Ecowise Annual Report 2007 - ecoWise Holdings Limited

Notes to FinancialStatements31 October 20071. GENERALThe company is incorporated in Singapore with limited liability. The financial statements are presented in Singaporedollars. They are drawn up in accordance with the provisions of the Companies Act, Cap. 50 and the SingaporeFinancial Reporting Standards and they cover the parent and the group entities. The company’s financial statementshave been prepared on the same basis, and as permitted by the Companies Act, Cap. 50, no income statement ispresented for the company. The financial statements were approved and authorised for issue by the board of directorson 30 December 2007.The principal activities of the company are those of an investment holding company and provision of managementservices to its related companies. It is listed on the Catalist which is a market on Singapore Exchange SecuritiesTrading Ltd.The principal activities of the subsidiaries are described in the notes to the financial statements in Note 15 below.The registered office is: No. 3 Phillip Street #14-01 Commerce Point Singapore 048693. The company is domiciled inSingapore.2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESACCOUNTING CONVENTION – The financial statements are prepared under the historical cost convention except wherethe FRS require an alternative treatment (such as fair values) as disclosed where appropriate in these financialstatements.BASIS OF PRESENTATION – The consolidation accounting method is used for the consolidated financial statements thatinclude the financial statements made up to the balance sheet date each year of the company and its subsidiaries.Consolidated financial statements are the financial statements of the group presented as those of a single economicentity. The consolidated financial statements are prepared using uniform accounting policies for like transactionsand other events in similar circumstances. All significant intragroup balances and transactions, including income,expenses and dividends, are eliminated in full on consolidation. The results of the investees acquired or disposed ofduring the financial year are accounted for from the respective dates of acquisition or up to the dates of disposal.On disposal the attributable amount of goodwill if any is included in the determination of the gain or loss ondisposal.BASIS OF PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements in conformity withgenerally accepted accounting principles requires the management to make estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of thefinancial statements and the reported amounts of revenues and expenses during the reporting period. Actual resultscould differ from those estimates. The estimates and assumptions are reviewed on an ongoing basis. Apart from thoseinvolving estimations, management has made judgements in the process of applying the entity’s accounting policies.The areas requiring management’s most difficult, subjective or complex judgements, or areas where assumptions andestimates are significant to the financial statements, are disclosed at the end of this footnote, where applicable.45