S I N G A P O R E I N D I A N D E V E L O P M E N T A S S O C I AT I O N Registration Number: UEN S90SS0098L Charity Registration Number: 0909
FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2015
Singapore Indian Development Association General Information Year ended 31 December 2015
General Information Patron – Prime Minister Lee Hsien Loong Life Trustees Mr Tharman Shanmugaratnam Professor S Jayakumar Mr S Dhanabalan Mr S Chandra Das Mr J Y Pillay Mr Sat Pal Khattar Mr K Shanmugam Dr N Varaprasad
Chairman
Term Trustees Ms Indranee T Rajah Mr M Rajaram Mr Ravi Menon Mr Inderjit Singh Mr V Shankar Mr Gautam Banerjee Mr Girija Pande Mr R Jayachandran Mr Ravinder Singh Justice Judith Prakash Mr K Kesavapany
Advisors Dr Vivian Balakrishnan Mr S Iswaran Mr Hri Kumar Nair Mr Vikram Nair
Audit Review Committee Members Mr Gautam Banerjee Mr Shabbir Hassanbhai Mr Sarjit Singh Mr K V Rao Mr Subramaniam Iyer Mr Mohan Pillay
Chairman
1
Singapore Indian Development Association General Information Year ended 31 December 2015
Executive Committee Members Ms Indranee T Rajah Mr Viswa Sadasivan Mr Shabbir Hassanbhai Mr Sarjit Singh Mr Shekaran Krishnan Mr Subramaniam Iyer Mr V P Jothi Mr R Rajaram Mr Puvan Ariaratnam Dr Joshua V M Kuma Mr Raj Mohamed Mr K V Rao Mr R Logapreyan Mr P Thirunal Karasu Mr Chandra Mohan Rethnam Mr K Ramamoorthy Mr Sarbjit Singh
President Vice-President Vice-President Secretary Treasurer Member Member Member Member Member Member Member Member (Term ended on 31 May 2015) Member (Term ended on 31 May 2015) Member (Co-opted w.e.f 27 October 2015) Member (Co-opted w.e.f 27 October 2015) Member (Co-opted w.e.f 27 October 2015)
Chief Executive Officer Mr Kumaran Barathan
Address No. 1 Beatty Road Singapore 209943
Auditors KPMG LLP Partner-in-charge: Jeya Poh Wan s/o K. Suppiah (since the financial year ended 31 December 2011)
2
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Statement of financial position As at 31 December 2015 Note
Non-current assets Plant and equipment Associate
2015 S$
2014 S$
4 5
890,855 200,100 1,090,955
969,748 – 969,748
6
3,400,000
3,400,000
7 8 9
1,200,238 1,000,000 1,092,554 21,485,760 9,580,216 37,758,768 38,849,723
721,069 1,000,000 1,320,972 21,286,522 4,814,562 32,543,125 33,512,873
10
33,627,020 33,627,020
27,452,339 27,452,339
Non-current liabilities Deferred capital grants
11
16,518
44,562
Current liabilities Deferred capital grants Other payables and accrued expenses Unutilised specific grants/donations
11 12 13
28,109 2,600,186 2,577,890 5,206,185 5,222,703 38,849,723
35,509 2,288,847 3,691,616 6,015,972 6,060,534 33,512,873
Current assets Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donations receivable – Singapore Totalisator Board Deposits, prepayments, tuition fee and other receivables Financial assets – investments Cash and cash equivalents Total assets Representing: Funds Unrestricted funds Accumulated funds Total funds
Total liabilities Total liabilities and funds
The accompanying notes form an integral part of these financial statements.
FS1
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Statement of financial activities Year ended 31 December 2015 Note
Income Income from generated funds Voluntary income: Donation – Central Provident Fund (CPF) contributions to SINDA fund Donation sponsorships Donation from Singapore Totalisator Board (STB) Income from School Pocket Money Fund (SPMF) Other donations
14
Finance income: Dividend income Interest income: - unit trust fixed income - fixed deposits and bank balances Other income: Miscellaneous income Gain on disposal of investments Fair value gain of investments Exchange gain Total income from generated funds
8
2015 Accumulated funds Operations Investments Total S$ S$ S$
2014 Accumulated funds Operations Investments Total S$ S$ S$
13,225,015 1,698,410 500,000 71,246 756,485
– – – – –
13,225,015 1,698,410 500,000 71,246 756,485
8,566,358 1,614,274 625,000 109,215 1,270,686
– – – – –
8,566,358 1,614,274 625,000 109,215 1,270,686
–
68,955
68,955
–
33,635
33,635
– –
3,730 4,558
3,730 4,558
– –
15,396 4,976
15,396 4,976
34,609 – – – 16,285,765
– 116,803 467,717 26,083 687,846
34,609 116,803 467,717 26,083 16,973,611
41,881 – – – 12,227,414
– – – – 54,007
41,881 – – – 12,281,421
The accompanying notes form an integral part of these financial statements.
FS2
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Statement of financial activities (continued) Year ended 31 December 2015 Note
Income from charitable activities Income from approved projects: Tuition programme fees Government grants: Government Subvention Ministry of Culture, Community and Youth (MCCY): - Temporary Occupation Licence (TOL) Grant - Additional Top-up Grant Family Service Centre (FSC) Funding: - Ministry of Social and Family Development (MSF) - Singapore Totalisator Board (STB) - National Council of Social Services (NCSS) - Other FSC Fundings Temasek Care Funding Care and Share Funding Other government grants Wage Credit Scheme Funding Deferred capital grants amortised Other grant: Singapore Press Holdings (SPH) Newspaper Project Funding Total income from charitable activities Total income
2015 Accumulated funds Operations Investments Total S$ S$ S$
2014 Accumulated funds Operations Investments Total S$ S$ S$
707,864
–
707,864
627,531
–
627,531
6
3,400,000
–
3,400,000
3,400,000
–
3,400,000
15
457,579 540,000
– –
457,579 540,000
461,129 1,273,472
– –
461,129 1,273,472
1,197,091 400,702 87,125 190,718 – 129,124 320,466 484,236 35,444
– – – – – – – – –
1,197,091 400,702 87,125 190,718 – 129,124 320,466 484,236 35,444
586,040 452,281 115,970 96,748 23,434 870,876 167,926 127,111 –
– – – – – – – – –
586,040 452,281 115,970 96,748 23,434 870,876 167,926 127,111 –
77,450 8,027,799 24,313,564
– – 687,846
77,450 8,027,799 25,001,410
66,495 8,269,013 20,496,427
– – 54,007
66,495 8,269,013 20,550,434
11
The accompanying notes form an integral part of these financial statements.
FS3
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Statement of financial activities (continued) Year ended 31 December 2015 Note
Expenditures incurred on charitable activities Cost of generating funds (i) Cost of generating voluntary income: CPF agency fees (ii) Charitable activities: Education programmes Family services Youth development programmes Parent and children programmes Community engagement, volunteer management and donor engagement unit Publicity and marketing expenses (iii) Administrative and governance costs (iv) Finance costs: Fair value loss on investments Exchange loss (v) Other costs: Loss on disposal of investments Total expenditures Net income/(expenditures) for the year
2015 Accumulated funds Operations Investments Total S$ S$ S$
2014 Accumulated funds Operations Investments Total S$ S$ S$
(151,629)
–
(151,629)
(133,763)
–
(133,763)
15 15 15 15
(9,730,324) (2,494,828) (1,504,261) (1,264,990)
– – – –
(9,730,324) (2,494,828) (1,504,261) (1,264,990)
(9,209,031) (2,953,099) (1,475,312) (1,305,546)
– – – –
(9,209,031) (2,953,099) (1,475,312) (1,305,546)
15 15
(1,195,082) (354,946)
– –
(1,195,082) (354,946)
(1,310,679) (371,020)
– –
(1,310,679) (371,020)
15
(2,130,669)
–
(2,130,669)
(2,214,616)
–
(2,214,616)
– –
– (18,826,729) 5,486,835
– –
– – 687,846
– –
– –
– (18,826,729)
– (18,973,066)
6,174,681
1,523,361
(222,151) (36,420)
(222,151) (36,420)
(26,916) (26,916) (285,487) (19,258,553) (231,480)
1,291,881
The accompanying notes form an integral part of these financial statements.
FS4
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Statement of changes in funds Year ended 31 December 2015 Accumulated funds, representing total unrestricted funds S$ At 1 January 2014
26,160,458
Total comprehensive income for the year Net income for the year, representing total comprehensive income for the year At 31 December 2014
1,291,881 27,452,339
At 1 January 2015
27,452,339
Total comprehensive income for the year Net income for the year, representing total comprehensive income for the year At 31 December 2015
6,174,681 33,627,020
The accompanying notes form an integral part of these financial statements.
FS5
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Statement of cash flows Year ended 31 December 2015 Note Cash flows from operating activities Net income for the year Adjustments for: Dividend income (Gain)/Loss on disposal of investments Fair value (gain)/loss on investments Exchange (gain)/loss Deferred capital grants amortised Depreciation Management fee rebate Interest income: - unit trust fixed income - fixed deposits and bank balances
4
5
Cash flows from financing activities Fixed deposits pledged Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December
2014 S$
6,174,681
Changes in: - donations, grants and Government Subvention receivable - deposits, prepayments and tuition fee and other receivables - other payables and accrued expenses, and unutilised specific grants/donations - deferred capital grants Net cash from operating activities Cash flows from investing activities Purchase of plant and equipment Loan due from associate Investments related management fee rebates Purchase of investments Proceeds from sale of investments Interest received: - unit trust fixed income - fixed deposits and bank balances Dividend received Net cash used in investing activities
2015 S$
9
1,291,881
(68,955) (116,803) (467,717) (26,083) (35,444) 389,831 (24,049)
(33,635) 26,916 222,151 36,420 – 424,230 –
(3,730) (4,558) 5,817,173
(15,396) (4,976) 1,947,591
(479,169)
(1,861,381)
228,418
(505,656)
(802,487) – 4,763,935
432,416 80,071 93,041
(310,938) (200,000) 164,835 (7,439,862) 7,704,161
(414,961) – – (19,903,496) 5,302,617
3,730 4,558 68,955 (4,561)
15,396 4,976 33,635 (14,961,833)
– –
(5,000) (5,000)
4,759,374 5,069,407 9,828,781
(14,873,792) 19,943,199 5,069,407
The accompanying notes form an integral part of these financial statements.
FS6
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Notes to the financial statements These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Executive Committee (“Management”) on 11 April 2016.
1
Domicile and activities Singapore Indian Development Association (the “Association”) is a society registered with the Registrar of Societies under the Societies Act, Chapter 311. Its registered office is located at No. 1 Beatty Road, Singapore 209943. The Association’s Vision and Mission includes the following: Vision To build a strong and vibrant Singaporean Indian community together. Mission To build a well-educated, resilient and confident community of Indians that stand together with the other communities in contributing to the progress of multi-racial Singapore. In order to achieve its vision and mission the Association has articulated four Strategic Thrusts as follows: (i) (ii) (iii) (iv)
Maximising educational opportunities for all students; Engaging parents to play an active role in their children’s lives; Inspiring youths towards greater achievement; and Forging a stronger relationship with community partners.
The Association runs a range of programmes, services and initiatives aligned to its four Strategic Thrusts. The Association is registered as a charity under the Charities Act, Chapter 37 and it has been granted status as an Institution of Public Character (IPC) under the Charities Act for a period of 5 years, up to 15 December 2016.
2
Basis of preparation
2.1
Statement of compliance The financial statements are prepared in accordance with 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 statement of financial position: • Financial assets – investments
FS7
Singapore Indian Development Association Financial statements Year ended 31 December 2015
2.3
Functional and presentation currency These financial statements are presented in Singapore dollars which is the Association’s functional currency.
2.4
Use of estimates and judgements The preparation of the financial 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 expenditures. 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 amounts recognised in the financial statements is included in the following note: • Note 5 – interest in an associate; • Note 8 – classification of financial assets – investments. Information about assumptions and estimation uncertainty that have a significant risk of resulting in a material adjustment within the next financial year are included in the following note: • Note 22 – valuation of financial instruments. Measurement of fair values A number of the Association’s accounting policies and disclosures require the measurement of fair values for financial assets. The Association has an established control framework with respect to the measurement of fair values. This includes an Investment Committee that has overall responsibility for all significant fair value measurements, including Level 3 fair values, and reports directly to the Board of Trustees. The Investment Committee regularly reviews significant unobservable inputs and valuation adjustments. Third party confirmations are used to measure fair values of investments in financial instruments. The Investment Committee assesses and documents the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of FRS, including the level in the fair value hierarchy in which such valuations should be classified. Significant valuation issues are reported to the Association’s Audit Review Committee.
FS8
Singapore Indian Development Association Financial statements Year ended 31 December 2015
When measuring the fair value of an asset, the Association uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follow: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement (with Level 3 being the lowest). Further information about the assumptions made in measuring fair values is included in note 22.
2.5
Changes in accounting policies On 1 January 2015, the Association adopted the new or amended FRS and interpretations to FRS (“INT FRS”) that are mandatory for application from that date. Changes to the Association’s accounting policies have been made as required in accordance with the transitional provisions in the respective FRS and INT FRS. The adoption of these new or amended FRS and INT FRS did not result in substantial changes to the Association’s accounting policies and had no material effect on the amounts reported for the current and prior financial years.
3
Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
3.1
Basis of consolidation Investment in associate Associates are those entities in which the Association has significant influence, but not control or joint control, over the financial and operating policies. Significant influence is presumed to exist when the Association holds between 20% or more of the voting power of another entity. Investment in an associate is accounted for using the equity accounting. Investment in associate is recognised initially at cost, which includes transaction costs. Subsequent to initial recognition, the Association’s financial statements includes the Association’s share of losses of equity accounted investee, from the date that significant influence commences until the date that significant influence ceases.
FS9
Singapore Indian Development Association Financial statements Year ended 31 December 2015
When the Association’s share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, together with any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued.
3.2
Foreign currency transactions Transactions in foreign currencies are translated to the Association’s functional currency at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. 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. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising from retranslation are recognised in income or expenditure.
3.3
Plant and equipment Recognition and measurement Items of plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (major components) of plant and equipment. The gain or loss on disposal of an item of plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in income or expenditure. Subsequent costs The cost of replacing a component of an item of plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Association, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of plant and equipment are recognised in income or expenditure as incurred.
FS10
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately. Depreciation is recognised as an expense in income or expenditure on a straight-line basis over the estimated useful lives of each component of an item of plant and equipment, unless it is included in the carrying amount of another asset. Depreciation is recognised from the date that the plant and equipment are installed and are ready for use. The estimated useful lives for the current and comparative years are as follows: • • • •
Computer equipment Furniture and fittings Office equipment Office renovation
3 years 5 years 5 years 3 years
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if appropriate.
3.4
Impairment Non-derivative financial assets A financial asset not carried at fair value through income or expenditure is assessed at the end of each reporting period to determine whether there is any objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event(s) has occurred after the initial recognition of the asset, and that the loss event(s) has an impact on the estimated cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Association on terms that the Association would not consider otherwise, adverse changes in the payment status of a borrower, indications that a debtor will enter bankruptcy, economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. Loans and receivables The Association considers evidence of impairment for loans and receivables at both a specific asset and collective level. All individually significant loans and receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Loans and receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics.
FS11
Singapore Indian Development Association Financial statements Year ended 31 December 2015
In assessing collective impairment, the Association uses historical trends of the probability of default, the timing of recoveries and the amount of loss incurred, 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 lesser than suggested by historical trends. 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. Losses are recognised in income or expenditure and reflected in an allowance account against loans and receivables. Interest on the impaired asset continues to be recognised. When the Association considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through income or expenditure. Non-financial assets The carrying amounts of the Association’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less cost to sell. In assessing value in use, 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 or CGU. For the purpose of impairment testing, 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 CGUs. Impairment losses are recognised in income or expenditure. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognised.
FS12
Singapore Indian Development Association Financial statements Year ended 31 December 2015
3.5
Financial instruments Non-derivative financial assets The Association initially recognises loans and receivables on the date that they are originated. All other financial assets (including assets designated at fair value through income or expenditure) are recognised initially on the trade date, which is at the date that the Association becomes a party to the contractual provisions of the instrument. The Association derecognises a financial asset when the contractual rights to the cash flows from the asset expire, 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, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in transferred financial assets that is created or retained by the Association is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Association 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 Association classifies non-derivative financial assets into financial assets at fair value through income or expenditure, and loans and receivables. Financial assets at fair value through income or expenditure A financial asset is classified at fair value through income or expenditure if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated as fair value through income or expenditure if the Association manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Association’s documented risk management or investment strategy. Attributable transaction costs are recognised in income or expenditure as incurred. Financial assets at fair value through income or expenditure are measured at fair value, and changes therein, which takes into account any dividend income, are recognised in income or expenditure. Financial assets classified as held for trading comprise funds and unit trusts actively managed by appointed third party investment managers and reviewed by the Association’s Investment Committee to address short-term liquidity needs. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise Government Subvention receivable, donations receivable, deposits, tuition fee and other receivables, and cash and cash equivalents.
FS13
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Cash and cash equivalents Cash and cash equivalents comprise of bank balances, cash at bank in investment accounts, and fixed deposits with maturities of three months or less from the date of acquisition that are subject to an insignificant risk of changes in their fair value, and are used by the Association in the management of its short-term commitments. For the purpose of the statement of cash flows, pledged fixed deposits are excluded from cash and cash equivalents. Non-derivative financial liabilities Financial liabilities are recognised initially on the trade date at which the Association becomes a party to the contractual provisions of the instrument. The Association derecognises a financial liability when its contractual obligations are discharged, cancelled or expire. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Association 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 Association classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Other financial liabilities comprise other payables and accrued expenses, and unutilised specific grants/donations.
3.6
Provisions A provision is recognised if, as a result of a past event, the Association has a present legal or constructive obligation that can be estimated reliably, and, it is probable that an outflow of economic benefits will be required to settle the obligation. 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. The unwinding of the discount is recognised as finance cost.
3.7
Employee benefits Defined contribution plan 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. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in income or expenditure in the periods during which related services are rendered by employees.
FS14
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus if the Association 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.
3.8
Income Donations from the Central Provident Fund Scheme and the Singapore Totalisator Board, which are probable for collection, are recognised on an accrual basis. All other donations are recognised on a receipt basis. Tuition programme fees income is recognised on an accrual basis. Grants for specific purposes are recognised to the extent the related expenditure has been incurred and the grant is receivable. Government Subvention and grants, which are probable for collection, are recognised on an accrual basis.
3.9
Expenditures incurred on charitable activities Expenditures incurred on charitable activities comprise direct expenditure including direct staff costs attributable to the activities. In addition, it also includes support costs (costs relating to central functions) and other costs that have been allocated on a basis consistent with the use of the resources. Administrative and governance costs Administrative and governance costs comprise all costs attributable to the general running of the Association, in providing the governance infrastructure and in ensuring public accountability.
3.10
Finance income and finance costs Finance income comprises interest income on funds invested, dividend income, and fair value gains on financial assets at fair value through income or expenditure. Interest income is recognised as it accrues in income or expenditure, using the effective interest method. Dividend income is recognised in income or expenditure on the date that the Association’s right to receive payment is established. Finance costs comprise fair value losses on financial assets at fair value through income or expenditure, and impairment losses recognised on financial assets (other than trade receivable). Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.
FS15
Singapore Indian Development Association Financial statements Year ended 31 December 2015
3.11
Operating leases When the Association is a lessee of an operating lease Where the Association has the right to use of assets under operating leases, payments made under these operating leases are recognised in income or expenditure on a straight-line basis over the term of the lease. Lease incentives received are recognised in the income or expenditure as an integral part of the total operating lease expense, over the term of the lease.
3.12
Funds of the Association Unrestricted funds Unrestricted funds which are represented by Accumulated funds comprise the general operating and investment funds. These funds are available for use at the discretion of the management in furtherance of the general objectives of the Association.
3.13
Deferred capital grant – from government Government grants related to maintenance of plant and equipment are recognised initially as deferred capital grant at fair value when there is reasonable assurance that they will be received and the Association will comply with the conditions associated with the grant. These grants are then recognised in income or expenditure as a reduction against depreciation expense on a systematic basis over the useful life of the asset. Cash grants received from the government in relation to the Wage Credit Scheme (“WCS�) are recognised on receipt basis. WCS was introduced to help the Association which may face rising wage costs in a tight labour market. The scheme will apply for three years from 1 January 2013 to 31 December 2015.
3.14
New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are effective for the annual periods beginning after 1 January 2015, and have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the Association.
FS16
Singapore Indian Development Association Financial statements Year ended 31 December 2015
4
Plant and equipment Computer equipment S$ Cost At 1 January 2014 Additions Transfers At 31 December 2014 Additions Transfers At 31 December 2015
5
Furniture Capital and Office Office work-in fittings equipment renovation progress S$ S$ S$ S$
Total S$
1,082,693 90,627 136,844 1,310,164 8,500 125,452 1,444,116
455,186 68,014 – 523,200 4,210 – 527,410
167,505 25,080 – 192,585 12,880 – 205,465
742,666 85,824 – 828,490 40,600 38,800 907,890
Accumulated depreciation At 1 January 2014 746,850 Depreciation 214,720 At 31 December 2014 961,570 Depreciation 222,441 At 31 December 2015 1,184,011
352,114 45,411 397,525 43,798 441,323
88,583 28,543 117,126 27,230 144,356
538,212 135,556 673,768 96,362 770,130
– – – – –
1,725,759 424,230 2,149,989 389,831 2,539,820
Carrying amounts At 1 January 2014 At 31 December 2014 At 31 December 2015
103,072 125,675 86,087
78,922 75,459 61,109
204,454 154,722 137,760
256,726 265,298 345,794
979,017 969,748 890,855
335,843 348,594 260,105
256,726 2,704,776 145,416 414,961 (136,844) – 265,298 3,119,737 244,748 310,938 (164,252) – 345,794 3,430,675
Associate 2015 S$
Interest in associate Loan due from associate
2014 S$ − – −
100 200,000 200,100
Details of the associate are as follows:
Name
Self Help Groups Student Care Limited
Principal activities
Place of incorporation
Operate school based student care centres in Singapore
Singapore
Voting rights held 2015 2014 % %
25
−
FS17
Singapore Indian Development Association Financial statements Year ended 31 December 2015
In October 2015, the Association entered into a memorandum of understanding (MOU), together with Chinese Development Assistance Council, Yayasan Mendaki, and the Eurasian Association (together Self-Help Groups (SHGs)), to incorporate Self Help Groups Student Care Limited (SHGSC) (the “Associate”). Incorporation of the Associate is in line with the mandate by the Ministry of Education (MOE) to provide educational and family related support services to students from low and middle income families. Programmes to be conducted by the Associate will be all-inclusive and multiracial which is aligned with the Association’s Mission. The Associate was incorporated in November 2015 and is a public company limited by guarantee. Upon incorporation of the Company, each SHG contributed S$100. As at year-end, the Association has yet to pay the S$100. The Association has appointed two directors to the Board of Directors to participate in operational and financial decisions of the Associate. The Association is entitled to 25% of total voting rights at the Board of Directors meetings. The Association has determined that the Associate is insignificant and as a result disclosed the following summarised unaudited financial information of the Associate which is prepared in accordance with FRS. 2015 S$ Statement of comprehensive income Revenue Loss and total comprehensive loss for the year Total comprehensive loss Statement of financial position Non-current assets Current assets Non-current liabilities Current liabilities Net deficit
30,000 (11,245) (11,245)
94,432 1,046,609 (1,047,785) (104,501) (11,245)
Notwithstanding the Association’s ability to participate in operational and financial decisions of the Associate, the MOU prohibits the Association, together with other SHGs, from obtaining any variable returns in the forms of profits, dividends, or residual interest in net assets in the events of liquidation or winding-down. The Association, collectively with other SHGs, agreed not to receive any variable returns in forms of dividend, bonus, or profits from the Company. Management has exercised significant judgement in determining the extent of its significant influence over the Associate, and concluded that the Association has significant influence over the Company. Therefore, the Association recognised the Company as an associate in the statement of financial position.
FS18
Singapore Indian Development Association Financial statements Year ended 31 December 2015
The objective of Association for setting up the Company is to extend its Mission to students from all races in Singapore and the investment in the Associate, in substance, is not meant to be a commercially-driven transaction with the purpose of profit takings. Therefore, the Association does not equity account for any variable returns in forms of dividend, bonus, or profits from the Company. The Association’s financial statements includes the Association’s share of losses of the Associate. The Association’s exposure to losses is limited to the carrying amount of the investment, together with any long-term interests. Loan due from associate represents the first tranche of the Association’s total commitment to the Associate (see note 20) which is made in the form of an unsecured and interest free loan. The settlement of loan is neither planned nor likely to occur in the foreseeable future. The loan is classified as a non-current and stated at cost less accumulated impairment losses.
6
Government Subvention receivable This represents the annual “Dollar-for-Dollar” Matching Grant receivable, subject to a maximum of S$3,400,000 (2014: S$3,400,000), from the Ministry of Culture, Community and Youth (MCCY).
7
Deposits, prepayments, tuition fee and other receivables 2015 S$ Deposits Tuition fee receivables* Other receivables Loans and receivables Prepayments
20,458 – 989,679 1,010,137 82,417 1,092,554
2014 S$ 24,275 152,402 971,685 1,148,362 172,610 1,320,972
*During the year, the Association matched tuition fee against available Project Give donations (see note 13(iv)). As at year-end, there is nil (2014: S$152,402) receivable. The Association’s exposure to credit risk and impairment losses for receivables are disclosed in note 22.
FS19
Singapore Indian Development Association Financial statements Year ended 31 December 2015
8
Financial assets – investments Note Held for trading: - REITS/real estate funds - Absolute return funds - Private equity funds - Unit trusts: - equity - fixed income - Cash at bank in investment accounts held with fund managers/custodians
9
2015 S$
2014 S$
411,611 17,157 370,682
611,222 24,803 682,066
7,508,188 12,823,557 21,131,195
7,163,770 12,443,816 20,925,677
354,565 21,485,760
360,845 21,286,522
During the year, the Association disposed of its interest in unit trust – equity instruments for S$7,259,835, and recorded gain on disposal of S$96,065 in the statement of financial activities. Remaining gain on disposal of S$1,090 pertains to disposal of unquoted instruments during the year. Total gain on disposal of investments amounted to S$116,803. Proceeds from the disposal were utilised to purchase quoted equity securities during the year. Fair values of the quoted equity securities at the acquisition dates amount to S$7,425,737.
9
Cash and cash equivalents Note
Bank balances Fixed deposits Cash and cash equivalents in the statement of financial position Cash at bank in investment accounts Fixed deposits pledged* Cash and cash equivalents in the statement of cash flows
8
2015 S$
2014 S$
4,372,636 5,207,580
3,366,299 1,448,263
9,580,216 354,565 9,934,781 (106,000)
4,814,562 360,845 5,175,407 (106,000)
9,828,781
5,069,407
*Fixed deposits have been pledged to obtain a letter of guarantee in lieu of deposit fee from a bank for the purpose of obtaining a Temporary Occupation Licence (TOL) for the Association’s premises (see note 15).
FS20
Singapore Indian Development Association Financial statements Year ended 31 December 2015
10
Accumulated funds Accumulated funds are the Association’s general operating funds and can be used for any of the Association’s activities. The Accumulated funds are represented by the following assets and liabilities: Note
Plant and equipment Associate Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donation receivable – Singapore Totalisator Board Deposits, prepayments, tuition fee and other receivables Financial assets – investments Cash at bank in investment accounts held with fund managers/custodians Cash in hand and at bank Fixed deposits Deferred capital grants Other payables and accrued expenses Unutilised specific grants/donations
11
2015
2014
S$
S$
4 5 6
890,855 200,100 3,400,000
969,748 − 3,400,000
7 8
1,200,238 1,000,000 1,092,554 21,131,195
721,069 1,000,000 1,320,972 20,925,677
354,565 4,372,636 5,207,580 (44,627) (2,600,186) (2,577,890) 33,627,020
360,845 3,366,299 1,448,263 (80,071) (2,288,847) (3,691,616) 27,452,339
8 9 9 11 12 13
Deferred capital grants 2015 S$ Non-current Current
16,518 28,109 44,627
2014 S$ 44,562 35,509 80,071
The Association has been awarded three government grants. One of the grants, received by the Association in 2014, was unconditional, amounted S$6,531 and is utilised over the useful life of the computer equipment. The second grant received in 2014, was unconditional and amounted to S$61,040. The grant is utilised over the useful lives of the respective assets. The third grant, received in 2014, was unconditional and amounted to S$12,500. The grant is utilised for the purpose of employment of HR Lead as part of the HR development funding scheme in 2015.
FS21
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Movement: 2015 S$ Balance at 1 January Capital grants received and deferred during the year Amortisation to the statement of financial activities during the year Balance at 31 December
12
2014 S$
80,071 −
− 80,071
(35,444) 44,627
− 80,071
Other payables and accrued expenses 2015 S$ Payables to suppliers and service providers Accrued expenses
1,430,204 1,169,982 2,600,186
2014 S$ 1,211,957 1,076,890 2,288,847
The Association’s exposure to liquidity risk related to other payables and accrued expenses is disclosed in note 22.
13
Unutilised specific grants/donations These comprise specific grants/donations for: 2015 S$ (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix)
Tamil Language Learning and Promotion Committee (TLLPC) Singapore Indian Education Trust (SIET) and Tertiary Education Loan Scheme School Pocket Money Fund (SPMF) Project Spark Singapore Press Holding (SPH) Foundation Newspaper Project Project Give donations Youth Development Programmes Single Parent Programme/Sponsorships Care and Share Funding
2014 S$
414,480
564,532
321,488 27,381 –
193,328 8,082 51,458
12,279 292,246 439,548 1,070,468 – 2,577,890
– 585,815 772,084 1,387,193 129,124 3,691,616
FS22
Singapore Indian Development Association Financial statements Year ended 31 December 2015
(i) Tamil Language Learning and Promotion Committee (TLLPC) Tamil Language Learning and Promotion Committee (TLLPC) is a committee set up by the Ministry of Education (MOE) to promote the learning and use of the Tamil language. The Association provides support to TLLPC in the administration of the TLLPC funds. Grants and donations are the main sources of income with MOE providing a matching grant for funds raised by the TLLPC. (ii) Singapore Indian Education Trust (SIET) and Tertiary Education Loan Scheme Singapore Indian Education Trust (SIET) is a registered charity offering solutions to the needs and challenges impacting the educational performance of the Indian community. The Association’s programmes are designed to focus mainly on the education of students from pre-primary to secondary while SIET’s focus is on tertiary level education. Both of the organisations recognise the immense opportunity to leverage on the synergy between the two organisations. The collaborative arrangement has been set up to manage SIET donations and its disbursements to students who qualify for financial assistance for their course of study at the tertiary institutions and other schemes administered by SIET. The Tertiary Education Loan Scheme is supported by a donation to provide interest free Educational Loan assistance to bright Indian students facing financial challenges in pursuing their tertiary qualifications. This scheme will be jointly run by SIET and the Association with SIET administering the scheme. (iii) School Pocket Money Fund (SPMF) The Association receives yearly grants from the National Council of Social Service (NCSS) pertaining to SPMF. All bursary payments made under this service will be paid out from SPMF based on criteria set out by NCSS. (iv) Project Spark Project Spark (Successful Parents and Resilient Kids) is a collaborative effort between Temasek Cares (a charity arm of Temasek Holdings), Yayasan Mendaki, Chinese Development Assistance Council, the Eurasian Association, and the Association. It aims to provide a more holistic and integrated intervention programme to help single parents rebuild their lives and overcome their disadvantage. Funding supports the provision of an assistance package consisting of employment assistance programmes and a starter kit. The project was discontinued in 2015 and all unutilised funds held with the Association were returned to Temasek Cares. (v) Singapore Press Holding (SPH) Foundation Newspaper Project SPH Foundation Newspaper Project is a programme to sponsor subscriptions to the Straits Times and Tamil Murasu Newspapers. Under this project, the Association identifies the needy households who wish to read the Straits Times newspaper and SPH sponsors the subscription costs.
FS23
Singapore Indian Development Association Financial statements Year ended 31 December 2015
(vi) Project Give donations Project Give is a community fund raising campaign to raise money for bursaries for students from needy families. It typically runs through the various festivities such as Hari Raya Puasa, Deepavali and Christmas. Funds are raised via direct cheque donations, donation boxes placed with partner retailers, online, and at a booth set up by the Association during Deepavali Fair at Hastings Road (Deepavali Bazaar) (2014: 48 Serangoon Road (Deepavali Bazaar)). (vii) Youth Development Programmes Youth Development Programmes are specific programmes focuses mainly on the following four key (2014: three programmes) programmes as follows: •
Project Victory/Senior Victory – a school based motivational programme that aims to bring out leadership qualities and encourage the practice of positive life skills through structured activities and trained facilitators.
•
Youth Empowerment Programme – a one-to-one mentorship programme to engage “atrisk” youth and who have low self-esteem or other behavioural problems.
•
Mentorship programme for Institute of Technical Education (ITE) students – a programme to engage students of ITE through interest-based mentoring.
•
In 2015, Teach Secondary Programme – a school-based tutorial programme that aims to improve the academic performance of Indian students in maths and science at secondary schools through intensive small group tuition. Project Teach emphasises on close collaboration between schools, parents and tutors, and allows for these stakeholders to work together to improve students’ academic performance.
The funds will be channelled towards the content development, programme evaluation tools, motivational camps and workshops for the above mentioned programmes. (viii) Single Parent Programme/Sponsorships Single Parent Programme provides holistic assistance to single parents and their children. Children of single parents would receive assistance from all of the Association’s programmes including Tuition, NEU PC, and Enrichment while parents receive assistance on skills upgrading, financial planning and family support to help build their self-esteem and become self-sufficient. Sponsorships were received for specific programmes like financial assistance, bursary, and educational programmes.
FS24
Singapore Indian Development Association Financial statements Year ended 31 December 2015
(ix) Care and Share Funding Care and Share Funding is a national fund-raising and volunteerism movement led by Community Chest for the social service sector, in celebration of SG50 (Singapore’s 50th year of independence). Eligible donations raised by participating Voluntary Welfare Organisations (VWOs) from 1 December 2013 until 31 March 2016 will be matched dollarfor-dollar by the Government of Singapore and is capped at S$2,250,000 per VWO. The matched amount will be utilised towards building the capabilities and capacities of the social service sector and supporting social services to meet rising needs. During the year, the Association fully utilised the available funds.
14
Donations – Central Provident Fund (CPF) contributions to SINDA fund With effect from 1 January 2015, Central Provident Fund (CPF) contribution rates to the SINDA Fund were revised. The revision in rates is aimed to assist the Association as follows: • Improve the quality of existing educational, and family and youth related programmes; • Introduce new educational, and family and youth related programmes; • Expand the Association’s reach to a wider and/or more specific target groups. The Association derived an increase in income from CPF contributions during the year as a direct results of the revised rates. The Association expects to ramp up existing programmes and introduce new programmes. Management expects to fully utilise additional funds when initiatives are fully implemented.
15
Expenditures incurred on charitable activities, administrative and governance costs Note
Charitable activities Education programmes Tuition programmes: - STEP programme - Project Teach Other education programmes: - Enrichment programmes - Bursary/scholarships - Staff costs - Support costs
16
2015 S$
2014 S$
3,737,409 1,149,820
3,161,181 1,266,420
351,699 513,734 1,762,919 2,214,743 9,730,324
394,416 402,607 1,897,567 2,086,840 9,209,031
FS25
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Note
Family services - Casework and counselling - School Pocket Money Fund (SPMF) - Single Parents Programme - Other programmes - Staff costs - Support costs
Youth development programmes - SINDA Youth Club activities - Youth motivational programmes - Staff costs - Support costs
Parent and children programmes - Preschool programmes - Programme for parents - Staff costs - Support costs
Community engagement, volunteer management and donor engagement unit - Networking initiatives - Collaborative programmes - Volunteer management - Staff costs - Support costs
Publicity and marketing expenses - Corporate communications - Market communications - Staff costs - Support costs
Administrative and governance costs - Professional charges - Temporary Occupation Licence (TOL) fee expenses* - Support costs
16
16
16
16
16
16
2015 S$
2014 S$
181,315 70,210 19,598 421,958 1,124,452 677,295 2,494,828
344,437 109,215 91,266 550,999 1,050,362 806,820 2,953,099
145,828 284,212 694,240 379,981 1,504,261
174,207 268,160 692,116 340,829 1,475,312
304,146 166,007 435,052 359,785 1,264,990
114,982 150,553 611,202 428,809 1,305,546
119,277 66,617 16,484 686,465 306,239 1,195,082
167,922 75,547 42,661 751,886 272,663 1,310,679
48,791 2,160 18,697 285,298 354,946
39,754 2,597 21,941 306,728 371,020
71,692 454,838 1,604,139 2,130,669
15,647 455,280 1,743,689 2,214,616
FS26
Singapore Indian Development Association Financial statements Year ended 31 December 2015
*The Association occupies land owned by the Government of Singapore at No. 1 Beatty Road Singapore 209943 and pays an annual Temporary Occupation Licence (TOL) fee expense. The expense is supported by the TOL Grant from the Ministry of Culture, Community and Youth (MCCY) of S$457,579 (2014: S$461,129). The expenditures have been summarised as follows: ‹--------------- 2015 ---------------› Support costs Direct (see note costs 16) Total S$ S$ S$ Programmes Education programmes 7,515,581 2,214,743 Family services 1,817,533 677,295 Youth development programmes 1,124,280 379,981 Parent and children programmes 905,205 359,785 Community engagement, volunteer management and donor engagement unit 888,843 306,239 Publicity and marketing expenses 69,648 285,298 Administrative and governance costs 526,530 1,604,139
16
‹--------------- 2014 ---------------› Support costs (see note Direct costs 16) Total S$ S$ S$
9,730,324 2,494,828
7,122,191 2,086,840 9,209,031 2,146,279 806,820 2,953,099
1,504,261
1,134,483
340,829 1,475,312
1,264,990
876,737
428,809 1,305,546
1,195,082
1,038,016
272,663 1,310,679
354,946
64,292
2,130,669
306,728
371,020
470,927 1,743,689 2,214,616
Support costs
Staff costs S$ 2015 Education programmes Family services Youth development programmes Parent and children programmes Community engagement, volunteer management and donor engagement unit Publicity and marketing expenses Administrative and governance costs Total
Maintenance and administrative expenses Depreciation S$ S$
Total S$
1,246,718 334,485 182,447 152,039
870,567 272,640 154,653 153,170
97,458 70,170 42,881 54,576
2,214,743 677,295 379,981 359,785
152,039 163,749
123,013 90,363
31,187 31,186
306,239 285,298
790,603 3,022,080
751,163 2,415,569
62,373 389,831
1,604,139 5,827,480
FS27
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Staff costs S$ 2014 Education programmes Family services Youth development programmes Parent and children programmes Community engagement, volunteer management and donor engagement unit Publicity and marketing expenses Administrative and governance costs Total
Maintenance and administrative expenses Depreciation S$ S$
Total S$
1,343,300 471,970 181,527 217,832
637,483 258,489 116,879 151,585
106,057 76,361 42,423 59,392
2,086,840 806,820 340,829 428,809
145,222 195,893
93,503 76,897
33,938 33,938
272,663 306,728
1,052,857 3,608,601
618,711 1,953,547
72,121 424,230
1,743,689 5,986,378
Support costs in respect of staff costs, maintenance and administrative expenses are allocated to charitable activities based on level of activities. Support costs in respect of depreciation are allocated to charitable activities based on floor area occupied.
17
Net income/(expenditures) for the year The following items have been included in arriving at net income/(expenditures) for the year: 2015 S$ Employee benefits expense (see below) Depreciation Employee benefits expense: Staff costs Contributions to defined contribution plans
18
2014 S$
7,743,905 389,831
8,633,675 424,230
6,908,662 835,243 7,743,905
7,762,717 870,958 8,633,675
Taxation The Association is an approved charity organisation under the Charities Act, Chapter 37 and an Institution of Public Character under the Income Tax Act, Chapter 134. No provision for tax has been made in the financial statements as the Association is exempt from income tax.
FS28
Singapore Indian Development Association Financial statements Year ended 31 December 2015
19
Transactions with key management personnel Key management personnel compensation comprised: 2015 S$ Short-term employment benefits Post-employment benefits (including CPF)
Salary range Salary above S$200,000 Salary within range S$150,000 to S$200,000 Total
2014 S$
709,977 70,738 780,715
796,226 73,766 869,992
3 − 3
1 2 3
The key management personnel remuneration comprise remuneration paid to the top three (2014: three) key executives including the Chief Executive Officer. One of the key management personnel was seconded from the Health Sciences Authority from 2010, whose secondment ended in December 2015. The Trustees and Executive Committee members do not receive any remuneration from the Association.
20
Commitments Long term interest free loan During the year, the Association committed to contribute long-term interest free loan of S$800,000 to SHGSC (see note 5) from 2015 to 2019. As at 31 December 2015, the remaining commitment amounts to S$600,000 (2014: nil). Capital expenditure Total approved, uncommitted, capital expenditure for 2016 approved by the Board of Trustees is S$975,000 (2014: S$472,200).
21
Related party transactions For the purpose of financial statements, parties are considered to be related to the Association if the Association has the ability, directly, or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Association and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. Other than the transactions disclosed elsewhere in the financial statements, there were no significant related party transactions between the Association and its related parties during the financial year.
FS29
Singapore Indian Development Association Financial statements Year ended 31 December 2015
22
Financial instruments Financial risk management Overview The Association has exposure to the following risks arising from financial instruments: • credit risk • liquidity risk • market risk This note presents information about the Association’s exposure to each of the above financial risks. Further quantitative disclosures are included throughout these financial statements. Risk management framework The Board of Trustees and Executive Committee have an overall responsibility for the establishment and oversight of the Association’s risk management framework. The Association’s activities expose it to credit risk, liquidity risk and market risk. The Association has policies and processes for measuring and managing these risks. The Board of Trustees and Executive Committee review and approve the policies for managing each of these risks. The Association’s risk management policies are established to identify and analyse the risks faced by the Association, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in the Association’s activities. The Association, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and responsibilities. There were no significant changes to the Association’s financial risks during the year. Credit risk Credit risk is the risk of financial loss to the Association if the counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Association’s receivables from various sources and investments. The Association’s exposure to credit risk arises principally from loan due from associate, receivables, financial assets – investments, and cash and cash equivalents. The carrying amounts of financial assets in the statement of financial position represent the Association’s maximum exposure to credit risk. The Association establishes an allowance for impairment that represents its estimate of incurred losses in respect of its receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures.
FS30
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Exposure to credit risk The Association’s exposure to credit risk is low as most of its receivables are from government agencies. As at the end of the financial year, 85% (2014: 82%) of the Association’s receivables are due from 3 counterparties (2014: 3 counterparties). Impairment Receivables (current) comprise: Note
Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donations receivable – Singapore Totalisator Board Loans and receivables
7
2015 S$
2014 S$
3,400,000
3,400,000
1,200,238 1,000,000 1,010,137 6,610,375
721,069 1,000,000 1,148,362 6,269,431
The Association monitors receivables credit risk based on their characteristics. An analysis of the credit quality of receivables that were not past due or impaired at the reporting date is as follows: 2015 S$ Not past due nor impaired Past due 0 – 30 days Past due 31 – 60 days Past due 61 – 90 days Past due 91 – 180 days
6,059,154 13,353 5,037 522,037 10,794 6,610,375
2014 S$ 5,567,725 – 1,350 6,666 693,690 6,269,431
There is no allowance for receivables required as at 31 December 2015 (2014: nil). The Association believes that the unimpaired amounts that are past due by more than 91 days are still collectible in full, based on historic payment behaviour and the credit quality is determined to be at an acceptable risk. Cash and cash equivalents The Association’s cash and cash equivalents are placed with banks and financial institutions which are regulated and rated A (2014: B and above) on Standard & Poor’s financial strength ratings. At the reporting date, the Association’s cash and cash equivalents are placed with three financial institutions (2014: four) and represent the Association’s maximum exposure to the concentration of credit risk.
FS31
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Liquidity risk Liquidity risk is the risk that the Association will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Association’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Association’s reputation. Typically, the Association ensures that it has sufficient cash on demand to meet expected operational expenses. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted. As at reporting date, the contractual undiscounted cash flows of the Association’s financial liabilities approximate the carrying values and are due within 6 months. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Association’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk. Market risk is managed by the Investment Committee by closely monitoring the market data and by setting up detailed investment policies. Currency risk The Association’s exposure to currency risk relates primarily to its investments. By virtue of its investment activities to optimise return, the Association is exposed to the effects of foreign currency exchange rate fluctuations, principally in currencies such as the United States dollar (USD). The Association’s foreign currency exposures at the reporting date are as follows: 2015 S$ Financial assets – investments USD
1,028,264
2014 S$
1,296,621
FS32
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Sensitivity analysis A 10% strengthening of the Singapore dollar against the following currencies at the reporting date would decrease the net income by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. Net deficit S$ 31 December 2015 USD
(102,826)
31 December 2014 USD
(129,662)
A 10% weakening of the Singapore dollar against those currencies at the reporting date would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant. Interest rate risk At the reporting date, the interest rate profile of the interest-bearing financial instruments was as follows: Nominal amount 2015 2014 S$ S$ Fixed rate instruments Fixed deposits
5,207,580
1,448,263
At the reporting date, management assessed that an increase/(decrease) of 25 basis points in interest rates would have no significant impact to the results of the Association (2014: No significant impact). Price risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. Sensitivity analysis The Association’s investments are designated as fair value through income or expenditure. A 10% increase or decrease in the underlying market prices at the reporting date, with all variables held constant would increase or decrease the net income by S$2,113,120 (2014: S$2,092,568).
FS33
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Funds management The Association is a society with no share capital at the reporting date. The Association builds up its funds from donations received and also through prudent management of its financial resources. The funds of the Association include unrestricted funds represented by the Accumulated funds (see note 10). The reserves of the Association provide financial stability and the means for the development of the Association’s activities. The Association intends to maintain the reserves at a level sufficient for its operating needs. The Board of Trustees and the Executive Committee of the Association review the level of reserves regularly for the Association’s continuing obligations. Ratio between the Association’s annual operating expenditure and its funds is as follows: 2015 S$ Total funds at 31 December Annual operating expenditure Ratio of funds to annual operating expenditure
33,627,020 18,826,729 1.8:1
2014 S$ 27,452,339 18,973,066 1.4:1
The Association’s funds are closely monitored to ensure that there are sufficient funds to support its programmes and activities. The Association is not subject to externally imposed requirements. Accounting classification and fair values Fair values versus carrying amounts Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. The carrying amounts of loans and receivables and other financial liabilities approximate their fair values due to the relatively short period to maturity of these financial assets and liabilities.
FS34
Singapore Indian Development Association Financial statements Year ended 31 December 2015
The fair value of financial assets and liabilities, together with the carrying amounts, shown in the statement of financial position are as follows:
Note
31 December 2015 Associate Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donations receivable – Singapore Totalisator Board Deposits, prepayments, tuition fee and other receivables Financial assets – investments Cash and cash equivalents Deferred capital grants Other payables and accrued expenses Unutilised specific grants/donations 31 December 2014 Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donations receivable – Singapore Totalisator Board Deposits, prepayments, tuition fee and other receivables Financial assets – investments Cash and cash equivalents Deferred capital grants Other payables and accrued expenses Unutilised specific grants/donations
5 6
7 8 9 11 12 13
6
7 8 9 11 12 13
Loans and receivables S$
Carrying amount Fair value through Other financial income or expenditure liabilities S$ S$
200,000 3,400,000 1,200,238 1,000,000 1,010,137 354,565 9,580,216 – – – 16,745,156
– – – – – 21,131,195 – – – – 21,131,195
3,400,000 721,069 1,000,000 1,148,362 360,845 4,814,562 – – – 11,444,838
– – – – 20,925,677 – – – – 20,925,677
Fair value
Total S$
Total S$
– – – – – – – (44,627) (2,600,186) (2,577,890) (5,222,703)
200,000 3,400,000 1,200,238 1,000,000 1,010,137 21,485,760 9,580,216 (44,627) (2,600,186) (2,577,890) 32,653,648
200,000 3,400,000 1,200,238 1,000,000 1,010,137 21,485,760 9,580,216 (44,627) (2,600,186) (2,577,890) 32,653,648
– – – – – – (80,071) (2,288,847) (3,691,616) (6,060,534)
3,400,000 721,069 1,000,000 1,148,362 21,286,522 4,814,562 (80,071) (2,288,847) (3,691,616) 26,309,981
3,400,000 721,069 1,000,000 1,148,362 21,286,522 4,814,562 (80,071) (2,288,847) (3,691,616) 26,309,981
FS35
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Fair value hierarchy The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: Note
Level 1 S$
Level 2 S$
Level 3 S$
Total S$
31 December 2015 Financial assets – held for trading
8
20,331,745
–
799,450
21,131,195
31 December 2014 Financial assets – held for trading
8
12,443,816
–
8,481,861
20,925,677
Measurement of fair values The following table shows a reconciliation from the opening balances to the ending balances for Level 3 fair values: Financial assets – held for trading S$ At 1 January 2015 Purchases Total unrealised loss recognised in the statement of financial activities Disposals Total realised gain on disposal recognised in the statement of financial activities At 31 December 2015
8,481,861 14,125 (89,530) (7,704,161) 97,155 799,450
FS36
Singapore Indian Development Association Financial statements Year ended 31 December 2015
Valuation techniques and significant unobservable inputs The following table shows the valuation technique used in measuring Level 3 fair values, as well as the significant unobservable inputs used:
Financial assets – held for trading
Type of investment
REIT/real Real estate estate funds fund Absolute return Private equity funds fund Private equity Private equity funds fund Unit trustsEquity unit equity trust
Fair value at 31 December 2015 2014 S$ S$
411,611 611,222 17,157
24,803
370,682 682,066 − 7,163,770
Inter relationship between key unobservable Significant inputs and fair Valuation unobservable value technique inputs measurement
Net Asset Value Net Asset Value Net Asset Value Net Asset Value
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
The Association obtains third party statements to determine the Net Asset Values (“NAV”) of investments included in Level 3. The Association’s Investment Committee has determined that the reported NAV represent fair values at the reporting date.
FS37
Singapore Indian Development Association 1 Beatty Road, Singapore 209943 Hotline 1800 295 4554 www.sinda.org.sg mysinda mysinda mysinda
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