GLOBAL

NUTRI-ACTIVE PTE LTDNOTES TO THE FINANCIAL STATEMENTSFor the ®nancial year ended 31 March 2001These notes form an integral part of and should be read in conjunction with the accompanying®nancial statements.1. GENERALThe Company is domiciled and incorporated in Singapore and the ®nancial statements areexpressed in Singapore dollars. The address of the Company's registered of®ce is:±21 Harper RoadSingapore 369681The principal activity of the Company consists of the wholesale of nutraceutical products andhealth supplements.2. SIGNIFICANT ACCOUNTING POLICIES(a) Basis of accountingThe ®nancial statements are prepared in accordance with and comply with the SingaporeStatements of Accounting Standard. The ®nancial statements are prepared under thehistorical cost convention.(b)Foreign currenciesTransactions in foreign currencies during the ®nancial year are converted to Singaporedollars at the rates of exchange prevailing on the transaction dates. Foreign currencymonetary assets and liabilities are translated into Singapore dollars at the rates ofexchange prevailing at the balance sheet. Exchange differences arising are taken to theincome statement.(c)Bad and doubtful debtsBad debts are written off and speci®c provisions are made for those debts considered tobe doubtful.(d)InventoriesInventories are stated at the lower of cost and net realisable value. Cost is primarilydetermined on a weighted average basis and includes all costs in bringing the inventoriesto their present location and condition. Net realisable value is the price at which inventoriescan be realised in the normal course of business after allowing for the costs of realisation.Provision is made where necessary for obsolete, slow-moving and defective inventories.(e)Depreciation of ®xed assetsNo depreciation is provided on property under development. Depreciation is calculated ona straight line basis to write off the cost of other ®xed assets over their expected usefullives. The estimated useful life of all ®xed assets is 5 years.E-7