Osim FR 050407.indd

Notes to the Financial Statements31 December 20061. Corporate informationOSIM International Ltd (the “Company”) is a limited liability company, which is domiciled and incorporated in Singapore and listedon the Singapore Exchange Securities Trading Limited.The registered offi ce and principal place of business of the Company is located at 65, Ubi Avenue 1, OSIM Headquarters, Singapore408939.The principal activities of the Company are those of marketing, distributing and franchising of healthy lifestyle products. Theprincipal activities of its subsidiaries are as shown in Note 11 to the fi nancial statements.There have been no signifi cant changes in the nature of these activities during the fi nancial year.2. Summary of significant accounting policies2.1 Basis of preparationThe consolidated fi nancial statements of the Group and the balance sheet and statement of changes in equity of the Companyhave been prepared in accordance with Singapore Financial Reporting Standards (“FRS”).The fi nancial statements have been prepared on a historical cost basis except for derivative fi nancial instruments andavailable-for-sale fi nancial assets that have been measured at their fair values. In addition, the carrying amounts of assetsand liabilities that are designated as hedging items in a fair value hedge are adjusted for fair value changes attributable to thehedged risks.The fi nancial statements are presented in Singapore dollars (SGD or $) and all values are rounded to the nearest thousand($’000) except when otherwise indicated.The accounting policies have been consistently applied by the Group and the Company and are consistent with those usedin previous fi nancial year.Notes to the Financial Statements 83Annual Report 2006