Ms Ong 

started with Gleneagles Hospital 

as Senior Manager in September 

1994 and was subsequently 

promoted to General Manager, 

Human Resource. 

Ms Ong graduated with 

a Bachelor of Business in 

Business Administration and 

holds a Master of Human 

Resource Management from 

Rutgers University, The State 

University of New Jersey. 

Nellie Tang 

Chief Executive Officer, 

Mount Elizabeth Hospital 

Nellie Tang, 62, was appointed 

as General Manager, Mount 

Elizabeth Hospital on 1 July 1998 

and was recently designated as 

Chief Executive Officer, Mount 

Elizabeth Hospital. Mrs Tang 

is responsible for the general 

management and operations of 

the Hospital. Mrs Tang started 

with Mount Elizabeth Hospital 

in May 1981 and was Director 

of Nursing prior to her current 

appointment. In May 2006, 

Mrs Tang was appointed 

Chairman of the Singapore 

Nursing Board. 

Mrs Tang holds a Master 

of Science in Healthcare 

Management from the University 

of Wales, UK. 

Dr Goh Jin Hian 


Gleneagles Hospital 

Dr Goh Jin Hian, 38, joined 

Gleneagles Hospital as General 

Manager on 1 April 2006 and 

was recently designated as Chief 

Executive Officer, Gleneagles 

Hospital. Dr Goh is responsible 

for the general management 

and operations of the Hospital. 

Dr Goh started with Parkway 

Shenton on 1 April 1999 and 

was its Executive Director. Prior 

to joining Parkway, Dr Goh was 

with the Ministry of Health. 

Dr Goh graduated with a MBBS 

from the National University of 

Singapore and holds an MBA 

from the University of Hull, UK 

and completed the Advanced 

Management Programme at 

Wharton. 

Lim Poh Suan 

Divisional Vice President, 

Imaging Services and 


Medi-Rad Associates Ltd 

Lim Poh Suan, 54, was 

appointed as General Manager, 

Medi-Rad Associates Ltd on 

1 March 2002 and was recently 

designated as Divisional Vice 

President, Imaging Services and 


Medi-Rad Associates Ltd. 

Ms Lim is responsible for the 

general management and 

operations of the Group’s 

radiology and nuclear medicine 

services. Ms Lim started with 

Mount Elizabeth Hospital in 

July 1984 and was Head of 

Radiology with the Hospital prior 

to her current appointment. 

Ms Lim graduated with 

a Bachelor of Science in 

Economics from the University of 

London and holds a Diploma of 

the College of Radiographers. 

George Pusavat 

Divisional Vice President, 

Laboratory Services and 

Chief Executive Officer, Parkway 

Laboratory Services Ltd. 

George Pusavat, 54, was 

appointed as General Manager, 

Parkway Laboratory Services Ltd 

on 1 July 1997 and was recently 

designated as Divisional Vice 

President, Laboratory Services 

and Chief Executive Officer, 

Parkway Laboratory Services 

Ltd. Mr Pusavat is responsible 

for the general management 

and operations of the Group’s 

laboratory services. 

Mr Pusavat graduated with 

a Bachelor of Science in 

Biochemistry from University of 

California at Los Angeles, 

a Bachelor of Science in Medical 

Technology from California 

State University and a Master 

of Business Administration 

from University of Southern 

California. He also holds a MT 

(ASCP) from American Society 

for Clinical Pathology and a CLS 

from State of California, USA. 

26 

27 



CORPORATE DIRECTORY 

28 


Corporate Office 


1 Grange Road #11-01 Orchard Building 


Tel: (65) 6796 0600 

Fax: (65) 6796 0634/5 

www.parkwayholdings.com 

Singapore Hospitals 

EAST SHORE HOSPITAL 

321 Joo Chiat Place 


Tel: (65) 6344 7588 

Fax: (65) 6345 4966 

www.eastshore.com.sg 

GLENEAGLES HOSPITAL 

6A Napier Road 


Tel: (65) 6473 7222 

Fax: (65) 6472 5816 

www.gleneagles.com.sg 

MOUNT ELIZABETH HOSPITAL 

3 Mount Elizabeth 


Tel: (65) 6737 2666 

Fax: (65) 6737 1189 

www.mountelizabeth.com.sg 

International Hospitals and Medical 

Centres 

GLENEAGLES INTAN MEDICAL CENTRE, 

KUALA LUMPUR 

282 & 286 Jln Ampang 

50450 Kuala Lumpur 

Tel: (60-3) 4257 1300 

Fax: (60-3) 4257 9233 

www.gimc.com.my 

GLENEAGLES MEDICAL CENTRE, PENANG 

1 Jln Pangkor, 10050 Penang 

Malaysia 

Tel: (60-4) 227 6111 

Fax: (60-4) 226 2994 

www.gleneagles-penang.com 

APOLLO GLENEAGLES HOSPITAL, KOLKATA 

58 Canal Circular Road 

Kolkata 700 054 

India, West Bengal 

Tel: (91-33) 2320 5211-15 

Fax: (91-33) 2320 5184 

www.apollogleneagleshospitals.com 

GLENEAGLES JPMC, BRUNEI 

Jerudong Park, BG 3122 

Brunei, Darussalam 

Tel: (673) 261 1883 

Fax: (673) 261 1886 

www.gleneaglesjpmc.com.bn 

SHANGHAI GLENEAGLES INTERNATIONAL 

MEDICAL & SURGICAL CENTRE 

389 Nanjing West Road 

Tomorrow Square, 4th Floor 

Shanghai 200003. China 

Tel: (86) 21 6375 5588 

Fax: (86) 21 6375 5688 

Email: shanghai_mrc@parkwayholdings.net 

PANTAI MEDICAL CENTRE 

No. 8, Jln Bukit Pantai 


Tel: (60-3) 2296 0888 

Fax: (60-3) 2282 1557 

Email: pmc@pantai.com.my 

PANTAI CHERAS MEDICAL CENTRE 

1, Jln 1/96A 

Taman Cheras Makmur 


Tel: (60-3) 9132 2022 

Fax: (60-3) 9132 0687 

Email: cpantai@tm.net.my 

PANTAI KLANG SPECIALIST MEDICAL 

CENTRE 

42, Jln Persiaran Raja Muda 

Musa 

41100 Klang, Selangor 

Tel: (60-3) 3372 5222 

Fax: (60-3) 3371 5705 

Email: infoklang@pantai.com.my 

HOSPITAL PANTAI PUTRI 

126, Jln Tambun 

31400 Ipoh, Perak 

Tel: (60-5) 548 4333 

Fax: (60-5) 545 1163 

Email: pantaihp@tm.net.my 

HOSPITAL PANTAI MUTIARA 

82, Jln Tengah 

Bayan Baru 

11900 Pulau Pinang 

Tel: (60-4) 643 3888 

Fax: (60-4) 643 2888 

Email: admin@hpm.com.my 

HOSPITAL PANTAI AYER KEROH 

No. 2418-1, KM 8 

Lebuh Ayer Keroh 

75450 Melaka 

Tel: (60-6) 231 9999 

Fax: (60-6) 231 3299 

Email: hpak@po.jaring.my 

HOSPITAL PANTAI INDAH 

Jln Perubatan 1 

Pandan Indah 


Tel: (60-3) 4289 2828 

Fax: (60-3) 4289 2829 

Email: hpi@pantai.com.my 

HOSPITAL PANTAI BATU PAHAT 

9S, Jln Bintang Satu, Taman Koperasi Bahagia 

83000 Batu Pahat, Johor 

Tel: (60-7) 433 8811 / 2228 

Fax: (60-7) 433 1881 

Email: admin@hpbp.com.my 

Key Healthcare Services 

GLENEAGLES CRC PTE LTD* 

111 Somerset Road 

#11-02, Singapore Power Building 


Tel: (65) 6737 3642 

Fax: (65) 6471 3642 

www.gleneaglescrc.com 

PARKWAY LABORATORY SERVICES LTD* 

28 Ayer Rajah Crescent #03-08 


Tel: (65) 6278 9188 

Fax: (65) 6248 5878 

www.parkwaylab.com.sg 

MEDI-RAD ASSOCIATES LTD* 

302 Orchard Road #18-01 Tong Building 


Tel: (65) 6736 3538 ext 37 

Fax: (65) 6732 7776 

www.medirad.com.sg 

PARKWAY SHENTON PTE LTD* 

Cyberhub Building 

20 Bendemeer Road #01-02/06 


Tel: (65) 6227 7777 

Fax: (65) 6225 3735 

www.parkwayshenton.com 

FOMEMA SDN BHD 

Lot G8 & G9, Level 5, Block G (Central) 

Pusat Bandar Damansara 

Damansara Heights 


Tel: (60-3) 2094 6188 

Fax: (60-3) 2094 6802 

www.fomema.com.my 

PANTAI MEDIVEST SDN BHD 

Mezzanine Floor, West Wing 

Bangunan Avenue 

No. 8 Jalan Damansara Endah 

Damansara Heights 


Tel: (60-3) 2092 1000 

Fax: (60-3) 2092 5000 

Email: custsvc@medivest.com.my 

PANTAI PREMIER PATHOLOGY SDN BHD 

3rd Floor, Block A, Pantai Medical Centre 

No. 8 Jalan Bukit Pantai 


Tel: (60-3) 2282 8795 

Fax: (60-3) 2282 2131 

Email: admin@premierpathology.com.my 

IPAC (International Patient 

Assistance Centre) 

Singapore: 1 

Bangladesh: 3 

Chittagong 

Dhaka 

Sylhet 

Brunei Darussalam: 2 

Cambodia:1 

Phnom Penh 

Canada: 1 

Vancouver 

China: 1 

Shanghai 

Egypt:1 

Cairo 

India: 4 

Chennai 

Mumbai 

New Delhi 

Punjab 

Indonesia: 17 

Balikpapan 

Bandung 

Batam 

Jakarta: 2 

Makassar 

Manado 

Malang 

Medan 

Padang 

Palembang 

Pekan Baru 

Pontianak 

Semarang 

Solo 

Surabaya 

Yogyakarta 

Malaysia: 4 

Johor Bahru 

Kota Kinabalu 

Kuala Lumpur 

Kuching 

Myanmar: 1 

Yangon 

Nigeria: 1 

Lagos 

Pakistan: 3 

Islamabad 

Karachi 

Lahore 

Philippines: 1 

Manila 

Russia: 1 

Vladivostok 

Sri Lanka: 1 

Colombo 

Thailand: 1 

Bangkok 

United Arab Emirates: 1 

Abu Dhabi 

USA: 1 

New Mexico 

Vietnam: 3 

Hanoi 

Ho Chi Minh 

Da Nang 

* Corporate liaison office

financial REPORT 

DIRECTORS’ REPORT 30 

STATEMENT BY DIRECTORS 37 

INDEPENDENT AUDITORS’ REPORT 38 

BALANCE SHEETS 39 

CONSOLIDATED INCOME STATEMENTS 41 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 42 

CONSOLIDATED CASH FLOW STATEMENT 46 

NOTES TO THE FINANCIAL STATEMENTS 48 

SUPPLEMENTARY INFORMATION - SGX-ST LISTING MANUAL REQUIREMENTS 116 

ANALYSIS OF SHAREHOLDINGS 135 

NOTICE OF ANNUAL GENERAL MEETING 137 

PROXY FORM 

29 


Directors’ report 


We are pleased to submit this annual report to the members of the Company together with the audited financial 

statements for the financial year ended 31 December 2006. 

Directors 

The directors in office at the date of this report are as follows: 







Ho Kian Guan 



David R. White 

Ho Kian Hock 

Directors’ interests 

(Chairman) 

(Vice Chairman) 

(Managing Director) 

(alternate to Ho Kian Guan) 

According to the register kept by the Company for the purposes of Section 164 of the Companies Act, Chapter 

50 (the Act), particulars of interests of directors who held office at the end of the financial year (including those 

held by their spouses and infant children) in shares, debentures, warrants and share options in the Company and 

in related corporations (other than wholly-owned subsidiaries) are as follows: 

Name of director and corporation in 

which interests are held 

Company 

Holdings in the name 

of the director, spouse 

or infant children 

At beginning 

of the year 

At end 

of the year 

Other holdings in which 

the director is deemed 

to have an interest 

At beginning 

of the year 

Ordinary Shares fully paid 

At end 

of the year 

Sunil Chandiramani 50,000 262,500 – – 

Dr Lim Cheok Peng 2,000 1,183,350 – – 

Chang See Hiang 125,000 210,000 – – 

Ho Kian Guan 693,000 727,650 10,000,000 10,500,000 

Ho Kian Hock 100,000 105,000 10,000,000 10,500,000 

Name of director and corporation 

in which interests are held 

Holdings at 

beginning of 

the year 

Holdings 

at end 

of the year 

Company (cont’d) Parkway Share Option Scheme 2001 

Options to subscribe for Ordinary 

Shares (exercise price at $0.865 per 

share and exercisable between 

10/4/2002 and 9/4/2006) 

Dr Lim Cheok Peng 500,000 – 


Shares (exercise price at $0.94 per 


20/9/2002 and 19/9/2006) 

Sunil Chandiramani 200,000 – 

Alain Ahkong Chuen Fah 150,000 – 

Chang See Hiang 25,000 – 


Shares (exercise price at $0.785* per 


20/4/2003 and 19/4/2007) 

Sunil Chandiramani 200,000 200,000 

Dr Lim Cheok Peng 500,000 – 

Alain Ahkong Chuen Fah 150,000 50,000 

Chang See Hiang 50,000 – 

Ho Kian Guan 25,000 25,000 




20/11/2005 and 19/11/2009) 


Dr Lim Cheok Peng 500,000 375,000 


Chang See Hiang 100,000 100,000 

Ho Kian Guan 57,000 57,000 

30 

31 





Name of director and corporation 

in which interests are held 

Company (cont’d) 

Holdings at 

beginning of 

the year 

Holdings 

at end 

of the year 

Parkway Share Option Scheme 2001 (cont’d) 




10/12/2006 and 9/12/2010) 

Richard Seow Yung Liang 1,000,000 1,000,000 


Dr Lim Cheok Peng 1,500,000 1,500,000 


Chang See Hiang 100,000 100,000 

Timothy David Dattels – 60,000 

Ho Kian Guan 100,000 100,000 

Dr Ronald Ling Jih Wen 50,000 50,000 

Ashish Jaiprakash Shastry 60,000 60,000 

David R. White – 50,000 




10/03/2007 and 9/03/2011) 

Richard Seow Yung Liang – 650,000 

Sunil Chandiramani – 100,000 

Dr Lim Cheok Peng – 1,000,000 

Alain Ahkong Chuen Fah – 100,000 

Chang See Hiang – 100,000 

Timothy David Dattels – 100,000 

Ho Kian Guan – 100,000 

Dr Ronald Ling Jih Wen – 100,000 

Ashish Jaiprakash Shastry – 100,000 

David R. White – 100,000 




18/11/2008 and 17/11/2011) 

Alain Ahkong Chuen Fah – 150,000 

* Following the issue of rights shares pursuant to the Rights Issue of Parkway Holdings Limited on 12 December 2006, the exercise prices of 

the existing share options were adjusted downwards by $0.05 on the same date so as to give the option holders the effect of having the 

same proportion of equity capital as that to which they were previously entitled. 

Except as disclosed in this report, no director who held office at the end of the financial year had interests in shares, 

debentures, warrants or share options of the Company, or of related corporations, either at the beginning or at 

the end of the financial year. 

Except as disclosed in this report, there were no changes in any of the above-mentioned interests in the Company 

between the end of the financial year and 21 January 2007. 

During the year, certain transactions were made between the Company and/or its subsidiaries and its directors, or 

the subsidiaries’ directors or a firm in which one of the directors is a member or companies in which the directors 

of the Company or its subsidiaries have substantial financial interest in the ordinary course of business. However, 

these directors have neither received nor will they become entitled to receive any benefit from these transactions 

other than as suppliers, directors and members of these firms/companies. 

Except for salaries, bonuses and fees and those benefits that are disclosed in this report and in note 23 to the 

financial statements, since the end of the last financial year, no director has received or become entitled to receive, 

a benefit by reason of a contract made by the Company or 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. 

Share options 

Parkway Share Option Scheme 2001 (Parkway Scheme 2001) 

The Parkway Scheme 2001 was approved by the shareholders of the Company at an Extraordinary General Meeting 

held on 18 January 2001. Details of the Parkway Scheme 2001 and amendments effected by a resolution passed 

at the Extraordinary General Meeting of the Company held on 4 July 2001 were set out in the Directors’ Report 

for the year ended 31 December 2001. Pursuant to an Extraordinary General Meeting held on 2 November 2006, 

the Parkway Scheme 2001 was further amended to, inter alia, take into account the Companies (Amendment) Act 

2005 which came into operation on 30 January 2006, including to provide for the possible use of treasury shares in 

the scheme, and to allow the share options to be granted at a discount, as well as to provide for greater flexibility 

in the determination of the vesting period of the share options, which shall be on or after the first anniversary or 

second anniversary (as the case may be) of the date on which the option is granted. 

The Parkway Scheme 2001 was previously administered by the Company’s Share Option Scheme Committee. 

This Committee was dissolved on 9 November 2006 and the responsibility for the administration of the Parkway 

Scheme 2001 was assigned to the Remuneration Committee. The Remuneration Committee comprises 4 directors, 

namely, Timothy David Dattels, Richard Seow Yung Liang, Sunil Chandiramani and Ashish Jaiprakash Shastry. 

Information regarding the Parkway Scheme 2001 is set out below: 

Market Price Options 

(i) 

(ii) 

The exercise price of the option is determined at the average of the last dealt prices of the Company’s shares 

on the Singapore Exchange Securities Trading Limited (SGX-ST) prevailing on the three consecutive trading 

days immediately preceding the date of grant of such options (the Market Price). 

The options shall be subject to such conditions (including any vesting schedule) as may be imposed by the 

Committee and shall be exercisable, in whole or in part, during the period commencing one year after the 

grant date and expiring on the fifth anniversary of the grant date unless they have been cancelled or have 

lapsed prior to that date. 

Incentive Options 

(i) 

(ii) 

The exercise price of the option is determined by the Remuneration Committee at a discount to the Market 

Price, provided that the maximum discount does not exceed 20% of the Market Price. 

The options shall be subject to such conditions (including any vesting schedule) as may be imposed by the 

Committee and shall be exercisable, in whole or in part, during the period commencing after the second 

anniversary of the grant date and expiring on the fifth anniversary of the grant date unless they have been 

cancelled or have lapsed prior to that date. 

32 

33 





At the end of the financial year, details of the options granted under the Parkway Scheme 2001 on the unissued 

ordinary shares of the Company are as follows: 

Date of 

grant of 

options 

Exercise 

price per 

share 

Options 

outstanding 

at 1 Jan 2006 

Options 

granted 

Options 

exercised 

Options 

cancelled 

Options 

outstanding 

at 31 Dec 


Number 

of option 

holders 

at 31 Dec 

2006 Exercise period 

9/4/2001 $0.8650 736,000 – 735,500 500 – – 10/4/2002 to 9/4/2006 

19/9/2001 $0.9400 375,000 – 375,000 – – – 20/9/2002 to 19/9/2006 

19/4/2002 $0.7850* 2,996,750 – 1,965,750 75,500 955,500 56 20/4/2003 to 19/4/2007 

19/11/2004 $1.3767* 2,137,000 – 462,000 97,500 1,577,500 25 20/11/2005 to 19/11/2009 

15/11/2005 $2.0030* 3,855,000 – 17,500 280,000 3,557,500 51 16/11/2006 to 15/11/2010 

9/12/2005 $2.0370* 3,010,000 170,000 # – 60,000 3,120,000 10 10/12/2006 to 9/12/2010 

9/3/2006 $2.3030* – 5,066,000 – 236,000 4,830,000 60 10/3/2007 to 9/3/2011 

17/11/2006 $2.3100* 1 – 150,000 – – 150,000 1 18/11/2008 to 17/11/2011 

17/11/2006 $2.3400* 2 – 1,000,000 – – 1,000,000 1 18/11/2008 to 17/11/2011 

13,109,750 6,386,000 3,555,750 749,500 15,190,500 

* Following the issue of rights shares pursuant to the Rights Issue of the Company on 12 December 2006, the exercise prices of the 

existing shares options were adjusted downwards by $0.05 on the same date so as to give the option holders the effect of having the 

same proportion of equity capital as that to which they were previously entitled. 

# 

Options granted on 9 December 2005 but accepted only during the current financial year. 

1 

Options granted at a discount of 16.21% of the Market Price. 

2 


Details of options granted to directors of the Company under the Parkway Scheme 2001 are as follows: 

Name of director 

Options 

granted for 

financial 

year ended 

31 Dec 2006 

Aggregate 

options 

granted since 

commencement 

of scheme to 


Aggregate 

options 

exercised since 

commencement 

of scheme to 


Aggregate 

options 

cancelled since 

commencement 

of scheme to 


Aggregate 

options 

outstanding 

as at 


Richard Seow Yung Liang 650,000 1,650,000 – – 1,650,000 

Sunil Chandiramani 100,000 700,000 200,000 – 500,000 

Dr Lim Cheok Peng 1,000,000 4,000,000 1,125,000 – 2,875,000 

Alain Ahkong Chuen Fah 250,000 750,000 250,000 – 500,000 

Daniel Ashton Carroll* 100,000 # 160,000 – 160,000 – 

Chang See Hiang 100,000 500,000 200,000 – 300,000 

Timothy David Dattels 100,000 # 160,000 – – 160,000 

Ho Kian Guan 100,000 475,000 193,000 – 282,000 

Dr Ronald Ling Jih Wen 100,000 150,000 – – 150,000 

Ashish Jaiprakash Shastry 100,000 160,000 – – 160,000 

David R. White 100,000 # 150,000 – – 150,000 

Ho Kian Hock – 100,000 100,000 – – 

* Retired on 12 April 2006 

# 

Exclude 170,000 options granted on 9 December 2005 but accepted only during the current financial year 

Since the commencement of the Parkway Scheme 2001, no options have been granted to the controlling 

shareholders of the Company or their associates. 

Since the commencement of the Parkway Scheme 2001, no participant under the Parkway Scheme 2001 has been 

granted 5% or more of the total options available under the Parkway Scheme 2001. 

During the financial year, 6,216,000 options were granted to and accepted by the employees and non-executive 

directors of the Company and its subsidiaries under the Parkway Scheme 2001. 25,511,000 options have been 

granted to the employees and non-executive directors of the Company and its subsidiaries since the commencement 

of the Parkway Scheme 2001 to the end of the financial year under review. 

During the financial year ended 31 December 2006, 1,150,000 options were granted at a discount of more than 

10%, representing 18.5% of the total number of options granted during the financial year under review. No 

options were granted at a discount of 10% or less during the financial year under review. 

Subsequent to the balance sheet date, 584,000 options were exercised under the Parkway Scheme 2001. 

Except as disclosed above, there were no unissued shares of the Company or its subsidiaries under options granted 

by the Company or its subsidiaries as at the end of the financial year. 

The options granted by the Company and its subsidiaries do not entitle the holders of the options, by virtue of such 

holding, to any rights to participate in any share issue of any other company. 

Parkway Performance Share Plan 

At the same Extraordinary General Meeting held on 2 November 2006, the shareholders of the Company approved 

the Parkway Performance Share Plan. The Parkway Performance Share Plan is administered by the Remuneration 

Committee, comprising 4 directors, namely, Timothy David Dattels, Richard Seow Yung Liang, Sunil Chandiramani 

and Ashish Jaiprakash Shastry. 

Under the Parkway Performance Share Plan, eligible employees and non-executive directors of the Company 

and its subsidiaries will be awarded with fully paid up ordinary shares of the Company, or cash in lieu of ordinary 

shares of the Company equivalent to the aggregate market value of such performance shares or a combination of 

both, upon the expiry of the prescribed vesting period when certain prescribed performance targets are met. The 

performance shares which may be issued pursuant to awards granted under the Parkway Performance Share Plan, 

when added to the aggregate number of ordinary shares issued pursuant to other share-based incentive schemes 

of the Company, shall not exceed 15% of the total number of issued ordinary shares of the Company on the day 

immediately preceding the date on which the award is granted. 

No performance shares have been awarded to employees or non-executive directors of the Company and its 

subsidiaries since the adoption of the Parkway Performance Share Plan by the Company. 

Audit Committee 

The members of the Audit Committee during the year and at the date of this report are as follows: 

Alain Ahkong Chuen Fah (Chairman), non-executive director 

Chang See Hiang, non-executive director 

Ho Kian Guan, non-executive director 

Ashish Jaiprakash Shastry, non-executive director 

The Audit Committee performs the functions specified in Section 201B of the Act, the SGX-ST Listing Manual (the 

Listing Manual) and the Code of Corporate Governance 2005. 

The Audit Committee met four times during the year. 

34 

35 




Statement by Directors 

The principal responsibility of the Audit Committee is to assist the Board of Directors in the identification and 

monitoring of areas of significant business risks including the following: 

• the effectiveness of the management of principal business risks; 

• the effectiveness of the management of financial business risks and the reliability of management and financial 

reporting; 

• compliance with laws and regulations, particularly those of the Act and the Listing Manual, and its own code 

of business conduct; 

• the appropriateness of quarterly and full year announcements and reports; 

• the effectiveness of the Group’s system of internal controls; 

• the effectiveness and efficiency of internal and external audits; and 

• interested person transactions 

Specific functions of the Audit Committee include reviewing the scope of work of the internal and external auditors, 

reviewing the level of assistance provided by the Company’s officers to the internal and external auditors, receiving 

and considering the reports of the internal and external auditors, and ensuring that management responds to 

recommendations made by the internal and external auditors. The Committee also recommends the appointment 

of the external auditors and reviews the level of audit and non-audit fees. 

In addition, the Audit Committee has, in accordance with Chapter 9 of the Listing Manual, reviewed the 

requirements for approval and disclosure of interested person transactions, and with the assistance of the internal 

auditors, reviewed the interested person transactions. 

In our opinion: 

(a) 

(b) 

the financial statements set out on pages 39 to 115 are drawn up so as to give a true and fair view of the 

state of affairs of the Group and of the Company as at 31 December 2006 and of the results, changes in 

equity and cash flows of the Group for the year ended on that date in accordance with the provisions of the 

Singapore Companies Act, Chapter 50 and Singapore Financial Reporting Standards; and 

at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay 

its debts as and when they fall due. 

The Board of Directors has, on the date of this statement, authorised these financial statements for issue. 

On behalf of the Board of Directors 


Director 


Director 

26 February 2007 

The Audit Committee has full access to management and is given the resources required for it to discharge its 

functions. It has full authority and discretion to invite any director or executive officer to attend its meetings. 

The Audit Committee carried out a review of the external auditors’ remuneration, non-audit services provided by 

the external auditors, and the independence of the external auditors as required under Section 206(1A) of the 

Act and Rule 1207(6b) of the Listing Manual and determined that the auditors were independent in carrying out 

their audit of the financial statements. The Audit Committee has recommended to the Board of Directors that the 

auditors, KPMG, be nominated for re-appointment as auditors at the forthcoming Annual General Meeting of the 

Company. 

The auditors, KPMG, have indicated their willingness to accept re-appointment. 

On behalf of the Board of Directors 


Director 


Director 

36 


37 



Independent auditors’ report 

Members of Parkway Holdings Limited 

Balance sheets 

As at 31 December 2006 

We have audited the accompanying financial statements of Parkway Holdings Limited (the Company) and its 

subsidiaries (the Group), which comprise the balance sheet of the Company and the consolidated balance sheet 

as at 31 December 2006, the statement of changes in equity of the Company and the consolidated income 

statement, consolidated statement of changes in equity and consolidated cash flow statement for the year then 

ended, a summary of significant accounting policies and other explanatory notes, as set out on pages 39 to 115. 

Directors’ responsibility for the financial statements 

The Company’s directors are responsible for the preparation and fair presentation of these financial statements 

in accordance with the provisions of the Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial 

Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control 

relevant to the preparation and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting 

estimates that are reasonable in the circumstances. 

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 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 auditor’s judgment, 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 auditor considers internal control relevant to the entity’s preparation and fair presentation of 

the financial statements 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 the directors, 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. 

Opinion 

In our opinion: 

(a) 

the accompanying financial statements are properly drawn up in accordance with the provisions of the 

Act and Singapore Financial Reporting Standards to give a true and fair view of the state of affairs of the 

Company and of the Group as at 31 December 2006, the changes in equity of the Company and the results, 

changes in equity and cash flows of the Group for the year ended on that date; and 

Group 

Company 

Note 2006 2005 2006 2005 

$’000 $’000 $’000 $’000 

(restated) 

(restated) 

Non-current assets 

Property, plant and equipment 3 670,363 804,123 – – 

Intangible assets 4 152,918 180,935 – – 

Interests in subsidiaries 5 – – 777,239 690,146 

Interests in associates 6 11,122 49,967 (4,303) (4,329) 

Amounts due from joint ventures 7 96,876 – – – 

Other financial assets 8 49,423 28,884 – – 

Notes receivables 9 27,967 35,463 27,967 35,463 

Deferred tax assets 10 1,023 1,813 7 212 

1,009,692 1,101,185 800,910 721,492 

Current assets 

Completed properties held for resale 11 579 579 – – 

Inventories 12 16,374 17,448 – – 

Trade receivables 13 86,703 77,455 – – 

Other receivables, deposits and prepayments 14 17,854 25,162 172 437 

Tax recoverable 544 7,963 – 2,118 

Other financial assets 8 520 220 – – 

Notes receivables 9 5,601 6,021 5,601 6,021 

Cash and cash equivalents 15 93,536 108,009 8,038 8,692 

221,711 242,857 13,811 17,268 

Total assets 1,231,403 1,344,042 814,721 738,760 

Equity attributable to equity holders of the 

Company 

Share capital 16 364,859 181,753 364,859 181,753 

Share premium – 114,041 – 114,041 

Other reserves 17 (9,425) (20,517) 8,526 12,968 

Accumulated profits 68,494 140,240 83,607 116,223 

423,928 415,517 456,992 424,985 

Minority interests 11,233 231,230 – – 

Total equity carried forward 435,161 646,747 456,992 424,985 

(b) 

the accounting and other records required by the Act to be kept by the Company and by those subsidiaries 

incorporated in Singapore of which we are the auditors have been properly kept in accordance with the 

provisions of the Act. 

KPMG 

Certified Public Accountants 

Singapore 


38 

39 

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



Balance sheets 

As at 31 December 2006 

Consolidated income statement 

Year ended 31 December 2006 

Group 

Company 

Note 2006 2005 2006 2005 

$’000 $’000 $’000 $’000 

(restated) 

(restated) 

Total equity brought forward 435,161 646,747 456,992 424,985 

Non-current liabilities 

Interest-bearing borrowings 19 377,157 427,682 346,365 310,000 

Financial derivatives 19 6,592 – 6,592 – 

Amounts due to joint venture partners 7 97,471 – – – 

Deferred tax liabilities 10 32,721 35,541 – – 

513,941 463,223 352,957 310,000 

Current liabilities 

Bank overdrafts 15 666 3,605 – – 

Trade payables and accrued operating expenses 104,263 115,095 3,148 3,213 

Other payables 20 25,260 42,318 776 562 

Interest-bearing borrowings 19 70,283 44,220 – – 

Intra-group financial guarantees 19 – – 99 – 

Amounts due to joint venture partners 7 55,174 1,090 – – 

Employee benefits 18 2,862 2,475 – – 

Current tax payable 23,793 25,269 749 – 

282,301 234,072 4,772 3,775 

Total liabilities 796,242 697,295 357,729 313,775 

Total equity and liabilities 1,231,403 1,344,042 814,721 738,760 

Group 

Note 2006 2005 

$’000 $’000 

(restated) 

Revenue 21 868,004 563,616 

Other operating income 20,445 18,146 

Inventories and consumables used (288,972) (137,731) 

Purchased and contracted services (72,664) (42,740) 

Costs of investments sold (297) – 

Depreciation and impairment losses of property, 

plant and equipment 3 (48,671) (37,110) 

Amortisation of intangible assets 4 (11,593) (3,499) 

Staff costs (231,439) (187,589) 

Impairment loss on available-for-sale financial assets (11,672) (1,375) 

Other operating expenses (104,309) (70,352) 

Finance costs (23,483) (12,110) 

Share of profits of associates (net of tax) 3,557 171 

Profit before income tax 22 98,906 89,427 

Income tax expense 24 (30,068) (22,037) 

Profit for the year 68,838 67,390 

Attributable to: 

Equity holders of the Company 55,283 61,969 

Minority interests 13,555 5,421 

Profit for the year 68,838 67,390 

Earnings per share (cents): 

Basic 25 7.44 8.40 

Diluted 25 7.41 8.37 

40 

41 




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

Consolidated statement of changes in equity 




Total 

Total 

attributable 

attributable 

Group 

Note 

Share 

capital 

Exchange 

Share fluctuation 

premium reserves 

Hedge 

reserve 

Equity 

Fair value compensation Accumulated 

reserve reserve profits 

to equity 

holders of 

the 

Company 

Minority 

interests 

Total 

equity 

Group 

Note 

Share 

capital 

Exchange 

Share fluctuation 

premium reserves 

Hedge 

reserve 

Equity 


reserve reserve profits 

to equity 

holders of 

the 

Company 

Minority 

interests 

Total 

equity 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

At 1 January 2005 180,728 111,412 (5,083) – (13,398) 35 136,270 409,964 9,548 419,512 

Exchange differences 

on retranslation of 

opening net assets of 

foreign subsidiaries and 

associates – – (1,582) – – – – (1,582) (2,766) (4,348) 

Changes in fair value of 

available-for-sale financial 

assets – – – – (368) – – (368) – (368) 

Effects on disposal of 


assets – – – – (464) – – (464) – (464) 

Net losses recognised 

directly in equity – – (1,582) – (832) – – (2,414) (2,766) (5,180) 

Effects arising on disposal of 

subsidiaries 27 – – 18 – – – – 18 (684) (666) 

Profit for the year – – – – – – 61,969 61,969 5,421 67,390 

Total recognised income and 

expense for the year – – (1,564) – (832) – 61,969 59,573 1,971 61,544 

Issue of shares under share 

option scheme 16 1,025 2,629 – – – – – 3,654 – 3,654 

Value of employee services 

received for issue of share 

options – – – – – 325 – 325 119 444 

Effects arising on acquisition 

of subsidiaries 27 – – – – – – – – 216,980 216,980 

Effects arising on dilution of 

interests in subsidiaries – – – – – – – – 7,064 7,064 

Final dividend paid of 4.5 

cents per share less tax 

at 20% in respect of year 

2004 – – – – – – (26,068) (26,068) – (26,068) 

First interim dividend paid of 

1.5 cents per share less 

tax at 20% – – – – – – (8,694) (8,694) – (8,694) 

Second interim dividend paid 

of 2.0 cents per share less 

tax at 20% – – – – – – (11,618) (11,618) – (11,618) 

Third interim dividend paid 

of 2.0 cents per share less 

tax at 20% – – – – – – (11,619) (11,619) – (11,619) 

Dividend paid to minority 

shareholders – – – – – – – – (4,452) (4,452) 

At 31 December 2005 181,753 114,041 (6,647) – (14,230) 360 140,240 415,517 231,230 646,747 

At 1 January 2006 181,753 114,041 (6,647) – (14,230) 360 140,240 415,517 231,230 646,747 

Exchange differences on 

retranslation of opening 

net assets of foreign 

subsidiaries and associates – – (1,326) – – – – (1,326) (2,417) (3,743) 

Impairment loss on 


assets – – – – 11,672 – – 11,672 – 11,672 



assets – – – – 5,309 – – 5,309 2,757 8,066 

Effects on disposal of 


assets – – – – (121) – – (121) (11) (132) 


financial derivatives – – – (6,592) – – – (6,592) – (6,592) 

Net gain and losses 

recognised directly in equity – – (1,326) (6,592) 16,860 – – 8,942 329 9,271 

Profit for the year – – – – – – 55,283 55,283 13,555 68,838 

Total recognised income and 

expense for the year – – (1,326) (6,592) 16,860 – 55,283 64,225 13,884 78,109 

Issue of shares under share 

option scheme 16 2,970 354 – – – – – 3,324 – 3,324 

Issue of shares pursuant to 

rights issue 16 65,741 – – – – – – 65,741 – 65,741 

Transfer from share premium 

account to share capital 

upon implementation 

of the Companies 

(Amendment) Act 2005 114,395 (114,395) – – – – – – – – 

Balance carried forward 364,859 – (7,973) (6,592) 2,630 360 195,523 548,807 245,114 793,921 

42 

43 







Statement of changes in equity 


Group 

Balance brought 

Note 

Share 

capital 

Share 

premium 

Exchange 

fluctuation 

reserves 

Hedge 

reserve 


reserve 

Equity 

reserve 

profits 

Total 

attributable 

to equity 

holders of 

the 

Company 

Minority 

interests 

Total 

equity 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

forward 364,859 – (7,973) (6,592) 2,630 360 195,523 548,807 245,114 793,921 

Value of employee 

services received for 

issue of share options – – – – – 2,150 – 2,150 – 2,150 

Issue of share to 

minority shareholders – – – – – – – – 13,534 13,534 

Effects on acquisition of 

additional interests in 

subsidiaries – – – – – – – – (10,917) (10,917) 

Effects on adoption 

of proportionate 

consolidation – – – – – – – – (230,347) (230,347) 

Final dividend paid of 

5.0 cents per share 

less tax at 20% in 

respect of year 2005 – – – – – – (29,166) (29,166) – (29,166) 

First interim dividend 

paid of 1.5 cents per 

share less tax at 20% – – – – – – (8,755) (8,755) – (8,755) 

Second interim dividend 



Third interim dividend 



Special dividend paid of 

11.25 cents per share 

less tax at 20% in 

respect of year 2006 – – – – – – (65,741) (65,741) – (65,741) 

Dividend paid to 

minority shareholders – – – – – – – – (6,151) (6,151) 

At 31 December 2006 364,859 – (7,973) (6,592) 2,630 2,510 68,494 423,928 11,233 435,161 

Share 

Share 

Capital 

Note capital premium reserves reserve reserve profits Total 

Company $’000 $’000 $’000 $’000 $’000 $’000 $’000 

Equity 

compensation 

Hedge 

Accumulated 

At 1 January 2005, as previously reported 180,728 111,412 12,656 35 – 118,568 423,399 

Effects of adopting FRS 39 2.6 – – – – – 9 9 

At 1 January 2005, restated 180,728 111,412 12,656 35 – 118,577 423,408 

Profit for the year – – – – – 55,645 55,645 

Total recognised income for the year – – – – – 55,645 55,645 

– 

Issue of shares under share option scheme 16 1,025 2,629 – – – – 3,654 

Value of employee services received for issue 

of share options – – – 277 – – 277 

Final dividend paid of 4.5 cents per share less 

tax at 20% in respect of year 2004 – – – – – (26,068) (26,068) 

First interim dividend paid of 1.5 cents per 

share less tax at 20% – – – – – (8,694) (8,694) 

Second interim dividend paid of 2.0 cents 

per share less tax at 20% – – – – – (11,618) (11,618) 

Third interim dividend paid of 2.0 cents per 


At 31 December 2005 181,753 114,041 12,656 312 – 116,223 424,985 

At 31 December 2005, as previously 

reported 181,753 114,041 12,656 312 – 116,214 424,976 

Effects of adopting FRS 39 2.6 – – – – – 9 9 

At 31 December 2005, restated 181,753 114,041 12,656 312 – 116,223 424,985 

Changes in fair value of financial derivatives – – – – (6,592) – (6,592) 

Net losses recognised directly to equity – – – – (6,592) – (6,592) 

Profit for the year – – – – – 94,413 94,413 

Total recognised income and expense for 

the year – – – – (6,592) 94,413 87,821 

Issue of shares under share option scheme 16 2,970 354 – – – – 3,324 

Issue of shares pursuant to rights issue 16 65,741 – – – – – 65,741 

Transfer from share premium account to 

share capital upon implementation of the 

Companies (Amendment) Act 2005 114,395 (114,395) – – – – – 

Value of employee services received for issue 

of share options – – – 2,150 – – 2,150 

Final dividend paid of 5.0 cents per share less 

tax at 20% in respect of year 2005 – – – – – (29,166) (29,166) 

First interim dividend paid of 1.5 cents per 


Second interim dividend paid of 2.0 cents 

per share less tax at 20% – – – – – (11,679) (11,679) 

Third interim dividend paid of 2.0 cents per 


Special dividend paid of 11.25 cents per 

share less tax at 20% in respect of year 

2006 – – – – – (65,741) (65,741) 

At 31 December 2006 364,859 – 12,656 2,462 (6,592) 83,607 456,992 

44 

45 





Consolidated cash flow statement 


Consolidated cash flow statement 


Group 


$’000 $’000 

(restated) 

Operating activities 

Profit before income tax 98,906 89,427 

Adjustments for: 

Exchange difference 3,392 (574) 

Loss on dilution of interest in subsidiary – 2,141 

Depreciation and impairment losses of property, plant 

and equipment 48,671 37,110 

Amortisation of intangible assets 11,593 3,499 

Impairment loss on available-for-sale financial assets 11,672 1,375 

Allowance (written back)/made for impairment on receivables due from associates (33) 452 

Gain on disposal of equity investments (122) (283) 

(Gain)/Loss on disposal of property, plant and equipment (275) 462 

Loss on disposal of subsidiaries – 92 

Gain on disposal of associates (42) – 

Share of profits of associates (3,557) (171) 

Gain on redemption of fixed rate notes (878) – 

Share option expense 2,150 444 

Dividend income (2,680) (1,616) 

Interest income (4,225) (3,065) 

Interest expense 23,483 12,110 

Loan forgiven by former corporate shareholder of a subsidiary – (1,150) 

188,055 140,253 

Changes in working capital: 

Increase in inventories (3,461) (729) 

Increase in trade and other receivables (40,046) (20,931) 

Increase in financial assets available-for-sale and held for trading (331) (4) 

Increase in trade and other payables 16,889 18,024 

Cash generated from operations 161,106 136,613 

Income taxes paid (22,993) (14,102) 

Cash flows from operating activities carried forward 138,113 122,511 

Group 


$’000 $’000 

(restated) 

Cash flows from operating activities brought forward 138,113 122,511 

Investing activities 

Purchase of property, plant and equipment (66,296) (41,486) 

Proceeds from redemption of notes receivables 6,026 6,205 

Proceeds from sale of property, plant and equipment 3,624 3,618 

Acquisition of subsidiaries, net of cash 27 – (102,369) 

Acquisition of additional interests in subsidiaries (6,466) – 

Acquistion of additional interest in joint venture, net of cash (57,984) – 

Proceeds from redemption of preference shares by associate 2,040 – 

Acquisition of available-for-sale investments (236) – 

Investments in associates (82) – 

Proceeds from disposal of subsidiaries, net of cash 27 – 1,559 

Net repayment by associates 113 336 

Net repayment by joint ventures – 39 

Proceeds from disposal of available-for-sale investments 122 2,801 

Dividends received 3,094 1,616 

Interest received 3,334 2,074 

Proceeds from disposal of associates 2,123 – 

Cash flows from investing activities (110,588) (125,607) 

Financing activities 

Issue of shares under share option scheme 3,324 3,654 

Proceeds from rights issue 65,741 – 

Repayment of bank loans (67,192) (89,127) 

Proceeds from bank loans 410,532 82,575 

Repayment of finance lease obligations (1,767) (1,424) 

Redemption of floating rate notes (100,750) (30,000) 

Redemption of fixed rate notes (149,122) – 

Repurchase of floating rate notes (59,250) (77,000) 

Re-issue of floating rate notes – 77,000 

Loan from joint venture partner 54,880 – 

Interest paid (21,644) (10,946) 

Dividends paid (127,029) (57,999) 

Issue of shares to minority shareholders 13,534 6,125 

Shares re-purchased from minority shareholders (1,877) – 

Dividends paid to minority shareholders (6,151) (4,452) 

Pledged deposits (transferred to)/withdrawn from sinking fund and for 

credit facilities (4,085) 54 

Cash flows from financing activities 9,144 (101,540) 

Net increase/(decrease) in cash and cash equivalents 36,669 (104,636) 

Cash and cash equivalents at beginning of the year 90,850 196,477 

Effects of proportionate consolidation (51,310) – 

Exchange fluctuation on cash and cash equivalents (978) (991) 

Cash and cash equivalents at end of the year 15 75,231 90,850 

46 


During the year, property, plant and equipment amounting to $889,000 (2005: $1,686,000) was acquired under 

finance leases. 


47 



Notes to the financial statements 


These notes form an integral part of the financial statements. 

The financial statements were authorised for issue by the Board of Directors on 26 February 2007. 

1 Domicile and activities 

Parkway Holdings Limited (the Company) is incorporated in the Republic of Singapore and has its registered 

office at No. 1 Grange Road, #11-01 Orchard Building, Singapore 239693. 

The principal activities of the Company are those relating to investment holding while those of the subsidiaries 

consist of the business of private hospital ownership and management and related healthcare services, 

ownership and management of medical clinics, practice of dental surgeons and the operation of dental 

clinics, provision of clinical research services, ownership and management of radiology clinics, provision of 

comprehensive diagnostic laboratory services, provision of managed care and related services, underwriting 

of accident and healthcare insurance policies, and investment holding and trading. 

The consolidated financial statements relate to the Company and its subsidiaries (together referred to as the 

Group) and the Group’s interests in joint ventures and associates. 

2 Summary of significant accounting policies 

2.1 Basis of preparation 

The financial statements have been prepared in accordance with Singapore Financial Reporting Standards 

(FRS). 

The financial statements have been prepared on the historical cost basis except for certain financial assets and 

financial liabilities which are stated at fair value. The financial statements are presented in Singapore dollars 

which is the Company’s functional currency. All financial information presented in Singapore dollars has been 

rounded to the nearest thousand, unless otherwise stated. 

The preparation of financial statements requires management to make judgements, estimates and assumptions 

that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The 

estimates and associated assumptions are based on historical experience and various other factors that 

are believed to be reasonable under the circumstances, the results of which form the basis of making the 

judgements about carrying amounts of assets and liabilities that are not readily apparent from other sources. 

Actual results may differ from these estimates. 

The 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 and in any future periods affected. 

In particular, information about significant areas of estimation uncertainty and critical judgements in applying 

accounting policies that have the most significant effect on the amount recognised in the financial statements 

are described in the following notes: 

• Note 4 – assumptions of recoverable amounts relating to goodwill impairment 

• Note 18 – valuation of share options 

• Note 29 – valuation of financial instruments 



2 Summary of significant accounting policies (Cont’d) 

2.1 Basis of preparation (Cont’d) 

Accounting policies relating to the following types of transactions were changed during the year: 

• Interests in joint ventures, as described in note 2.2; 

• Foreign currencies – net investment in a foreign operation, as described in note 2.3; and 

• Intra-group financial guarantees, as described in note 2.6. 

Except for the above changes, the accounting policies set out below have been applied consistently by the 

Group. The accounting policies used by the Group have been applied consistently to all periods presented 

in these financial statements. 

2.2 Consolidation 

Business combinations 

Business combinations are accounted for under the purchase method. The cost of an acquisition is measured 

at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date 

of exchange, plus costs directly attributable to the acquisition. 

The excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent 

liabilities over the cost of acquisition is credited to the income statement in the period of the acquisition. 

Subsidiaries 

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the 

financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, 

potential voting rights that presently are exercisable are taken into account. The financial statements of 

subsidiaries are included in the consolidated financial statements from the date that control commences until 

the date that control ceases. 

Joint ventures 

Joint ventures are those entities over whose activities the Group has joint control, established by contractual 

agreement and requiring unanimous consent for strategic financial and operating decisions. Joint ventures are 

accounted for using proportionate consolidation. The financial statements of joint ventures are proportionately 

consolidated from the date that joint control commences until the date that joint control ceases. 

Associates 

Associates are those entities in which the Group has significant influence, but not control, over their financial 

and operating policies. Associates are accounted for using the equity method. The consolidated financial 

statements include the Group’s share of the income and expenses of associates, after adjustments to align 

the accounting policies with those of the Group, from the date that significant influence commences until the 

date that significant influence ceases. When the Group’s share of losses exceeds its interest in an associate, the 

carrying amount of that interest (including any long-term investments) is reduced to zero and the recognition 

of further losses is discontinued except to the extent that the Group has an obligation or has made payments 

on behalf of the associate. 

48 

49 






2.2 Consolidation (Cont’d) 

Transactions eliminated on consolidation 

Intra-group balances, and any unrealised income or expenses arising from intra-group transactions, are 

eliminated in preparing the consolidated financial statements. 

Unrealised gains arising from transactions with joint ventures are eliminated to the extent of the Group’s 

interest in the joint ventures. Unrealised losses are eliminated in the same way as unrealised gains except that 

losses shall be recognised immediately when they represent a reduction in the net realisable value of assets 

or an impairment loss. Balances with joint ventures are eliminated to the extent of the Group’s interest in the 

joint ventures. 

Unrealised gains arising from transactions with associates are eliminated against the investment to the extent 

of the Group’s interest in the associate. Unrealised losses are eliminated in the same way as unrealised gains, 

but only to the extent that there is no evidence of impairment. 

Accounting for subsidiaries and associates by the Company 

Investments in subsidiaries and associates are stated in the Company’s balance sheet at cost less accumulated 

impairment losses. 

Change in accounting policy 

Interests in joint ventures are accounted for using proportionate consolidation as the Group exercises joint 

control with the other partners over the financial and operational decisions in these entities. Previously, the 

interests in joint ventures (including partnerships) were accounted for using the equity method. The directors 

are of the view that the consolidated financial statements incorporating the proportionate consolidated 

assets, liabilities, revenue and expenses of the joint ventures present more relevant information of the financial 

position and operating results of the Group. 

This change in accounting policy has been recognised retrospectively and comparatives have been restated. 

The assets, liabilities, revenue and expenses in the consolidated financial statements have increased by the 

Group’s interests in the joint ventures. 

2.3 Foreign currencies 

Foreign currency transactions 

Transactions in foreign currencies are translated to the respective functional currencies of Group entities 

at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in 

foreign currencies at the reporting date are retranslated to the functional currencies at the exchange rate 

ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are 

measured at fair value are retranslated to the functional currency at the exchange rate at the date on which 

the fair value was determined. 

Foreign currency differences arising on retranslation are recognised in the income statement except for 

differences arising on the retranslation of monetary items that in substance form part of the Group’s net 

investment in a foreign operation (see below), available-for-sale equity instruments. 




2.3 Foreign currencies (Cont’d) 

Net investment in a foreign operation 

Exchange differences arising from monetary items that in substance form part of the Company’s net investment 

in a foreign operation are recognised in the Company’s income statement. Such exchange differences are 

reclassified to equity in the consolidated financial statements. When the hedged net investment is disposed 

of, the cumulative amount in equity is transferred to the income statement as an adjustment to the profit or 

loss arising on disposal. 

Foreign operations 

The assets and liabilities of foreign operations are translated to Singapore dollars at exchange rates prevailing 

at the reporting date. The income and expenses of foreign operations are translated to Singapore dollars at 

exchange rates ruling at the dates of the transactions. Goodwill and fair value adjustments arising on the 

acquisition of a foreign operation on or after 1 January 2005 are treated as assets and liabilities of the foreign 

operation and translated at the closing rate. For acquisitions prior to 1 January 2005, the exchange rates at 

the date of acquisition were used. 

Foreign currency differences are recognised in the exchange fluctuation reserves. When a foreign operation 

is disposed of, in part or in full, the relevant amount in the exchange fluctuation reserves is transferred to the 

income statement. 

2.4 Property, plant and equipment 

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. 

Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that 

is integral to the functionality of the related equipment is capitalised as part of that equipment. 

When parts of an item of property, plant and equipment have different useful lives, they are accounted for 

as separate items (major components) of property, plant and equipment. 

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount 

of the item if it is probable that the future economic benefits embodied within the part will flow to the Group 

and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment 

are recognised in the income statement as incurred. 

Depreciation is recognised in the income statement on a straight-line basis over the estimated useful lives (or 

lease term, if shorter) of each part of an item of property, plant and equipment. 

The estimated useful lives are as follows: 

Leasehold land 

remaining term of the lease 

Freehold buildings 2% 

Freehold medical centre suites 2% 

Leasehold buildings 2% 

Leasehold office premises and 

commercial buildings 2% 

Renovation and improvements 4% to 33 1 / 3 

% 

Hospital and medical equipment, and 

furniture, fittings and equipment 6 2 / 3 

% to 33 1 / 3 

% 

Motor vehicles 20% 

50 

51 









2.4 Property, plant and equipment (Cont’d) 

2.5 Intangible assets (Cont’d) 

No depreciation is provided on freehold land and construction in progress. In respect of fully depreciated or 

impaired assets, the cost and accumulated depreciation and impairment losses are retained in the financial 

statements until they are no longer in use. 

Depreciation methods, useful lives and residual values are reviewed, and adjusted as appropriate, at each 

reporting date. 

Other intangible assets 

Other intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost 

less accumulated amortisation and impairment losses. Other intangible assets are amortised in the income 

statement on a straight-line basis over their estimated useful lives of 6 to 10 years, from the date on which 

they are available for use. 

2.5 Intangible assets 

Goodwill 

Other intangible assets that have indefinite lives or that are not available for use are stated at cost less 

impairment losses. Such intangible assets are tested for impairment annually or as and when indicators of 

impairment are identified as described in note 2.8. 

Goodwill and negative goodwill arise on the acquisition of subsidiaries, joint ventures and associates. 

2.6 Financial instruments 

Acquisitions prior to 1 January 2001 

Non-derivative financial instruments 

Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of 

the identifiable net assets and liabilities of the acquiree. 

Non-derivative financial instruments comprise investments in equity and debt securities, trade and other 

receivables, notes receivables, cash and cash equivalents, financial liabilities, and trade and other payables. 

Goodwill and negative goodwill on acquisitions were written off against accumulated profits in the year of 

acquisition. 

Goodwill and negative goodwill that have previously been taken to reserves are not taken to the income 

statement when (a) the business is disposed of or (b) the goodwill is impaired. 

Acquisitions occurring between 1 January 2001 and 31 December 2004 


the identifiable assets and liabilities of the acquiree. 

Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value 

through profit or loss, any directly attributable transaction costs, except as described below. Subsequent to 

initial recognition, non-derivative financial instruments are measured as described below. 

A financial instrument is recognised if the Group becomes a party to the contractual provisions of the instrument. 

Financial assets are derecognised if the Group’s contractual rights to the cash flows from the financial assets expire 

or if the Group transfers the financial asset to another party without retaining control or transfers substantially 

all the risks and rewards of the asset. Regular way purchases and sales of financial assets are accounted for at 

settlement date, i.e., the date that an asset is delivered to or by the Group. Financial liabilities are derecognised 

if the Group’s obligations specified in the contract expire or are discharged or cancelled. 

Goodwill arising on the acquisition of subsidiaries and joint ventures is presented in intangible assets. Goodwill 

arising on the acquisition of associates is presented together with investments in associates. 

Goodwill was stated at cost from the date of initial recognition and amortised over its estimated useful life 

of not more than 20 years. On 1 January 2005, the Group discontinued amortisation of this goodwill. This 

remaining goodwill balance is subject to testing for impairment, as described in note 2.8. 

Negative goodwill was derecognised by crediting accumulated profit on 1 January 2005. 

Acquisitions on or after 1 January 2005 


the identifiable assets, liabilities and contingent liabilities of the acquiree. 

Goodwill arising on the acquisition of subsidiaries and joint ventures is presented in intangible assets. Goodwill 

arising on the acquisition of associates is presented together with investments in associates. 

Goodwill is measured at cost less accumulated impairment losses. Goodwill is tested for impairment as 

described in note 2.8. Negative goodwill is recognised immediately in the income statement. 

Cash and cash equivalents comprise cash and bank balances, and deposits with financial institutions. Bank 

overdrafts that are repayable on demand and that form an integral part of the Group’s cash management are 

included as a component of cash and cash equivalents for the purpose of the cash flow statement. 

Held-to-maturity investments 

If the Group has the positive intent and ability to hold debt securities to maturity, they are classified as 

held-to-maturity. Held-to-maturity investments are measured at amortised cost using the effective interest 

method, less any impairment losses. 

Available-for-sale financial assets 

The Group’s investments in equity securities are classified as available-for-sale financial assets. Subsequent 

to initial recognition, they are measured at fair value and changes therein, other than for impairment losses 

and foreign exchange gains and losses on available-for-sale monetary items (see note 2.3), are recognised 

directly in equity. When an investment is derecognised, the cumulative gain or loss in equity is transferred to 

the income statement. 

Investments at fair value through profit or loss 

52 

Acquisition of minority interest 

Goodwill arising on the acquisition of a minority interest in a subsidiary represents the excess of the cost of 

the additional investment over the carrying amount of the net assets acquired at the date of exchange. 

An instrument is classified as at fair value through profit or loss if it is held for trading or is designated as such 

upon initial recognition. Financial instruments are designated as fair value through profit or loss if the Group 

manages such investments and makes purchase and sale decisions based on their fair value. Upon initial 

recognition, attributable transaction costs are recognised in the income statement when incurred. Financial 

instruments at fair value through profit or loss are measured at fair value, and changes therein are recognised 

in the income statement. 

53 









2.6 Financial instruments (Cont’d) 

2.6 Financial instruments (Cont’d) 

Others 

Impairment of financial assets (Cont’d) 

Other non-derivative financial instruments are measured at amortised cost using the effective interest method, 

less any impairment losses. 

Individually significant financial assets are tested for impairment on an individual basis. The remaining 

financial assets are assessed collectively in groups that share similar credit risk characteristics. 

Derivative financial instruments and hedging activities 

The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. 

Embedded derivatives are separated from the host contract and accounted for separately if the economic 

characteristics and risks of the host contract and the embedded derivative are not closely related, a separate 

instrument with the same terms as the embedded derivative would meet the definition of a derivative, and 

the combined instrument is not measured at fair value through profit or loss. 

All impairment losses are recognised in the income statement. Any cumulative loss in respect of an availablefor-sale 

financial asset recognised previously in equity is transferred to the income statement. 

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the 

impairment loss was recognised. For financial assets measured at amortised cost and available-for-sale 

financial assets that are debt securities, the reversal is recognised in the income statement. For available-forsale 

financial assets that are equity securities, the reversal is recognised directly in equity. 

Derivatives are recognised initially at fair value and attributable transaction costs are recognised in the income 

statement when incurred. Subsequent to initial recognition, derivatives are measured at fair value, and 

changes therein are accounted for as described below. 

Intra-group financial guarantees 

Financial guarantees are classified as financial liabilities. 

Cash flow hedges 

Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognised 

directly in equity to the extent that the hedge is effective. To the extent that the hedge is ineffective, changes 

in fair value are recognised in the income statement. 

Financial guarantees are recognised initially at fair value. Subsequent to initial measurement, the financial 

guarantees are stated at the higher of the initial fair value less cumulative amortisation and the amount that 

would be recognised if they were accounted for as contingent liabilities. When financial guarantees are 

terminated before their original expiry date, the carrying amount of the financial guarantees is transferred to 

the income statement. 

If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or 

exercised, hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognised 

in equity remains there until the forecast transaction occurs. When the hedged item is a non-financial asset, 

the amount recognised in equity is transferred to the carrying amount of the asset when it is recognised. In 

other cases the amount recognised in equity is transferred to the income statement in the same period that 

the hedged item affects profit or loss. 

Fair value hedges 

Change in accounting policy 

The adoption of the amendments to FRS 39 Financial Instruments: Recognition and Measurement - Financial 

Guarantee Contracts has resulted in the Company measuring its intra-group financial guarantees at fair value 

upon inception of the guarantees. These guarantees are subsequently measured at the higher of their initial 

fair values less cumulative amortisation and the amount that would be recognised if they were accounted 

for as contingent liabilities. Previously, the financial guarantees were accounted for as contingent liabilities 

whereby a loss was recognised only if it is probable that it would be incurred. 

Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognised 

in the income statement. The hedged item also is stated at fair value in respect of the risk being hedged, 

with any gain or loss being recognised in the income statement. 

This change in accounting policy was recognised retrospectively in accordance with the transitional provisions 

of the amendment to the accounting standard, and comparatives have been restated. This change has no 

impact to the Group’s financial statements. 

Economic hedges 

Hedge accounting is not applied to derivative instruments that economically hedge monetary assets and 

liabilities denominated in foreign currencies. Changes in the fair value of such derivatives are recognised in 

the income statement as part of foreign currency gains and losses. 

Separable embedded derivatives 

Changes in the fair value of separable embedded derivatives are recognised immediately in the income 

statement. 

The adoption of the amendments to FRS 39 Financial Instruments: Recognition and Measurement - Financial 

Guarantee Contracts resulted in: 

Company 


$’000 $’000 

Balance sheet as at 31 December 

Increase in investments in subsidiaries 309 9 

Increase in intra-group financial guarantees (99) - 

Cumulative increase in accumulated profits 210 9 

Impairment of financial assets 

The adjustment to accumulated profits at 1 January 2005 and 1 January 2006 was an increase of $9,000. 

54 

A financial asset is considered to be impaired if objective evidence indicates that one or more events have had 

a negative effect on the estimated future cash flows of that asset. 

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference 

between its carrying amount, and the present value of the estimated future cash flows discounted at the 

original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated 

by reference to its current fair value. 

Share capital 

Ordinary shares are classified as equity. 

Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a 

deduction from equity. 

55 






2.7 Leases 

When entities within the Group are lessees of a finance lease 

Leased assets in which the Group assumes substantially all the risks and rewards of ownership are classified as 

finance leases. Upon initial recognition, property, plant and equipment acquired through finance leases are 

capitalised at the lower of its fair value and the present value of the minimum lease payments. Subsequent 

to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to 

that asset. Leased assets are depreciated over the shorter of the lease term and their useful lives. Lease 

payments are apportioned between finance expense and reduction of the lease liability. The finance expense 

is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the 

remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum 

lease payments over the remaining term of the lease when the lease adjustment is confirmed. 

When entities within the Group are lessees of an operating lease 

Where the Group has the use of assets under operating leases, payments made under the leases are recognised 

in the income statement on a straight-line basis over the term of the lease. Lease incentives received are 

recognised in the income statement as an integral part of the total lease payments made. Contingent rentals 

are charged to the income statement in the accounting period in which they are incurred. 

When entities within the Group are lessors of an operating lease 

Assets leased out under operating leases are included in property, plant and equipment and are stated at cost 

less accumulated depreciation and impairment losses. Rental income (net of any incentives given to lessees) 

is recognised on a straight-line basis over the lease term. 

2.8 Impairment – non-financial assets 

The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are 

reviewed at each reporting date to determine whether there is any indication of impairment. If any such 

indication exists, the assets’ recoverable amounts are estimated. For goodwill and other intangible assets that 

have indefinite lives or that are not available for use, recoverable amount is estimated at each reporting date, 

and as and when indicators of impairment are identified. 

An impairment loss is recognised if 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 largely are independent from other assets and groups. Impairment losses are recognised in the income 

statement unless it reverses a previous revaluation, credited to equity, in which case it is charged to equity. 

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying 

amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in 

the unit (group of units) on a pro rata basis. 

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value 

less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present 

value using a pre-tax discount rate that reflects current market assessments of the time value of money and 

the risks specific to the asset or cash-generating unit. 




An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses 

recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased 

or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to 

determine the 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 or 

amortisation, if no impairment loss had been recognised. 

2.9 Completed properties held for resale 

Completed properties are those properties which are held with the intention of sale in the ordinary course of 

business and are classified as current assets. 

All completed properties held for resale are stated at the lower of cost and estimated net realisable value. 

2.10 Inventories 

Inventories comprising mainly pharmacy, hospital and surgical supplies are stated at the lower of cost and 

net realisable value. 

Cost is calculated using the weighted average cost formula and comprises all costs of purchase and other 

costs incurred in bringing the inventories to their present location and condition. Due allowance is made for 

all damaged, expired and slow moving items. 

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs 

necessary to make the sale. 

When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period 

in which the related revenue is recognised. The amount of any allowance for write-down of inventories to 

net realisable value and all losses of inventories are recognised as an expense in the period the write-down 

or loss occurs. The amount of any reversal of any allowance for write-down of inventories, arising from an 

increase in net realisable value, is recognised as a reduction in the amount of inventories recognised as an 

expense in the period in which the reversal occurs. 

2.11 Employee benefits 

Defined contribution plans 

Obligations for contributions to defined contribution pension plans are recognised as an expense in the 

income statement as incurred. 

Short-term benefits 

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the 

related service is provided. 

A provision is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing 

plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service 

provided by the employee and the obligation can be estimated reliably. 

56 

57 






2.11 Employee benefits (Cont’d) 

Share-based payments 

The share option programme allows the Group employees and non-executive directors to acquire shares of 

the Company. The fair value of options granted is recognised as an expense with a corresponding increase in 

equity. The fair value is measured at grant date and spread over the period during which the holders become 

unconditionally entitled to the options. At each balance sheet date, the Company revises its estimates of 

the number of options that are expected to become exercisable. It recognises the impact of the revision 

of original estimates in the share option expense and in a corresponding adjustment to equity over the 

remaining vesting period. 

The proceeds received net of any directly attributable transactions costs are credited to share capital when 

the options are exercised. 

2.12 Revenue recognition 

Performance of services 

Revenue from the performance of services is recognised on the completion of services rendered. 

Sale of completed properties held for resale 

Profit from the sale of completed properties is recognised when the units are sold and the corresponding 

costs are then taken to the income statement. Allowance is made for anticipated losses if and when they 

can be determined. 

Rental income 




2.13 Finance costs 

All borrowing costs are recognised in the income statement using the effective interest method, except to the 

extent that they are capitalised as being directly attributable to the acquisition, construction or production of 

an asset which necessarily takes a substantial period of time to be prepared for its intended use or sale. 

2.14 Income tax expense 

Income tax expense comprises current and deferred tax. Income tax expense is recognised in the income 

statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised 

in equity. 

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or 

substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. 

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the 

carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation 

purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of 

goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and 

that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries and 

joint ventures to the extent that they probably will not reverse in the foreseeable future. Deferred tax is 

measured at the tax rates that are expected to be applied to the temporary differences when they reverse, 

based on the laws that have been enacted or substantively enacted by the reporting date. 

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available 

against which temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date 

and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. 

Rental income receivable under operating leases is recognised in the income statement on a straight-line basis 

over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental 

income to be received. Contingent rentals are recognised as income in the accounting period in which they 

are earned. 

Dividends 

Dividend income is recognised on the date that the shareholder’s right to receive payment is established, 

which in the case of quoted securities is the ex-dividend date. 

Interest income 

Interest income from bank deposits, commercial papers and notes is recognised as it accrues, using the 

effective interest method. 

58 

59 







3 Property, plant and equipment – Group 

Note 

Hospital land 

and buildings 

Leasehold 

office 

premises and 

commercial 

Hospital 

and medical 

equipment 

and furniture, 

Freehold Leasehold 

Construction 

in progress 

Freehold 

medical 

centre suites buildings 

Renovation 

and 

improvements 

fittings and 

equipment 

Motor 

vehicles Total 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

Cost 

At 1 January 2005 (restated) 202,276 347,446 2,438 7,828 5,018 9,968 239,258 3,659 817,891 

Additions 756 135 9,949 – – 3,301 27,397 1,634 43,172 

Assets acquired in business combinations 27 80,695 101,472 5,429 – – 11,873 114,902 4,086 318,457 

Assets disposed on disposal of subsidiaries 27 – – – – – – (318) (499) (817) 

Disposals/Write off (1,772) (11,254) – – (294) (97) (13,715) (1,686) (28,818) 

Transfers 22 1,532 (2,983) – – (101) 1,530 – – 

Translation differences on consolidation (599) 1,299 (34) – (568) (162) 1,189 (27) 1,098 

At 31 December 2005 (restated) 281,378 440,630 14,799 7,828 4,156 24,782 370,243 7,167 1,150,983 

Additions 452 98 29,114 – – 6,331 30,209 981 67,185 

Effects of proportionate consolidation (50,105) (59,404) (5,226) – – (11,454) (74,654) (2,420) (203,263) 

Disposals/Write off (329) (2,242) – – – (456) (16,180) (1,162) (20,369) 

Transfers 1,828 3,321 (13,570) – – 206 8,237 (22) – 

Translation differences on consolidation (1,093) (4,816) (107) – 496 (146) (5,352) (76) (11,094) 

At 31 December 2006 232,131 377,587 25,010 7,828 4,652 19,263 312,503 4,468 983,442 

Accumulated depreciation and impairment losses 

At 1 January 2005 (restated) 23,444 62,504 – 457 485 5,634 147,941 2,388 242,853 

Depreciation charge for the year 2,672 7,114 – 72 105 1,550 24,894 614 37,021 

Impairment losses for the year – – – – – – 89 – 89 

Assets acquired in business combinations 27 6,889 5,974 – – – 4,731 73,254 2,501 93,349 

Assets disposed on disposal of subsidiaries 27 – – – – – – (271) (177) (448) 

Disposals/Write off (93) (10,910) – – – (51) (12,413) (1,265) (24,732) 

Translation differences on consolidation (36) (126) – – (1) (63) (1,016) (30) (1,272) 

At 31 December 2005 (restated) 32,876 64,556 – 529 589 11,801 232,478 4,031 346,860 

Depreciation charge for the year 3,586 9,095 – 72 99 1,922 32,732 963 48,469 

Impairment losses for the year – – – – – – 202 – 202 

Effects of proportionate consolidation (4,985) (4,647) – – – (3,287) (49,534) (1,388) (63,841) 

Disposals/Write off (5) (896) – – – (439) (14,880) (929) (17,149) 

Translation differences on consolidation (173) (126) – – (3) (52) (1,081) (27) (1,462) 

At 31 December 2006 31,299 67,982 – 601 685 9,945 199,917 2,650 313,079 

Carrying amount 

At 1 January 2005 (restated) 178,832 284,942 2,438 7,371 4,533 4,334 91,317 1,271 575,038 

At 31 December 2005 (restated) 248,502 376,074 14,799 7,299 3,567 12,981 137,765 3,136 804,123 

At 31 December 2006 200,832 309,605 25,010 7,227 3,967 9,318 112,586 1,818 670,363 

60 

61 





3 Property, plant and equipment – Group (Cont’d) 

Property, plant and equipment with carrying value amounting to $76,842,000 (2005: $154,683,000) have 

been mortgaged to financial institutions for bonds and credit facilities granted to certain joint ventures. 

The carrying amount of property, plant and equipment includes amounts totalling $2,251,000 (2005: 

$7,273,000) in respect of assets held under finance leases. 

4 Intangible assets – Group 

Cost 

Note 

Goodwill on Other 

consolidation intangibles Total 

$’000 $’000 $’000 

At 1 January 2005 (restated) 31,395 – 31,395 

Acquisition through business combination 27 59,662 96,639 156,301 

Goodwill written off on dilution of interests in 

subsidiaries (1,158) – (1,158) 

Translation differences on consolidation (804) (1,301) (2,105) 

At 31 December 2005 (restated) 89,095 95,338 184,433 

Acquisition of minority interests 33,653 – 33,653 

Effects of proportionate consolidation – (56,578) (56,578) 

Translation differences on consolidation (630) (1,040) (1,670) 

At 31 December 2006 122,118 37,720 159,838 

Accumulated amortisation and 

impairment losses 

At 1 January 2005 – – – 

Amortisation charge for the year – 3,499 3,499 

Translation differences on consolidation – (1) (1) 

At 31 December 2005 – 3,498 3,498 

Amortisation charge for the year – 11,593 11,593 

Effects of proportionate consolidation – (8,133) (8,133) 

Translation differences on consolidation – (38) (38) 

At 31 December 2006 – 6,920 6,920 

Carrying amount 

At 1 January 2005 (restated) 31,395 – 31,395 

At 31 December 2005 (restated) 89,095 91,840 180,935 

At 31 December 2006 122,118 30,800 152,918 



4 Intangible assets – Group (Cont’d) 

Impairment test for cash-generating units containing goodwill 

For the purpose of impairment testing, goodwill is allocated to the Group’s operating divisions which represent 

the lowest level within the Group at which the goodwill is monitored for internal management purposes. 

The aggregate carrying amounts of goodwill allocated to each unit identified according to business segment 

are as follows: 


$’000 $’000 

(restated) 

Healthcare Services 31,395 31,395 

Unallocated 90,723 57,700 

122,118 89,095 

The recoverable amount of a cash-generating unit was based on its value in use. Value in use was determined 

by discounting the future cash flows generated from the continuing use of the unit and was based on the 

following key assumptions: 

• Cash flows were projected based on actual operating results and the five-year business plan. 

• The anticipated annual revenue growth included in the cash flow projections was 10% to 14% for the 

years 2007 to 2011. 

• A pre-tax discount rate of 9.4% to 11% was applied in determining the recoverable amount of the 

units. The discount rate was estimated based on the weighted average cost of capital of the entity to 

which the units belong. 

• The terminal value was estimated using the perpetuity growth model, with a growth rate to perpetuity 

of 5% to 6.5% applied to steady-state estimated earnings at the end of the explicit forecast period. 

The values assigned to the key assumptions represent management’s assessment of future trends in the 

healthcare industry and are based on both external sources and internal sources (historical data). 

5 Interests in subsidiaries – Company 


$’000 $’000 

(restated) 

Unquoted equity investments, at cost 754,719 754,419 

Amounts due from subsidiaries (non-trade) 440,260 413,861 

Allowance for impairment loss (38,726) (28,436) 

401,534 385,425 

Amounts due to subsidiaries (non-trade) (379,014) (449,698) 

777,239 690,146 

62 

63 





5 Interests in subsidiaries – Company (Cont’d) 

The amounts due from subsidiaries are unsecured and settlement is neither planned nor likely to occur in 

the foreseeable future. As these amounts are, in substance, a part of the Company’s net investment in the 

subsidiaries, they are stated at cost less accumulated impairment. 

The amounts due to subsidiaries are unsecured and settlement is neither planned nor likely to occur in 

the foreseeable future. As these amounts are, in substance, a return of capital by the subsidiaries to the 

Company, they are stated at cost. 

The amounts due from subsidiaries consist of $74,915,000 (2005: $81,623,000) loans and $365,345,000 

(2005: $332,238,000) loans which bear interest at between 1% to 4.5075% (2005: 1% to 3.1525%) per 

annum. 

The amounts due to subsidiaries consist of $379,014,000 (2005: $448,755,000) interest-free loans and 

$nil (2005: $943,000) loans which bear interest at nil% (2005: 1%) per annum. 

Effective interest rates and repricing analysis 

Effective 

interest 

rate 

Within 

1 year 

1 to 5 

years 

After 

5 years Total 

% $’000 $’000 $’000 $’000 


Amounts due from subsidiaries 1 to 4.5075 65,345 300,000 – 365,345 

2005 

Amounts due from subsidiaries 1 to 3.1525 182,238 150,000 – 332,238 

Amounts due to subsidiaries 1 943 – – 943 




Details of subsidiaries are as follows: 

Place of 

incorporation Equity interest 

Name of subsidiary Principal activities and business 2006 2005 

% % 

Parkway Properties Pte Ltd 

and its subsidiary: 

Parkway Promotions Pte Ltd 

M & P Investments Pte Ltd 


Investment holding Singapore 100 100 

Promoters and organisers of 

conferences and seminars 

Investment trading and 

property development 

Singapore 100 100 


S.P.I. Pte Ltd Investment trading Singapore 100 100 

Weian Investments Pte Ltd 

Commenced liquidation 

during the year 


Westront Pte Ltd Investment holding Singapore 100 100 

Parkway Hospitals Singapore 

Pte Ltd 

Parkway Group Healthcare 

Pte Ltd and its subsidiaries: 

Private hospitals ownership 

and management 



iXchange Pte Ltd 

Gleneagles Medical 

Global Care Pte Ltd 

Agent and administrator for 

managed care and related 

services 





Parkway-Healthcare 

(Mauritius) Ltd 

Investment holding Mauritius 100 100 

Shenton Insurance Pte. Ltd. 

Underwrite accident and 

healthcare insurance policies 


Mount Elizabeth Healthcare 

Holdings Ltd and its 

subsidiaries: 


Mount Elizabeth Medical 

Holdings Ltd and 

its subsidiaries: 

Investment holding and rental 

of medical suites and retail 

units 


East Shore Medical 

Holdings Pte Ltd 


64 

MENA Services Pte Ltd Nursing agency Singapore 100 100 

65 






Place of 



% % 

Mount Elizabeth 

Ophthalmic Investments 

Pte Ltd 

Charter Asia Behavioural 

Health Services Pte Ltd 

Mount Elizabeth Healthcare 

Services Sdn Bhd and its 

subsidiary: 

Rental of medical equipment 

used for eye operations 

Singapore 66.48 66.48 

Liquidated during the year Singapore – 100 

Provision of laboratory services 

to hospitals and clinics 

Malaysia 100 100 

Orifolio Options Sdn Bhd Investment holding Malaysia 100 100 

Shanghai Gleneagles International 

Medical and Surgical Center 

Parkway Healthtech Investments 

Pte Ltd and its subsidiaries: 

Goldlink Investments 

Pte. Ltd. and its subsidiaries: 

Medi-Rad Associates Ltd 

and its subsidiaries: 

Provision of medical and 

healthcare services 

People’s Republic 

of China 

70 – 



Operation of radiology clinics Singapore 100 100 




Place of 



% % 

C-Med Pte Ltd 

Gleneagles CRC Pte Ltd 


Gleneagles CRC (Thailand) 

Company Limited 



Operation of a clinical 

research centre 

To conduct global and local 

clinical trials 

Gleneagles CRC (China) Pte Ltd. To conduct global and local 


Gleneagles Clinical 

Operation of a clinical 

Research International Pte. Ltd. research centre 

Gleneagles CRC Pty Ltd 

Gleneagles International 

Pte. Ltd. and its subsidiaries: 

Gleneagles JPMC Sdn Bhd 

To conduct global and local 




Thailand 100 100 


of China 

100 100 


Australia 100 – 


Management and operation 

of a cardiac and cardiothoracic 

care centre 

Brunei 

Darussalam 

75 75 

Khim Medicare Private 

Limited 

Liquidated during the year Singapore – 75.51 

Gleneagles (Malaysia) Sdn 

Bhd and its subsidiary: 

Investment holding Malaysia 100 100 

Radiology Consultants Pte 

Ltd 

Radiology consultancy and 

interpretative services 


Pulau Pinang Clinic Sdn. Bhd. 

Private hospital ownership and 

management 


66 

The Diagnostic X-Ray 

Centre Pte Ltd 

Drayson Investments 

Pte. Ltd. and its subsidiary: 

Parkway Laboratory 

Services Ltd 

Gleneagles Medical Holdings 

Limited and its subsidiaries: 

Gleneagles Medical Centre Ltd 

Gleneagles Radiology 

Consultants Pte Ltd 



Provision of comprehensive 

diagnostic laboratory services 



Medical centre development, 

ownership and management 

Radiology consultancy and 

interpretative services 



Gleneagles Management 

Services Pte Ltd and 

its subsidiary: 

Gleneagles Heritage 

Hospital Management Limited 

Provision of advisory, 

administrative, management 

and consultancy services to 

healthcare facilities 


Dormant British Virgin Islands 75 75 

Gleneagles Pharmacy Pte Ltd Medical centre ownership Singapore 100 100 

Gleneagles Development 

Pte Ltd 

Parkway Informatics Pte Ltd 

Gleneagles Hospital (UK) 

Limited and its subsidiaries: 

Developing and managing 

turnkey hospital projects 



Investment holding 



United 

Kingdom 

65 65 

67 






Place of 



% % 




Place of 



% % 

Cavendish Clinic Limited Dormant United 

Kingdom 

The Heart Hospital Limited 

Under company voluntary 

arrangement 

United 

Kingdom 

100 100 

100 100 

Shenton Medical 

Holdings Pte Ltd 



Shenton Medical Centre Pte Ltd Dormant Singapore 100 100 

The Heart Hospital 

Properties Limited 

Dormant 

United 

Kingdom 

Wholebond Limited Dormant United 

Kingdom 

Merlion Healthcare Limited Dormant United 

Kingdom 

Gleneagles Technologies 

Services Pte Ltd 

Ko, Djeng Gleneagles Pte Ltd 

Parkway Shenton Pte Ltd 


GMMC Maritime 

Medical Centre Pte. Ltd. 

To provide consultancy 

services, perform equipment 

planning, procurement, 

testing and commissioning, 

and manage a healthcare 

facility 

To carry on the practice 

of dental surgeons and to 

operate dental clinics 

Investment holding and 

operation of a network 

of clinics and provision of 

comprehensive medical and 

surgical advisory services 

100 100 

100 100 

100 100 




Dormant Singapore 100 100 

SMG Medical Group Pte. Ltd. Dormant Singapore 100 100 

EHS Health Screeners Pte. Ltd. Dormant Singapore 100 100 

Swiss Zone Sdn Bhd and its 

subsidiaries: 

Pantai Holdings Berhad and 


Pantai Group Resources Sdn. 

Bhd. and its subsidiaries: 

Pantai Hospitals Sdn. Bhd. 


Pantai Medical Centre Sdn. 


Angiography Sdn. Bhd. 

Magnetom Imaging Sdn. 

Bhd. 

Investment holding Malaysia 100 100 

Investment holding Malaysia Note 32 28.52^ 

Investment holding Malaysia Note 32 100 


provision of management 

and consultation services to 

hospitals and medical centres 

Provision of medical, surgical 

and hospital services 

Provision of cardiac 

catherisation services 

Provision of medical 

diagnostic services and other 

related ventures 

Malaysia Note 32 100 


Malaysia Note 32 66.8 


Gleneagles Maritime Medical 

Centre (China) Limited 

Dormant Hong Kong 100 100 

PMC Radio-Surgery Sdn. 

Bhd. 

Provision of radiotherapy 

facilities 


Nippon Medical Care Pte Ltd Operation of clinics Singapore 70 70 

Ganda Gema Sdn. Bhd. Dormant Malaysia Note 32 100 

Parkway Shenton 

International Holdings 

Pte. Ltd. and its subsidiary: 

Parkway Shenton Vietnam 

Limited 


Operation of primary 

healthcare centre 

Vietnam 100 100 

Cheras Medical Centre Sdn. 

Bhd. 

Pantai Klang Specialist 

Medical Centre Sdn. Bhd. 







68 

Shenton Family Medical 

Clinics Pte Ltd 

To provide, establish and carry 

on the business of clinics 


69 






Place of 



% % 

Syarikat Tunas Pantai Sdn. 

Bhd. 

Paloh Medical Centre Sdn. 

Bhd. 

Hospital Pantai Ayer Keroh 

Sdn. Bhd. and its 

subsidiaries: 










Mikrogema Sdn. Bhd. Dormant Malaysia Note 32 100 

HPAK Lithotripsy Services 

Sdn. Bhd. 

Provision of lithotripter 

services 





Place of 



% % 

Pantai Fomema & 

Systems Sdn. Bhd. and its 

subsidiary: 

Fomema Sdn. Bhd. 

Pengkalan Usaha (M) Sdn 

Bhd. 


supervision of medical 

examination of foreign 

workers in Malaysia 

Monitoring of medical 



Supervision of medical 






Healthpac Industries Sdn. Bhd.Dormant Malaysia Note 32 100 

HPAK Cancer Centre Sdn. 

Bhd. 

Provision of services for cancer 

diseases 


Conso-Asli Sdn. Bhd. 


Investment holding Malaysia Note 32 100 

Hospital Pantai Indah 

Sdn. Bhd. and its subsidiary: 




HPI Dialysis Centre Sdn. Bhd. Dormant Malaysia Note 32 100 

PT. Pantai Healthcare 

Consulting 

Pantai Support Services Sdn. 


Provision of healthcare 

consulting services 




healthcare related service 

sectors 

Indonesia Note 32 50 ## 


Kuala Lumpur Medical 

Centre (Asia Pacific) Sdn. 

Bhd. 

Cyberwide Finance Limited 


Maxgold Investments 

Group Limited and its 

subsidiary: 

Glossmere Investments 

Limited 

Dormant Malaysia Note 32 51 




British Virgin 

Islands 


Islands 


Islands 

Note 32 100 

Note 32 100 

Note 32 100 

Pantai Premier Pathology 

Sdn. Bhd. 

Provision of medical 

laboratory services 


Pantai Management 

Resources Sdn. Bhd. 

Provision of administration 

support, training, research 

and development services 


Pantai Education Sdn. Bhd. 

Provision of educational 

programs and training courses 

for healthcare and related 

fields 


Credit Enterprise Sdn. Bhd. Dormant Malaysia Note 32 100 

Seraya Sensa Sdn. Bhd. Investment holding Malaysia Note 32 100 

70 

Pantai Columbia Sdn. Bhd. Dormant Malaysia Note 32 100 

Golden Home Care Sdn. Bhd. Dormant Malaysia Note 32 100 

Pantai Integrated Rehab 

Services Sdn. Bhd. 

Provision of rehabilitation 

services 


Pantai Medivest Lanka 

(Private) Limited 


Consulting 

Pantai Medivest Sdn. Bhd. 


Dormant Sri Lanka Note 32 50 # 



Provision of clinical waste 

management, cleaning and 

maintenance services for 

hospitals 

Indonesia Note 32 50 ## 


71 








Place of 



% % 

6 Interests in associates 


$’000 

Group 

2005 

$’000 

(restated) 


$’000 

Company 

2005 

$’000 

Aroma Laundry & Dry 

Cleaners Sdn. Bhd. and 


Provision of laundry and dry 

cleaning services 


Zoom Valet Services Sdn. Bhd. Dormant Malaysia Note 32 100 

Mediwash Sdn. Bhd. Dormant Malaysia Note 32 100 



Dormant Sri Lanka Note 32 50 # 

Unquoted equity shares, at cost – – 64 64 

Share of net assets 9,482 46,136 – – 

9,482 46,136 64 64 

Amounts due from associates (mainly non-trade) 9,623 12,822 – – 

Allowance for impairment loss (3,179) (4,078) – – 

6,444 8,744 – – 

Amounts due to associates (mainly non-trade) (4,804) (4,913) (4,367) (4,393) 

11,112 49,967 (4,303) (4,329) 

Group 

Pantai Medivest (India) 

Private Limited 

Dormant India Note 32 100 

The amounts due from associates are unsecured and interest-free, and settlement is neither planned nor likely 

to occur in the foreseeable future. As these amounts are, in substance, a part of the Group’s net investment 

in the associates, they are stated at cost less accumulated impairment loss. 

^ 

Notwithstanding that the equity interest is not more than 50%, for the purpose of the consolidated financial statements, the 

Company has accounted for Pantai Holdings Berhad as a subsidiary for the year ended 31 December 2005 in accordance with 

FRS 27, on the basis that, inter alia, the Company had board control of the latter. 

# Accounted for as a subsidiary as 50% of Pantai Medivest Lanka (Private) Limited is each held by Pantai Group Resources Sdn. 

Bhd. and Pantai Medivest Sdn. Bhd. 

## Accounted for as a subsidiary as 50% of PT. Pantai Healthcare Consulting is each held by Pantai Hospitals Sdn. Bhd. and Pantai 

Group Resources Sdn. Bhd. 

KPMG Singapore are the auditors of all Singapore-incorporated subsidiaries. Other member firms of KPMG 

International are auditors of significant foreign-incorporated subsidiaries. For this purpose, a subsidiary is 

considered significant as defined under the Singapore Exchange Securities Trading Limited (SGX-ST) Listing 

Manual if its net tangible assets represent 20% or more of the Group’s consolidated net tangible assets, or if 

its pre-tax profits account for 20% or more of the Group’s consolidated pre-tax profits. 

The amounts due to associates include amounts denominated primarily in Australian dollars which are 

unsecured and interest-free, and settlement is neither planned nor likely to occur in the foreseeable future. 

As these amounts are, in substance, a return of capital by the associates to the Group, they are stated at 

cost. 

Details of associates are set out in note 31. 

The financial information of the associates is as follows: 


$’000 

2005 

$’000 

(restated) 

Assets and liabilities 

Non-current assets 70,735 304,587 

Current assets 29,782 264,602 

Total assets 100,517 569,189 

Current liabilities (35,037) (189,068) 

Non-current liabilities (28,831) (53) 

Total liabilities (68,868) (189,121) 

Results 

Revenue 61,388 110,047 

Expenses (56,552) (83,291) 

Profit after taxation 4,836 26,756 

The summarised financial information relating to associates is not adjusted for the percentage of ownership 

held by the Group. 

72 

73 





6 Interests in associates (Cont’d) 

Company 

The amount due to an associate denominated in Australian dollars is unsecured and interest-free, and 

settlement is neither planned nor likely to occur in the foreseeable future. As the amount is, in substance, a 

return of capital by the associate to the Company, it is stated at cost. 

7 Balances with joint ventures and joint venture partners – Group 

Amount due from joint ventures 

The amounts due from joint ventures are unsecured and interest-free, and settlement is neither planned 

nor likely to occur in the forseeable future. As these amounts are, in substance, a part of the Group’s net 

investment in these joint ventures, they are stated at cost less accumulated impairment loss. 

Amount due to joint venture partners 

The non-current amounts due to joint venture partners are unsecured, interest-free and settlement is neither 

planned nor likely to occur in the foreseeable future. As these amounts are, in substance, a part of the joint 

venture partners’ net investments in the joint ventures, they are stated at cost. 

The current amounts due to joint venture partners are unsecured and are repayable with the next twelve 

months. Interest is charged at 4.5% per annum. 

Details of joint ventures are set out in note 32. 

The following summarised financial information of the joint ventures represents the Group’s share. 


$’000 

2005 

$’000 

(restated) 


Non-current assets 161,559 36,500 

Current assets 57,262 6,082 

Total assets 218,821 42,582 

Current liabilities (79,268) (6,584) 

Non-current liabilities (14,603) (33,071) 

Total liabilities (93,871) (39,655) 

Results 

Revenue 47,433 14,645 

Expenses (46,187) (13,718) 

Profit after taxation 1,246 927 

Capital commitments not provided for in the financial statements: 

– Amount authorised and contracted for 5,100 5,443 

– Amount authorised but not contracted for 4,352 67 

9,452 5,510 



8 Other financial assets 

Group 

Company 

2006 2005 2006 2005 

$’000 $’000 $’000 $’000 

Club memberships 138 122 – – 

Non-current investments: 

Available-for-sale quoted equity securities 49,030 28,726 – – 

Available-for-sale unquoted equity securities 4,785 4,566 1,013 1,013 

Impairment losses (4,530) (4,530) (1,013) (1,013) 

255 36 – – 

49,423 28,884 – – 

Group 


$’000 $’000 

Current investments: 

Available-for-sale quoted equity securities – 39 

Available-for-sale unquoted other investments 520 – 

Quoted equity securities held for trading – 181 

520 220 

Non-current investments in available-for-sale unquoted equity securities are stated at cost as their fair values 

cannot be reliably measured in view that they do not have a quoted market price in an active market, the 

range of reasonable fair value estimates is significant and the probabilities of the various estimates cannot be 

reasonably assessed. 

Non-current investments in available-for-sale quoted equity securities include a 22% effective equity interest 

held in Auric Pacific Group Ltd with a carrying value of $31,067,000 (2005: $28,043,000). The investment 

has been accounted for as a non-current investment as the Group does not have significant influence over 

the financial and operational policies of the investee. 

9 Notes receivables – Group and Company 

Notes receivables relate to the consideration receivable in respect of the Group’s divestment in an associate in 

prior years. The notes are denominated in Hong Kong dollars and are unsecured and bear interest at a fixed 

rate of 1% (2005: 1%) per annum. The periods in which they mature are as follows: 

Effective 

interest rate 

Within 1 

year 

1 to 5 

years 

After 

5 years Total 

% $’000 $’000 $’000 $’000 


Non-current 4.38 – 27,967 – 27,967 

Current 3.82 5,601 – – 5,601 

2005 

Non-current 3.82 – 35,463 – 35,463 

Current 3.07 6,021 – – 6,021 

74 

75 





10 Deferred tax (assets)/liabilities 

Movements in deferred tax assets and liabilities (prior to offsetting of balances) during the year are as 

follows: 

Group 

At 

1 Jan 2005 

Effects of 

adopting 

FRS 39 

Acquisition 

of 

subsidiaries 

(Note 27) 

Disposal of 

subsidiaries 

(Note 27) 

Charged/ 

(Credited) 

to income 

statement 

Translation 

differences 

At 

31 Dec 2005 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 

Deferred tax assets 

Trade receivables (10) – (270) – (275) 10 (545) 

Other allowances (82) – – – 29 – (53) 

Notes receivables – (421) – – 209 – (212) 

Tax value of unutilised 

tax losses carried 

forward – – (3,169) – 1,312 116 (1,741) 

Tax value of 

unabsorbed 

investment 

allowances carried 

forward (250) – – – 250 – – 

(342) (421) (3,439) – 1,525 126 (2,551) 

Deferred tax 

liabilities 

Property, plant and 

equipment 28,277 – 8,722 (9) (445) (266) 36,279 

Interest receivables 35 – – – (35) – – 

28,312 – 8,722 (9) (480) (266) 36,279 

Net deferred tax 

liabilities 27,970 (421) 5,283 (9) 1,045 (140) 33,728 



10 Deferred tax (assets)/liabilities (Cont’d) 

Group 

Charged/ 

(Credited) 

to income 

At 

1 Jan 2006 

Effects of 

proportionate 

consolidation statement 

Translation 

differences 

$’000 $’000 $’000 $’000 $’000 

At 


Deferred tax assets 

Trade receivables (545) 103 305 1 (136) 

Other allowances (53) – 53 – – 

Notes receivables (212) – 205 – (7) 

Tax value of unutilised tax losses 

carried forward (1,741) 1,004 261 20 (456) 

Other provisions – – (78) 3 (75) 

Discount on bonds – – (529) – (529) 

(2,551) 1,107 217 24 (1,203) 

Deferred tax liabilities 

Property, plant and equipment 36,279 (3,741) 601 (238) 32,901 

Net deferred tax liabilities 33,728 (2,634) 818 (214) 31,698 

Company At 1 Jan 2005 

Effects of 

adopting FRS 39 

Charged/(Credited) 

to income 

statement At 31 Dec 2005 

$’000 $’000 $’000 $’000 

Deferred tax asset 

Notes receivables – (421) 209 (212) 

Deferred tax liability 

Interest receivables 35 – (35) – 

Net deferred tax liabilities/ 

(assets) 35 (421) 174 (212) 

76 

77 





10 Deferred tax (assets)/liabilities (Cont’d) 

Company At 1 Jan 2006 

Charged 

to income statement At 31 Dec 2006 

$’000 $’000 $’000 

Deferred tax asset 

Notes receivables (212) 205 (7) 

Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax 

assets against current tax liabilities and when the deferred taxes relate to the same taxation authority. The 

amounts determined after appropriate offsetting are included in the balance sheet as follows: 

Group 


$’000 $’000 

Deferred tax assets (1,023) (1,813) 

Deferred tax liabilities 32,721 35,541 

11 Completed properties held for resale – Group 


$’000 $’000 

Completed properties held for resale, at cost 806 806 

Allowance for foreseeable losses (227) (227) 

579 579 

12 Inventories – Group 


$’000 $’000 

(restated) 

Inventories 16,771 17,795 

Allowance for inventory obsolescence (397) (347) 

16,374 17,448 



13 Trade receivables – Group 


$’000 

2005 

$’000 

(restated) 

Trade receivables 98,874 95,705 

Allowance for impairment loss (12,171) (18,250) 

86,703 77,455 

Receivables denominated in currencies other than the Company’s functional currency comprise trade 

receivables denominated in Malaysia Ringgit and various other foreign currencies amounting to $27,913,000 

(2005: $48,871,000) and $7,783,000 (2005: $8,485,000) respectively. 

The Group’s primary exposure to credit risk arises through its trade receivables. Concentration of credit risk 

relating to trade receivables is limited and the Group’s historical experience in the collection of accounts 

receivable falls within the recorded allowances. Due to these factors, management believes that no additional 

credit risk beyond amounts provided for collection losses is inherent in the Group’s trade receivables. 

14 Other receivables, deposits and prepayments 


$’000 

Group 

2005 

$’000 

(restated) 


$’000 

Company 

2005 

$’000 

Interest receivables 179 269 163 203 

Prepayments 5,512 6,452 5 216 

Sundry deposits 4,405 5,224 1 2 

10,096 11,945 169 421 

Other receivables 8,410 13,467 3 16 

Allowance for impairment loss (652) (250) – – 

7,758 13,217 3 16 

17,854 25,162 172 437 

Other receivables are unsecured and interest-free, and are repayable within the next twelve months. 

Inventories with carrying value of $324,000 (2005: $844,000) have been pledged as security for bank 

overdraft facilities granted to certain joint ventures. 

78 

79 





15 Cash and cash equivalents 

Group 

Company 


$’000 $’000 $’000 $’000 

(restated) 

Fixed deposits with financial institutions 61,640 54,236 3,182 3,215 

Cash and bank balances 31,896 53,773 4,856 5,477 

93,536 108,009 8,038 8,692 

Bank overdrafts: 

- secured (464) (2,289) 

- unsecured (202) (1,316) 

(666) (3,605) 

Fixed deposits pledged (17,639) (13,554) 

Cash and cash equivalents in Consolidated 

Cash Flow Statement 75,231 90,850 

Fixed deposits pledged comprise sinking fund for the redemption of bonds and those pledged to banks and 

finance companies for credit facilities granted to certain joint ventures. 



16 Share capital (Cont’d) 

On the date of commencement of the Companies (Amendment) Act 2005 on 30 January 2006: 

(a) 

(b) 

(c) 

the concept of authorised share capital was abolished; 

shares of the Company ceased to have par value; and 

the amount standing to the credit of the Company’s share premium account became part of the 

Company’s share capital. 

Prior to this, the authorised share capital of the Company was $500,000,000, comprising 2,000,000,000 

ordinary shares of $0.25 each. 

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled 

to one vote per share at meetings of the Company. All shares rank equally with regard to the Company’s 

residual assets. 

During the financial year, the Company issued the following ordinary shares pursuant to the Parkway Share 

Option Scheme 2001: 

(i) 

(ii) 

735,500 ordinary shares at $0.865 per share; 

375,000 ordinary shares at $0.94 per share; 

The bank overdrafts are secured by certain property, plant and equipment and other assets as disclosed in 

note 19(d). 

The effective interest rates per annum relating to fixed deposits with financial institutions and bank overdrafts 

at the balance sheet date are as follows: 

(iii) 

(iv) 

(v) 

1,940,750 ordinary shares at $0.835 per share and 25,000 ordinary shares at $0.785* per share; 

462,000 ordinary shares at $1.4267 per share; and 

12,500 ordinary shares at $2.053 per share and 5,000 ordinary shares at $2.003* per share. 

Group 

Company 


% % % % 

Fixed deposits with financial institutions 2.81 to 5.60 1.44 to 4.00 2.875 to 4.78 3.00 to 4.00 

Bank overdrafts 7.00 to 8.25 7.25 to 7.75 – – 

Interest rates reprice at intervals of one, three or six months. 

16 Share capital 

Group and Company 


No. of No. of 

shares shares 

Issued and fully-paid: 

At 1 January 727,013,212 722,911,462 

Issue of shares under share option scheme 3,555,750 4,101,750 

Rights issue 36,522,948 – 

At 31 December 767,091,910 727,013,212 

* Exercise price after $0.05 downward adjustment for the rights issue 

On 28 September 2006, the Company announced a special interim cash dividend of 11.25 cents less tax of 

20% per ordinary share and a proposed renounceable non-underwritten rights issue of new ordinary shares 

at an issue price of $1.80 for each rights share, on the basis of one rights share for every twenty ordinary 

shares held. Shareholders may elect to use all or part of the special dividend to pay for the rights shares. On 

12 December 2006, the Company allotted and issued 36,522,948 rights shares for valid acceptances received 

and credited share capital with $65,741,000. 

17 Reserves 

The capital reserves comprise discretionary reserves that has been set aside by the Directors in respect of 

premium on bonds previously issued, net of issuing expenses. 

The exchange fluctuation reserves of the Group comprise foreign exchange differences arising from the 

translation of the financial statements of foreign operations whose functional currencies are different from 

the functional currency of the Company and the exchange differences on monetary items which form part of 

the Group’s net investment in the foreign operation, provided certain conditions are met. 

The hedge reserve comprises the effective portion of the cumulative net change in the fair value of cash flow 

hedging instruments relating to hedged transactions that have not yet occurred. 

The fair value reserve includes the cumulative net change in the fair value of available-for-sale investments 

until the investment is derecognised. 

80 

The share option reserve comprises the cumulative value of employee services received for the issue of share 

options. 

81 





18 Employee benefits 

Employee benefits in the financial statements represent liabilities for short-term accumulating compensated 

absences. 

In addition, certain employees are eligible to participate in the following equity compensation benefits: 

Parkway Share Option Scheme 2001 (Parkway Scheme 2001) 

The Parkway Scheme 2001 was approved by the shareholders of the Company at an Extraordinary General 

Meeting held on 18 January 2001. Details of the Parkway Scheme 2001 and amendments effected by 

a resolution passed at the Extraordinary General Meeting of the Company held on 4 July 2001 were set 

out in the Directors’ Report for the year ended 31 December 2001. Pursuant to an Extraordinary General 

Meeting held on 2 November 2006, the Parkway Scheme 2001 was further amended to, inter alia, take into 

account the Companies (Amendment) Act 2005 which came into operation on 30 January 2006, including 

to provide for the possible use of treasury shares in the scheme, and to allow the share options to be granted 

at a discount, as well as to provide greater flexiblilty in the determination of the vesting period of the share 

options, which shall be on or after the first anniversary or second anniversary (as the case may be) of the date 

on which the option is granted. 

The Parkway Scheme 2001 was previously administered by the Company’s Share Option Scheme Committee. 

This Committee was dissolved on 9 November 2006 and the responsibility for the administration of the 

Parkway Scheme 2001 was assigned to the Remuneration Committee. The Remuneration Committee 

comprises 4 directors, namely, Timothy David Dattels, Richard Seow Yung Liang, Sunil Chandiramani and 

Ashish Jaiprakash Shastry. 

Information regarding the Parkway Scheme 2001 is set out below: 

Market Price Options 

(i) 

(ii) 

The exercise price of the option is determined at the average of the last dealt price of the Company’s 

shares on the Singapore Exchange Securities Trading Limited (SGX-ST) prevailing on the three consecutive 

trading days immediately preceding the date of grant of such options (the Market Price). 

The options shall be subject to such conditions (including any vesting schedule) as may be imposed 

by the Committee and shall be exercisable, in whole or in part, during the period commencing one 

year after the grant date and expiring on the fifth anniversary of the grant date unless they have been 

cancelled or have lapsed prior to the date. 

Incentive Options 

(i) 

(ii) 

The exercise price of the option is determined by the Remuneration Committee at a discount to the 

Market Price, provided that the maximum discount does not exceed 20% of the Market Price. 

The options shall be subject to such conditions (including any vesting schedule) as may be imposed by 

the Committee and shall be exercisable, in whole or in part, during the period commencing after the 

second anniversary of the grant date and expiring on the fifth anniversary of the grant date unless they 

have been cancelled or have lapsed prior to that date. 



18 Employee benefits (Cont’d) 

Movements in the number of share options and their related weighted average exercise prices are as 

follows: 

Weighted 

average 

exercise 

price 

Weighted 

average 

exercise 

price 

No. of 

options 

No. of 

options 

2006 2006 2005 2005 

$ $ 

At 1 January 1.5818 13,109,750 0.9932 10,922,000 

Granted and accepted 2.3519 6,386,000 2.0679 6,865,000 

Exercised 0.9347 (3,555,750) 0.8909 (4,101,750) 

Cancelled 1.9452 (749,500) 1.1344 (575,500) 

At 31 December 1.9889 15,190,500 1.5818 13,109,750 

Exercisable at 31 December 1.5251 3,413,625 0.9629 3,425,250 

Options exercised during the year resulted in 3,555,750 (2005: 4,101,750) new ordinary shares being issued 

at a weighted average price of $0.9347 (2005: $0.8909) each. Options were exercised on a regular basis 

throughout both years. The weighted average share price during the year was $2.45 (2005: $1.86) per 

share. 

Share options outstanding at the end of the year have the following expiry dates and exercise prices: 

Exercise 

Options 

outstanding 

Options 

outstanding 

Date of grant of options Expiry date price 2006 2005 

$ 

9 April 2001 9 April 2006 0.8650 – 736,000 

19 September 2001 19 September 2006 0.9400 – 375,000 

19 April 2002 19 April 2007 0.7850* 955,500 2,996,750 

19 November 2004 19 November 2009 1.3767* 1,577,500 2,137,000 

15 November 2005 15 November 2010 2.0030* 3,557,500 3,855,000 

9 December 2005 9 December 2010 2.0370* 3,120,000 3,010,000 

9 March 2006 9 March 2011 2.3030* 4,830,000 – 

17 November 2006 17 November 2011 2.3100*^1 150,000 – 

17 November 2006 17 November 2011 2.3400*^2 1,000,000 – 

15,190,500 13,109,750 

* Following the rights issue of the Company in December 2006, the exercise prices of the options were adjusted 

downwards by $0.05 to give the option holders the effect of having the same proportion of equity capital as that 

to which they were previously entitled. 

^ 

During the financial year ended 31 December 2006, 1,150,000 share options were granted at a discount of more than 

10% representing 18.5% of the total number of share options granted during the financial year under review. 

1 


2 


82 

83 






The fair value of services received in return for share options granted are measured by reference to the fair 

value of share options granted. The estimate of the fair value of the services received is measured based 

on the Trinomial option pricing model. The expected life used in the model has been adjusted, based on 

management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural 

considerations. 

Date of grant of options 

Fair value of share options 

and assumptions 

19 November 

2004 

15 November 

2005 

9 December 

2005 

9 March 


17 November 


17 November 


Fair value at measurement 

date $0.217 $0.258 $0.388 $0.372 $0.975 $0.834 

Share price $1.45 $2.01 $2.14 $2.37 $2.89 $2.89 

Exercise price $1.4267 $2.053 $2.087 $2.353 $2.36 $2.39 

Expected volatility 28.0% 28.0% 28.0% 27.0% 30.0% 30.0% 

Expected option life 3.3 years 3.5 years 4.0 years 4.0 years 4.5 years 3.0 years 

Expected dividends 4.14% 4.98% 4.67% 5.10% 3.63% 3.63% 

Risk-free interest rate 1.87% 2.89% 3.13% 3.23% 3.06% 3.06% 

The expected volatility is based on the historic volatility (calculated based on the weighted average expected 

life of the share options), adjusted for any expected changes to future volatility due to publicly available 

information. 

There are no market conditions associated with the share option grants. Service conditions and non-market 

performance conditions are not taken into account in the measurement of the fair value of services to be 

received at the grant date. 

Parkway Performance Share Plan 

At the same Extraordinary General Meeting held on 2 November 2006, the shareholders of the Company 

approved the Parkway Performance Share Plan. The Parkway Performance Share Plan is administered by the 

Remuneration Committee, comprising 4 directors, namely, Timothy David Dattels, Richard Seow Yung Liang, 

Sunil Chandiramani and Ashish Jaiprakash Shastry. 

Under the Parkway Performance Share Plan, eligible employees and non-executive directors of the Company 

and its subsidiaries will be awarded with fully paid up ordinary shares of the Company, or cash in lieu of 

ordinary shares of the Company equivalent to the aggregate market value of such performance shares or a 

combination of both, upon the expiry of the prescribed vesting period when certain prescribed performance 

targets are met. The performance shares which may be issued pursuant to awards granted under the Parkway 

Performance Share Plan, when added to the aggregate number of ordinary shares issued pursuant to other 

share-based incentive schemes of the Company, shall not exceed 15% of the total number of issued ordinary 

shares of the Company on the day immediately preceding the date on which the award is granted. 

No performance shares have been awarded to employees or non-executive directors of the Company and its 

subsidiaries since the adoption of the Parkway Performance Share Plan by the Company. 

Pantai Holdings Berhad Employee Share Option Scheme (Pantai ESOS) 

The Pantai ESOS was approved by the shareholders and bondholders of Pantai Holdings Berhad (PHB) at an 

Extraordinary General Meeting held on 5 February 2002. 




At an Extraordinary General Meeting held on 14 September 2004, PHB obtained approval from its shareholders 

and bondholders to vary certain Bye-Laws of its existing Pantai ESOS and certain clauses of its Articles of 

Association after taking into consideration the amendments to the Bursa Securities Listing Requirements in 

relation to share schemes for employees, which became effective on 10 February 2004. 

Details of the Pantai ESOS were set out in the Directors’ Report of PHB for the year ended 30 June 2005. 

The Pantai ESOS is administered by PHB’s Options Committee. 

Information regarding the Pantai ESOS is set out below: 

(i) 

(ii) 

the exercise price of the option is determined at a discount of not more than 10% from the weighted 

average of the mean market quotation of the ordinary shares of PHB as quoted and shown in the daily 

official list issued by the Bursa Malaysia Securities Berhad for the five preceding market days prior to the 

date of offer or at par value of the ordinary shares of PHB, whichever is higher; 

The options vest from the date of grant and are in accordance with the vesting schedule set out below: 

For employees and directors who are granted between 1 and 49,999 options, the options expire after three 

years unless they have been cancelled or lapsed prior to that date. The vesting schedule for the options is 

as follows: 

Vesting schedule 

Percentage of shares over which the 

options are exercisable 

On or before the first anniversary of the grant date 40% 

After the first anniversary, and on or before the 

second anniversary of the grant date 80% 

After the second anniversary, and on or before the 

third anniversary of the grant date 100% 

For employees and directors who are granted 50,000 or more options, the options expire after five years unless 

they have been cancelled or lapsed prior to that date. The vesting schedule for the options is as follows: 

Vesting schedule 

Percentage of shares over which the 

options are exercisable 

On or before the first anniversary of the grant date 40% 

After the first anniversary, and on or before the 

second anniversary of the grant date 60% 

After the second anniversary, and on or before the 

third anniversary of the grant date 80% 

After the third anniversary, and on or before the 

fourth anniversary of the grant date 90% 

After the fourth anniversary, and on or before the 

fifth anniversary of the grant date 100% 

84 

On 28 December 2005, the Options Committee approved the acceleration of all outstanding options as at that 

date to be vested by 31 December 2005. 

85 






Movements in the number of share options and their related weighted average exercise prices are as 

follows: 

Weighted 

average 

exercise 

price 

Weighted 

average 

exercise 

price 

No. of 

options 

No. of 

options 

2006 2006 2005 2005 

RM 

RM 

At 1 January/Date of acquisition 1.00 4,899,500 1.00 18,704,800 

Granted – – – – 

Exercised 1.00 (4,478,300) 1.00 (13,801,800) 

Cancelled 1.00 (421,200) 1.00 (3,500) 

At 31 December – – 1.00 4,899,500 

Exercisable at 31 December – – 1.00 3,286,420 

Options exercised during the year resulted in 4,478,300 (2005: 13,801,800) new ordinary shares in the joint 

venture being issued at a weighted average price of RM1.00 (2005: RM1.00) each. Options were exercised 

on a regular basis throughout both periods. The weighted average share price during the year was RM2.35 

(2005: RM1.87) per share. 

Share options outstanding at the end of the year have the following expiry dates and exercise prices: 

Date of grant 

Exercise 

Options 

outstanding 

Options 

outstanding 

of options Expiry date price 2006 2005 

RM 




The fair value of services received in return for share options granted are measured by reference to the fair 

value of share options granted. The estimate of the fair value of the services received is measured based 

on the Trinomial option pricing model. The expected life used in the model has been adjusted, based 

on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural 

considerations. 

Date of grant of options 

Fair value of share options and 

assumptions 

24 Jun 

2002 

5 Sept 

2002 

16 Jun 

2003 

5 Nov 

2003 

8 Dec 

2004 

1 Aug 

2005 

Fair value at modification/ 

measurement date RM0.086 RM0.086 RM0.176 RM0.312 RM0.189 RM0.117 

Share price RM0.990 RM0.990 RM0.775 RM1.000 RM0.935 RM1.030 

Exercise price RM1.00 RM1.00 RM1.00 RM1.00 RM1.00 RM1.00 

Expected volatility 26% 26% 48% 49% 44% 26% 

Expected option life 1 year 1 year 3.49 years 3.27 years 2.44 years 1.14 years 

Expected dividends 5% 5% 5% 5% 5% 5% 

Risk-free interest rate 2.350% 2.350% 2.944% 3.617% 2.663% 2.356% 

The expected volatility is based on the historic volatility (calculated based on the weighted average expected 

life of the share options), adjusted for any expected changes to future volatility due to publicly available 

information. 

There are no market conditions associated with the share option grants. Service conditions and non-market 

performance conditions are not taken into account in the measurement of the fair value of the services to be 

received at the grant date. 

24 June 2002 24 June 2007 1.00 – 1,106,000 

24 June 2002 24 June 2007 1.00 – 246,200 

5 September 2002 5 September 2007 1.00 – 16,000 

5 September 2002 5 September 2007 1.00 – 6,000 

16 June 2003 16 June 2006 1.00 – 45,000 

16 June 2003 16 June 2008 1.00 – 33,400 

5 November 2003 5 November 2006 1.00 – 1,347,200 

5 November 2003 5 November 2008 1.00 – 174,600 

8 December 2004 8 December 2007 1.00 – 571,700 

8 December 2004 8 December 2009 1.00 – 21,900 

1 August 2005 1 August 2008 1.00 – 1,226,900 

1 August 2005 1 August 2010 1.00 – 104,600 

– 4,899,500 

86 

87 







88 

19 Financial liabilities 

Group 

Company 


$’000 $’000 $’000 $’000 

(restated) 

Non-current liabilities 

Secured term loans 29,688 44,675 – – 

Unsecured term loans 346,365 6,019 346,365 – 

Redeemable secured bonds – 63,005 – – 

Unsecured floating rate notes – 160,000 – 160,000 

Unsecured fixed rate notes – 150,000 – 150,000 

Finance lease liabilities 1,104 3,983 – – 

Financial derivatives 6,592 – 6,592 – 

383,749 427,682 352,957 310,000 

Current liabilities 

Secured term loans 2,760 2,481 – – 

Unsecured short-term credit facilities 41,066 40,042 – – 

Redeemable secured bonds 25,873 – – – 

Finance lease liabilities 584 1,697 – – 

Intra-group financial guarantees – – 99 – 

70,283 44,220 99 – 

Total financial liabilities 454,032 471,902 353,056 310,000 

Total borrowings 447,440 471,902 346,365 310,000 

Total financial derivatives 6,592 – 6,592 – 

Total intra-group financial guarantees – – 99 – 

Total financial liabilities 454,032 471,902 353,056 310,000 

19 Financial liabilities (Cont’d) 

Maturity of borrowings 

Group 

Within 

1 year 

After 1 year 

but within 

5 years 

After 

5 years Total 

$’000 $’000 $’000 $’000 


Secured term loans: 

RM variable at 4.51% to 8.25% 

per annum 1,421 1,375 – 2,796 

RM fixed at 6.22% to 6.75% 

per annum 994 2,508 – 3,502 

INR variable at 8.25% to 10% 

per annum 345 5,675 11,161 17,181 

INR fixed at 8.25% per annum – 3,334 5,001 8,335 

INR interest-free loan – – 634 634 

Unsecured term loan: 

S$ variable at 4.05904% per annum – 346,365 – 346,365 

Redeemable secured bonds: 

RM fixed at 5% per annum 25,873 – – 25,873 

Unsecured short-term credit facilities: 

S$ fixed at 3.52% per annum 6,968 – – 6,968 

RM fixed at 4.5% to 4.95% per annum 34,098 – – 34,098 

Finance lease liabilities: 

Fixed at 1.87% to 13.1% per annum 584 1,104 – 1,688 

70,283 360,361 16,796 447,440 

2005 

Secured term loans: 

RM variable at 7.50% to 7.75% 

per annum 1,601 5,707 133 7,441 

RM fixed at 6.22% to 6.75% 

per annum 880 11,783 – 12,663 

INR variable at 8.25% per annum – 4,354 11,275 15,629 

INR fixed at 8.25% per annum – 2,123 8,493 10,616 

INR interest-free loan – – 807 807 


INR variable at 3.32% per annum – 6,019 – 6,019 

Redeemable secured bonds: 

RM fixed at 5% per annum – 63,005 – 63,005 

Unsecured floating rate notes: 

S$ variable at 1.5875% to 2.5875% 

per annum – 160,000 – 160,000 

Unsecured fixed rate notes: 

S$ fixed at 2.45% to 3.10% 

per annum – 150,000 – 150,000 

Unsecured short-term credit facilities: 

S$ fixed at 1.6375% to 2.27% 

per annum 40,000 – – 40,000 

RMB fixed at 5.58% per annum 42 – – 42 

Finance lease liabilities: 

Fixed at 3.06% to 8.15% per annum 1,697 3,983 – 5,680 

44,220 406,974 20,708 471,902 

89 






Company 

Within 

1 year 

After 1 year 

but within 

5 years 

After 

5 years Total 

$’000 $’000 $’000 $’000 



S$ variable at 4.05904% per annum – 346,365 – 346,365 

2005 

Unsecured floating rate notes: 

S$ variable at 1.5875% to 2.5875% per 

annum – 160,000 – 160,000 

Unsecured fixed rate notes: 

S$ fixed at 2.45% to 3.10% per annum – 150,000 – 150,000 

– 310,000 – 310,000 

(a) 

In 1999, the Company entered into a Dual Currency Medium Term Notes Programme (DCMTN 

Programme) with a bank to issue up to $200 million 7-year Floating Rate Notes (FRN). 




(b) 

In 2001, the Company established a Multi-Currency Unsecured Medium Term Note Programme (MCMTN 

Programme) with another bank to issue fixed or floating rate notes to refinance existing loans and for 

working capital requirements. 

In this connection, the Company entered into a Trust Deed which includes the following terms: 

(i) 

(ii) 

the Company and its subsidiaries will not create any security on or over their respective assets 

except for any existing securities; and 

the Company must ensure that it will continue to own directly or indirectly not less than 75% in 

Gleneagles Medical Holdings Limited and Mount Elizabeth Medical Holdings Ltd. 

The following fixed rate and floating rate notes are outstanding as at the balance sheet date: 


$’000 $’000 

Fixed rate notes due in: 

- October 2007 – 75,000 

- October 2009 – 75,000 

– 150,000 

The FRNs constitute direct and unconditional obligations of the Company. Pursuant to the DCMTN 

Programme, there is a negative pledge that the Company and its principal subsidiaries will not create 

any security over their assets except as provided for under the terms of the DCMTN Programme. The 

FRNs rank pari passu without any preference or priority among themselves and at least pari passu with 

all other unsecured obligations of the Company (other than subordinated obligations and obligations 

having priorities created by law). Unless previously redeemed or purchased and cancelled, the FRNs are 

redeemable at their respective principal amounts on their maturity date. 

The following floating rate notes are outstanding as at the balance sheet date: 


$’000 

2005 

$’000 

Floating rate notes due in October 2009 – 100,000 

The DCMTN Programme was cancelled and the floating rate notes were fully redeemed during the 

financial year. 

(c) 

(d) 

Floating rate notes due in: 

- October 2007 – 30,000 

- October 2009 – 30,000 

– 60,000 

The MCMTN Programme was cancelled and the fixed and floating rate notes were fully redeemed 

during the financial year. 

During the financial year, the Company entered into a 5-year S$500 million syndicated dual currency 

term and revolving loan facility with a bank to refinance the existing financial indebtedness of the 

Group and for corporate funding and working capital requirements of the Group. Under the terms of 

the loan facility, the Company may draw down revolving loans within 2 years from the date of the loan 

agreement. Outstanding amounts at the end of the 2-year period may be converted into a term loan to 

be repaid on the maturity date. 

Pursuant to the loan agreement, there is a negative pledge that the Company and its principal subsidiaries 

will not, without the prior consent of the majority of the lenders, create any security over their assets. In 

addition, the Company and its principal subsidiaries shall not dispose of the whole or any material part 

of their assets except on terms as set out in the loan agreement. The loans rank at least pari passu with 

all other unsecured and unsubordinated obligations of the Company, except for obligations mandatorily 

preferred by law. 

The secured RM-denominated bank overdrafts and term loans of certain joint ventures are secured by 

the following: 

(i) 

(ii) 

(iii) 

first fixed charge over freehold land and leasehold land and buildings of certain joint ventures; 

fixed and floating charge over assets of certain joint ventures; and 

corporate guarantee by a joint venture. 

90 

91 









(e) 

The secured INR-denominated term loans of certain joint ventures are secured by the following: 

Effective interest rates and repricing/maturing analysis 

(i) 

(ii) 

(iii) 

first mortgage and charge over all immovable and movable assets of a joint venture; 

first charge over all movable assets of a joint venture; and 

hypothecation of the current assets and second charge on the property, plant and equipment of a 

joint venture. 

Group 

Effective 

Fixed interest rate maturing 

interest 

rate 

Floating 

interest 

within 

1 year 

1 to 5 

years 

after 

5 years Total 

% $’000 $’000 $’000 $’000 $’000 

(f) 

(g) 

Pursuant to a debt restructuring exercise undertaken in the prior years, a joint venture’s indebtedness 

was converted into an interest-free term loan. According to the terms of the debt restructuring exercise, 

if the joint venture defaults in repayment, the lenders have an option to convert the outstanding amount 

of the term loan not exceeding 20% of the loan amount into fully paid equity shares of the joint 

venture. 

The RM150 million 5% Redeemable Secured Bonds 2002/2007 (Bonds) were constituted by a Trust 

Deed dated 21 January 2002 made between a joint venture and the Trustee for the holders of the 

Bonds. Fixed coupon rate of 5% per annum is payable semi-annually in arrears until the maturity date 

and the Bonds will be redeemed at 100% of their principal amount together with interest accrued to 

the maturity date unless they have been previously redeemed or purchased and cancelled. 

The carrying value of the Bonds at 31 December 2006 included unamortised discount amounting to 

RM1,358,000 (2005: RM6,790,000). 

The Bonds are secured against the following: 

(i) 

a first legal charge on lands and buildings owned by a joint venture; and 


Secured term loans 4.51 to 10 19,977 994 5,842 5,001 31,814 

Unsecured term loan 4.05904 346,365 – – – 346,365 

- effect of interest rate swap 0.29096 (296,886) – 296,886 – – 

Redeemable secured bonds 8.62 – 25,873 – – 25,873 

Unsecured short-term credit facilities 3.52 to 4.95 – 41,066 – – 41,066 

Finance lease liabilities 1.87 to 13.1 – 80 1,608 – 1,688 

69,456 68,013 304,336 5,001 446,806 

2005 

Secured term loans 6.22 to 8.25 23,070 880 13,906 8,493 46,349 


Redeemable secured bonds 8.62 – – 63,005 – 63,005 

Unsecured floating rate notes 1.5875 to 2.5875 160,000 – – – 160,000 

Unsecured fixed rate notes 2.45 to 3.10 – – 150,000 – 150,000 

Unsecured short-term credit facilities 1.6375 to 5.58 – 40,042 – – 40,042 

Finance lease liabilities 3.06 to 8.15 – 317 5,363 – 5,680 

189,089 41,239 232,274 8,493 471,095 

Company 

(h) 

(ii) a Deed of Assignment of Sinking Fund Account (Note 15). 

The short-term bank loans of certain subsidiaries were secured by corporate guarantees issued by the 

Company. 

Finance lease liabilities 

The Group has obligations under finance leases that are repayable as follows: 

Payments Interest Principal Payments Interest Principal 

2006 2006 2006 2005 2005 2005 

$’000 $’000 $’000 $’000 $’000 $’000 

Repayable: 

Within 1 year 642 58 584 2,031 334 1,697 

After 1 year but within 5 years 1,215 111 1,104 4,426 443 3,983 

1,857 169 1,688 6,457 777 5,680 



- effect of interest rate swap 0.29096 (296,886) – 296,886 – – 

49,479 – 296,886 – 346,365 

2005 

Unsecured floating rate notes 1.5875 to 2.5875 160,000 – – – 160,000 

Unsecured fixed rate notes 2.45 to 3.10 – – 150,000 – 150,000 

160,000 – 150,000 – 310,000 

Intra-group guarantees 

Intra-group financial guarantees comprise guarantees granted by the Company to banks in respect of shortterm 

bank loans drawn down by certain subsidiaries totalling $41,066,000 (2005: $nil) as at the balance 

sheet date. 

Under the terms of the lease agreements, no contingent rents are payable. 

92 

93 





20 Other payables 

Group 

Company 


$’000 $’000 

(restated) 

$’000 $’000 

Other payables 21,881 39,328 776 562 

Rental deposits 1,479 1,376 – – 

Deposits and advances 291 603 – – 

Advanced billings 1,609 1,011 – – 

25,260 42,318 776 562 

Other payables are unsecured and interest-free, and are repayable within the next twelve months. 

21 Revenue – Group 

Revenue represents invoiced value of hospital and other healthcare services rendered, proceeds from sale of 

equity investments, rental income and dividend income, after eliminating inter-company transactions. 

The amount of each significant category of revenue recognised during the year is as follows: 


$’000 $’000 

(restated) 

Revenue from hospital and other healthcare services 854,696 553,748 

Proceeds from sale of equity investments 300 – 

Rental income 10,328 8,252 

Gross dividends: 

- Quoted equity investments 2,680 1,615 

- Unquoted equity investments – 1 

868,004 563,616 



22 Profit before income tax – Group 

The following items have been included in arriving at profit before income tax: 


$’000 $’000 

(restated) 

Interest income received and receivable from: 

- Banks and financial institutions 2,546 1,572 

- Others 709 446 

Imputed interest income 970 1,047 

Non-audit fees paid to auditors of the Company (115) (104) 

Contributions to defined contribution plans included in 

staff costs (15,580) (13,932) 

Increase in liability for short-term accumulating 

compensated absences (387) (246) 

Value of employee services received for issue of share options (2,150) (444) 

Exchange (loss)/gain (net) (3,098) 487 

Property, plant and equipment written off (57) (152) 

Inventories written off (76) (109) 

Gain/(Loss) on disposal of property, plant and equipment 275 (462) 

Gain on disposal of available-for-sale equity investments 122 283 

Loss on disposal of subsidiaries – (92) 

Loss on dilution of interests in subsidiary – (2,141) 

Gain on disposal of associates 42 – 

Changes in fair value of financial assets held for trading 68 8 

Allowance for impairment loss (written back) / made: 

- Amounts due from associates 33 (516) 

- Trade receivables (3,412) (2,633) 

Operating lease expenses (7,068) (8,343) 

Interest paid and payable to: 

- Banks and financial institutions (12,730) (3,385) 

- Fixed and floating rate notes (4,361) (6,745) 

- Bonds (2,721) (841) 

- Others (409) (135) 

Other finance costs (1,282) (406) 

Amortisation of discount on bonds (1,980) (598) 

94 

95 





23 Related parties – Group 

For the purposes of these financial statements, parties are considered to be related to the Group if the Group 

has the ability, directly or indirectly, to control the party or exercise significant influence over the party in 

making financial and operating decisions, or vice versa, or where the Group and the party are subject to 

common control or common significant influence. Related parties may be individuals or other entities. 

Key management personnel compensation 

Key management personnel of the Group are those persons having the authority and responsibility for 

planning, directing and controlling the activities of the Group. The directors of the Company and the General 

Managers of the significant subsidiaries are considered as key management personnel of the Group. 

Key management personnel compensation comprised: 


$’000 $’000 

Short-term employee benefits 8,939 6,709 

Termination benefits – 1,037 

Share-based payments 853 171 

9,792 7,917 

The directors of the Company also participate in the Parkway Scheme 2001. 2,700,000 share options (2005: 

3,180,000) were granted to the directors of the Company during the year. The share options that were 

granted were on the same terms and conditions as those offered to other employees of the Company as 

described in note 18. At the balance sheet date, 6,727,000 (2005: 5,667,000) of those share options were 

outstanding. 

Other transactions with key management personnel 

Group 


$’000 $’000 

Director of the Company 

Rental income received 9 9 

Directors of subsidiaries 

Consultancy fees paid 347 341 



23 Related parties – Group (Cont’d) 

Other related party transactions 

Other than disclosed elsewhere in the financial statements, transactions carried out on terms agreed with 

related parties are as follows: 

Group 


$’000 $’000 

Associates 

Management fees received 917 808 

Rental income received 476 577 

Sales 79 177 

Purchases 1,679 1,216 

Corporate shareholders of subsidiaries 

Consultancy fees paid 3,666 844 

Management fees paid 290 180 

Professional fees paid 51 51 

24 Income tax expense – Group 


$’000 $’000 

Current tax expense 

Current year 29,724 20,821 

(Over)/Under provided in prior years (618) 11 

29,106 20,832 

Deferred tax expense 

Origination and reversal of temporary differences 3,169 920 

(Over)/Under provided in prior years (2,351) 125 

10 818 1,045 

Foreign taxation 144 160 

Income tax expense 30,068 22,037 

A firm in which a director is a member 

Professional fees paid 152 15 

96 

97 





24 Income tax expense – Group (Cont’d) 

Reconciliation of effective tax rate 


% $’000 % $’000 

Profit before income tax 98,906 89,427 

Tax calculated using Singapore tax rate 20.0 19,781 20.0 17,885 

Effect of different tax rates in other countries 3.4 3,382 1.4 1,225 

Income not subject to tax (1.5) (1,492) (1.4) (1,223) 

Expenses not deductible for tax purposes 10.7 10,556 4.5 4,054 

Utilisation of previously unrecognised 

tax losses – (62) (0.2) (206) 

Deferred tax asset not recognised 0.7 728 – 6 

(Over)/underprovided in prior years (3.0) (2,969) 0.1 136 

Foreign taxation 0.1 144 0.2 160 

30.4 30,068 24.6 22,037 

Unrecognised temporary differences 

The following temporary differences have not been recognised: 


$’000 $’000 

(restated) 

Deductible/(Taxable) temporary differences 2,347 (2,334) 

Unabsorbed capital allowances 423 499 

Unutilised tax losses 24,080 28,108 

26,850 26,273 

The tax losses are subject to agreement by the tax authorities and compliance with tax regulations in 

the respective countries in which certain subsidiaries or joint ventures operate. The deductible temporary 

differences do not expire under current tax legislation. Deferred tax assets of the Group have not been 

recognised in respect of these items because it is not probable that future taxable profit will be available 

against which the respective entities within the Group can utilise the benefits. 

25 Earnings per share 


$’000 $’000 

Basic earnings per share 

Basic earnings per share is based on: 

Net profit attributable to ordinary shareholders 55,283 61,969 


Number of shares 



25 Earnings per share (Cont’d) 

Diluted earnings per share 

For the purpose of calculating the diluted earnings per ordinary share, the weighted average number of 

ordinary shares in issue is adjusted to take into account the dilutive effect arising from the dilutive share 

options, with the potential ordinary shares weighted for the period outstanding. 

The effect of the exercise of share options on the weighted average number of ordinary shares in issue is as 

follows: 


Number of shares 

Weighted average number of ordinary shares, used in the calculation of 

basic earnings per share 743,401,893 737,811,268 

Weighted average number of unissued ordinary shares under share 

options 12,663,023 6,244,442 

Weighted average number of shares that would have been issued at 

average market price (9,969,388) (3,580,295) 

Weighted average number of ordinary shares assuming 

full conversion 746,095,528 740,475,415 

Share options totalled 5,980,000 outstanding at the end of the year were not included in the computation 

of diluted earnings per share due to their anti-dilutive nature. 

26 New accounting standards and interpretations not yet adopted 

The Group has not applied the following accounting standards and interpretations that have been issued as 

of the balance sheet date but are not yet effective: 

FRS 40 

Investment Property 

FRS 107 

Financial Instruments: Disclosures and the Amendment to FRS 1 Presentation of Financial 

Statements: Capital Disclosures 

INT FRS 107 Applying the Restatement Approach under FRS 29 Financial Reporting in Hyperinflationary 

Economies 

INT FRS 108 Scope of FRS 102 

INT FRS 109 Reassessment of Embedded Derivatives 

INT FRS 110 Interim Financial Reporting and Impairment 

FRS 40, which becomes mandatory for the Group’s 2007 financial statements, permits investment property 

to be stated at either fair value or cost less accumulated depreciation and accumulated impairment losses. 

Properties held for rental are currently treated as properties in accordance with FRS 16 Property, Plant and 

Equipment and are stated at cost less accumulated depreciation and impairment losses. As a result of 

adopting FRS 40, these properties will be reclassified as investment properties. Property interests held under 

operating leases and recognised as investment properties are required to be measured at fair value. The 

Group is currently evaluating the impact the standard will have on the Group’s financial statements. 

98 

Issued ordinary shares at beginning of the year 727,013,212 722,911,462 

Effects of share options exercised 2,249,891 2,134,905 

Effects of rights shares issued 2,001,257 – 

Adjustment for effects of rights issue 12,137,533 12,764,901 

Weighted average number of ordinary shares at end of the year 743,401,893 737,811,268 

99 





26 New accounting standards and interpretations not yet adopted (Cont’d) 

FRS 107 and amended FRS 1, which become mandatory for the Group’s 2007 financial statements, will require 

extensive additional disclosures with respect to the Group’s financial instruments and share capital. This standard 

does not have any impact on the recognition and measurement of the Group’s financial statements. 

INT FRS 110 prohibits the reversal of an impairment loss recognised in an interim period during the financial 

year in respect of goodwill, an investment in an equity instrument or a financial asset carried at cost. INT 

FRS 110 will become mandatory for the Group’s 2007 financial statements, and will apply to goodwill, 

investments in equity instruments, and financial assets carried at cost prospectively from the date the Group 

first applied the measurement criteria of FRS 36 and FRS 39 respectively (i.e. 1 January 2005). 



27 Acquisitions and disposals of subsidiaries and joint ventures (Cont’d) 

Subsequent to the acquisition, the Group’s interest in PHB was diluted to 28.51% as at 31 December 2005. 

Consequently, the Group recognised a loss on dilution of interests in subsidiaries amounting to $2,141,000 

in the income statement. 

On 9 June 2005, the Group completed the disposal of its 51% interests in Thermal International (S) Pte Ltd 

and Thermal International Limited. Consequently, the Group’s interests in Gleneagles International Laboratory 

Services Pte Ltd and Gleneagles Investment Fujian Pte Ltd were diluted from 68% to 45%. During the 

period from 1 January 2005 to the date of disposal, the subsidiaries contributed net profit of $36,000 to the 

consolidated net profit for the year. 

Other than FRS 40 and INT FRS 110, the initial application of these standards and interpretations are not 

expected to have any material impact on the Group’s financial statements. The entity has not considered the 

impact of accounting standards issued after the balance sheet date. 

The effects of the above disposals are set out below: 


$’000 $’000 

100 

27 Acquisitions and disposals of subsidiaries and joint ventures 

On 13 September 2005 and 20 September 2005, the Group completed the acquisition of 35,000,000 and 

89,700,000 ordinary shares of RM1 each in PHB respectively, and 24,300,000 warrants 2002/2007 issued by 

PHB for a total consideration amounting to RM320,264,000. This represents 31.34% of the issued and paidup 

capital in PHB (excluding treasury shares) and 36.27% of the outstanding warrants issued by PHB. During 

the period from the acquisition date to 31 December 2005, PHB and its subsidiaries contributed net profit 

of $4,242,000 to the consolidated net profit for the year. If the acquisition had occurred on 1 January 2005, 

Group revenue would have been $799,276,000 and net profit would have been $76,759,000. 

The effects of the above acquisitions are set out below: 

Carrying 

amounts 

Fair value 

adjustments 

Recognised 

values 

2005 2005 2005 

$’000 $’000 $’000 

Property, plant and equipment 199,558 25,550 225,108 

Intangible assets 65,723 30,916 96,639 

Interests in associates 54,130 (15,843) 38,287 

Available-for-sale financial assets 371 – 371 

Deferred tax assets 2,155 – 2,155 

Inventories 6,510 – 6,510 

Trade receivables 36,865 (6,893) 29,972 

Other receivables, deposits and prepayments 16,043 862 16,905 

Tax recoverable 3,848 210 4,058 

Fixed deposits pledged 13,608 – 13,608 

Cash and cash equivalents 40,455 – 40,455 

Trade payables and accrued operating expenses (44,622) – (44,622) 

Other payables (29,140) – (29,140) 

Current tax payable (3,726) 1,226 (2,500) 

Interest-bearing borrowings (90,226) – (90,226) 

Deferred tax liabilities (2,724) (4,714) (7,438) 

Minority interests (213,441) (3,539) (216,980) 

Net identifiable assets and liabilities 55,387 27,775 83,162 

Goodwill on acquisition 59,662 

Cash consideration 142,824 

Less: Cash and cash equivalents acquired (40,455) 

Net cash outflow 102,369 

Property, plant and equipment – 369 

Inventories – 169 

Trade receivables – 7,447 

Other receivables, deposits and prepayments – 1,377 

Cash and cash equivalents – (949) 

Trade payables and accrued operating expenses – (5,497) 

Other payables – (204) 

Current tax payable – (197) 

Finance lease obligations – (1,120) 

Deferred tax liabilities – (9) 

Minority interests – (684) 

Net assets disposed – 702 

Loss on disposal of subsidiaries – (92) 

Cash consideration – 610 

Cash and cash equivalents disposed – 949 

Net cash flow from disposal of subsidiaries – 1,559 

28 Commitments 

(a) 

(b) 

Group 


$’000 $’000 

(restated) 

Capital commitments not provided for in the financial statements: 

- Amounts authorised and contracted for 24,307 23,417 

- Amounts authorised but not contracted for 12,249 14,330 

36,556 37,747 

Non-cancellable operating leases payable: 

- Within 1 year 10,956 8,807 

- After 1 year but within 5 years 12,971 10,659 

- After 5 years 773 – 

24,700 19,466 

101 





28 Commitments (Cont’d) 



29 Financial instruments (Cont’d) 

(c) 

Non-cancellable operating leases receivable: 

Group 


$’000 $’000 

(restated) 

Liquidity risk 

The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by 

management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows. 

Interest rate risk 

(d) 

- Within 1 year 6,682 6,893 

- After 1 year but within 5 years 4,410 7,448 

11,092 14,341 

After the balance sheet date, the directors proposed the following dividends. The dividends have not 

been provided for. 


$’000 $’000 

Final dividend proposed of 5.5 cents (2005: 5.0 cents) per share 

less tax at 18% (2005: 20%) 34,596 29,081 

29 Financial instruments 

The Group has put in place a set of risk management policies and guidelines governing all investment and 

business risks. These policies and procedures set out the Group’s overall business strategies, its tolerance 

for risk and general risk management philosophy. In addition, management has established processes to 

monitor and control such risks in a timely and accurate manner. Where necessary, the Group may enter into 

transactions to hedge against these risks in order to keep them at an acceptable level. Finally, all investment 

and divestment decisions are required to be approved by the Executive Committee. 

This relates to changes in interest rates which affect mainly the Group’s fixed deposits, notes receivables, fixed 

rate redeemable bonds, and its debt obligations with banks and financial institutions. The Group’s fixed-rate 

financial assets and borrowings are exposed to a risk of change in their fair value due to changes in interest 

rates while the variable-rate financial assets and borrowings are exposed to a risk of change in cash flows 

due to changes in interest rates. 

The Group’s policy is to manage its interest cost using a mix of fixed and variable rate debts as well as by 

rolling over its fixed deposits and variable rate borrowings on a short-term basis. In respect of long-term 

borrowings, the Group may enter into interest rate derivatives to manage its exposure to adverse movements 

in interest rates. 

During the year, interest rate swaps, which are denominated in Singapore dollars, have been entered into to 

achieve an appropriate mix of fixed and floating rate exposures within the Group’s policy. The swaps mature 

over the next 5 years following the maturity of the related loans. As at 31 December 2006, the Group has 

interest rate swaps with a notional contract amount of $300,000,000 (2005: $nil). The Group classifies these 

interest rate swaps as cash flow hedges. 

The fair value of interest rate swaps liability at 31 December 2006 was $6,592,000 (2005: $nil). 

Credit risk 

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. 

Credit evaluations are performed on all customers requiring credit over a certain amount. For the hospital 

operations, the Group does not grant credit to non-corporate customers. Instead, a non-corporate customer 

is requested to place an initial deposit at the time of admission to the hospital. Additional deposit is requested 

from the customer when the hospital charges exceed a certain level. 

Cash and fixed deposits are placed with financial institutions which are regulated. 

Similarly, investments and transactions involving financial instruments are allowed to be entered into only 

with counterparties who have sound credit ratings. As such, management does not expect any counterparty 

to fail to meet their obligations. 

At the balance sheet date, the Group has outstanding amount owing from joint ventures of $96,876,000 (2005: 

$nil) and notes receivables due from Lee Hing Development Limited of $33,568,000 (2005: $41,484,000). 

Other than these receivables, there were no significant concentrations of credit risk. The maximum exposure 

to credit risk is represented by the carrying amount of each financial asset, including derivative financial 

instruments, in the balance sheet. 

102 

103 






Foreign currency risk 

The Group is exposed to foreign exchange risk on sales, purchases, notes receivables, borrowings and 

investments that are denominated in currencies other than Singapore dollars. The currencies giving rise to 

this risk are primarily Malaysian ringgit, Hong Kong dollars and Indian rupee. In respect of exposure that is 

certain, the Group will partially hedge these risks in order to keep them at an acceptable level. 

At the balance sheet date, the Group has outstanding forward exchange contracts with notional amounts 

approximately $nil (2005: $6,087,000). 

Fair value 

Quoted investments 

The fair value of financial assets at fair value through profit or loss and available-for-sale financial assets is 

determined by reference to their quoted bid prices at the reporting date. 

Derivatives 

The fair value of forward exchange contracts is based on their listed market price, if available. If a listed 

market price is not available, fair value is estimated by discounting the difference between the contractual 

forward price and the current forward price for the residual period to maturity of the contract using a risk-free 

interest rate (based on government bonds). 

The fair value of interest rate swaps is based on broker quotes. These quotes are tested for reasonableness by 

discounting estimated future cash flows based on the terms and maturity of each contract and using market 

interest rates for a similar instrument at the measurement date. 

Non-derivative interest bearing borrowings 

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future 

principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance 

leases, the market rate of interest is determined by reference to similar lease agreements. The notional 

amounts of financial liabilites with a maturity of less than one year or which reprice frequently are assumed 

to approximate their fair values. 

Intra-group financial guarantees 

The value of financial guarantees provided by the Company to its subsidiaries is determined by reference to 

the difference in the interest rates, by comparing the actual rates charged by the bank with these guarantees 

made available, with the estimated rates that the banks would have charged had these guarantees not been 

available. 




Other financial assets and liabilities 

The notional amounts of financial assets and liabilities with a maturity of less than one year including trade 

and other receivables, cash and cash equivalents, trade and other payables are assumed to approximate their 

fair values because of the short period of maturity. All other financial assets and liabilities are discounted to 

determine their fair values. 

The aggregate net fair values of recognised financial assets and liabilities which are not carried at fair value 

in the balance sheet as at 31 December are represented in the following table: 

Group 

Carrying 

amount 

Fair 

value 

Carrying 

amount 

Fair 

value 

Note 2006 2006 2005 2005 

$’000 $’000 $’000 

(restated) 

$’000 

(restated) 

Financial asset 

Notes receivables – – 41,484 40,715 

Financial liabilities 

Amounts due to associates (non-current) 6 (437) (388) (413) (373) 

Secured term loans 19 (12,471) (12,300) (24,086) (24,102) 

Redeemable secured bonds 19 (25,873) (25,302) (63,005) (63,744) 

Unsecured fixed rate notes 19 – – (150,000) (145,382) 

Finance lease liabilities 19 (1,688) (1,688) (5,680) (5,823) 

(40,469) (39,678) (243,184) (239,424) 

Total (40,469) (39,678) (201,700) (198,709) 

Unrecognised gain 791 2,991 

Company 

Financial asset 

Notes receivables – – 41,484 40,715 

Financial liability 

Unsecured fixed rate notes 19 – – (150,000) (145,382) 

Total – – (108,516) (104,667) 

Unrecognised gain – 3,849 

It is not practicable to reliably estimate the fair value of unquoted equity shares due to the lack of quoted 

market prices in an active market, significant range of reasonable fair value estimates, and the inability to 

reasonably assess the probabilities of the various estimates. However, management believes that the carrying 

amounts recorded at balance sheet date reflect the corresponding fair values. 

104 

105 





30 Segment reporting 

A segment is a distinguishable component of the Group that is engaged either in providing products or 

services (business segment), or in providing products or services within a particular economic environment 

(geographical segment), which is subject to risks and rewards that are different from those of other 

segments. 

Segment information is presented in respect of the Group’s business and geographical segments. The primary 

format, business segments, is based on the Group’s management and internal reporting structure. 

Inter-segment pricing is determined on mutually agreed terms. 

Segment results, assets and liabilities include items directly attributable to a segment as well as those that 

can be allocated on a reasonable basis. Unallocated items mainly comprise goodwill, interest expenses and 

related liabilities, and income tax assets and liabilities. 

Segment capital expenditure is the total costs incurred during the year to acquire property, plant and 

equipment and intangible assets other than goodwill. 

Business Segments 

The Group comprises the following main business segments: 

Healthcare 

Singapore Hospitals: The operation of private hospitals, rental and sale of medical units which form part of 

the hospital complex in Singapore. 

International Hospitals: The operation of private hospitals outside Singapore. 

Healthcare Services: Operation of medical clinics and provision of primary healthcare services, practice of dental 

surgeons and operation of dental clinics, provision of clinical research services, ownership and management 

of radiology clinics, provision of comprehensive diagnostic laboratory services, underwriting of accident and 

healthcare insurance policies, and provision of managed care and related services. 

Non-Healthcare 

The sale of properties, investment holding and trading. 

Geographical Segments 

The healthcare segment operates principally in Singapore and Malaysia while the property rental, investment 

holding and trading segments operate mainly in Singapore. 

In presenting information on the basis of geographical segments, segment revenue is based on the geographical 

location of customers. Segment assets are based on the geographical location of the assets. 



30 Segment reporting (Cont’d) 

Business Segments 

Revenue and 

expenses 

Singapore International Healthcare Healthcare Non- 

Hospitals Hospitals Services Subtotal Healthcare Eliminations Unallocated Consolidated 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 


Total revenue 

from external 

customers 356,270 239,179 269,059 864,508 3,496 – – 868,004 

Inter-segment 

revenue 14,389 270 25,351 40,010 – (40,010) – – 

Total 370,659 239,449 294,410 904,518 3,496 (40,010) – 868,004 

Segment results 77,095 22,187 27,589 127,681 (9,160) – 311 118,832 

Finance costs (23,483) 

Share of profits 

of associates – 1,696 57 1,753 1,804 – – 3,557 

Income tax 

expense (30,068) 

Net profit for the 

year 68,838 

2005 

Total revenue 

from external 

customers 300,283 116,055 144,538 560,876 2,740 – – 563,616 

Inter-segment 

revenue 12,720 – 37,411 50,131 – (50,131) – – 

Total 313,003 116,055 181,949 611,007 2,740 (50,131) – 563,616 

Segment results 65,017 13,990 21,396 100,043 3,104 – (2,141) 101,366 

Finance costs (12,110) 

Share of (losses)/ 

profit of 

associates – (339) (210) (549) 720 – – 171 

Income tax 

expense (22,037) 

Net profit for the 

year 67,390 

106 

107 







Hospitals Hospitals Services Subtotal Healthcare Consolidated 

$’000 $’000 $’000 $’000 $’000 $’000 



Segment assets 542,254 183,086 176,612 901,952 130,140 1,032,092 

Interests in associates – 8,993 1,761 10,754 368 11,122 

542,254 192,079 178,373 912,706 130,508 1,043,214 

Unallocated assets 188,189 

Total assets 1,231,403 

Segment liabilities 87,581 76,228 57,338 221,147 40,074 261,221 

Unallocated liabilities 535,021 

Total liabilities 796,242 

2005 

Segment assets 510,737 327,296 269,669 1,107,702 128,673 1,236,375 

Interests in associates – 9,374 1,971 11,345 38,622 49,967 

510,737 336,670 271,640 1,119,047 167,295 1,286,342 

Unallocated assets 57,700 

Total assets 1,344,042 

Segment liabilities 73,275 119,549 77,429 270,253 77,042 347,295 

Unallocated liabilities 350,000 

Total liabilities 697,295 





Hospitals Hospitals Services Subtotal Healthcare Consolidated 

$’000 $’000 $’000 $’000 $’000 $’000 

Other segmental 

information 


Capital expenditure 33,851 25,330 7,826 67,007 178 67,185 

Depreciation and 


of property, plant 

and equipment 25,873 13,439 8,994 48,306 365 48,671 

Amortisation of 

intangible assets - 328 11,265 11,593 - 11,593 

2005 (restated) 

Capital expenditure 20,490 9,043 13,414 42,927 225 43,172 

Depreciation and 


of property, plant 

and equipment 23,298 7,046 6,562 36,906 204 37,110 

Amortisation of 

intangible assets – 99 3,400 3,499 – 3,499 

Geographical Segments 


Other 

Singapore Malaysia regions Consolidated 

$’000 $’000 $’000 $’000 

Total revenue from external customers 476,704 354,907 36,393 868,004 

Segment assets 745,004 236,564 50,524 1,032,092 

Capital expenditure 38,024 24,595 4,566 67,186 

2005 

Total revenue from external customers 399,985 133,480 30,151 563,616 

Segment assets 697,210 484,980 54,185 1,236,375 

Capital expenditure 29,363 8,845 4,964 43,172 

108 

109 





31 Associates 

Place of 

incorporation 

Effective equity 

interest held 

Name of associate Principal activities and business 2006 2005 

% % 

Phil, Inc Dormant United States 

of America 

40 40 



31 Associates (Cont’d) 

Place of 

incorporation 


interest held 

Name of associate Principal activities and business 2006 2005 

% % 

Asia Renal Care (Katong) Pte Ltd Provision of medical services Singapore 20 20 

Gleneagles Medical Centre 

(Kuala Lumpur) Sdn Bhd 

Gleneagles Hospital (Kuala 

Lumpur) Sdn Bhd 

Gleneagles Dialysis 

International Pte Ltd 


Medical centre development, 

ownership and management 


management 



Provision of dialysis care Singapore 40 40 

IAG Healthsciences Pte Ltd 

Onemedhub Pte Ltd 

Positron Tracers Pte. Ltd. 

Provision of medical and health 

products, clinic management and 

consultancy services 

Provision of electronic commerce 

services 

Ownership and operation of a 

cyclotron 

Singapore 26.45 29.09 



Gleneagles Dialysis 

Centre Pte Ltd 

PT Tritunggal Sentra Utama 

Surabaya 

Kyami Pty Ltd and its 

subsidiary: 

Royalmist Properties 

Pty Ltd 


Hospital (Lanka) Limited 

Gleneagles Heritage Holdings 

Limited and its subsidiary: 

Gleneagles Heritage 

International Limited 

Asia Renal Care Mount 

Elizabeth Pte Ltd 

Provision of business 

management, consultancy and 

specialised medical services 

Provision of medical diagnostic 

services 


Indonesia 30 30 

Investment holding Australia 30 30 

Property investment and 

development 

Australia 30 30 

Dormant Sri Lanka 40 40 

Investment holding British Virgin Islands 40 40 

Dormant British Virgin Islands 40 40 

Provision of medical services Singapore 20 20 

CPG Healthcare Facilities 

Management Pte. Ltd. 

Commenced liquidation during 

the year 


Korean Clinic Pte. Ltd. Dormant Singapore 40 40 


Laboratory Services Pte Ltd 


Gleneagles Investment 

Fujian Pte Ltd 

Worldcare Health (Malaysia) 

Sdn. Bhd. 

Avenue Capital Resources 

(Berhad) 



Provision of telemedicine services Malaysia – 8.55# 

Investment holding and provision 

of management services 

Malaysia –* 4.88# 

# 

Worldcare Health (Malaysia) Sdn. Bhd. and Avenue Capital Resources Berhad were accounted for as associates for the year ended 

31 December 2005 in accordance with FRS 28 by virtue of the Group’s interests in Pantai Holdings Berhad. 

* During the financial year, Avenue Capital Resources Berhad (ACRB) had undergone a restructuring exercise whereby the shares 

held by certain subsidiaries of Pantai Holdings Berhad were exchanged for new ordinary shares in ECM Libra Avenue Berhad 

(ECM Libra) and shares of POS Malaysia and Services Holdings Berhad (POS) were given as part of the distribution of assets in 

specie. Upon completion of the restructuring exercise, the listing status of ACRB was transferred to ECM Libra. Consequently, 

the effective interest in ECM Libra held by Pantai Holdings Berhad was reduced to approximately 7%. As the Group no longer has 

significant influence over ECM Libra, the investments in ECM Libra and POS were classified as available-for-sale investments. 

None of the above associates are considered significant in accordance with Rule 718 of the SGX-ST Listing 

Manual. For this purpose, an associate is considered significant as defined under the SGX-ST Listing Manual if 

its net tangible assets represent 20% or more of the Group’s consolidated net tangible assets, or if its pre-tax 

profits account for 20% or more of the Group’s consolidated pre-tax profits. 

110 

111 





32 Joint ventures 

Place of 

incorporation 


interest held 

Name of joint venture Principal activities and business 2006 2005 

% % 



32 Joint ventures (Cont’d) 

Place of 

incorporation 


interest held 


% % 

Apollo Gleneagles Hospital Ltd 


management 

India 50 50 

Angiography Sdn. Bhd. 

Provision of cardiac catherisation 

services 

Malaysia 26.72 Note 5 

Apollo Gleneagles PET-CT 

Limited 

Hale Medical Clinic (Concourse) 

Pte Ltd 

Shenton Family Medical Clinic 

(Bukit Gombak) 

Operation of PET-CT radio 

imaging centre 

India 50 50 

Operation of medical clinic Singapore 50 – 

Operation of medical clinic Singapore 50 60 

Magnetom Imaging 

Sdn. Bhd. 

PMC Radio-Surgery 

Sdn. Bhd. 

Provision of medical diagnostic 

services and other related 

ventures 

Provision of radiotherapy 

facilities 


Malaysia 40 Note 5 

Ganda Gema Sdn. Bhd. Dormant Malaysia 40 Note 5 


(Serangoon) 


Cheras Medical Centre 

Sdn. Bhd. 

Provision of medical, surgical and 

hospital services 



(Bedok Reservoir) 


(Jurong East) 


(Tampines) 


(Yishun) 

Karington Holdings Pte Ltd and 

its joint venture: 

Shanghai Modern Elecom 

Trading Centre Building Co. 

Ltd 




Operation of medical clinic Singapore 50 – 


Property investment and 

development 


of China 

25 25 

Pantai Klang Specialist 

Medical Centre Sdn. 

Bhd. 

Syarikat Tunas Pantai 

Sdn. Bhd. 

Paloh Medical Centre 

Sdn. Bhd. 

Hospital Pantai Ayer 

Keroh Sdn. Bhd. and 














Mikrogema Sdn. Bhd. Dormant Malaysia 40 Note 5 

HPAK Lithotripsy 


Provision of lithotripter services Malaysia 40 Note 5 

Pantai Irama Ventures Sdn Bhd 


Investment holding Malaysia 43.85 – 

HPAK Cancer Centre 

Sdn. Bhd. 

Provision of services for cancer 

diseases 


Pantai Holdings Berhad and 


Pantai Group Resources Sdn. 


Pantai Hospitals Sdn. Bhd. 


Investment holding Malaysia 40 Note 5 



provision of management and 

consultation services to hospitals 

and medical centres 


Hospital Pantai Indah 


subsidiary: 

HPI Dialysis Centre 

Sdn. Bhd. 


Consulting 




Dormant Malaysia 40 Note 5 



Indonesia 40 # Note 5 

112 

Pantai Medical Centre 


subsidiaries: 




Pantai Support Services 

Sdn. Bhd. and 





healthcare related service sectors 


113 






Place of 

incorporation 


interest held 


% % 




Place of 

incorporation 


interest held 


% % 

Pantai Premier Pathology 

Sdn. Bhd. 

Provision of medical laboratory 

services 


Pantai Management 

Resources Sdn. Bhd. 

Provision of administration 

support, training, research and 

development services 


Pantai Education Sdn. 

Bhd. 

Provision of educational 

programs and training courses 

for healthcare and related fields 


Credit Enterprise 

Sdn. Bhd. 


Pantai Columbia Sdn. 

Bhd. 

Golden Home Care 

Sdn. Bhd. 

Pantai Integrated Rehab 


Pantai Fomema & 

Systems Sdn. Bhd. and 


Fomema Sdn. Bhd. 

Pengkalan Usaha 

(M) Sdn. Bhd. 

Healthpac Industries 

Sdn. Bhd. 

Conso-Asli Sdn. Bhd. and 


Kuala Lumpur Medical 

Centre (Asia Pacific) 

Sdn. Bhd. 



Provision of rehabilitation 

services 


supervision of medical 

examination of foreign workers 

in Malaysia 

Monitoring of medical 


in Malaysia 

Supervision of medical 


in Malaysia 







Dormant Malaysia 20.4 Note 5 

Seraya Sensa Sdn. Bhd. Investment holding Malaysia 40 Note 5 




Consulting 

Pantai Medivest Sdn. Bhd. 


Aroma Laundry & Dry 

Cleaners Sdn. Bhd. and 


Zoom Valet Services 

Sdn. Bhd. 

Dormant Sri Lanka 40 ## Note 5 

Provision of healthcare consulting 

services 

Provision of clinical waste 

management, cleaning and 

maintenance services for hospitals 

Provision of laundry and dry 

cleaning services 

Indonesia 40 # Note 5 




Mediwash Sdn. Bhd. Dormant Malaysia 20 Note 5 



Pantai Medivest (India) 

Private Limited 

Dormant Sri Lanka 40 ## Note 5 

Dormant India 40 Note 5 

PT Jasa Medivest Dormant Indonesia 38 – 

# 

Effective equity interest of 20% each held by Pantai Hospitals Sdn. Bhd. and Pantai Group Resources Sdn. Bhd. 

## 

Effective equity interest of 20% each held by Pantai Medivest Sdn. Bhd. and Pantai Group Resources Sdn. Bhd. 

Cyberwide Finance 

Limited and its subsidiary: 

Maxgold Investments 

Group Limited and 





Islands 


Islands 

40 Note 5 

40 Note 5 

None of the above joint ventures are considered significant. A joint venture is considered significant if its net 

tangible assets represent 20% or more of the Group’s consolidated net tangible assets, or if its pre-tax profits 

account for 20% or more of the Group’s consolidated pre-tax profits. 

33 Comparative information 

Glossmere Investments 

Limited 



Islands 

40 Note 5 

Comparatives in the financial statements have been changed from the previous year due to the changes in 

accounting policies as described in note 2 and to be consistent with current year presentation. 

114 

115 



Supplementary information – 

SGX-ST Listing Manual requirements 


1 Summary of major properties 




1 Summary of major properties (Cont’d) 

The major properties of the Group are: 

Description 

Location 

Site area 

(sq m) 

Existing 

use 

Approximate total 

lettable/ 

saleable area (sq m) 

Group’s 

effective 

interest 

% Tenure 

Description 

Singapore 

Location 

Site area 

(sq m) 

Existing 

use 

Approximate total 

lettable/ 

saleable area (sq m) 

Group’s 

effective 

interest 

% Tenure 

Singapore 

Gleneagles 

Hospital 

and Medical 

Centre, a 380- 

bed hospital 

with 164 

medical suites 

and 402 car 

park lots 

Mount Elizabeth 

Hospital 

and Medical 


bed hospital 

with 214 


and 368 car 

park lots 

East Shore 

Hospital 

and Medical 


bed hospital 

with 28 


and 73 car 

park lots 

Lot 1345 Town 

sub-division 

25 situated at 

6/6A Napier 

Road 

Lot 858 Town 

sub-division 

27 situated 

at 3 Mount 

Elizabeth 

Lot 6912 

Mukim 26 

situated at 321 

Joo Chiat Place 

14,947 Hospital 

building 

Medical 

centre 


building 

Medical 

centre 


and 

medical 

centre 

– 

– 

– 

– 

25,000 

10,800 

38,626 

19,940 

100 

4 

100 

4 

Freehold 

Freehold 

99-year lease 

commencing 

1 October 

1976 

99-year lease 

commencing 

1 October 

1976 

– 10,926 100 Freehold 

Shophouse Lot 5188 

Mukim 27 

situated at 

Block 210 

New Upper 

Changi Road 

#01-699 

Radiologic Clinic Lot 5350 

Mukim 5 

situated at 

Block 130 

Jurong East 

Street 13 

#01-219 

Overseas 

Gleneagles 

Medical Centre, 

a 212-bed 

private hospital 

1 Jalan 

Pangkor 

Penang, 

Malaysia 

380 Clinic – 380 100 86-year lease 

commencing 

1 July 1992 

145 Clinic – 145 100 91-year lease 

commencing 

1 April 1993 


building 

– 18,600 70 Freehold 

Warehouse and 

store 

Lot 2301/U2 

Mukim 1 

situated at 213 

Henderson 

Road, #01-02, 

#02-02, #03- 

02, #04-02 

Henderson 

Industrial Park 

940 Warehouse 

and store 

– 940 100 Freehold 

116 

117 






2 Interested person transactions 

Interested Person 

Aggregate value of all 

transactions during the 

financial year ended 31/12/06 

(excluding transactions 

less than $100,000 and 

transactions conducted under 

a shareholders’ mandate 

pursuant to 

Rule 920 of the 

SGX-ST Listing 

Manual) 

Aggregate value of all 

transactions conducted 

under a shareholders’ 

mandate pursuant to 

Rule 920 of the 

SGX-ST Listing 

Manual (excluding 

transactions less than 

$100,000) 

$’000 $’000 


- Professional fees paid by the Group 152 – 




4 Corporate governance statement 

The Company is committed to complying with the Code of Corporate Governance issued by the Corporate 

Governance Committee in March 2001 and revised in 2005 (“CCG 2005”) so as to ensure greater transparency 

and protection of shareholders’ interests. This statement outlines the main corporate governance practices 

that are adopted by the Company. 

Board of Directors 

Role of the Board of Directors 

The primary role of the board of directors of the Company (“the Board”) is to protect and enhance long-term 

shareholder value. It sets the overall strategy for the Group and supervises the management of the Group 

(“the Management”). It is also responsible for the overall corporate governance of the Group including 

setting its strategic direction, establishing goals for Management and monitoring the achievement of these 

goals. 

Board Processes 

To assist in the execution of its responsibilities, the Board has established the following specialised committees 

(CCG 2005, Guideline 1.3): 

3 Material contracts 

Except as disclosed in Interested Person Transactions, there were no other material contracts of the Company 

or its subsidiaries involving the interests of the Chief Executive Officer, each director or controlling shareholder, 

either still subsisting at the end of the financial year or if not then subsisting, entered into since the end of 

the previous financial year. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

the Executive Committee; 

the Audit Committee; 

the Nominating Committee; 

the Remuneration Committee; 

the Share Option Scheme Committee*; 

the Management Committee; 

the Share Purchase Committee; and 

the Strategic Planning Committee. 

* This Committee was dissolved on 9 November 2006 

Each of the above committees has its respective written mandates and operating procedures, which will be 

reviewed on a regular basis. 

The Board intends to hold about four scheduled meetings each year. It may, however, hold unscheduled 

strategy meetings and/or emergency meetings to address/consider certain specific significant matters or 

transactions that may arise from time to time. The Articles of Association of the Company allow Board 

meetings to be conducted by way of telephonic and video conference (CCG 2005, Guideline 1.4). 

118 

119 






4 Corporate governance statement (Cont’d) 

Directors’ meetings held in 2006 

During the financial year ended 31 December 2006, the Board held five meetings. The Directors’ attendance 

at those meetings are disclosed below (CCG 2005, Guideline 1.4): 


Board meetings attended 





As at the date of this report, the Board comprises ten suitably qualified members (CCG 2005, Guidelines 2.4 

and 4.6): 


Date of 

appointment 

Nature of 

appointment 

Prime 

function 

Other functions 

Academic and 

professional 

qualifications 

Richard Seow Yung Liang 5 

Sunil Chandiramani 5 

Dr Lim Cheok Peng 5 

Alain Ahkong Chuen Fah 5 

Daniel Ashton Carroll* - 

Chang See Hiang 5 

Timothy David Dattels 4 

Ho Kian Guan 3 

Dr Ronald Ling Jih Wen 4 

Ashish Jaiprakash Shastry 4 

David R. White 1 

Ho Kian Hock (alternate to Ho Kian Guan) 2 

*Retired on 12 April 2006 

Richard Seow 

Yung Liang 

Age: 44 


Age: 44 

10/06/2005 Non-executive/ 

independent 


independent 

Chairman 

Vice 

Chairman 

Chairman of Executive 

and Strategic Planning 

Committees, and 

Member of Share 

Option Scheme # , 

Remuneration, Share 

Purchase, Nominating 

and Management 

Committees 

Member of Executive, 

Share Option Scheme # , 


Purchase and 

Nominating Committees 

BS (Economics), 

MBA (Finance) 

B Com (Hons), 

MBA 

Matters Requiring Board Approval 

The Board meets to consider the following, without limitation, corporate events and/or actions (CCG 2005, 

Guideline 1.5): 

• approval of quarterly results announcements; 

• approval of the annual report and financial statements; 

• declaration of interim dividends and proposal of final dividends; 

• approval of corporate strategies; 


Age: 60 

Alain Ahkong 

Chuen Fah 

Age: 59 

07/06/2000 Executive/ 

nonindependent 


independent 

Managing 

Director 

Member 

Chairman of 

Management 

Committee, and 

Member of Executive 

and Strategic Planning 

Committees 

Chairman of Audit 

Committee and 

Member of 

Nominating Committee 

MBBS, 

M. Med. Int. Med., 

MRCP, 

FRCP (Edin), 

FRCP (Glasg), 

FAMS 

(Cardiology) 

Chartered Tax 

Adviser 

• authorisation of major transactions; and 

• convening of shareholders’ meetings. 

Training for Directors 

The directors may participate in seminars and/or discussion groups to keep abreast of latest developments 

which are relevant to the Group (CCG 2005, Guideline 1.6). 

Board Composition and Balance 

The names of the directors of the Company in office as at the date of this report are set out in the Directors’ 

Report. The Board has reviewed its composition and is satisfied that such composition is appropriate. The 

Board will constantly examine its size with a view to determining its impact upon its effectiveness (CCG 2005, 

Guideline 2.3). 


Age: 53 


Age: 49 

Ho Kian Guan 

Age: 61 


independent 


independent 


independent 

Member 

Member 

Member 

Chairman of 

Nominating and 

Share Purchase 


Member of Audit 

Committee 

Chairman of Share 

Option Scheme # and 

Remuneration 


Member of 


Member of Audit 

and Share Purchase 

Committees 

LL.B (Hons) 

BA (Hons), MBA 

BA Comm 

120 

121 











Dr Ronald Ling 

Jih Wen 

Age: 42 

Date of 

appointment 

Nature of 

appointment 


independent 

Prime 

function 

Member 

Other functions 

Member of Strategic 

Planning Committee 

Academic and 

professional 

qualifications 

MBBS, MA Hons 

(Oxon), MBA 

(INSEAD) 


Chairman and Managing Director 

There is a clear division of responsibilities between the Chairman and the Managing Director, which ensures 

that there is a balance of power and authority at the top of the Group. The posts of Chairman and Managing 

Director are kept separate and these positions are held by Mr Richard Seow Yung Liang and Dr Lim Cheok 

Peng respectively (CCG 2005, Principle 3 and Guideline 3.1). 

Ashish Jaiprakash 

Shastry 

Age: 31 


independent 

Member 

Member of Executive, 

Share Option Scheme # , 


Purchase, Audit, 

Strategic Planning 

and Management 

Committees 

A.B. in Econs 

(Hons) 

The Board has delegated the day-to-day running of the Group to the Managing Director and members of the 

Executive Committee. Both the Chairman and the Managing Director shall ensure an appropriate balance 

of power, increased accountability and greater capacity of the Board for independent decision making (CCG 

2005, Guideline 3.1). The Chairman shall, in addition: 

(a) 

(b) 

lead the Board to ensure its effectiveness on all aspects of its role and set its agenda; 

ensure that the directors receive accurate, timely and clear information; 

David R. White 

Age: 59 

Ho Kian Hock * 

Age: 59 


independent 


independent 

Member 

Member of Strategic 

Planning Committee 

BS, MS 

Member – BSc Engineering 

(c) 

(d) 

(e) 

ensure effective communication with shareholders; 

encourage constructive relations between the Board and the Management; 

facilitate the effective contribution of non-executive directors in particular; 

* Alternate to Ho Kian Guan 

# 

This Committee was dissolved on 9 November 2006 

Particulars of interests of directors who held office at the end of the financial year in shares, debentures, 

warrants and share options in the Company and in related corporations (other than wholly-owned subsidiaries) 

are set out in the Directors’ Report. 

Independent Members of the Board of Directors 

The Board has nine independent members, representing 90% of the Board. They are 

Mr Richard Seow Yung Liang, Mr Sunil Chandiramani, Mr Alain Ahkong Chuen Fah, 

Mr Chang See Hiang, Mr Timothy David Dattels, Mr Ho Kian Guan, Dr Ronald Ling Jih Wen, Mr Ashish 

Jaiprakash Shastry and Mr David R. White. The criterion of independence is based on the definition given 

in the CCG 2005. The Board considers an “independent” director as one who has no relationship with the 

Company, its related companies or its officers that could interfere, or be reasonably perceived to interfere, 

with the exercise of the director’s independent business judgement with a view to the best interests of the 

Company (CCG 2005, Guideline 2.1). 

Non-executive members of the Board exercise no management functions in the Company or any of its 

subsidiaries. Although all the directors have equal responsibility for the performance of the Group, the role 

of the non-executive directors is particularly important in ensuring that the performance of Management in 

meeting agreed goals and objectives is reviewed and the reporting of performance is monitored; and the 

strategies proposed by the Management are fully discussed, rigorously examined and shall take into account 

the long-term interests of the shareholders, employees, customers, suppliers and the communities in which 

the Group conducts its business (CCG 2005, Guideline 2.5). 

(f) 

encourage constructive relations between the executive director and non-executive directors; and 

(g) promote high standards of corporate governance (CCG 2005, Guideline 3.2). 

Board Committees 

To assist the Board in the execution of its duties, the Board has delegated specific functions to the following 

committees (CCG 2005, Guideline 1.3): 

Executive Committee 

The Executive Committee was established in February 1987. It is currently chaired by Mr Richard Seow Yung 

Liang and comprises both non-executive directors and the executive director. The Executive Committee is 

entrusted with the review of the Group’s business and affairs, in line with the overall strategy set by the 

Board. Meetings of the Executive Committee are held regularly. 

There were ten meetings held during the year and attendance was as follows (CCG 2005, Guideline 1.4): 

Name of director Appointment Number of meetings attended 

Richard Seow Yung Liang (Chairman) Non-executive Director 10 

Sunil Chandiramani (Member) Non-executive Director 10 

Dr Lim Cheok Peng (Member) Executive Director 10 

Ashish Jaiprakash Shastry (Member) Non-executive Director 10 

122 

123 







Audit Committee 

The Audit Committee was established in June 1990. It is currently chaired by Mr Alain Ahkong Chuen Fah 

and comprises three other non-executive directors, namely Mr Chang See Hiang, Mr Ho Kian Guan and Mr 

Ashish Jaiprakash Shastry. All four directors are non-executive and independent (CCG 2005, Guidelines 11.1 

and 11.8). 

The Audit Committee assists the Board in fulfilling its responsibilities in financial reporting, management of 

financial and control risks, and monitoring of the internal control systems. 

The Board is of the view that the members of the Audit Committee are appropriately qualified to discharge 

their responsibilities and they have accounting and/or related financial management expertise or business 

experience, as the Board interprets such qualification in its business judgement (CCG 2005, Guideline 

11.2). 

The Audit Committee has explicit authority to investigate any matter within its terms of reference, full access 

to and co-operation by the Management and full discretion to invite any director or executive officer to 

attend its meetings, and reasonable resources to enable it to discharge its functions properly (CCG 2005, 


The Audit Committee has reviewed the scope and results of the audit and its cost effectiveness and the 

independence and objectivity of the external auditors and such reviews are conducted on an annual basis 

(CCG 2005, Guidelines 11.4(a) and 11.6). Where the external auditors also supply a substantial volume of 

non-audit services to the Company, the Audit Committee shall keep the nature and extent of such services 

under review so as to seek to balance the maintenance of objectivity and value for money (CCG 2005, 

Guideline 11.4(a)). 

The Audit Committee can hold meetings with the external auditors, without the presence of the Management, 

to discuss any matters that the Audit Committee or the auditors believe should be discussed in private (CCG 

2005, Guideline 11.5). 

The Audit Committee has reviewed and will review the significant financial reporting issues and judgements, 

formal announcements relating to the Company’s financial performance, the adequacy of internal controls, 

the management of financial risks, the effectiveness of the Company’s internal audit function, and the Group’s 

process for monitoring compliance with the laws and regulations and its own code of business conduct (CCG 

2005, Guidelines 11.4(b) to (e)). 

The Audit Committee shall review arrangements by which staff of the Company may, in confidence, raise 

concerns about possible improprieties in matters of financial reporting or other matters. The Audit Committee 

shall ensure that arrangements are in place for independent investigation of such matters and for appropriate 

follow up action (CCG 2005, Guideline 11.7). 

The Audit Committee has reviewed the Company’s risk management policies and systems, internal financial 

controls, operational and compliance controls. Based on the Internal Auditor’s reports, as applicable, and the 

internal controls in place, it is satisfied that there are adequate internal controls in the Company (CCG 2005, 






There were four meetings held during the year and attendance was as follows (CCG 2005, Guideline 11.8): 


Alain Ahkong Chuen Fah (Chairman) Non-executive/independent 4 

Chang See Hiang (Member) Non-executive/independent 4 

Ho Kian Guan (Member) Non-executive/independent 3 

Ashish Jaiprakash Shastry (Member) Non-executive/independent 3 


The Nominating Committee was established on 24 February 2003 and comprises five independent directors, 

namely Mr Chang See Hiang (Chairman), Mr Richard Seow Yung Liang, Mr Sunil Chandiramani, Mr Alain 

Ahkong Chuen Fah and Mr Timothy David Dattels (CCG 2005, Guideline 4.1). 

The role of the Nominating Committee is to: 

(a) 

(b) 

(c) 

make recommendations to the Board on all Board and Board committees appointments and renominations, 

including recommending the Chairman for the Board and for each Board committee (CCG 

2005, Guidelines 4.1 and 4.2); 

determine annually whether a director is independent and whether he is able to carry out his duties as 

a director (CCG 2005, Guidelines 4.3 and 4.4); and 

assess the effectiveness of the Board as a whole and the contribution by each individual director to the 

effectiveness of the Board (CCG 2005, Principle 5). 

The Nominating Committee has adopted a formal assessment process to evaluate the Board’s performance 

and contribution of each individual director by (a) reviewing a completed individual director self-assessment 

form, and (b) using a board self-assessment checklist (CCG 2005, Guidelines 5.1 and 5.4). The Nominating 

Committee has also adopted internal guidelines to address the competing time commitments that are faced 

when directors serve on multiple boards (CCG 2005, Guidelines 4.4 and 5.4). 

The Nominating Committee has adopted a set of performance criteria that is linked to long-term shareholders’ 

value to be used for performance evaluation of the Board. The set of performance criteria includes the 

Company’s share price performance over a five year period benchmarked against the Singapore Straits Times 

Index and against the benchmark index of the Company’s industry peers, return on assets, return on equity 

and profitability on capital employed (CCG 2005, Guidelines 5.2 , 5.3 and 5.5). 

The Nominating Committee will also review and recommend to the Board on the appointment of key 

executives, including but not limited to the Managing Director. 

The Internal Auditor’s primary line of reporting is to the Chairman of the Audit Committee although the 

Internal Auditor also reports administratively to the Managing Director (CCG 2005, Guideline 13.1). 

The Audit Committee has reviewed the adequacy of the internal audit function by ensuring that the internal 

audit function is adequately resourced and has appropriate standing within the Company and such reviews 

are conducted on an annual basis (CCG 2005, Guidelines 13.3 and 13.4). 

124 

125 







There was one meeting held during the year and attendance was as follows (CCG 2005, Guideline 1.4): 

Name of director Appointment Number of meeting attended 

Chang See Hiang (Chairman) Non-executive/independent 1 

Richard Seow Yung Liang (Member) Non-executive/independent 1 

Sunil Chandiramani (Member) Non-executive/independent 1 

Alain Ahkong Chuen Fah (Member) Non-executive/independent 1 

Timothy David Dattels (Member) Non-executive/independent - 

Further to the disclosure set out under the Board Composition and Balance section of the Corporate 

Governance Statement, additional information on the directors is as follows (CCG 2005, Guideline 4.6): 


Date of last reelection 

as a director 

Directorships or chairmanships both present 

and those held over the preceding three years 

in other listed companies and other major 

appointments 

Richard Seow Yung Liang 12/4/2006 Twinwood Engineering Limited 

Lee Hing Development Limited 

Sunil Chandiramani 12/4/2006 Apollo Hospitals Enterprise Limited ** 

(Appointed wef 18/4/2005, resigned wef 4/8/2005) 

Strides Arcolab Ltd ** 

(Resigned wef 22/6/2005) 

Minor Corporation pcl 

(Appointed wef 19/4/2006, resigned wef 

27/6/2006) 

Dr Lim Cheok Peng 6/4/2005 Pantai Holdings Berhad* 

Alain Ahkong Chuen Fah 12/4/2006 Twinwood Engineering Limited 






Date of last reelection 

as a director 

Directorships or chairmanships both present 

and those held over the preceding three years 

in other listed companies and other major 

appointments 

Chang See Hiang 6/4/2005 Yeo Hiap Seng Limited 

Jardine Cycle & Carriage Limited 

MCL Land Limited 

Singapore Turf Club 

Timothy David Dattels 12/4/2006 Primedia Inc. 

Shangri-La Asia Ltd 

Asian Art Museum, San Francisco as Trustee 

Shenzhen Development Bank 

SingTao News Corp. Limited 

Ho Kian Guan 31/3/2004 Keck Seng (Malaysia) Berhad 

Pelangi Berhad 

Petaling Garden Berhad 

Shangri-la Hotel Ltd 

Shangri-la Asia Ltd 

Keck Seng Investments (HK) Ltd 

Dr Ronald Ling Jih Wen 12/4/2006 Strides Acrolab Ltd 

Twinwood Engineering Limited 

Ashish Jaiprakash Shastry 12/4/2006 Matrix Laboratories Limited ** 

(Resigned wef 8/1/2007) 

Pantai Holdings Berhad* 

Lee Hing Development Limited 

David R. White 12/4/2006 Iasis Healthcare Corporation 

Ho Kian Hock 

(alternate to Ho Kian 

Guan) 

N/A 

* The company was de-listed on 9/1/2007 

** Alternate director 

Keck Seng Investments (HK) Ltd 

Keck Seng (Malaysia) Berhad 

Shangri-la Hotel Ltd ** 

Shangri-la Asia Ltd ** 

Pelangi Berhad ** 

Petaling Garden Berhad ** 

126 

127 







Remuneration Committee 

The Remuneration Committee was established in March 1988. It is currently chaired by Mr Timothy David 

Dattels, an independent non-executive director and comprises three other independent non-executive 

directors, namely Mr Richard Seow Yung Liang, Mr Sunil Chandiramani and Mr Ashish Jaiprakash Shastry 

(CCG 2005, Guideline 7.1). 

The Remuneration Committee, which offers an independent perspective, reviews the remuneration packages 

and the procedures for fixing the remuneration packages of individual directors and key executives. However, 

members of the Remuneration Committee will ensure that they do not set their own remuneration (CCG 

2005, Principle 7). 

The Remuneration Committee will recommend a framework of remuneration for the Board and key executives 

and submit the recommended framework for endorsement by the entire Board (CCG 2005, Guideline 7.2). 

The Remuneration Committee shall: 

(a) 

(b) 

(c) 

ensure that non-executive directors should not be over-compensated to the extent that their independence 

may be compromised (CCG 2005, Guideline 8.2); 

have the authority to consult experts (inside and/or outside the Company) on the remuneration of all 

directors, if considered necessary (CCG 2005, Guideline 7.3); and 

recommend the remuneration of the non-executive directors for approval at the annual general meeting 

(“AGM”). 

In addition, the Remuneration Committee is responsible for the administration of the Parkway Performance 

Share Plan (“the Share Plan”) (approved by shareholders of the Company at an extraordinary general meeting 

held on 2 November 2006) in accordance with the rules of the Share Plan. The powers and duties of 

Remuneration Committee under the rules of the Share Plan include, inter alia, the determination and approval 

of the list of participants of the Share Plan, the number of shares which are the subject of an award, the date 

on which the award will be granted, the prescribed performance targets, the performance period, the vesting 

period (if any) and the extent which the shares under an award shall be released on the performance target(s) 

being satisfied. Members of the Remuneration Committee will ensure that they do not determine or approve 

the grant of any award to themselves (CCG 2005, Guideline 8.4). 

With effect from 9 November 2006, the Remuneration Committee was also assigned with the responsibility 

of administering the Parkway Share Option Scheme 2001 (“Parkway Scheme 2001”) in accordance with the 

rules of the scheme, to determine and approve the list of grantees of the share options, the date of the grant 

and the price thereof. Members of the Remuneration Committee will ensure that they do not determine or 

approve any grant of share options to themselves (CCG 2005, Guideline 8.4). 

There were three meetings held during the year and attendance was as follows (CCG 2005, Guidelines 1.4 

and 9.1): 


Timothy David Dattels (Chairman) Non-executive/independent 1 

Richard Seow Yung Liang (Member) Non-executive/independent 3 

Sunil Chandiramani (Member) Non-executive/independent 3 





Share Option Scheme Committee 

The Share Option Scheme Committee was established in January 2001 and comprised four independent, 

non-executive directors, namely Mr Timothy David Dattels (Chairman), Mr Richard Seow Yung Liang, Mr Sunil 

Chandiramani and Mr Ashish Jaiprakash Shastry. 

The Share Option Scheme Committee administered the Parkway Scheme 2001 in accordance with the rules 

of the scheme, and determined and approved the list of grantees of the share options, the date of the grant 

and the price thereof. Members of the Share Option Scheme Committee would ensure that they do not 

determine or approve any grant of share options to themselves. 

The Share Option Scheme Committee was dissolved on 9 November 2006 and the responsibility for the 

administration of the Parkway Scheme 2001 was assigned to the Remuneration Committee. 

There were two meetings held during the year and attendance was as follows (CCG 2005, Guideline 1.4): 


Timothy David Dattels (Chairman) Non-executive - 

Richard Seow Yung Liang (Member) Non-executive 2 

Sunil Chandiramani (Member) Non-executive 2 

Ashish Jaiprakash Shastry (Member) Non-executive 2 

Management Committee 

The Management Committee was established in April 1985 and comprises one executive director, Dr Lim 

Cheok Peng (Chairman) and two non-executive directors, Mr Richard Seow Yung Liang and Mr Ashish 

Jaiprakash Shastry. 

The duties of the Management Committee include approving of transfers, amalgamations and splitting of 

shares, transferable share subscriptions rights, loan stocks and the issue of new certificates to replace any 

lost certificates in respect of any of the above-mentioned securities and in respect of the Parkway Scheme 

2001. 

There were seven resolutions in writing circulated during the year with no physical meeting held. 

Share Purchase Committee 

The Share Purchase Committee was established in May 2003. It is currently chaired by Mr Chang See Hiang, 

an independent non-executive director and comprises four other independent non-executive directors, namely 

Mr Richard Seow Yung Liang, Mr Sunil Chandiramani, Mr Ho Kian Guan and Mr Ashish Jaiprakash Shastry. 

The role of the Share Purchase Committee is to determine/decide the number of shares of the Company to 

purchase and the price at which such shares may be purchased, for and on behalf of the Company. 

No shares were purchased during the financial year ended 31 December 2006. 

There was no resolution in writing circulated and no physical meeting held during the year. 

Ashish Jaiprakash Shastry (Member) Non-executive/independent 3 

128 

129 







Strategic Planning Committee 

The Strategic Planning Committee was established in July 2005. It is chaired by Mr Richard Seow Yung 

Liang and comprises four other members, namely, Dr Lim Cheok Peng, Dr Ronald Ling Jih Wen, Mr Ashish 

Jaiprakash Shastry and Mr David R. White. 

The Committee was established to explore, develop, and recommend medium and long-term business 

strategies and initiatives for the Group in the local, regional and international markets. 

There was one meeting held during the year and attendance was as follows (CCG 2005, Guideline Note 

1.4): 


Richard Seow Yung Liang (Chairman) Non-executive 1 

Dr Lim Cheok Peng (Member) Executive 1 

Dr Ronald Ling Jih Wen (Member) Non-executive 1 

Ashish Jaiprakash Shastry (Member) Non-executive - 

David R. White (Member) Non-executive 1 

Criteria for Board Membership 

Candidates for the Board are selected for their character, judgement, business experience and acumen. 

Scientific expertise, prior government service and familiarity with national and international issues affecting 

business will also be relevant criteria for consideration (CCG 2005, Guideline 2.4). In the selection and 

appointment of new directors to the Board, the Nominating Committee will evaluate the capabilities of the 

nominated new director taking into consideration his academic and professional qualifications, experience 

and where applicable, his shareholding in the Company and its subsidiaries as well as consider how such 

nominated new director will fit in the overall competent matrix of the Board before making its recommendation 

to the Board (CCG 2005, Guideline 4.5). 

Where a director has multiple board representations, the Nominating Committee will evaluate whether or not 

a director is able to and has been adequately carrying out his duties as director of the Company (CCG 2005, 

Guideline 4.4). Final approval of a candidate is determined by the Board. New directors may be appointed by 

way of a Board resolution upon the recommendation of the Nominating Committee but such directors shall 

submit themselves for re-election at the next AGM. 

The Articles of Association of the Company provide that at each AGM of the Company, one-third of the 

directors, including the Managing Director, shall retire from office by rotation provided always that every 

director, including a managing director, shall retire from office at least once in every three years (CCG 2005, 

Guideline 4.2). The selection of directors to retire is on the basis of those who have been longest in office 

since their last election and as between directors of equal seniority, the directors to retire shall be selected 

from among them by agreement or, in the absence thereof, by lot. A retiring director is eligible for re-election 

by shareholders of the Company at the AGM. 





Access to Information 

The Company fully recognises that the continual flow of relevant information on an accurate and timely basis 

is critical for the Board to be effective in the discharge of its duties. 

Accordingly, directors will receive a regular supply of information from Management about the Group so that 

they are equipped to play as full a part as possible in Board meetings. Detailed Board papers are prepared 

for each meeting of the Board. The Board papers shall include sufficient information from Management on 

financial, business and corporate issues of the Company to enable the directors to be properly briefed on 

issues to be considered at Board meetings. Information provided shall include background or explanatory 

information relating to matters to be brought before the Board, copies of disclosure documents, budgets, 

forecasts and monthly internal financial statements (CCG 2005, Guidelines 6.1 and 6.2). 

All directors shall have unrestricted access to the Group’s records and information and shall receive detailed 

financial and operational reports from the Management so as to enable them to carry out their duties. 

Directors may also liaise with the Management, and may consult with other employees and seek additional 

information if required (CCG 2005, Guidelines 6.1 and 6.2). 

In addition, directors shall have separate and independent access to advices and services of the Company 

Secretary, who is responsible to the Board for advising on and implementation of the Group’s compliance 

requirements pursuant to the relevant statutes and regulations. Under the direction of the Chairman, the 

Company Secretary’s responsibilities shall include ensuring good information flows within the Board and 

its committees and between Management and Non-executive Directors, as well as facilitating orientation 

and assisting with professional development as required. The Company Secretary should attend all Board 

meetings (CCG 2005, Guideline 6.3). 

The appointment and the removal of the Company Secretary shall be a matter for the Board as a whole (CCG 

2005, Guideline 6.4). 

Each director has the right to seek independent legal and other professional advice, at the Company’s expense, 

concerning any aspect of the Group’s operations or undertakings in order to fulfil his role and responsibilities 

as a director (CCG 2005, Guideline 6.5). 

Remuneration Matters 

The Group’s remuneration policy is to provide compensation packages at market rates which will reward 

successful performance and attract, retain and motivate managers and directors (CCG 2005, Principles 8 and 

9, Guideline 8.5). 

The Company currently does not have a formal service contract with non-executive directors. The executive 

director has a service contract, which is subject to termination by the relevant subsidiary of the Company by 

giving not less than three months’ notice (CCG 2005, Guidelines 8.3 and 8.6). 

Company’s directors receiving remuneration from the Group for the years ended 31 December 2006 and 31 

December 2005 are set out below (CCG 2005, Guidelines 9.1 and 9.2): 

Remuneration band 

Number of directors 


130 

S$750,000 and above 1 2 

S$500,000 to below S$750,000 – – 

S$250,000 to below S$500,000 – – 

Below S$250,000 10 14 

Total 11 16 

131 







Summary compensation table for the directors of the Company and key executives of the Group for the year 

ended 31 December 2006 is set out below (CCG 2005, Guidelines 9.1 and 9.2): 

Directors of the Company 

Salary Bonus Fees 

Allowances 

and other 

benefits Total 

% % % % % 

S$750,000 and above 

Dr Lim Cheok Peng 51 48 – 1 100 

Below S$250,000 

Richard Seow Yung Liang – – 100 – 100 

Sunil Chandiramani – – 100 – 100 

Alain Ahkong Chuen Fah – – 100 – 100 

Daniel Ashton Carroll * – – 100 – 100 

Chang See Hiang – – 100 – 100 

Timothy David Dattels – – 100 – 100 

Ho Kian Guan – – 100 – 100 

Dr Ronald Ling Jih Wen – – 100 – 100 

Ashish Jaiprakash Shastry – – 100 – 100 

David R. White – – 100 – 100 

* Retired on 12 April 2006 

Key Executives of the Group 

S$500,000 to below S$750,000 

Daniel James Snyder 53 37 – 10 100 

Molly Foo 64 31 – 5 100 

Vivek Jetley 83 7 – 10 100 

S$250,000 to below S$500,000 

Choo Oi Yee 72 28 – – 100 

June Tay 66 28 – 6 100 

Bella Ong 70 24 – 6 100 

Nellie Tang 60 35 – 5 100 

Dr Goh Jin Hian 66 29 – 5 100 

Lim Poh Suan 61 31 – 8 100 

George Pusavat 62 31 – 7 100 

Below S$250,000 

Dr Timothy Low ** 75 19 – 6 100 

** for the period 1/1/2006 to 30/6/2006 





The Company does not have any long-term incentive scheme apart from the existing Parkway Scheme 2001 

and the Share Plan (CCG 2005, Guidelines 9.2 and 9.4). Details of the Parkway Scheme 2001 and the Share 

Plan are set out in the Directors’ Report (CCG 2005, Guidelines 8.4 and 9.4). 

None of the employees holding managerial position within the Group during the year was an immediate 

family member of any director or the Managing Director of the Company (CCG 2005, Guideline 9.3). 

Accountability and Audit 

In presenting the annual financial statements and quarterly announcements to Shareholders, it is the aim 

of the Board to provide Shareholders with a balanced and comprehensible assessment of the Group’s 

performance, position and prospects which extends to interim and other price sensitive public reports, and 

reports to regulators (if required) (CCG 2005, Guideline 10.1). Management currently provides the Board 

with appropriately detailed management accounts of the Group’s performance, position and prospects on a 

monthly basis (CCG 2005, Guideline 10.2). 

Internal Controls 

The Board acknowledges that it is responsible for the overall internal control framework, but recognises that 

no cost effective internal control system will preclude all errors and irregularities, as a system is designed to 

manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable 

and not absolute assurance against material misstatement or loss. Nonetheless, the Audit Committee will: 

(a) 

(b) 

(c) 

(d) 

satisfy itself, by such means as it shall consider appropriate, that adequate counter measures (i.e. 

mechanisms and processes, such as sound internal control systems) are in place to identify and mitigate 

any material business risks associated with the Group; 

ensure that a review of the effectiveness and adequacy of the Group’s internal controls, including 

financial, operational and compliance controls, and risk management policies and systems, is conducted 

at least annually. Such review can be carried out by internal and/or external auditors (CCG 2005, 

Guideline 12.1); 

ensure that the internal control recommendations made by internal and external auditors have been 

implemented by the Management; and 

ensure that the Board is in the position to comment on the adequacy of the internal controls of the 

Group. 

Based on the Audit Committee’s review, the Board is satisfied that there are adequate internal controls 

including financial, operational, compliance controls and risk management systems in the Company (CCG 

2005, Guideline 12.2). 

Internal Audit 

The Group has an in-house internal audit function that is independent of the activities it audits (CCG 2005, 

Principle 13). The internal audit unit was established in 1996 to review the effectiveness of the material 

internal controls of the Group. The internal auditors are expected to meet or exceed the standards set 

by nationally or internationally recognised professional bodies including the Standards for the Professional 

Practice of Internal Auditing set by The Institute of Internal Auditors (CCG 2005, Guideline 13.2). 

In this framework, the internal audit function provides reasonable assurance that the risks incurred by the 

Group in its activities have been identified, analysed and adequately managed by the Management. Internal 

audit also makes recommendations to enhance the effectiveness and efficiency of the Group. 

132 

133 






Analysis of Shareholdings 

as at 27 February 2007 


Communication with Shareholders 

In line with continuous disclosure obligations of the Company, pursuant to the SGX-ST Listing Manual and 

the Singapore Companies Act, Chapter 50 (the Act), the Board’s policy is that Shareholders are informed of 

all major developments of the Group. 

Information shall be communicated to Shareholders on a timely basis. Where there is inadvertent disclosure 

made to a selected group, the Company will make the same disclosure publicly as soon as practicable (CCG 

2005, Guideline 14.2). Communication is made through: 

RANGE OF SHAREHOLDINGS 

NO. OF 

SHAREHOLDERS 

% NO. OF SHARES % 

1 to 999 412 8.70 130,069 0.02 

1,000 to 10,000 3,303 69.76 13,050,653 1.70 

10,001 to 1,000,000 1,004 21.20 36,539,204 4.76 

1,000,001 AND ABOVE 16 0.34 717,945,984 93.52 

TOTAL 4,735 100.00 767,665,910 100.00 

TOP TWENTY SHAREHOLDERS AS AT 27 FEBRUARY 2007 

(as shown in the Register of Members) 

(a) 

annual reports that are prepared and issued to Shareholders. The Board makes every effort to ensure 

that the annual report includes all relevant information about the Group, including future developments 

and other disclosures required by the Act and Singapore Financial Reporting Standards; 

NO. NAME OF SHAREHOLDERS NO. OF SHARES % 

1 RAFFLES NOMINEES PTE LTD 159,609,625 20.79 

2 DBS NOMINEES PTE LTD 122,360,476 15.94 

3 HSBC (SINGAPORE) NOMINEES PTE LTD 72,954,068 9.50 

4 NEWBRIDGE SINGAPORE CO-INVESTMENT PTE LTD 64,560,810 8.41 

5 NEWBRIDGE SINGAPORE HEALTHCARE PARTNERS PTE LTD 59,594,594 7.76 

6 NEWBRIDGE SINGAPORE MEDICAL PARTNERS PTE LTD 59,594,594 7.76 

7 CITIBANK NOMINEES S’PORE PTE LTD 51,718,729 6.74 

8 UNITED OVERSEAS BANK NOMINEES PTE LTD 44,723,400 5.82 

9 DBSN SERVICES PTE LTD 37,285,583 4.86 

10 MERRILL LYNCH (SINGAPORE) PTE LTD 26,773,340 3.49 

11 MORGAN STANLEY ASIA (SINGAPORE) PTE LTD 11,178,141 1.46 

12 DB NOMINEES (S) PTE LTD 2,834,224 0.37 

13 OCBC NOMINEES SINGAPORE PTE LTD 1,370,200 0.18 

14 LIM CHEOK PENG 1,183,350 0.16 

15 ROYAL BANK OF CANADA (ASIA) LTD 1,153,350 0.15 

16 HEXACON CONSTRUCTION PTE LTD 1,051,500 0.14 

17 LEE FOUNDATION 827,561 0.11 

18 LEE LATEX PTE LIMITED 755,697 0.10 

19 UNIVERSITY OF MALAYSIA 710,640 0.09 

20 OCBC SECURITIES PRIVATE LTD 663,403 0.09 

(Others - Less than 663,403 shares each) 46,762,625 6.09 

TOTAL 767,665,910 100.00 

(b) 

quarterly results announcements comprising a summary of the financial information and affairs of the 

Group for the relevant period; 

(c) 

(d) 

notices of and explanatory memoranda for annual general meetings and extraordinary general 

meetings; 

press and analyst briefings for the Group’s financial results as well as other briefings, as appropriate; 

(e) 

press releases on major developments of the Group; 

(f) 

disclosures to the SGX-ST; and 

(g) 

the Group’s website at http://www.parkwayholdings.com at which Shareholders can access information 

on the Group. 

In addition, Shareholders are encouraged to attend the AGM to ensure a high level of accountability and to stay 

informed of the Group’s strategy and goals. The AGM is the principal forum for dialogue with Shareholders. 

The chairpersons of the Audit Committee, Nominating Committee and/or Remuneration Committee shall be 

present and available to address questions at general meetings. The external auditor shall also be present to 

assist the directors in addressing any relevant queries by Shareholders (CCG 2005, Guideline 15.3). 

The notice of the AGM is despatched to Shareholders, together with explanatory notes or a circular on items 

of special business, at least 16 days before the meeting. The Board welcomes questions from Shareholders 

who have an opportunity to raise issues either informally or formally before or at the AGM (CCG 2005, 


Each item of special business included in the notice of the meeting is accompanied, where appropriate, by an 

explanation for the proposed resolution. Separate resolutions are proposed for substantially separate issues 

at the meeting (CCG 2005, Guideline 15.2). 

5 Dealings in Securities 

PUBLIC FLOAT 

Rule 723 of the Listing Manual of the Singapore Exchange Securities Trading Limited requires that at least 10% of the equity 

securities (excluding preference shares and convertible equity securities) of a listed company in a class that is listed is at all times 

held by the public. The Company has complied with this requirement. As at 27 February 2007, approximately 47.55% of its 

ordinary shares listed on the Singapore Exchange Securities Trading Limited were held in the hands of the public. 

The Company has issued a policy on dealings in the securities of the Company to its directors and Management, 

setting out the implications of insider trading and guidance on such dealings. It has adopted the best 

practices on dealings in securities as set out in Rule 1207 (18) of the SGX-ST Listing Manual. 

SUBSTANTIAL SHAREHOLDERS AS AT 27 FEBRUARY 2007 

(as shown in the Register of Substantial Shareholders) 

NO. NAME OF SHAREHOLDERS 

BENEFICIAL 

SHAREHOLDINGS 

DEEMED 

SHAREHOLDINGS 

1 BLUM CAPITAL PARTNERS, L.P. Note 1 - 208,107,988 

2 BLUM G.A. III, LLC Note 1 - 208,107,988 

3 BLUM INVESTMENT PARTNERS, INC. Note 1 - 208,107,988 

4 COBALT LIMITED - 57,113,998 - 

5 DINAKAR SINGH Note 2 - 95,594,474 

6 DINAKAR SINGH LLC Note 2 - 95,594,474 

7 DINAKAR SINGH II LLC Note 5 - 61,486,486 

134 

135 



Analysis of Shareholdings 

as at 27 February 2007 

SUBSTANTIAL SHAREHOLDERS AS AT 27 FEBRUARY 2007 (Cont’d) 

(as shown in the Register of Substantial Shareholders) 

NO. 

NAME OF SHAREHOLDERS 

BENEFICIAL 

SHAREHOLDINGS 

DEEMED 

SHAREHOLDINGS 

8 FMR CORP. - 53,144,949 

9 JEFFREY D. EKBERG Note 7 - 56,756,757 

10 MATTHEWS INTERNATIONAL CAPITAL 

MANAGEMENT, LLC 

- - 36,573,000 

11 NEWBRIDGE ASIA III, L.P. Note 3 - 89,864,745 

12 NEWBRIDGE ASIA IV, L.P. Note 7 - 56,756,757 

13 NEWBRIDGE ASIA ADVISORS III, INC. Note 4 - 151,351,231 

14 NEWBRIDGE ASIA ADVISORS IV, INC. Note 7 56,756,757 

15 NEWBRIDGE ASIA GENPAR III, L.P. Note 4 - 151,351,231 

16 NEWBRIDGE ASIA GENPAR IV, L.P. Note 7 - 56,756,757 

17 NEWBRIDGE MAURITIUS CO-INVESTMENT LIMITED Note 5 - 61,486,486 

18 NEWBRIDGE MAURITIUS HEALTHCARE PARTNERS LIMITED Note 6 - 56,756,757 

19 NEWBRIDGE MAURITIUS MEDICAL PARTNERS LIMITED Note 7 - 56,756,757 

20 NEWBRIDGE PARKWAY, L.P. Note 5 - 61,486,486 

21 NEWBRIDGE PARKWAY III, L.P. Note 6 - 56,756,757 

22 NEWBRIDGE PARKWAY IV, L.P. Note 7 - 56,756,757 

23 NEWBRIDGE SINGAPORE CO-INVESTMENT PTE. LTD. - 61,486,486 - 

24 NEWBRIDGE SINGAPORE HEALTHCARE 

PARTNERS PTE. LTD. 

- 56,756,757 - 

25 NEWBRIDGE SINGAPORE MEDICAL PARTNERS PTE. LTD. - 56,756,757 - 

26 NEWTON INVESTMENT MANAGEMENT LIMITED - - 44,721,000 

27 RICHARD C BLUM Note 1 - 208,107,988 

28 TARRANT ADVISORS, INC. Note 1 - 208,107,988 

29 TPG-AXON CAPITAL MANAGEMENT, L.P. Note 2 - 95,594,474 

30 TPG-AXON GP, LLC Note 2 - 95,594,474 

31 TPG HF MANAGEMENT, LLC Note 2 - 95,594,474 

32 TPG-AXON PARTNERS (OFFSHORE), LTD Note 8 - 95,594,474 

33 TPG-AXON PARTNERS, L.P. Note 5 - 61,486,486 

34 TPG-AXON PARTNERS GP, L.P. Note 5 - 61,486,486 

Note 1 - Deemed interest by virtue of being associated with Newbridge Asia III, L.P. (“Newbridge”), Newbridge Singapore Medical Partners 

Pte. Ltd. (“NSMP”) and Newbridge Singapore Co-Investment Pte. Ltd. (“NSCI”) under Section 7 of the Companies Act. 

Note 2 - Deemed interest by virtue of being associated with TPG-Axon Partners (Offshore), Ltd (“TPG-Axon”) under Section 7 of the 

Companies Act. 

Note 3 - (i) Deemed interest by virtue of being associated with Newbridge Singapore Healthcare Partners Pte. Ltd. (“NSHP”) under Section 

7 of the Companies Act. 

(ii) Deemed interested in 2,000 shares in Parkway held by Dr Lim Cheok Peng (“LCP”) pursuant to an agreement dated 10 June 

2005 between LCP, Newbridge and TPG-Axon. 

(iii) Deemed interested in 33,105,988 shares in Parkway collectively held by Keck Seng Malaysia Berhad (“KS Malaysia”), Ocean 

Inc. (“Ocean”) and their respective affiliates and nominees pursuant to an agreement dated 6 July 2005 between KS Malaysia, 

Ocean, Newbridge and TPG-Axon. 

Note 4 - Deemed interest by virtue of being associated with NSCI and Newbridge under Section 7 of the Companies Act. 

Note 5 - Deemed interest by virtue of being associated with NSCI under Section 7 of the Companies Act. 

Note 6 - Deemed interest by virtue of being associated with NSHP under Section 7 of the Companies Act. 

Note 7 - Deemed interest by virtue of being associated with NSMP under Section 7 of the Companies Act. 

Note 8 - (i) Deemed interest by virtue of being associated with NSCI under Section 7 of the Companies Act. 

(ii) Deemed interested in 1,002,000 shares in Parkway held by LCP pursuant to an agreement dated 10 June 2005 between LCP, 

Newbridge and TPG-Axon. 

(iii) Deemed interested in 33,105,988 shares in Parkway collectively held by KS Malaysia, Ocean and their respective affiliates and 

nominees pursuant to an agreement dated 6 July 2005 between KS Malaysia, Ocean, Newbridge and TPG-Axon. 

Notice of Annual General Meeting 


(Co. Reg. No. 197400320R) 

NOTICE IS HEREBY GIVEN That the Thirty-Fourth Annual General Meeting of the Company will be held on Thursday, 

12 April 2007 at 11.00 am at The Lecture Theatre, Level 3, Gleneagles Hospital, 6A Napier Road, Singapore 

258500 for the purpose of transacting the following businesses:- 

1. To receive and, if approved, to adopt the Directors’ Report and Audited Accounts for the year ended 31st 

December 2006 and the Auditors’ Report thereon. 

2. To declare a Final Dividend of 5.5 cents per ordinary share less tax in respect of the year ended 31st December 

2006. 

3. (a) To re-elect Mr. Ranvir Dewan who retires pursuant to Article 83 of the Articles of Association of the 

Company, as Director of the Company. 

(b) To re-elect Mr. Steven Joseph Schneider who retires pursuant to the Article 83 of the Articles of 

Association of the Company, as Director of the Company. 

4. (a) To re-elect Dr. Lim Cheok Peng who retires pursuant to Article 97 of the Articles of Association of the 


(b) To re-elect Mr. Chang See Hiang who retires pursuant to Article 97 of the Articles of Association of the 


(c) To re-elect Mr. Ho Kian Guan who retires pursuant to Article 97 of the Articles of Association of the 


5. To approve Directors’ Fees of $702,575 for 2006 (2005: $679,863). 

6. To re-appoint Messrs. KPMG as Auditors and to authorise the Directors to fix their remuneration. 

7. As Special Business:- 

To consider and, if thought fit, to pass (with or without modifications) the following resolutions (a), (b) and (c) 

as ordinary resolutions:- 

(a) That subject to Section 161 of the Companies Act, Cap. 50 of Singapore, the Articles of Association of the 

Company and the approval of the relevant Stock Exchange and/or other governmental or regulatory bodies 

where such approval is necessary, the Board of Directors of the Company be and is hereby authorised to 

allot and issue shares and convertible securities in the Company at any time to such persons, upon such 

terms and conditions and for such purposes as the Board of Directors may deem fit PROVIDED ALWAYS 

THAT:- 

(I) the aggregate number of shares to be issued pursuant to this Resolution does not exceed fifty per 

cent. of the issued shares of the Company at the time of the passing of this Resolution, of which 

the aggregate number of shares issued other than on a pro rata basis to existing shareholders does 

not exceed twenty per cent. of the Company’s issued shares; 

(II) (subject to such manner of calculation as prescribed by the Singapore Exchange Securities Trading 

Limited (the “SGX-ST”)) for the purpose of determining the aggregate number of shares that 

may be issued under sub-paragraph (I) above, the percentage of the issued share capital of the 

Company is based on the Company’s issued share capital at the time of passing of this Resolution 

after adjusting for: 

(i) new shares arising from the conversion or exercise of convertible securities; 

136 

137 





(ii) new shares arising from the exercise of share options or vesting of share awards outstanding 

or subsisting at the time of the passing of this Resolution, provided the options or awards 

were granted in compliance with Part VIII of Chapter 8 of the SGX-ST Listing Manual; and 

(iii) any subsequent consolidation or subdivision of shares; and 

(III) (unless revoked or varied by the Company in general meeting) the authority conferred by this 

Resolution shall continue in force until the conclusion of the next Annual General Meeting of the 

Company or the date by which the next Annual General Meeting of the Company is required by 

law to be held, whichever is the earlier. 

(b) That the Board of Directors of the Company be and is hereby authorised to issue and allot from time to 

time such number of Shares as may be required to be issued pursuant to the exercise of options granted 

under the Parkway Share Option Scheme 2001 (“Parkway Scheme 2001”) and/or the vesting of awards 

under the Parkway Performance Share Plan (“Share Plan”) PROVIDED ALWAYS THAT the aggregate number 

of Shares to be issued and allotted pursuant to the Parkway Scheme 2001 and the Share Plan does not 

exceed fifteen per cent. of the total number of issued ordinary shares of the Company from time to time. 

(c)(I)That for the purposes of Sections 76C and 76E of the Companies Act, Cap. 50 of Singapore (the “Act”), 

the exercise by the Directors of all the powers of the Company to purchase or otherwise acquire issued 

ordinary shares of the Company (the “Shares”) not exceeding in aggregate the Prescribed Limit (as 

hereinafter defined), at such price or prices as may be determined by the Directors from time to time up 

to the Maximum Price (as hereinafter defined), whether by way of:- 

(i) on-market purchases (each an “On-Market Share Purchase”) on the SGX-ST; and/or 

(ii) off-market purchases (each an “Off-Market Share Purchase”) effected in accordance with 

any equal access scheme(s) as may be determined or formulated by the Directors as they may 

consider fit, which scheme(s) shall satisfy all the conditions prescribed by the Act; 

and othVerwise in accordance with all other laws and regulations and rules of the SGX-ST as may for the 

time being be applicable, be and is hereby authorised and approved generally and unconditionally (the 

“Share Purchase Mandate”); 

(II)unless varied or revoked by the Company in general meeting, the authority conferred on the Directors 

pursuant to the Share Purchase Mandate may be exercised by the Directors at any time and from time to 

time during the period commencing from the date of the passing of this Resolution and expiring on the 

earlier of:- 

(a) 

in the case of an On-Market Share Purchase, 105% of the Average Closing Price; and 

(b) in the case of an Off-Market Share Purchase, 120% of the Average Closing Price, 

“Maximum Price” in relation to a Share to be purchased, means an amount (excluding brokerage, stamp 

duties, commission, applicable goods and services tax and other related expenses) not exceeding:- 

where:- 

“Average Closing Price” means the average of the closing market prices of a Share over the last five (5) 

Market Days (“Market Day” being a day on which the SGX-ST is open for securities trading), on which 

transactions in the Shares were recorded, immediately preceding the date of making the On-Market 

Share Purchase or, as the case may be, the date of making an announcement for an offer pursuant to 

the Off-Market Share Purchase, and deemed to be adjusted for any corporate action that occurs after 

the relevant five (5) Market Days; and 

(IV)the Directors of the Company and/or each of them be and are hereby authorised to complete and do 

all such acts and things as they and/or he may consider necessary, desirable, expedient, incidental or in 

the interests of the Company to give effect to the transactions contemplated and/or authorised by this 

Resolution. 

8. To transact any other business which may normally be dealt with at an Annual General Meeting. 

Books Closure & Dividend Payment Date 

The Share Transfer Books and Register of Members of the Company will be closed on 23 April 2007 to determine 

Members’ entitlements to the final dividend of 5.5 cents less tax. 

Duly completed registrable transfers in respect of shares in the Company received up to the close of business at 

5:00 pm on 20 April 2007 by the Company’s Share Registrar, M & C Services Private Limited of 138 Robinson Road 

#17-00, The Corporate Office, Singapore 068906, will be registered to determine Members’ entitlements to such 

dividend. Members whose Securities Accounts with the Central Depository (Pte) Ltd are credited with shares in the 

Company as at 5:00 pm on 20 April 2007 will be entitled to such proposed dividend. 

The proposed final dividend, if approved at the Thirty-Fourth Annual General Meeting, will be paid on 2 May 

2007. 

(i) the date on which the next Annual General Meeting of the Company is held; or 

(ii) the date by which the next Annual General Meeting of the Company is required by law to be held; 

or 

(iii) the date on which the purchase of Shares by the Company pursuant to the Share Purchase Mandate 

is carried out to the full extent mandated; 

(III)in this Resolution:- 

“Prescribed Limit” means ten per cent. (10%) of the total number of issued ordinary shares of the 

Company as at the date of the passing of this Resolution; and 

By Order of the Board 

June Tay Kwok Fung 

Ho Li Li 

Company Secretaries 

Singapore, 23 March 2007 

138 

139 




Notes: 

1. A member entitled to attend and vote at a meeting of the Company is entitled to appoint one or two proxy to 

attend and vote instead of him save that no such limit shall be imposed on the number of proxies appointed 

by members which are nominee companies. A proxy need not be a member of the Company. 


(Incorporated in the Republic of Singapore) 

(Co. Reg. No. 197400320R) 

PROXY FORM 

IMPORTANT 

For investors who have used their CPF monies to buy the shares of Parkway 

Holdings Limited, this Annual Report is sent to them at the request of their 

CPF Approved Nominees and is sent solely FOR INFORMATION ONLY. This 

Proxy Form is not valid for use by CPF investors and shall be ineffective for 

all intents and purposes if used or purported to be used by them. 

2. Where a member appoints more than one proxy, the Company may treat the appointments as invalid unless 

the member specifies the proportion of his shareholding (expressed as a percentage of the whole) to be 

represented by each proxy. 

3. The instrument appointing a proxy or proxies must be deposited at the registered office of the Company at No. 

1 Grange Road #11-01, Orchard Building, Singapore 239693 not less than 48 hours before the time appointed 

for the Annual General Meeting. 

4. The instrument appointing a proxy or proxies must be under the hand of the appointer or of his attorney duly 

authorised in writing. Where the instrument appointing a proxy or proxies is executed by a corporation, it must 

be executed either under its seal or under the hand of an officer or attorney duly authorised. 

5. Mr. Chang See Hiang and Mr Ho Kian Guan if re-elected, will remain as independent members of the Audit 

Committee. 

Explanatory Notes on special business to be transacted 

6. (a) The ordinary resolution proposed in item 7 (a) above, if passed, will empower the Board of Directors of 

the Company, from the date of the above Meeting until the next Annual General Meeting, to issue shares 

in the Company up to an amount not exceeding in total fifty per cent. (50%) of the issued shares of the 

Company for the time being for such purposes as they consider would be in the interest of the Company. 

This authority will, unless revoked or varied at a general meeting, expire at the next Annual General 

Meeting of the Company. 

(b) The ordinary resolution proposed in item 7 (b) above, if passed, will enable the Board of Directors of the 

Company, from the date of the above Meeting until the next Annual General Meeting, to issue shares in 

the Company up to an amount not exceeding in total fifteen per cent. (15%) of the issued shares of the 

Company for the time being pursuant to the exercise of the options under the Parkway Scheme 2001 

and/or the vesting of awards under the Share Plan. This authority will, unless revoked or varied at a general 

meeting, expire at the next Annual General Meeting of the Company. 

(c) The ordinary resolution proposed in item 7 (c) above, if passed, will enable the Board of Directors of 

the Company, from the date of the above Meeting until the next Annual General Meeting, or the date 

by which the next Annual General Meeting is required by law to be held, or the date on which the 

purchase of shares by the Company pursuant to the Share Purchase Mandate is carried out to the full 

extent mandated, whichever is earlier, to purchase ordinary shares of the Company by way of on-market 

purchases or off-market purchases of up to ten per cent. (10%) of the issued shares of the Company at 

the Maximum Price. The Company intends to use internal sources of funds or external borrowings, or a 

combination of internal resources and external borrowings to finance its purchase of Shares pursuant to 

the Share Purchase Mandate. The amount of funding required for the Company to purchase or acquire its 

Shares and the financial impact on the Company and the Group arising from purchases of Shares cannot 

be ascertained as at the date of this Notice as these will depend on, inter alia, the aggregate number 

of Shares purchased or acquired, the consideration paid at the relevant time and the amount (if any) 

borrowed by the Company to fund the purchase. The rationale for, the authority and the limitation on, 

and the financial effects of the purchase or acquisition of Shares by the Company pursuant to the Share 

Purchase Mandate on the audited financial statements of the Group and the Company for the financial 

year ended 31 December 2006 (for illustrative purposes only) are set out in greater detail in the Appendix 

to the Notice of Annual General Meeting. 

I/We, 

of 

being a Member(s) of Parkway Holdings Limited hereby appoint 

of 

or failing him, 

of 

as my / our proxy to attend and to vote for me / us on my / our behalf and, if necessary, to demand a poll at the 

Thirty-Fourth Annual General Meeting of the said Company to be held at The Lecture Theatre, Level 3, Gleneagles 

Hospital, 6A Napier Road, Singapore 258500 on Thursday, 12 April 2007 at 11.00 am and at any adjournment 

thereof. 

NO. RESOLUTIONS BY SHOW OF HANDS BY POLL 

1 Adoption of Directors’ Report, Audited Accounts and 

Auditors’ Report. 

2 Declaration of Final Dividend of 5.5 cents less tax. 

3 Re-election of Director under Article 83 

a. Mr Ranvir Dewan 

b. Mr Steven Joseph Schneider 

4 Re-election of Director under Article 97 

a. Dr. Lim Cheok Peng 

b. Mr. Chang See Hiang 

c. Mr. Ho Kian Guan 

5 Approval of Directors’ fees for 2006. 

6 Appointment of Auditors and fixing of their remuneration. 

7 Special Businesses: 

a. Authority to issue and allot shares pursuant to Section 

161 of the Companies Act, Cap.50. 

b. Authority to issue and allot shares pursuant to the exercise 

of options under the Parkway Share Option Scheme 

2001 and the vesting of awards under the Parkway 

Performance Share Plan 

c. Approval of the renewal of the Share Purchase Mandate. 

8 Any Other Business. 

For* 

Against* 

No. of 

Votes For** 

* Please indicate your vote “For” or “Against” with a “¸” within the box provided. 

** If you wish to exercise all your votes “For” or “Against”, please indicate with a “¸” within the box provided. 

Alternatively, please indicate the number of votes “For” or “Against” each resolution within the box provided. 

No. of Votes 

Against** 

If the Form of Proxy contains no indication as to how the proxy should vote in relation to each resolution, the proxy will vote or abstain as the 

proxy deems fit. 

As witness my/our hand(s) 

Dated this day of 2007 

140 

(Signature or Common Seal of Member) 

Total number of Shares in 

CDP Register 

Register of Members 

Number of Shares 



PROXY FORM 

Notes: 

1. Please insert the total number of Shares held by you. If you only have Shares entered against your name in 

the Depository Register (as defined in Section 130A of the Companies Act, Cap. 50), you should insert that 

number of Shares. If you only have Shares registered in your name in the Register of Members, you should 

insert that number of Shares. If you have Shares entered against your name in the Depository Register and 

Shares registered in your name in the Register of Members, you should insert the aggregate number of 

Shares entered against your name in the Depository Register and registered in your name in the Register of 

Members. If no number is inserted, this instrument of Proxy will be deemed to relate to all the Shares held by 

you. 

2. A member entitled to attend and vote at a meeting of the Company is entitled to appoint one or two 

proxies to attend and vote instead of him save that no such limit shall be imposed on the number of proxies 

appointed by members which are nominee companies. A proxy need not be a member of the Company. 

3. Where a member appoints more than one proxy, the Company may treat the appointments as invalid unless 

the member specifies the proportion of his shareholding (expressed as a percentage of the whole) to be 

represented by each proxy. 

4. The instrument appointing a proxy or proxies must be deposited at the registered office of the Company 

at No. 1 Grange Road #11-01, Orchard Building, Singapore 239693 not less than 48 hours before the time 

appointed for the Annual General Meeting. 

5. The instrument appointing a proxy or proxies must be under the hand of the appointer or of his attorney 

duly authorised in writing. Where the instrument appointing a proxy or proxies is executed by a corporation, 

it must be executed either under its seal or under the hand of an officer or attorney duly authorised. 

6. Where an instrument appointing a proxy or proxies is signed on behalf of the appointer by an attorney, the 

power of attorney (or other authority) or a duly certified copy thereof must (failing previous registration 

with the Company) be lodged with the instrument of proxy, failing which the instrument may be treated as 

invalid. 

7. The Company shall be entitled to reject the instrument appointing a proxy or proxies if it is incomplete, 

improperly completed or illegible or where the true intentions of the appointer are not ascertainable from 

the instructions of the appointer specified in the instrument appointing a proxy or proxies. In addition, in 

the case of members whose Shares are entered against their names in the Depository Register, the Company 

may reject any instrument appointing a proxy or proxies lodged if such member is not shown to have Shares 

entered against his/its name in the Depository Register 48 hours before the time appointed for holding the 

Annual General Meeting as certified by The Central Depository (Pte) Limited to the Company. 

8. A corporation which is a member may authorise by resolution of its directors or other governing body such 

person as it thinks fit to act as its representative at the Annual General Meeting in accordance with Section 

179 of the Companies Act, Cap. 50. The representative attending the meeting must produce evidence of his 

authority. 

PARKWAY HOLDINGS LIMITED

Annual Report 2006 - Parkway Pantai

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