NTUC Unity Healthcare Healthcare AR13.pdf · nTUC Unity Healthcare believes in making a difference...

Annual Report 12 / 13

Care for U, Care for Life.

NTUC Unity Healthcare Co-operative Limited

55 Ubi Ave 1 #08-01 Singapore 408935 T 6590 4300 F 6590 4389

NTU

C U

nity H

ealthcare A

nnual Report 12 / 13C

are for U

, Care fo

r Life.

04 Chairman’s Message

06 Board Of Directors

08 Management Team

09 Milestones

11 Care For U, Care For Life

12 Body

18 Mind

20 Family

22 Society

24 Finance

25 Report Of The Directors And Financial Statements

88 Membership Listing And Shareholdings As At 31 March 2013

COnTenTS

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About NTUC Unity Healthcare Co-operative Limited

nTUC Unity Healthcare Co-operative Limited is the largest healthcare co-operative in Singapore with 50 Unity pharmacies and 13 Unity Denticare clinics island-wide.

Driven by the focus on Care for Life, nTUC Unity Healthcare Co-operative Limited has revitalised its brand and offers something for everyone through Unity and Unity Denticare.

Customers and patients can expect to be served by warm and professional staff, pharmacists and dentists, supported by the Labour Movement’s commitment to care for the community.

A home-grown and proud Singaporean brand, nTUC Unity Healthcare promises to uphold its ideals and philosophy of its parent nTUC, by ensuring a healthier and happier meaningful life for all ages and collars.

The NTUC Unity Healthcare Brand

expresses the way in which nTUC supports and encourages well-being for everyone, at all stages of their life. Our brand is symbolised by the logo, which captures our brand essence ‘Care for Life’. It brings together three distinct visual elements: the hand, the heart and the Labour Movement ‘U’.

The hand extending from the Labour Movement ‘U’ symbolises the role nTUC plays in providing care, support and guidance to promote a healthy lifestyle for all. The heart is a reflection of love, good health and passion for life. It represents the warmth of human nature and the passion that drives our commitment to promoting wider well-being in the community. The logo portrays a hand nurturing the heart and also releasing it, representing both the protection of life and freedom that healthy living offers to people of all ages.

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Brand Vision & MissionOUr VisiON is to be the partner of choice in the community for every individual and family in caring for their health and wellness.

OUr MissiON is to empower people to care for their health and wellness, enabling them to live life to the full.

Core ValuesnTUC Unity Healthcare believes in making a difference and is proud of the contributions we make to the well-being of the communities we serve with these core values:

CArEWe care for people, inspiring them to be healthy at all stages of life.

rEsPECTWe are inclusive in our thoughts and actions and believe in trust anddignity for all.

iNTEGriTYWe are a trusted member of the community and we are fair and honestin everything we do.

PAssiONWe are passionate about working together to be the first choice healthand wellness partner.

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Caring For LifeThe simple act of care often goes a long way; and

it is this caring spirit that is the foundation of the

work we do at nTUC Unity Healthcare.

nTUC Unity Healthcare was set up in 1992 to

address the concerns of Singapore working

families over rising healthcare costs. Today, we

remain focused and committed to caring for our

community and customers. During the recent

haze situation in Singapore, we stepped in quickly

and were the first to keep prices of the n95 face

masks affordable so as to discourage profiteering.

Staff worked tirelessly past midnight during those

days to ensure availability of face masks in our 50

outlets for the public. This is the spirit of putting

the customers first at nTUC Unity Healthcare.

With growing healthcare needs, we will continue

to step up efforts to serve core needs of the

community and empower our customers to care

for their health and wellness; enabling them to

live life to the fullest.

Our ‘DO GOOD’ AchievementsIn 2012, nTUC Unity Healthcare launched our

range of essential supplements and vitamins

under the “Unity” housebrand. The housebrand

initiative is part of our effort to care holistically for

our community by offering an affordable range

of health products for Singaporeans, especially

seniors, with a view to preventing future illnesses.

These vitamins and supplements are priced, on

average, 20 to 30 per cent cheaper than national

brands and have been well-received by our

customers.

In February 2013, we welcomed the opening of

nTUC Unity’s 50th outlet at 100AM shopping mall.

It is a testament to our social mission to serve the

community at key locations across the island.

We introduced self-help health check stations

at five of the nTUC eldercare Silver ACe

Centres. This is to encourage the community

to take charge of their own health by regularly

monitoring basic indicators such as body mass

and blood pressure. In addition, our pharmacists

visit the Silver ACe Centres quarterly to conduct

health checks for the elderly including monitoring

of blood sugar levels and medication counselling.

Unity Denticare has set up an in-house call centre

in December 2012 to serve customers better.

Apart from cost and operational efficiencies, the

call centre also brings us closer to the existing

customers and helps us reach out to the potential

ones.

Looking AheadThere is much for us to do in the year ahead. The

Group remains strongly committed to growing

our business while creating greater social impact.

One of our key priorities is to scale up and expand

our footprint across the island quickly to make it

more accessible for our customers. This year, we

aim to set up at least 6 new Unity stores and 2

new Denticare clinics.

We will continue to focus on strengthening staff

capability. We have also introduced a Leadership

Programme aimed at identifying and grooming

potential employees for future positions, in line

with our business expansion.

In addition, we will expand the range of “Unity”

housebrand products so that working families will

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CHAIRMAn’S MeSSAGe

Ms Tan Hwee BinChairman

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be able to have access to an even wider range of

affordable healthcare options amid rising cost of

living. Our existing housebrand, Origins health

food, will continue to expand its presence in

major supermarket chains, especially in nTUC

FairPrice.

Our Financial PerformanceWith the focus over the last two years on

consolidating our resources and systems to gear

up for future growth, the financial performance

of the Group has improved in the current financial

year as compared to the previous year. Revenue

saw an 11% increase from the previous year

to reach $102.5 million, while Profit Before

Contribution, Tax and Dividend rose from

$0.04 million in the previous year (excluding

reversal of allowance for impairment loss on

investment property) to $1.36 million in the

current year.

In view of the Group’s performance and our

long-term growth prospects, the Board has

recommended a final dividend of 3 cents per

share for the financial year, subject to approval at

the Annual General Meeting.

AppreciationI would like to thank our shareholders, customers

and business partners for their unwavering

support and confidence in the Group. I would

also like to record my appreciation to the Board

for their valuable counsel and commitment, and

our management and staff for their hard work

and dedication to Caring for Life.

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Tan Hwee BinChairman

Ms Tan joined the Board in

2009. She is the Chairman

of nTUC Unity Healthcare

Co-operative Limited

and nTUC eldercare Co-

operative Limited. She is

the executive Director of

Wing Tai Holdings Limited.

She is also a Director

of Singapore Labour

Foundation, nTUC FairPrice

Co-operative Limited and

Agency for Integrated Care

Pte Ltd.

Nora Kang

Ms Kang joined the Board

in 2004. She is currently

the Vice President of

nTUC Central Committee,

President of DBS Staff

Union (DBSSU), Director

of nTUC Foodfare

Co-operative Limited,

Chairman of nTUC Women

Committee and Honorary

Treasurer of nTUC Club

Management Council. Ms

Kang is also appointed

by Ministry of Manpower

Singapore as a member of

the Industrial Arbitration

Court (IAC) under the

employee Panel.

Tan Hock soon

Mr Tan joined the Board

in 2012. He is the General

Secretary of Food, Drinks

and Allied Workers’ Union

(FDAWU). Mr Tan currently

focuses his attention on

the re-employment of

mature workers. He is

a member of the nWC

Committee from 2013 till

2014. He was a recipient

of the Comrade of Labour

Award by national Trade

Union Congress in 2001.

Liak Teng Lit

Mr Liak joined the Board

in 2009. He is currently

the Group Chief executive

Officer of Alexandra

Health. Mr Liak also serves

on the Boards of Pathlight

School, northLight

School, Advisory Panel

of the Singapore Human

Resources Institute,

Advisory Council of the

Singapore Computer

Society and The Advisory

Panel of the School of

Information Systems at the

Singapore Management

University.

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BOARD OF DIReCTORS

Pauline Goh

Ms Goh joined the Board

in 2005. She is the Chief

executive Officer of CBRe

Singapore and South

east Asia, overseeing 7

countries and close to

2,500 employees. She is

also an active member of

the company’s Asia Pacific

Strategic Group that charts

the strategic direction for

the Asia Pacific region.

She is a member of the

national University of

Singapore’s Department of

Real estate, Consultative

Committee that seeks to

advise the Department in

the continuing review of its

academic programmes.

Philip Wee

Mr Wee joined the Board

in 2011. He is the founder

of Claymore Training

& Consultancy which

manages consultancy

services for SMes. Mr Wee

has 9 years of experience

in the shipping industry in

Singapore and has over 3

decades of experience in

the retail industry, working

with retailers like Selfridges

in London, Robinsons &

Co. and IKeA Singapore.

Wade Cruse

Mr Cruse joined the

Board in 2011. He

is a Partner at Bain

& Company Se Asia,

Inc, a global strategy

firm that helps many

of the world’s leading

companies achieve

excellence in their

industries. Mr Cruse

has spent the last 13

years living and working

in Southeast Asia and

europe. Prior to that, he

was one of the founding

members of two steel

mini-mill companies

in the US in the mid

1990’s.

Gerry Lee

Mr Lee joined the Board

in 2011. He is currently

the Managing Director

(Business Groups) of

nTUC FairPrice Co-

operative Limited. He

oversees the supermarket,

hypermarket, convenience

& online business groups

at FairPrice. Mr Lee also

serves on the Boards

of Grocery Logistics

of Singapore Pte Ltd,

newFront Investments

Pte Ltd, Cheers Holdings

(2004) Pte Ltd and nTUC

Link Pte Ltd.

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Chua song KhimGroup CeO

steven LyeDeputy CeO

Chan Yiam MoiGeneral Manager, Unity

sonia TayManaging Director,Origins Health Food

Leon LuaiDirector, Unity Denticare (with effect from 11 March 2013)

ivy TaiChief Financial Officer

Melati AluiDirector, Human Resources

Jean LokeDirector, Real estate

Chong Nai MinDirector, Information Systems & Technology

MAnAGeMenT TeAM

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1971nTUC Denticare was established

to provide comprehensive dental

services to individuals and companies.

The first clinic was located at the

Singapore Conference Hall (formerly

known as Conference Hall and Trade

Union House) at Shenton Way.

1992The first nTUC Healthcare outlet was

opened in Clementi nTUC FairPrice

by the late President Mr Ong Teng

Cheong, then Secretary General of

nTUC and Deputy Prime Minister.

MILeSTOneS

1996The 18th outlet at eastpoint was

officially opened by Mr Lim Boon

Heng, then Secretary General of

nTUC and Minister without Portfolio.

It was also the flagship shop bearing

the new identity – Unity nTUC

Healthcare.

1997Recognising the continuing need for

convenient healthcare for customers,

nTUC Healthcare was the first to

launch tele-pharmacy, an MOH-approved

initiative which enables customers

to seek health advice and purchase

medication even in the absence of

pharmacists. Its official launch was

held at Great World City in October

and was witnessed by the then

Deputy Secretary General of nTUC,

Mr Lim Swee Say.

2002nTUC announced the amalgamation

of Denticare with Healthcare. This

merger consolidated all its healthcare

initiatives under one organisation

that allowed the co-operative greater

economies of scale and to rationalise

its business structure, thereby

strengthening its competitiveness.

Opening of our flagship store bearing our new identity in 1996 by Mr Lim Boon Heng, then Secretary General of NTUC & Minister without Portfolio

Opening of our first Unity Pharmacyin 1992 by late President Mr Ong Teng Cheong, then Secretary General of NTUC & Deputy Prime Minister

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2004Unity’s logo was updated to portray

a modern and upbeat image with

a new tagline “Your Friend in

Healthcare” to symbolise Unity’s aim

in forging good relationships and

understanding with our customers.

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2006embracing an alternate outlook in

the health and wellness sector, nTUC

Healthcare launched a new concept of

lifestyle living with the opening of its

first store at Great World City that was

remodelled under this new concept.

The Living Pharmacy stores boast a

wider variety of products plus a variety

of organic products to cater to the

growing public awareness of organic

consumption for a healthier lifestyle.

The Living Pharmacy outlet at Great

World City also housed an organic

café using ingredients sold within the

store.

In the same year, nTUC Healthcare

was awarded the SuperBrands award

that recognises the brand as one of

the best and most-valued names in

Singapore.

2011nTUC Healthcare unveiled its

revitalised brand identity with a

new name nTUC Unity Healthcare

Co-operative Limited. As one of the

wellness brands under the nTUC

Unity Healthcare Group, Unity opened

2012Unity launched its range of daily

essential vitamins and supplements

under its own “Unity” brand name.

These Unity housebrand products

are priced at least 20% cheaper than

national brands, making it more

affordable so that everyone can

benefit from preserving their health

and preventing future illnesses.

2013Unity’s 50th store at 100 AM was

officially opened by Mr Lim Boon

Heng (Chairman, nTUC enterprise),

Mr Sam Tan (MP for Radin Mas SMC),

Ms Tan Hwee Bin (Chairman, nTUC

Unity Healthcare) and Mr Chua

Song Khim (Group CeO, nTUC

Unity Healthcare). The official

opening marked Unity Healthcare’s

commitment to extend our reach to

serve the needs of working families

and our community.

its 47th store at The Clementi Mall

showcasing the revitalised look with

an emphasis on “Care for Life”. The

opening was officiated by Secretary

General of nTUC, Mr Lim Swee Say.

Also a wellness brand of Unity

Healthcare, nTUC Denticare was

rebranded as nTUC Unity Denticare.

The clinic at nTUC Income Tampines

Junction bearing the new identity and

revitalised look was officially opened

by nTUC Unity Healthcare Chairman,

Ms Tan Hwee Bin. This was also Unity

Denticare’s 13th clinic.

Opening of the 47th Unity store at The Clementi Mall showcasing the revitalised look in 2011

The Living Pharmacy, a new concept of lifestyle living, was launched in 2006

Opening of the 50th Unity store at 100 AMby Mr Lim Boon Heng, Mr Sam Tan, Ms Tan Hwee Bin & Mr Chua Song Khim

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Opening of the 13th Unity Denticare clinic atNTUC Income Tampines Junction

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Care for you, Care for lifeAt nTUC Unity Healthcare Co-operative Limited, our customers and patients deserve the utmost care and dedicated services. We do not only look after our business, we are also committed to caring for the health and wellness of families and individuals.

In our Care for U, Care for Life report, we will illustrate how we engage with the society and communities through our work and businesses. Based on five pillars – Body, Mind, Family, Society and Finance – we invite you to learn about the foundations and what it takes for nTUC Unity Healthcare to continue its mission as a caring healthcare partner.

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Understanding Our BusinessesnTUC Unity Healthcare Co-operative Limited

is the largest healthcare co-operative in

Singapore.

established in August 1992, Unity is the retail

pharmacy arm of Unity Healthcare

Co-operative. Its mission is to improve the

health and total well being of our customers

by being the most professional pharmacy chain

and delivering the highest level of customer

satisfaction, at the most competitive prices.

NTUC Unity, Tampines One

Mr Sean Ang, PharmacistNTUC Unity, Toa Payoh

Body

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In 2012, nTUC Unity Healthcare introduced

a range of essential vitamins and

supplements under the “Unity” housebrand.

Priced at an average of 20 per cent lower than

national brands, the housebrand products are

an effort to set benchmark prices for essential

goods and services, and to help moderate the

cost of living for Singapore working families.

The “Unity” housebrand initiative is part of the

nTUC Social enterprise 2015 Vision to deliver

greater social impact. By 2015, nTUC Unity

plans to make available some 100 “Unity”

products, which will include over-the-counter

medications, first-aid kits, and skin and body

care products.

not forgetting the elderly and disabled, Unity

also provides a range of care and mobility

products under the Home Care section to

assist them. The products include mobility aids

such as wheelchairs, walking sticks, commode

chairs and crutches. Moving forward, Unity will

continue to enhance and develop this section

to provide more practical information to help our

physically challenged customers lead a normal life.

In February this year, we also celebrated the

opening of nTUC Unity’s 50th outlet at 100AM.

The opening is a milestone for nTUC Unity

Healthcare in our journey to extend our pharmacy

services to a wider community. In conjunction with

the opening, nTUC Unity also supplied a year’s

worth of housebrand supplements to some 50

needy elderly from nTUC eldercare Silver

ACe Centres.

Come 2015, we are looking to have an expanded

network of 80 Unity outlets throughout the island.

As we continue our expansion, the existing outlets

will also undergo renovation and refurbishment to

give our customers a better shopping experience.

Our new and refurbished outlets are designed

based on 3 principles.

1. Simplicity – standardised fixtures to support the

display of a wider product range that includes

healthcare, derma skin care as well as organic

food.

2. ease – Wider aisles that allow for easy access,

brighter lighting and category signages to help

locate products with ease.

3. Delight – Friendly service of our retail assistants

and professional advice provided by our trained

pharmacists to help individuals and families.

These principles are part of our store enhancement

efforts to improve our physical layout and

ambience of our outlets so that our customers can

enjoy shopping with us.

Last year, eight outlets received a facelift. The

refurbished stores include those located in Yishun,

Clementi, Rivervale Plaza and Raffles City.

Unity Housebrand

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Warm and pleasant interior reflecting our brand essence

Incorporated in 1990, Origins Healthcare is a

subsidiary of Unity Healthcare Co-operative.

Origins Healthcare is a dedicated wholesaler

and distributor of natural and organic products

and health publications books. Origins

Healthcare aims to offer healthy wholesome

foods at affordable prices to the community.

These quality merchandise ranging from whole

foods to natural skin care products are made

readily available through our comprehensive

distribution network of supermarkets,

pharmacies and hospitals.

In a gesture to provide equal work

opportunities, Origins Healthcare products are

also packed by people suffering from speech

and hearing disabilities.

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Our goal for Unity stores is not to be just retail outlets but family-friendly pharmacy stores – where customers not only buy medication and health supplements but also receive helpful health information and advice. Our team of professional pharmacists aims to be family pharmacists whom families and individuals can trust for their health and wellness needs.

Mr Chua song KhimGroup Chief executive OfficernTUC Unity Healthcare

Our values originate from our care for our customers and this will always be the foundation of our company. As we work towards our 2015 vision, we strive to be the healthcare partner of choice in the community, offering health and wellness products that meet the needs of customers at every of their life stages. We will continue to improve ourselves to better serve our customers.

Mr steven LyeDeputy Chief executive OfficernTUC Unity Healthcare

Ms Jenny Tan, Senior Retail Executive NTUC Unity, AMK Hub

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Started in August 1971, Unity Denticare is

the dental care arm of Unity Healthcare

Co-operative. With 13 clinics conveniently

located across Singapore and over 100

professional dentists and dedicated staff, Unity

Denticare aims to provide comprehensive dental

services to individuals and companies. By 2015,

Unity Denticare is looking to an expanded

network of 20 clinics.

All Unity Denticare staff undergo training

to learn how to handle a range of scenarios

in the clinics. The training covers the areas

of customer service, operational and work

efficiency, and basic cardiac life support.

Through these preparation courses, staff will

be equipped with skills such as basic infection

control and inventory management. To

maintain a high standard of cleanliness, Dental

Assistants will understand the importance of

basic infection control, and their roles and

responsibilities as healthcare workers.

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Dr Lee Pik Gah, Dental SurgeonNTUC Unity Denticare, Bukit Merah Central

Dr Tiju Krishnan, Dental SurgeonNTUC Unity Denticare, AMK Hub

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Dr Lee Pik Gah, Dental SurgeonNTUC Unity Denticare, Bukit Merah Central

More training programmes are in the pipeline

to ensure staff will continue to provide quality

service to our customers. The training includes

telephone etiquette and service excellence to

equip staff with basic customer service skills

to handle customers in difficult situations. This

reaffirms our commitment to train all staff to

deliver excellent, customised and personalised

service.

As we strive to standardise practice across all

the Denticare clinics, we are able to project a

better image and provide better service to our

customers.

To accommodate the evolving needs of dental

care, Unity Denticare has also introduced

aesthetic application such as Invisalign to its

list of comprehensive dental services. With

a dedicated hotline and call centre, patients

can get their queries addressed efficiently. The

hotline reduces the call drop rate, affirming our

commitment to better serve our patients.

NTUC Unity Denticare, Tampines Junction

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NTUC Unity Healthcare Keep Fit Day

Mind Training Our staffAt nTUC Unity Healthcare, we emphasise

learning and development which focuses on

excellence in the areas of operations, service,

and people.

• OperationsExcellence

To improve operational execution by

mastering basic retail skills

• ServiceExcellence

To develop a customer-centric culture within

the organisation

• PeopleExcellence

To enhance leadership competencies and

drive performance through the development

of soft skills

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Monthly staff lunch

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All new employees of Unity pharmacies go

through a compulsory five-day training course

called the new employee essential Programme

(neeP). neeP aims to equip new employees

with the basic knowledge of working at Unity

Healthcare, helping them better understand its

policies and procedures.

The programme takes on a five-step approach

which provides new staff with the essential

skills to effectively carry out daily routines

and basic functions. The training includes

performing stock control operations, routine

housekeeping duties, point-of-sale operations,

communicating effectively to customers and

projecting a professional and positive image

at work.

All existing ground staff will also undergo

customer service training. The Certified Service

Professional Course offered by nTUC Learning

Hub aims to equip ground staff with the skills

on how to interact with customers and exceed

service standards through delivering excellent,

customised and personalised service.

All ground staff will also attend monthly

product knowledge training conducted by

suppliers to understand the merchandise

better. With the training, staff can better

address customer queries and help them make

informed decisions on their purchases.

Enriching Our PeopleAt nTUC Unity Healthcare, we believe a healthy

work-life balance will enhance the lives of our

staff. Besides monthly staff lunches at the head

office, a Keep Fit Day has also been introduced

for HQ staff to take part in various activities

such as bowling or brisk walking. employees

are further encouraged to spend quality time

with their family through eat With Your Family

Day which happens on the last Friday of

every month.

These activities continue to serve as a platform

to foster strong bonds among the staff and

management. It is also our way of looking after

our staff and ensuring they have adequate time

off from work to enjoy the simple pleasures

of life.

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NTUC Unity’s Pre-registered Pharmacist Training

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Family

At nTUC Unity Healthcare, our customers

are like our family members. We believe

in treating you with sincerity, respect and

deserving attention. We find renew vigour in

your compliments to continue providing the

best service to you. Your words propel us to do

better and reach out to touch the lives of more

people in the community. With your continuous

support, Unity Healthcare aims to be the holistic

healthcare provider for you and your family.

It is a pleasant experience when I visit the Rivervale Mall Unity outlet. I am impressed with Madam Rena Ong who attended to me. She demonstrated great customer service skills and is very knowledgeable with most of my queries.

nTUC Unity Pharmacy Customer Ms Cheryl Phua

I have been a regular customer at the neX Unity branch for the past two years. During this period, Miss Jennifer Seow and Miss Ivy Tan have provided fantastic service to my family and me. They are patient and exercise care to help us select the products that will suit our needs and requirement.

nTUC Unity Pharmacy Customer Ms Doreen Chia

The retail staff remembered that I was looking for a product, which was unfortunately out of stock. On my next visit, they presented the item to me without me asking for it. I definitely appreciated the gesture.

nTUC Unity Pharmacy Customer Ms Penny radcligue

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Mdm Rena Ong, Pharmacy AssistantNTUC Unity, Rivervale Mall

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I truly appreciate the services of Dr Diana Lee at Unity Denticare AMK Hub. We had no prior appointment but Dr Lee quickly attended to my son, Ryan, who had broken his tooth and calmed his fears. Despite a busy schedule, she still took time to explain all the options that were available to treat Ryan. not only was Dr Lee skilful in giving Ryan a set of teeth which looked good as new, I was pleasantly surprised when she called a few days later to check on Ryan’s progress. I applaud Dr Lee for her professionalism and thank her for going the extra mile.

nTUC Unity Denticare Customer Ms serene Cordeiro

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Dr Lee Pik Gah, Dental SurgeonMs Eden Tanoja, Dental AssistantNTUC Unity Denticare, Bukit Merah Central

I witnessed exemplary customer service from the Unity Denticare reception staff at AMK Hub, especially from Ms Danielle Poon. She went beyond duty to assist a woman who was not interested in paying for services at Denticare. Despite the situation, the staff remained calm and managed it well.

nTUC Unity Denticare Customer Ms Paulette Tan

I would like to express my high appreciation to the services of Dr Lee Pik Gah and her staff of Bukit Merah Central branch. With their effective and quick services and professional treatments, they removed the sharp pain of my second molar.

nTUC Unity Denticare Customer Mr Frank Wu Fei

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Society Caring For The Community nTUC Unity Healthcare aims to provide

affordable basic healthcare services to

Singapore’s working families. Staying true to

our social mission, we continue to do our part

to contribute and care for our community and

the underprivileged. Through partnerships with

like-minded organisations, we seek to take a

further step towards fulfilling our mission to

care for life.

Healthy Lifestyle For AllSince October 2012, nTUC Unity has tied up

with the Agency for Integrated Care on their

Community Health Assist Scheme (CHAS) that

allows CHAS cardholders who typically come

from lower income families to enjoy a five per

cent discount on all regular priced items at

Unity pharmacies. CHAS cardholders also pay

subsidised rates at Unity Denticare clinics.

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Health check at NTUC Eldercare Silver ACE Centre

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Not Forgetting The ElderlyIn conjunction with the opening of nTUC

Unity’s 50th outlet, some 50 needy elderly

were selected to receive a year’s supply of the

“Unity” housebrand vitamins and supplements

at no cost. The range of supplements given

is based on the existing health conditions

of the elderly who were selected from five

nTUC eldercare Silver ACe Centres namely:

Henderson, Telok Blangah, Lengkok Bahru,

Redhill and Taman Jurong.

Health check stations have been set up at these

five centres and are estimated to reach out to

more than 1,200 elderly living in the vicinity

of the centres. The station consists of basic

equipment that allows users to check blood

pressure and their body mass index (BMI). Staff

at the centres can help the elderly with the

checks although seniors who are able to do so

are encouraged to perform the checks on their

own to encourage accountability over their

own health.

To ensure the seniors receive adequate and

quality care, Unity pharmacists visit the

centres quarterly to conduct health checks

and medication reviews. These checks include

blood pressure, blood glucose and BMI. The

pharmacists will also provide medication review

and counselling for the seniors and work closely

with staff to monitor their health. By providing

the health check results to the centres, the staff

can assist to monitor these seniors, especially

those who need closer medical attention.

sweet spot ProgrammeA collaboration with the nUS Department of

Pharmacy, this 6-month programme aims to

help diabetic patients manage and improve

their conditions through counselling and

lifestyle modifications such as diet changes

and exercise. Our pharmacists will also work

closely with the patients to set achievable goals

for themselves and monitor their progress.

Patients who sign up for this programme are

monitored closely for their blood pressure,

blood cholesterol and blood glucose by the

pharmacists.

Annual Pharmacists Day This annual event has become a staple affair

on nTUC Unity Healthcare’s calendar. Last year,

Unity pharmacists and senior management took

time out to spend a day with a group of seniors

from nTUC eldercare.

The day began with serving breakfast to the

seniors and dining with them, before heading

out to the nearby garden for a walk and

workout session. The meaningful activity served

as a platform for the community pharmacists to

spend time with the group of people they serve

regularly. It was also an opportunity for senior

management to interact with pharmacists and

better understand the work they do.

With the Health Check Station provided by Unity Healthcare, the seniors at SilverACe @ Redhill may now measure their own blood pressure, weight, height, body mass index and do eye test chart checks at their convenience. Since the set up of the station, the seniors feel more in charge of their own health.

Ms Mardiana Othman Centre SupervisornTUC eldercare Silver ACe Centre @ Redhill

23

Unity’s Pharmacists Day

24

nTUC Unity Healthcare strives to deliver social

impact (Do Good) to the community and this

could not be achieved without the business

being financially sustainable and profitable

(Do Well). We would like to thank all our

customers for their confidence and strong

support that brought us to where we are today.

The financial statements as set out on page 26

to 85 are drawn up and audited so as to give a

true and fair view of the state of affairs of the

Company as at 31 March 2013.

Finance

NTUC Unity, Clementi Mall

24

25

Report Of The Directors & Financial StatementsAs At 31 March 2013

26 Report Of The Directors

28 Statement By Directors

29 Independent Auditors’ Report

31 Statements Of Financial Position

32 Statements Of Comprehensive Income

34 Statements Of Changes In equity

37 Consolidated Statement Of Cash Flows

39 notes To Financial Statements

25

NTUC Unity Healthcare Annual Report 12 / 13

26

Page 1

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES REPORT OF THE DIRECTORS The Directors of the Co-operative present their report to the members together with the audited financial statements of the Group for the financial year ended 31 March 2013 and the statement of financial position of the Co-operative as at 31 March 2013 and the statement of comprehensive income and statement of changes in equity of the Co-operative for the financial year ended 31 March 2013. 1. Directors

The Directors of the Co-operative in office at the date of this report are: Tan Hwee Bin (Chairman) Pauline Goh Nora Kang Lee Kian Hup Gerry Liak Teng Lit Wade Cruse Philip Vincent Wee Tan Hock Soon (Appointed on 25 September 2012)

2. Arrangements to enable Directors to acquire shares or debentures Neither at the end of nor at any time during the financial year was the Co-operative a party to any arrangement whose object is to enable the Directors of the Co-operative to acquire benefits by means of the acquisition of shares in or debentures of the Co-operative or any other body corporate.

3. Directors’ interests in shares or debentures According to the register of Directors’ shareholdings kept by the Co-operative, none of the Directors of the Co-operative holding office at the end of the financial year had any interest in shares or debentures of the Co-operative or its related corporations except as detailed below:

Shareholdings registered in

the name of Director

Balance as at 1 April 2012

Balance as at 31 March 2013

Number of ordinary shares The Co-operative Nora Kang 50 50

4. Directors’ contractual benefits Since the end of the previous financial year, no Director of the Co-operative has received or become entitled to receive a benefit by reason of a contract made by the Co-operative or by a related corporation with the Director, or with a firm of which he is a member, or with a company in which he has a substantial financial interest, except as disclosed in the financial statements.

27

Page 2

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES REPORT OF THE DIRECTORS (Continued) 5. Share options

There were no share options granted by the Co-operative or its subsidiaries during the financial year. There were no shares issued during the financial year by virtue of the exercise of options to take up unissued shares of the Co-operative or its subsidiaries. There were no unissued shares of the Co-operative or its subsidiaries under options as at the end of the financial year.

6. Auditors The auditors, BDO LLP, have expressed their willingness to accept re-appointment.

On behalf of the Board of Directors Tan Hwee Bin Pauline Goh Chairman Director Singapore 2 August 2013


28

Page 3

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES STATEMENT BY DIRECTORS In the opinion of the Board of Directors, (a) the consolidated financial statements of the Group, the statement of financial position, statement

of comprehensive income and statement of changes in equity of the Co-operative with the notes thereon are properly drawn up in accordance with the provisions of the Singapore Co-operative Societies Act, Chapter 62 and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Co-operative as at 31 March 2013 and of the results and changes in equity of the Group and of the Co-operative and cash flows of the Group for the financial year ended on that date;

(b) at the date of this statement, there are reasonable grounds to believe that the Co-operative will

be able to pay its debts as and when they fall due; (c) the accounting and other records required by the Act to be kept by the Co-operative have been

properly kept in accordance with the provisions of the Act; and (d) the receipt, expenditure and investment of monies and the acquisition and disposal of assets

made by the Co-operative during the year ended 31 March 2013 have been in accordance with the By-laws of the Co-operative and provisions of the Act.

On behalf of the Board of Directors Tan Hwee Bin Pauline Goh Chairman Director Singapore 2 August 2013

29

Page 4

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED Report on the Financial Statements We have audited the accompanying financial statements of NTUC Unity Healthcare Co-operative Limited (the “Co-operative”) and its subsidiaries (the “Group”), which comprise the statements of financial position of the Group and of the Co-operative as at 31 March 2013, the statements of comprehensive income and statements of changes in equity of the Group and of the Co-operative and statement of cash flows of the Group for the financial year then ended, and a summary of significant accounting policies and other explanatory information as set out on pages 31 to 85. Management’s Responsibility for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Singapore Co-operative Societies Act, Chapter 62 (the “Act”) and Singapore Financial Reporting Standards, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair profit and loss accounts and balance sheets and to maintain accountability of assets. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


30

Page 5

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED Report on the Financial Statements (Continued) Opinion In our opinion, the consolidated financial statements of the Group, the statement of financial position, statement of comprehensive income and statement of changes in equity of the Co-operative are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Co-operative as at 31 March 2013 and of the results and changes in equity of the Group and of the Co-operative and cash flows of the Group for the financial year ended on that date. Report on Other Legal and Regulatory Requirements In our opinion, (a) the accounting and other records required by the Act to be kept by the Co-operative have

been properly kept in accordance with the provisions of the Act; (b) the receipt, expenditure and investment of monies and the acquisition and disposals of

assets by the Co-operative during the financial year ended 31 March 2013 have been made in accordance with the By-laws of the Co-operative and the provisions of the Act; and

(c) the accounting and other records required by the Singapore Companies Act, Chapter 50, to

be kept by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Singapore Companies Act, Chapter 50.

BDO LLP Public Accountants and Chartered Accountants Singapore 2 August 2013

31

The accompanying notes form an integral part of these financial statements.

Page 6

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2013 Group Co-operative Note 2013 2012 2013 2012 $ $ $ $ ASSETS Current assets Cash and cash equivalents 4 17,789,308 16,333,595 15,021,763 12,074,916 Trade and other receivables 5 5,514,862 6,442,449 6,387,846 8,961,327 Prepayments 338,959 297,987 323,795 279,782 Inventories 6 13,895,669 13,318,856 12,815,145 11,824,615

37,538,798 36,392,887 34,548,549 33,140,640

Non-current assets Investments in subsidiaries 8 - - 1,270,506 1,270,506 Available-for-sale financial

assets 9 1,047,005 883,610 1,047,005 883,610 Property, plant and equipment 10 12,338,272 13,143,487 12,289,144 13,079,469 Investment properties 11 8,079,281 8,314,454 8,079,281 8,314,454

21,464,558 22,341,551 22,685,936 23,548,039

Total assets 59,003,356 58,734,438 57,234,485 56,688,679

LIABILITIES AND EQUITY Current liabilities Trade and other payables 13 19,869,560 19,960,078 19,864,136 19,622,897 Provision 14 900,000 795,000 900,000 795,000 Current income tax payable 200,306 238,734 - - Share capital repayable on

demand 15 17,367,824 17,468,824 17,367,824 17,468,824

38,337,690 38,462,636 38,131,960 37,886,721

Non-current liability Deferred tax liabilities 12 1,988 1,988 - -

Total liabilities 38,339,678 38,464,624 38,131,960 37,886,721

Equity Share capital 15 100,000 100,000 100,000 100,000 Fair value reserve 16 443,145 279,750 443,145 279,750 Retained earnings 19,539,044 19,331,820 18,559,380 18,422,208 Equity attributable to owners

of the parent

20,082,189 19,711,570 19,102,525 18,801,958 Non-controlling interest 581,489 558,244 - -

Total equity 20,663,678 20,269,814 19,102,525 18,801,958

Total liabilities and equity 59,003,356 58,734,438 57,234,485 56,688,679


Page 6

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2013 Group Co-operative Note 2013 2012 2013 2012 $ $ $ $ ASSETS Current assets Cash and cash equivalents 4 17,789,308 16,333,595 15,021,763 12,074,916 Trade and other receivables 5 5,514,862 6,442,449 6,387,846 8,961,327 Prepayments 338,959 297,987 323,795 279,782 Inventories 6 13,895,669 13,318,856 12,815,145 11,824,615

37,538,798 36,392,887 34,548,549 33,140,640

Non-current assets Investments in subsidiaries 8 - - 1,270,506 1,270,506 Available-for-sale financial

assets 9 1,047,005 883,610 1,047,005 883,610 Property, plant and equipment 10 12,338,272 13,143,487 12,289,144 13,079,469 Investment properties 11 8,079,281 8,314,454 8,079,281 8,314,454

21,464,558 22,341,551 22,685,936 23,548,039

Total assets 59,003,356 58,734,438 57,234,485 56,688,679

LIABILITIES AND EQUITY Current liabilities Trade and other payables 13 19,869,560 19,960,078 19,864,136 19,622,897 Provision 14 900,000 795,000 900,000 795,000 Current income tax payable 200,306 238,734 - - Share capital repayable on

demand 15 17,367,824 17,468,824 17,367,824 17,468,824

38,337,690 38,462,636 38,131,960 37,886,721

Non-current liability Deferred tax liabilities 12 1,988 1,988 - -

Total liabilities 38,339,678 38,464,624 38,131,960 37,886,721

Equity Share capital 15 100,000 100,000 100,000 100,000 Fair value reserve 16 443,145 279,750 443,145 279,750 Retained earnings 19,539,044 19,331,820 18,559,380 18,422,208 Equity attributable to owners

of the parent

20,082,189 19,711,570 19,102,525 18,801,958 Non-controlling interest 581,489 558,244 - -

Total equity 20,663,678 20,269,814 19,102,525 18,801,958

Total liabilities and equity 59,003,356 58,734,438 57,234,485 56,688,679


32


Page 7

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 Group Co-operative Note 2013 2012 2013 2012 $ $ $ $ Continuing operations Revenue 17 102,510,277 91,379,176 94,792,976 84,575,237 Other operating income 18 6,183,092 5,917,615 7,323,757 7,114,254 Consumables used (69,610,679) (62,035,147) (65,766,737) (58,656,258) Staff costs 19 (17,441,967) (16,048,587) (15,581,941) (14,372,066) Depreciation expense (2,900,446) (2,559,195) (2,873,356) (2,539,299) Rental expense (10,649,507) (9,592,134) (10,596,540) (9,638,296) Other operating expenses (6,733,413) (6,012,849) (6,417,844) (5,718,719) Finance costs 20 (516,652) (527,296) (516,652) (527,296) Profit before income tax and

contributions 21 840,705 521,583 363,663 237,557 Income tax expense 22 (133,745) (177,370) - - Profit for the financial year from

continuing operations 706,960 344,213 363,663 237,557 Discontinuing operation Loss for the financial year from

discontinuing operation 7 - (199,609) - (27,112)

Profit before contributions 706,960 144,604 363,663 210,445 Contributions Central Co-operative Fund 23 (25,000) (25,000) (25,000) (25,000) Singapore Labour Foundation 24 (76,341) (47,018) (76,341) (47,018)

Profit after contributions 605,619 72,586 262,322 138,427 Honorarium to directors (122,150) (40,200) (122,150) (40,200)

Profit for the financial year 483,469 32,386 140,172 98,227 Other comprehensive income: Available-for-sale financial assets - fair value gain/(loss) 16 163,395 (45,000) 163,395 (45,000) - reclassifications to profit or loss 16 - (79,412) - (79,412) Income tax relating to components

of other comprehensive income - - - - Other comprehensive income for

the financial year, net of tax 163,395 (124,412) 163,395 (124,412) Total comprehensive income for

the financial year 646,864 (92,026) 303,567 (26,185)


Page 7

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 Group Co-operative Note 2013 2012 2013 2012 $ $ $ $ Continuing operations Revenue 17 102,510,277 91,379,176 94,792,976 84,575,237 Other operating income 18 6,183,092 5,917,615 7,323,757 7,114,254 Consumables used (69,610,679) (62,035,147) (65,766,737) (58,656,258) Staff costs 19 (17,441,967) (16,048,587) (15,581,941) (14,372,066) Depreciation expense (2,900,446) (2,559,195) (2,873,356) (2,539,299) Rental expense (10,649,507) (9,592,134) (10,596,540) (9,638,296) Other operating expenses (6,733,413) (6,012,849) (6,417,844) (5,718,719) Finance costs 20 (516,652) (527,296) (516,652) (527,296) Profit before income tax and

contributions 21 840,705 521,583 363,663 237,557 Income tax expense 22 (133,745) (177,370) - - Profit for the financial year from

continuing operations 706,960 344,213 363,663 237,557 Discontinuing operation Loss for the financial year from

discontinuing operation 7 - (199,609) - (27,112)

Profit before contributions 706,960 144,604 363,663 210,445 Contributions Central Co-operative Fund 23 (25,000) (25,000) (25,000) (25,000) Singapore Labour Foundation 24 (76,341) (47,018) (76,341) (47,018)

Profit after contributions 605,619 72,586 262,322 138,427 Honorarium to directors (122,150) (40,200) (122,150) (40,200)

Profit for the financial year 483,469 32,386 140,172 98,227 Other comprehensive income: Available-for-sale financial assets - fair value gain/(loss) 16 163,395 (45,000) 163,395 (45,000) - reclassifications to profit or loss 16 - (79,412) - (79,412) Income tax relating to components

of other comprehensive income - - - - Other comprehensive income for

the financial year, net of tax 163,395 (124,412) 163,395 (124,412) Total comprehensive income for

the financial year 646,864 (92,026) 303,567 (26,185)

33


Page 8

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) Group Co-operative Note 2013 2012 2013 2012 $ $ $ $ Profit/(Loss) for the financial

year attributable to: Owners of the parent 210,224 (181,147) 140,172 98,227 Non-controlling interest 273,245 213,533 - -

483,469 32,386 140,172 98,227

Total comprehensive income

attributable to: Owners of the parent 373,619 (305,559) 303,567 (26,185) Non-controlling interest 273,245 213,533 - -

646,864 (92,026) 303,567 (26,185)


Page 8

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) Group Co-operative Note 2013 2012 2013 2012 $ $ $ $ Profit/(Loss) for the financial

year attributable to: Owners of the parent 210,224 (181,147) 140,172 98,227 Non-controlling interest 273,245 213,533 - -

483,469 32,386 140,172 98,227

Total comprehensive income

attributable to: Owners of the parent 373,619 (305,559) 303,567 (26,185) Non-controlling interest 273,245 213,533 - -

646,864 (92,026) 303,567 (26,185)


34

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36


Page 11

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued)

Note Share

capital Fair value

reserve Retained earnings

Total equity

$ $ $ $ Co-operative Balance at 1 April 2012 100,000 279,750 18,422,208 18,801,958

Profit for the financial year - - 140,172 140,172 Other comprehensive income for

the financial year: Available-for-sale financial assets: - fair value gain 9 - 163,395 - 163,395 Total comprehensive income for

the financial year - 163,395 140,172 303,567 Distribution to owners of the

parent Dividends 25 - - (3,000) (3,000)

Balance at 31 March 2013 100,000 443,145 18,559,380 19,102,525

Note Share

capital Fair value


Total equity



the financial year: Available-for-sale financial assets: - fair value loss 9,16 - (45,000) - (45,000) - reclassifications to profit or loss 16 - (79,412) - (79,412) Total comprehensive income for

the financial year - (124,412) 98,227 (26,185) Distribution to owners of the


Balance at 31 March 2012 100,000 279,750 18,422,208 18,801,958


Page 11

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued)

Note Share

capital Fair value


Total equity



the financial year: Available-for-sale financial assets: - fair value gain 9 - 163,395 - 163,395 Total comprehensive income for

the financial year - 163,395 140,172 303,567 Distribution to owners of the


Balance at 31 March 2013 100,000 443,145 18,559,380 19,102,525

Note Share

capital Fair value


Total equity



the financial year: Available-for-sale financial assets: - fair value loss 9,16 - (45,000) - (45,000) - reclassifications to profit or loss 16 - (79,412) - (79,412) Total comprehensive income for

the financial year - (124,412) 98,227 (26,185) Distribution to owners of the


Balance at 31 March 2012 100,000 279,750 18,422,208 18,801,958

37


Page 12

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 Group Note 2013 2012 $ $ Operating activities Profit before income tax and contributions 840,705 321,974 Adjustments for: Allowance for doubtful third parties trade receivables 42,106 15,601 Depreciation of property, plant and equipment 2,665,273 2,367,818 Depreciation of investment properties 235,173 235,169 Dividend income (49,582) (59,076) Dividends paid to members in respect of share capital

repayable on demand 516,652 527,296 Gain on disposal of available-for-sale financial assets - (67,179) Interest income (29,136) (49,428) Inventories written off 111,295 30,275 Loss on disposal of assets held for sale - 36,987 Gain on disposal of property, plant and equipment (9,300) (36,120) Property, plant and equipment written off 24,977 110,826 Reversal of allowance for impairment loss on investment

properties - (808,060)

Operating cash flows before working capital changes 4,348,163 2,626,083 Working capital changes: Inventories (688,108) (742,958) Trade and other receivables 885,481 (1,489,587) Prepayments (40,972) 174,139 Trade and other payables (121,898) 1,539,999

Cash generated from operations 4,382,666 2,107,676 Contributions paid to: - Central Co-operative Fund (25,000) (25,000) - Singapore Labour Foundation (47,018) (341,004) Income tax paid (172,173) (129,943) Interest received 29,136 49,428 Directors' honorarium paid (51,150) (66,000)

Net cash from operating activities 4,116,461 1,595,157


Page 12

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 Group Note 2013 2012 $ $ Operating activities Profit before income tax and contributions 840,705 321,974 Adjustments for: Allowance for doubtful third parties trade receivables 42,106 15,601 Depreciation of property, plant and equipment 2,665,273 2,367,818 Depreciation of investment properties 235,173 235,169 Dividend income (49,582) (59,076) Dividends paid to members in respect of share capital

repayable on demand 516,652 527,296 Gain on disposal of available-for-sale financial assets - (67,179) Interest income (29,136) (49,428) Inventories written off 111,295 30,275 Loss on disposal of assets held for sale - 36,987 Gain on disposal of property, plant and equipment (9,300) (36,120) Property, plant and equipment written off 24,977 110,826 Reversal of allowance for impairment loss on investment

properties - (808,060)

Operating cash flows before working capital changes 4,348,163 2,626,083 Working capital changes: Inventories (688,108) (742,958) Trade and other receivables 885,481 (1,489,587) Prepayments (40,972) 174,139 Trade and other payables (121,898) 1,539,999

Cash generated from operations 4,382,666 2,107,676 Contributions paid to: - Central Co-operative Fund (25,000) (25,000) - Singapore Labour Foundation (47,018) (341,004) Income tax paid (172,173) (129,943) Interest received 29,136 49,428 Directors' honorarium paid (51,150) (66,000)

Net cash from operating activities 4,116,461 1,595,157


38


Page 13

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) Group Note 2013 2012 $ $ Investing activities Dividend received from available-for-sale financial assets 49,582 59,076 Purchase of property, plant and equipment 10 (1,851,423) (3,674,046) Proceeds from disposal of property, plant and equipment 80,688 76,447 Purchase of available-for-sale financial assets - (8,028) Proceeds from disposal of available-for-sale financial assets - 192,099 Proceeds from disposal of assets held for sale - 8,919

Net cash used in investing activities (1,721,153) (3,345,533)

Financing activities Dividends paid (838,595) (243,000) Withdrawal of shares (101,000) (107,700)

Net cash used in financing activities (939,595) (350,700)

Net change in cash and cash equivalents 1,455,713 (2,101,076) Cash and cash equivalents at beginning of financial year 16,333,595 18,434,671

Cash and cash equivalents at end of financial year 4 17,789,308 16,333,595


Page 13

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) Group Note 2013 2012 $ $ Investing activities Dividend received from available-for-sale financial assets 49,582 59,076 Purchase of property, plant and equipment 10 (1,851,423) (3,674,046) Proceeds from disposal of property, plant and equipment 80,688 76,447 Purchase of available-for-sale financial assets - (8,028) Proceeds from disposal of available-for-sale financial assets - 192,099 Proceeds from disposal of assets held for sale - 8,919

Net cash used in investing activities (1,721,153) (3,345,533)

Financing activities Dividends paid (838,595) (243,000) Withdrawal of shares (101,000) (107,700)

Net cash used in financing activities (939,595) (350,700)

Net change in cash and cash equivalents 1,455,713 (2,101,076) Cash and cash equivalents at beginning of financial year 16,333,595 18,434,671

Cash and cash equivalents at end of financial year 4 17,789,308 16,333,595

39

Page 14

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 These notes form an integral part of and should be read in conjunction with the financial statements. 1. General corporate information

NTUC Unity Healthcare Co-operative Limited (the "Co-operative") is incorporated and domiciled in the Republic of Singapore. The Co-operative’s registered office address and principal place of business is at 55 Ubi Avenue 1, #08-01, Singapore 408935. The Co-operative’s registration number is S92CS0208D. The principal activities of the Co-operative are those relating to retail pharmacy, provisions of dental services and dental care facilities to members and the public, and investment holding. The principal activities of the subsidiaries are set out in Note 8 to the financial statements. The consolidated financial statements of the Co-operative and its subsidiaries (the “Group”) and the statement of financial position, statement of comprehensive income and statement of changes in equity of the Co-operative for the financial year ended 31 March 2013 were authorised for issue in accordance with a Directors’ resolution dated 2 August 2013.

2. Summary of significant accounting policies 2.1 Basis of preparation of financial statements

The financial statements are prepared in accordance with the provisions of the Co-operative Societies Act, Chapter 62 (the “Act”) and Singapore Financial Reporting Standards ("FRS") including related Interpretations of FRS (“INT FRS”). The financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies below. Although the Group’s and the Co-operative’s current liabilities exceeded its current assets by $798,892 and $3,583,411 respectively as at 31 March 2013, the financial statements have been prepared on the basis that the Group and Co-operative are going concern as the net current liabilities position is due mainly to the share capital repayable on demand. In the opinion of the Directors, based on past experience, the share capital will not be substantially redeemed in the next twelve months. Items included in the individual financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The financial statements of the Group and of the Co-operative are measured and presented in Singapore dollar, which is the functional currency of the Co-operative. Critical accounting judgements and key sources of estimation uncertainty used that are significant to the financial statements are disclosed in Note 3 to the financial statements. During the current financial year, the Group and the Co-operative have adopted the new or revised FRS and INT FRS that are relevant to their operations and effective for the current financial year. The adoption of the new or revised FRS and INT FRS did not result in any substantial changes to the Group’s and the Co-operative’s accounting policies and has no material effect on the amounts reported for the current and prior financial years.


40

Page 15

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 2. Summary of significant accounting policies (Continued)

2.1 Basis of preparation of financial statements (Continued)

FRS and INT FRS issued but not yet effective At the date of authorisation of these financial statements, the following FRS and INT FRS were issued but not effective:

Effective date (Annual periods beginning on or

after) FRS 1 (Amendments) : Presentation of Items of Other Comprehensive 1 July 2012 Income FRS 19 (Revised) : Employee Benefits 1 January 2013 FRS 27 (Revised) : Separate Financial Statements 1 January 2014 FRS 28 (Revised) : Investments in Associates and Joint Ventures 1 January 2014 FRS 32 (Amendments) : Offsetting Financial Assets and Financial 1 January 2014 Liabilities FRS 36 (Amendments) : Recoverable Amount Disclosures for Non-Financial

Assets 1 January 2014

FRS 101 (Amendments) : Government Loans 1 January 2013 FRS 107 (Amendments) : Offsetting Financial Assets and Financial 1 January 2013 Liabilities FRS 110 : Consolidated Financial Statements 1 January 2014 FRS 111 : Joint Arrangements 1 January 2014 FRS 112 : Disclosure of Interests in Other Entities 1 January 2014 FRS 113 : Fair Value Measurement 1 January 2013 FRS 110, 112 and 27 : Investment Entities 1 January 2014 (Amendments) FRS 110, 111 and 112 : Consolidated Financial Statements, Joint 1 January 2014 (Amendments) Arrangements and Disclosure of Interests in Other Entities: Transition Guidance INT FRS 120 : Stripping Costs in the Production Phase of 1 January 2013 a Surface Mine INT FRS 121 : Levies 1 January 2014 Improvements to FRSs 2012 1 January 2013 - FRS 1 (Amendments) : Presentation of Financial Statements - FRS 16 (Amendments) : Property, Plant and Equipment - FRS 32 (Amendments) : Financial Instruments: Presentation Consequential amendments were also made to various standards as a result of these new/revised standards.

Page 15



FRS and INT FRS issued but not yet effective At the date of authorisation of these financial statements, the following FRS and INT FRS were issued but not effective:

Effective date (Annual periods beginning on or

after) FRS 1 (Amendments) : Presentation of Items of Other Comprehensive 1 July 2012 Income FRS 19 (Revised) : Employee Benefits 1 January 2013 FRS 27 (Revised) : Separate Financial Statements 1 January 2014 FRS 28 (Revised) : Investments in Associates and Joint Ventures 1 January 2014 FRS 32 (Amendments) : Offsetting Financial Assets and Financial 1 January 2014 Liabilities FRS 36 (Amendments) : Recoverable Amount Disclosures for Non-Financial

Assets 1 January 2014

FRS 101 (Amendments) : Government Loans 1 January 2013 FRS 107 (Amendments) : Offsetting Financial Assets and Financial 1 January 2013 Liabilities FRS 110 : Consolidated Financial Statements 1 January 2014 FRS 111 : Joint Arrangements 1 January 2014 FRS 112 : Disclosure of Interests in Other Entities 1 January 2014 FRS 113 : Fair Value Measurement 1 January 2013 FRS 110, 112 and 27 : Investment Entities 1 January 2014 (Amendments) FRS 110, 111 and 112 : Consolidated Financial Statements, Joint 1 January 2014 (Amendments) Arrangements and Disclosure of Interests in Other Entities: Transition Guidance INT FRS 120 : Stripping Costs in the Production Phase of 1 January 2013 a Surface Mine INT FRS 121 : Levies 1 January 2014 Improvements to FRSs 2012 1 January 2013 - FRS 1 (Amendments) : Presentation of Financial Statements - FRS 16 (Amendments) : Property, Plant and Equipment - FRS 32 (Amendments) : Financial Instruments: Presentation Consequential amendments were also made to various standards as a result of these new/revised standards.

41

Page 16



FRS and INT FRS issued but not yet effective (Continued) The management anticipates that the adoption of the above FRS and INT FRS in future periods, if applicable, will not have a material impact on the financial statements of the Co-operative in the period of initial adoption, except as disclosed below. Amendments to FRS 1 Presentation of Items of Other Comprehensive Income The amendments to FRS 1 changes the grouping of items presented in other comprehensive income. Items that could be reclassified to profit or loss at a future point in time would be presented separately from items which will never be reclassified. As the amendments only affect the presentation of items that are already recognised in other comprehensive income, the Group does not expect any impact on its financial position or performance upon adoption of this standard from the financial year beginning 1 April 2013. FRS 110 Consolidated Financial Statements and FRS 27 Separate Financial Statements FRS 110 replaces the control assessment criteria and consolidation requirements currently in FRS 27 and INT FRS 12, Consolidation – Special Purpose Entities. FRS 110 defines the principle of control and establishes a new control model as the basis for determining which entities are consolidated in the consolidated financial statements. FRS 27 remains as a standard applicable only to separate financial statements. On adoption of FRS 110 management will be required to exercise more judgement than under the current requirements of FRS 27 in order to determine which entities are controlled by the Group. These changes will take effect from the financial year beginning on 1 April 2014 with full retrospective application. FRS 112 Disclosures of Interests in Other Entities FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interest in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. FRS 112 requires an entity to disclose information that helps users of its financial statements to evaluate the nature and risks associated with its interests in other entities and the effects of those interests on its financial statements. The Group is currently determining the impact of the disclosure requirements. As this is a disclosure standard, it will have no impact to the financial position and financial performance of the Group upon adoption of this standard from the financial year beginning on or after 1 April 2014. FRS 113 Fair Value Measurement FRS 113 is a new standard that applies to both financial and non-financial items providing guidance on how to measure fair value in situations where fair value measurement is required by other FRSs. It provides a common fair value definition and hierarchy applicable to the fair value measurement of assets, liabilities, and an entity’s own equity instruments within its scope, as well as disclosure requirements. FRS 113 will be effective prospectively from the financial year beginning on 1 April 2013.


42

Page 17


2.2 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Co-operative and its subsidiaries made up to the end of the financial year. The financial statements of the subsidiaries are prepared for the same reporting date as that of the parent. Subsidiaries are consolidated from the date on which control is transferred to the Group up to the effective date on which that control ceases. In preparing the consolidated financial statements, inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of impairment loss of the asset transferred. Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. Non-controlling interest in the acquiree may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the parent. When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognised in other comprehensive income in relation to the subsidiary are accounted for (i.e. reclassified to profit or loss or transferred directly to accumulated profits) in the same manner as would be required if the relevant assets or liabilities were disposed of. The fair value of any investments retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under FRS 39 Financial Instruments: Recognition and Measurement or, when applicable, the cost on initial recognition of an investment in an associate or jointly controlled entity.

43

Page 18


2.3 Business combinations

Business combinations from 1 July 2009 The acquisition of subsidiaries is accounted for using the acquisition method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under FRS 103 are recognised at their fair values at the acquisition date, except for non-current assets (or disposal groups) that are classified as held-for-sale in accordance with FRS 105 Non-Current Assets Held for Sale and Discontinued Operations, which are recognised and measured at the lower of cost and fair value less costs to sell. Where a business combination is achieved in stages, the Group’s previously held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. the date the Group attains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under FRS 103 are recognised at their fair value at the acquisition date, except that: • deferred tax assets or liabilities and liabilities or assets related to employee benefit

arrangements are recognised and measured in accordance with FRS 12 Income Taxes and FRS 19 Employee Benefits respectively;

• liabilities or equity instruments related to the replacement by the Group of an

acquiree’s share-based payment awards are measured in accordance with FRS 102 Share-based Payment; and

• assets (or disposal groups) that are classified as held for sale in accordance with FRS

105 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see below), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date. The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that existed as of the acquisition date, and is subject to a maximum of one year.


44

Page 19


2.3 Business combinations (Continued)

Business combinations from 1 July 2009 (Continued) Goodwill arising on acquisition is recognised as an asset at the acquisition date and initially measured at cost, being the excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer previously held equity interest (if any) in the entity over net acquisition-date fair value amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the Group’s interest in the net fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain. Business combinations before 1 July 2009 In comparison to the above mentioned requirements, the following differences applied: Business combinations are accounted for by applying the purchase method. Transaction costs directly attributable to the acquisition formed part of the acquisition costs. The non-controlling interest (formerly known as minority interest) was measured at the proportionate share of the acquiree's identifiable net assets. Business combinations achieved in stages were accounted for as separate steps. Adjustments to those fair values relating to previously held interests are treated as a revaluation and recognised in equity. When the Group acquired a business, embedded derivatives separated from the host contract by the acquiree are not reassessed on acquisition unless the business combination results in a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required under the contract. Contingent consideration was recognised if, and only if, the Group had a present obligation, the economic outflow was probable and a reliable estimate was determinable. Subsequent measurements to the contingent consideration affected goodwill.

2.4 Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash and deposits with banks and financial institutions. Cash and cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

45

Page 20


2.5 Financial assets

The Group and the Co-operative classify their financial assets as loans and receivables and available-for-sale financial assets. The classification depends on the purpose of which the assets were acquired. The management determines the classification of the financial assets at initial recognition and re-evaluates this designation at the end of the reporting period, where allowed and appropriate. (i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are classified within “cash and cash equivalents” and “trade and other receivables” on the statements of financial position.

(ii) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are not classified in any other categories. They are included in non-current assets unless the management intends to dispose the assets within 12 months after the end of the reporting period.

Recognition and derecognition Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group and the Co-operative commit to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group and the Co-operative have transferred substantially all risks and rewards of ownership. On derecognition of a financial asset, the difference between the carrying amount and the net consideration proceeds is recognised in profit or loss. Any amount in the fair value reserve relating to the asset is also recognised in profit or loss. Initial and subsequent measurement Financial assets are initially recognised at fair value plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. After initial recognition, loans and receivables are carried at amortised cost using the effective interest method, less impairment loss, if any. After initial recognition, available-for-sale financial assets are re-measured at fair value with gains or losses from changes in fair value of the financial asset are recognised in other comprehensive income except that impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gains or losses previously recognised in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment when the financial assets are derecognised.


46

Page 21


2.5 Financial assets (Continued)

Initial and subsequent measurement (Continued) The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the relevant year. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instruments, or where appropriate, a shorter period. Impairment The Group and the Co-operative assess at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. (i) Loans and receivables

An allowance for impairment loss of loans and receivables is recognised when there is objective evidence that the Group and the Co-operative will not be able to collect all amounts due according to the original terms of the receivables. The amount of allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss is recognised in profit or loss. If, in a subsequent year, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed either directly or by adjusting an allowance account. Any subsequent reversal of an impairment loss is recognised in profit or loss, to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date.

(ii) Available-for-sale financial assets Significant or prolonged decline in fair value below cost, significant financial difficulties of the issuer or obligor, and the disappearance of an active trading market are considerations to determine whether there is objective evidence that investment securities classified as available-for-sale financial assets are impaired. If an available-for-sale asset is impaired, an amount comprising the difference between its cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss, is transferred from other comprehensive income to profit or loss. Reversals of impairment losses on debt instruments are not recognised in profit or loss. Reversals of impairment losses on debt instruments are recognised in profit or loss if the increase in fair value of the debt instrument can be objectively related to an event occurring after the impairment loss was recognised in profit or loss.

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2.6 Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis and includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price at which the inventories can be realised in the normal course of business less estimated costs of completion and costs incurred in marketing and distribution. When necessary, allowance is made for obsolete, slow-moving and defective inventories to adjust the carrying value of those inventories to the lower of cost and net realisable value.

2.7 Non-current assets (or disposal groups) and discontinued operations held for sale Non-current assets (or disposal groups) are classified as held-for-sale if its carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Events or circumstances may extend the period to complete the sale beyond one year and this does not preclude an asset (or disposal group) from being classified as held for sale if the delay is caused by events or circumstances beyond the entity’s control and there is sufficient evidence that the entity remains committed to its plan to sell the disposal group. Non-current assets (or disposal groups) classified as held-for-sale are measured at the lower of the asset’s previously carrying amount and fair value less costs to sell. Any impairment loss on initial classification and subsequent measurement is recognised as an expense. Any subsequent increase in fair value less costs to sell (not exceeding the accumulated impairment loss that has been previously recognised) is recognised in profit or loss. A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and (i) represents a separate major line of business or geographical area of operations; (ii) is part of a single co-ordinated plan to dispose of a separate major line or

geographical area of operations; and (iii) is a subsidiary acquired exclusively with a view to resale.

2.8 Subsidiary A subsidiary is an entity (including special purposes entity) over which the Group has power to govern the financial and operating policies, generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The investments in subsidiaries are accounted for at cost less accumulated impairment losses in the Co-operative’s separate financial statements.


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2.9 Property, plant and equipment

Property, plant and equipment are initially recorded at cost. Subsequent to initial recognition, property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. The cost of property, plant and equipment includes expenditure that is directly attributable to the acquisition of the items. Dismantlement, removal or restoration costs are included as part of the cost of property, plant and equipment if the obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring or using the property, plant and equipment. Subsequent expenditure relating to the property, plant and equipment that has already been recognised is added to the carrying amount of the asset when it is probable that the future economic benefits, in excess of standard of performance of the asset before the expenditure was made, will flow to the Group and the Co-operative, and the cost can be reliably measured. Other subsequent expenditure is recognised as an expense during the financial year in which it is incurred. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in profit or loss in the financial year the asset is derecognised. Depreciation is calculated using the straight-line method so as to allocate the depreciable amounts of the property, plant and equipment over their estimated useful lives as follows: Years Freehold property 50 Leasehold building 50 Leasehold properties 50 Dental equipment 5 Medical equipment 5 Furniture and fittings 3 Computer and office equipment 3 to 5 Computer software 2 to 5 Motor vehicles 3 to 10 The residual values, useful life and depreciation method of property, plant and equipment are reviewed at each financial year-end to ensure that the residual values, period of depreciation and depreciation method are consistent with previous estimates and expected pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment.

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2.10 Investment properties

Investment properties, which are properties held to earn rentals and/or for capital appreciation are initially recognised at cost and subsequently carried at cost less accumulated depreciation and impairment losses. Depreciation is charged using the straight-line method, so as to write off the cost over their estimated useful lives of 50 years. The residual values, useful lives and depreciation method of investment properties are reviewed and adjusted as appropriate, at the end of each reporting period. The effect of any revision is included in profit or loss when the changes arise. Investment properties are subject to renovations or improvements at regular intervals. The costs of major renovations and improvements are capitalised as additions and the carrying amounts of the replaced components are written off to profit or loss. The costs of maintenance, repairs and minor improvement are charged to profit or loss when incurred. Investment properties are derecognised when either they have been disposed of or when the investment properties are permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of investment properties are recognised in profit or loss in the financial year of retirement or disposal. Transfers are made to or from investment properties only when there is a change in use. For a transfer from investment properties to owner occupied property, the deemed cost for subsequent accounting is the fair value at the date of change in use. For a transfer from owner occupied property to investment properties, the property is accounted for in accordance with FRS 16 Property, Plant and Equipment, up to the date of change in use.

2.11 Impairment of non-financial assets

The carrying amounts of the non-financial assets are reviewed at the end of each reporting period to determine whether there is any indication of impairment loss and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If any such indication exists, or when annual impairment testing for an asset is required, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that are largely independent from other assets and groups of assets. Impairment loss is recognised in profit or loss unless it reverses a previous revaluation, credited to other comprehensive income, in which case it is also recognised in other comprehensive income up to the amount of any previous revaluation.


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2.11 Impairment of non-financial assets (Continued)

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. Recoverable amount is determined for individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. The fair value less costs to sell is the amount obtainable from the sale of an asset or cash-generating unit in an arm’s length transaction between knowledgeable, willing parties, less costs of disposal. Value in use is the present value of estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life, discounted at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating unit for which the future cash flow estimates have not been adjusted. An assessment is made at the end of each reporting period as to whether there is any indication that an impairment loss recognised in prior periods for an asset may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. An impairment loss recognised in prior periods is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognised. Reversals of impairment loss are recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal in excess of impairment loss recognised in profit or loss in prior periods is treated as a revaluation increase. After such a reversal, the depreciation is adjusted in future years to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

2.12 Financial liabilities Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities. Financial liabilities are classified as at fair value through profit or loss if the financial liability is either held for trading or it is designated as such upon initial recognition. The accounting policies adopted for other financial liabilities are set out below: (i) Trade and other payables

Trade and other payables are recognised initially at cost which represents the fair value of the consideration to be paid in the future, less transaction cost, if any, for goods received or services rendered, whether or not billed to the Group and the Co-operative, and are subsequently measured at amortised cost using the effective interest method. Gains or losses are recognised in profit or loss when the liabilities are derecognised as well as through the amortisation process.

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2.12 Financial liabilities (Continued)

(ii) Share capital repayable on demand

Ordinary shares issued by the Co-operative which are repayable on demand as they are redeemable at the option of the shareholders are initially recorded at the proceeds received, net of direct issue costs. Dividends paid to the shareholders are recognised in profit or loss as finance costs.

Recognition and derecognition Financial liabilities are recognised on the statements of financial position when, and only when, the Group and the Co-operative become parties to the contractual provisions of the financial instruments. Financial liabilities are derecognised when the contractual obligation has been discharged or cancelled or expired. On derecognition of a financial liability, the difference between the carrying amount and the consideration paid is recognised in profit or loss. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

2.13 Provision Provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. Changes in the estimated timing or amount of the expenditure or discount rate are recognised in profit or loss when the changes arise.


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2.14 Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of their liabilities. Ordinary shares are classified as equity and recognised at the fair value of the consideration received by the Co-operative. Incremental costs directly attributable to the issuance of new equity instruments are shown in equity as a reduction from the proceeds.

2.15 Dividends Equity dividends are recognised when they become legally payable. Interim dividends are recorded in the financial year in which they are declared payable. Final dividends are recognised as a liability in the financial year in which the dividends are approved by the members.

2.16 Revenue recognition Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and services rendered in the ordinary course of business. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. Revenue is presented, net of rebates and discounts and sales related taxes. Revenue from sale of goods is recognised upon passage of title to the customer which coincides with the delivery and acceptance, the significant risks and rewards of ownership has been transferred to customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably. Revenue from rendering of services is recognised as and when the services are completed. Rental income under operating leases is recognised in profit or loss on a straight-line basis over the term of the lease. Dividend income is recognised in profit or loss when the shareholders’ right to receive the payment is established. Interest income is recognised on a time-apportionment basis using the effective interest method. Advertising income comprises display income and trading term rebate from suppliers. Display income is recognised on straight-line basis over the duration of display. Trading term rebate is recognised when the entitlement to the rebate is established.

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2.17 Employee benefits

Defined contribution plans Contributions to defined contribution plans are recognised as expenses in profit or loss in the same financial year as the employment that gives rise to the contributions. Employee leave entitlement Employee entitlements to annual leave are recognised when they accrue to employees. An accrual is made for the estimated liability for unutilised annual leave as a result of services rendered by employees up to the end of the reporting period.

2.18 Leases

When the Group and the Co-operative are the lessors of operating leases Leases where the Group and the Co-operative retains substantially all risks and rewards incidental to the ownership are classified as operating leases. Assets leased out under operating leases are included in investment properties. Rental income from operating leases (net of any incentives given to lessees) is recognised in profit or loss on a straight-line basis over the lease term. When the Group and the Co-operative are the lessees of operating leases Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are recognised in profit or loss on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the financial year in which termination takes place.

2.19 Government grants Government grants are recognised at the fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Where the grants relate to expenditures, which are not capitalised, the fair value of grants are credited to profit or loss as and when the underlying expenses are included and recognised in profit or loss to match such related expenditures.

2.20 Taxes Income tax expense represents the sum of the tax currently payable and deferred tax.


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2.20 Taxes (Continued)

Current income tax The tax currently payable is based on taxable profit for the financial year. Taxable profit differs from profit as reported in profit or loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or tax deductible. The Group’s liability for current tax is calculated using tax rates (and tax laws) that have been enacted or substantively enacted by the end of the financial year. Deferred tax Deferred tax is recognised on the differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Current and deferred tax are recognised as an expense or income in profit or loss, except when they relate to items credited or debited directly to equity, in which case the tax is also recognised directly in equity. Sales tax Revenue, expenses and assets are recognised net of the amount of sales tax except: • when the sales tax that is incurred on purchase of assets or services in not recoverable

from the tax authorities, in which case the sales tax is recognised as part of cost of acquisition of the asset or as part of the expense item as applicable; and

• receivables and payables that are stated with the amount of sales tax included.

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2.21 Foreign currencies

In preparing the financial statements, transactions in currencies other than the entity’s functional currency (“foreign currencies”) are recorded at the rates of exchange prevailing on the date of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period. Non-monetary items carried at fair value that are denominated in foreign currencies are re-translated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. Exchange differences arising on the settlement of monetary items and on re-translating of monetary items are recognised in profit or loss for the financial year. Exchange differences arising on the re-translation of non-monetary items carried at fair value are included in profit or loss for the financial year except for differences arising on the re-translation of non-monetary items in respect of which gains and losses are recognised in other comprehensive income. For such non-monetary items, any exchange component of that gain or loss is also recognised in other comprehensive income.

3. Critical accounting judgements and key sources of estimation uncertainty In the application of the Group’s and the Co-operative’s accounting policies, which are described in Note 2, management made judgements, estimates and assumptions about the carrying amounts of assets and liabilities that were not readily apparent from other sources. The estimates and associated assumptions were based on historical experience and other factors that were considered to be reasonable under the circumstances. Actual results may differ from these estimates. These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. 3.1 Critical judgements in applying the accounting policies

The following are the critical judgements, apart from those involving estimations (see below), that management has made in the process of applying the Group’s and the Co-operative’s accounting policies and that have the significant effect on the amounts recognised in the financial statements. (i) Impairment of investments in subsidiaries and financial assets

The Group and the Co-operative follow the guidance of FRS 36 and FRS 39 in determining whether an investment or a financial asset is impaired. This determination requires significant judgement. The Group and the Co-operative evaluate, among other factors, the duration and extent to which the fair value of an investment or a financial asset is less than its cost, and the financial health of and near-term business outlook for the investment or financial asset, including factors such as industry and sector performance, changes in technology and operational and financing cash flow.


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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 3. Critical accounting judgements and key sources of estimation uncertainty (Continued)

3.2 Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities and the reported amounts of revenue and expenses within the next financial year are discussed below. (i) Allowance for doubtful receivables

The management establishes allowance for doubtful receivables on a case-by-case basis when they believe that payment of amounts owed is unlikely to occur. In establishing these allowances, the management considers its historical experience and changes to its customers’ financial position. If the financial conditions of receivables were to deteriorate, resulting in impairment of their ability to make the required payments, additional allowances may be required. The carrying amounts of the Group’s and the Co-operative’s trade and other receivables as at 31 March 2013 were $5,514,862 (2012: $6,442,449) and $6,387,846 (2012: $8,961,327) respectively.

(ii) Allowance for inventory obsolescence Inventories are stated at the lower of cost and net realisable value. The management primarily determines cost of inventories using the weighted average method. The management estimates the net realisable value of inventories based on assessment of receipt or committed sales price and provide for excess and obsolete inventories based on historical usage, estimated future demand and related pricing. In determining excess quantities, the management considers recent sales activities, related margin and market positioning of its products. However, factors beyond its control, such as demand levels, could change from period to period. Such factors may require the Group and the Co-operative to reduce the value of their inventories. The carrying amounts of the Group’s and the Co-operative’s inventories as at 31 March 2013 were $13,895,669 (2012: $13,318,856) and $12,815,145 (2012: $11,824,615) respectively.

(iii) Depreciation of property, plant and equipment and investment properties Property, plant and equipment and investment properties are depreciated on a straight-line method over their estimated useful lives. The management estimates the useful lives of these assets to be within 2 to 50 years. The carrying amounts of the Group’s and the Co-operative’s property, plant and equipment as at 31 March 2013 were $12,338,272 (2012: $13,143,487) and $12,289,144 (2012: $13,079,469) respectively. The carrying amounts of the Group’s and the Co-operative’s investment properties were $8,079,281 (2012: $8,314,454) and $8,079,281 (2012: $8,314,454) respectively. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.

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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 3. Critical accounting judgements and key sources of estimation uncertainty (Continued)

3.2 Key sources of estimation uncertainty (Continued)

(iv) Income taxes

The Group recognises expected liabilities for income tax based on estimation of the likely taxes due, which requires significant judgement as to the ultimate tax determination of certain items. Where the final tax outcome of these matters differs from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions, in the period in which such determination is made. The carrying amounts of the Group’s current income tax payable and deferred tax liabilities as at 31 March 2013 were $200,306 (2012: $238,734) and $1,988 (2012: $1,988).

(v) Provision Provision for reinstatement costs refers to costs required to reinstate its office premise and retail outlets to its original state according to the terms and conditions of the respective tenancy agreements. The calculation requires the management to estimate the expected future cash outflows as a result of site restoration and review the estimates used on an annual basis to reflect current market assessments with reference to the area of the rented space. Due to the nature of such provisions, estimates are subject to significant uncertainty. The carrying amounts of the Group’s and the Co-operative’s provision for reinstatement costs as at 31 March 2013 were $900,000 (2012: $795,000) and $900,000 (2012: $795,000) respectively.

4. Cash and cash equivalents

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Cash at bank 11,030,920 10,368,070 9,815,395 8,864,127 Fixed deposits 6,578,394 5,794,825 5,028,768 3,040,689 Cash on hand 179,994 170,700 177,600 170,100

17,789,308 16,333,595 15,021,763 12,074,916 The Group's and the Co-operative's fixed deposits mature on varying dates between 1 month to 1 year (2012: 3 months to 1 year) and 1 to 9 months (2012: 3 to 9 months) respectively for the financial year ended 31 March 2013. The weighted average effective interest rates on the fixed deposits range from 0.15% to 0.62% (2012: 0.25% to 0.43%) per annum. Cash and cash equivalents are denominated in Singapore dollar.


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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 5. Trade and other receivables

Group Co-operative 2013 2012 2013 2012 $ $. $ $. Trade receivables

- third parties 2,536,331 2,616,876 1,176,888 1,645,721 - related parties - 10,580 - 10,580

2,536,331 2,627,456 1,176,888 1,656,301 Allowance for doubtful trade

receivables - third parties (42,106) (36,850) (42,106) (36,850)

2,494,225 2,590,606 1,134,782 1,619,451 Non-trade receivables

- third parties 407,830 932,053 160,866 699,827 - subsidiaries - - 2,497,558 3,736,526 - related parties 227,329 719,727 227,329 719,727

635,159 1,651,780 2,885,753 5,156,080 Allowance for doubtful non-

trade receivables - third parties (74,982) (74,982) (74,982) (74,982)

560,177 1,576,798 2,810,771 5,081,098 Deposits 2,460,460 2,275,045 2,442,293 2,260,778

5,514,862 6,442,449 6,387,846 8,961,327 Trade amounts due from third parties and related parties are unsecured, non-interest bearing and generally on 30 to 60 (2012: 30) days credit terms. Non-trade amounts due from subsidiaries and related parties are unsecured, non-interest bearing and repayable on demand. The Group’s and the Co-operative’s deposits includes $2,292,108 (2012: $2,201,204) are security deposits from operating lease. Movement in the allowance for doubtful third parties trade receivables are as follows: Group and Co-operative 2013 2012 $ $ Balance at beginning of financial year 36,850 21,249 Allowance made during the financial year 42,106 15,601 Amounts written off (36,850) -

Balance at end of financial year 42,106 36,850

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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 5. Trade and other receivables (Continued)

Movement in the allowance for doubtful third parties non-trade receivables are as follows:

Group and Co-operative 2013 2012 $ $ Balance at beginning and end of financial year 74,982 74,982 As at 31 March 2013, the Group and the Co-operative carried out a review on the recoverable amount of their trade and other receivables. The review led to the recognition of an allowance for doubtful trade receivables of $42,106 (2012: $15,601) that have been recognised in the Group’s and the Co-operative’s profit or loss and included in “Other operating expenses” line item. Trade and other receivables are denominated in the following currencies:

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Singapore dollar 5,275,439 6,312,407 6,387,846 8,961,327 Australian dollar 105,793 67,643 - - New Zealand dollar 46,245 - - - United States dollar 87,362 58,628 - - Other 23 3,771 - -

5,514,862 6,442,449 6,387,846 8,961,327

6. Inventories

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Finished goods 13,895,669 13,318,856 12,815,145 11,824,615 The cost of inventories recognised as an expense and included in “Consumables used” line item in the Group’s and the Co-operative’s profit or loss amounted to $69,610,679 (2012: $62,035,147) and $65,766,737 (2012: $58,656,258) respectively and included in “Loss for the financial year from discontinuing operation” line item in the Group’s and the Co-operative’s profit or loss amounted to $Nil (2012: $219,401) and $Nil (2012: $171,221) respectively. During the financial year, the Group and the Co-operative recognised an inventories written off of $111,295 (2012: 30,275) and $16,535 (2012: $16,593) respectively in “Consumables used” in the profit or loss subsequent to a review carried out by the management on the realisable value of the inventories.


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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 7. Discontinued operation

Provision for chinese medical service operation On 28 November 2011, the Group entered into a business agreement (“Agreement”) with The Lifestar Group Pte Ltd (“Lifestar”) to dispose of its TCM Wellness Business to Lifestar. The effective transfer date is 1 December 2011. Pursuant to the Agreement, the purchase price amounting to $95,000 included taking over of equipment and drug inventory of the 3 remaining outlets in Ang Mo Kio, Choa Chu Kang and Jurong Point. With the completion of the above transaction, the Group’s profit or loss arising from the TCM Wellness Business will be presented as “Discontinued operation” in the Statements of Comprehensive Income. The loss for the financial year from the discontinuing operation is analysed as follows: Group Co-operative 2013 2012 2013 2012 $ $ $ $ Loss for the financial year: - Provision of medical service

operation - (27,112) - (27,112) - Provision of chinese medical

service - (172,497) - - - (199,609) - (27,112) The results of the discontinuing operation for the financial year are as follows: Group Co-operative 2013 2012 2013 2012 $ $ $ $ Revenue - 890,738 - 271,684 Other operating income - 48,261 - 10,923 Consumables used - (219,401) - (171,221) Staff costs - (566,065) - (68,097) Depreciation expense - (43,792) - (253) Rental expense - (181,330) - (16,444) Other operating expenses - (128,020) - (53,704)

Loss for the financial year, representing total comprehensive income for the financial year - (199,609) - (27,112)

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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 7. Discontinued operation

The impact of the discontinued operations on the cash flows of the Group is as follows:

Group 2013 2012 $ $ Operating cash outflows - (73,114) Investing cash inflows - 49,246

Total cash outflows - (23,868)

8. Investments in subsidiaries

Co-operative 2013. 2012 $. $ Unquoted equity shares, at cost 1,501,764 1,501,764 Allowance for impairment loss (231,258) (231,258)

1,270,506. 1,270,506. Movement in allowance for impairment loss is as follows:

Co-operative 2013 2012 $ $ Balance at beginning and end of financial year 231,258 231,258 Details of the subsidiaries are as follows:

Name of company Principal activities Effective equity interest 2013 2012 % % NHC Health Resources Pte Ltd (Singapore)(1)

Dormant 100 100

Unicare Health Pte Ltd (Singapore) (1)

Dormant 100 100

Origins Healthcare Pte Ltd (Singapore)(1)

Trading of health products 80 80

NTUC Unity TCM Wellness Pte Ltd (Singapore)(1)

Dormant 100 100

(1) Audited by BDO LLP, Singapore


62

Page 37

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 9. Available-for-sale financial assets

Group and Co-operative 2013 2012 $ $ Balance at beginning of financial year 883,610 1,124,914 Additions - 8,028 Disposal - (204,332) Fair values changes recognised in other comprehensive

income (Note 16) 163,395 (45,000)

Balance at end of financial year 1,047,005 883,610 Details of the available-for-sale financial assets are as follows:

Group and Co-operative 2013 2012 $ $ Quoted equity investment, at fair value 553,500 616,500

Unquoted equity investments, at cost 694,742 467,110 Allowance for impairment loss (201,237) (200,000)

Carrying amount 493,505 267,110

Total 1,047,005 883,610 As the unquoted investments do not have quoted market prices in an active market and there are no other available methods to reasonably estimate the fair values, it is not practicable to determine the fair values of the unquoted investments with sufficient reliability and these are stated at cost less impairment loss, if any. Quoted equity investment has no fixed maturity date nor coupon rate. The fair value of this investment is based on closing quoted market prices on the last market day of the financial year.

Available-for-sale financial assets are denominated in Singapore dollar.

63

Page

38

NTU

C U

NIT

Y H

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HCA

RE C

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PERA

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MIT

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AN

D IT

S SU

BSID

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3 1,

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195,

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64

Page

39

NTU

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65

Page

40

NTU

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66

Page

41

NTU

C U

NIT

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67

Page 42

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 10. Property, plant and equipment (Continued)

For the purpose of consolidated statement of cash flows, the Group’s additions to property, plant and equipment were financed as follows:

Group 2013 2012 $ $ Additions during the financial year 1,956,423 4,469,046 Less: Provision for reinstatement costs (105,000) (795,000)

Cash payment to acquire plant and equipment 1,851,423 3,674,046

11. Investment properties

Group and

Co-operative $ Cost At 1 April 2012 and 31 March 2013 11,345,933

Accumulated depreciation At 1 April 2012 3,031,479 Depreciation for the financial year 235,173

At 31 March 2013 3,266,652

Carrying amount At 31 March 2013 8,079,281

Cost At 1 April 2011 and 31 March 2012 11,345,933 Accumulated depreciation and impairment loss At 1 April 2011 3,604,370 Depreciation for the financial year 235,169 Reversal of allowance for impairment loss (808,060)

At 31 March 2012 3,031,479 Carrying amount At 31 March 2012 8,314,454


68

Page 43

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 11. Investment properties (Continued)

As at 31 March 2013, the Group and the Cooperative’s investment properties are held under the following tenure:- 2013 2012

Carrying amount Fair value

Carrying amount Fair value

$ $ $ $ Freehold 1,968,499 3,250,000 2,030,500 3,100,000 Leasehold 6,110,782 9,788,000 6,283,954 8,217,000

8,079,281 13,038,000 8,314,454 11,317,000

The above fair value has been determined on the basis of valuation carried out by an independent valuer having an appropriate recognised professional qualification and recent experience in the location and category of the property being valued. The valuation was arrived at by reference to market evidence of transaction prices for similar properties and was performed in accordance with International Valuation Standards. Rental income earned by the Group and Co-operative from the investment properties amounted to $569,917 (2012: $513,292). Direct operating expenses arising from rental-generating investment properties during the financial year amounted to $211,031 (2012: $202,020). Included in investment properties is a carrying amount of approximately $4,037,000 (2012: $4,147,000) representing the Group’s and the Co-operative’s 25% share in certain units jointly-owned with NTUC Income Insurance Co-operative Limited. As at 31 March 2013, the Group and the Co-operative have no contingent liabilities and capital commitments in respect of those units.

12. Deferred tax liabilities

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Deferred tax liabilities 1,988 1,988 - - The following are the major deferred tax liabilities recognised by the Group and movements thereon during the financial year:

Accelerated tax

depreciation $ Balance at 1 April 2012 and 31 March 2013 1,988

Balance at 1 April 2011 and 31 March 2012 1,988

69

Page 44

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 13. Trade and other payables

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Trade payables

- third parties 15,255,929 14,342,011 14,979,909 14,206,432 - subsidiaries - - 78,871 85,907

15,255,929 14,342,011 15,058,780 14,292,339 Non-trade payables

- third parties 651,139 1,986,676 645,763 1,982,281 - subsidiaries - - 921,246 925,684 - related parties 81,236 53,311 81,236 53,311

732,375 2,039,987 1,648,245 2,961,276 Dividend payable 326,160 911,755 76,160 71,755 Central Co-operative Fund 25,000 25,000 25,000 25,000 Singapore Labour Foundation 75,993 46,670 75,993 46,670 Honorarium to directors 122,250 51,150 122,250 51,150 Accrued operating expenses 3,331,853 2,543,505 2,857,708 2,174,707

19,869,560 19,960,078 19,864,136 19,622,897 Trade and non-trade amounts due to third parties are unsecured, non-interest bearing and generally on 60 (2012: 60) days term. Trade amounts due to subsidiaries and related parties are unsecured, non-interest bearing and repayable within trade credit terms. Non-trade amounts due to subsidiaries and related parties are unsecured, non-interest bearing and repayable on demand. Group Co-operative 2013 2012 2013 2012 $ $ $ $ Singapore dollar 19,707,711 19,910,403 19,792,205 19,622,897 Australian dollar 121,529 44,558 50,116 - United States dollar 22,072 4,597 21,815 - Other 18,248 520 - -

19,869,560 19,960,078 19,864,136 19,622,897


70

Page 45

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 14. Provision

Group and Co-operative 2013 2012 $ $ Provision for reinstatement costs 900,000 795,000 Movements in provision for reinstatement costs:

Group and Co-operative 2013 2012 $ $ Balance at beginning of financial year 795,000 - Provision made 105,000 795,000

Balance at end of financial year 900,000 795,000 Provision for reinstatement costs The provision for reinstatement costs are the estimated costs of dismantle, removal or restoration of plant and equipment arising from the acquisition or use of assets, which are recognised and included in the cost of property, plant and equipment.

15. Share capital

Group and Co-operative 2013 2012 2013 2012 Number of ordinary shares $ $ Issued and paid up : At beginning of financial year 17,568,824 17,676,524 17,568,824 17,676,524 Issued during the financial year (101,000) (107,700) (101,000) (107,700)

At end of financial year 17,467,824 17,568,824 17,467,824 17,568,824 The share capital is represented by: Share capital repayable on demand as current liabilities (a) 17,367,824 17,468,824 Share capital classified as equity (b) 100,000 100,000

17,467,824 17,568,824 (a) This relates to the shares held by members where the Co-operative does not have the right

of refusal to redeem the members' shares. Members include an individual person or institution or organisation duly admitted to the membership of the Co-operative in accordance with the By-Law of the Co-operative.

(b) This comprised only the portion that relates to founder member National Trade Union

Congress.

71

Page 46

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 15. Share capital (Continued)

(c) In accordance with By-laws 4.6, every member shall, unless otherwise disqualified under

the Co-operative Societies Act, Chapter 62 or the By-laws, have the right to: (i) avail himself of all services of the Society; (ii) stand for election to office, subject to the provisions of the Act and the By-laws,

where applicable; (iii) be co-opted to hold office in the Society, where applicable; (iv) participate and vote at general meetings; and (v) enjoy all other rights, privileges or benefits provided under the By-laws.

(d) The Co-operative has one class of ordinary share which carries no right to fixed income. During the financial year ended 31 March 2013, in accordance with the By-Laws of the Co-operative, 101,000 (2012: 107,700) ordinary shares of $1 each were withdrawn.

16. Fair value reserve The fair value reserve represents the cumulative fair value changes, net of tax, of available-for-sale financial assets until they are disposed of or impaired.

Group and Co-operative 2013 2012 $ $ At beginning of financial year 279,750 404,162 Fair value gains/(losses) (Note 9) 163,395 (45,000) Transfer to profit or loss upon disposal - (79,412)

At end of financial year 443,145 279,750

17. Revenue

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Continuing operations Sales of goods 91,122,228 79,973,351 83,404,927 73,169,412 Dental services 11,388,049 11,405,825 11,388,049 11,405,825

102,510,277 91,379,176 94,792,976 84,575,237

Discontinuing operations (Note 7) Medical services - 271,684 - 271,684 Chinese medical services - 619,054 - -

- 890,738 - 271,684

Total 102,510,277 92,269,914 94,792,976 84,846,921


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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 18. Other operating income

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Continuing operations Reversal of allowance for

impairment loss on investment property - 808,059 - 808,059

Dividend income 49,582 59,076 1,049,582 1,019,076 Interest income 29,136 49,428 19,815 30,993 Management fee income - - - 9,000 Rental income 1,144,467 1,220,316 1,237,804 1,414,805 Advertising income 4,713,855 3,457,251 4,713,855 3,457,251 Foreign exchange gain, net 1,570 - - - Royalty fees - 15,852 - 15,852 Gain on disposal of property,

plant and equipment 9,300 - - - Government grant 64,091 - 64,091 - Gain on disposal of available-

for-sale financial assets - 67,179 - 67,179 Others 171,091 240,454 238,610 292,039

6,183,092 5,917,615 7,323,757 7,114,254

Discontinuing operations (Note 7) Gain on disposal of business - 36,120 - - Others - 12,141 - 10,923

- 48,261 - 10,923

Total 6,183,092 5,965,876 7,323,757 7,125,177

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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 19. Staff costs

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Continuing operations Salaries, bonuses and other

short-term benefits 15,725,815 14,493,695 13,977,389 12,948,432 Employer’s contribution to

defined contribution plans 1,716,152 1,554,892 1,604,552 1,423,634

17,441,967 16,048,587 15,581,941 14,372,066

Discontinuing operations Salaries, bonuses and other

short-term benefits - 516,228 - 66,323 Employer’s contribution to

defined contribution plans - 49,837 - 1,774

- 566,065 - 68,097

Total 17,441,967 16,614,652 15,581,941 14,440,163 Included in staff costs were key management remuneration as shown in Note 27 to the financial statements.

20. Finance costs Group Co-operative 2013 2012 2013 2012 $ $ $ $ Continuing operations

Dividends paid to members in respect of share capital repayable on demand 516,652 527,296 516,652 527,296


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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 21. Profit before income tax and contributions

The above is arrived at after charging: Group Co-operative 2013 2012 2013 2012 $ $ $ $ Consumables used Continuing operations Inventories written off 111,295 30,275 16,535 16,593

Other operating expenses Continuing operations Advertisement and promotion

expenses 1,405,123 953,098 1,252,057 855,159 Allowance for doubtful trade

receivable – third parties 42,106 - 42,106 - Patronage rebates/discounts 1,432,684 1,044,612 1,432,684 996,680 Property, plant and equipment

written off 24,977 110,826 24,977 110,827

Discontinuing operations Allowance for doubtful trade

receivable – third parties - 15,601 - 15,601 Inventories written off - 1,510 - 1,510 Loss on disposal of assets held

for sale - 36,987 - 36,987

22. Income tax expense

Group 2013 2012 $ $ Continuing operations Current income tax - current financial year 197,000 179,535 - over provision in prior financial years (63,255) (2,165)

Total income tax expense recognised in profit or loss 133,745 177,370

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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 22. Income tax expense (Continued)

Reconciliation of effective income tax rate Group 2013 2012 $ $ Profit before income tax and contributions: Continuing operations 840,705 521,583 Discontinuing operations - (199,609)

840,705 321,974

Income tax at Singapore’s statutory income tax rate of 17% 142,920 54,736 Tax effect of expenses not deductible for income tax purposes 117,031 130,884 Income tax exemption (25,925) (25,925) Productivity and innovation credit (6,516) - Over provision of current income tax in prior financial years (63,255) (2,165) Utilisation of previously unrecognised deferred tax assets - (1,249) Corporate income tax rebate (30,000) - Deferred tax assets not recognised - 27,652 Others (510) (6,563)

133,745 177,370 The Co-operative is a co-operative society registered under the Co-operative Societies Act, Chapter 62 which is exempted from income tax under Section 13 of the Income Tax Act, Chapter 134. Unrecognised deferred tax assets The movement of unrecognised deferred tax assets is as follows: Group 2013 2012 $ $ Balance at beginning of financial year 253,699 227,296 Amount not recognised during financial year - 27,652 Utilisation of deferred tax assets not recognised previously - (1,249)

Balance at end of financial year 253,699 253,699


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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 22. Income tax expense (Continued)

The unrecognised deferred tax assets arise from the following temporary differences:

Group 2013 2012 $ $ Unutilised tax losses 227,595 227,595 Unabsorbed capital allowances 26,104 26,104

253,699 253,699 As at 31 March 2013, the Group has unutilised tax losses of approximately $1,339,000 (2012: $1,339,000) and unabsorbed capital allowances of approximately $154,000 (2012: $154,000) available to offset against future taxable profits subject to the agreement by the tax authorities and provisions of the tax legislations of Singapore. No deferred tax assets have been recognised in respect of the unutilised tax losses and unabsorbed capital allowance of approximately $254,000 (2012: $254,000) as the management is not confident that there will be sufficient future taxable profits to realise these future benefits. Accordingly, these deferred tax assets have not been recognised in the financial statements of the Group in accordance with the accounting policy in Note 2.20 to the financial statements.

23. Central Co-operative Fund In accordance with Section 71 of the Co-operative Societies Act, Chapter 62, the Co-operative is required to contribute 5% of the first $500,000 of its profit before contributions and distributions to the Central Co-operative Fund. During the financial year, the Co-operative made a contribution of $25,000 (2012: $25,000) towards the Central Co-operative Fund.

24. Singapore Labour Foundation In accordance with Section 71 of the Co-operative Societies Act, Chapter 62, the Co-operative opted to contribute 20% of its profit before contributions and distributions in excess of $500,000 to the Singapore Labour Foundation. During the financial year, the Co-operative made a contribution of $76,341 (2012: $47,018) to the Singapore Labour Foundation. Group and Co-operative 2013 2012 $ $ Contribution - current financial year 75,993 47,018 - under provision in prior financial years 348 -

76,341 47,018

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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 25. Dividends

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Dividends to owners of the

parent First and final exempt (one-

tier) dividend paid of $0.03 (2012: $0.03) per share in respect of the previous financial year 3,000 3,000 3,000 3,000

Group 2013 2012 $ $ Dividends to non-controlling interest Interim exempt (one-tier) dividend paid of $6.25 (2012: $6.00)

per share in respect of the current financial year 250,000 240,000 In respect of the current financial year, the Directors propose that a final dividend of $0.03 per share be paid to shareholders at the end of the reporting period, or on a pro-rata basis, if shareholders held such shares for a lesser period than one year.

26. Operating lease commitments The Group and the Co-operative as lessees The Group and the Co-operative lease various retail outlets under non-cancellable operating leases. The leases have variable lease charge of 0.25% to 8.00% (2012: 0.25% to 15.00%) of targeted gross sales as stipulated on the lease agreement and are negotiated for an average term of 3 years. The future minimum lease payables under non-cancellable operating leases contracted for at the end of the reporting period but not recognised as liabilities, are as follows: Group Co-operative 2013 2012 2013 2012 $ $ $ $ Within one financial year 9,267,639 8,782,102 9,138,760 8,658,054 After one financial year but

within five financial years 6,966,394 7,433,699 6,964,154 7,414,421

16,234,033 16,215,801 16,102,914 16,072,475


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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 26. Operating lease commitments (Continued)

The Group and the Co-operative as lessors The Group and the Co-operative lease out various retail and office space under non-cancellable operating leases. The leases are committed for an average of 3 years. The future minimum lease receivables under non-cancellable operating leases contracted for at the end of the reporting period but not recognised as receivables, are as follows: Group and Co-operative 2013 2012 $ $ Within one financial year 1,575,135 1,138,684 After one financial year but within five financial years 630,704 378,860

2,205,839 1,517,544

27. Significant related party transactions A related party is defined as follows: (a) A person or a close member of that person’s family is related to the Group and Co-operative

if that person: (i) Has control or joint control over the Co-operative; (ii) Has significant influence over the Co-operative; or (iii) Is a member of the key management personnel of the Group or Co-operative of a

parent of the Co-operative.

(b) An entity is related to the Group and the Co-operative if any of the following conditions applies: (i) The entity and the Co-operative are members of the same group (which means that

each parent, subsidiary and fellow subsidiary is related to the others). (ii) One entity is an associate or joint venture of the other entity (or an associate or joint

venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint ventures of a third entity and the other entity is an associate of

the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of either

the Co-operative is itself such a plan, the sponsoring employers are also related to the Co-operative.

(vi) The entity is controlled or jointly controlled by a person identified in (a); (vii) A person identified in (a)(i) has significant influence over the entity or is a member of

the key management personnel of the entity (or of a parent of the entity). Many of the Group’s and Co-operative’s transactions and arrangements are with related parties and the effect of these on the basis determined between the parties is reflected in these financial statements. The balances are unsecured, interest-free and repayable on demand unless otherwise stated.

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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 27. Significant related party transactions (Continued)

In addition to the transactions disclosed elsewhere in the financial statements, there were the following significant related party transactions based on terms as agreed between the parties during the financial year: Group Co-operative 2013 2012 2013 2012 $ $ $ $ With subsidiaries Sales - - 543 90 Purchase of goods - - 634,314 517,772 Management fee income - - - 9,000 Rental income - - 139,604 194,489 Dividend income - - 1,000,000 960,000

With related parties Dividend income 31,582 31,247 31,582 31,247 Rental paid 3,263,015 2,362,550 3,263,015 2,362,550 Patronage rebates/discounts 1,432,684 1,044,612 1,432,684 1,044,612 Management fee expense 89,760 238,700 89,760 238,700 Consultancy fees 402,462 312,249 - - Compensation of key management personnel The compensation of Directors and other members of the key management personnel of the Group and the Co-operative during the financial year were as follows: Group Co-operative 2013 2012 2013 2012 $ $ $ $ Short-term benefits 859,259 815,690 595,997 503,431 Post-employment benefits 25,760 26,752 25,760 26,752 Directors’ honorarium 122,250 40,200 122,250 40,200

1,007,269 882,642 744,007 570,383

28. Financial instruments, financial risks and capital management The Group’s and the Co-operative’s activities expose them to credit risk, market risk (including foreign currency risks and interest rate risks), and liquidity risk. The Group’s and the Co-operative’s overall risk management strategy seek to minimise adverse effects from the volatility of financial markets on the Group’s and the Co-operative’s financial performance. There has been no change to the Group’s and the Co-operative’s exposure to these financial risks or the manner in which it manages and measures the risk.


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NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013 (Continued) 28. Financial instruments, financial risks and capital management (Continued)

28.1 Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a loss to the Group and the Co-operative. The Group and the Co-operative have adopted a policy of only dealing with creditworthy counterparties. The Group and the Co-operative perform ongoing credit evaluation of its counterparties’ financial condition and does not require collaterals. The carrying amount of financial assets recorded in the financial statements, grossed up for any allowances for losses, represents the Group’s and the Co-operative’s maximum exposure to credit risk. There is no significant concentration of credit risk with any single customer or group of customers of the total trade and other receivables of the Group and the Co-operative as at the end of the reporting period. The Group’s and the Co-operative’s major classes of financial assets are trade and other receivables and cash and cash equivalents. Trade receivables that are neither past due nor impaired are substantially companies with good collection track record with the Group and the Co-operative. The age analysis of past due trade receivables but not impaired is as follows:

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Past due 1 to 30 days 280,247 391,344 36,358 211,663 Past due 31 to 60 days 358,800 284,014 24,257 70,618 Past due 61 to 90 days 56,849 59,203 6,103 50,186 Past due more than 90 days 159,571 291,031 46,214 251,659

28.2 Market risk

(i) Foreign exchange risk

Currency risk arises from transactions denominated in currency other than the functional currency of the entities within the Group. The currencies that give rise to this risk are primarily Australian dollar, New Zealand dollar and United States dollar. At the end of the reporting period, the carrying amounts of monetary assets and monetary liabilities of the Group denominated in currencies other than the functional currency of the entities within the Group are as follows:

Assets Liabilities 2013 2012 2013 2012 $ $ $ $ Group Australian dollar 105,793 67,643 121,529 44,558 New Zealand dollar 46,245 - - - United States dollar 87,362 58,628 22,072 4,597

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28.2 Market risk (Continued)

(i) Foreign exchange risk (Continued)

Assets Liabilities 2013 2012 2013 2012 $ $ $ $ Co-operative Australian dollar - - 50,116 - United States dollar - - 21,815 - Foreign currency sensitivity analysis The Group’s and the Co-operative’s exposure to foreign currency risks are mainly in Australian dollar, New Zealand dollar and United States dollar. The following table details the Group’s and the Co-operative’s sensitivity to a 5% change in Australian dollar, New Zealand dollar and United States dollar against the respective functional currencies of the entities within the Group. The sensitivity analysis assumes an instantaneous 5% change in the foreign currency exchange rates from the end of the reporting period, with all other variables held constant. The results of the model are also constrained by the fact that only monetary items, which are denominated in Australian dollar, New Zealand dollar and United States dollar are included in the analysis. Consequentially, reported changes in the values of some of the financial instruments impacting the results of the sensitivity analysis are not matched with the offsetting changes in the values of certain excluded items that those instruments are designed to finance or hedge.

Profit or loss 2013 2012 $ $ Group Australian dollar Strengthens against Singapore dollar (787) 1,154 Weakens against Singapore dollar 787 (1,154) New Zealand dollar Strengthens against Singapore dollar 2,312 - Weakens against Singapore dollar (2,312) - United States dollar Strengthens against Singapore dollar 3,265 2,702 Weakens against Singapore dollar (3,265) (2,702)


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28.2 Market risk (Continued)

(i) Foreign exchange risk (Continued)

Profit or loss 2013 2012 $ $ Co-operative Australian dollar Strengthens against Singapore dollar (2,506) - Weakens against Singapore dollar 2,506 - United States dollar Strengthens against Singapore dollar (1,091) - Weakens against Singapore dollar 1,091 -

(ii) Interest rate risk Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Group and the Co-operative do not have significant exposure to interest-bearing financial instrument at the end of the reporting period.

28.3 Liquidity risk Liquidity risk refers to the risk in which the Group and the Co-operative encounter difficulties in meeting their short-term obligations. Liquidity risk is managed by matching the payment and receipt cycle. The Group and the Co-operative actively manage their operating cash flows so as to finance the Group’s and the Co-operative’s operations. As part of its overall prudent liquidity management, the Group and the Co-operative maintain sufficient levels of cash to meet their working capital requirement. The following table details the Group’s and the Co-operative’s remaining contractual maturity for its non-derivative financial instruments. The table has been drawn up based on undiscounted cash flows of financial instruments based on the earlier of the contractual date or when the Group and the Co-operative are expected to pay. The table below includes both interest and principal cash flows.

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28.3 Liquidity risk (Continued) Contractual maturity analysis

Group within one financial

year

Co-operative within one

financial year $ $ 2013 Financial assets Non-interest bearing 17,772,781 17,427,846 Interest bearing 6,578,394 5,028,768

24,351,175 22,456,614

Financial liabilities

Non-interest bearing 37,237,384 37,231,960

2012 Financial assets Non-interest bearing 7,496,759 10,015,037 Interest bearing 16,162,895 11,904,816

23,659,654 21,919,853

Financial liabilities Non-interest bearing 37,428,902 37,091,721

Non-interest bearing financial liabilities includes share capital repayable on demand which are not expected to be substantially redeemed within one financial year.

28.4 Capital management policies and objectives The Group and the Co-operative manage their capital to ensure that the Group and the Co-operative are able to continue as going concern and to maintain an optimal capital structure so as to maximise shareholders’ value. The Group and the Co-operative manage their capital structure and make adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group and the Co-operative may adjust the return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the financial year.

The Group and the Co-operative monitor capital using a gearing ratio, which is calculated as net debt divided by equity attributable to owners of the parent plus net debt. The Group and the Co-operative include within net debt, trade and other payables and share capital repayable on demand less cash and cash equivalents.


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28.4 Capital management policies and objectives (Continued)

Group Co-operative 2013 2012 2013 2012 $ $ $ $ Trade and other payables 19,869,560 19,960,078 19,864,136 19,622,897 Share capital repayable

on demand 17,367,824 17,468,824

17,367,824 17,468,824

Total debt 37,237,384 37,428,902 37,231,960 37,091,721 Less: Cash and cash

equivalents (17,789,308) (16,333,595)

(15,021,763) (12,074,916)

Net debt 19,448,076 21,095,307 22,210,197 25,016,805 Total equity 20,663,678 20,269,814 19,102,525 18,801,958

Total capital 40,111,754 41,365,121 41,312,722 43,818,763 Gearing ratio 48.5% 51.0% 53.8% 57.1%

28.5 Fair value of financial assets and financial liabilities

The carrying amounts of the current financial assets and current financial liabilities approximate their fair values as at the end of the reporting period due to the relatively short period of maturity of these financial instruments. The fair values of financial assets and liabilities are determined as follows: • the fair value of financial assets and financial liabilities with standard terms and

conditions and traded on active liquid markets are determined with reference to quoted market prices; and

• the fair value of other financial assets and financial liabilities (excluding derivative

instruments) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis.

The management considers that the carrying amounts of the financial assets and financial liabilities recorded at amortised cost in the financial statements approximate their fair values.

The Group and the Co-operative classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: ● Level 1 - quoted prices (unadjusted) in active markets for identical assets or

liabilities; ● Level 2 - inputs other than quoted prices included within Level 1 that are observable

for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

● Level 3 - inputs for the asset or liability that are not based on observable market data

(unobservable inputs).

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28.5 Fair value of financial assets and financial liabilities (Continued)

Group and Co-operative Level 1 Level 2 Level 3 $ $ $ 2013 Assets Available-for-sale financial assets 553,500 - 493,505

2012 Assets Available-for-sale financial assets 616,500 - 267,110

29. Events after the end of the reporting period

On 1 April 2013, certain shareholders of the Co-operative transferred their shares in the Co-operative to a newly incorporated entity, NTUC Enterprise Co-operative Limited (“NTUC Enterprise”). On completion of the share transfer, the Co-operative is a subsidiary of NTUC Enterprise. NTUC Enterprise is the holding entity of the labour movement social enterprises. Collectively owned by the National Trades Union Congress, Singapore Labour Foundation, and their affiliated unions, NTUC Enterprise guides the development of the social enterprises to meet the evolving needs and aspirations of working families in Singapore. On 31 May 2013, the Co-operative acquired 420,000 share of NTUC Eldercare Co-operative Limited, a co-operative incorporated in the Republic of Singapore, at a cash consideration of $420,000. Following the acquisition, NTUC Eldercare Co-operative Limited became a subsidiary of the Co-operative.

8686

OUR STORe LOCATIOnS

ANG MO KiO53 Ang Mo Kio Ave 3#B2-21/25Singapore 569933Tel: 6552 2001

ALEXANDrA rETAiL CENTrE460 Alexandra Road#02-04/05/06 Alexandra Retail CentreSingapore 119963Tel: 6278 8791

BEDOKBlk 212 Bedok north Street 1#02-147Singapore 460212Tel: 6445 9551

BisHAN Blk 510 Bishan Street 13#01-520 (At level 2 of FairPrice)Singapore 570510Tel: 6259 3449

BUKiT MErAHBlk 166 #01-3531Bukit Merah CentralSingapore 150166Tel: 6276 3407

BUKiT PANJANG PLAZA1 Jelebu Road#01-06 Bukit Panjang PlazaSingapore 677743Tel: 6760 2363

BUKiT TiMAH PLAZA1 Jalan Anak Bukit#B1-01 Bukit Timah PlazaSingapore 588996Tel: 6466 2957

CLEMENTiBlk 451 #01-307Clementi Ave 3Singapore 120451Tel: 6779 0438

CLEMENTi MALL3155 Commonwealth Ave West#B1-10/11 The Clementi MallSingapore 129588Tel: 6659 4719

DAWsON PLACEBlk 57 Dawson Road#01-10A Dawson Place Singapore 142057Tel: 6471 1300

EAsTPOiNT (relocation)1 Simei Street 6(Within Fairprice)Singapore 528578Tel : 6788 2415

FOrTUNE CENTrE190 Middle Road #01-26 Fortune CentreSingapore 188979Tel: 6336 3616

GrEAT WOrLD CiTYGreat World City1 Kim Seng Promenade #B1-14/15Singapore 237994Tel: 6235 1601

HArBOUr FrONT CENTrE1 Maritime Square#02-118/119Singapore 099253Tel: 6271 5100

HOLLAND ViLLAGE MrT sTATiON200 Holland Ave#B1-05/06/07 Holland Village MRT StationSingapore 278995Tel: 6462 3580

HOUGANG MALL90 Hougang Ave 10#B1-35/36Singapore 538766Tel: 6385 8606

HOUGANGBlk 202 #01-00Hougang Street 21Singapore 530202Tel: 6383 1308

HOUGANG POiNT (HOUGANG 1)no. 1 Hougang Street 91#02-01 Hougang 1Singapore 538692Tel: 6384 0952

JUrONG POiNT1 Jurong West Central 2#B1-09 Jurong PointSingapore 648886Tel: 6793 5712

J CUBE2 Jurong east Central 1#B1-05Singapore 609731Tel: 6684 4080

JEM50 Jurong Gateway Road#B1-37 JeMSingapore 608549Tel: 6339 4256

KATONG MALL112 east Coast Road #B1-08 Katong MallSingapore 428802Tel: 6636 3160

LOT 1 sHOPPEr’s MALL21 Choa Chu Kang Ave 4#B1-04/05Singapore 689812Tel: 6763 7678

MAriNE PArADEno. 6Marine Parade CentralSingapore 449411Tel: 6345 1548

NEX MALL23 Serangoon Central#03-37/38, nexSingapore 556083Tel: 6509 0316

100AM100 Tras Street#04-06/07Singapore 079027Tel: 6604 6746

PUNGGOL PLAZABlk 168 Punggol Field#03-01/02 Punggol PlazaSingapore 820168Tel: 6343 8336

PLAZA siNGAPUrA68 Orchard RoadPlaza Singapura #B2-20ASingapore 238839Tel: 6238 0230

rAFFLEs CiTY252 north Bridge Road #B1-44LRaffles City Shopping CentreSingapore 179103Tel: 6337 1358

riVErVALE MALL11 Rivervale Crescent#02-02 Rivervale MallSingapore 545082 Tel: 6384 4514

riVErVALE PLAZABlk 118 Rivervale Drive#01-16 Rivervale PlazaSingapore 540118Tel: 6386 4183

siNGAPOrE POsT CENTrE10 eunos Road 8#B2-10 Singapore Post CentreSingapore 408600Tel : 6547 0095

sErANGOON CENTrALBlk 266 Serangoon Central Drive#01-253Singapore 550266Tel: 6487 6178

TiONG BAHrU PLAZA302 Tiong Bahru Road#B1-11 Tiong Bahru PlazaSingapore 168732Tel: 6276 6562

TANGLiN MALL163 Tanglin Road#B1-13 Tanglin MallSingapore 247933Tel: 6732 1380

TOA PAYOH CENTrAL (3)Blk 192 Toa Payoh Lor 4#02-674Singapore 310192Tel: 6354 1775

TAMPiNEs CENTrAL CCBlk 866A Tampines Street 83 #01-01Singapore 521866Tel: 6786 6796

TANJONG PAGArBlk 5 #01-01Tanjong Pagar PlazaSingapore 081005Tel: 6323 1281

TAMAN JUrONG Blk 399 Yung Sheng Road#01-35 Taman Jurong Shopping CentreSingapore 610399Tel: 6264 0921

TAMPiNEs MALL4 Tampines Central 5#B1-12 Tampines MallSingapore 529510Tel: 6783 3903

TAMPiNEs MArTno. 11 Tampines Street 32#01-11 Tampines MartSingapore 529287Tel: 6260 3809

TAMPiNEs ONE10 Tampines Central 1#B1-11/12 Tampines OneSingapore 529536Tel: 6784 6055

TOA PAYOH CENTrAL500 Toa Payoh Lor 6#B1-30Singapore 310500Tel: 6352 2933

8787

ANG MO KiO HUB53 Ang Mo Kio Ave 3 #03-14 Singapore 569933Tel: 6483 5618

BEDOKBlk 203 Bedok north Street 1#01-465 Singapore 460203 Tel: 6445 0886

BisHANBlk 510 Bishan Street 13 #02-04 Singapore 570510 Tel: 6356 5603

BUKiT MErAH CENTrALBlk 163 Bukit Merah Central #03-3599 Singapore 150163 Tel: 6273 3583

CLEMENTi Blk 431 Clementi Ave 3#01-304 Singapore 120431 Tel: 6773 4533

CHOA CHU KANGBlk 309 Choa Chu Kang Ave 4 #03-01 Choa Chu Kang Centre Singapore 680309 Tel: 6763 2692

GOLDEN sHOE CArPArK 50 Market Street #01-30 Singapore 048940Tel: 6221 9295

JUrONG POiNT1 Jurong West Central 2 #B1A-20B Singapore 648886 Tel: 6793 5938

THOMsON PLAZA301 Upper Thomson Road#01-102 Thomson PlazaSingapore 574408Tel: 6552 1965

WOODLANDs CiViC CENTrE900 South Woodlands Drive#B1-01 Woodlands Civic CentreSingapore 730900Tel: 6219 4898

WEsT MALL1 Bukit Batok Central Link#01-08 West MallSingapore 658713Tel: 6792 9730

WHiTE sANDs sHOPPiNG CENTrE1, Pasir Ris Central Street 3 #01-12/12ASingapore 518457Tel: 6581 7736

YisHUNBlk 849 Yishun Ring Road#01-3703Singapore 760849Tel: 6759 1070

YEW TEE POiNT 21 Choa Chu Kang north 6#B1-08/09 Yew Tee PointSingapore 689578Tel: 6762 6549

YisHUN 1Blk 291 Yishun Street 22#01-355Singapore 760291Tel: 6483 8624

MiDPOiNT OrCHArD220 Orchard Road #02-12 Singapore 238852Tel: 6738 0383

PArKWAY PArADE80 Marine Parade Road #05-02Singapore 449269 Tel: 6348 9188

riVErVALE MALL11 Rivervale Crescent #02-16 Singapore 545082 Tel: 6388 2661

TAMPiNEs JUNCTiON300 Tampines Ave 5 #01-05Singapore 529653 Tel: 6784 6291

TOA PAYOH HDB HUB 500 Toa Payoh Lor 6#B1-31Singapore 310500 Tel: 6352 8738

88

No. Name Total shares

1 national Trades Union Congress 816,800

2 Air-Transport executive Staff Union 10,000

3 Amalgamated Union Of Public Daily Rated Workers 1,000

4 Amalgamated Union Of Public employees 10,000

5 AUPe Multi-purpose Co-operative Ltd 10,000

6 Building Construction & Timber Industries employees’ Union 20,000

7 Dnata Singapore Staff Union 20,000

8 Chemical Industries employees’ Union 41,504

9 DBS Staff Union 10,000

10 exxonMobil Singapore employees’ Union 79,248

11 Food, Drinks & Allied Workers’ Union 110,840

12 Healthcare Services employees’ Union 40,000

13 Housing & Development Board Staff Union 100,000

14 Keppel employees’ Union 10,000

15 Keppel FeLS employees’ Union 30,000

16 Metal Industries Workers’ Union 76,504

17 national Transport Workers’ Union 151,504

18 natsteel employees’ Union 30,000

19 ngee Ann Polytechnic Consumer Co-operative Society Ltd 10,000

20 nTUC FairPrice Co-operative Limited 1,000,000

21 nTUC First Campus Co-operative Ltd 10,000

22 nTUC Income Insurance Co-operative Limited 1,000,000

23 nTUC Media Co-operative Ltd 10,000

24 Port Officers’ Union 10,000

25 Public Utilities Board employees’ Union 61,532

26 Shipbuilding & Marine engineering employees’ Union 81,504

27 Singapore Airlines Staff Union 108,192

28 Singapore Airport Terminal Services Workers’ Union 103,840

29 Singapore Bank employees’ Union 746,800

30 Singapore Bank Officers’ Association 51,792

31 Singapore Chinese Teachers’ Union 2,000

32 Singapore Industrial & Services employees’ Union 65,088

33 Singapore Insurance employees’ Union 10,376

No. Name Total shares

34 Singapore Interpreters’ & Translators’ Union 5,000

35 Singapore Labour Foundation 356,000

36 Singapore Malay Teachers’ Union 10,000

37 Singapore Manual & Mercantile Workers’ Union 140,400

38 Singapore Maritime Officers’ Union 203,584

39 Singapore Mercantile Co-operative Society Ltd 10,000

40 Singapore national Union of Journalists 3,584

41 Singapore Organisation of Seamen 500,000

42 Singapore Port Workers’ Union 30,000

43 Singapore Press Holdings employees’ Union 20,000

44 Singapore Shell employees’ Union 106,144

45 Singapore Shell employees’ Union Co-operative Ltd 10,000

46 Singapore Stevedores’ Union 10,000

47 Singapore Tamil Teachers’ Union 10,000

48 Singapore Teachers’ Union 10,000

49 Singapore Union of Broadcasting employees 10,000

50 Singapore Urban Redevelopment Authority Workers’ Union 2,000

51 The Singapore Government Staff Credit Co-operative Society Ltd 10,000

52 The Singapore Teachers’ Co-operative Society Limited 50,000

53 Union Of Power And Gas employees 82,804

54 Union Of Security employees 107,400

55 Union Of Telecoms employees Of Singapore 100,000

56 United Workers Of electronic & electrical Industries 121,504

57 United Workers Of Petroleum Industry 10,000

institutional share Capital (57 members) 6,756,944

Ordinary share Capital (18,647 members) 10,710,880

Total share Capital as at 31st March 2013 17,467,824

MeMBeRSHIP LISTInG AnD SHAReHOLDInGSAS AT 31 MARCH 2013

89

nOTICe OF AnnUAL GeneRAL MeeTInG

NTUC UNITY HEALTHCARE CO-OPERATIVE LIMITED (Registered in the Republic of Singapore)

Registered Office: 55 Ubi Ave 1, #08-01, Singapore 408935

NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN THAT the 21st Annual General Meeting of NTUC Unity Healthcare Co-operative Limited will be held at NTUC Centre, One Marina Boulevard, Room 801, Level 8, Singapore 018989, on Tuesday 3 September 2013, 4.00pm to transact the following businesses: AGENDA

1. To confirm the Minutes of the 20th Annual General Meeting held on 25 September 2012.

2. To consider and, if approved, to adopt the Director’s Report and the Audited Financial

Statements of the Co-operative for the financial year ended 31 March 2013 together with the Auditors’ Report thereon.

3. To consider and, if approved, to declare a dividend of 3 cents per share for the financial year

ended 31 March 2013. 4. To approve the payment of honoraria to Directors for the year ended 31 March 2013.

5. Election / Appointment of Directors. 6. To re-appoint BDO LLP as the external auditors for the year ending 31 December 2013 and

to authorise the Board of Directors to fix their remuneration. 7. To notify the change of financial year end from March to December with effect from 31

December 2013. The next financial period will be 1 April 2013 – 31 December 2013 and unless otherwise informed, the financial year will be 1 January – 31 December for every succeeding year.

8. To transact such other businesses as may be properly transacted at an Annual General

Meeting. By order of the Board of Directors Ivy Tai Co-operative Secretariat 2 August 2013 Registration for the meeting will commence from 3.30pm. Members are advised to be early and to bring along their NTUC Link Card or Identity Card for verification.

Annual Report 12 / 13

Care for U, Care for Life.

NTUC Unity Healthcare Co-operative Limited

55 Ubi Ave 1 #08-01 Singapore 408935 T 6590 4300 F 6590 4389

NTU

C U

nity H

ealthcare A

nnual Report 12 / 13C

are for U

, Care fo

r Life.

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