47
46
Best World International Limited
Annual Report 2011
Best World International Limited
Annual Report 2011
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2011
1. General
The company is incorporated in Singapore with limited liability. The fnancial statements are presented in
Singapore dollars and they cover the company
(
referred to as “parent”
)
and the subsidiaries.
The board of directors approved and authorised these fnancial statements for issue on 7 March 2012.
The principal activities of the company are those of investment holding and the distribution of nutritional
supplement products, personal care products and healthcare equipment. It is listed on the Singapore
Exchange Securities Trading Limited.
The principal activities of the subsidiaries are disclosed in Note 17 to the fnancial statements.
The registered offce is: 1 Changi North Street 1, Lobby 2, Singapore 498789. The company is situated in
Singapore.
2. Summary of Signifcant Accounting Policies
Accounting Convention
The fnancial statements have been prepared in accordance with the Singapore Financial Reporting
Standards
(
“FRS”
)
and all related Interpretations to FRS
(
“INT FRS”
)
as issued by the Singapore Accounting
Standards Council and the Companies Act, Chapter 50. The fnancial statements are prepared on a going
concern basis under the historical cost convention except where the FRS requires an alternative treatment
(
such as fair values
)
as disclosed where appropriate in these fnancial statements.
Basis of Presentation
The consolidated fnancial statements that include the fnancial statements made up to the end of the
reporting year of the company and all of its directly and indirectly controlled subsidiaries. Consolidated
fnancial statements are the fnancial statements of the group presented as those of a single economic
entity. The consolidated fnancial statements are prepared using uniform accounting policies for like
transactions and other events in similar circumstances. All signifcant intragroup balances and
transactions, including proft or loss and other comprehensive income items and dividends are eliminated
on consolidation. The results of any subsidiary acquired or disposed of during the reporting year are
accounted for from the respective dates of acquisition or up to the dates of disposal which is the date on
which effective control is obtained of the acquired business until that control ceases.
Changes in the group’s ownership interest in a subsidiary that do not result in the loss of control are
accounted for within equity. When the group loses control of a subsidiary it derecognises the assets and
liabilities and related equity components of the former subsidiary. Any gain or loss is recognised in proft or
loss. Any investment retained in the former subsidiary is measured at its fair value at the date when control
is lost and is subsequently accounted as available-for-sale fnancial assets in accordance with FRS 39.
CONSOLIDATED STATEMENT
OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2011
Group
2011
$’000
2010
$’000
Cash Flows From Operating Activities:
Proft Before Tax
347
3,103
Interest Income
(
168
)
(
138
)
Depreciation of Property, Plant and Equipment
1,630
1,542
Depreciation of Investment Property
18
–
Amortisation of Intangible Assets
161
146
Impairment Loss on Intangible Assets
389
322
(
Gain
)
Loss on Disposal of Property, Plant and Equipment
(
4
)
13
Net Effect of Exchange Rate Changes in Consolidating Foreign Subsidiaries
956
(
867
)
Operating Cash Flows before Changes in Working Capital
3,329
4,121
Inventories
35
1,656
Trade and Other Receivables
1,242
3,756
Other Assets
(
2,058
)
138
Trade and Other Payables
(
1,038
)
(
845
)
Net Cash Flows from Operations Before Interest and Tax
1,510
8,826
Income Tax Paid
(
612
)
(
2,777
)
Net Cash Flows From Operating Activities
898
6,049
Cash Flows From Investing Activities:
Purchase of Property, Plant and Equipment
(
1,118
)
(
1,260
)
Disposal of Property, Plant and Equipment
29
60
Increase in Intangible Assets
(
167
)
(
84
)
(
Increase
)
Decrease in Other Financial Assets
(
1,015
)
741
Interest Received
168
138
Net Cash Flows Used in Investing Activities
(
2,103
)
(
405
)
Cash Flows From Financing Activities:
Dividends Paid to Non-Controlling Interests
(
125
)
(
125
)
Dividends Paid
(
3,282
)
(
4,530
)
Purchase of Treasury Shares
(
146
)
(
289
)
Bonus Warrants Issue Expenses
–
(
46
)
Increase in Cash Restricted in Use
(
4
)
–
Net Cash Flows Used in Financing Activities
(
3,557
)
(
4,990
)
Net
(
Decrease
)
Increase in Cash and Cash Equivalents
(
4,762
)
654
Cash and Cash Equivalents, Statement of Cash Flows, Beginning Balance
34,974
34,320
Cash and Cash Equivalents, Statement of Cash Flows, Ending Balance
(
Note 23
)
30,212
34,974
The accompanying notes form an integral part of these fnancial statements.