NTUC Income AR 2018

Independent Auditors’ Report For the Financial Year Ended 31 December 2018 Members of the Co-operative NTUC Income Insurance Co-operative Limited Report on the audit of the financial statements Qualified opinion We have audited the financial statements of NTUC Income Insurance Co-operative Limited (‘the Co-operative’) and its subsidiaries (‘the Group’), which comprise the consolidated statement of financial position as at 31 December 2018, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows of the Group for the year then ended, and notes to the financial statements, including a summary of significant accounting policies as set out on pages 40 to 136. In our opinion, except for the effects of the matter described in the ‘ Basis for qualified opinion’ section of our report, the accompanying consolidated financial statements of the Group are properly drawn up in accordance with the provisions of the Co-operative Societies Act, Chapter 62 (‘the Act’) and Financial Reporting Standards in Singapore (‘FRSs’) so as to give a true and fair view of the financial position of the Group as at 31 December 2018 and of the financial performance, changes in equity and cash flows of the Group for the year ended on that date. Basis for qualified opinion As stated in Notes 2(s) and 20 to the financial statements, the share capital and treasury shares of the Co-operative do not qualify as equity in accordance with the provisions of Financial Reporting Standard 32 Financial Instruments: Presentation and should instead be classified as financial liabilities. Had this been done, in respect of the common share capital of $327,791,000 (2017: $988,083,000) less the corresponding treasury shares of $14,159,000 (2017: $14,159,000) would be reflected as a liability, and dividends paid of $52,563,000 (2017: $37,844,000) would be reflected as a finance cost instead of a distribution to participating members. We conducted our audit in accordance with Singapore Standards on Auditing (‘SSAs’). Our responsibilities under those standards are further described in the ‘ Auditors’ responsibilities for the audit of the financial statements’ section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (‘ACRA Code’) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. 31 2018 ANNUAL REPORT