PARKWAY HOLDINGS LIMITED Annual Report 2009

Parkway Holdings Limited Annual Report 2009

Building the Future of Healthcare

Vision
To be the global leader in value-based integrated healthcare.
Our sights are set to establish ourselves to be leaders in providing seamless, comprehensive healthcare of the highest quality, based on specific values, as well as to focus on creating and maintaining value for our people, patients, and shareholders.

Mission
To make a difference in people’s lives through excellent patient care.
We know that in our business, when we provide the best quality patient experience, very much everything else takes care of itself. Above all, our people are called to do their best to achieve the highest quality care to those entrusted to us.

We Value
People above all... by treating those we serve and each other with compassion, dignity and respect. Excellence... by acting with integrity and striving for the highest quality care and service. Results... by exceeding the expectations of the people we serve and those we set for ourselves.

Contents
Chairman’s Report Executive Vice Chairman’s Report Board of Directors Senior Management Operations Review Financial Highlights Financial Review Corporate Information Financial Report 1 5 9 13 17 20 21 23 25

CHAIRMAN’S REPORT
Economic uncertainty was a prevalent theme of 2009. The year saw many companies scaling back their investment activity, some struggling to remain viable and others reshaping their business models for tumultuous times. During this period, your Company has remained focused on providing the best possible care for our patients and on consolidating our position as the leading private healthcare services provider in Singapore and the region. Your Company took the opportunity to implement initiatives that have resulted in a leaner and more efficient organization, which has allowed us to emerge from 2009 with a sterling set of financial results and a solid platform for further growth. Consequently, we are pleased to have been able to raise the standards of quality healthcare for our patients while delivering attractive returns to all our shareholders Delivering returns through consolidation and stability We started 2009 with a two-pronged strategy: prudent management of our current operations and cautious consideration of new investment opportunities. While we wanted to expand our network in existing markets and look for fresh areas of growth to tap into, we proceeded conservatively, bearing in mind the global economic recession and the uncertainty of its duration. We focused our efforts on strengthening our operations to enhance Parkway’s value proposition, investing in our brand and taking a fresh look at the quality of patient care at all our healthcare facilities. Achieving the finest clinical outcomes and exceeding globally recognised benchmarks have always been Parkway’s primary objectives. With an international reputation for clinical excellence, the Parkway brand continues to attract potential business partners, leading medical practitioners and patients from all parts of the world. Parkway’s journey to excellence begins with ensuring that we take care of our staff. Following the belt-tightening and cost-cutting measures implemented in 2008, we made it a priority to reinstate salaries of staff as soon as possible. This was achieved in April 2009, on the back of strong performance in the first quarter of the financial year ended 31 December 2009. Throughout the year, we concentrated on our nurses and staff, and we will continue to make our people our priority in 2010 and beyond, and provide them with more training and personal development opportunities. In our quest to improve healthcare standards, we have been successful in attracting new doctors to our Parkway system. To date, we have more than 1,200 accredited doctors in Singapore and we aim to increase this number in the coming years. We have also seen an increase in nursing staff applications to our hospitals, drawn by the prospect to gain from wide-ranging patient care experiences and personal career development opportunities. Concurrently,
Richard Seow, Chairman, Parkway Holdings Limited

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we will provide clinical development services and manage the hospital in accordance with the highest international standards for patient care and safety. Besides merely providing hospital beds and quality healthcare services. Parkway Novena Hospital and Parkway Novena Specialist Centre are strategically located five minutes away from Orchard Road. with equipment to support the most advanced surgical and diagnostic procedures and the support of a specialised and highly trained medical team. The challenge for healthcare service providers in Asia is to meet the needs and demands of their various stakeholders and remain relevant. which will benefit and strengthen the country’s position as a leading medical hub for the region. with leading medical specialists having expressed enthusiasm about setting up their clinics here. The hospital will set new standards for healthcare services when it is completed. and luxurious. Through these various avenues. we train new nurses and other healthcare professionals who can provide quality service that befits Parkway’s reputation. we expect Parkway to play a crucial role in supporting the region’s healthcare needs through our involvement in the region and sharing international best practices. Entering into management contracts is an effective means for Parkway to share its expertise and expand our presence to new markets. The operating environment is further challenged by the rising expectations of the healthcare consumer and an increasing demand for better healthcare quality and service standards. We have plans for the hospital to be at the forefront of medical technology. What Singapore and the region have already begun to face is a shortage of quality healthcare personnel and facilities. At this facility. fully single-bedded patient suites that that allow patients to recover in a tranquil and private environment. Our upcoming Parkway Novena Hospital and Parkway Novena Specialist Centre are key to our efforts to meet the healthcare demands of the future. we are constantly challenging ourselves to look ahead and anticipate the healthcare needs of an increasingly sophisticated consumer. dedicated and personalised service. and conveniently accessible by both private and public transport. Leading the way forward As Singapore’s leading private healthcare services provider.CHAIRMAN’S REPORT through Parkway College. Construction is currently underway and is progressing well. with its world-class medical facilities. Parkway Novena Hospital and Parkway Novena Specialist Centre will be significantly important in attracting medical tourists to Singapore. while providing increasingly effective means of healthcare and growing at financially sustainable rates. We are extremely excited and encouraged by responses to the medical suites in Parkway Novena Specialist Centre so far. we continue to attract new talent into the system. We have already embarked on our next phase of international growth through a consulting and management agreement with the Danat Al Emarat Women and Children’s Hospital in Abu Dhabi. fuelling Parkway’s internal diversity. 2 Parkway Holdings Limited Annual Report 2009 .

All of us who have been involved with the Company. Mr Ranvir Dewan. Dr Tan See Leng. single-hospital organisation into a leading provider of premium integrated healthcare services. We have also been forging new ground in Singapore. as of March 2010. Mr Timothy David Dattels. and Mr Ashish Jaiprakash Shastry. have been blessed to have Dr Lim as Parkway’s Group CEO. past or present. while staying true to our mission to make a difference in people’s lives through excellent patient care. All these would not have been possible without the guidance and value-added hands-on support of the team from TPG. For over twenty years. into his new role at the Company. It would be remiss of me if I did not thank and recognize the invaluable role that all the Directors of the Board have played. our nurses and staff for their unwavering commitment to the work they do in moving Parkway forward. nurses and staff. with the acquisition of the World Link clinic chain to India and Brunei. with our partnership with the Pantai group.5 billion. 3 . A Parkway veteran. every single day of the year. in particular. it has risen to S$3. and we owe him a debt of gratitude and thanks. While he has made the decision to step down as Chief Executive Officer. It is their human touch of dedication and compassion and their skills as top-notch medical professionals that have helped establish Parkway as the leading private healthcare provider in Asia with outstanding clinical outcomes and clinical indicators. Without our amazing doctors. Under TPG’s stewardship over the past five years. Parkway has grown into a truly multinational company. It gives me great pleasure to welcome our incoming CEO. Dr Lim has been at the core of developing Parkway into the success story that it is today. Mr Steven Joseph Schneider. I stand in awe and admiration of the jobs they do every minute of the day. Dr Tan has proven his leadership skills and abilities in both domestic and international assignments. the market capitalisation of the company was about S$1. His knowledge and understanding of the intricacies of the global healthcare industry are unparalleled. and he and his team have grown Parkway from a Singapore-centric. we are delighted that he has agreed to continue adding value to Parkway as Executive Vice Chairman. We would especially like to give recognition and thanks to our Group CEO and Managing Director Dr Lim Cheok Peng for his vision and steadfast leadership of Parkway over the past two decades. to China. Parkway would be an empty shell of sophisticated medical equipment and facilities. with 16 hospitals and 60 clinics throughout Asia. Of particular relevance to shareholders is the growth in market capitalisation over the time that TPG has been an investor in the company: when TPG first bought a stake in Parkway in 2005.CHAIRMAN’S REPORT Special thanks The Board and I would like to thank the Parkway management team. ranging from Malaysia. We have full confidence in his abilities to lead Parkway to new heights. with the development of our Novena project. the Directors from TPG Capital.4 billion. where he will assist the Company’s leadership on strategic and international initiatives.

may I offer my humble thanks for your loyalty and continued support of Parkway. I am grateful for your belief in the Company’s long term growth prospects. 4 Parkway Holdings Limited Annual Report 2009 . opportunities and changes to Parkway. On a personal note. I would like to thank shareholders for supporting the directors and me during my tenure on the Board. As in years past. Be assured that Parkway will continue to focus on making a difference in people’s lives through excellent patient care and if we remain true in our focus. 2010 will no doubt bring new challenges. Thank you for allowing me the privilege and honour to serve as your Chairman.CHAIRMAN’S REPORT To all our shareholders. the returns to our shareholders will remain attractive. I have confidence that your Company will rise to the occasion and make that positive difference in the lives of all our stakeholders.

2 million. dividend payments will be either on a half-yearly or annual basis. Depreciation. our in-house annual publication which measures the clinical quality initiatives and clinical performance of our hospitals in Singapore. compared to S$217. the Board has resumed dividend payments by declaring a final tax exempt one-tier dividend of 1. as well as the strong performance of our Pantai group of hospitals in Malaysia. equipment and central purchasing.15 cents per ordinary share. we entered 2009 cautiously.EXECUTIVE VICE CHAIRMAN’S REPORT The year 2009 was a watershed year for Parkway Holdings Limited. as we enjoyed healthy growth each quarter throughout our financial year 2009 (FY 2009) and I am pleased to report that we are now poised to strengthen our position as a global leader in value-based integrated healthcare. Taxes. It is our belief that clinical excellence and value-creation for our patients are best achieved through a rigorous system of measurement and making improvements using this information. a 29% increase from S$91. excluding exceptional items was S$117. Going forward. Parkway Holdings Limited 5 .8 million in FY 2008. Revenue from our International Operations grew by 20% to reach S$337.9 million in FY 2009. We remain the only private healthcare player in Singapore to publish such data. Based on internationally recognised clinical quality indicators. This paid off. taking a proactive stance towards cost containment and implementing measures to optimise synergies and increase productivity in all areas including manpower.1 million in FY 2009. This was a result of the continued demand at our Apollo Gleneagles Hospital in Kolkata.1 million. Strengthening our position at home Our hospitals in Singapore continued to perform well over the course of 2009. Following these positive results.5 million in FY 2008. subject to the performance of the Group.2 million. Given the economic turmoil in 2008.0 million. Group President & Chief Executive Officer. During the year. Healthy growth throughout FY 2009 Parkway’s revenue in FY 2009 grew 7% to reach S$979. This was driven primarily by the strong performance of our healthcare services in Singapore. Parkway hospitals did extremely well. a slight improvement over FY 2008’s S$633. Amortisation and REIT rental (EBITDAR) rose by 9% in FY 2009 to reach S$237. Managing Director. Earnings Before Interest. reflecting our commitment to quality clinical outcomes and patient safety. Dr Lim Cheok Peng. compared to S$914. bringing total revenue from our Singapore Operations to S$642. Profit After Tax and Minority Interests (PATMI). Executive Vice Chairman. Our healthcare division in Singapore registered a healthy 12% growth in revenue in FY 2009. we released the second issue of Reflections.7 million in FY 2008. and our international hospitals. This was to ensure that Parkway maintained its strong platform for long-term growth beyond 2009.

Parkway East Hospital. we recognise the importance of nurses in the healthcare arena. Parkway also strives to provide patients with the best medical facilities possible. At Parkway East Hospital. At Parkway. holding true to our commitment of ensuring that we maintain the highest level of international healthcare standards. underwent the triennial audit by Joint Commission International (JCI) and I am pleased to share that both hospitals continue to remain JCI-accredited. Parkway also launched its “Thinking Nurses.EXECUTIVE VICE CHAIRMAN’S REPORT This year. We also reached out to the community and worked with various grassroots clubs throughout Singapore to offer 1. Parkway is well aware of the crucial role that nurses play in our organisation and through this initiative we celebrate the achievements of our nurses in their quest to provide quality care and make a difference in their patients’ lives. our patients come first and we constantly innovate to cater to their needs. we launched 40 fixed-fee surgical packages to help patients lower their healthcare costs during the recessionary period. The threat of the H1N1 virus was also something that kept us busy throughout 2009. Parkway Shenton was involved in managing the threat of a second wave of the virus through the provision of the H1N1 vaccine to patients through its wide network of clinics. At Parkway. but Parkway Shenton was also awarded the contract from the Ministry of Health to conduct temperature screenings at all of Singapore’s land. In November 2009. and in 2009. At Mount Elizabeth Hospital. 6 Parkway Holdings Limited Annual Report 2009 . air and sea entry points. over 4. With Heart” campaign. during the year. In early 2009. and expansion work was carried out to allow for new specialist clinics. all three of our hospitals in Singapore underwent upgrading works. the entire lobby area was renovated. two of our hospitals. Neonatal Intensive Care Units and laboratories at Mount Elizabeth Hospital and the Ward 5 East maternity ward and public access areas at Gleneagles Hospital. We refurbished the High Dependency Units. their hard work has paid off and we have secured re-accreditation. new retail spaces and a new VIP suite. we also made more medical services available by establishing a liver transplant programme. We not only stepped up infection control measures at all our hospitals. Mount Elizabeth Hospital and Gleneagles Hospital. formerly known as East Shore Hospital. There was a strong demand for these packages and by the end of the year. will undergo a similar review of its JCI accreditation in 2010. major work was done to give it the look and feel of a boutique establishment.000 of the packages had been sold. Congratulations and thanks are in order for the staff and doctors at the hospitals who took part in the audit. which is in addition to the liver transplant programme we already have at Gleneagles Hospital.000 free doses of the vaccine to the needy.

This is testament of the quality education offered at Parkway College. and the new oncology centre at the hospital is expected to begin operations in the first quarter of 2010. this demand is not only from medical tourists in the region. We have also received strong expressions of interest from many specialists about the medical suites at the Novena development’s specialist centre. Through the year. There is a lot of demand for private healthcare in Malaysia. Parkway College made a significant achievement in 2009. and is providing training to foreign healthcare administrators and officials. Perak and Medini. as it became the only private institution in Singapore to achieve full accreditation from the Singapore Nursing Board for its Diploma in Nursing. This is provided by our very own education arm at Parkway College. The project is progressing well and we are on track for launch in 2012. In India. such as in Manjung. We continue to provide opportunities for life-long learning for our nurses. The College has also extended its training capabilities beyond local shores. due to the increasing demand for quality healthcare from both Singaporeans and foreigners in the coming years. 7 . Kolkata. there is a strong demand from the local population who are seeking premier healthcare services and do not want to travel long distances to main cities in Malaysia where most private hospitals are currently located. Our expansion into Malaysia is based on a hub and spoke model where we plan to set up community hospitals in smaller towns across Malaysia. To that end. and will feature the high standards of clinical care and service that Parkway is renowned for. We believe that the Novena hospital is key to Parkway’s growth. but more importantly. allowing them to pick up skills and knowledge needed for them to remain effective in the workplace. which are experiencing high occupancy levels. so as to provide patients and their visitors with even better experiences. Perhaps our most eagerly anticipated project is the development of our new hospital in Novena. we are looking at new hospital developments throughout the Peninsula. Parkway College is currently collaborating with Astana University in Kazakhstan to offer a healthcare administrative programme. Progress on our upcoming ParkwayHealth Khubchandani Hospital in Mumbai continues to be made. we continue to enjoy a high level of growth at Apollo Gleneagles Hospital. This demand for healthcare can be seen in our existing Malaysian hospitals. construction is expected to begin in April 2010. we reviewed our presence in Malaysia and are now aggressively expanding our network there. This 333-bed hospital will be a pinnacle in healthcare in Singapore and throughout the world. more than 100 officials from Kazakhstan received training at the College. Expansion and enhancement of the services and facilities at many of the existing hospitals were also carried out in 2009. Johor. Expanding our regional footprint During the year.EXECUTIVE VICE CHAIRMAN’S REPORT Training and continual development of our people is an ongoing emphasis at Parkway. It also conducted training for college students from South Korea and healthcare officials from China.

Achieving growth Looking ahead. Parkway has built a solid foundation through this challenging year and we are now on track to ride the next wave of growth. the growth potential for the Asia-Pacific healthcare industry remains bright. we continue to enjoy a strong demand for our services from patients in this region. in the Middle East. We have the distinction of being the only healthcare provider with a clinic on-site to attend to the delegates throughout the period of the Expo. We have also begun to export our business to this region as well. Construction works are scheduled to begin in Q1 of 2010. We anticipate that with Parkway’s strong brand equity. and other professional allergy medical services to adults and children. as we have been prudent in our cost management and are now in a stronger position to tap on these opportunities. staff. Your commitment and dedication to the Group and our patients have helped us raise the bar with regards to healthcare in Singapore and the region. we also expanded the range of services available at our current Shanghai clinics. Finally. we opened an Allergy Centre. We will continue to look to secure more of such management contracts in the Middle East and other regions. I extend my deepest gratitude to all management.EXECUTIVE VICE CHAIRMAN’S REPORT We continue to expand our presence in China. I am also pleased to share that Parkway will be participating in the upcoming Shanghai World Expo. having secured a management contract with the upcoming Danat Al Emarat Women and Children’s Hospital in Abu Dhabi. Parkway’s hospitals continue to be the premier choice for quality care and excellent clinical outcomes. nurses and doctors at Parkway. I would like to take this opportunity to thank our shareholders and business partners for the support during the year. In 2009. which is a significant move for Parkway as this centre is the only comprehensive allergy service in Shanghai providing allergy investigations. Parkway is well positioned to leverage on the growth opportunities ahead. 8 Parkway Holdings Limited Annual Report 2009 . having signed a deal with Chinese partners to manage more medical centres in Shanghai. However. Many continue to travel to Singapore to seek treatment at our hospitals here. For example. we will not rest on our laurels and will remain committed to setting new benchmarks in the area of clinical performance and patient safety and service. testing. treatment. we will be able to successfully export our healthcare services and decades of knowledge overseas. in order to diversify our revenue streams. Finally.

Managing Director. Dr Tan has more than 20 years of experience in the healthcare industry. Alain Ahkong Chuen Fah Non-executive Director Alain Ahkong is the Chairman of the Audit & Risk Management Committee of Parkway Holdings Limited. Alain also holds directorships in several companies. Chairman of Republic Polytechnic. Between 1992 and 2002. Dr Lim Cheok Peng Executive Vice Chairman. and a member of the Singapore Sports Council. Dr Tan See Leng leads all operational activities within the Parkway Group. Dr Tan first joined Parkway in September 2004 as Chief Operating Officer of Mount Elizabeth Hospital. Group President & Chief Executive Officer. Group President & CEO Dr Lim Cheok Peng was appointed as Executive Vice Chairman of Parkway Holdings in April 2009 and is also the Managing Director. He was subsequently appointed Senior Vice President. Cheok Peng sits on the Executive Committee and has been steering the Group’s healthcare efforts since 1987.BOARD OF DIRECTORS Richard Seow Yung Liang Chairman Richard Seow has been the Chairman of the Board of Parkway Holdings Limited and the Executive Committee since July 2005. he founded the Healthway Medical Group. Prior to joining Parkway. Goldman Sachs and JP Morgan. Currently a Director of Pioneer Management Services Pte Ltd. He is a cardiologist by profession. a position he held till February 2008. he was previously with Citigroup. A former investment banker with over 16 years of industry experience. 9 . He graduated with a Bachelor of Medicine and Bachelor of Surgery (MBBS) and a Master of Medicine (Family Medicine) from the National University of Singapore. including listed company. Singapore. Hup Soon Global Corporation Limited. Dr Tan See Leng Chief Executive Officer (Designate) As Chief Executive Officer (Designate). International Operations in November 2006 and was later seconded to Pantai Holdings Berhad as Chief Executive Officer of the Hospitals Division. Dr Tan served as Medical Director and Consultant to various government and private medical groups. He also has a Master of Business Administration from the University of Chicago GSB. Richard is the Chairman of the Anglo-Chinese School Board of Governors.

Timothy serves as a Director of SingTao News Corporation Limited.BOARD OF DIRECTORS Chang See Hiang Non-executive Director Chang See Hiang sits on various committees of Parkway Holdings Limited. He is a trustee of the Asian Art Museum of San Francisco and also serves on the Dean’s Advisory Board of the Rothman School of Business at the University of Toronto. Prior to joining TPG. Shriram Transport Finance Company Limited (India) and PT Bank Tabungan Pensiunan Nasional Tbk (Indonesia). as well as founder and member of the Asia Pacific Council of The Nature Conservancy. Ranvir is a Fellow of the Institute of Chartered Accountants in England & Wales and a member of the Canadian Institute of Chartered Accountants. 10 Parkway Holdings Limited Annual Report 2009 . he is the Senior Partner of his own law firm. and an MBA from Harvard Business School. He is also a Director of Jardine Cycle & Carriage Limited. Timothy David Dattels Non-executive Director Timothy Dattels is a Partner of TPG Capital. he served on the firm’s Management Committee in Asia. Ranvir Dewan Non-executive Director Ranvir Dewan joined TPG Capital in July 2006 and is based in Singapore. He holds a BA (Honors) from The University of Western Ontario. M/s Chang See Hiang and Partners. Prior to that. He serves on the Boards of Parkway Holdings Limited (Singapore). Korea. MCL Land Limited. From April 2000 to July 2006 he was Executive Vice President and Chief Financial Officer of Standard Chartered First Bank (formerly Korea First Bank) in Seoul. a Hong Kong based media company and Shangri-La Asia. In addition. 1984. An Advocate and Solicitor of the Supreme Court of Singapore. Asia’s leading hotel brand. Timothy served as Managing Director of Goldman Sachs. Ranvir spent 13 years with Citibank and held various senior positions in its international businesses. He is currently the Head of Financial Institutions Group Operations. Yeo Hiap Seng Limited and STT Communications Ltd. LP based in San Francisco with a focus on Asian investing. He was elected Partner in 1996 and was head of Investment Banking for all Asian countries outside of Japan from 1996 – 2000 where he advised several of Asia’s leading entrepreneurs and governments. 1980.

Fellow Member of Malaysian Institute of Directors. London and Singapore offices. Ganen is a barrister-at-law (Lincoln’s Inn. he was at UBS Investment Bank serving in its Hong Kong. primarily responsible for overseeing new investments and divestments in targeted sectors and geographies. He is a Fellow Member of the Institute of Chartered Accountants.BOARD OF DIRECTORS Dato’ Mohammed Azlan b. listed on Bursa Malaysia Securities Berhad including D&O Ventures Berhad and SILK Holdings Berhad. Among others. and hotel/resort investments. Hashim Non-executive Director Azlan is currently Chairman of Aseana Properties Limited. a Company listed on the Hong Kong Stock Exchange. 11 . Group Managing Director. He also serves on the Board of Shangri-La Asia Limited. Member of The Malaysian Institute of Accountants. Bursa Malaysia Berhad (formerly known as Kuala Lumpur Stock Exchange) Group. Westcomb Financial Group Limited and Asiasons Capital Limited (formerly known as Integra2000 Ltd). he has served as Chief Executive. Malaysia. Labuan Offshore Financial Services Authority and member of Employees Provident Fund Investment Panel. Australia. Azlan also serves as Chairman of several public listed entities. Ho Kian Guan Non-executive Director Ho Kian Guan has been a director of Parkway Holdings since 1985. Bumiputra Merchant Bankers Berhad. including financial services and investments. Azlan holds a Bachelor of Economics from Monash University. He is also a director of Scomi Group Bhd. Prior to joining Khazanah. Australia. In Malaysia. Amanah Capital Malaysia Berhad and Executive Chairman. Melbourne and qualified as a Member of the Institute of Chartered Accountants. Ganen Sarvananthan Non-executive Director Ganen Sarvananthan is Executive Director of Investments at Khazanah Nasional Berhad. London). Member of The Institute of Internal Auditors. real estate development. Kian Guan is the Executive Chairman of Keck Seng Group of Companies which include the publicly listed Keck Seng (Malaysia) Berhad and Keck Seng Investments (Hong Kong) Limited. Fellow Member of the Institute of Chartered Secretaries and Administrators and Hon. Azlan is a board member of various government and non-government related organisations including Khazanah Nasional Berhad. The principal activities of the Keck Seng Group are palm oil cultivation/manufacturing. He has extensive experience working in the corporate sector.

Ashish Jaiprakash Shastry Non-executive Director Ashish J.BOARD OF DIRECTORS Steven Joseph Schneider Non-executive Director Steven Schneider is a Partner & Managing Director of TPG Capital. Previously he held Non-executive Directorships at Hanaro Telecom (Korea). Shastry is a Managing Director and Head of Southeast Asia at TPG Capital. Myer Department Store (Australia) and NIS Financial Services (Japan). Since joining TPG Capital in 1998. LP and responsible for the Operating Group within TPG-Asia. Steven was the President & CEO of GE Asia-Pacific and Chairman & CEO of GE China where he previously spent 20 years. Australia and Southeast Asia. Steven is currently the Co-Chairman and Non-executive Director of UTAC. Mohd Shariff (alternate director to Ganen Sarvananthan) 12 Parkway Holdings Limited Annual Report 2009 . He was a Company Officer and a member of the Corporate Executive Committee of GE. Prior to joining TPG in 2005. He serves as a nonexecutive director on the Boards of United Test Assembly Center Ltd and PT Bank Tabungan Pensiunan Nasional Tbk. He is a graduate of Grove City College with a degree in Business and currently resides in Hong Kong. he has been based in Singapore and Hong Kong. focusing on TPG Capital’s investment activities in India. Ho Kian Hock (alternate director to Ho Kian Guan) Tanguy Vincent Serra (alternate director to Timothy David Dattels) Ahmad Shahizam b.

He was subsequently appointed Senior Vice President. FAMS (Cardiology). He graduated with a Bachelor of Medicine and Bachelor of Surgery (MBBS) and a Master of Medicine (Family Medicine) from the National University of Singapore. He has been steering the Group’s healthcare efforts since 1987. 63. International Operations in November 2006 and was later seconded to Pantai Holdings Berhad as Chief Executive Officer of the Hospitals Division. Between 1992 and 2002. Int. he was also the Chief Financial Officer of Advanced Interconnect Technologies (AIT). 53. See Haw was the Vice President of IT and Supply Chain of Unisem (M) Bhd.SENIOR MANAGEMENT Dr Lim Cheok Peng Executive Vice Chairman Dr Lim Cheok Peng. is the Executive Vice Chairman and he sits on the Executive Committee. FRCP (Edinburgh). overseeing the IT and supply chain functions for all of Unisem’s worldwide operations. Med (Singapore). Dr Tan See Leng Chief Executive Officer (Designate) As Chief Executive Officer (Designate). he founded the Healthway Medical Group. 13 . M. Before joining AIT. See Haw held key financial positions for major corporations such as Asia Pacific Breweries Ltd (Director of Group Finance) and Pepsi-Cola International (Asia Division Financial Controller). Concurrently. He is a cardiologist by profession and holds the following qualifications: MBBS (Singapore). is the Group Chief Financial Officer. Prior to joining Parkway. Prior to joining Parkway. Dr Tan served as Medical Director and Consultant to various government and private medical groups. a position he held till February 2008. a position which he held since 1999. See Haw graduated with a Bachelor Degree in Accountancy from the former Singapore University in 1980. He heads the Group’s Finance Division. MRCP (UK).Med. FRCP (Glasgow). He is also a Fellow of the Institute of Certified Public Accountants of Singapore. Tan See Haw Group Chief Financial Officer Tan See Haw. Dr Tan See Leng leads all operational activities within the Parkway Group. Dr Tan has more than 20 years of experience in the healthcare industry. Dr Tan first joined Parkway in September 2004 as Chief Operating Officer of Mount Elizabeth Hospital. He also has a Master of Business Administration from the University of Chicago GSB.

June is responsible for legal and corporate secretarial matters as well as risk management for Parkway and its group of companies. Ann graduated with a Bachelor degree in Government & Public Administration from the former Nanyang University and holds a Master of Science in Asia Pacific Human Resource Management from the National University of Singapore. is the Senior Vice President. Senior Vice President.SENIOR MANAGEMENT June Tay Company Secretary. Finance. Molly started with Mount Elizabeth Hospital in August 1993 and was the General Manager. She was appointed as Chief Financial Officer on 1 April 2003. Prior to joining Parkway. She was Regional HR Director with IPACS/NCS from 2000 to 2006. Molly graduated with a Bachelor in Accountancy from the National University of Singapore. Molly Foo Senior Vice President. Ann was leading the human resource function for Allen & Gledhill and Motorola Electronics (Tianjin). is the Company Secretary and Senior Vice President. June graduated with a Bachelor of Laws (Honours) from the University of Singapore. People Resource Ann Yong. Finance Molly Foo. 56. Legal & Risk June Tay. Ann Yong Senior Vice President. People Resource. talent management. 14 Parkway Holdings Limited Annual Report 2009 . Legal & Risk. Finance. Molly was the Financial Controller for Mount Alvernia Hospital from 1990 to 1993. Ann is responsible for the Group’s human resource. 55. June joined Parkway Properties Pte Ltd in May 1981 as its Corporate Legal Officer and has been the Company Secretary of Parkway since 1985. Between the period 1993-1999. Ann was Global HR Director with Parlex Electronics. is the Senior Vice President. a USA based electronic firm in Shanghai. 50. Prior to this. compensation & rewards management and employee engagement functions.

IT/Chief Information Officer. Changi General Hospital. 43. Prior to joining Parkway. development and strategic planning matters of Parkway. Prior to joining Parkway. Transit Link. is the Senior Vice President. Raju has an Engineering degree in Electronics & Communications (Specialising in Biomedical Instrumentation) from India. is the Senior Vice President. from 2008 to 2009. he has held a number of Executive portfolios in Parkway Shenton from 1999 to 2006. Fong Choon Khin Senior Vice President. Raju has over 19 years of experience in healthcare and hospital management in India and in Singapore. Raju serves as a member of the Board of Directors for Parkway’s Joint Ventures in India and is a key member of the Group’s International Operations management team providing services for setting up and managing new healthcare facilities across South Asia and Middle-east regions.SENIOR MANAGEMENT Dr Goh Jin Hian Senior Vice President. 52. UK. of which 7 years are in the healthcare field. Choon Khin has more than 28 years working experience in the IT industry. Innovation and Strategy and is responsible for the business growth. Growth. 15 . Choon Khin was with the SingHealth Group. 41. Raju had worked with both government and private healthcare facilities in Singapore. Computer Systems Advisers Pte Ltd in Singapore. Prior to that. Dr Goh was with the Ministry of Health. Dr Goh has been with Parkway since 1997. in various senior management positions. During this time. He was the Chief Executive Officer of Gleneagles Hospital from 2006 to 2007 and held the position of Division President of Singapore Operations. he had worked for corporations which include Media Corporation of Singapore. South Asia & Middle East Operations. Innovation and Strategy Dr Goh Jin Hian. Growth. Choon Khin graduated with a degree in Computer Science from the National University of Singapore in 1981 and obtained his Master degree in Health Service Management from The Flinders University of South Australia in 2005. Parkway. such as Tan Tock Seng Hospital. Raju Narayan Division President. IT/Chief Information Officer Fong Choon Khin. is the Division President. He has also completed the Advanced Management Programme at Wharton. Before joining Parkway. South Asia & Middle East Operations Raju Narayan. He graduated with an MBBS from the National University of Singapore and holds an MBA from the University of Hull. and Raffles Hospital.

Dr Staples was the Medical Director. is the Division President. Prior to joining Parkway. Dr Staples graduated with a BA degree in Philosophy from Wesleyan University in 1984 and obtained his MBA from San Francisco State University in 1989. Consulting and Corporate Services for International SOS.SENIOR MANAGEMENT Dr Jeffrey H Staples Division President. and MD degree from Columbia University in 1993. North Asia Operations. Dr Staples has 15 years’ working experience in the healthcare industry. Dr Staples plays a leadership role in directing. planning. of which he spent 8 years as a Primary Care physician and Clinical Consultant in the United States and Japan. North Asia Operations Dr Jeffrey H Staples. 16 Parkway Holdings Limited Annual Report 2009 . 48. service excellence and financial performance. implementing and evaluating all operations within North Asia to ensure high quality clinical outcomes.

At Parkway East Hospital. The High Dependency Units (HDUs) and Neonatal Intensive Care Units (NICUs) at Mount Elizabeth Hospital and the Ward 5 East maternity ward at Gleneagles Hospital were refurbished. In the nationwide study which covered eight key economic sectors. a validation of the Group’s commitment to deliver excellent clinical outcomes and patient care. All of the upgrading works at the hospitals were carried out in the belief that a progressive and well-maintained hospital environment goes a long way to ensure patients’ total satisfaction. Mount Elizabeth Hospital is the first hospital in Asia to utilise this system. hospital leadership and information management. a new cafeteria and more retail options to the facilities available at the hospital.OPERATIONS REVIEW 2009 was a year full of challenges for Parkway Holdings Limited. This is testament to the effectiveness of patient safety and infection control measures implemented at the hospitals. and progressed well through the year with key milestones achieved. adding a new VIP suite. as the global economy experienced a slow recovery from the crisis the year before. All three Parkway hospitals in Singapore are JCI-accredited. The second edition of Reflections. Meanwhile. Parkway’s inhouse publication measuring the clinical quality initiatives and clinical performance of the Group’s Singapore hospitals.1 on the index. the hospitals had scored well in areas of patient assessment. Parkway continued to make good progress in improving its clinical outcomes and performance at its Singapore hospitals. The hospitals achieved a perfect 5 score for 2009 for Parkway’s Clinical Quality Scorecard consisting of 8 globally recognised clinical indicators. Parkway conducted upgrading works to ensure that the hospitals are well-maintained and equipped with the latest medical equipment and facilities to cater to patients’ needs. Parkway scored 72. With better clinical outcomes and improved service delivery. both locally and globally. was also published in 2009. infection control and prevention. Mount Elizabeth Hospital and Gleneagles Hospital were re-accredited by Joint Commission International (JCI). formerly known as East Shore Hospital. This reflects the Group’s commitment to quality service and patient care. medication management and use. the CSISG is a landmark measure of customer satisfaction cutting across sectors and sub-sectors in the services industry of Singapore that is jointly developed by the Institute of Excellence at SMU (ISES) and the Singapore Workforce Development Agency (WDA). quality improvement and patient safety. Following the completion of a stringent audit. Parkway started the year cautiously. major upgrading works were carried out. Parkway’s three hospitals in Singapore also scored well on the Customer Satisfaction Index of Singapore (CSISG) in 2009. Based on the survey by JCI. First launched in April 2008. In Singapore At its three hospitals in Singapore. which was higher than the national average of 68. new clinics. with the upgraded HDUs employing a new and technologically advanced patient monitoring system. an international organisation that seeks to improve the safety of patient care through the provision of accreditation and certification standards.9 for the healthcare sector. Parkway remains the only private healthcare provider in Singapore to publish such data. 17 .

Parkway also benefited through the awarding of a contract by the Ministry of Health to Parkway Shenton to conduct temperature screenings at all entry points into Singapore. Through this campaign. 18 Parkway Holdings Limited Annual Report 2009 . who provide top-notch care and service to patients. In the latter part of the year. Three Parkway nurses were also awarded Merit Awards by the Ministry of Health based on their exemplary contributions to the nursing profession. with Parkway Shenton opening 2 new clinics at Changi Business Park and Novena Medical Centre. Parkway College achieved a significant milestone in 2009 where it became the only private institution in Singapore to achieve full accreditation from the Singapore Nursing Board for its Diploma in Nursing course. Training and continual learning remained a key focus of the Group in 2009 as Parkway continued to provide opportunities for life-long learning for employees to acquire new skills and knowledge to remain effective in the workplace. while in December. Parkway Shenton had the opportunity to offer the H1N1 vaccinations to the public. Moving forward. Parkway College also provided training to college students from South Korea. Parkway College made another significant achievement by extending its training capabilities beyond Singapore. In addition to the H1N1 screening contract from the Ministry of Health. Parkway immediately stepped up precautionary measures at all its hospitals and medical centres in preparation for an imminent outbreak. Parkway continued its strategy to further streamline its operations through the divestment of various non-core businesses or assets.000 worth of grocery vouchers to the nurses at the three hospitals. Parkway completed the disposal of its entire 60% shareholding in dental practice Ko. With Heart” campaign to recognise the crucial role of nurses and their contribution to the organisation. Parkway Shenton also secured new corporate clients and renewed several major corporate accounts. Parkway recognises that its nurses. the Influenza A (H1N1) virus sent the world into a cautious mode. and also donated 1. which was organised to tie in with Nursing Week. In October. As the premier private healthcare service provider in the region. China. The virus turned out to be milder than expected and there was no major impact on Singapore and the region. Parkway College. Parkway’s readiness to handle a crisis had been put to good test. The Group also divested its 20% shareholding in the nursing education provider Gleneagles Academy of Nursing (M) Sdn Bhd. Nonetheless. Parkway also divested its 21. colonoscopies and cataract extractions. are one of the key differentiating factors that set the Group apart. The launch of these fixed-fee surgical packages was part of the Group’s effort and commitment to continuously offer better value to patients and meet their changing needs through innovation. the Group will focus its business in nursing education through Parkway College in Singapore and Pantai Education in Malaysia. the Group launched the “Thinking Nurses. Last year. Djeng Gleneagles Pte Ltd.000 packages taken up by the end of 2009.OPERATIONS REVIEW In early 2009. Parkway was also able to expand its non-hospital healthcare operations in 2009. In April 2009. healthcare management training was conducted for healthcare executives and leaders from Kunming. This is a strong testament of the high quality of the nursing education offered by Parkway College.000 doses of the vaccine to charity. the Group distributed more than $60. This is provided through Parkway’s own education arm. It is also currently collaborating with Astana University in Kazakhstan to jointly develop and offer a healthcare administrative programme. Parkway launched 40 fixed-fee packages for common procedures such as gastroscopies.88% shareholding in Auric Pacific Group. due to concerns over a potential pandemic that could derail the economic recovery. more than 100 officials from Kazakhstan received training in healthcare management and healthcare accreditation at Parkway College. in order to help patients lower their healthcare costs. The demand for these packages was strong with more than 4. In July 2009. In 2009.

Notably. and its business may be impacted as a result. In Singapore. Expected to be completed by 2012. Penang and its network of hospitals under the Pantai Group. A new oncology centre has been commissioned at the hospital and it is expected to be operational by the end of the first quarter of 2010. reinforcing Parkway’s reputation for delivering world-class medical services and patient care. testing. it will continue to upgrade existing facilities and service offerings so as to secure its footing as a leading provider of premier healthcare services. The Group will continue to assess suitable opportunities to achieve further growth in its existing and new markets through joint ventures. Parkway. and India. which provides allergy investigations. through Pantai Holdings. Parkway affirmed its commitment to patient care and safety through achieving JCI accreditation for Pantai Hospital Kuala Lumpur. China. In Mumbai. Gleneagles Medical Centre. In India. the Group is cognizant that the global economic recovery is still fragile. the demand for quality healthcare has never been stronger. signed an MOU with YNH Property Bhd to build a new hospital in Manjung. Parkway is also looking to further grow its presence in the Chinese market. Perak. and new acquisitions. the design works for the Danat Al Emarat Women & Children’s Hospital in Abu Dhabi progressed well and hospital construction work is expected to begin in the second quarter of 2010. In the Middle East. Parkway further expanded its presence overseas in 2009. construction of the ParkwayHealth Khubchandani Hospital is scheduled to begin in April 2010. Parkway expanded the range of services and facilities at its clinics in Shanghai. Parkway’s Apollo Gleneagles Hospital in Kolkata continued to see positive growth. its contribution from overseas is likely to grow bigger as it actively seeks opportunities to enlarge its regional footprint in Malaysia. Parkway also completed the acquisition of Pantai Hospital Sungai Petani and Pantai Hospital Batu Pahat. Johor. While the Group continues to stay focused in Singapore. The Group has already received strong expressions of interest in the suites at the Specialist Centre from physicians. the development of the highly anticipated Parkway Novena Hospital and Parkway Novena Specialist Centre is progressing well according to schedule.OPERATIONS REVIEW In the region Besides achieving key milestones in Singapore. Upgrading works were also done at Gleneagles Medical Centre. The hospital will play a significant role in showcasing our capability to manage a world-class integrated hospital in the Middle East. It will also continue to explore and implement necessary measures to contain costs and improve efficiency and quality. Parkway. Penang and Pantai Hospital Kuala Lumpur to provide patients with even better standards of care. having signed a cooperation agreement with a Chinese partner to establish more medical centres in Shanghai. through Gleneagles Hospital Kuala Lumpur. collaborations. the development will feature comprehensive facilities that include more than 200 medical suites. In Malaysia. During the year. 19 . This development will position Parkway at the forefront of medical innovation and clinical outcomes. Thus. In China. The Group also has plans for a new hospital project in Medini. To further expand its reach in Malaysia. it opened a new Allergy Centre. over 300 patient beds and several outpatient specialty centres. treatment. continued to see healthy growth from both the local population and foreign patients. Moving Forward Operationally. and other professional allergy medical services to adults and children and is the only comprehensive allergy service centre in Shanghai.

373 1. amortisation and REIT Rental (EBITDAR)~ % of revenue Earnings before interest expense.09 0.2% 2.9 9. Includes special dividend of 13.049 4.08 0.950 681.57 0.017 24.5 0.537.344.413.48 0.599 13.207 631.5 2. ~ + * Earnings before exceptional items.0 0.032 1.997 43.8 3. as well as changes in the presentation of financial statements for the respective financial year under review.10 0.105 0.841 299. 20 Parkway Holdings Limited Annual Report 2009 .438 87.831 229.012 1. exchange differences and share of results of associates.0% 38.403 354.616 237.740 563.4% 129.7 3.2 7.9 27.686 22.231. tax and exceptional items (EBIT) % of revenue Earnings after tax and minority interest but before exceptional items % of revenue Profit attributable to equity holders of the Company % of revenue Balance Sheet Total Assets Net Borrowings Total Shareholders’ Funds Profitability Ratios (%) Return on Shareholders’ Funds Before exceptional items After exceptional items Return on Assets Before exceptional items After exceptional items Gearing Ratios Net debt equity ratio Per share data Basic earnings per share ($) Before exceptional items After exceptional items Gross dividend ($)+* Net asset value backing per share ($) Net tangible assets backing per share ($) 2008 $’000 2007 $’000 2006 $’000 2005 $’000 672.29 1.7% 55.2% 130.497 646.446 584.34 0.3 0.4 4.3% 1.102 14.792 18.876 12.38 6.0% 118.7 4.450 268.3% 61.338 144.045 1. tax.570 435.969 11.1% 194. adoption of new and/or revised accounting standards.299 8.366 21.9% 189.058 3.4 49.6 0.401 25.042 367.07 15.747 7.191 605.1 1.722 274.3% 101.19 0. Gross dividend comprises interim dividend declared during the year and final dividend proposed by directors in respect of that financial year under review.4% 217.05 0.8% 119.8 0.926 12.7 3.666 10.45 cents and 11.FINANCIAL HIGHLIGHTS 2009 $’000 Profit and Loss Account Revenue Hospital Healthcare Non-healthcare Earnings before interest expenses.81 9.379 4.3 12.4% 1.7 7.6 4.1% 117.25 cents per share less tax paid in 2007 and 2006 respectively.93 0.875 13.09 0.57 0.959 34.538 2.161 63.200 91.102.1% 3.004 416.223 0.245 0.102.590 14.0% 1.680 7.283 6.35 0.48 14.7 5.11 0.472 869.09 0.75 0.682 595.844 979.633 66.802 914.04 0.9% 142.0% 297. depreciation.522 6.10 0.987.525 23.8% 129.225 10.806 11.09 0.823 635.55 0.32 Note: For changes in accounting policies. only the comparative figures for the previous year were restated to conform with the requirements arising from the said changes or adoption.496 867.

8 million achieved in FY 2008. the Group’s EBITDAR increased by 9% to S$237.5 million in FY 2008.6 million in FY 2008. EBITDAR for this segment dropped by 7% to S$112. In line with strong revenue performance. accounting for 66% of total revenue for the year. Total revenue for the Group reached S$979. with 12% rise in revenue and 45% growth in EBITDAR in FY 2009. Revenue from Singapore Hospitals segment. Parkway’s Singapore operations remained stable in FY 2009. excluding exceptional items also grew by 29% to S$117. Net profit after minority interests. Similarly. Parkway Holdings Limited managed to conclude the year 2009 with better performance as compared to a year ago.2 million on better performance in Singapore Healthcare segment and International Hospital operations • Full year PATMI excluding exceptional items jumped 29% to S$117.7 million in FY 2008.FINANCIAL REVIEW Highlights: • Group revenue increased by 7% to S$979. dropped by 2%.2 million in FY 2008. comprising Mount Elizabeth Hospital. This was mainly contributed by Parkway Shenton. Nonetheless. Singapore remained the largest source of the Group’s revenue.0 million from S$217. The strong set of results in FY 2009 was mainly driven by double-digit growth in revenue and EBITDAR for both the Singapore Healthcare segment and International Hospital Operations.9 million from S$91. In addition. from S$121. Gleneagles Hospital and Parkway East Hospital.2 million in FY 2009. 21 . due to lower tourist arrivals in Singapore as the global economy slowly recovered. Parkway Shenton had also benefited from a contract awarded by the Ministry of Health to conduct temperature screening at all entry points into Singapore during the H1N1 outbreak period. 7% higher than S$914.1 million from S$633.9 million in FY 2009. the Group’s Healthcare segment in Singapore registered strong growth for the year. registering a 1% growth in total revenue to S$642.9 million • Financial prudence throughout 2009 paves the way for future growth Despite all the uncertainties and challenges facing the global economy. which successfully renewed several major corporate client accounts and enjoyed increased patient volumes in 2009.

a 15% increase over 9. EBITDAR for the International Hospitals also increased by 30% to reach S$44.48 to 0.5 million in FY 2008. from S$1. In terms of financial position.0 million.29 as at 31 December 2009. Also contributing to the good performance of the International Hospitals was the Apollo Gleneagles Hospital in Kolkata.1 million. up from S$156.2 million. The Board has resumed dividend payments by declaring a final tax exempt one-tier dividend of 1. where revenue grew 31% in FY 2009 to S$206.4 million. which saw strong growth in patient admissions.45 cents in FY 2009.15 cents per ordinary share. from S$123. Net debt as at 31 December 2009 was S$584.0 million a year ago. Parkway’s basic earnings per share (EPS) excluding exceptional items was 10.5 million from S$27. and the EBITDAR for this segment increased by 16% to S$31. the Group ended FY2009 in a better shape than the year before.1 million.4 million. Revenue from International Healthcare services grew by 6% to S$130.8 million in FY 2009.19 as at 31 December 2008.38 over the same period. with steady demand for hospital services from the Malaysian population and medical tourists. Parkway also experienced robust growth in its International Operations.FINANCIAL REVIEW Supported by the strong growth in the Healthcare segment.07 cents in FY 2008. This was driven mainly by the International Hospitals segment. which saw a 20% increase in revenue in FY 2009 to S$337. dividend payments will be either on a halfyearly or annual basis. India. Parkway’s Singapore operations reported an overall 3% growth in EBITDAR to S$161. subject to the performance of the Group. Going forward. a reduction from S$681.7 million in FY 2008. Group net asset value (NAV) per share grew 9% to S$1. The Pantai Group of hospitals in Malaysia was a main driver of revenue and EBITDAR for the Group’s International Hospital operations. 22 Parkway Holdings Limited Annual Report 2009 . Net debt to equity ratio similarly improved from 0.

Group President and Chief Executive Officer Dr Tan See Leng Chief Executive Officer (Designate) (Appointed on 23 February 2010) Alain Ahkong Chuen Fah Non-executive Director Chang See Hiang Non-executive Director Timothy David Dattels Non-executive Director Ranvir Dewan Non-executive Director Dato’ Mohammed Azlan b.CORPORATE INFORMATION Board of Directors Richard Seow Yung Liang Chairman Dr Lim Cheok Peng Executive Vice Chairman/Managing Director. Shariff Alternate Director to Ganen Sarvananthan Audit & Risk Management Committee Alain Ahkong Chuen Fah Chairman Chang See Hiang Ho Kian Guan Ashish Jaiprakash Shastry Executive Committee Richard Seow Yung Liang Chairman Dr Lim Cheok Peng Ganen Sarvananthan Ashish Jaiprakash Shastry Management Committee Dr Lim Cheok Peng Chairman Richard Seow Yung Liang Ashish Jaiprakash Shastry Nominating Committee Chang See Hiang Chairman Alain Ahkong Chuen Fah Timothy David Dattels Ganen Sarvananthan Richard Seow Yung Liang Remuneration Committee Timothy David Dattels Chairman Ganen Sarvananthan Richard Seow Yung Liang Ashish Jaiprakash Shastry Share Purchase Committee Chang See Hiang Chairman Alain Ahkong Chuen Fah 23 . Mohd. Hashim Non-executive Director (Appointed on 13 October 2009) Ho Kian Guan Non-executive Director Ganen Sarvananthan Non-executive Director Steven Joseph Schneider Non-executive Director Ashish Jaiprakash Shastry Non-executive Director Ho Kian Hock (Alternate Director to Ho Kian Guan) Tanguy Vincent Serra Alternate Director to Timothy David Dattels Ahmad Shahizam b.

CORPORATE INFORMATION

Strategic Planning Committee Richard Seow Yung Liang Chairman Dr Lim Cheok Peng Steven Joseph Schneider Ashish Jaiprakash Shastry Registered Office Parkway Holdings Limited 111 Somerset Road #15-01 TripleOne Somerset Singapore 238164 Tel: (65) 6307 7880 Fax: (65) 6738 1750 www.parkwayholdings.com Company Secretaries June Tay Kwok Fung Ho Li Li Share Registrar M & C Services Private Limited 138 Robinson Road #17-00 The Corporate Office Singapore 068906 Tel: (65) 6227 6660

Principal Bankers Crédit Agricole Corporate and Investment Bank DBS Bank Ltd Oversea-Chinese Banking Corporation Limited Standard Chartered Bank The Hongkong and Shanghai Banking Corporation Limited The Royal Bank of Scotland plc, Singapore Branch

Auditors KPMG LLP Public Accountants and Certified Public Accountants Singapore 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 Partner-in-Charge since the financial year ended 31 Dec 2009 Quek Shu Ping

24

Parkway Holdings Limited

Annual Report 2009

DIRECTORS’ REPORT

Parkway Holdings Limited and its subsidiaries
YEAR ENDED 31 DECEMBER 2009

We are pleased to submit this annual report to the members of the Company together with the audited financial statements for the financial year ended 31 December 2009. DIRECTORS The directors in office at the date of this report are as follows: Richard Seow Yung Liang Dr Lim Cheok Peng Dr Tan See Leng
#

(Chairman) (Executive Vice Chairman/Managing Director) (CEO Designate)

Alain Ahkong Chuen Fah Chang See Hiang Timothy David Dattels Ranvir Dewan Dato’ Mohammed Azlan b. Hashim* Ho Kian Guan Ganendran Sarvananthan Steven Joseph Schneider Ashish Jaiprakash Shastry Ho Kian Hock Ahmad Shahizam b. Mohd. Shariff Tanguy Vincent Serra
*
#

(alternate to Ho Kian Guan) (alternate to Ganendran Sarvananthan) (alternate to Timothy David Dattels)

Appointed on 13 October 2009 Appointed on 23 February 2010

DIRECTORS’ INTERESTS According to the register kept by the Company for the purposes of Section 164 of the Singapore Companies Act, Chapter 50 (the Act), particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and infant children) in shares, debentures, warrants and share options in the Company and in related corporations (other than wholly-owned subsidiaries) are as follows: Name of director and corporation in which interests are held Holdings in the name of the director, spouse or infant children At beginning of the year The Company Richard Seow Yung Liang Dr Lim Cheok Peng Chang See Hiang Ho Kian Guan Ho Kian Hock 366,666 1,880,000 454,000 1,401,653 154,000 At end of the year Other holdings in which the director is deemed to have an interest At beginning of the year At end of the year

Ordinary shares fully paid 366,666 2,255,000 504,000 1,420,403 154,000 – – – 15,900,000 15,900,000 – – – 15,900,000 15,900,000

25

DIRECTORS’ REPORT

Parkway Holdings Limited and its subsidiaries
YEAR ENDED 31 DECEMBER 2009

Holdings at Name of director and corporation in which interests are held The Company (cont’d) beginning of the year

Holdings at end of the year

Parkway Share Option Scheme 2001 Options to subscribe for ordinary shares (exercise price at $0.9763 per share and exercisable between 20/11/2005 and 19/11/2009)1

Dr Lim Cheok Peng Alain Ahkong Chuen Fah Chang See Hiang Ho Kian Guan

375,000 50,000 50,000 18,750 Options to subscribe for ordinary

– – – –

shares (exercise price at $1.6207 per share and exercisable between 10/12/2006 and 9/12/2010)1 Richard Seow Yung Liang Dr Lim Cheok Peng Alain Ahkong Chuen Fah Chang See Hiang Timothy David Dattels Ho Kian Guan Ashish Jaiprakash Shastry 750,000 1,500,000 100,000 75,000 60,000 50,000 60,000 750,000 1,500,000 100,000 75,000 60,000 50,000 60,000

Options to subscribe for ordinary shares (exercise price at $1.8625 per share and exercisable between 10/3/2007 and 9/3/2011)1 Richard Seow Yung Liang Dr Lim Cheok Peng Alain Ahkong Chuen Fah Chang See Hiang Timothy David Dattels Ho Kian Guan Ashish Jaiprakash Shastry 650,000 1,000,000 100,000 75,000 100,000 50,000 100,000 650,000 1,000,000 100,000 75,000 100,000 50,000 100,000

Options to subscribe for ordinary shares (exercise price at $1.8451 per share and exercisable between 18/11/2008 and 17/11/2011)1 Alain Ahkong Chuen Fah 150,000 150,000

26

Parkway Holdings Limited

Annual Report 2009

000 100.250.000 250.000 200.000 250.5177 per share and exercisable between 7/3/2009 and 6/3/2013)1 Richard Seow Yung Liang Alain Ahkong Chuen Fah Chang See Hiang Timothy David Dattels Ranvir Dewan Ho Kian Guan Steven Joseph Schneider Ashish Jaiprakash Shastry 1.000 150.000 150.000 100.000 150.000 100.000 150.000 Options to subscribe for ordinary shares (exercise price at $2.000 200.000 1.000 Options to subscribe for ordinary shares (exercise price at $2.000 815.000.000 100.000 200.000 1.000 150.3381 per share and exercisable between 16/6/2008 and 15/6/2012)1 Richard Seow Yung Liang Alain Ahkong Chuen Fah Chang See Hiang Timothy David Dattels Ranvir Dewan Ho Kian Guan Steven Joseph Schneider Ashish Jaiprakash Shastry 1.000 100.000 150.000 100.000 250.000 700.000 100.DIRECTORS’ REPORT Parkway Holdings Limited and its subsidiaries YEAR ENDED 31 DECEMBER 2009 Holdings at Name of director and corporation in which interests are held The Company (cont’d) beginning of the year Holdings at end of the year Parkway Share Option Scheme 2001 (cont’d) Options to subscribe for ordinary shares (exercise price at $3.000 27 .000 200.000 100.000 250.000 150.5081 per share and exercisable between 7/6/2008 and 6/6/2012)1 Dr Lim Cheok Peng 700.000 100.000.000 150.5455 per share and exercisable between 7/3/2009 and 6/3/2013)1 Dr Lim Cheok Peng 815.250.000 100.000 Options to subscribe for ordinary shares (exercise price at $3.000 100.000 100.

000 Parkway Performance Share Plan (2007 Award)2 119. The delivery of the performance shares will depend on the achievement of prescribed performance targets over the performance qualifying period.090 59.000 150. 2 3 + ^ 28 Parkway Holdings Limited Annual Report 2009 . The actual number of performance shares to be delivered will depend on the achievement of prescribed performance targets over the performance qualifying period.000 300.09 per share and exercisable between 9/10/2010 and 8/10/2014)1 Richard Seow Yung Liang Alain Ahkong Chuen Fah Chang See Hiang Timothy David Dattels Ranvir Dewan Ho Kian Guan Steven Joseph Schneider Ashish Jaiprakash Shastry The Company (cont’d) Dr Lim Cheok Peng – – – – – – – – Parkway Performance Share Plan (Share Plan)^ 1.000 + Parkway Performance Share Plan (2009 SIP Award)3 – 1 228.000 150.027.000 250.000 The options were granted in accordance with the Rules of the Parkway Share Option Scheme 2001 as set out in the Directors’ Report of Parkway Holdings Limited for the year ended 31 December 2009.250.DIRECTORS’ REPORT Parkway Holdings Limited and its subsidiaries YEAR ENDED 31 DECEMBER 2009 Holdings at Name of director and corporation in which interests are held The Company (cont’d) beginning of the year Holdings at end of the year Parkway Share Option Scheme 2001 (cont’d) Options to subscribe for ordinary shares (exercise price at $2. The number of performance shares includes additional performance shares that may be delivered if performance targets are exceeded.950 Parkway Performance Share Plan (2009 Award)2 – 1. The performance shares were awarded in accordance with the Rules of the Share Plan as set out in the Directors’ Report of Parkway Holdings Limited for the year ended 31 December 2009.000 150.924 407.000 150.545 Parkway Performance Share Plan (2008 Award)2 611. Special incentive plan award.000 150.

respectively. namely Timothy David Dattels. Details of the Parkway Scheme 2001 and amendments effected by resolutions passed at the Extraordinary General Meetings of the Company held on 4 July 2001 and 2 November 2006 were set out in the Directors’ Reports for the years ended 31 December 2001 and 31 December 2006. Ganen Sarvananthan and Ashish Jaiprakash Shastry. Except for salaries. warrants or share options of the Company. During the year. there were no changes in any of the above-mentioned interests in the Company between the end of the financial year and 21 January 2010. since the end of the last financial year.DIRECTORS’ REPORT Parkway Holdings Limited and its subsidiaries YEAR ENDED 31 DECEMBER 2009 Except as disclosed in this report. directors and members of these firms/companies. 29 . debentures. or with a company in which he has a substantial financial interest. these directors have neither received nor will they become entitled to receive any benefit from these transactions other than as suppliers. a benefit by reason of a contract made by the Company or a related corporation with the director. or the subsidiaries’ directors or a firm in which one of the directors is a member or companies in which the directors of the Company or its subsidiaries have substantial financial interest in the ordinary course of business. either at the beginning or at the end of the financial year. (ii) The options shall be subject to such conditions (including any vesting schedule) as may be imposed by the Remuneration Committee and shall be exercisable. comprising four directors. no director has received or become entitled to receive. Richard Seow Yung Liang. SHARE OPTIONS Parkway Share Option Scheme 2001 (Parkway Scheme 2001) The Parkway Scheme 2001 was approved by the shareholders of the Company at an Extraordinary General Meeting held on 18 January 2001. during the period commencing one year after the grant date and expiring on the fifth anniversary of the grant date unless they have been cancelled or have lapsed prior to that date. or with a firm of which he is a member. or of related corporations. no director who held office at the end of the financial year had interests in shares. certain transactions were made between the Company and/or its subsidiaries and its directors. Information regarding the Parkway Scheme 2001 is set out below: Market Price Options (i) The exercise price of the option is determined at the average of the last dealt prices of the Company’s shares on the Singapore Exchange Securities Trading Limited (SGX-ST) prevailing on the three consecutive trading days immediately preceding the date of grant of such options (the Market Price). However. The Parkway Scheme 2001 is administered by the Company’s Remuneration Committee. Except as disclosed in this report. in whole or in part. bonuses and fees and those benefits that are disclosed in this report and in note 24 to the financial statements.

229.000 – 151.670.000 2.250 – 664.850. details of the options granted under the Parkway Scheme 2001 on the unissued shares of the Company are as follows: Number of option holders at 31 Dec 2009 – Date of grant of options 19/11/2004 Exercise price per share $0.576.000 – – 780. Parkway Holdings Limited Annual Report 2009 2 30 .8773 1. At the end of the financial year.750 1.700.5935 1. provided that the maximum discount does not exceed 20% of the Market Price.000 – – 350.640.250 27.000 – – 75.000 33 6/3/2008 $2.000 – – 200.000 964. in whole or in part.000 – – 500.850.15% of the Market Price.250 150. during the period commencing after the second anniversary of the grant date and expiring on the fifth anniversary of the grant date unless they have been cancelled or have lapsed prior to that date.500 697.075.595.000 – – – 150.000 19.698.21% of the Market Price.5455 8.000 55 15/6/2007 $3.050.500 2.389.000 1.420.9763 Options outstanding at 1 Jan 2009 709.000 – 1.000 1 6/6/2007 $3.750 2.250 6.250 Options granted – Options exercised 709.000 1 17/11/2006 $1.89262 1.000. (ii) The options shall be subject to such conditions (including any vesting schedule) as may be imposed by the Remuneration Committee and shall be exercisable.5177 2.917.000 3.500.000 2.8625 2.000 3. Options granted at a discount of 15.5081 4.3381 2.000 500.000 – – 100.500 20 9/12/2005 $1.175.000 – 173.145.6207 2.156.000 7 17/11/2006 $1.DIRECTORS’ REPORT Parkway Holdings Limited and its subsidiaries YEAR ENDED 31 DECEMBER 2009 Incentive Options (i) The exercise price of the option is determined by the Remuneration Committee at a discount to the Market Price.000 8 6/3/2008 $2.550.500 8 1 Options granted at a discount of 16.700.250 Options cancelled – Options outstanding at 31 Dec 2009 – Exercise period 20/11/2005 to 19/11/2009 16/11/2006 to 15/11/2010 10/12/2006 to 9/12/2010 10/3/2007 to 9/3/2011 10/3/2007 to 9/3/2011 18/11/2008 to 17/11/2011 18/11/2008 to 17/11/2011 7/6/2008 to 6/6/2012 16/6/2008 to 15/6/2012 7/3/2009 to 6/3/2013 7/3/2009 to 6/3/2013 9/10/2010 to 8/10/2014 15/11/2005 $1.000 2.000 8 8/10/2009 $2.000 2.000 31 9/3/2006 $1.84511 150.708.716.000 24.0900 – 27.000 7 9/3/2006 $1.

000 100.000 400.015.DIRECTORS’ REPORT Parkway Holdings Limited and its subsidiaries YEAR ENDED 31 DECEMBER 2009 Details of options granted to directors of the Company who held office at the end of the financial year under the Parkway Scheme 2001 are as follows: Aggregate Options granted for year ended Name of director Richard Seow Yung Liang Dr Lim Cheok Peng Alain Ahkong Chuen Fah Chang See Hiang Timothy David Dattels Ranvir Dewan Ho Kian Guan Ganen Sarvananthan Steven Joseph Schneider Ashish Jaiprakash Shastry Ho Kian Hock 31 Dec 2009 1.550.000 4.500.000 of scheme to 31 Dec 2009 250.000 – – – financial commencement commencement commencement Since the commencement of the Parkway Scheme 2001.900. by virtue of such holding. Except as disclosed above.000 1. 31 .750 share options were exercised under the Parkway Scheme 2001.000 400. 2.000 1.000 150.000 350.000 400.000.000 150.000 650. no participant under the Parkway Scheme 2001 has been granted 5% or more of the total options available under the Parkway Scheme 2001. Since the commencement of the Parkway Scheme 2001.251.000 – – – 100.000 610.000 of scheme to 31 Dec 2009 – – – – – – – 150. 50.000 150. 172. Subsequent to the balance sheet date up to 21 January 2010.000 – – 375.000 options have been granted to the employees and non-executive directors of the Company and its subsidiaries since the commencement of the Parkway Scheme 2001 to the end of the financial year under review.000 500.000 options were granted to non-executive directors of the Company and its subsidiaries under the Parkway Scheme 2001.150. to any rights to participate in any share issue of any other company.000 – 400. no options have been granted to the controlling shareholders of the Company or their associates. there were no unissued shares of the Company or its subsidiaries under options granted by the Company or its subsidiaries as at the end of the financial year.000 610.000 610.000 1.150. The options granted by the Company and its subsidiaries do not entitle the holders of the options.000 150.000 – granted since exercised since cancelled since of scheme to 31 Dec 2009 5.000 – 300.000 5.000 1.700.000 – options Aggregate options Aggregate options Aggregate options outstanding as at 31 Dec 2009 4.000 250.250. During the financial year.000 400.000 150.000 150.000 875.515.000 150.000 610.

566.000 19. eligible employees and non-executive directors of the Company and its subsidiaries will be awarded with fully paid up ordinary shares of the Company.071 – – – – 67 40 shares* holders – – 5. Ganen Sarvananthan and Ashish Jaiprakash Shastry. when added to the aggregate number of ordinary shares issued pursuant to other share-based incentive schemes of the Company.684. Since the adoption of the Share Plan by the Company. comprising four directors. upon the expiry of the prescribed vesting period when certain prescribed performance targets are met. an executive director of the Company. up to 8.222 performance shares have been conditionally awarded to and accepted by employees of the Company and its subsidiaries.000 1.000 shares* holders 204. conditional awards of up to 7.DIRECTORS’ REPORT Parkway Holdings Limited and its subsidiaries YEAR ENDED 31 DECEMBER 2009 Parkway Performance Share Plan (Share Plan) At the same Extraordinary General Meeting held on 2 November 2006. details of the performance shares awarded under the Share Plan are as follows: Granted and accepted Balance at 1/1/2009 No. Richard Seow Yung Liang.303. At the end of the financial year. No performance shares have been granted to the controlling shareholders of the Company or their associates and no participants under the Share Plan have been awarded 5% or more of the total number of performance shares which may be issued under the Share Plan since the commencement of the Share Plan.000 performance shares. of Performance holders 2007 award 2008 award 2009 award 2009 SIP award * during the financial year No. The Share Plan is administered by the Remuneration Committee. 32 Parkway Holdings Limited Annual Report 2009 .723.829 5.026. of Performance shares* holders – – – – 5 6 1 1 Lapsed No.554 667.000 1.597 898. namely Timothy David Dattels.000 3 4 66 39 5 6 – – Includes additional performance shares that may be delivered if performance targets are exceeded.284.242 39. Subsequent to the balance sheet date up to 21 January 2010. or cash in lieu of ordinary shares of the Company equivalent to the aggregate market value of such performance shares or a combination of both.976.255. The actual number of performance shares to be delivered will depend on the achievement of prescribed performance targets over the performance qualifying period. delivered and/or lapsed under the Share Plan. there has been no change in the conditional awards granted. The performance shares which may be issued pursuant to awards granted under the Share Plan. the shareholders of the Company approved the Share Plan. Under the Share Plan. who was conditionally awarded up to 1.151 1.000 performance shares were granted and accepted by 69 key executives of the Group for the performance qualifying periods from 2009 to 2011. During the year. shall not exceed 15% of the total number of issued ordinary shares of the Company on the day immediately preceding the date on which the award is granted. of Performance Delivered No. of Performance Balance at 31/12/2009 No. of Performance shares* 76. The key executives include Dr Lim Cheok Peng.000 – – – – shares* holders 127.

• • • • the appropriateness of quarterly and full year announcements and reports. reviewing the level of assistance provided by the Company’s officers to the internal and external auditors. the ARMC has. the effectiveness and efficiency of internal and external audits. The principal responsibility of the ARMC is to assist the Board of Directors in the identification and monitoring of areas of significant business risks including the following: • • the effectiveness of the management of principal business risks. Specific functions of the ARMC include reviewing the scope of work of the internal and external auditors. and interested person transactions. The ARMC has full access to management and is given the resources required for it to discharge its functions. and its own code of business conduct. In addition. It has full authority and discretion to invite any director or executive officer to attend its meetings.DIRECTORS’ REPORT Parkway Holdings Limited and its subsidiaries YEAR ENDED 31 DECEMBER 2009 Audit & Risk Management Committee The members of the Audit & Risk Management Committee (ARMC) during the year and at the date of this report are as follows: Alain Ahkong Chuen Fah (Chairman). non-executive director Chang See Hiang. in accordance with Chapter 9 of the Listing Manual. The committee also recommends the appointment of the external auditors and reviews the level of audit and non-audit fees. particularly those of the Act and the Listing Manual. receiving and considering the reports of the internal and external auditors. • compliance with laws and regulations. 33 . The ARMC met five times during the year. non-executive director The ARMC performs the functions specified in Section 201B of the Act. the effectiveness of the management of financial business risks and the reliability of management and financial reporting. the effectiveness of the Group’s system of internal controls. and with the assistance of the internal auditors. reviewed the interested person transactions. non-executive director Ashish Jaiprakash Shastry. and ensuring that management responds to recommendations made by the internal and external auditors. reviewed the requirements for approval and disclosure of interested person transactions. non-executive director Ho Kian Guan. the SGX-ST Listing Manual (the Listing Manual) and the Code of Corporate Governance 2005.

The ARMC has recommended to the Board of Directors that the auditors.DIRECTORS’ REPORT Parkway Holdings Limited and its subsidiaries YEAR ENDED 31 DECEMBER 2009 The ARMC carried out a review of the external auditors’ remuneration. be nominated for re-appointment as auditors at the forthcoming Annual General Meeting of the Company. On behalf of the Board of Directors Richard Seow Yung Liang Director Dr Lim Cheok Peng Director 23 February 2010 34 Parkway Holdings Limited Annual Report 2009 . KPMG LLP. KPMG LLP. and the independence of the external auditors as required under Section 206(1A) of the Act and Rule 1207(6b) of the Listing Manual and determined that the auditors were independent in carrying out their audit of the financial statements. non-audit services provided by the external auditors. The auditors. have indicated their willingness to accept re-appointment.

authorised these financial statements for issue. On behalf of the Board of Directors Richard Seow Yung Liang Director Dr Lim Cheok Peng Director 23 February 2010 35 .STATEMENT BY DIRECTORS Parkway Holdings Limited and its subsidiaries YEAR ENDED 31 DECEMBER 2009 In our opinion: (a) the financial statements set out on pages 38 to 140 are drawn up so as to give a true and fair view of the state of affairs of the Group and of the Company as at 31 December 2009 and the results. on the date of this statement. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. changes in equity and cash flows of the Group and the changes in equity of the Company for the year ended on that date in accordance with the provisions of the Singapore Companies Act. and (b) at the date of this statement. The Board of Directors has. Chapter 50 and Singapore Financial Reporting Standards.

INDEPENDENT AUDITORS’ REPORT Independent Auditors’ Report MEMBERS OF THE COMPANY PARKWAY HOLDINGS LIMITED We have audited the financial statements of Parkway Holdings Limited (the Company) and its subsidiaries (the Group). MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of the Singapore Companies Act. In making those risk assessments. 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. Chapter 50 (the Act) and Singapore Financial Reporting Standards. the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. We conducted our audit in accordance with Singapore Standards on Auditing. This responsibility includes: (a) 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. 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. (b) (c) selecting and applying appropriate accounting policies. the statement of comprehensive income. but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. including the assessment of the risks of material misstatement of the financial statements. 36 Parkway Holdings Limited Annual Report 2009 . We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. and making accounting estimates that are reasonable in the circumstances. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. AUDITORS’ RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audit. which comprise the balance sheets of the Group and the Company as at 31 December 2009. statement of changes in equity and cash flow statement of the Group and statement of changes in equity of the Company for the year then ended. as set out on pages 38 to 140. and a summary of significant accounting policies and other explanatory notes. whether due to fraud or error. 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.

and (b) the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. KPMG LLP Public Accountants and Certified Public Accountants Singapore 23 February 2010 37 .INDEPENDENT AUDITORS’ REPORT Independent Auditors’ Report MEMBERS OF THE COMPANY PARKWAY HOLDINGS LIMITED OPINION In our opinion: (a) the consolidated financial statements of the Group and the balance sheet and statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards to give a true and fair view of the state of affairs of the Group and of the Company as at 31 December 2009 and the results. changes in equity and cash flows of the Group and the changes in equity of the Company for the year ended on that date.

200 1.435 (4.703 1.FINANCIAL STATEMENTS Balance sheets AS AT 31 DECEMBER 2009 Group Note 2009 $’000 2008 $’000 (Restated) Non-current assets Property.476 Total assets Equity attributable to equity holders of the Company Share capital Treasury shares Other reserves Accumulated profits Minority interest Total equity carried forward 17 17 18 1.274 – – 922 – – 230.117 2007 $’000 (Restated) Company 2009 $’000 2008 $’000 – – 2.483 – – 2.062 143.922 262.786 1.341 103.494.884 53.656.268 1.444 231.011 19.539) – – – – 2.002.438 371.849 – – 605 – – 390.660) 14.391) 3.267.813 (3.413.128.752 2.187.099.439 2.928 25.722 137.242 (9.108 213.040 – 1.128.102.435 (4.070 1.421) 348.085 1.185 22.338.121.371 656.378 2.337 – 1.588 1.544 2.950 – 17.366 2.173 286.765 (7.512.263.055) 21.662 76.575 159.128.987.460.205.538 1.816 2.446 – 18.801 8.751 – 72.970 Current assets Development property Inventories Trade and other receivables Tax recoverable Other financial assets Cash and cash equivalents 9 16 11 12 13 360.537.242 (9.373.211 390.258 278.798 4 5 6 7 1.273 1. plant and equipment Intangible assets Interests in subsidiaries Interests in associates Deposits paid to minority shareholder of a subsidiary Amounts due from joint ventures Other financial assets Deferred tax assets 6 8 9 10 29.129 290.884 8.124.678 – 205.818 7.663 30.502 12.244) 229.299 3.681 356 542.090 1.207 95.975 (4.055) (12.545 91.062 701.865 1.827 1.660) (10.661 41.040 The accompanying notes form an integral part of these financial statements.187.153. 38 Parkway Holdings Limited Annual Report 2009 .489 830.544) – – 52 – 2.632 630.205.257 – 194.286.369 59.372 322.128.337 1.165 75.574 1.605 – 205.541 597 610.199 2.

427 Current liabilities Bank overdrafts Trade payables and accrued operating expenses Other payables Interest-bearing borrowings Financial derivatives Intra-group financial guarantees Employee benefits Current tax payable 21 19 19 19 20 155.064 1.040 498.506 229.438 2007 $’000 (Restated) 656.299 Company 2009 $’000 2008 $’000 1.632 – – 3.067 – 2.413.037 267.FINANCIAL STATEMENTS Balance sheets AS AT 31 DECEMBER 2009 Group Note 2009 $’000 2008 $’000 (Restated) Total equity brought forward Non-current liabilities Interest-bearing borrowings Amounts due to joint venture partners Loans from subsidiaries Deferred tax liabilities 19 8 6 10 1.054 7.090 The accompanying notes form an integral part of these financial statements.661 39.755 – 774.739 11 – 1.562 45.177.980 1.581 1.374 88.950 151.259 16.397 1.676 97 1.200 1.337 1.565.612 679 1.289.327 830 – 9.273.512.364 1. 39 .246 3.856 38.819 Total liabilities Total equity and liabilities 1.319 281.947 – 11.300 1.074 44.449 13.224 – 6.002 32.647 1 – 4.918 268.301.205.722 14.325.384 497.153.750 – 1.050 2.512 2.373 40.341 12.222 – 25.512 2.102.498 23.405 – 25.252 59.347 1.548 145 1.625 92.663 16 1.849 – 2.977 – 803.296.944 – 26.931 145.411 39.446 151.187.448 497.494.574.549 23.613 1.987.292.537.178.

718) (6. 40 Parkway Holdings Limited Annual Report 2009 .699) (98. net of tax Total comprehensive income for the year (7.823 24.979 122 (174.207 33.199 (2.455) 16.711 3.517) (21.187) (4.237) (34. plant and equipment Amortisation of intangible assets Staff costs – Salaries.583) (147.551) (142. wages and other staff benefits – Restructuring costs Operating lease expenses Other operating expenses Finance costs Allowance (made)/reversed for impairment loss on trade and other receivables – Allowance based on specific and collective assessment – Other specific allowance Impairment loss on available-for-sale financial assets Gain on disposal of available-for-sale financial assets Impairment loss on intangible assets Loss on disposal and write off of property.417 23 23 (296.600 (16.805) (271.804) (69. plant and equipment Share of profits of associates (net of tax) Profit before income tax Income tax expense Profit for the year Other comprehensive income: Exchange differences on retranslation of opening net assets of foreign subsidiaries.236) The accompanying notes form an integral part of these financial statements.022) (6.199) 550 (7.852 155.267) 19. joint ventures and associates Changes in fair value of available-for-sale financial assets Impairment loss on available-for-sale financial assets Effects on disposal of available-for-sale financial assets Effective portion of changes in fair value of cash flow hedges Income tax relating to components of other comprehensive income Other comprehensive income for the year.418) (97.864 (8.15 14 9 (15.FINANCIAL STATEMENTS Consolidated Statement of Comprehensive Income YEAR ENDED 31 DECEMBER 2009 Group Note 2009 $’000 2008 $’000 (Restated) Revenue Other operating income Changes in inventories Inventories and consumables Purchased and contracted services Depreciation and impairment losses of property.207 (2.183) 43.414) (16.449) – (24.582 (195.266) 17.474) 1.084) 118.879) (11.221 (67) (11.057) 11.152) 914.306) (48.500) (3.236) (43.878) (16.008 – (6.596) 4 5 22 979.150 23 25 5 14.221) – – (6.127 59.175) 124.780 (7.039 (30.067) – (70.092) 275 2.490) 23.

230 118.50 3.049 5.368 43.54 10.77 3.417 The accompanying notes form an integral part of these financial statements.FINANCIAL STATEMENTS Consolidated Statement of Comprehensive Income YEAR ENDED 31 DECEMBER 2009 Group Note 2009 $’000 2008 $’000 (Restated) Profit attributable to: Equity holders of the Company Minority interest Profit for the year Total comprehensive income attributable to: Equity holders of the Company Minority interest Total comprehensive income for the year Earnings per share (cents): Basic Diluted 26 26 10.694 19.550 5.876 5.780 17.864 38.988 124.456 1. 41 .150 118.75 113.

765 – 371.FINANCIAL STATEMENTS Consolidated Statement of Changes in Equity YEAR ENDED 31 DECEMBER 2009 Exchange Share Note capital $’000 Group At 1 January 2008.106) – – – – – – 17 17 35 371.23 cents per share Third interim tax exempt one-tier dividend paid of 0.223) – (8.391) – (7.51 cents per share in respect of year 2007 First interim tax exempt one-tier dividend paid of 1.066) – – – – – – – – – – – – – – – – – – (1.765 – 783 755.843) – – Treasury shares $’000 Capital reserve $’000 fluctuation reserve $’000 The accompanying notes form an integral part of these financial statements. 42 Parkway Holdings Limited Annual Report 2009 .391) – – – – – – – – – (8.23 cents per share Second interim tax exempt one-tier dividend paid of 1.242 – (9.837 – – 17 – – – – – (5. as restated Total comprehensive income for the year Issue of shares under share option scheme Issue of shares pursuant to rights issue Value of employee services received for issue of share options Conditional award of performance shares Purchase of treasury shares Utilisation of treasury shares for share options and vesting of performance shares Excess of treasury shares cost over exercise price of share options Capital contribution from minority shareholders Dividends paid to minority shareholders Final tax exempt one-tier dividend paid of 4.694 (7.75 cents per share At 31 December 2008 – 1.128.661) – (12.660) – (1.223) (3. as previously stated Effects of change in accounting policy Balance as at 1 January 2008.661) – – – – – 17 – 2.

871) (8.661) – – (34.694 6.871) (8.299 19.966 50.932 211.371 1.632 38.458) 1.658) (13.413.449) 5.661) 49.458) 229.633 50.209 1.666 656.879 (5.879 (5.151) – – – – 75.871) (8.106) 2.658) (13.359 (1.150 783 755.449) – – – – – – – – – – – – – (11.106) 2.301) – – – – – – – – – – – – – – 6.928 17.438 43 .165 25.844 – – – 6.338.867) (13.301 (5.209 1.666 630.049 – – – – – – – – – (34.FINANCIAL STATEMENTS Consolidated Statement of Changes in Equity YEAR ENDED 31 DECEMBER 2009 Total attributable Equity Hedge reserve $’000 Fair value reserve $’000 compensation reserve $’000 Accumulated profits $’000 to equity holders of the Company $’000 Minority interest $’000 Total equity $’000 – – – (11.844 – 6.867) (13.827 580.666 262.262 50.301 – 5.694 6.837 (1.867) (13.694 – – – – – – – 49.151) (34.879 – – – – – – – – – 14.209 1.837 (1.273 605.456 783 755.458) 1.359 (1.658) (13.371 – 25.

066) – (12.660) – (1.128.660) – (9.997) – – (18.661) – (12.334) Treasury shares $’000 Capital reserve $’000 fluctuation reserve $’000 The accompanying notes form an integral part of these financial statements.435 – – (4.242 – (9.661) – (1.605 – – – – – – 27 28 17 – – 193 – – – – – – – – – 35 1.055) (3. 44 Parkway Holdings Limited Annual Report 2009 .400) 17 – – – – – 5. as restated Total comprehensive income for the year Effect of acquisition of additional interest in subsidiaries Effect of disposal of interest in a subsidiary Issue of shares under share option scheme Value of employee services received for issue of share options Conditional award of performance shares Utilisation of treasury shares for share options Excess of treasury shares cost over exercise price of share options Dividends paid to minority shareholders At 31 December 2009 – – 1.128. as previously stated Effects of change in accounting policy Balance as at 1 January 2009.242 – 1.FINANCIAL STATEMENTS Consolidated Statement of Changes in Equity YEAR ENDED 31 DECEMBER 2009 Exchange Share Note capital $’000 Group At 1 January 2009.336) – (4.066) (6.128.

200 45 .637) (155) 193 3.165 113.886 1.932 – – – – 3.438 118.605 (3.027 – – – 21.550 – – 193 3.780 (2.FINANCIAL STATEMENTS Consolidated Statement of Changes in Equity YEAR ENDED 31 DECEMBER 2009 Total attributable Equity Hedge reserve $’000 Fair value reserve $’000 compensation reserve $’000 Accumulated profits $’000 to equity holders of the Company $’000 Minority interest $’000 Total equity $’000 (11.552 53.449) 1.417 175.338.336) (1.827 118.449) – (11.458 3.413.458 3.886 1.008 – – – – – – – – (10.886 229.173) 76.027 5.173) 1.637) (155) – – – – – (1.273 5.703 1.538 1.273 – 75.460.932 – 14.359.876 – – – – – – – – 348.662 75.284.537.441) – – – – – – – – – – – – – 14.027 5.605 (3.279 53.458 3.336) – 1.941 53.230 (2.

FINANCIAL STATEMENTS Statement of Changes in Equity YEAR ENDED 31 DECEMBER 2009 Note Company At 1 January 2008 Total comprehensive income for the year Issue of shares under share option scheme Issue of shares pursuant to rights issue Purchase of treasury shares Utilisation of treasury shares for share options and vesting of performance shares Value of employee services received for issue of share options Conditional award of performance shares Final tax exempt one-tier dividend paid of 4.23 cents per share Third interim tax exempt one-tier dividend paid of 0. 46 Parkway Holdings Limited Annual Report 2009 .23 cents per share Second interim tax exempt one-tier dividend paid of 1.51 cents per share in respect of year 2007 First interim tax exempt one-tier dividend paid of 1.75 cents per share At 31 December 2008 At 1 January 2009 Total comprehensive income for the year Issue of shares under share option scheme Utilisation of treasury shares for share options Value of employee services received for issue of share options Conditional award of performance shares At 31 December 2009 17 17 17 17 17 17 The accompanying notes form an integral part of these financial statements.

458 3.FINANCIAL STATEMENTS Statement of Changes in Equity YEAR ENDED 31 DECEMBER 2009 Equity compensation Share capital $’000 Treasury shares $’000 reserve $’000 Accumulated profits $’000 Total $’000 371.605 – – (4.658) (13.040 1.369 54.871) (8.458) 1.435 (7.879 – – – – 14.055) 6.574 53.128.658) (13.027 21.660) (9.337 47 .128.884 – – – 3.242 1.458) 53.242 – 193 – – – 1.458 3.879 (34.391) – – – (5.588 425.837 – – – – – – (9.187.027 1.837 6.660) – – 5.995 69.187.106) 2.209 1.106) 2.014 – – – – 59.574 6.603 783 755.209 1.884 14.694 (5.128.603 – – – – – – (34.014 193 5.867) (13.765 – 783 755.205.871) (8.825 69.605 3.796 – – – – – 6.867) (13.040 6.694 – – – – – – – – 1.

408 (2.714) 230.909) 16.209 1.925) (4.835) 132.187 2.022 6.027 – (9.169 155.916 (21) 48.127) 6.457) 11.039 59.879 (1. plant and equipment Amortisation of intangible assets Impairment loss on intangible assets Impairment loss on available-for-sale financial asset Fair value loss on derivative financial instrument Allowance for impairment loss on trade and other receivables Gain on disposal of equity investments Gain on disposal of available-for-sale financial assets Gain on liquidation of joint venture Loss on disposal and write off of property.941) – (550) – 4.057 – (22) (11.079 42.844) 43.FINANCIAL STATEMENTS Consolidated Cash Flow Statement YEAR ENDED 31 DECEMBER 2009 Group 2009 $’000 2008 $’000 (Restated) Cash flows from operating activities Profit before income tax Adjustments for: Exchange difference Depreciation and impairment losses of property.582) 36.805 206.458 3.490 (171) (5) (23.152 7. plant and equipment Gain on disposal of subsidiary Gain on disposal of associates Share of profits of associates Share option expense Conditional award of performance shares Dividend income Interest income Interest expense Changes in working capital: Increase in inventories (Decrease)/Increase in trade and other receivables (Increase)/Decrease in available-for-sale financial assets Increase in trade and other payables Cash generated from operations Income taxes paid Net cash from operating activities carried forward (3. 48 Parkway Holdings Limited Annual Report 2009 .718 6.751 (37.256 170.067) 515 8.596 181.994 (17.280 (122) (19.236 – 16.852) 3.651 (69) – (485) 6.600 The accompanying notes form an integral part of these financial statements.590 (250) 8.199 330 (1.828 247.221 4.

229) 221 208 – – – (28. plant and equipment Acquisition of joint venture.280 27 27 28 (61.048.270 (1.881 (2.849 (2.925 16.659) 1.371 (586) (2.611) – 2.715) 26 124 (4.272) 1.139 (1.343 397.454) – 15.613 The accompanying notes form an integral part of these financial statements.151) (5.176 (52.277 (39.821) 1.705.200 – (641) (80. net of cash acquired Acquisition of additional interest in a subsidiary Proceeds from disposal of associates Net repayment by associates Net advances to joint ventures Proceeds from disposal of available-for-sale equity investments Proceeds from maturity of fixed income securities Proceeds from disposal of subsidiary Proceeds from disposal of available-for-sale financial assets Purchase of other financial assets Deposit for option to purchase additional interest in a subsidiary Deposit for option to purchase interest in an investment Dividends received Dividends received from associates Interest received Expenses incurred for land development rights capitalised Development of intellectual property Net cash used in investing activities Cash flows from financing activities Issue of shares under share option scheme Proceeds from rights issue Purchase of treasury shares Repayment of bank loans Proceeds from bank loans Repayment of finance lease obligations Payment for interest rate cap Net loan from joint venture partner Interest paid Dividends paid Receipt of cash from re-issuance of treasury shares for share options exercised Dividends paid to minority shareholders Pledged deposits withdrawn/(transferred) Net cash (used in)/from financing activities Net increase in cash and cash equivalents carried forward 230.793 4.056) 3.734) 2. 49 .440.073 9. plant and equipment Proceeds from sale of property.667) (10.FINANCIAL STATEMENTS Consolidated Cash Flow Statement YEAR ENDED 31 DECEMBER 2009 Group Note 2009 $’000 2008 $’000 (Restated) 132.106) (5.358) (33.173) (191.219) 30.541) – – 8 12.048) (1.745) 783 755.694 (5.854) 1.416) (271.855) – 21 794 (27.650) – 1.176 (1.115) – (2.646) 193 – – (31.916 Net cash from operating activities brought forward Cash flows from investing activities Purchase of property.692) (9.562) (70.360.166 (39. plant and equipment Development costs capitalised as property.025) – 2.922 (5.977) (121.065) (391) (1.

FINANCIAL STATEMENTS

Consolidated Cash Flow Statement
YEAR ENDED 31 DECEMBER 2009

Group Note 2009 $’000 2008 $’000 (Restated) Net (decrease)/increase in cash and cash equivalents brought forward Cash and cash equivalents at 1 January Exchange fluctuation on cash and cash equivalents Cash and cash equivalents at 31 December 16 (121,745) 531,264 (1,200) 408,319 397,613 139,166 (5,515) 531,264

During the financial year, property, plant and equipment amounting to $2,463,000 (2008: $788,000) was acquired under finance leases.

The accompanying notes form an integral part of these financial statements. 50
Parkway Holdings Limited Annual Report 2009

FINANCIAL STATEMENTS

Notes to the Financial Statements
YEAR ENDED 31 DECEMBER 2009

These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 23 February 2010. 1 DOMICILE AND ACTIVITIES Parkway Holdings Limited (the Company) is incorporated in the Republic of Singapore. The address of the Company’s registered office is 111 Somerset Road, #15-01, TripleOne Somerset, Singapore 238164. The principal activities of the Company are those relating to investment holding while those of the subsidiaries consist of the business of private hospital ownership and management, and related healthcare services, management of medical clinics, provision of clinical research services, ownership and management of radiology clinics, provision of comprehensive diagnostic laboratory services, provision of managed care and related services, underwriting of accident and healthcare insurance policies, provision of fund management and consultancy services, and investment holding. The consolidated financial statements relate to the Company and its subsidiaries (together referred to as the Group) and the Group’s interests in joint ventures and associates. 2 BASIS OF PREPARATION 2.1 Statement of compliance The financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (FRS). 2.2 Basis of measurement The financial statements have been prepared on the historical cost basis except for the following material items in the balance sheet: • • • • 2.3 available-for-sale financial assets are measured at fair value investment property is measured at fair value liabilities for cash-settled share-based payment arrangements are measured at fair value derivative financial instruments are measured at fair value

Functional and presentation currency These financial statements are presented in Singapore dollars which is the Company’s functional currency. All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated. Use of estimates and judgements The preparation of financial statements in conformity with FRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Information about critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in note 34.

2.4

51

FINANCIAL STATEMENTS

Notes to the Financial Statements
YEAR ENDED 31 DECEMBER 2009

2

BASIS OF PREPARATION (cont’d) 2.5 Changes in accounting policies Overview Starting as of 1 January 2009 on adoption of new/revised FRSs, the Group has changed its accounting polices in the following areas: • • • Presentation of financial statements Determination and presentation of operating segments Valuation of investment properties

Presentation of financial statements The Group applies revised FRS 1 Presentation of Financial Statements (2008), which became effective as of 1 January 2009. As a result, the Group presents in the consolidated statement of changes in equity all owner changes in equity, whereas all non-owner changes in equity are presented in the consolidated statement of comprehensive income. Comparative information has been re-presented so that it is also in conformity with the revised standard. Since the change in accounting policy only impacts presentation aspects, there is no impact on earnings per share. Determination and presentation of operating segments As of 1 January 2009, the Group determines and presents operating segments based on the information that is internally provided to the Board of Directors, which is the Group’s chief operating decision maker. This change in accounting policy is due to the adoption of FRS 108 Operating Segments. Previously operating segments were determined and presented in accordance with FRS 14 Segment Reporting. The new accounting policy in respect of operating segment disclosures is presented as follows. Comparative segment information has been re-presented in conformity with the transitional requirements of such standard. Since the change in accounting policy only impacts presentation and disclosure, there is no impact on earnings per share. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. An operating segment’s operating results are reviewed regularly by the Board of Directors to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the Board of Directors include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill.

52

Parkway Holdings Limited

Annual Report 2009

Joint ventures Joint ventures are those entities over whose activities the Group has joint control. except as explained in note 2. The accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Group. 53 .FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 2 BASIS OF PREPARATION (cont’d) 2. which addresses changes in accounting policies. 3 SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these financial statements. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. the Group states its investment properties at fair values and changes in fair values are recognised in the income statement. Pursuant to the disposal of the Group’s hospitals and medical suite units in Singapore to ParkwayLife REIT in August 2007. 3.1 Basis of consolidation Business combinations Business combinations are accounted for under the purchase method. plus costs directly attributable to the acquisition. the directors of the Company have considered it more appropriate to align the Group’s accounting policy to account for its investment properties under the fair value model prescribed by FRS 40 Investment Property rather than the cost model. Changes in Accounting Estimates and Errors. the Group adopted FRS 40 Investment Property when it became effective on 1 January 2007 and opted to account for its investment properties using the cost model. the Group stated its investment properties at cost less accumulated depreciation and impairment losses. The Group adopted this change in accounting policy with effect from 1 January 2009. equity instruments issued and liabilities incurred or assumed at the date of exchange. Under the cost model. Adjustments have been made to the financial statements of joint ventures to align their accounting policies with those adopted by the Group. established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. Joint ventures are accounted for using proportionate consolidation. The cost of an acquisition is measured at the fair value of the assets given.5 Changes in accounting policies (cont’d) Valuation of investment properties In the year ended 31 December 2007. Certain comparative amounts have been reclassified to conform with the current year’s presentation (see note 35). The change in accounting policy has been applied retrospectively in accordance with the provisions of FRS 8 Accounting Policies. and have been applied consistently by Group entities. As ParkwayLife REIT accounts for its investment properties at fair value. The financial statements of joint ventures are proportionately consolidated from the date that joint control commences until the date that joint control ceases. the Group’s investment properties are now entirely held through its interests in ParkwayLife REIT. Under the fair value model. Subsidiaries Subsidiaries are entities controlled by the Group. with comparatives being restated (see note 35).5.

and any unrealised income or expenses arising from intra-group transactions.2 Foreign currency Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the exchange rate at the date of the transaction. but not control. which are recognised in other comprehensive income. Foreign operations The assets and liabilities of foreign operations. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group’s interest in the investee. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity. are translated to Singapore dollars at exchange rates at the reporting date. associates and jointly controlled operations Investments in subsidiaries. associates and joint ventures are stated in the Company’s balance sheet at cost less accumulated impairment losses. but only to the extent that there is no evidence of impairment. adjusted for effective interest and payments during the period. 54 Parkway Holdings Limited Annual Report 2009 . are translated to Singapore dollars at exchange rates at the dates of the transactions. the carrying amount of that interest (including any long-term investments) is reduced to zero and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the associate. Foreign currency differences arising on retranslation are recognised in profit or loss. 3. from the date that significant influence commences until the date that significant influence ceases. Accounting for subsidiaries.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. The consolidated financial statements include the Group’s share of the income. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period. The income and expenses of foreign operations. Unrealised losses are eliminated in the same way as unrealised gains. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. are eliminated in preparing the consolidated financial statements. over their financial and operating policies. a financial liability designated as hedges of the net investment in a foreign operation (see below) or qualifying cash flow hedges. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.1 Basis of consolidation (cont’d) Associates Associates are those entities in which the Group has significant influence. Transactions eliminated on consolidation Intra-group balances and transactions. including goodwill and fair value adjustments arising on acquisition. Associates are accounted for using the equity method. excluding foreign operations in hyperinflationary economies. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at the reporting date. except for differences arising on the retranslation of available-for-sale equity instruments. When the Group’s share of losses exceeds its interest in an associate. and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period. expenses and equity movements of associates. after adjustments to align the accounting policies with those of the Group.

Held-to-maturity financial assets If the Group has the positive intent and ability to hold debt securities to maturity. and changes therein are recognised in profit or loss. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability. Financial assets are designated at fair value through profit or loss if the Group manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Group’s documented risk management or investment strategy. Financial assets at fair value through profit or loss A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. 55 . The Group has the following non-derivative financial assets: investments in equity and debt securities. then such financial assets are classified as held-to-maturity. in part or in full.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. Financial assets at fair value through profit or loss are measured at fair value. When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs. and only when. foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income.2 Foreign currency (cont’d) Foreign operations (cont’d) Foreign currency differences are recognised in other comprehensive income.3 Financial instruments Non-derivative financial assets The Group initially recognises loans and receivables and deposits on the date that they are originated. attributable transaction costs are recognised in profit or loss as incurred. Upon initial recognition. and are presented within equity in the foreign currency translation reserve. or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Subsequent to initial recognition held-to-maturity financial assets are measured at amortised cost using the effective interest method. When a foreign operation is disposed of. trade and other receivables and cash and cash equivalents. Financial assets and liabilities are offset and the net amount presented in the balance sheet when. less any impairment losses. the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire. 3. the relevant amount in the foreign currency translation reserve is transferred to profit or loss as part of the profit or loss on disposal.

Financial assets and liabilities are offset and the net amount presented in the balance sheet when. Subsequent to initial recognition. Subsequent to initial recognition. net of any tax effects. When an investment is derecognised. net of any tax effects. the amount of the consideration paid. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale and that are not classified in any of the previous categories. other than impairment losses (see note 3. and only when. they are measured at fair value and changes therein. is presented as a deduction from equity. Subsequent to initial recognition. 56 Parkway Holdings Limited Annual Report 2009 . Share capital Ordinary shares Ordinary shares are classified as equity. Cash and cash equivalents comprise cash and bank balances and deposits with financial institution. The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expire. Non-derivative financial liabilities The Group initially recognises debt securities issued and subordinated liabilities on the date that they are originated. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity. sold or cancelled. The Group’s investments in equity securities and debt securities are classified as available-for-sale financial assets. are recognised in other comprehensive income and presented within equity in the fair value reserve.2).3 Financial instruments (cont’d) Non-derivative financial assets (cont’d) Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Where such shares are subsequently reissued.10) and foreign currency differences on available-for-sale monetary items (see note 3. No gain or loss is recognised in the profit or loss. Such assets are recognised initially at fair value plus any directly attributable transaction costs. including directly attributable costs. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the cash flow statement. the cumulative gain or loss in other comprehensive income is transferred to profit or loss.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Group has the following non-derivative financial liabilities: financial liabilities and trade and other payables. less any impairment losses. the consideration received is recognised as a change in equity. When share capital recognised as equity is repurchased (treasury shares). these financial liabilities are measured at amortised cost using the effective interest method. All other financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. loans and receivables are measured at amortised cost using the effective interest method.

Cost includes expenditure that is directly attributable to the acquisition of the asset. plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property. and are recognised net within other income in profit or loss. plant and equipment until construction or development is complete. or other amount substituted for cost. plant and equipment Recognition and measurement Items of property. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. they are accounted for as separate items (major components) of property. Property that is being constructed for future use as investment property is accounted for at fair value. plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group. When revalued assets are sold. the amounts included in the revaluation reserve are transferred to retained earnings.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. The cost of self-constructed assets includes the cost of materials and direct labour. plant and equipment have different useful lives. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property. The carrying amount of the replaced part is derecognised. since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. When parts of an item of property. 57 . Depreciation Depreciation is calculated over the depreciable amount. and its cost can be measured reliably. plant and equipment are recognised in the income statement as incurred. plant and equipment. Subsequent costs The cost of replacing part of an item of property. the costs of dismantling and removing the items and restoring the site on which they are located and capitalised borrowing costs. plant and equipment. Cost also may include transfers from other comprehensive income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property.4 Property. at which time it is reclassified as investment property and measures at fair value. less its residual value. any other costs directly attributable to bringing the asset to a working condition for its intended use. plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Property that is being constructed for future use as investment property is accounted for as property. which is the cost of an asset. plant and equipment. The costs of the day-to-day servicing of property. plant and equipment. Gains and losses on disposal of an item of property.

Goodwill arising on the acquisition of subsidiaries is presented in intangible assets.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. the cost and accumulated depreciation and impairment losses are retained in the financial statements until they are no longer in use. Goodwill was stated at cost from the date of initial recognition and amortised over its estimated useful life of 20 years. fittings and equipment Motor vehicles remaining term of the lease 2% 2% 4% to 331/3% 62/3% to 331/3% 20% No depreciation is provided on freehold land and construction-in-progress. as described in note 3. plant and equipment (cont’d) Depreciation (cont’d) The estimated useful lives for the current and comparative periods are as follows: Leasehold land Freehold buildings Leasehold buildings Renovation and improvements Hospital and medical equipment. 58 Parkway Holdings Limited Annual Report 2009 . Goodwill arising on the acquisition of associates and joint ventures is presented together with investments in associates and joint ventures. and furniture. 3. Acquisitions occurring between 1 January 2001 and 1 January 2005 Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets and liabilities of the acquiree. joint ventures and associates.4 Property. In respect of fully depreciated or impaired assets. Negative goodwill was derecognised by crediting retained profits on 1 January 2005. On 1 January 2005. This remaining goodwill balance is subject to testing for impairment. Goodwill and negative goodwill on acquisitions were written off against retained profits in the year of acquisition. Acquisitions prior to 1 January 2001 Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets and liabilities of the acquiree. Depreciation methods. the Group discontinued amortisation of this goodwill. Goodwill and negative goodwill that have previously been taken to reserves are not taken to the income statement when (a) the business is disposed of or (b) the goodwill is impaired.10. useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.5 Intangible assets Goodwill Goodwill and negative goodwill arise on the acquisition of subsidiaries.

Research and development Expenditure on research activities. Other intangible assets Other intangible assets that are acquired by the Group. and tested for impairment. Goodwill is measured at cost less accumulated impairment losses. future economic benefits are probable. 59 . Land use rights are stated at cost less accumulated amortisation and impairment losses. Acquisitions of minority interest Goodwill arising on the acquisition of a minority interest in a subsidiary represents the excess of the cost of the additional investment over the carrying amount of the net assets acquired at the date of exchange. Land use rights Leases of land under which the lessor has not transferred all the risks and benefits of ownership are classified as operating leases.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.5 Intangible assets (cont’d) Goodwill (cont’d) Acquisitions on or after 1 January 2005 Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets. Negative goodwill is recognised immediately in the income statement. liabilities and contingent liabilities of the acquiree. Other development expenditure is recognised in profit or loss as incurred. Amortisation is charged on a straight-line basis over the lease term. the development costs is amortised on a straight-line basis over the estimated useful life of 5 years and assessed for impairment whenever there is an indication that the intangible asset may be impaired.10. direct labour. is recognised in profit or loss as incurred. are measured at cost less accumulated amortisation and impairment losses. the product or process is technically and commercially feasible. Goodwill arising on the acquisition of associates and joint ventures is presented together with investments in associates and joint ventures. Such intangible assets are tested for impairment annually or as and when indicators of impairment are identified as described in note 3. which have finite useful lives. undertaken with the prospect of gaining new scientific or technical knowledge and understanding. The carrying value of development costs is reviewed for impairment annually when the asset is not yet in use or more frequently when an indication of impairment arises during the reporting year. Other intangible assets are amortised in the income statement on a straight-line basis over their estimated useful lives of 6 to 20 years. Development expenditure is capitalised only if development costs can be measured reliably. Upon completion. and capitalised borrowing costs. Goodwill arising on the acquisition of subsidiaries is presented in intangible assets. overhead costs that are directly attributable to preparing the asset for its intended use. Other intangible assets that have indefinite lives or that are not available for use are stated at cost less impairment losses. Development activities involve a plan or design for the production of new or substantially improved products and processes. and the Group intends to and has sufficient resources to complete development and to use or sell the asset. The expenditure capitalised includes the cost of materials. from the date on which they are available for use.

Cost is calculated using the weighted average cost formula and comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. but not for sale in the ordinary course of business. The cost of property under development comprises specifically identified costs.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. Investment property held under an operating lease is recognised in the Group’s balance sheet at its fair value. are stated at the lower of cost and net realisable value. Other leases are operating leases and. use in the production or supply of goods or services. Net realisable value represents the estimated selling price less costs to be incurred in selling the property. 3. Upon initial recognition.7 Development property Development property is stated at the lower of cost plus. When the use of a property changes such that it is reclassified as property. except for investment property. or for administrative purposes. Due allowance is made for all damaged. arising from an increase in net realisable value. Investment property is measured at fair value. 60 Parkway Holdings Limited Annual Report 2009 . the leased assets are not recognised in the Group’s balance sheet. and estimated net realisable value.6 Investment property Investment property is property held either to earn rental income or for capital appreciation or for both. its fair value at the date of reclassification becomes its cost for subsequent accounting. including acquisition costs. borrowing costs and other related expenditure.8 Leased assets Leases in which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. development expenditure. Borrowing costs payable on loans funding a development property are also capitalised. the asset is accounted for in accordance with the accounting policy applicable to that asset. with any change therein recognised in profit or loss. as part of the cost of the development property until the completion of development. net of progress billings. the carrying amount of those inventories is recognised as an expense in the period in which the related revenue is recognised. The amount of any allowance for write-down of inventories to net realisable value and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. expired and slow moving items. When inventories are sold. where appropriate. hospital and surgical supplies. 3. 3. plant and equipment. Subsequent to initial recognition. The amount of any reversal of any allowance for write-down of inventories. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.9 Inventories Inventories comprising mainly pharmacy. a portion of the attributable profit. on a specific identification basis. the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. restructuring of an amount due to the Group on terms that the Group would not consider otherwise. Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor. in a subsequent period. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset. 61 . for an investment in an equity security. any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income. and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. The cumulative loss that is removed from other comprehensive income and recognised in profit or loss is the difference between the acquisition cost. the disappearance of an active market for a security. In assessing collective impairment. to profit or loss.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. In addition. All individually significant receivables and held-to-maturity investment securities found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. the decrease in impairment loss is reversed through profit or loss. net of any principal repayment and amortisation. If. and the current fair value. and presented in the fair value reserve in equity. Changes in impairment attributable to time value are reflected as a component of interest income. Interest on the impaired asset continues to be recognised through the unwinding of the discount. the fair value of an impaired available-for-sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease. The Group considers evidence of impairment for receivables and held-to-maturity investment securities at both a specific asset and collective level. However. with the amount of the reversal recognised in profit or loss.10 Impairment Financial assets (including receivables) A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. timing of recoveries and the amount of loss incurred. then the impairment loss is reversed. Impairment losses on available-for-sale investment securities are recognised by transferring the cumulative loss that has been recognised in other comprehensive income. less any impairment loss previously recognised in profit or loss. indications that a debtor or issuer will enter bankruptcy. Receivables and held-to-maturity investment securities that are not individually significant are collectively assessed for impairment by grouping together receivables and held-to-maturity investment securities with similar risk characteristics. the Group uses historical trends of the probability of default. Losses are recognised in profit or loss and reflected in an allowance account against receivables. adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. All individually significant receivables and held-to-maturity investment securities are assessed for specific impairment.

A provision is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In assessing value in use. Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. If any such indication exists. For goodwill. net of depreciation or amortisation. CGUs to which goodwill has been allocated are aggregated so that the level at which impairment is tested reflects the lowest level at which goodwill is monitored for internal reporting purposes. then the asset’s recoverable amount is estimated. 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. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. or CGU”). An impairment loss in respect of goodwill is not reversed.10 Impairment (cont’d) Non-financial assets The carrying amounts of the Group’s non-financial assets. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. for the purposes of goodwill impairment testing. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination. In respect of other assets. if no impairment loss had been recognised.11 Employee benefits Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit. are reviewed at each reporting date to determine whether there is any indication of impairment. other than inventories and deferred tax assets. the recoverable amount is estimated each year at the same time. Subject to an operating segment ceiling test. 62 Parkway Holdings Limited Annual Report 2009 . For the purpose of impairment testing. 3. and intangible assets that have indefinite useful lives or that are not yet available for use.

Contingent rentals are recognised as income in the accounting period in which they are earned. Rental income Rental income receivable under operating leases is recognised in the income statement on a straight-line basis over the term of the lease. 63 . and it is probable that an outflow of economic benefits will be required to settle the obligation. At each balance sheet date. The fair value of these equity instruments granted is recognised as an expense with a corresponding increase in equity. or a combination of both when certain prescribed performance targets are met.13 Revenue recognition Performance of services Revenue from the performance of services is recognised on the completion of services rendered. 3. It recognises the impact of the revision of original estimates in the expense and in a corresponding adjustment to equity over the remaining vesting period. which in the case of quoted securities is the ex-dividend date. the proceeds received net of any directly attributable transactions costs are credited to share capital when the options are exercised. Interest income Interest income from bank deposits and debt securities is recognised as it accrues. Lease incentives granted are recognised as an integral part of the total rental income to be received. The unwinding of the discount is recognised as finance cost. 3.12 Provisions A provision is recognised if. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Dividends Dividend income is recognised on the date that the shareholder’s right to receive payment is established. using the effective interest method. the Group has a present legal or constructive obligation that can be estimated reliably. For share options granted.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. The fair value is measured at grant date and spread over the period during which the holders become unconditionally entitled to the equity instruments.11 Employee benefits (cont’d) Share-based payments The share option programme allows the Group employees and non-executive directors to acquire shares of the Company while the performance share plan awards eligible employees and non-executive directors of the Group with fully paid up ordinary shares of the Company or cash in lieu of ordinary shares. Jobs Credit Scheme Cash grants received from the government in relation to the Jobs Credit Scheme are recognised as income upon receipt. as a result of a past event. the Company revises its estimates of the number of equity instruments that are expected to vest.

which in the case of construction of property. over the term of the lease.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.15 Finance costs Finance costs comprise interest expense on borrowings. the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the Group’s incremental borrowing rate. using tax rates enacted or substantively enacted at the reporting date.14 Lease payments Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business combination. an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. finance lease liabilities and bonds. Determining whether an arrangement contains a lease At inception of an arrangement. At inception or upon reassessment of the arrangement. 64 Parkway Holdings Limited Annual Report 2009 . and any adjustment to tax payable in respect of previous years. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed. the Group determines whether such an arrangement is or contains a lease. If the Group concludes for a finance lease that it is impracticable to separate the payments reliably. A specific asset is the subject of a lease if fulfilment of the arrangement is dependent on the use of that specified asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. Lease incentives received are recognised as an integral part of the total lease expense. An arrangement conveys the right to use the asset if the arrangement conveys to the Group the right to control the use of the underlying asset. the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. amortisation of borrowings transaction costs and discount on bonds. bank charges and net losses on financial derivatives that are recognised in the income statement. All borrowing costs are recognised in the income statement using the effective interest method. or items recognised directly in equity or in other comprehensive income. construction or production of an asset which necessarily takes a substantial period of time to be prepared for its intended use or sale. 3. Subsequently. upon receipt of Temporary Occupation Permit issued by the relevant authority. 3. Current tax is the expected tax payable or receivable on the taxable income or loss for the year. Capitalisation of borrowing costs is discontinued when substantially all the activities necessary to prepare the asset for its intended use or sale are completed. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.16 Income tax Income tax expense comprises current and deferred tax. except to the extent that they are capitalised as being directly attributable to the acquisition.

65 . and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. for the effects of all dilutive potential ordinary shares. and for which discrete financial information is available. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.16 Income tax (cont’d) Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. adjusted for own shares held. deferred tax is not recognised for taxable temporary differences arising on the initial recognition of goodwill. adjusted for own shares held. or on different tax entities. but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. None of these will have an effect on the financial statements of the Group. including revenues and expenses that relate to transactions with any of the Group’s other components. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss. amendments to standards and interpretations that are not yet effective for the year ended 31 December 2009 have not been applied in preparing these financial statements. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding. All operating segments’ operating results are reviewed regularly by the Group’s Board of Directors to make decisions about resources to be allocated to the segment and assess its performance. to the extent that it is probable that future taxable profits will be available against which they can be utilised.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 3 SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3. based on the laws that have been enacted or substantively enacted by the reporting date.19 New standards and interpretations not yet adopted New standards. 3. and they relate to income taxes levied by the same tax authority on the same taxable entity. A deferred tax asset is recognised for unused tax losses.17 Earnings per share The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. tax credits and deductible temporary differences. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse. 3.18 Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses. In addition. 3. which comprise share options granted to employees.

677 9.380 1.674 87.285 88.635 – (5.107 27 4.829 (5.355.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 4 PROPERTY.064 27 28 – – (256) 293 – (1.552 52.779 (331.853 – – (455) (58) 14.145 111 – – (623) 7.366.645 66 Parkway Holdings Limited Annual Report 2009 .285.026. PLANT AND EqUIPMENT – GROUP Note Hospital land and buildings Freehold Leasehold $’000 $’000 Cost At 1 January 2008 Additions Effects of proportionate consolidation on acquisition of joint venture Disposals/Write off Transfers Translation differences on consolidation At 31 December 2008 Additions Effects of proportionate consolidation on acquisition of joint venture Assets disposed on sale of subsidiary Disposals/Write off Transfers Transfer to development property Translation differences on consolidation At 31 December 2009 Accumulated depreciation and impairment losses At 1 January 2008 Depreciation charge for the year Effects of proportionate consolidation on acquisition of joint venture Disposals/Write off Translation differences on consolidation At 31 December 2008 Depreciation charge for the year Effects of proportionate consolidation on acquisition of joint venture Assets disposed on sale of subsidiary Disposals/Write off Translation differences on consolidation At 31 December 2009 Carrying amount At 1 January 2008 At 31 December 2008 At 31 December 2009 60.546) 100.885 – 16 (2.723 1.633 27 32.535 4.172) 14.003 1.206 3.912 – (899) (684) 10.383 75.665 4.929 1.076) 1.520 11 8.383) 103.875 67.610 1.537 – (267) 13.831 8.041.435 27 28 – – (94) (169) 14.241) (651) 1.

885 (6.554 3 (154) (415) (210) 18.258 67 .140 2.845) 411.452 1. fittings and equipment $’000 Motor vehicles $’000 Total $’000 16.327 101.165 1.373.858 – (1.295 19.255 1.184 15.634 (12.912) 390.422 2.095) (4.696.625 290.218) 272.752) – (15.538) 22.076 28.281 – – (3.256 135.416 – (2.407 (763) (20.032) 294.173 1.869 359.108 1.677) (1.968 38.303) (23.185) (4.123 3.440 (925) (26.022 16.459 139.388 2.495 683 67 (495) – (114) 4.944) 260 95.617 33.188 10.677) 323.091 255.027) 92 16.065 21.869 (15.212 (15.857 (544) (17.656.240) (999) 57.463) (5.501 66.501 57.567 1.876 (698) (18.955) (28.718 1.105) 250.968 221.186) (1.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 Constructionin-progress $’000 Renovation and improvements $’000 Hospital and medical equipment and furniture.883 – – – – – – – – – – – – 16.256 545.917 11.590 3.327 95.132 137.636 222 19 – (603) – – (18) 4.301 14.928 618 41 (442) (68) 3.597) 1.332 50.774 3.668) (30.327 139.562) 1.510 50 31.220) 6.559 1.570 14 (162) (393) 25 – (373) 40.083 48.394.077 621 16 – (527) (22) 3.554 4.010) 1.081) – (360.821 (24.368 – (1.468 – (2.301 28.950.344 43.901 14.597 17.

035.111.309.000 (2008: $1.000 (2008: $104.000) in respect of assets held under finance leases.86% to 3.305. The cost of acquisition of the land was $1. plant and equipment with carrying value amounting to $101. Property.000 (2008: $24. 68 Parkway Holdings Limited Annual Report 2009 .07%) per annum.000 (2008: $7. The Group commenced construction of the hospital and medical centre in 2008.000 (including stamp duty).544.000) have been mortgaged to financial institutions for credit facilities granted to certain joint ventures.315.581. plant and equipment includes amounts totalling $5.000) have been capitalised in construction-in-progress at rates ranging from 1. borrowing costs of the Group amounting to $27.174.903. construction costs amounting to $27.000 (2008: $6.000) have been pledged to a syndicate of banks for a loan facility granted to the Group (see note 19).29% (2008: 1. The leasehold land and developments thereon with a carrying amount of $1.240. The carrying amount of property.000) was incurred and capitalised as construction-in-progress. the Group acquired a 99-year leasehold land at Novena Terrace/Irrawaddy Road with the intention of constructing a hospital and medical centre on the land.567.613.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 4 PROPERTY. During the year.283. During the year.49% to 3.857. PLANT AND EqUIPMENT – GROUP (cont’d) In 2008.

049 205.106 7.674 7.133 – – – – – – – – 173.111 – 50.605 286.455 213.257 278.151 – (3.187 (453) 31.457 391 (5.331) 304.979 6.725 50.175 – – (401) 46.032 – – (997) 51.424 27 7.151 641 (4.049 – – 53.653 46.535 226.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 5 INTANGIBLE ASSETS – GROUP Goodwill on consolidation $’000 Land use Development rights costs $’000 $’000 Other intangibles $’000 Note Total $’000 Cost At 1 January 2008 Effect of proportionate consolidation on acquisition of joint venture Additions Additions – internally developed Translation differences on consolidation At 31 December 2008 Effect of proportionate consolidation on acquisition of joint venture Effect of acquisition of additional interest in subsidiaries Additions – internally developed Translation differences on consolidation At 31 December 2009 Accumulated amortisation and impairment losses At 1 January 2008 Amortisation charge for the year Translation differences on consolidation At 31 December 2008 Amortisation charge for the year Impairment loss Translation differences on consolidation At 31 December 2009 Carrying amount At 1 January 2008 At 31 December 2008 At 31 December 2009 173.653 – – 391 – 391 – – – (864) 52.270 12.424 – – – 2.564 6.107 20.236 (646) 18.252 – 641 – 1.111 211.671 32.152 7.804) 46.511) 211.556 34.569 6.826 27 2.175 – – – – – – – – – 46.252 – 5 – 5 46 – – 51 – 386 981 12.404 40.584 27 32.457 – (3.909) 310.187 (453) 31.231 (646) 18.725 – – (663) 205.979 6.678 69 .

The discount rate was estimated based on the weighted average cost of capital of the entity to which the units belong. During the year.187. the Group recognised an impairment loss of $7.098 92.000 (2008: $NIL) in respect of concessions held by its joint venture entities. The values assigned to the key assumptions represent management’s assessment of future trends in the healthcare industry and are based on both external sources and internal sources (historical data). 70 Parkway Holdings Limited Annual Report 2009 . which will end in 2011 and 2012. This impairment loss is recognised and presented in the statement of comprehensive income for the year. with a growth rate to perpetuity of 3% to 6% per annum applied to steady-state estimated earnings at the end of the explicit forecast period.483 86. • The terminal value was estimated using the perpetuity growth model. Value in use was determined by discounting the future cash flows generated from the continuing use of the unit and was based on the following key assumptions: • • • Cash flows were projected based on approved budget for 2010 and the five-year business plan. The anticipated annual revenue growth included in the cash flow projections was 3% to 14% per annum for the years 2010 to 2014. The aggregate carrying amount of goodwill allocated to each unit identified according to business segment are as follows: 2009 $’000 Hospitals Healthcare services 119.628 205. goodwill is allocated to the Group’s operating divisions which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 5 INTANGIBLE ASSETS – GROUP (cont’d) Impairment test for cash-generating units containing goodwill For the purpose of impairment testing.077 211.111 The recoverable amount of a cash-generating unit was based on its value in use. A pre-tax discount rate of 11% to 12% was applied in determining the recoverable amount of the units.175 2008 $’000 118.

200.124.949 (58.975 2008 $’000 765.607 Amounts due from subsidiaries (non-trade) Allowance for impairment loss 1.000 (2008: $NIL) in respect of its investment in Parkway Properties Pte. the Company recognised an impairment loss of $118. interest free.681.368 2. Ltd to the Company.359. in substance. 71 .569. mature on 1 January 2011. they are stated at cost less accumulated impairment losses.000 (2008: $663. a part of the Company’s net investments in the subsidiaries.909) 1.25%) per annum.773 – 765.200) 647. Ltd to reflect the reduction in its net tangible assets to an amount equivalent to its share capital following the settlement of a dividend from Parkway Properties Pte.267. The management of the parties do not expect the amounts to be repaid within the next twelve months.000 (2008: $754. The amounts due from subsidiaries are unsecured and settlement is neither planned nor likely to occur in the foreseeable future.559.760) 1.34% (2008: 1% to 3.000) interest-free loans and $744.773 1.000) loans which bear interest at between 1% to 2.684.813 During the year.265. at cost Impairment loss on investment in subsidiary 765. subject to extension at the option of the Company. Loans from subsidiaries are unsecured.040 2.417. As these amounts are.807 (118.128 (60. The amounts due from subsidiaries consist of $936.620.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES Company 2009 $’000 Unquoted equity investments.

569 – – 744.25 754.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES (cont’d) Effective interest rates and repricing analysis Effective interest rate % 2009 Amounts due from subsidiaries 2008 Amounts due from subsidiaries 1 to 3. the Group also entered into an option agreement under which the minority shareholders will grant the Group call options to acquire the remaining 30% equity interest in each of these subsidiaries for an aggregate consideration of approximately US$20.000 upon the terms and conditions set out thereon. Pursuant to the master agreement in 2008.P.000.I. The deposits will either be refunded or applied towards the purchase consideration for the additional equity interests in these subsidiaries in accordance with the terms set out in the option agreement.800. Details of subsidiaries are as follows: Place of incorporation Name of subsidiary Principal activities and business Equity interest 2009 % Parkway Properties Pte Ltd and its subsidiary: Parkway Promotions Pte Ltd Promoters and organisers of healthcare events M & P Investments Pte Ltd and its subsidiary: S.684 1 to 2.34 744. Pte Ltd Westront Pte Ltd Parkway Hospitals Singapore Pte Ltd 72 Parkway Holdings Limited Annual Report 2009 2008 % 100 Investment holding Singapore 100 Singapore 100 100 Investment holding Singapore 100 100 Dormant Investment holding Private hospitals ownership and management Singapore Singapore Singapore 100 100 100 100 100 100 . The Group completed its acquisition of the 10% equity interest in each of these subsidiaries on 1 July 2009 (see note 27).000.569 Within 1 year $’000 1 to 5 Years $’000 After 5 years $’000 Total $’000 In 2008.684 – – 754. the Group entered into a master agreement with the minority shareholders of certain subsidiaries to acquire an additional 10% equity interest in each of these subsidiaries for a consideration of US$7.

48 100 66.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES (cont’d) Place of incorporation Name of subsidiary Principal activities and business Equity interest 2009 % Parkway Trust Management Limited Parkway Investments Pte. Parkway Group Healthcare Pte Ltd and its subsidiaries: iXchange Pte Ltd Agent and administrator for managed care and related services Parkway-Healthcare (Mauritius) Ltd Shenton Insurance Pte. Ltd. Underwrite accident and healthcare insurance policies Mount Elizabeth Healthcare Holdings Ltd and its subsidiaries: Mount Elizabeth Medical Holdings Ltd and its subsidiaries: East Shore Medical Holdings Pte Ltd MENA Services Pte Ltd Mount Elizabeth Ophthalmic Investments Pte Ltd Mount Elizabeth Healthcare Services Sdn Bhd and its subsidiary: 73 Provision of laboratory services to hospitals and clinics Malaysia 100 100 Nursing agency Rental of medical equipment used for eye operations Singapore Singapore 100 66. Ltd.48 Investment holding Singapore 100 100 Investment holding Singapore 100 100 Investment holding Singapore 100 100 Singapore 100 100 Investment holding Mauritius 100 100 Singapore 100 100 Provision of management services to Parkway Life REIT Investment holding Investment holding Singapore Singapore 100 100 100 100 Singapore 100 2008 % 100 .

and its subsidiaries: Medi-Rad Associates Ltd and its subsidiary: Radiology Consultants Pte Ltd Drayson Investments Pte.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES (cont’d) Place of incorporation Name of subsidiary Principal activities and business Equity interest 2009 % Orifolio Options Sdn Bhd Shanghai Gleneagles International Medical and Surgical Center Parkway Healthtech Investments Pte Ltd and its subsidiaries: Goldlink Investments Pte. Ltd. Ltd. Provision of comprehensive diagnostic laboratory services Operation of a clinical research centre To conduct global and local clinical trials To conduct global and local clinical trials People’s Republic of China 100^^ –^^ Thailand 100^^ –^^ Singapore 100^^ –^^ Singapore 100 100 Radiology consultancy and interpretative services Investment holding Singapore 100 100 Singapore 100 100 Operation of radiology clinics Singapore 100 100 Investment holding Singapore 100 100 Investment holding Investment holding Provision of medical and healthcare services Malaysia People’s Republic of China Singapore 100 100 100 70 2008 % 100 70 74 Parkway Holdings Limited Annual Report 2009 . and its subsidiary: Parkway Laboratory Services Ltd Gleneagles CRC Pte Ltd and its subsidiaries: Gleneagles CRC (Thailand) Company Limited Gleneagles CRC (China) Pte Ltd.

FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES (cont’d) Place of incorporation Name of subsidiary Principal activities and business Equity interest 2009 % Gleneagles Clinical Research International Pte. Ltd. and its subsidiaries: Investment holding Singapore 100 100 Australia –^^ 100^^ Operation of a clinical research centre Singapore –^^ 100^^ –^^ 100^^ Operation of a clinical research centre To conduct global and local clinical trials Thailand –^^ 100^^ Singapore –^^ 100^^ Dormant Singapore 100 100 Dormant Singapore 100 100 Investment holding Singapore 100 100 Australia 100^^ –^^ Operation of a clinical research centre Singapore 100^^ 2008 % –^^ 75 . Gleneagles CRC Pty Ltd To conduct global and local clinical trials Gleneagles International Pte. Ltd. Gleneagles CRC Pty Ltd To conduct global and local clinical trials Gleneagles Medical Holdings Limited and its subsidiaries: Gleneagles Medical Centre Ltd Gleneagles Radiology Consultants Pte Ltd Gleneagles CRC Pte Ltd and its subsidiaries: Gleneagles CRC (Thailand) Company Limited Gleneagles CRC (China) Pte Ltd. To conduct global and local clinical trials People’s Republic of China Gleneagles Clinical Research International Pte. Ltd.

administrative.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES (cont’d) Place of incorporation Name of subsidiary Principal activities and business Equity interest 2009 % GEH Management Services (M) Sdn. Provision of advisory. management and consultancy services to healthcare facilities Gleneagles JPMC Sdn Bhd Management and operation of a cardiac and cardiothoracic care centre Gleneagles (Malaysia) Sdn Bhd and its subsidiary: Pulau Pinang Clinic Sdn. administrative. management and consultancy services to healthcare facilities Gleneagles Heritage Hospital Management Limited Gleneagles Pharmacy Pte Ltd Gleneagles Development Pte Ltd Developing and managing turnkey hospital projects and investment holding Gleneagles Hospital (UK) Limited and its subsidiaries: Investment holding United Kingdom 65 65 Singapore 100 100 Dormant Singapore 100 100 Dormant British Virgin Islands 75 75 Singapore 100 100 Malaysia 70 70 Investment holding Malaysia 100 100 Brunei Darussalam 75 75 Malaysia 100 2008 % 100 76 Parkway Holdings Limited Annual Report 2009 . Bhd. Bhd. Gleneagles Management Services Pte Ltd and its subsidiary: Private hospital ownership and management Provision of advisory.

testing and commissioning. procurement.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES (cont’d) Place of incorporation Name of subsidiary Principal activities and business Equity interest 2009 % Cavendish Clinic Limited Dormant United Kingdom The Heart Hospital Limited The Heart Hospital Properties Limited Wholebond Limited Dormant Under company voluntary arrangement Dormant United Kingdom United Kingdom United Kingdom Merlion Healthcare Limited Dormant United Kingdom Gleneagles Technologies Services Pte Ltd To provide consultancy services. and manage a healthcare facility Ko. Gleneagles Maritime Medical Centre (China) Limited Dormant Hong Kong 100 100 Liquidated during the year Singapore – 100 Singapore 100 100 Singapore –^ 60 Singapore 100 100 100 100 100 100 100 100 100 100 100 2008 % 100 77 . Djeng Gleneagles Pte Ltd To carry on the practice of dental surgeons and to operate dental clinics Parkway Shenton Pte Ltd and its subsidiaries: Investment holding and operation of a network of clinics and provision of comprehensive medical and surgical advisory services GMMC Maritime Medical Centre Pte. Ltd. perform equipment planning.

FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES (cont’d) Place of incorporation Name of subsidiary Principal activities and business Equity interest 2009 % Nippon Medical Care Pte Ltd Parkway Shenton International Holdings Pte. and its subsidiary: Parkway Shenton Vietnam Limited Shenton Family Medical Clinics Pte Ltd Shenton Medical Holdings Pte Ltd and its subsidiaries: Shenton Medical Centre Pte Ltd SMG Medical Group Pte. Ltd. EHS Health Screeners Pte. Ltd. Ltd and its subsidiary: Provision of medical and healthcare outpatient services People’s Republic of China 70 60 Investment holding Singapore 100 100 Liquidated during the year Singapore – 100 Dormant Singapore 100 100 Liquidated during the year Singapore – 100 To provide. Medical Resources International Pte Ltd and its subsidiaries: Shanghai Rui Xin International Healthcare Co. establish and carry on the business of clinics Investment holding Singapore 100 100 Singapore 100 100 Dormant Vietnam 100 100 Investment holding Singapore 100 100 Operation of clinics Singapore 70 2008 % 70 78 Parkway Holdings Limited Annual Report 2009 . Ltd.

Ltd Shanghai Xin Rui International Healthcare Co. Ltd and its subsidiary: Shanghai Rui Xiang Outpatient Department Co. Ltd Provision of medical and healthcare outpatient services Provision of medical and healthcare outpatient services Provision of medical and healthcare outpatient services People’s Republic of China People’s Republic of China People’s Republic of China Swiss Zone Sdn Bhd Parkway (Shanghai) Hospital Management Ltd Investment holding Provision of management and consultancy services to healthcare facilities Khubchandani Hospitals Private Limited Parkway Education Pte Ltd and its subsidiary: Parkway College of Nursing and Allied Health Pte Ltd Parkway College of Nursing and Allied Health Pte Ltd Provision of courses in nursing and allied health Singapore 100^^^ –^^^ Provision of courses in nursing and allied health Singapore –^^^ 100^^^ Investment holding Singapore 100 100 Private hospital ownership Malaysia People’s Republic of China India 50* 50* 100 100 100 100 70 60 100 100 70 60 70 2008 % 70 79 . Ltd Provision of medical and healthcare outpatient services People’s Republic of China Shanghai Rui Hong Clinic Co.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES (cont’d) Place of incorporation Name of subsidiary Principal activities and business Equity interest 2009 % Shanghai Rui Pu Outpatient Department Co.

has the ability to control the financing and operating decisions of the subsidiary. Parkway Group Healthcare Pte Ltd holds almost 100% shares in Parkway College of Nursing and Allied Health Pte Ltd pursuant to an internal restructuring during the year. Ltd. For this purpose. 80 Parkway Holdings Limited Annual Report 2009 . by virtue of the existence of currently exercisable potential voting rights. a subsidiary is considered significant as defined under the Singapore Exchange Securities Trading Limited (SGX-ST) Listing Manual if its net tangible assets represent 20% or more of the Group’s consolidated net tangible assets. Shares were transferred from Gleneagles Medical Holdings Limited to Parkway Group Healthcare Pte Ltd pursuant to an internal restructuring during the year. Parkway Education Pte Ltd holds only 1 share in Parkway College of Nursing and Allied Health Pte Ltd in both 2009 and 2008. Notwithstanding that the equity interest is not more than 50%. or if its pre-tax profits account for 20% or more of the Group’s consolidated pre-tax profits. on the basis that the Company. Ltd. Other member firms of KPMG International are auditors of significant foreign-incorporated subsidiaries. the Company has accounted for Khubchandani Hospitals Private Limited as a subsidiary in accordance with FRS 27 Consolidated and Separate Financial Statements.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 6 INTERESTS IN SUBSIDIARIES (cont’d) Place of incorporation Name of subsidiary Principal activities and business Equity interest 2009 % 2008 % Parkway Novena Holdings Pte. ^^^ * KPMG LLP Singapore is the auditor of all Singapore-incorporated subsidiaries. Medical centre construction and development Singapore 100 100 ^ ^^ Disposed during the year. Investment holding Singapore 100 100 Hospital construction and development Singapore 100 100 Parkway Irrawaddy Pte. and its subsidiaries: Parkway Novena Pte. Ltd.

117 (4.034 2007 $’000 (Restated) – 205. As these amounts are. Details of associates are set out in note 32.104 Amounts due from associates (mainly non-trade) Allowance for impairment loss 5.110) 205.382 – – – – – – – 198.129 (6. and settlement is neither planned nor likely to occur in the foreseeable future.104 210. As these amounts are. The amounts due to associates include amounts denominated primarily in Australian dollars which are unsecured and interest-free. in substance.038) 2. (9.608) (4.034 198. a return of equity by the associates to the Group. they are stated at cost.372 Amounts due to associates (mainly non-trade) (7.544) (3. a part of the Group’s net investments in the associates.539) 9.019 8.410 (3.845 205.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 7 INTERESTS IN ASSOCIATES Group 2009 $’000 2008 $’000 (Restated) Unquoted equity shares.845 64 – 64 64 – 64 Company 2009 $’000 2008 $’000 81 .085 Group The amounts due from associates are unsecured and interest-free. in substance.432 (3. and settlement is neither planned nor likely to occur in the foreseeable future.924) 194.050) 6.069 (3.050) 5.603) (3. they are stated at cost less accumulated impairment loss.391) 205. at cost Share of net assets – 210.

342) 1.006 31.775 (56.067. it is stated at cost. 72. which is not adjusted for the percentage of ownership held by the Group.477 1.423) 2008 $’000 82 Parkway Holdings Limited Annual Report 2009 . and settlement is neither planned nor likely to occur in the foreseeable future.213.443 38. As the amount is.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 7 INTERESTS IN ASSOCIATES (cont’d) Group (cont’d) Summarised financial information on the associates.603) (283.108.438 1.925) (353.820) (226.337 41.417) (297. in substance.175.928 45. is set out below: 2009 $’000 Assets and liabilities Non-current assets Current assets Total assets Current liabilities Non-current liabilities Total liabilities Results Revenue Profit after taxation Company The amount due to an associate which is denominated in Australian dollars. a return of equity by the associate to the Company.996 61. is unsecured and interest-free.920 (55.614 1.

309) (228.943 66. in substance.317 (66.998) 2008 $’000 83 . and settlement is neither planned nor likely to occur in the foreseeable future.689) (317. As these amounts are.387 445. Details of joint ventures are set out in note 33. The following summarised financial information on the joint ventures represents the Group’s share: 2009 $’000 Assets and liabilities Non-current assets Current assets Total assets Current liabilities Non-current liabilities Total liabilities Results Revenue Expenses Profit after taxation Group’s share of joint ventures’ capital commitments 219.247) 341.930 84.941 (196. in substance. a part of the joint venture partners’ net investments in the joint ventures.754 360.357) 23. and settlement is neither planned nor likely to occur in the foreseeable future.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 8 BALANCES WITH JOINT VENTURES AND JOINT VENTURE PARTNERS – GROUP Amounts due from joint ventures The amounts due from joint ventures are unsecured and interest-free.394) (306.962 100. a part of the Group’s net investments in these joint ventures.853) (239.363 442.325 (89. Amounts due to joint venture partners The non-current amounts due to joint venture partners are unsecured and interest-free.310 210.274) 13. they are stated at cost. As these amounts are.217 (196. they are stated at cost less accumulated impairment loss.584 51.

84 Parkway Holdings Limited Annual Report 2009 .454 52 12.565 (4.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 9 OTHER FINANCIAL ASSETS Group 2009 $’000 Non-current investments: Club memberships Singapore Government debt securities held to maturity Available-for-sale quoted equity securities Deposit for option to purchase interest in an investment Financial derivatives 2.711 4.530) 35 19.140 14.013) – 52 Group 2009 Current investments: Available-for-sale unquoted other investments 597 356 2008 – 1.801 – – 19.013) – – – 10.122 – 5.565 (4.884 – 52 52 1. the range of reasonable fair value estimates is significant and the probabilities of the various estimates cannot be reasonably assessed.530) 35 12.571 – – – – 138 138 – – 2008 $’000 2009 $’000 Company 2008 $’000 Non-current investments in available-for-sale unquoted equity securities are stated at cost as their fair values cannot be reliably measured in view that they do not have a quoted market price in an active market.013 (1.013 (1.628 Available-for-sale unquoted equity securities Impairment losses 4.

922. the Group divested its interest in Auric Pacific Group Ltd for a consideration of $12. the Group recognised an impairment loss of $2.000. During the financial year ended 31 December 2009.e.571.571 – – 14.221.e. The different levels have been defined as follows: • • • 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. non-current investments in available-for-sale quoted equity securities include a 22% effective equity interest held in Auric Pacific Group Ltd with a carrying value of $14.199. Fair value hierarchy The table below analyses financial instruments carried at fair value. During the year. as prices) or indirectly (i.571 – 52 – 52 Level 2 $’000 Level 3 $’000 Total $’000 85 .000) on its available-for-sale quoted equity securities in accordance with FRS 39 Financial Instruments: Recognition and Measurement. derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) Level 1 $’000 Group 31 December 2009 Financial derivatives 31 December 2008 Available-for-sale quoted equity securities Company 31 December 2009 Financial derivatives – 52 – 52 14. either directly (i. The investment had been accounted for as a non-current investment as the Group does not have significant influence over the financial and operational policies of the investee..000 (2008: $16.000. by valuation method.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 9 OTHER FINANCIAL ASSETS (cont’d) In 2008..

FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 10 DEFERRED TAX (ASSETS)/LIABILITIES Movements in deferred tax assets and liabilities of the Group (prior to offsetting of balances) during the year are as follows: Effect of proportionate consolidation on acquisition At 1 Jan 2008 $’000 Group Deferred tax assets Trade receivables Interests in associates Tax value of unutilised tax losses carried forward Tax value of unabsorbed capital allowances carried forward Other provisions (17) (388) (8.803) (1.694) 91 (17) (1.805) 2 29 32 (110) (883) (9.054 6 26.195) (131) (6.739 1.739 – – 1.695 97 27.739 1.181) of joint venture (note 27) $’000 Charged/ (Credited) to income (note 25) $’000 Translation At 31 Dec 2008 $’000 consolidation $’000 statement differences on 86 Parkway Holdings Limited Annual Report 2009 .861 – – – (95) (524) (1.030) Deferred tax liabilities Property.313) – (876) (6) (2.017 1.181) – – (310) – 7 – (434) (6. plant and equipment Intangible assets Other receivables 20.047 Net deferred tax liabilities 18.664 17.987 5.872 3.822) (440) 335 – (105) (73) 23.586 (1.

861 – – – – – – (29) – – (29) (29) Charged to income statement $’000 160 – (107) – (172) (119) (677) (203) – (880) (999) 5 – 249 2 17 273 (42) (106) – (148) 125 Charged to income statement $’000 (269) (6.038) (9.613 Company 2009 2008 $’000 $’000 – 145 – 97 87 .124 3.181) (2. plant and equipment Intangible assets Other receivables Net deferred tax liabilities Effect of disposal of subsidiary (note 28) $’000 At 31 Dec 2009 $’000 (434) (6.649) 23.195) (110) (883) (9.397 2008 $’000 (8.803) 23.181) (2.439) 25.053) (108) (1.752) 26.664 17.872 3.386 97 26.607 16.695 97 27.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 10 DEFERRED TAX (ASSETS)/LIABILITIES (cont’d) Charged/ (Credited) to income Translation statement differences on (note 25) consolidation $’000 $’000 At 1 Jan 2009 $’000 Group Deferred tax assets Trade receivables Interests in associates Tax value of unutilised tax losses carried forward Tax value of unabsorbed capital allowances carried forward Other provisions Deferred tax liabilities Property.958 At 1 Jan 2008 $’000 Company Deferred tax liability Other receivables At 31 Dec 2008 $’000 At 31 Dec 2009 $’000 6 91 97 48 145 The amounts determined after appropriate offsetting are included in the balance sheet as follows: Group 2009 $’000 Deferred tax assets Deferred tax liabilities (8.

544 2008 $’000 115.378 Company 2009 $’000 – 914 914 8 922 2008 $’000 – 601 601 4 605 88 Parkway Holdings Limited Annual Report 2009 .000) have been pledged as security for bank overdraft facilities granted to certain joint ventures as disclosed in note 19.848 3. at cost At 31 December – 360.185.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 11 DEVELOPMENT PROPERTY – GROUP 2009 $’000 At 1 January Transfer from property.341 99. Borrowing costs incurred amounting to $9.185 360.722 Inventories with carrying value of $479.192 137.185.507 11.185 2008 $’000 – – – During the year.367 (26) 22.341 2008 $’000 18.000 have been capitalised as cost of the development property.186 4.696 103.000 (2008: $466.764 (42) 18.000 as development property. The development property thereon with a carrying amount of $360. 13 TRADE AND OTHER RECEIVABLES Group 2009 Note Trade receivables Deposits and other receivables Loans and receivables Prepayments 14 15 $’000 88. plant and equipment. 12 INVENTORIES – GROUP 2009 $’000 Inventories Allowance for inventory obsolescence 22.000 has been pledged to a syndicate of banks for a loan facility granted to the Group (see note 19).543 17. management has designated property that is intended for sale to medical specialists with a carrying value of $360.643 133.705.

594 89 .330) 88.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 14 TRADE RECEIVABLES – GROUP 2009 $’000 Trade receivables Allowance for impairment loss 117.671 12.763 8.468 4. management believes that no additional credit risk beyond amounts provided for collection losses is inherent in the Group’s trade receivables.051) 115.536 117.651 51.543 The Group’s primary exposure to credit risk arises through its trade receivables. Due to these factors.943 18.507 2008 $’000 173.594 (58.399 42.110 173.837 2008 $’000 58.837 (29.165 7.725 43. Concentration of credit risk relating to trade receivables is limited and the Group’s historical experience in the collection of accounts receivable falls within the recorded allowances. The maximum exposure to credit risk for trade receivables at the reporting date (by geographical distribution) is: 2009 $’000 Singapore North Asia South Asia and Middle East South East Asia Others 43.

Specific impairment allowance is provided on a case-by-case basis depending on the circumstances.207.397 36.051 2008 $’000 16.051 58.330 22.414.000 in respect of certain specific past due receivables notwithstanding these receivables are backed by letters of guarantee.393 29. In 2008.155 (17. A final settlement was reached during 2009 and the Group reversed the excess allowance amounting to $17.391) 733 – (257) 58.051 losses 2009 $’000 Gross 2008 $’000 Allowance for impairment losses 2008 $’000 The movements in allowance for impairment loss in respect of trade receivables during the year are as follows: 2009 $’000 At 1 January Impairment loss recognised/(reversed): – allowance based on specific and collective assessment – other specific allowance Impairment loss written off Effect of proportionate consolidation on acquisition of joint venture Disposal of subsidiary Translation differences on consolidation At 31 December 15. the Group recognised an allowance for impairment of $34.664 32.321 29.262 38.594 266 922 970 23.207) (26.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 14 TRADE RECEIVABLES – GROUP (cont’d) Impairment losses on trade receivables The ageing of trade receivables at the reporting date is: Allowance for impairment Gross 2009 $’000 Group Not past due Past due 0 – 30 days Past due 31 – 180 days Past due 181 days – 1 year Past due more than 1 year 23.000.218 6.540 20.837 79 172 2.680 31.229 58.561 117.765 10.315 The Group provides for impairment allowance in respect of trade receivables based on historical default rates.237 34.985 173.661) 165 (5) (168) 29.806 48.414 (1.330 8.144 27.438 22. 90 Parkway Holdings Limited Annual Report 2009 .

000) 12.124 4.888 95 7.777 51 13.643 Company 2009 $’000 852 2 854 60 – 60 914 2008 $’000 541 1 542 59 – 59 601 Other receivables are unsecured and interest-free.324 2008 $’000 91 . There are no significant concentrations of credit risk arising from other receivables.324 17.097 Other receivables Allowance for impairment loss 7. and are repayable within the next twelve months.932 5.671 1.244 11.511 861 3.165 3.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 15 DEPOSITS AND OTHER RECEIVABLES Group 2009 $’000 Interest receivables Sundry deposits 1.324 (1. The maximum exposure to credit risk for other receivables at the reporting date (by geographical distribution) is: 2009 $’000 Group Singapore North Asia South Asia and Middle East South East Asia Others 2.341 2008 $’000 909 4.319 13.744 942 1.096) 6.340 4.340 (1.410 5.

FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 15 DEPOSITS AND OTHER RECEIVABLES (cont’d) Impairment losses on other receivables The ageing of other receivables at the reporting date is: Impairment Gross 2009 $’000 Group Not past due Past due 0 – 30 days Past due 31 – 180 days Past due 181 days – 1 year Past due more than 1 year 4.096 2008 $’000 1.595 13.000 losses 2009 $’000 Gross 2008 $’000 Impairment losses 2008 $’000 The movements in allowance for impairment loss in respect of other receivables during the year are as follows: 2009 $’000 At 1 January Impairment loss recognised Impairment loss written off Translation differences on consolidation At 31 December 1.061 – (19) (42) 1.532 7.324 – – – – 1. Specific impairment allowance is provided on a case-by-case basis depending on the circumstances. 92 Parkway Holdings Limited Annual Report 2009 .656 350 1.582 1.340 – – – 93 1.000 111 – (15) 1.003 1.000 The Group provides for impairment allowance in respect of other receivables based on historical default rates.096 8.141 1.318 244 1.000 1.144 102 1.

612.772 542.033 8.268 Bank overdrafts (secured) Bank overdrafts (unsecured) (725) (622) (1.319 531.00 7. Bank overdrafts of $725.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 16 CASH AND CASH EqUIVALENTS Group 2009 $’000 Fixed deposits with financial institutions Cash and bank balances 529.25 – Interest rates reprice at intervals of one. 93 .612) (9.310 610.347) Fixed deposits pledged Cash and cash equivalents in Consolidated Cash Flow Statement 408.062 (1.00 3.02 to 12.30 2009 % 0.290 50.05 to 12.602) 2008 $’000 491.00 to 8.612) – (1.264 (200. plant and equipment and other assets as disclosed in note 19(b).75 to 1. three or six months or one to three years.211 390.25 – Company 2008 % 0.211 Fixed deposits with financial institutions include deposits pledged to banks and finance companies for credit facilities granted to certain subsidiaries and joint ventures.000) are secured by certain property.00 to 8. The effective interest rates per annum relating to fixed deposits with financial institutions and bank overdrafts at the balance sheet date are as follows: Group 2009 % Fixed deposits with financial institutions Bank overdrafts 0.958 80.38 to 1.000 (2008: $1.186) 2009 $’000 222.444 Company 2008 $’000 387.30 2008 % 0.000 3.411 230.

000 ordinary shares from the open market at an average price of $3.70 (2008: $3.336. with no par value: At 1 January Issue of shares under share option scheme Transferred from treasury shares on exercise of share options Transferred from treasury shares on vesting of performance shares Issue of new shares pursuant to rights issue Purchase of treasury shares At 31 December Treasury shares: At 1 January Purchase of treasury shares Utilisation for exercise of share options Utilisation for vesting of performance shares At 31 December 2.250 2.000.000 (2008: $1.188.382.000 (2008: 596.9763 per share. In 2008.127.000) – 1.614. The Company utilised 1.250 – (1.034 769.129.382.000 (596. All shares rank equally with regard to the Company’s residual assets.000) 1.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 17 SHARE CAPITAL Group and Company 2009 Number of shares Fully-paid ordinary shares. During the financial year.9763 to $2.127.750) (171.5935 per share.517.517.160 444. 25.382.000 1. the Company issued the following ordinary shares pursuant to the Parkway Share Option Scheme 2001: (i) (ii) 156.734.000 358.661.433.124 (1.750 171.750 596.250 1.70) and the loss on reissue of treasury shares of $3.250 ordinary shares issued on exercise of share options granted on 19/11/04 at $0.097. The average cost of these treasury shares amounted to $3.9763 to $2.69 which were held as treasury shares.750) treasury shares on exercise of share options under Parkway Share Option Scheme 2001 at exercise price ranging from $0.734.784 181. 94 Parkway Holdings Limited Annual Report 2009 .517. the Company repurchased 1.000) 2.5455 (2008: $0.303) per share.784 2008 Number of shares The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.000 – – – 1.250 1.614.000) has been recognised in capital reserve.716.000 ordinary shares issued on exercise of share options granted on 15/1/05 at $1.

400) (10. depreciation and amortisation (EBITDA). buy back issued shares.441) – 21. The Board seeks to maintain a balance between the higher returns that might be possible with higher level of borrowings and the advantages and security afforded by a sound capital position. The exchange fluctuation reserve of the Group comprise foreign exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from the functional currency of the Company and the exchange differences on monetary items which form part of the Group’s net investment in the foreign operations. The equity compensation reserve comprises the cumulative value of employee services received for the issue of share options and conditional award of performance shares.661) (12. the amount of dividend payment. Management aims to maintain an optimal gearing ratio of not more than six times. obtain new borrowings or sell assets to reduce borrowings.884 14.421) 2008 $’000 (1.884 The capital reserve comprise the cumulative net gain or loss on reissuance of treasury shares. The hedge reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments. The Group and the Company are in compliance with all externally imposed capital requirements for the financial years ended 31 December 2008 and 2009.066) (11. taxation.932 (10.417 (12. the Group may adjust. The fair value reserve includes the cumulative net change in the fair value of available-for-sale investments until the investment is derecognised.369 21. In order to maintain or achieve an optimal capital structure.369 Company 2008 $’000 – – – – 14. 18 OTHER RESERVES Group 2009 $’000 Capital reserve Exchange fluctuation reserve Hedge reserve Fair value reserve Equity compensation reserve (4. return capital to shareholders. 95 . Net debt is calculated as borrowings less cash and cash equivalents. issue new shares.449) – 14.244) 2009 $’000 – – – – 21.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 17 SHARE CAPITAL (cont’d) Capital management The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. There were no changes in the Group’s approach to capital management during the year. provided certain conditions are met. in light of changes in economic conditions. Gearing ratio is defined as net debt divided by earnings before interest.997) (18.

341 12. and leasehold land and buildings of certain joint ventures.755 9.221.192.890 1. interest.625 Current liabilities Secured term loans Secured short-term credit facilities Unsecured short-term credit facilities Finance lease liabilities Financial derivatives Intra-group financial guarantees 8.460 498. advantages. permits and licences arising from and in connection with the land and any development thereon.730 20.093 – 1.739 11 11.190 11.823 13.374 – 498. short-term credit facilities and term loans of certain joint ventures are secured by the following: (i) (ii) (iii) (iv) first fixed charge over freehold land.647 1 9. (ii) (iii) pledge of fixed deposits of $200.205.966 12.750 509.742 14.294 1.612 44. fixed and floating charge over assets of certain joint ventures.977 2008 $’000 2009 $’000 Company 2008 $’000 The secured SGD-denominated term loan of a subsidiary is secured by the following: (i) pledge of leasehold land located at Novena Terrace/Irrawaddy Road and all the present and future rights.977 3.755 – 497. benefits. charge over fixed deposits of certain joint ventures.755 – 498.506 4.648 508.727 676.977 11.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 19 FINANCIAL LIABILITIES Group 2009 $’000 Non-current liabilities Secured term loans Unsecured term loans Finance lease liabilities 676.739 11 509.224 – 26.067 – 1.041 11. (b) The secured RM-denominated bank overdrafts.234.000.000.177.647 1 508.067 – 57. and corporate guarantee by the Company.205.755 3.516 1.224 – 1.890 – – – – – 9.977 – 497. title.190 1. and corporate guarantee by a joint venture.403 498.727 497.565 Total financial liabilities Total borrowings Total financial derivatives Total intra-group financial guarantees Total financial liabilities (a) 1.066 1.103 497.403 – – – – – 11.449 13. 96 Parkway Holdings Limited Annual Report 2009 .410 1.178.234.

FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 19 FINANCIAL LIABILITIES (cont’d) (c) The secured INR-denominated term loans of certain joint ventures are secured by the following: (i) (ii) (iii) first mortgage and charge over all immovable and movable assets of a joint venture. and hypothecation of the current assets and second charge on the property. first charge over all movable assets of a joint venture.612 Interest 2009 $’000 Principal 2009 $’000 Payments 2008 $’000 Interest 2008 $’000 Principal 2008 $’000 Under the terms of the lease agreements.180. plant and equipment of a joint venture.824 212 1.633 6 5.509 – 5. the lenders have an option to convert the outstanding term loan not exceeding 20% of the loan amount into fully paid equity shares of the joint venture. (d) Pursuant to a debt restructuring exercise undertaken in prior years.333 215 – 427 3. if the joint venture defaults in repayment.000) as at the balance sheet date.609 228 1 457 3. 97 .906 1. no contingent rents are payable. a joint venture’s indebtedness was converted into an interest-free term loan.405 5 5.970 228 1.742 1. Finance lease liabilities The Group has obligations under finance leases that are repayable as follows: Payments 2009 $’000 Repayable: Within 1 year After 1 year but within 5 years After 5 years 3.066.294 – 4.152 3. According to the terms of debt restructuring exercise. (e) The short-term bank loan of a subsidiary is secured by corporate guarantees provided by the Company.000 (2008: $11. Intra-group guarantees Intra-group financial guarantees comprise guarantees granted by the Company to banks in respect of shortterm bank loans drawn down by certain subsidiaries totalling $8.

284 559 18.294 1.86% to 2.25% to 16.192.00% to 15.23% per annum Fixed at 2.977 – – 3.305 110.07% per annum S$ fixed at 3.816 – 20.066 4.221.25% per annum INR interest-free loan RM fixed at 2.755 3.612 44.001 3.341 2008 Secured term loans: – – – – – – – – – – S$ variable at 2.704 – – – 916 – – – 5 921 550.328 – – – – – – 1.503 21.977 5.966 within 5 years $’000 After 5 years $’000 Total $’000 Secured short-term credit facilities: Unsecured term loan: Finance lease liabilities: Secured short-term credit facilities: Unsecured term loan: Unsecured short-term credit facilities: Finance lease liabilities: 98 Parkway Holdings Limited Annual Report 2009 .00% per annum S$ variable at 2.60% per annum – 2.34% per annum Fixed at 2.093 – 1.90% to 8.755 5.56% to 2.742 14.328 548.00% per annum INR variable at 9.944 1.041 497.177.085 542 – 497.97% per annum RM variable at 2.041 – 5.886 542 4.15% to 8.32% per annum RM fixed at 4.847 5.97% per annum RM variable at 4.449 548.031 105.34% per annum RMB fixed at 6.32% to 18.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 19 FINANCIAL LIABILITIES (cont’d) Maturity of borrowings After 1 year but Within 1 year $’000 Group 2009 Secured term loans: – – – – – – – – S$ variable at 2.736 16.00% per annum – 2.229 542 20.90% to 10.093 498.176.737 20.000 6.305 107.405 1.254 7.066 1.823 550.770 7.906 1.152 1.13% to 15.582 – 4.75% to 16.923 2.031 102.970 6.388 542 – 498.046 – – – 1.75% per annum INR interest-free loan RM fixed at 4.000 6.00% per annum S$ variable at 1.50% per annum INR variable at 10.30% to 6.25% per annum RM fixed at 5.58% to 10.57% to 7.

479 – 4.774 661 – – – – 6 – 667 Contractual cash flows $’000 Within 1 year $’000 within 5 years $’000 After 5 years $’000 99 .358 9.07% per annum – 497.509 232.509 1.224 14.197 9.633 – 1.120 542 4.134 – 758. including interest payments and excluding the impact of netting agreements: Cash flows After 1 year but Carrying amount $’000 Group 2009 Non-derivative financial liabilities Variable interest rate secured term loans Fixed interest rate secured term loans Interest-free secured term loan Secured short-term credit facilities Unsecured term loan Finance lease liabilities Trade and other payables 676.475 Derivative financial liabilities Interest rate swaps used for hedging – outflow 12.737 542 4.755 within 5 years $’000 After 5 years $’000 Total $’000 The following are the expected contractual undiscounted cash outflows of financial liabilities.843 21.254 1.152 192.641 542 – 509.609 192.970 192.993 2.755 5.86% to 2.197 518.755 – 498.687 7.007 6.34% per annum 2008 Unsecured term loan: – S$ variable at 2.385.093 498.509 1.704 6.977 – 497.255.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 19 FINANCIAL LIABILITIES (cont’d) Maturity of borrowings (cont’d) After 1 year but Within 1 year $’000 Company 2009 Unsecured term loan: – S$ variable at 1.141 8.488.977 – 498.402 735.508 5.254 3.

718 1.436 – – – – – – – 1.045 877 542 – 520.632 1.041 497.415 11.012 10.239 542 21.580.333 194.718 275.662 8.362 – 21.074 11.977 11.181 7.416.204 12.906 194.209 1.659 – 3.824 194.794 4.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 19 FINANCIAL LIABILITIES (cont’d) Cash flows After 1 year but Carrying amount $’000 Group 2008 Non-derivative financial liabilities Variable interest rate secured term loans Fixed interest rate secured term loans Interest-free secured term loan Secured short-term credit facilities Unsecured term loan Unsecured short-term credit facilities Finance lease liabilities Trade and other payables 679.303.209 5.627 8.788 7.509 – 1.718 1.503 542 20.789 29.436 Contractual cash flows $’000 Within 1 year $’000 within 5 years $’000 After 5 years $’000 100 Parkway Holdings Limited Annual Report 2009 .066 4.012 531.721 778.541 Derivative financial liabilities Interest rate swaps used for hedging – outflow Interest rate caps used for hedging – outflow 863 – – – – 12.167 – 808.

001 507.001 20.733 – 531.659 – – – 9.074 10.157 500.001 541.755 2.254 – 509.411 509.157 520.415 10.659 – 520.416 520.254 – – – Contractual cash flows $’000 Within 1 year $’000 within 5 years $’000 After 5 years $’000 101 .937 7.665 9.876 11.042 – 518.978 Derivative financial liabilities Interest rate swaps used for hedging – outflow Interest rate caps used for hedging – outflow 863 – – – – 10.647 10.670 3.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 19 FINANCIAL LIABILITIES (cont’d) Cash flows After 1 year but Carrying amount $’000 Company 2009 Non-derivative financial liabilities Unsecured term loan Trade and other payables 498.084 5.157 11.508 2.912 Derivative financial liabilities Interest rate swaps used for hedging – outflow 2008 Non-derivative financial liabilities Unsecured term loan Trade and other payables 497.075 10.977 10.042 5.254 2.

54 – 498.001 5.34 498.424 Floating interest $’000 Fixed interest rate maturing within 1 year $’000 1 to 5 years $’000 after 5 years $’000 Total $’000 2008 Secured term loans – effect of interest rate swaps Secured short-term credit facilities Unsecured term loan Unsecured short-term credit facilities Finance lease liabilities 3.727 4.755 5.00 2.906 1.742 7.86 to 2.25 676.57 to 1.152 1.424 0.836 – – 3.86 to 2.755 – 827.281 4.97 to 16.221.56 to 16.856 – – 5 5 4.041 – – – – – 20.093 – 1.730) – 348.977 – – – 497.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 19 FINANCIAL LIABILITIES (cont’d) Effective interest rates and repricing/maturing analysis Effective interest rate % Group 2009 Secured term loans – effect of interest rate swaps Secured short-term credit facilities Unsecured term loan Finance lease liabilities 2.066 4.663 – 3.91 (348.788 6.90 to 10.736 – 684.730 – – 2.07 – 497.34 to 7.066 1.035 11.997 1.405 356.715) – 347.34 2.977 20.23 2.294 352.041 497.07 497.715 – – 2.00 1.43 (347.977 0.30 to 6.58 to 10.755 – – – 498.32 to 18.093 498.75 679.192.291 Company 2009 Unsecured term loan 2008 Unsecured term loan 2.583 – – – 11.755 102 Parkway Holdings Limited Annual Report 2009 .687 2.944 559 – 687.00 – – 829.612 39.

(ii) The options shall be subject to such conditions (including any vesting schedule) as may be imposed by the Remuneration Committee and shall be exercisable. during the period commencing one year after the grant date and expiring on the fifth anniversary of the grant date unless they have been cancelled or have lapsed prior to that date. in whole or in part. certain employees are eligible to participate in the following equity compensation benefits: Parkway Share Option Scheme 2001 (Parkway Scheme 2001) The Parkway Scheme 2001 was approved by the shareholders of the Company at an Extraordinary General Meeting held on 18 January 2001. comprising four directors. Details of the Parkway Scheme 2001 and amendments effected by resolutions passed at the Extraordinary General Meetings of the Company held on 4 July 2001 and 2 November 2006 were set out in the Directors’ Reports for the years ended 31 December 2001 and 31 December 2006. (ii) The options shall be subject to such conditions (including any vesting schedule) as may be imposed by the Remuneration Committee and shall be exercisable. Richard Seow Yung Liang. namely Timothy David Dattels. Information regarding the Parkway Scheme 2001 is set out below: Market Price Options (i) The exercise price of the option is determined at the average of the last dealt prices of the Company’s shares on the Singapore Exchange Securities Trading Limited (SGX-ST) prevailing on the three consecutive trading days immediately preceding the date of grant of such options (the Market Price).FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 20 EMPLOYEE BENEFITS Employee benefits in the financial statements represent liabilities for short-term accumulating compensated absences. Incentive Options (i) The exercise price of the option is determined by the Remuneration Committee at a discount to the Market Price. respectively. during the period commencing after the second anniversary of the grant date and expiring on the fifth anniversary of the grant date unless they have been cancelled or have lapsed prior to that date. Ganen Sarvananthan and Ashish Jaiprakash Shastry. in whole or in part. provided that the maximum discount does not exceed 20% of the Market Price. 103 . The Parkway Scheme 2001 is administered by the Company’s Remuneration Committee. In addition.

66) per share.750) 27. of options 2009 Weighted average exercise price 2008 $ 2.750 11.250 (2008: 444. The weighted average share price during the year was $2.1000 1.000 (1.750) 24.486. 104 Parkway Holdings Limited Annual Report 2009 .9783 2.9145 3.0779 17.500 6.22 (2008: $2.4497 (2008: $1.7031 2.500 10.698.7031 2.750) treasury shares being reissued at a weighted average price of $1.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 20 EMPLOYEE BENEFITS (cont’d) Parkway Share Option Scheme 2001 (Parkway Scheme 2001) (cont’d) Movements in the number of share options and their related weighted average exercise prices are as follows: Weighted average exercise price 2009 $ At 1 January Granted and accepted Exercised Cancelled At 31 December Exercisable at 31 December 2.0765 27.917.250) (3.5881 2.331.145.820.517.0900 1.5881) each.698. of options 2008 Options exercised during the year resulted in 181.6293 2.180.700.145.500 2. Options were exercised on a regular basis throughout both years.500 No.000 (2008: 596.041.229.500) (1.4497 2.750) new ordinary shares being issued and 1.500 No.4700 2.000 (1.

105 .850.708. The expected life used in the model has been adjusted.229.670.5935 1.000 2. exercise restrictions and behavioural considerations.000 – 27.576.250 1.000 500. based on management’s best estimate.389.5081 3.5177 2.050.550.000 2.850.500.000.075.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 20 EMPLOYEE BENEFITS (cont’d) Parkway Share Option Scheme 2001 (Parkway Scheme 2001) (cont’d) Share options outstanding at the end of the year have the following expiry dates and exercise prices: Options Date of grant of options Expiry date Exercise price $ 19 November 2004 15 November 2005 9 December 2005 9 March 2006 9 March 2006 17 November 2006 17 November 2006 6 June 2007 15 June 2007 6 March 2008 6 March 2008 8 October 2009 19 November 2009 15 November 2010 9 December 2010 9 March 2011 9 March 2011 17 November 2011 17 November 2011 6 June 2012 15 June 2012 6 March 2013 6 March 2013 8 October 2014 0.8451 1.156.595.5455 2.000 2.000 4.000 1.000 8.145.500 2.8625 1. for the effects of non-transferability.000 6.500 outstanding 2009 Options outstanding 2008 The fair value of services received in return for share options granted are measured by reference to the fair value of share options granted.8926 3.000 150.640.500 709.420.3381 2.000 24.9763 1.000 150.8773 1.000 2.6207 1.000 2.000 964.000 1.000 2.175.000 1. The estimate of the fair value of the services received is measured based on the Trinomial option pricing model.0900 – 697.250 2.000 3.

5 years 3.6207 29. the shareholders of the Company approved the Share Plan.63% 0.255.0% 4. an executive director of the Company.63% 0.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 20 EMPLOYEE BENEFITS (cont’d) Fair value of share options and assumptions Date of grant of options Fair value at measurement date Share price Exercise price Expected volatility Expected option life Expected dividends Risk-free interest rate 15 Nov 2005 $0. upon the expiry of the prescribed vesting period when certain prescribed performance targets are met.000 performance shares were granted and accepted by 69 key executives of the Group for the performance qualifying periods from 2009 to 2011. The Share Plan is administered by the Remuneration Committee. Richard Seow Yung Liang.85% 9 Dec 2005 $0. The actual number of performance shares to be delivered will depend on the achievement of prescribed performance targets over the performance qualifying period. conditional awards of up to 7.411 $3.98% 9 Mar 2006 $0. who was conditionally awarded up to 1. Ganen Sarvananthan and Ashish Jaiprakash Shastry. namely Timothy David Dattels.63% 0. shall not exceed 15% of the total number of issued ordinary shares of the Company on the day immediately preceding the date on which the award is granted.8625 28. comprising four directors.0300 $1. There are no market conditions associated with the share option grants. or cash in lieu of ordinary shares of the Company equivalent to the aggregate market value of such performance shares or a combination of both. eligible employees and non-executive directors of the Company and its subsidiaries will be awarded with fully paid up ordinary shares of the Company.85% 9 Mar 2006 $0.258 $3.026.1% 3.000 performance shares.5935 32. Under the Share Plan.9% 3. Parkway Performance Share Plan At the same Extraordinary General Meeting held on 2 November 2006.0300 $1.0 years 3.98% The expected volatility is based on the historic volatility (calculated based on the weighted average expected life of the share options).4 years 3.0300 $1. when added to the aggregate number of ordinary shares issued pursuant to other share-based incentive schemes of the Company.0300 $1. Service conditions and non-market performance conditions are not taken into account in the measurement of the fair value of services to be received at the grant date.8773 32.63% 0. adjusted for any expected changes to future volatility due to publicly available information. The performance shares which may be issued pursuant to awards granted under the Share Plan.5 years 3.333 $3. 106 Parkway Holdings Limited Annual Report 2009 .388 $3. The key executives include Dr Lim Cheok Peng.4% 4. During the year.

6% 3.0300 $1.06% 1.63% 1.3% 3.03% 6 Jun 2007 $0.565 $3.0300 $3.5 years 3.0300 $2.63% 1.8926 28.631 $3.5 years 1.63% 1.816 $2.5177 24.5455 27.0 years 3.0300 $2.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 17 Nov 2006 $0.63% 1.052 $3.58% 8 Oct 2009 $0.7% 4.3% 4.2500 $2.5 years 3.890 $3.8451 27.15% 15 Jun 2007 $1.0300 $1.63% 1.0900 35.27% 107 .834 $3.4% 3.0 years 3.0 years 3.0300 $3.3381 25.17% 6 Mar 2008 $0.3% 4.5 years 3.8% 4.63% 1.58% 6 Mar 2008 $0.975 $3.26% 17 Nov 2006 $0.5081 30.

of Performance holders shares* 2007 award 2008 award 2009 award 2009 SIP award * 5 6 – – 204.000 1.684.554 667. of Performance holders shares* – – 67 40 – – 5.566.36% to 0. The estimate of the fair value of the conditional awards granted is determined using the Monte Carlo simulation method at the measurement date which project future share price assuming log normal distribution based on Geometric Brownian Motion Theory.976.18% 0.02% 61% $3.08% 29.57 41.06% 0. delivered and/or lapsed under the Share Plan.071 – – Delivered No.43 3.723. of Performance holders shares* 5 6 1 1 127.86 1. there has been no change in the conditional awards granted.02% 61% $3.29% 16. up to 8.000 1.151 1.96% 2007 $2.60% 69% $1.829 5.303.242 39.85% to 0.000 Includes additional performance shares that may be delivered if performance targets are exceeded. Subsequent to the balance sheet date up to 21 January 2010.67% 2008 $2.29% 16.43 3.85% to 0.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 20 EMPLOYEE BENEFITS (cont’d) Parkway Performance Share Plan (cont’d) At the end of the financial year. The fair value and assumptions are set out below: Year of awards Average fair value at measurement date Volatility of Parkway shares Volatility of Straits Times Index (STI) Correlation of Parkway share price vs STI Share price at grant/adjustment date Expected dividend yield Risk-free interest rate 2009 $1.000 19. details of the performance shares awarded under the Share Plan are as follows: Granted and accepted during the financial year No. of Performance holders shares* 3 4 66 39 76.000 Balance at 31/12/2009 No. of Performance holders shares* – – – – – – – – Lapsed No. Since the adoption of the Share Plan by the Company. No performance shares have been granted to the controlling shareholders of the Company or their associates and no participants under the Share Plan have been awarded 5% or more of the total number of performance shares which may be issued under the Share Plan since the commencement of the Share Plan.18% 0.597 898.000 Balance at 1/1/2009 No.96% 108 Parkway Holdings Limited Annual Report 2009 .71 27. The fair value of services received in return for performance shares granted are measured by reference to the fair value of performance shares granted.41 27.284.222 performance shares have been conditionally awarded to and accepted by employees of the Company and its subsidiaries.

097 7. The amount of each significant category of revenue recognised during the year is as follows: 2009 $’000 2008 $’000 (Restated) Revenue from hospital and other healthcare services Rental income Gross dividends from available-for-sale quoted equity investments Management and acquisition fees 958.460 2. and are repayable within the next twelve months.432 428 1.352 13. rental income and dividend income.634 979.626 1.101 45.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 21 OTHER PAYABLES Group 2009 $’000 Other payables Rental deposits Deposits and advances Advanced billings Interest payable 31.221 – 7.074 2009 $’000 830 – – – – 830 Company 2008 $’000 850 – – – 7.918 9.140 2.400 1. and management and acquisition fees.925 6.626 8. 22 REVENUE – GROUP Revenue represents invoiced value of hospital and other healthcare services rendered.722 2008 $’000 31.872 914.207 897.823 109 .195 2. after eliminating inter-company transactions.616 1.880 39.947 Other payables are unsecured and interest-free.

805) (10.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 23 PROFIT BEFORE INCOME TAX – GROUP The following income/(expense) items have been included in arriving at profit before income tax: 2009 $’000 Interest income received and receivable from: – Banks and financial institutions – Others Imputed interest income Grants received under Jobs Credit Scheme Non-audit fees paid to auditors of the Company Contributions to defined contribution plans included in staff costs (Increase)/Decrease in liability for short-term accumulating compensated absences Value of employee services received for: – Issue of share options – Conditional award of performance shares Exchange (loss)/gain (net) Inventories written off Loss on disposal and write off of property.939 (134) (24. the Group announced that it will implement various cost containment measures which included a reduction in the Group’s total workforce of approximately 150 employees. The Group recognised one-off costs associated with the reduction in workforce which amounted to $3.760) 2008 $’000 In 2008.079) (16.209) (1.596) 1.057) 69 485 22 – (5.190) (330) (11.221) (222) (4. 110 Parkway Holdings Limited Annual Report 2009 .651) (69.056 (51) (6.246) 4.765) 1. plant and equipment Gain on disposal of available-for-sale equity investments Gain on liquidation of interest in joint ventures Gain on disposal of associates Gain on disposal of subsidiary Allowance for impairment loss written back/(made): – Trade and other receivables Operating lease expenses Finance costs: Interest paid and payable to: – Banks and financial institutions – Others Other finance costs Changes in fair value of financial instruments at fair value through profit or loss (9.013) (272) (2.490) – – 5 171 (6.458) (3.000.801) (102) (1.941 (70.804.163 8.027) (1.593 310 6 – (182) (18.418) (42.635 822 – 8.614) (4.879) 1.699) (3.

524 5.235. At the balance sheet date.652 2008 $’000 4. or where the Group and the party are subject to common control or common significant influence. parties are considered to be related to the Group if the Group has the ability.000 (2008: 540.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 24 RELATED PARTIES – GROUP For the purposes of these financial statements.386 3. 2. or vice versa.239 The directors of the Company also participate in the Parkway Scheme 2001 and an executive director of the Company also participates in the Share Plan.000) performance shares have been conditionally awarded to an executive director of the Company. Related parties may be individuals or other entities.722.255.494 (2008: 731. directly or indirectly. The directors of the Company and the Group Senior Leadership Team are considered as key management personnel of the Group.750) and 1. The share options and performance shares that were granted in 2009 were on the same terms and conditions as those offered to other employees of the Company and its subsidiaries as described in note 20.000 (2008: 11.700.000) share options were granted to the directors of the Company and up to 1.000 (2008: 3.014) of those share options and performance shares. were outstanding.715 10. respectively. During the year.178.315. Other transactions with key management personnel 2009 $’000 Director of the Company Rental income received Directors of subsidiaries Consultancy fees paid A firm in which a director is a member Professional fees paid 95 140 42 223 10 10 2008 $’000 111 . directing and controlling the activities of the Group. Key management personnel compensation comprises: 2009 $’000 Short-term employee benefits Share-based payments 6. 13.266 9. to control the party or exercise significant influence over the party in making financial and operating decisions. Key management personnel compensation Key management personnel of the Group are those persons having the authority and responsibility for planning.

FINANCIAL STATEMENTS

Notes to the Financial Statements
YEAR ENDED 31 DECEMBER 2009

24

RELATED PARTIES – GROUP (cont’d) Other related party transactions Other than as disclosed elsewhere in the financial statements, transactions carried out on terms agreed with related parties are as follows: 2009 $’000 Associates Management fees received Rental income received Sales Purchases Corporate shareholders of subsidiaries Management fees paid Professional fees paid Corporate shareholders of joint ventures Consultancy fees paid 917 1,153 240 – 240 6 6,863 70 8 515 6,966 44 23 683 2008 $’000

25

INCOME TAX EXPENSE – GROUP Note 2009 $’000 Current tax expense Current year Overprovided in prior years 31,672 (638) 31,034 Deferred tax expense Origination and reversal of temporary differences Reduction in tax rates Underprovided in prior years 10 Foreign taxation Income tax expense (1,030) (771) 802 (999) 140 30,175 (966) (1,408) 552 (1,822) 122 16,183 20,336 (2,453) 17,883 2008 $’000

112

Parkway Holdings Limited

Annual Report 2009

FINANCIAL STATEMENTS

Notes to the Financial Statements
YEAR ENDED 31 DECEMBER 2009

25

INCOME TAX EXPENSE – GROUP (cont’d) Reconciliation of effective tax rate 2009 % $’000 % 2008 $’000 (Restated) Profit before income tax Tax calculated using Singapore tax rate Effect of reduction in tax rates Effects of different tax rates in other countries Income not subject to tax Expenses not deductible for tax purposes Utilisation of previously unrecognised tax losses Deferred tax assets not recognised Under/(over)provided in prior years Foreign taxation (0.3) (0.2) 0.1 0.1 19.5 Unrecognised temporary differences The following temporary differences have not been recognised: 2009 $’000 Deductible temporary differences Unabsorbed capital allowances Unutilised tax losses 1,494 121 12,722 14,337 2008 $’000 2,712 174 16,204 19,090 (479) (368) 164 140 30,175 (0.7) – (3.2) 0.2 27.2 (446) – (1,901) 122 16,183 17.0 (0.5) 2.1 (3.7) 4.9 155,039 26,357 (771) 3,291 (5,792) 7,633 18.0 (2.4) 2.9 (7.5) 19.9 59,600 10,728 (1,408) 1,722 (4,489) 11,855

The tax losses are subject to agreement by the tax authorities and compliance with tax regulations in the respective countries in which certain subsidiaries or joint ventures operate. The deductible temporary differences do not expire under current tax legislation. Deferred tax assets of the Group have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the respective entities within the Group can utilise the benefits.

113

FINANCIAL STATEMENTS

Notes to the Financial Statements
YEAR ENDED 31 DECEMBER 2009

26

EARNINGS PER SHARE – GROUP 2009 $’000 2008 $’000 (Restated)

Basic earnings per share Basic earnings per share is based on: Net profit attributable to ordinary shareholders

118,876 2009

38,049 2008

Number of shares Issued ordinary shares at beginning of the year Effects of share options exercised Effects of rights shares issued Effects of performance shares issued Purchase of treasury shares Effects of treasury shares issued Adjustment for effects of rights issue Weighted average number of ordinary shares in issue during the year Diluted earnings per share For the purpose of calculating the diluted earnings per ordinary share, the weighted average number of ordinary shares in issue is adjusted to take into account the dilutive effect arising from the dilutive share options and performance shares, with the potential ordinary shares weighted for the period outstanding. 1,128,007,659 1,010,393,190 1,127,734,784 49,263 – – – 223,612 – 769,188,160 250,305 195,573,996 140,164 (1,275,206) 415,958 46,099,813

114

Parkway Holdings Limited

Annual Report 2009

040.000 outstanding at the end of the year (2008: 17. completed the acquisition of Hospital Pantai Sungai Petani Sdn.305.000) were not included in the computation of diluted earnings per share due to their anti-dilutive nature.061.375.072.000 and net profit would have been $121.636 1.190 Share options totalled 25.128.000). used in the calculation of basic earnings per share Weighted average number of unissued ordinary shares under share options Weighted average number of shares that would have been issued at average market price Potential ordinary shares issuable under contingently issuable shares Weighted average number of ordinary issued and potential shares assuming full conversion 1. 115 . Group revenue would have been $981.010. Together with its existing equity of 30% in GHKL.588. Group revenue and net profit attributable to shareholders.000 respectively.000 to the consolidated net profit for the year.750 1.896.537) 4.007.520.750 10. the Group now has a total effective equity interest of 58% in GHKL.391. GHKL and its subsidiary contributed net profit of $392.001.000 and $41. If the acquisition had occurred on 1 January 2008.393. GHKL is proportionately consolidated as a 58% owned joint venture.249) (8. During the period from the acquisition date to 31 December 2009. On 18 November 2008.337. Bhd.750. Pantai Hospitals Sdn.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 26 EARNINGS PER SHARE – GROUP (cont’d) Diluted earnings per share (cont’d) The effects of the exercise of share options and issue of contingently issuable shares on the weighted average number of ordinary shares in issue are as follows: 2009 2008 Number of shares Weighted average number of ordinary shares.211. If the acquisition had occurred on 1 January 2009.102. Bhd.309.000. contributed a net profit of $334. During the period from the acquisition date to 31 December 2008. the Group’s 40% owned joint venture.182.000 to the consolidated net profit for the year. Bhd. (HPSP) for a consideration of RM13.476 1. 27 ACqUISITION OF JOINT VENTURES AND MINORITY INTERESTS Acquisition of joint ventures On 1 May 2009. Accordingly. the Group’s 40% owned joint venture.122 (8.525 8.014. completed the acquisition of 70% equity interest in Gleneagles Hospital (Kuala Lumpur) Sdn Bhd (GHKL) for a consideration of RM101.132. as restated.000 (equivalent to $2.840.000).659 1. would have been $946. Hospital Pantai Sungai Petani Sdn.000 (equivalent to $41.336. Pantai Irama Ventures Sdn Bhd.

424 2.840 (1.457) (5.692 (5.985) – 39.739) 166 33 (514) – – – 166 33 (514) 454 1.341) (12) (5.725 41.966) (155) (1.558) 10 (464) (624) – – – – – – – – (464) (624) – – – (9.094 1. plant and equipment Inventories Trade receivables Other receivables.341) (12) (5.457) (5.499) 9.985 – – – – 454 1.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 27 ACqUISITION OF JOINT VENTURES AND MINORITY INTERESTS (cont’d) Acquisition of joint ventures (cont’d) The effects of the above acquisitions are set out below: Provisional Carrying Note 2009 $’000 Property. deposits and prepayments Cash and cash equivalents Bank overdrafts Trade payables and accrued operating expenses Other payables Interest-bearing borrowings Current tax payable Deferred tax liabilities Cumulative redeemable preference shares Dividends payable on preference shares Reversal of interest in associate on acquisition of additional interest Net identifiable assets and liabilities Goodwill on acquisition Cash consideration Less: Cash and cash equivalents acquired Add: Bank overdrafts acquired Net cash outflow 5 – (213) – – – (213) 2.966) (155) (1.115 32.211 (33) 514 2.515 (5.739) – – – – – (9.985 – 4 564 143 483 fair value Recognised values 2009 $’000 564 143 483 2009 $’000 – – – Carrying amounts 2008 $’000 27.600 – 7.558) – – (6.609 1.547 amounts adjustments Provisional fair value adjustments 2008 $’000 7.499) 1.515 – – Recognised values 2008 $’000 34.247 5.855 – – – – – – (6.247 5.547 116 Parkway Holdings Limited Annual Report 2009 .

151. deposits and prepayments Cash and cash equivalents Trade payables and accrued operating expenses Current tax payable Deferred tax liabilities Interest-bearing borrowings Minority interests Net identifiable assets and liabilities disposed Gain on disposal of subsidiary Cash consideration Less: Cash and cash equivalents disposed Cash flow on disposal. Shanghai Rui Hong Clinic Co. The values of assets. whose principal activities are those relating to private hospital ownership and management in Malaysia. Ltd and its subsidiaries. Ltd and its subsidiaries. the Group completed its acquisition of an additional 10% interest in Shanghai Rui Xin International Healthcare Co. Ltd (collectively “World Link Group”) for $9.000 cash.000. The goodwill recognised on the above acquisitions is attributable mainly to the synergies expected to be achieved from integrating the operations of HPSP and GHKL.715. 28 DISPOSAL OF SUBSIDIARY On 14 April 2009. net of cash disposed 10 4 227 13 20 70 659 (403) (147) (29) (23) (155) 232 171 403 (395) 8 117 . the Group disposed its 60% interest in Ko Djeng Pte Ltd for $403.000.278. Acquisition of minority interests On 1 July 2009. The Group recognised a decrease in minority interest of $2.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 27 ACqUISITION OF JOINT VENTURES AND MINORITY INTERESTS (cont’d) Acquisition of joint ventures (cont’d) Pre-acquisition carrying amounts were determined based on applicable FRSs immediately before the acquisition.000 and goodwill of $7. liabilities and contingent liabilities recognised on acquisition are their estimated fair values. The carrying amount of the World Link Group’s net assets in the financial statements on the date of acquisition was $28. and Shanghai Rui Xin International Co. plant and equipment Inventories Trade receivables Other receivables.000. The carrying amount of Ko Djeng’s net assets in the financial statements on the date of disposal were as follows: Note 2009 $’000 Property. into the Group’s existing business in Malaysia.637.

017 231.395 66.166 403.505 (c) Non-cancellable operating leases receivable: – Within 1 year – After 1 year but within 5 years – After 5 years 11.322 703.829 (d) 7.161 16.058 97.498 (b) Non-cancellable operating leases payable: – Within 1 year – After 1 year but within 5 years – After 5 years 69.502 802.847 929.618 50 27.370 732. The dividends have not been provided for.591 446. the directors proposed the following dividends.811 2008 $’000 Subsequent to the balance sheet date.996 756.097 219.964 831.988 – 2008 $’000 30 FINANCIAL RISK MANAGEMENT The Group has exposure to the following risks from its use of its financial instruments: • • • • • • Credit risk Liquidity risk Market risk Interest rate risk Foreign currency risk Fair value 118 Parkway Holdings Limited Annual Report 2009 . 2009 $’000 Final tax exempt one-tier dividend proposed of 1.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 29 COMMITMENTS Group 2009 $’000 (a) Capital commitments not provided for in the financial statements: – Amounts authorised and contracted for – Amounts authorised but not contracted for 45.642 – 15.753 7.15 cents (2008: nil) per ordinary share 12.

Additional deposit is requested from the customer when the hospital charges exceed a certain level.000 (2008: $91. At the balance sheet date. and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets. The Group also has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. As such.906.011.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 30 FINANCIAL RISK MANAGEMENT (cont’d) This note presents information about the Group’s exposure to each of the above risks.000) for which allowance for impairment of $889. a non-corporate customer is requested to place an initial deposit at the time of admission to the hospital. At that point.000 (2008: $34. its tolerance for risk and general risk management philosophy. the Group has outstanding amount owing from joint ventures of $95. management has established processes to monitor and control such risks in a timely and accurate manner and to ensure that an appropriate balance between risk and control is achieved. Risk management framework The Group has put in place a set of risk management policies and guidelines governing all investment and business risks.000 (2008: $39.414. Cash and fixed deposits are placed with financial institutions which are regulated. and trade receivables from the most significant customer of $6. the financial asset is considered irrecoverable and the amount charged to the allowance account is written off against the carrying amount of the impaired financial asset. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. the Group may enter into transactions to hedge against these risks in order to keep them at an acceptable level. Further quantitative disclosures are included throughout these financial statements. Finally. there were no significant concentrations of credit risk. and the Group’s management of capital. The main components of this allowance are a specific loss component that relates to individually significant exposures. the Group’s objectives. management does not expect any counterparty to fail to meet their obligations. Credit risk Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. investments and transactions involving financial instruments are allowed to be entered into only with counterparties who have sound credit ratings. These policies and procedures set out the Group’s overall business strategies. Where necessary.000) has been recognised.934. The Audit and Risk Management Committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. the Group does not grant credit to non-corporate customers. policies and processes for measuring and managing risk. For the hospital operations. In addition. all investment and divestment decisions are required to be approved by the Executive Committee.502. Credit evaluations are performed on major customers requiring credit over a certain amount. The allowance account in respect of trade and other receivables is used to record impairment losses unless the Group is satisfied that no recovery of the amount owing is possible. Instead. 119 . Other than these receivables. The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables.000). Similarly.

204. The Group’s policy is to manage its interest cost using a mix of fixed and variable rate debts as well as by rolling over its fixed deposits and variable rate borrowings on a short-term basis. comprising liabilities of $12.622.204. The net fair value of interest rate swaps at 31 December 2009 was $12. the Group has interest rate swaps with a notional contract amount of $348. this excludes the potential impact of extreme circumstances that cannot reasonably be predicted. Interest rate swaps have been entered into to achieve an appropriate mix of fixed and floating rate exposures within the Group’s policy. foreign exchange rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments.000 (2008: $12.000 (2008: $12.000).000). The Group ensures that it has sufficient cash on demand to meet expected operational expenses.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 30 FINANCIAL RISK MANAGEMENT (cont’d) Liquidity risk The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows. The objective of market risk management is to manage and control market risk exposures within acceptable parameters. As at 31 December 2009.457 2008 $’000 120 Parkway Holdings Limited Annual Report 2009 .000). Market risk Market risk is the risk that changes in market prices. The Group’s fixed-rate financial assets and borrowings are exposed to a risk of change in their fair value due to changes in interest rates while the variable-rate financial assets and borrowings are exposed to a risk of change in cash flows due to changes in interest rates. In respect of long-term borrowings. Sensitivity analysis A 10% increase/(decrease) in the underlying equity prices at the reporting date would increase/(decrease) the amounts credited/(charged) to equity or income statement as shown below: Group 2009 $’000 Increase in equity prices – Equity Decrease in equity prices – Income statement Interest rate risk This relates to changes in interest rates which affect mainly the Group’s fixed deposits and its debt obligations with banks and financial institutions. including the servicing of financial obligations. The swaps mature over the next 3 years following the maturity of the related loans.096.224.000 (2008: $350. while optimising the return on risk. such as natural disasters.224. – (1. the Group may enter into interest rate derivatives to manage its exposure to adverse movements in interest rates. such as interest rates.457) – 1.

500 – (8.499 – (2.000).000 (2008: $863. purchases.000. In respect of exposure that is certain. Foreign currency risk The Group is exposed to foreign exchange risk on sales. The interest rate caps mature over the next 2 years following the maturity of the related loans.500) – 8.645 – (5.317) 986 221 (110) 1.600 (2.561) – (2.000). As of 31 December 2009.561) (10. income statement or equity as shown below: Assets* 100 bp increase $’000 Group 31 December 2009 Variable rate instruments Interest rate swaps Interest rate caps 10.824) Relates to interest capitalised in construction-in-progress and development properties.600) 2.645 – 5.600 (2.268 (986) (39) 243 – 2. the Australian dollar.824) – (5. the Chinese Renminbi and the Malaysian Ringgit.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 30 FINANCIAL RISK MANAGEMENT (cont’d) Interest rate risk (cont’d) The Group has also entered into interest rate caps to hedge against exposure to rising interest rates on its variable rate term loans.000 (2008: $200.500 – (8.100 31 December 2008 Variable rate instruments Interest rate swaps Interest rate caps 10. The currencies giving rise to this risk are primarily the United States dollar. 121 .499 – 2. comprising assets of $52.500) – 8.000. the Group will partially hedge these risks in order to keep them at an acceptable level. the Group has interest rate caps with a notional contract amount of $200. The net fair value of interest rate caps at 31 December 2009 was $52.600) 2.268) 986 231 (51) 1.100 * Income statement 100 bp increase $’000 100 bp decrease $’000 100 bp increase $’000 Equity 100 bp decrease $’000 100 bp decrease $’000 (10.317 (986) (64) 267 – 5. Sensitivity analysis For interest rate swaps and other variable rate financial assets and liabilities. cash and cash equivalents and notes receivable that are denominated in a currency other than the respective financial currencies of Group entities.100) (1.100) (1.000). a change of 100 bp in interest rate at the reporting date would increase/(decrease) amounts charged or credited to assets.000 (2008: $NIL) and liabilities of $NIL (2008: $863.

396) – 3 – 59 – – 62 – 4.151 – – – 19 – – 19 Australian Dollar $’000 Company 31 December 2009 Cash and cash equivalents Intra-group payables – (4.000 (302) (758) 42.604) (3.861 – – (1.608) (4.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 30 FINANCIAL RISK MANAGEMENT (cont’d) Foreign currency risk (cont’d) The Group’s and Company’s exposures to foreign currency are as follows: Australian Dollar $’000 Group 31 December 2009 Deposits paid to minority shareholder of a subsidiary Trade and other receivables Intra-group receivables Cash and cash equivalents Trade and other payables Intra-group payables – – 246 3 (1) (4.608) 31 December 2008 Trade and other receivables Cash and cash equivalents Intra-group payables – – (3.195 British Pound $’000 Chinese Hong Kong Renminbi $’000 Dollar $’000 Malaysian Ringgit $’000 US Dollar $’000 122 Parkway Holdings Limited Annual Report 2009 .608) (4.608 440 8.545 5.125 Hong Kong Dollar $’000 – – – 64 – – 64 – – 168 – – – 168 – – – 18 (54) – (36) – – 492 – – – 492 29.604) 3 59 – 62 – 19 – 19 64 – 64 18 – 18 – – 1.604) (3.021 130 – – – 4.959) (98) British Pound $’000 30.033 538 6.207 5.191 (182) – 42.360) 31 December 2008 Deposits paid to minority shareholder of a subsidiary Trade and other receivables Intra-group receivables Cash and cash equivalents Trade and other payables Intra-group payables – – 206 2 – (3.

if available.220) (3.213) (4. fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual period to maturity of the contract using a risk-free interest rate (based on government bonds).286) – – – – – – – 360 (6) – (2) – – 352 436 (6) (17) 4 (49) (4.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 30 FINANCIAL RISK MANAGEMENT (cont’d) Foreign currency risk (cont’d) Sensitivity analysis A 10% strengthening of the Singapore dollar against the following currencies at the reporting date would increase/(decrease) amounts charged or credited to equity or income statement as shown below. Derivatives The fair value of forward exchange contracts is based on their listed market price. 123 . This analysis assumes that all other variables. remain constant. If a listed market price is not available.852) – – – – – – – 461 (6) – (2) – – 453 statement $’000 Equity $’000 Company Income statement $’000 Fair value Quoted investments The fair value of financial assets at fair value through profit or loss and available-for-sale financial assets is determined by reference to their quoted bid prices at the reporting date. These quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date. in particular interest rates. Group Income Equity $’000 Group 31 December 2009 Australian dollar British pound Chinese renminbi Hong Kong dollar Malaysian ringgit US dollar – – – – – – – 31 December 2008 Australian dollar British pound Chinese renminbi Hong Kong dollar Malaysian ringgit US dollar – – – – – – – 340 (6) (415) (2) 10 (4. The fair value of interest rate swaps and caps is based on broker quotes.

124 Parkway Holdings Limited Annual Report 2009 .279) (5.272) (5.465) 807 Fair value 2009 $’000 Carrying amount 2008 $’000 Fair value 2008 $’000 It is not practicable to reliably estimate the fair value of unquoted equity shares due to the lack of quoted market prices in an active market.321) (8. and the inability to reasonably assess the probabilities of the various estimates. is calculated based on the present value of future principal and interest cash flows.897) (7. The notional amounts of financial liabilities with a maturity of less than one year or which reprice frequently approximate their fair values.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 30 FINANCIAL RISK MANAGEMENT (cont’d) Fair value (cont’d) Non-derivatives interest-bearing borrowings Fair value. which is determined for disclosure purposes. discounted at the market rate of interest at the reporting date. significant range of reasonable fair value estimates. For finance leases. trade and other payables approximate their fair values because of the short period to maturity.856) (15.152) (16.874) (18. All other financial assets and liabilities are discounted to determine their fair values.085 (6.130) 1. with the estimated rates that the banks would have charged had these guarantees not been available. management believes that the carrying amounts recorded at balance sheet date reflect the corresponding fair values. by comparing the actual rates charged by the bank with these guarantees made available.906) (19. the market rate of interest is determined by reference to similar lease agreements.045) (4. Intra-group financial guarantees The value of financial guarantees provided by the Company to its subsidiaries is determined by reference to the difference in the interest rates. cash and cash equivalents.640) (4. The aggregate net fair values of recognised financial assets and liabilities which are not carried at fair value in the balance sheet as at 31 December are represented in the following table: Carrying amount Note 2009 $’000 Group Financial liabilities Amounts due to associates Secured term loans Finance lease liabilities 7 19 19 (2.784) (8. However.694) (4. Other financial assets and liabilities The notional amounts of financial assets and liabilities with a maturity of less than one year including trade and other receivables.215) Unrecognised gain (2.634) (7.

and intangible assets other than goodwill. plant and equipment. assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. and provision of managed care and related services outside Singapore. provision of courses in nursing and allied health. underwriting of accident and healthcare insurance policies.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 31 SEGMENT REPORTING The Group has six reportable segments. and provision of managed care and related services in Singapore. ownership and management of radiology clinics. provision of comprehensive diagnostic laboratory services. For each of the strategic business units. The Group’s reportable segments comprises: • Singapore Hospitals: Operation of private hospitals. Segment capital expenditure is the total costs incurred during the year to acquire property. provision of clinical research services. Segment results. 125 . • Singapore Non-healthcare Services: Investment in Parkway Life REIT and other investment holding companies in Singapore. and are managed separately. provision of medical examination of foreign workers services. and income tax assets and liabilities. which are the Group’s strategic business units. The strategic business units offer different products and services in different locations. as described below. interest expenses and related liabilities. provision of medical waste management and cleaning services. Singapore Healthcare Services: Operation of medical clinics and provision of primary healthcare services. • International Non-healthcare Services: Investment holding companies outside Singapore. the Group’s Board of Directors reviews internal management reports on at least a quarterly basis. • International Healthcare Services: Operation of medical clinics and provision of primary healthcare services. • • International Hospitals: Operation of private hospitals outside Singapore. rental and sale of medical units which form part of the hospital complex in Singapore. Unallocated items mainly comprise goodwill. Inter-segment pricing is determined on mutually agreed terms. provision of comprehensive diagnostic laboratory services.

FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 31 SEGMENT REPORTING (cont’d) Operating Segments Singapore hospitals $’000 Revenue and expenses 2009 Total revenue from external customers Inter-segment revenue Total segment revenue Earnings before interest. plant and equipment Amortisation of intangible assets Exchange losses Finance costs Interest income Share of profits of associates (net of tax) REIT rental expense Exceptional items Profit before income tax Income tax Net profit for the year 2008 (Restated) Total revenue from external customers Inter-segment revenue Total segment revenue Earnings before interest.073 493.499 485.918 126 Parkway Holdings Limited Annual Report 2009 .869 206. depreciation.557 158.978 112. plant and equipment Amortisation of intangible assets Exchange gains Finance costs Interest income Share of profits of associates (net of tax) REIT rental expense Exceptional items Profit before income tax Income tax Net profit for the year International hospitals $’000 466. depreciation. amortisation and REIT rental (EBITDAR) Depreciation and impairment losses of property.610 20. tax.479 19. amortisation and REIT rental (EBITDAR) Depreciation and impairment losses of property.117 473.683 121. tax.363 33.112 251 158.362 291 206.653 44.

525 (43.942 201.881 155.796 – 8.759 136.914) (56.914) – 914.814 31.596) 4.608 128.183) 43.909 11.093 27.796 31.746 32.542 6.718) (6.175) 124.823 217.491) – 979.667) (60.207 – 979.417 127 .005 6 – 6 (212) – (56.535 31.221) (11.864 150.796 4.599 6 – 6 (67) – (58.236) 1.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 Singapore healthcare services $’000 International healthcare services $’000 Singapore non-healthcare services $’000 International non-healthcare services $’000 Eliminations $’000 Consolidated $’000 168.838 – 6.056 (16.272) 3.805) 9.039 (30.491) (58.485 4.163 8.852 (51.457 23.600 (16.127 (48.823 – 914.688 44.022) (6.957 130.152) (1.094 123.496) 59.982 182.207 237.017 (48.838 3.776 5.

473.473.729 International hospitals $’000 414.733.159.251 415.708 Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities 2008 (Restated) Segment assets Interests in associates 1.557 1.808 117.838 128 Parkway Holdings Limited Annual Report 2009 .807 769 390.573 Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities 1.151.708 – 1.576 104.246 1.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 31 SEGMENT REPORTING (cont’d) Operating Segments (cont’d) Singapore hospitals $’000 Assets and liabilities 2009 Segment assets Interests in associates 1.733.669 389.573 – 1.

070 234.270 1.369 18.485.172 20.999 201 204.631 2.085 2.796 1.922 198.087 122.970 205.072 602.585 88.126 131.391 3.920.770 2.357 203.916 2.886 184 199.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 Singapore healthcare services $’000 International healthcare services $’000 Singapore non-healthcare services $’000 International non-healthcare services $’000 Consolidated $’000 130.105 – 18.368 135.105 2.213 7.693 31.129 2.180 176.811.714.631 87.107 202.950 47.474 127.512 129 .574.565.987.927 1.102.477.524 436.617.615 1.916 – 2.227 1.051 194.417 13.170 1.446 47.200 410.246 121.055 182.297 192.

970 135.063 2.332 642.472 22.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 31 SEGMENT REPORTING (cont’d) Geographical Segments Other Singapore $’000 2009 Total revenue from external customers Segment assets Capital expenditure 2008 (Restated) Total revenue from external customers Segment assets Capital expenditure 633.061 327.360.279 62.128 979.238 191.714.121 319.472 3.220 2.622 51.023 25.051 1.756 145.098.786 138.394.611 101.960 914.823 2.388 Malaysia $’000 China $’000 Regions $’000 Consolidated $’000 130 Parkway Holdings Limited Annual Report 2009 .255 142.585 230.768 154.967 7.005.756 1.617.512 38.140 1.207 2.580 7.396 44.

59 During the year.71* 35. ownership and management Nursing College 30 30 Gleneagles Academy of Nursing (M) Sdn Bhd PT Tritunggal Sentra Utama Surabaya Kyami Pty Ltd and its subsidiary: Royalmist Properties Pty Ltd Gleneagles International Hospital (Lanka) Limited Gleneagles Heritage Holdings Limited and its subsidiary: Gleneagles Heritage International Limited Asia Renal Care Mount Elizabeth Pte Ltd Asia Renal Care (Katong) Pte Ltd Onemedhub Pte Ltd Positron Tracers Pte.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 32 ASSOCIATES Details of associates are as follows: Place of incorporation and business United States of America Malaysia Effective equity interest held 2009 2008 % % 40 40 Name of associate Phil. the Group’s effective interest in Parkway Life REIT increased due to additional units issued to the Group in satisfaction of management fees payable by the latter. Ltd. 131 . Inc Principal activities Dormant Gleneagles Medical Centre (Kuala Lumpur) Sdn Bhd Medical centre development. Disposed during the year. Malaysia – ^ 20 Provision of medical diagnostic services Investment holding Indonesia 30 30 Australia 30 30 Property investment and development Dormant Australia 30 30 Sri Lanka 40 40 Investment holding British Virgin Islands British Virgin Islands Singapore 40 40 Dormant 40 40 Provision of medical services 20 20 Provision of medical services Singapore 20 20 Striked off during the year Ownership and operation of a cyclotron Real estate investment trust Singapore Singapore – 33 40 33 Parkway Life Real Estate Investment Trust * ^ Singapore 35.

For this purpose. or if the Group’s share of its pre-tax profit accounts for 20% or more of the Group’s consolidated pre-tax profits. an associate is considered significant as defined under the SGX-ST Listing Manual if the Group’s share of its net tangible assets represents 20% or more of the Group’s consolidated net tangible assets. None of the foreign-incorporated associates are considered significant in accordance with Rule 718 of the SGX-ST Listing Manual. 33 JOINT VENTURES Details of joint ventures are as follows: Place of incorporation and business Effective equity interest held 2009 2008 % % 50 50 Name of joint venture Principal activities Apollo Gleneagles Hospital Ltd Private hospital ownership and management Operation of PET-CT radio imaging centre Operation of medical clinic India Apollo Gleneagles PET-CT Limited India 50 50 Hale Medical Clinic (Concourse) Pte Ltd Shenton Family Medical Clinic (Bukit Gombak) Shenton Family Medical Clinic (Serangoon) Shenton Family Medical Clinic (Bedok Reservoir) Shenton Family Medical Clinic (Jurong East) Shenton Family Medical Clinic (Tampines) Shenton Family Medical Clinic (Yishun) Gleneagles Maritime Medical Center (GMMC) Karington Holdings Pte Ltd Singapore 50 50 Operation of medical clinic Singapore 50 50 Operation of medical clinic Singapore 50 50 Operation of medical clinic Singapore 50 50 Operation of medical clinic Singapore 50 50 Operation of medical clinic Singapore 50 50 Operation of medical clinic Singapore 50 50 Operation of medical clinic Singapore 51 51 Dormant Singapore 50 50 132 Parkway Holdings Limited Annual Report 2009 .FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 32 ASSOCIATES (cont’d) KPMG Singapore is the auditor of all significant Singapore-incorporated associates.

FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 33 JOINT VENTURES (cont’d) Place of incorporation and business Effective equity interest held 2009 2008 % % 40 40 Name of joint venture Principal activities Pantai Irama Ventures Sdn Bhd and its subsidiaries: Pantai Holdings Berhad and its subsidiaries: Pantai Group Resources Sdn.56 PMC Radio-Surgery Sdn. Bhd. Bhd.28 133 . Malaysia 40 40 Malaysia 20. Bhd.4 20. Bhd. Bhd. surgical and hospital services Provision of cardiac catherisation services Provision of medical diagnostic services and other related ventures Provision of radiotherapy facilities Provision of haemodialysis services Dormant Malaysia 40 40 Pantai Medical Centre Sdn. Syarikat Tunas Pantai Sdn. Bhd. and its subsidiaries: Pantai Hospitals Sdn. Malaysia 40 40 Malaysia 40 39. Bhd. Pantai-ARC Dialysis Services Sdn Bhd Kuala Lumpur Medical Centre (Asia Pacific) Sdn. Bhd. and its subsidiaries: Investment holding Malaysia Investment holding Malaysia 40 40 Investment holding Malaysia 40 40 Investment holding and provision of management and consultation services to hospitals and medical centres Provision of medical. surgical and hospital services Provision of medical. Cheras Medical Centre Sdn. Bhd. surgical and hospital services Provision of medical. Malaysia 40 40 Malaysia 32. surgical and hospital services Malaysia 40 40 Pantai Klang Specialist Medical Centre Sdn.4 20. and its subsidiaries: Angiography Sdn.4 Malaysia 20. Bhd.28 32.56 20.12 Magnetom Imaging Sdn. Malaysia 20.4 Provision of medical.

surgical and hospital services Malaysia 40 – 134 Parkway Holdings Limited Annual Report 2009 . and its subsidiaries: HPAK Lithotripsy Services Sdn.) Hospital Pantai Sungai Petani Sdn. surgical and hospital services Provision of medical. Bhd. Bhd. Bhd.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 33 JOINT VENTURES (cont’d) Place of incorporation and business Malaysia Effective equity interest held 2009 2008 % % 31. Bhd. Principal activities Provision of medical. Bhd. surgical and hospital services Provision of lithotripter services Provision of services for cancer diseases Provision of medical.) Pantai Screening Services Sdn. Bhd. Bhd.12 31. Bhd. surgical and hospital services Managers and administrator for health screening services Hospital Pantai Ayer Keroh Sdn. Bhd. (formerly known as Pantai Central Sterilisation Services Sdn. (formerly known as Strand Hospital & Retirement Home Sdn.12 Name of joint venture Paloh Medical Centre Sdn. (formerly known as Pantai Central Sterilisation Services Sdn. Bhd. HPAK Cancer Centre Sdn. and its subsidiary: Pantai Screening Services Sdn. Hospital Pantai Indah Sdn. Bhd.) Malaysia 40 40 Malaysia 40 40 Malaysia 40 40 Malaysia 40 40 Malaysia –### 40### Managers and administrator for health screening services Malaysia 40### –### Provision of medical.

Malaysia 40 40 Malaysia 40 40 Pantai Health Infomatics Sdn. Bhd. and its subsidiaries: Malaysia 40 40 Pantai Premier Pathology Sdn. Malaysia 30 30 Pengkalan Usaha (M) Sdn. Bhd. Bhd. Bhd. and its subsidiary: Malaysia 40 40 Provision of rehabilitation services Investment holding and supervision of medical examination of foreign workers in Malaysia Monitoring of medical examination of foreign workers in Malaysia Dormant Malaysia 34 34 Malaysia 40 40 Fomema Sdn. (formerly Golden Home Care Sdn. Bhd.) Pantai Integrated Rehab Services Sdn.T. Bhd. Bhd. Bhd. Pantai Education Sdn. Pantai Fomema & Systems Sdn. Pantai Healthcare Consulting Principal activities Provision of healthcare consulting services in Indonesia Investment holding and provision of management and consultation services to healthcare related service sectors Provision of medical laboratory services Provision of educational programs and training courses for healthcare and related fields Dormant Pantai Support Services Sdn.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 33 JOINT VENTURES (cont’d) Place of incorporation and business Indonesia Effective equity interest held 2009 2008 % % 40# 40# Name of joint venture P. Malaysia 40 40 135 . Bhd.

Pantai Bethany Care International Pantai Medivest Lanka (Private) Limited P. and its subsidiaries: Malaysia 40 40 Aroma Laundry & Dry Cleaners Sdn. Pantai Medivest Lanka (Private) Limited 136 Parkway Holdings Limited Annual Report 2009 Malaysia 20 20 Dormant Malaysia –^ 20 Dormant Sri Lanka 40## 40## . cleaning and maintenance services for hospitals Provision of laundry and dry cleaning services Indonesia 40# 40# Pantai Medivest Sdn. Bhd. and its subsidiary: P.T. and its subsidiary: Zoom Valet Services Sdn. training. Bhd. Bhd. Pantai Management Resources Sdn.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 33 JOINT VENTURES (cont’d) Place of incorporation and business Malaysia Effective equity interest held 2009 2008 % % 40 40 Name of joint venture Healthpac Industries Sdn. Bhd. Pantai Healthcare Consulting Malaysia British Virgin Islands British Virgin Islands 40 40 40 40 – 40 Liquidated during the year British Virgin Islands Malaysia – 40 Investment Holding 40 40 Investment Holding Indonesia 26 – Dormant Sri Lanka 40 ## 40## Provision of healthcare consulting services in Indonesia Provision of clinical waste management. Cyberwide Finance Limited and its subsidiary: Maxgold Investments Group Limited and its subsidiary: Glossmere Investments Limited Pantai Diagnostic Indonesia Sdn.T. Bhd. Bhd. Bhd. Principal activities Dormant Provision of administration support. research and development services Dormant In member’s voluntary liquidation Liquidated during the year Malaysia 40 40 Credit Enterprise Sdn.

respectively. Bhd. Jasa Medivest Principal activities Dormant Provision of waste management services in Indonesia Private hospital ownership and management Indonesia 38 38 Gleneagles Hospital (Kuala Lumpur) Sdn Bhd and its subsidiary: Oncology Centre (KL) Sdn Bhd # Malaysia 58@ 58@ Provision of comprehensive oncological services Malaysia 58@ 58@ Effective equity interest of 20% each held by Pantai Hospitals Sdn. Disposed during the year and the disposal did not have any financial effect to the income statements. Bhd.T. ## ### @ ^ None of the Singapore-incorporated joint ventures are considered significant in accordance with Rule 718 of the SGX-ST Listing Manual. Effective equity interest of 28% and 30% held by Pantai Irama Ventures Sdn Bhd and Gleneagles (Malaysia) Sdn Bhd. Bhd. Bhd. and Pantai Group Resources Sdn. A joint venture is considered significant if the Group’s proportionate share of its net tangible assets represents 20% or more of the Group’s consolidated net tangible assets. Bhd. pursuant to an internal restructuring during the year. Other member firms of KPMG International are auditors of significant foreign-incorporated joint ventures. Bhd. 137 . or if the Group’s proportionate share of its pre-tax profit accounts for 20% or more of the Group’s consolidated pre-tax profits. Shares transferred from Hospital Pantai Indah Sdn. Effective equity interest of 20% each held by Pantai Medivest Sdn.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 33 JOINT VENTURES (cont’d) Place of incorporation and business India Effective equity interest held 2009 2008 % % 40 40 Name of joint venture Pantai Medivest (India) Private Limited P. and Pantai Group Resources Sdn. to Pantai Hospitals Sdn.

Depreciation expense for future periods is adjusted if there are significant changes from previous estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors. credit-worthiness of the debtors and historical write-off experience. taxability of certain income and deductibility of certain expenses during the estimation of the provision for income taxes.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 34 ACCOUNTING ESTIMATES AND JUDGEMENT IN APPLYING ACCOUNTING POLICIES The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. 138 Parkway Holdings Limited Annual Report 2009 . plant and equipment whenever there is objective evidence that the assets are impaired. Impairment loss on trade receivables The Group evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment loss as a result of the inability of the debtors to make required payments. Income taxes Significant judgement is required in determining the availability of tax losses for offset against taxable income. The Group bases the estimates on the ageing of the trade receivables balance. The Group reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation expense to be recorded during any reporting period. plant and equipment Property. capital allowances. The useful lives are based on the Group’s historical experience with similar assets and taking into account anticipated technological changes. Key source of estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date. Impairment losses would be made for property. The required level of impairment losses to be made is estimated by reference to the estimated value in use or price quotations from independent third parties. plant and equipment are depreciated on a straight-line basis over the estimated useful lives. If the financial conditions of the debtors were to deteriorate. that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below: Depreciation of and impairment loss on property. The recoverable amount represents the estimated value in use based on key assumptions as disclosed in note 5 of the financial statements. including expectations of future events that are believed to be reasonable under the circumstances. after taking into account the estimated residual value. actual write-offs would be higher than estimated. Impairment loss on intangible assets Other intangible assets are measured at cost less accumulated amortisation and impairment losses. The Group reviews the carrying value of these assets with the recoverable amount from the cash-generating unit to which the intangible asset arises.

563. (PGH).500. a wholly-owned subsidiary of Parkway Holdings Limited. to reflect more appropriately the way in which economic costs and benefits are derived. (GCRC). a wholly-owned subsidiary of PGH. Comparative amounts were reclassified for consistency. for a consideration of $6.000. (Mitsui).000 shares in the capital of Gleneagles CRC Pte. Upon completion. Ltd.369 53. entered into a subscription agreement with Mitsui & Co. the Group modified the income statement presentation of specialist fees from gross basis to net basis. where Mitsui will subscribe for 490.5) is as follows: 1 January 2009 S$’000 Statement of changes in equity Increase in accumulated profits 53.369 68.483 3.000 in relation to specialist fees earned being reclassified from purchase and contracted services to revenue. Ltd. Ltd.28 0. Mitsui will have a 49% stake in GCRC and PGH’s investment will be reduced to 51%.32 14.220 68. which resulted costs of $30.886 31 December 2009 S$’000 Statement of financial position Increase in interests in associates Increase in accumulated profits Income statement Increase in share of profits of associates Increase in profit for the period Earnings per share Increase in basic earnings per share (cents) Increase in diluted earnings per share (cents) Change in classification During the year. 1.220 3.28 1.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 35 COMPARATIVE INFORMATION Change in accounting policy The financial impact on the Group arising from the change in accounting policy (see note 2. Parkway Group Healthcare Pte.886 53.483 14.666 31 December 2008 S$’000 1 January 2008 S$’000 36 SUBSEqUENT EVENTS On 14 January 2010.32 0. 139 .886 50.

while maintaining control. The initial application of these standards (and its consequential amendments) and interpretations is not expected to have any material impact on the Group’s financial statements.FINANCIAL STATEMENTS Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2009 37 NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED The Group has not applied the following accounting standards (including their consequential amendments) and interpretations that have been issued as of the balance sheet date but are not yet effective: Amendments to FRS 32 Amendments to FRS 39 Amendments to FRS 102 FRS 103 (revised) and FRS 27 (revised) Various FRSs INT FRS 117 Financial Instruments: Presentation – Classification of Rights Issues Financial Instruments: Recognition and Measurement – Eligible Hedged Items Share-based Payment – Group Cash-settled Share-based Payment Transactions FRS 103 (revised) Business Combinations and FRS 27 (revised) Consolidated and Separate Financial Statements Improvements to FRSs 2009 Distributions of Non-Cash Assets to Owners The amendments to FRS 39 on eligible hedged items will become effective for the Group’s financial statements for the year ending 31 December 2010. When the Group loses control of a subsidiary. The revised FRS 103 will be applied prospectively and therefore there will be no impact on prior periods in the Group’s financial statements for the year ending 31 December 2010. The Group has not considered the impact of accounting standards issued after the balance sheet date. INT FRS 117 will become effective for the Group’s financial statements for the year ending 31 December 2010. INT FRS 117 prescribes the accounting treatment of distributions of non-cash assets by an entity to owners. The Group is in the process of assessing the impact of these amendments. The application of these amendments is not expected to have any significant impact on the Group’s financial statements. Improvements to FRSs 2009 will become effective for the Group’s financial statements for the year ending 31 December 2010. and (ii) the designation of inflation in particular situations. The amendments clarify how the principles that determine whether a hedged risk or portion of cash flows is eligible for designation should be applied in two particular situations: (i) the designation of a one-sided risk in a hedged item. 140 Parkway Holdings Limited Annual Report 2009 . FRS 27 (revised) requires accounting for changes in ownership interests by the Group in a subsidiary. and requires greater use of fair values. FRS 103 (revised) and FRS 27 (revised) will become effective for the Group’s financial statements for the year ending 31 December 2010. INT FRS 117 will be applied prospectively. to be recognised as an equity transaction. The revised FRS 27 is not expected to have a significant impact on the consolidated financial statements. recognition or measurement and disclosure purposes. It clarifies that such distributions should be measured at the fair value of the non-cash assets and the difference between the carrying amount and the fair value of non-cash assets to be distributed should be recognised in the profit or loss. Improvements to FRSs 2009 contain amendments to numerous accounting standards that result in accounting changes for presentation. FRS 103 (revised) introduces significant changes to the accounting for business combinations both at the acquisition date and post acquisition. any interest retained in the former subsidiary will be measured at fair value with the gain or loss recognised in profit or loss.

Parcel 726 17. Malaysia 7. #03-02.319 Hospital building – 18. #04-02 Henderson Industrial Park Radiologic Clinic Lot 5350 Mukim 5 situated at Block 130 Jurong East Street 13 #01-219 145 Clinic – 145 100 91-year lease commencing 1 April 1993 940 Warehouse and store – 940 100 Freehold Location (sq m) Existing use saleable area (sq m) Group’s effective interest % Tenure Leasehold land Lot 794V Townsubdivision 29.226 100 99-year lease commencing 20 May 2008 Overseas Gleneagles Medical Centre. #01-02.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 1 SUMMARY OF MAJOR PROPERTIES The major properties of the Group are: Approximate total lettable/ Site area Description Singapore Warehouse and store Lot 2301/U2 Mukim 1 situated at 213 Henderson Road. a 217-bed private hospital 1 Jalan Pangkor Penang.226 In the course of construction – 17.600 70 Freehold 141 . #02-02.

872 399 3.070 603 – – – – – – 2008 $’000 Aggregate value of all transactions conducted under a shareholders’ mandate pursuant to Rule 920 of the SGX-ST Listing Manual (excluding transactions less than $100.668 260 1. Pantai Integrated Rehab Services Sdn Bhd Parkway Life REIT Telekom Malaysia Berhad Tenaga National Berhad TPG Capital.000) 2009 $’000 2008 $’000 3 MATERIAL CONTRACTS Except as disclosed in Interested Person Transactions. LP – – – 51.068 – – – 121 695 6.906 273 197 649 – 895 8.870 – – – 288 – 696 3.272 – – 202 140 235 – 48. each director or controlling shareholder.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 2 INTERESTED PERSON TRANSACTIONS Aggregate value of all transactions during the financial year ended (excluding transactions less than $100.000 and transactions conducted under a shareholders’ mandate pursuant to Rule 920 of the SGX-ST Listing Manual) 2009 $’000 Interested person Provision of goods and services Malaysian Airline System Berhad Pantai Holdings Berhad Parkway Life REIT Telekom Malaysia Berhad Tenaga Nasional Berhad TNB Integrated Learning Solutions Sdn Bhd Purchase of goods and services Chiang See Hiang Pantai Education Sdn. either still subsisting at the end of the financial year or if not then subsisting.761 – – – – – – – – – – 6. Bhd. entered into since the end of the previous financial year. there were no other material contracts of the Company or its subsidiaries involving the interests of the Chief Executive Officer. 142 Parkway Holdings Limited Annual Report 2009 .

143 . Guideline 1. however. establishing goals for Management and monitoring the achievement of these goals. The Board intends to hold about four scheduled meetings each year. The Articles of Association of the Company allow Board meetings to be conducted by way of telephonic and video conference (CCG 2005. Board of Directors Role of the Board of Directors The primary role of the board of directors of the Company (the Board) is to protect and enhance long-term shareholder value. It is also responsible for the overall corporate governance of the Group including setting its strategic direction. the Share Purchase Committee.4). hold unscheduled strategy meetings and/or emergency meetings to address/consider certain specific significant matters or transactions that may arise from time to time. This statement outlines the main corporate governance practices that are adopted by the Company.3): (a) (b) (c) (d) (e) (f) (g) the Executive Committee. It may. the Audit & Risk Management Committee. Board Processes To assist in the execution of its responsibilities. the Management Committee. It sets the overall strategy for the Group and supervises the management of the Group (the Management). which will be reviewed on a regular basis. the Nominating Committee.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT The Company is committed to complying with the Code of Corporate Governance issued by the Corporate Governance Committee in March 2001 and revised in 2005 (CCG 2005) so as to ensure greater transparency and protection of shareholders’ interests. the Board has established the following specialised committees (CCG 2005. the Remuneration Committee. Guideline 1. Each of the above committees has its respective written mandates and operating procedures. and the Strategic Planning Committee.

authorisation of major transactions.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Directors’ meetings held in 2009 During the financial year ended 31 December 2009. Guideline 1.5): • • • • • • approval of quarterly results announcements.4): Name of director Richard Seow Yung Liang Dr Lim Cheok Peng Alain Ahkong Chuen Fah Chang See Hiang Timothy David Dattels Ranvir Dewan Dato’ Mohammed Azlan b. approval of the annual report and financial statements. Guideline 1. without limitation. and convening of shareholders’ meetings. the Board held six meetings. 144 Parkway Holdings Limited Annual Report 2009 . corporate events and/or actions (CCG 2005. Mohd Shariff (Alternate to Mr Ganen Sarvananthan) * Appointed on 13 October 2009 Board meetings attended 6 6 5 5 5 3 1 6 5 5 6 – 1 4 Matters Requiring Board Approval The Board meets to consider the following. Hashim* Ho Kian Guan Ganen Sarvananthan Steven Joseph Schneider Ashish Jaiprakash Shastry Ho Kian Hock (alternate to Mr Ho Kian Guan) Tanguy Vincent Serra (alternate to Mr Timothy David Dattels) Ahmad Shahizam b. The Directors’ attendance at those meetings are disclosed below (CCG 2005. declaration of interim dividends and proposal of final dividends. approval of corporate strategies.

MBA (Finance) Committee and Member M. Board Composition and Balance The names of the directors of the Company in office as at the date of this report are set out in the Directors’ Report. the Board comprises twelve suitably qualified members (CCG 2005. FCFPS. Med.. FAMS (Cardiology) Dr Tan See Leng Age: 45 23/02/2010 Executive/ non-independent CEO Designate – MBBS. MBA (ChicagoBooth) Alain Ahkong Chuen Fah Age: 62 14/02/2001 Non-executive/ independent Member Chairman of Audit & Risk Management Committee and Member of Nominating and Share Purchase Committees Chartered Tax Adviser professional qualifications BS (Economics). Guideline 2. MMed. and Member of Remuneration. Guidelines 2.6).6): Academic and Date of Name of director Richard Seow Yung Liang Age: 48 appointment 10/06/2005 Nature of appointment Non-executive/ independent Prime function Chairman Other functions Chairman of Executive and Strategic Planning Committees.3). The Board will constantly examine its size with a view to determining its impact upon its effectiveness (CCG 2005. Med. FRCP (Edin). The Board has reviewed its composition and is satisfied that such composition is appropriate. MRCP.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Training for Directors The Directors may participate in seminars and/or discussion groups to keep abreast of latest developments which are relevant to the Group (CCG 2005. FRCP (Glasg). Int. Nominating and Management Committees Dr Lim Cheok Peng Age: 63 07/06/2000 Executive/ non-independent Executive Vice Chairman/ Managing Director Chairman of Management of Executive and Strategic Planning Committees MBBS. Guideline 1. 145 . As at the date of this report.4 and 4.

Australia. Academy of Fellows. Member. MBA professional qualifications LL. Hashim Age: 53 13/10/2009 Non-executive/ non-independent Member – Bachelor of Economics (Monash). Fellow. Malaysian Institute of Accountants. and Member of Audit & Risk Management Committee Timothy David Dattels Age: 52 10/06/2005 Non-executive/ independent Member Chairman of Remuneration Committee and Member of Nominating Committee Ranvir Dewan Age: 56 08/03/2007 Non-executive/ independent Member – B Com (Hons) FCA (ICAEW) CA (CICA) Dato’ Mohammed Azlan b. Malaysian Institute of Directors Ho Kian Guan Age: 64 25/06/1985 Non-executive/ independent Member Member of Audit & Risk Management Committee BA Comm BA (Hons).B (Hons) 146 Parkway Holdings Limited Annual Report 2009 .SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Board Composition and Balance (cont’d) Academic and Date of Name of director Chang See Hiang Age: 56 appointment 28/08/1997 Nature of appointment Non-executive/ independent Prime function Member Other functions Chairman of Nominating and Share Purchase Committees. Institute of Chartered Accountants.

warrants and share options in the Company and in related corporations (other than wholly-owned subsidiaries) are set out in the Directors’ Report.B. Remuneration.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Board Composition and Balance (cont’d) Academic and Date of Name of director Ganen Sarvananthan Age: 35 Steven Joseph Schneider Age: 50 Ashish Jaiprakash Shastry Age: 34 10/06/2005 Non-executive/ independent Member Member of Executive. England & Wales BA of Business Administration Particulars of interests of directors who held office at the end of the financial year in shares. Barrister-at-law.B (Hons). Master in Public Administration – ESCP-EAP – BSc Engineering A. 147 . Audit & Risk Management. debentures. in Econs (Hons) 08/03/2007 Non-executive/ independent Member appointment 07/08/2008 Nature of appointment Non-executive/ non-independent Prime function Member Other functions Member of Executive.B (Hons). Shariff Age: 38 07/08/2008 – 26/06/2008 – 25/06/1985 – Alternate to Ho Kian Guan Alternate to Timothy David Dattels Alternate to Ganen Sarvananthan – LL. Mohd. Strategic Planning and Management Committees Ho Kian Hock Age: 62 Tanguy Vincent Serra Age: 31 Ahmad Shahizam b. Remuneration and Nominating Committees Member of Strategic Planning Committee professional qualifications LL.

The criterion of independence is based on the definition given in the CCG 2005. encourage constructive relations between the Executive Directors and Non-executive Directors.5). Principle 3 and Guideline 3.1). with the exercise of the director’s independent business judgement with a view to the best interests of the Company (CCG 2005. increased accountability and greater capacity of the Board for independent decision making (CCG 2005. timely and clear information. or be reasonably perceived to interfere.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Independent Members of the Board of Directors The Board has eight independent members. and the strategies proposed by the management are fully discussed. and promote high standards of corporate governance. The Chairman shall.1). The posts of Chairman and Managing Director are kept separate and these positions are held by Mr Richard Seow Yung Liang and Dr Lim Cheok Peng respectively (CCG 2005. Mr Ho Kian Guan. Mr Steven Joseph Schneider and Mr Ashish Jaiprakash Shastry. encourage constructive relations between the Board and the Management. Non-executive members of the Board exercise no management functions in the Company or any of its subsidiaries. Guideline 3. Guideline 2. rigorously examined and shall take into account the long-term interests of the shareholders. in addition: (a) (b) (c) (d) (e) (f) (g) lead the Board to ensure its effectiveness on all aspects of its role and set its agenda. ensure effective communication with shareholders. facilitate the effective contribution of Non-executive Directors in particular. representing 67% of the Board.1). (CCG 2005. employees. Mr Alain Ahkong Chuen Fah. suppliers and the communities in which the Group conducts its business (CCG 2005. Guideline 3. The Board considers an “independent” director as one who has no relationship with the Company. customers. Both the Chairman and the Managing Director shall ensure an appropriate balance of power. ensure that the directors receive accurate. the role of the non-executive directors is particularly important in ensuring that the performance of management in meeting agreed goals and objectives is reviewed and the reporting of performance is monitored. Guideline 2. which ensures that there is a balance of power and authority at the top of the Group. its related companies or its officers that could interfere.2) 148 Parkway Holdings Limited Annual Report 2009 . Mr Ranvir Dewan. Chairman and Managing Director There is a clear division of responsibilities between the Chairman and the Managing Director. The Board has delegated the day-to-day running of the Group to the Managing Director. They are Mr Richard Seow Yung Liang. Although all the directors have equal responsibility for the performance of the Group. Mr Timothy David Dattels. Mr Chang See Hiang.

Guideline 11. as the Board interprets such qualification in its business judgement (CCG 2005.2). in line with the overall strategy set by the Board.8). full access to and co-operation by the Management and full discretion to invite any director or executive officer to attend its meetings. Guidelines 11. It is currently chaired by Mr Richard Seow Yung Liang and comprises both non-executive directors and the executive director.3): Executive Committee The Executive Committee was established in February 1987. Non-executive Director 6 Non-executive Director 4 Executive Director 7 Appointment Non-executive Director Number of meetings attended 7 149 . management of financial and control risks. and reasonable resources to enable it to discharge its functions properly (CCG 2005.1 and 11. The Executive Committee is entrusted with the review of the Group’s business and affairs. The Board is of the view that the members of the ARMC are appropriately qualified to discharge their responsibilities and they have accounting and/or related financial management expertise or business experience. the Board has delegated specific functions to the following committees (CCG 2005. The ARMC has explicit authority to investigate any matter within its terms of reference. It is currently chaired by Mr Alain Ahkong Chuen Fah and comprises three other non-executive directors. Meetings of the Executive Committee are held regularly. There were seven meetings held during the year and attendance was as follows (CCG 2005. Guideline 11.4): Name of director Richard Seow Yung Liang (Chairman) Dr Lim Cheok Peng (Member) Ganen Sarvananthan (Member) Ashish Jaiprakash Shastry (Member) Audit & Risk Management Committee The Audit Committee was established in June 1990 and in May 2007. namely Mr Chang See Hiang. The ARMC assists the Board in fulfilling its responsibilities in financial reporting.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Board Committees To assist the Board in the execution of its duties. Mr Ho Kian Guan and Mr Ashish Jaiprakash Shastry. Guideline 1. the scope of the Audit Committee’s responsibilities was extended to include risk management and the Committee was re-designated as the Audit and Risk Management Committee (ARMC). and monitoring of the internal control systems.3). All four directors are non-executive and independent (CCG 2005. Guideline 1.

1).SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Board Committees (cont’d) Audit & Risk Management Committee (cont’d) The ARMC has reviewed the scope and results of the audit and its cost effectiveness and the independence and objectivity of the external auditors and such reviews are conducted on an annual basis (CCG 2005. without the presence of the Management. Guideline 11. Based on the Internal Auditor’s reports. it is satisfied that there are adequate internal controls in the Company (CCG 2005.6). The ARMC has reviewed and will review the significant financial reporting issues and judgements. the management of financial risks. Guidelines 11.5). formal announcements relating to the Company’s financial performance. The ARMC shall review arrangements by which staff of the Company may. Guidelines 13. to discuss any matters that the Audit Committee or the auditors believe should be discussed in private (CCG 2005. All interested person transactions. The ARMC shall ensure that arrangements are in place for independent investigation of such matters and for appropriate follow up action (CCG 2005.4(a)).1). have been reviewed by the ARMC to ensure that such transactions have been carried out on normal commercial terms and that the terms are not prejudicial to the interests of the Company and its minority shareholders. the ARMC has also considered and reviewed the methods and/or procedures for the review of interested person transactions and is of the view that these methods and/or procedures remain appropriate and sufficient. the effectiveness of the Company’s internal audit function. Guideline 11. Guideline 12. in confidence. The Internal Auditor’s primary line of reporting is to the Chairman of the ARMC although the Internal Auditor also reports administratively to the Managing Director (CCG 2005. Guidelines 11. In accordance with the IPT Mandate. including those carried out pursuant to the IPT Mandate approved by shareholders at the Extraordinary General Meeting held on 15 April 2009 (“IPT Mandate”).3 and 13. The ARMC has reviewed the Company’s risk management policies and systems.4(a) and 11. Guideline 13. internal financial controls. The ARMC has reviewed the adequacy of the internal audit function by ensuring that the internal audit function is adequately resourced and has appropriate standing within the Company and such reviews are conducted on an annual basis (CCG 2005. Where the external auditors also supply a substantial volume of non-audit services to the Company. and the internal controls in place. Details of the interested person transactions for the financial year ended 31 December 2009 are set out on page 142 of the Annual Report.7). the ARMC shall keep the nature and extent of such services under review so as to seek to balance the maintenance of objectivity and value for money (CCG 2005.4). the adequacy of internal controls. operational and compliance controls. The ARMC can hold meetings with the external auditors. and the Group’s process for monitoring compliance with the laws and regulations and its own code of business conduct (CCG 2005. Guideline 11. as applicable. raise concerns about possible improprieties in matters of financial reporting or other matters. 150 Parkway Holdings Limited Annual Report 2009 .4(b) to (e)).

communicate risk interrelationships and manage risk profiles across the organisation. The ARMC seeks regular assurance from Management to ensure alignment of risk management strategies and culture with the Group’s business objectives and that key risks are effectively managed. that appropriate risk reporting structure is established to facilitate reporting of risks to Management and the Board.1 and 4. including recommending the Chairman for the Board and for each Board committee (CCG 2005.3 and 4. Guideline 11. and that there are adequate resources to support the Group’s risk management function in fulfilling its responsibilities. There were five meetings held during the year and attendance was as follows (CCG 2005. Mr Alain Ahkong Chuen Fah. Non-executive/independent 5 Non-executive/independent 4 Non-executive/independent 4 Appointment Non-executive/independent Number of meetings attended 5 151 .1). (b) determine annually whether a director is independent and whether he is able to carry out his duties as a director (CCG 2005. and (c) assess the effectiveness of the Board as a whole and the contribution by each individual director to the effectiveness of the Board (CCG 2005. namely Mr Chang See Hiang (Chairman). that a comprehensive risk management approach is in place to identify risks.4). Guideline 4. the Committee assists the Board in ensuring that the Management maintains a sound system of internal controls and risk management processes to safeguard and enhance enterprise value.8): Name of director Alain Ahkong Chuen Fah (Chairman) Chang See Hiang (Member) Ho Kian Guan (Member) Ashish Jaiprakash Shastry (Member) Nominating Committee The Nominating Committee was established on 24 February 2003 and comprises five members. Guidelines 4. Mr Richard Seow Yung Liang. Mr Ganen Sarvananthan (CCG 2005.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Board Committees (cont’d) Audit & Risk Management Committee (cont’d) As part of its risk management function. Guidelines 4. Mr Timothy David Dattels and one non-independent director. Principle 5). The role of the Nominating Committee is to: (a) make recommendations to the Board on all Board and Board committees appointments and re-nominations. four of whom are independent.2).

4): Name of director Chang See Hiang (Chairman) Richard Seow Yung Liang (Member) Alain Ahkong Chuen Fah (Member) Timothy David Dattels (Member) Ganen Sarvananthan (Member) Non-executive/non independent 2 Non-executive/independent 2 Non-executive/independent 2 Non-executive/independent 3 Appointment Non-executive/independent Number of meetings attended 3 152 Parkway Holdings Limited Annual Report 2009 . and (b) using a board self-assessment checklist (CCG 2005. including but not limited to the Managing Director.1 and 5. return on assets.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Board Committees (cont’d) Nominating Committee (cont’d) The Nominating Committee has adopted a formal assessment process to evaluate the Board’s performance and contribution of each individual director by (a) reviewing a completed individual director self-assessment form.4 and 5. Guidelines 4.2. Guidelines 5.5).3 and 5. The set of performance criteria includes the Company’s share price performance over a five year period benchmarked against the Singapore Straits Times Index and against the benchmark index of the Company’s industry peers.4). The Nominating Committee will also review and recommend to the Board on the appointment of key executives. The Nominating Committee has adopted a set of performance criteria that is linked to long-term shareholders’ value to be used for performance evaluation of the Board. The Nominating Committee has also adopted internal guidelines to address the competing time commitments that are faced when directors serve on multiple boards (CCG 2005. 5. There were three meetings held during the year and attendance was as follows (CCG 2005. Guidelines 5. return on equity and profitability on capital employed (CCG 2005.4). Guideline 1.

Singapore Hup Soon Global Corporation Limited (Resigned wef 30/4/2008) Lee Hing Development Limited (Resigned wef 17/7/2007) Dr Lim Cheok Peng Dr Tan See Leng 12/4/2007 N/A Parkway Trust Management Limited CFPS Holdings Pte Ltd Chairman of Board of Trustees of CFPS Holdings Pte Ltd Chairman of College Building Committee. Guideline 4. Limited Ranvir Dewan 12/4/2007 Shriram Transport Finance Co.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Board Committees (cont’d) Nominating Committee (cont’d) Further to the disclosure set out under the Board Composition and Balance section of the Corporate Governance Statement. Ltd PT Bank Tabungan Pensiunan Nasional Tbk Bank Thai Public Co. additional information on the directors is as follows (CCG 2005. San Francisco as Trustee Shangri-La Asia Ltd SingTao News Corp. Singapore Chairman of Republic Polytechnic. College of Family Physicians’ Singapore Alain Ahkong Chuen Fah Chang See Hiang 15/4/2009 12/4/2007 Hup Soon Global Corporation Limited Yeo Hiap Seng Limited Jardine Cycle & Carriage Limited MCL Land Limited STT Communications Ltd Timothy David Dattels 25/4/2008 Asian Art Museum. Ltd (Resigned wef 9/2/2009) 153 .6): Directorships or chairmanships both present and those held over the preceding three Date of last re-election Name of director Richard Seow Yung Liang as a director 25/4/2008 years in other listed companies and other major appointments Chairman of the Anglo-Chinese School Board of Governors.

Khazanah Nasional Berhad MobileOne Ltd (Resigned wef 24/7/2008) Steven Joseph Schneider 12/4/2007 United Test and Assembly Center Ltd (Appointed wef 01/2009) Hanaro Telecom Inc... Investments.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Board Committees (cont’d) Nominating Committee (cont’d) Directorships or chairmanships both present and those held over the preceding three Date of last re-election Name of director Dato’ Mohammed Azlan b. Hashim as a director N/A years in other listed companies and other major appointments Aseana Properties Limited Asiasons Capital Limited D&O Ventures Berhad Scomi Group Bhd Westcomb Financial Group Ltd SILK Holdings Berhad Proten Holdings Berhad (Resigned wef 12/2009) Golden Pharos Berhad (Resigned wef 06/2008) PECD Berhad (Resigned wef 02/2008) Ho Kian Guan 15/4/2009 Keck Seng (Malaysia) Berhad Keck Seng Investments (HK) Ltd Shangri-La Asia Ltd Shangri-La Hotel Ltd (Resigned wef 8/9/2008) Ganen Sarvananthan 15/4/2009 Executive Director. (Resigned wef 06/2008) Myer Group Pty Ltd (Resigned wef 10/2009) NIS Group Co. Ltd (Resigned wef 06/2009) Ashish Jaiprakash Shastry 15/4/2009 United Test and Assembly Center Ltd PT Bank Tabungan Pensiunan Nasional Tbk Parkway Trust Management Limited (Resigned wef 16/6/2009) Lee Hing Development Limited (Resigned wef 17/7/2007) 154 Parkway Holdings Limited Annual Report 2009 .

SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Board Committees (cont’d) Nominating Committee (cont’d) Directorships or chairmanships both present and those held over the preceding three Date of last re-election Name of director Ho Kian Hock (alternate to Ho Kian Guan) as a director N/A years in other listed companies and other major appointments Keck Seng Investments (HK) Ltd Keck Seng (Malaysia) Berhad Shangri-La Asia Ltd* Shangri-La Hotel Ltd* (Resigned wef 8/9/2008) Tanguy Vincent Serra (alternate to Timothy David Dattels) Ahmad Shahizam b. Investments. Shariff (alternate to Ganen Sarvananthan) * Alternate director N/A TDF SAS (Resigned wef 18/9/2008) N/A Director. Mohd. Khazanah Nasional Berhad 155 .

and (c) recommend the remuneration of the non-executive directors for approval at the annual general meeting (AGM). the vesting period (if any) and the extent which the shares under an award shall be released on the performance target(s) being satisfied.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Remuneration Committee The Remuneration Committee was established in March 1988. which offers an independent perspective. Guideline 7. Members of the Remuneration Committee will ensure that they do not determine or approve the grant of any award to themselves (CCG 2005. Members of the Remuneration Committee will ensure that they do not determine or approve any grant of share options to themselves (CCG 2005. Principle 7). the date of the grant and the price thereof.3). to determine and approve the list of grantees of the share options.2). the Remuneration Committee is responsible for the administration of the Parkway Performance Share Plan (the Share Plan) in accordance with the Rules of the Share Plan.2). inter alia.1). It is currently chaired by Mr Timothy David Dattels. reviews the remuneration packages and the procedures for fixing the remuneration packages of individual directors and key executives. The Remuneration Committee. However. Principle 7). the performance period. the prescribed performance targets. The powers and duties of the Remuneration Committee under the Rules of the Share Plan include. the determination and approval of the list of participants of the Share Plan. The Remuneration Committee will recommend a framework of remuneration for the Board and key executives and submit the recommended framework for endorsement by the entire Board (CCG 2005. Guideline 7. 156 Parkway Holdings Limited Annual Report 2009 . Guideline 8. Guideline 7. Principle 7). namely Mr Richard Seow Yung Liang. In addition. The Remuneration Committee shall: (a) ensure that non-executive directors should not be over-compensated to the extent that their independence may be compromised (CCG 2005. (b) have the authority to consult experts (inside and/or outside the Company) on the remuneration of all directors. the number of shares which are the subject of an award. the date on which the award will be granted. if considered necessary (CCG 2005. members of the Remuneration Committee will ensure that they do not set their own remuneration (CCG 2005. The Remuneration Committee is also assigned the responsibility of administering the Parkway Share Option Scheme 2001 (Parkway Scheme 2001) in accordance with the rules of the scheme. an independent non-executive director and comprises three other non-executive directors. Mr Ashish Jaiprakash Shastry and Ganen Sarvananthan (CCG 2005.

an independent non-executive director with Mr Alain Ahkong Chuen Fah. transferable share subscriptions rights.4 and 9. the Company did not purchase any of the Company’s shares. There were ten resolutions in writing circulated during the year with no physical meeting held.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) There were two meetings held during the year and attendance was as follows (CCG 2005. for and on behalf of the Company.independent – Non-executive/independent 2 Non-executive/independent 1 Appointment Non-executive/independent Number of meetings attended 2 157 . amalgamations and splitting of shares. Guidelines 1.4). Dr Lim Cheok Peng (Chairman) and two non-executive directors. It is currently chaired by Mr Chang See Hiang. Non-executive/non. There was no resolution in writing circulated and no physical meeting held during the year (CCG 2005.1): Name of director Timothy David Dattels (Chairman) Richard Seow Yung Liang (Member) Ashish Jaiprakash Shastry (Member) Ganen Sarvananthan (Member) Management Committee The Management Committee was established in April 1985 and comprises one executive director. also an independent non-executive director. loan stocks and the issue of new certificates to replace any lost certificates in respect of any of the above-mentioned securities and in respect of the Parkway Scheme 2001. During the financial year ended 31 December 2009. Share Purchase Committee The Share Purchase Committee was established in May 2003. Mr Richard Seow Yung Liang and Mr Ashish Jaiprakash Shastry. Guidelines 1. The role of the Share Purchase Committee is to determine/decide the number of shares of the Company to purchase and the price at which such shares may be purchased. The duties of the Management Committee include approving of transfers. being the one member.

namely.4): Name of director Richard Seow Yung Liang (Chairman) Dr Lim Cheok Peng (Member) Ashish Jaiprakash Shastry (Member) Steven Joseph Schneider (Member) Criteria for Board Membership Candidates for the Board are selected for their character. judgement. New directors may be appointed by way of a Board resolution upon the recommendation of the Nominating Committee but such directors shall submit themselves for re-election at the next AGM. regional and international markets. experience and where applicable. Dr Lim Cheok Peng. prior government service and familiarity with national and international issues affecting business will also be relevant criteria for consideration (CCG 2005. Mr Ashish Jaiprakash Shastry and Mr Steven Joseph Schneider. Guidelines 1. There was one meeting held during the year and attendance was as follows (CCG 2005. It is chaired by Mr Richard Seow Yung Liang and comprises three other members.5). Guideline 4. The Committee was established to explore. develop. Final approval of a candidate is determined by the Board. In the selection and appointment of new directors to the Board. Guideline 4.4). Non-executive/independent 1 Non-executive/independent – Executive/non-independent 1 Appointment Non-executive/independent Number of meeting attended 1 158 Parkway Holdings Limited Annual Report 2009 . Scientific expertise. Where a director has multiple board representations. the Nominating Committee will evaluate the capabilities of the nominated new director taking into consideration his academic and professional qualifications. and recommend medium and long-term business strategies and initiatives for the Group in the local. his shareholding in the Company and its subsidiaries as well as consider how such nominated new director will fit in the overall competent matrix of the Board before making its recommendation to the Board (CCG 2005.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Strategic Planning Committee The Strategic Planning Committee was established in July 2005. business experience and acumen.4). Guideline 2. the Nominating Committee will evaluate whether or not a director is able to and has been adequately carrying out his duties as director of the Company (CCG 2005.

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4

CORPORATE GOVERNANCE STATEMENT (cont’d) Criteria for Board Membership (cont’d) The Articles of Association of the Company provide that at each AGM of the Company, one-third of the directors, including the Managing Director, shall retire from office by rotation provided always that every director, including a managing director, shall retire from office at least once in every three years (CCG 2005, Guideline 4.2). The selection of directors to retire is on the basis of those who have been longest in office since their last election and as between directors of equal seniority, the directors to retire shall be selected from among them by agreement or, in the absence thereof, by lot. A retiring director is eligible for re-election by shareholders of the Company at the AGM. Access to Information The Company fully recognises that the continual flow of relevant information on an accurate and timely basis is critical for the Board to be effective in the discharge of its duties. Accordingly, directors will receive a regular supply of information from Management about the Group so that they are equipped to play as full a part as possible in Board meetings. Detailed Board papers are prepared for each meeting of the Board. The Board papers shall include sufficient information from Management on financial, business and corporate issues of the Company to enable the directors to be properly briefed on issues to be considered at Board meetings. Information provided shall include background or explanatory information relating to matters to be brought before the Board, copies of disclosure documents, budgets, forecasts and monthly internal financial statements (CCG 2005, Guidelines 6.1 and 6.2). All directors shall have unrestricted access to the Group’s records and information and shall receive detailed financial and operational reports from the Management so as to enable them to carry out their duties. Directors may also liaise with the Management, and may consult with other employees and seek additional information if required (CCG 2005, Guidelines 6.1 and 6.2). In addition, directors shall have separate and independent access to advices and services of the Company Secretary, who is responsible to the Board for advising on and implementation of the Group’s compliance requirements pursuant to the relevant statutes and regulations. Under the direction of the Chairman, the Company Secretary’s responsibilities shall include ensuring good information flows within the Board and its committees and between Management and Non-executive Directors, as well as facilitating orientation and assisting with professional development as required. The Company Secretary should attend all board meetings (CCG 2005, Guideline 6.3). The appointment and the removal of the Company Secretary shall be a matter for the Board as a whole (CCG 2005, Guideline 6.4). Each director has the right to seek independent legal and other professional advice, at the Company’s expense, concerning any aspect of the Group’s operations or undertakings in order to fulfil his role and responsibilities as a director (CCG 2005, Guideline 6.5).

159

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CORPORATE GOVERNANCE STATEMENT (cont’d) Remuneration Matters The Group’s remuneration policy is to provide compensation packages at market rates which will reward successful performance and attract, retain and motivate managers and directors (CCG 2005, Principles 8 and 9, Guideline 8.5). The Company currently does not have a formal service contract with non-executive directors. The executive directors each has a service contract, which is subject to termination by the relevant subsidiary of the Company by giving not less than three months’ notice (CCG 2005, Guidelines 8.3 and 8.6). Company’s directors receiving remuneration from the Group for the years ended 31 December 2009 and 31 December 2008 are set out below (CCG 2005, Guidelines 9.1 and 9.2): Number of directors 2009 Remuneration band^ S$2,250,000 to below S$2,500,000 S$2,000,000 to below S$2,250,000 S$750,000 to below S$1,000,000 S$500,000 to below S$750,000 S$250,000 to below S$500,000 Below S$250,000 Total – 1 – 1 1 8 11 1 – 1 – – 9 11 2008

Summary compensation table for the directors of the Company and key executives of the Group for the year ended 31 December 2009 is set out below (CCG 2005, Guidelines 9.1 and 9.2): Allowances and other Salary % Directors of the Company S$2,000,000 to below S$2,250,000 Dr Lim Cheok Peng S$500,000 to below S$750,000 Richard Seow Yung Liang S$250,000 to below S$500,000 Alain Ahkong Chuen Fah – – 47 53 100 – – 20 80 100 30 27 – 43 100 Bonus % Fees % benefits^ % Total %

160

Parkway Holdings Limited

Annual Report 2009

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4

CORPORATE GOVERNANCE STATEMENT (cont’d) Remuneration Banding (cont’d) Allowances and other Salary % Directors of the Company (cont’d) Below S$250,000 Chang See Hiang Timothy David Dattels Ranvir Dewan Dato’ Mohammed Azlan b. Hashim* Ho Kian Guan Ganen Sarvananthan Steven Joseph Schneider Ashish Jaiprakash Shastry Key Executives of the Group S$750,000 to below S$1,000,000 Tan See Leng** Daniel James Snyder# S$500,000 to below S$750,000 Goh Jin Hian Molly Foo Jeffrey H Staples Tan See Haw June Tay S$250,000 to below S$500,000 Fong Choon Khin Raju Narayan Ann Yong
^

Bonus %

Fees %

benefits^ %

Total %

– – – – – – – –

– – – – – – – –

50 44 48 100 54 100 48 67

50 56 52 – 46 – 52 33

100 100 100 100 100 100 100 100

44 38

24 –

– –

32 62

100 100

44 56 45 70 53

17 13 8 12 15

– – – – –

39 31 47 18 32

100 100 100 100 100

58 60 55

13 13 15

– – –

29 27 30

100 100 100

* ** #

Includes equity compensation awarded under the Parkway Scheme 2001 and Share Plan, based on fair value at grant date. The actual number of performance shares to be delivered will depend on the achievement of prescribed performance targets as set out in the Share Plan. Appointed on 13/10/2009 For the period from 16/03/2009 to 31/12/2009 Left on 18/06/2009

161

the ARMC will: (a) satisfy itself. Guideline 9. as a system is designed to manage rather than eliminate the risk of failure to achieve business objectives. and can provide only reasonable and not absolute assurance against material misstatement or loss.1). (b) ensure that a review of the effectiveness and adequacy of the Group’s internal controls.2). Guideline 10.e. 162 Parkway Holdings Limited Annual Report 2009 . position and prospects on a monthly basis (CCG 2005.1). Such review can be carried out by internal and/or external auditors (CCG 2005. and reports to regulators (if required) (CCG 2005. compliance controls and risk management systems in the Company (CCG 2005. Nonetheless.SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Remuneration Banding (cont’d) The Company does not have any long-term incentive scheme apart from the existing Parkway Scheme 2001 and the Share Plan (CCG 2005. position and prospects which extends to interim and other price sensitive public reports. operational. Accountability and Audit In presenting the annual financial statements and quarterly announcements to Shareholders. operational and compliance controls. None of the employees holding managerial position within the Group during the year was an immediate family member of any director or the Managing Director of the Company (CCG 2005. Guideline 12. Management currently provides the Board with appropriately detailed management accounts of the Group’s performance. and risk management policies and systems. Based on the ACRM review.4). (c) ensure that the internal control recommendations made by internal and external auditors have been implemented by the Management. including financial.3). Guideline 10. mechanisms and processes. by such means as it shall consider appropriate. the Board is satisfied that there are adequate internal controls including financial. and (d) ensure that the Board is in the position to comment on the adequacy of the internal controls of the Group. Guidelines 9. Guidelines 8.4 and 9.4). is conducted at least annually.2). Details of the Parkway Scheme 2001 and the Share Plan are set out in the Directors’ Report (CCG 2005. but recognises that no cost effective internal control system will preclude all errors and irregularities.2 and 9. Internal Controls The Board acknowledges that it is responsible for the overall internal control framework. that adequate counter measures (i. such as sound internal control systems) are in place to identify and mitigate any material business risks associated with the Group. Guideline 12. it is the aim of the Board to provide Shareholders with a balanced and comprehensible assessment of the Group’s performance.

also be present to assist the directors in addressing any relevant queries by Shareholders (CCG 2005. Guideline 14. (c) notices of and explanatory memoranda for annual general meetings and extraordinary general meetings. Where there is inadvertent disclosure made to a selected group. as appropriate. the internal audit function provides reasonable assurance that the risks incurred by the Group in its activities have been identified. The Board makes every effort to ensure that the annual report includes all relevant information about the Group. the Board’s policy is that Shareholders are informed of all major developments of the Group. The chairpersons of the ARMC. including future developments and other disclosures required by the Act and Singapore Financial Reporting Standards.com at which Shareholders can access information on the Group. Nominating Committee and/or Remuneration Committee should. Guideline 13.2). Shareholders are encouraged to attend the AGM to ensure a high level of accountability and to stay informed of the Group’s strategy and goals. the Company will make the same disclosure publicly as soon as practicable (CCG 2005. Information shall be communicated to Shareholders on a timely basis.3). Principle 13). Communication with Shareholders In line with continuous disclosure obligations of the Company. and the Group’s website at http://www. The AGM is the principal forum for dialogue with Shareholders. The external auditor should. 163 . be present and available to address questions at general meetings. (b) quarterly results announcements comprising a summary of the financial information and affairs of the Group for the relevant period. press releases on major developments of the Group.2).SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) Internal Audit The Group has an in-house internal audit function that is independent of the activities it audits (CCG 2005. (d) (e) (f) (g) press and analyst briefings for the Group’s financial results as well as other briefings. In addition. The internal auditors are expected to meet or exceed the standards set by nationally or internationally recognised professional bodies including the Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors (CCG 2005. Internal audit also makes recommendations to enhance the effectiveness and efficiency of the Group. where possible.parkwayholdings. Communication is made through: (a) annual reports that are prepared and issued to Shareholders. Guideline 15. disclosures to the SGX-ST. Chapter 50 (the Act). analysed and adequately managed by the Management. where possible. The internal audit unit was established in 1996 to review the effectiveness of the material internal controls of the Group. In this framework. pursuant to the SGX-ST Listing Manual and the Singapore Companies Act.

SUPPLEMENTARY INFORMATION SGX-ST Listing Manual Requirements YEAR ENDED 31 DECEMBER 2009 4 CORPORATE GOVERNANCE STATEMENT (cont’d) The notice of the AGM is despatched to Shareholders. It has adopted the best practices on dealings in securities as set out in Rule 1207 (18) of the SGX-ST Listing Manual.1). together with explanatory notes or a circular on items of special business. Guideline 15. by an explanation for the proposed resolution.2). The Board welcomes questions from Shareholders who have an opportunity to raise issues either informally or formally before or at the AGM (CCG 2005. setting out the implications of insider trading and guidance on such dealings. where appropriate. 5 DEALING IN SECURITIES The Company has issued a policy on dealings in the securities of the Company to its directors and Management. Guideline 15. 164 Parkway Holdings Limited Annual Report 2009 . at least 16 days before the meeting. Separate resolutions are proposed for substantially separate issues at the meeting (CCG 2005. Each item of special business included in the notice of the meeting is accompanied.

38 8.601.460.01 2.000 1.258.561.404 87. As at 3 March 2010.13 0.213.762 1.73 7.31 92.001 to 1.98 1.530.861 1.956 1.165.73 6.32 0.702. LTD HSBC (SINGAPORE) NOMINEES PTE LTD NEWBRIDGE SINGAPORE HEALTHCARE PARTNERS PTE.284 % 25.372.65 0.02 7.952.435 1.76 100.638 94.00 No.53 10.253 110.000.11 7.38 75.707.188 90.260 2.049 33.76 8. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Name of Shareholders RAFFLES NOMINEES (PTE) LTD CITIBANK NOMINEES SINGAPORE PTE LTD DBS NOMINEES PTE LTD NEWBRIDGE SINGAPORE CO-INVESTMENT PTE.000 1.405.359.255.299 87.Analysis of Shareholdings AS AT 3 MARCH 2010 No. approximately 38.076.405. of Size of Shareholdings 1 to 999 1.750.000.29 100.422.000 10.238 1.468 15.689.80 19.732 % 4.530.53 0.24 5.130.14 0.36 9.756 87.353.130.35 1.000 to 10.695 60. 165 .269 1.665.001 AND ABOVE TOTAL TOP 20 SHAREHOLDERS AS AT 3 MARCH 2010 (as shown in the Register of Members) No. of Shares 288. LTD NEWBRIDGE SINGAPORE MEDICAL PARTNERS PTE.045. LTD DBSN SERVICES PTE LTD KECK SENG (M) BERHAD UNITED OVERSEAS BANK NOMINEES (PTE) LTD MERRILL LYNCH (SINGAPORE) PTE LTD DB NOMINEES (SINGAPORE) PTE LTD MORGAN STANLEY ASIA (SINGAPORE) PTE LTD ING NOMINEES (SINGAPORE) PTE LTD BNP PARIBAS SECURITIES SERVICES SINGAPORE LIM CHEOK PENG UOB KAY HIAN PTE LTD OCBC NOMINEES SINGAPORE PRIVATE LIMITED PHILLIP SECURITIES PTE LTD LEE FOUNDATION (Others – Less than 1.000.703 7.167 3.348 2.00 No.703.916 25.00 Rule 723 of the Listing Manual of the Singapore Exchange Securities Trading Limited requires that at least 10% of the total number of issued shares excluding treasury shares (excluding preference shares and convertible equity securities) of a listed company in a class that is listed is at all times held by the public.510 22 7.970 14. of Shares 99.44 100.213.404 78.568. The Company has complied with this requirement.33 0.133 2.22 0.310.043 1.20 0.85% of its ordinary shares listed on the Singapore Exchange Securities Trading Limited were held in the hands of the public.214 117.14 0.20 0.96 2.756 shares each) TOTAL PUBLIC FLOAT Shareholders 339 5.284 % 0.

INC.258^ 201.352 – 89.258^ 184. L. NEWTON INVESTMENT MANAGEMENT LIMITED RICHARD C BLUM TARRANT ADVISORS. NEWBRIDGE ASIA GENPAR III. L.P. (formerly known as NEWBRIDGE PARKWAY III.403 67. L. NEWBRIDGE ASIA ADVISORS III.101 67.Analysis of Shareholdings AS AT 3 MARCH 2010 SUBSTANTIAL SHAREHOLDERS AS AT 3 MARCH 2010 (as shown in the Register of Substantial Shareholders) Beneficial No. INC.758.592 94. INC.405.094.P.689.662^ 56.P.P) NEWBRIDGE PARKWAY IV. LTD. INC.405. TEMPLETON GLOBAL ADVISORS LIMITED TEMPLETON GLOBAL HOLDINGS LIMITED TEMPLETON INTERNATIONAL.P.094.405. NEWBRIDGE MAURITIUS CO-INVESTMENT LIMITED NEWBRIDGE MAURITIUS HEALTHCARE PARTNERS LIMITED NEWBRIDGE MAURITIUS MEDICAL PARTNERS LIMITED TPG PARKWAY III.405.) PTE. INC.998 67. III.341.341.662^ 271. INC.746. NEWBRIDGE ASIA IV. BLUM G.A. INC Note 10 Note 1 Note 11 Note 11 Note 18 Note 17 Note 16 Note 15 – Note 12 67.258^ 182.341.746.352 – – – – – – – – – – – 94. L. L.404^ – ^ Deemed Shareholdings 184.695 – – – – – – – – – – 184.P.725. L.592 184.950. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Name of Shareholders BLUM CAPITAL PARTNERS. LTD.404^ 87.P.405. INC.403 263.376.258^ 182. L. (formerly known as ^ NEWBRIDGE SINGAPORE CO-INVESTMENT 166 Parkway Holdings Limited Annual Report 2009 . NEWBRIDGE ASIA GENPAR IV.101 201. DAVID BONDERMAN FRANKLIN RESOURCES. L.438.000. LLC BLUM INVESTMENT PARTNERS.998 56. THE BANK OF NEW YORK MELLON CORPORATION TPG ASIA ADVISORS V.388.810 – 87. NEWBRIDGE SINGAPORE HEALTHCARE PARTNERS PTE. JAMES COULTER KHAZANAH NASIONAL BERHAD MOUNT KINABALU INVESTMENTS LTD NEWBRIDGE ASIA III.405. NEWBRIDGE ASIA ADVISORS IV.258^ 271.404^ – Shareholdings Note 1 Note 1 Note 1 Note 2 – Note 2 Note 3 – Note 4 Note 5 Note 1 Note 6 Note 1 Note 6 Note 7 Note 8 Note 9 Note 8 Note 9 – – – – – – – – 263. TARRANT CAPITAL ADVISORS. L.388. LTD.188^ TPG PARKWAY IV.404^ – – 87.341. NEWBRIDGE SINGAPORE MEDICAL PARTNERS PTE.438.P.404^ 87.094.652.890 133.638.592 184.188^ 87. INC.258^ 184.070^ 182. TEMPLETON WORLDWIDE.341.101 67.689.341.000.404^ 87.950.P.

L.P. Newbridge Singapore Medical Partners Pte Ltd and TPG Healthcare Asia V. Subsidiary of The Bank of New York Mellon Corporation. Lim Cheok Peng and Newbridge Asia III.810 133.188^ 182.P. LTD TPG PARKWAY.689. (iii) Deemed interest in shares in Parkway Holdings Limited held by Richard Seow pursuant to agreements dated 10 June 2005 between. LP under Section 7 of the Companies Act. Deemed interest by virtue of being associated with Newbridge Singapore Co-Investment Pte Ltd. L. LP under Section 7 of the Companies Act.P. Richard Seow and Newbridge Asia III. Newbridge Singapore Co-Investment Pte Ltd and Newbridge Singapore Medical Partners Pte Ltd under Section 7 of the Companies Act. Deemed interest by virtue of being associated with Newbridge Asia Ill. Adjustments to shareholdings were primarily due to the subscription of rights shares pursuant to the Rights Issues of the Company which were completed on 14 December 2006 and 16 June 2008 without any resulting change in the percentage level of interests in the Company.094. inter alia. Deemed interest by virtue of being associated with Newbridge Asia III. Deemed interest by virtue of being associated with TPG Asia V.094. L. LP) under Section 7 of the Companies Act. L. L. Khazanah is deemed to have an interest in MRI’s shares in Parkway Holdings Limited. Deemed interest by virtue of being associated with Newbridge Asia IV. Note 6 Note 6 Note 6 Note 12 Note 13 Note 14 Note 7 Shareholdings – – – – – – – As confirmed by the TPG Group.376. L. TPG ASIA V.P.810 60. Ltd and TPG Parkway. LP (formerly known as Newbridge Parkway. inter alia.592 182. (i) Deemed interest by virtue of being associated with Newbridge Singapore Healthcare Partners Pte Ltd under Section 7 of the Companies Act (ii) Deemed interest in shares in Parkway Holdings Limited held by Lim Cheok Peng pursuant to an agreement dated 10 June 2005 between.) TPG PROFESSIONALS. and Newbridge Singapore Co-Investment Pte Ltd under Section 7 of the Companies Act. LP) under Section 7 of the Companies Act.. Ltd.094. L. TPG 2007 VSC. (formerly known as NEWBRIDGE PARKWAY.P. L. L.P. Deemed interest by virtue of being associated with Newbridge Singapore Medical Partners Pte Ltd and TPG Parkway. TPG 2006 VSC.Analysis of Shareholdings AS AT 3 MARCH 2010 Beneficial No.P.592 Name of Shareholders TPG ASIA GENPAR V. Deemed interest by virtue of being associated with Newbridge Singapore Co-Investment Pte Ltd under Section 7 of the Companies Act.P. LP (formerly known as Newbridge Parkway.376. Deemed interest by virtue of being associated with Newbridge Singapore Healthcare Partners Pte Ltd under Section 7 of the Companies Act. L. 33 34 35 36 37 38 39 ^ Deemed Shareholdings 133.592 182. Note 1 – Note 2 – Note 3 – Note 4 – Note 5 – Note 6 – Note 7 – Note 8 – Note 9 – Note 10 – Note 11 – Note 12 – Note 13 – 167 .821 94. TPG HEALTHCARE ASIA V. L. Mount Kinabalu Investments Ltd (“MRI”) is a wholly-owned subsidiary of Khazanah Nasional Berhad (“Khazanah”) and pursuant to Section 7 of the Companies Act.P.P.P.496. Deemed interest by virtue of being associated with Newbridge Singapore Medical Partners Pte Ltd under Section 7 of the Companies Act. Deemed interest by virtue of being associated with TPG Healthcare Asia V.

which is wholly-owned subsidiary of Templeton Worldwide. Inc.811 shares in Parkway Holdings Limited held by Newbridge Singapore Healthcare Partners Pte Ltd pursuant to an exchangeable note agreement dated 9 June 2008 entered into between TPG Healthcare Asia V. Inc. Inc. which is a wholly-owned subsidiary of Franklin Resources. Wholly-owned subsidiary of Templetion International Inc. Ltd and Newbridge Mauritius Medical Partners Limited. Inc. which is wholly-owned subsidiary of Templeton Worldwide. (ii) 19.. Wholly-owned subsidiary of Templeton Global Holdings Ltd. which is a wholly-owned subsidiary of Franklin Resources.199 shares in Parkway Holdings Limited held by Newbridge Singapore Co-Investment Pte Ltd pursuant to an exchangeable note agreement dated 9 June 2008 entered into between TPG Healthcare Asia V. Wholly-owned subsidiary of Templeton Worldwide.Analysis of Shareholdings AS AT 3 MARCH 2010 Note 14 – Note 15 – Note 16 – Note 17 – Note 18 – Deemed interest under Section 7 of the Companies Act in: (i) 19. Ltd and Newbridge Mauritius Co-Investment Limited. Wholly-owned subsidiary of Franklin Resources. (iii) 21.. Inc. Inc. Inc. which is a wholly-owned subsidiary of Franklin Resources.343.811 shares in Parkway Holdings Limited held by Newbridge Singapore Medical Partners Pte Ltd pursuant to an exchangeable note agreement dated 9 June 2008 entered into between TPG Healthcare Asia V. Ltd and Newbridge Mauritius Healthcare Partners Limited. 168 Parkway Holdings Limited Annual Report 2009 . which is wholly-owned subsidiary of Templetion International Inc.809.343..

Reg No.PARKWAY HOLDINGS LIMITED ( Co. 197400320R ) 111 Somerset Road #15-01 TripleOne Somerset Singapore 238164 Tel: (65) 6307 7880 Fax: (65) 6738 2036 .

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