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Notes to the Financial Statement
For the year ended 31st December 2011
NATURAL COOL HOLDINGS LIMITED
Annual Report 2011 49
These notes form an integral part of the fnancial statements.
The fnancial statements were authorised for issue by the Board of Directors on 30 March 2012.
1 Domicile and activities
Natural Cool Holdings Limited (the “Company”) is incorporated in the Republic of Singapore and has
its registered offce at 29 Tai Seng Avenue, #07-01 Natural Cool Lifestyle Hub, Singapore 534119.
The principal activity of the Company is that of an investment holding company. The principal
activities of the subsidiaries are as follows:-
  Air-conditioning: trading of air-conditioners, air-condition components, systems and units, air-
condition installation, servicing and re-conditioning;
  Switchgear: manufacture and sale of standardised and customised switchgear, electrical
components; and
  Investment: properties investment holding.
The consolidated fnancial statements relate to the Company and its subsidiaries (together referred
to as the “Group” and individually as “Group entities”).
2 Basis of preparation
2.1 Statement of compliance
The fnancial statements have been prepared in accordance with the Singapore Financial Reporting
Standards (“FRS”).
2.2 Basis of measurement
The fnancial statements have been prepared on the historical cost basis except for certain fnancial
assets and fnancial liabilities which are measured at amortised cost or fair value. Non-current
assets held for sale are measured at the lower of carrying amount and fair value less costs to sell.
2.3 Functional and presentation currency
These fnancial statements are presented in Singapore dollars, which is the Company’s functional
currency.
2.4 Uses of estimates and judgements
The preparation of fnancial statements in conformity with FRSs 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.