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VICTORIA HOUSE PTE LTDNOTES TO THE FINANCIAL STATEMENTSFor the ®nancial year ended 31 March 2002These 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. The Company's registered of®ce issituated at:9 Ubi CrescentSingapore 408572The principal activity of the Company consists of retailing of nutraceutical products and healthsupplements.2. SIGNIFICANT ACCOUNTING POLICIES(a) Basis of accountingThe ®nancial statements are prepared in accordance with and comply with SingaporeStatements of Accounting Standard. The ®nancial statements are prepared in accordancewith the historical cost convention.The ®nancial statements are expressed in Singapore Dollars.(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 date. Exchange differences arising are taken tothe income statement.(c)Revenue recognitionRevenue from the sale of goods is recognised upon passage of title to customers whichgenerally coincides with their delivery and acceptance of the goods by the customers.Rental and interest income are recognised on an accrual basis.(d)TaxationDeferred income tax is provided in full, using the liability method, on temporary differencesarising between the tax bases of assets and liabilities and their carrying amounts in the®nancial statements. The principal temporary differences arise from depreciation on ®xedassets. Tax rates enacted or substantively enacted by the balance sheet date are used todetermine deferred income tax.Deferred tax assets are recognised to the extent that it is probable that future taxable pro®twill be available against which the temporary differences can be utilised.Deferred income tax is provided on temporary differences arising on investments inassociated companies except where the timing of the reversal of the temporary differencecan be controlled and it is probable that the temporary difference will not reverse in theforeseeable future.E-57