112 MEGACHEM LIMITED Notes to The Financial Statements 31 December 2024 1. General information The Company is incorporated in Singapore with limited liability. The financial statements are presented in Singapore Dollar and they cover the Company (referred to as “parent”) and its subsidiaries. The board of directors approved and authorised these financial statements for issue on the date of the statement by directors. The directors have the power to amend and reissue the financial statements. The principal activities of the Company consist of trading in chemicals and chemical-related products and investment holding. It is listed on Catalist which is a share market on Singapore Exchange Securities Trading Limited. The principal activities of the subsidiaries are described in Note 14 below. The registered office is: 11 Tuas Link 1, Singapore 638588. The Company is situated in Singapore. Statement of compliance with financial reporting standards These financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (International) (“SFRS (I)s”) and the related Interpretations to SFRS (I)s (“SFRS (I)s INT”) as issued by the Accounting Standards Committee under Accounting and Corporate Regulatory Authority (“ASC”). They comply with the provisions of the Companies Act 1967 and with the IFRS Accounting Standards (“IFRSs”) as issued by the International Accounting Standards Board (“IASB”). Basis of preparation of the financial statements The financial statements are prepared on a going concern basis under the historical cost convention except where a SFRS (I) requires an alternative treatment (such as fair values) as disclosed where appropriate in these financial statements. The accounting policies in the SFRS (I)s may not be applied when the effect of applying them is not material. The disclosures required by SFRS (I)s may not be provided if the information resulting from that disclosure is not material. Basis of presentation and principle of consolidation The consolidated financial statements of the Group include the financial statements made up to the end of the reporting year of the Company and all of its subsidiaries, presented as those of a single economic entity and are prepared using uniform accounting policies for like transactions and other events in similar circumstances. All significant intragroup balances and transactions are eliminated on consolidation. Subsidiaries are consolidated from the date the Group obtains control of the investee. They are de-consolidated from the date that control ceases. Changes in the Group’s ownership interest in a subsidiary that do not result in the loss of control are accounted for within equity as transactions with owners in their capacity as owners. The carrying amounts of the Group’s and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. When the Group loses control of a subsidiary it derecognises the assets and liabilities and related equity components of the former subsidiary. Any gain or loss is recognised in profit or loss. Any investment retained in the former subsidiary is measured at fair value at the date when control is lost and is subsequently accounted as equity investments financial assets in accordance with the Singapore Financial Reporting Standards (International) on financial instruments. The Company’s separate financial statements have been prepared on the same basis, and as permitted by the Companies Act 1967, the Company’s separate statement of profit or loss and other comprehensive income and separate statement of changes in equity are not presented. 2. Material accounting policy information and other explanatory information 2A. Material accounting policy information Revenue and income recognition General – Revenue is recognised at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer (which excludes estimates of variable consideration that are subject to constraints, such as right of return exists, and modifications), net of any related taxes and excluding any amounts collected on behalf of third parties. An asset (goods or services) is transferred when or as the customer obtains control of that asset. As a practical expedient the effects of any significant financing component is not adjusted if the payment for the good or service will be within one year.
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