Sunny Tew

NOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2007These notes form an integral part of and should be read in conjunction with the financial statements.1. General corporate informationThe balance sheet and statement of changes in equity of HG Metal Manufacturing Limited (“Company”) and the consolidated financial statements of the Company and itssubsidiary companies (the”Group”) for the financial year ended 30 September 2007 were authorised for issue in accordance with a Directors’ resolution dated 9 January2008.The Company is a public limited liability company incorporated and domiciled in Singapore with its registered office and principal place of business at 30 Jalan Buroh,Jurong Town, Singapore 619486. The Company’s registration number is 198802660D.The principal activities of the Company are those of investment holding and the business of trading of steel products.The principal activities of the subsidiaries are set out in Note 6 to the financial statements.2. Summary of significant accounting policies(a)Basis of preparation of financial statementsThe financial statements are prepared in accordance with Singapore Financial Reporting Standards (“FRS”) as required by the Singapore Companies Act, Cap. 50and are prepared under the historical cost convention, except as disclosed in the accounting policies below.The preparation of financial statements in conformity with FRS requires the Directors of the Company to exercise judgement in the process of applying the Group’sand the Company’s accounting policies and requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilitiesand disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenue and expenses during the financial year. Althoughthese estimates are based on the Directors’ best knowledge of historical experience and other factors, including expectations of future events that are believed tobe reasonable under the circumstances, actual results may ultimately differ from those estimates. These estimates and underlying assumptions are reviewed on anongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that financial year, orin the financial year of the revision and future financial years if the revision affects both current and future financial years.Critical accounting judgements and key sources of estimation uncertainty used that are significant to the financial statements are disclosed in Note 3 to the financialstatements.42 HG METAL MANUFACTURING LIMITED ANNUAL REPORT 2007