GLOBAL

28. RELATED PARTY TRANSACTIONSThe following related party transactions took place between the Group and related parties duringthe ®nancial year on terms agreed by the parties concerned:±With related parties2001 2002 2003$ $ $Management fees paid to 332,244 503,827 103,800Consultation fees paid to 304,474 Ð ÐWith associated companiesSales to Ð 226,462 1,261,963Management fees received from Ð Ð 80,000(a)(b)Related parties refer to corporations in which certain directors of the Company havesigni®cant ®nancial interest.On 3 October 2000, Victoria House advanced a sum of $156,000 to Healthcare, ashareholder of the Company and in which certain directors of the Company havesubstantial ®nancial interest, for the purpose of the subscription by Healthcare of 156,000new ordinary shares of S$1.00 each in the share capital of the Health One pursuant to arights issue (``Rights Issue'') by the latter. The amount due from Healthcare to VictoriaHouse was fully repaid in February 2001.Two different law ®rms have opined as to whether the above transaction has inadvertentlycontravened Section 76 of the Companies Act. Based on the legal advices received, it isinconclusive whether there had been a breach of Section 76 of the Companies Act. Thedirectors have been advised of the implications and the possible consequences in theevent a court decides that the above transaction is a contravention of Section 76 of theCompanies Act.Notwithstanding the above, the said transaction has inadvertently contravened Section 163of the Companies Act. The directors concerned have sought legal advice and have beeninformed of the possible consequences of such a contravention.(c)Included in the consultation fees paid during the ®nancial year ended 31 March 2001, is anamount of $157,595 which was paid for consultation services in respect of thedevelopment and expansion of the Group's operations in Malaysia, to be rendered by acorporation, Arcadia Ltd (a corporation in which a director of the Company has substantial®nancial interest), for the period from 1 January 2001 to 31 December 2005. Of thisamount, $5,253 was charged to the income statement for the year ended 31 March 2001,representing the expense for the period from 1 January 2001 to 31 March 2001. Theremaining balance of $152,342 was included as a prepayment in the balance sheet as at31 March 2001 representing the payment made in advance for the period from 1 April2001 to 31 December 2005. The amounts charged as expenses to the income statementfor the ®nancial year ended 31 March 2002 and 31 March 2003 were $31,519 and$10,506 respectively. The consultancy agreement was terminated with effect from 1August 2002 resulting in a refund of the prepaid amount of $110,317.29. DIVIDENDSThere were no dividends declared, paid or proposed by the Company since the end of the®nancial year on 31 March 2003.D-20