Fiducia LLP (UEN. T10LL0955L) Public Accountants and Chartered Accountants of Singapore

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1 CARE CORNER SINGAPORE LTD. [A company limited by guarantee and not having share capital] [Incorporated in the Republic of Singapore] AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017 CONTENTS Directors Statement 2 Independent Auditor s Report 4 Statement of Comprehensive Income 7 Statement of Financial Position 8 Statement of Changes in Funds 9 Statement of Cash Flows 13 Notes to the Financial Statements 14 Fiducia LLP (UEN. T10LL0955L) Public Accountants and Chartered Accountants of Singapore 71 Ubi Crescent Excalibur Centre, #08-01 Singapore T: (65) F: (65)

2 DIRECTORS STATEMENT The directors present their statement to the members together with the audited financial statements for the financial year ended 31 March In the opinion of the directors, a) the financial statements as set out on pages 7 to 71, are drawn up so as to give a true and fair view of the financial position of the Company at 31 March 2017, and the financial performance, changes in funds and cash flows of the Company for the financial year ended 31 March 2017 covered by the financial statements; and b) at 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. Directors The directors of the Company in office at the date of this statement are as follows: Pang Kok Meng Tan Kia Jin Ang Yew Tiong, Daniel Ong Kok Chye, Benjamin Huan Nam Guan, James Gan Fong Jek Yong Lum Sung Lim Boon Cheng, Robin Tan Jee Mee, Mrs Ginny Soh Koh Him Leong Tan Yip Wai, Ezekiel Ho Ming Heng (appointed on 14 September 2016) Koh Dolly (appointed on 13 March 2017) Fong Saik Hay (appointed on 13 March 2017) Tan Siang Hwa, Wilson (appointed on 13 March 2017) Arrangements to enable directors to acquire benefits Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose object is to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate. Other matters As the Company is limited by guarantee, matters relating to interest in shares, debentures or share options are not applicable. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 2 of 71

3 DIRECTORS STATEMENT (CONT D) Independent Auditors The independent auditors, Messrs. Fiducia LLP, Public Accountants and Chartered Accountants, have expressed their willingness to accept re-appointment. On behalf of the directors, Ang Yew Tiong, Daniel Director Gan Fong Jek Director Singapore, Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 3 of 71

4 Fiducia LLP Public Accountants and Chartered Accountants of Singapore 71 Ubi Crescent Excalibur Centre #08-01 Singapore T: (65) F: (65) Independent auditor s report to the members of: CARE CORNER SINGAPORE LTD. [A company limited by guarantee and not having share capital] [Incorporated in the Republic of Singapore] Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of Care Corner Singapore Ltd. (the "Company ), which comprise the statement of financial position as at 31 March 2017, and the statement of comprehensive income, statement of changes in funds and statement of cash flows of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the Companies Act, Chapter 50 (the Companies Act ), the Charities Act, Chapter 37 and other relevant regulations ( the Charities Act and Regulations ) and Financial Reporting Standards in Singapore ( FRSs ) so as to give a true and fair view of the financial position of the Company as at 31 March 2017, and of the financial performance, changes in funds and cash flows of the Company for the financial year ended on that date. Basis for Opinion We conducted our audit in accordance with Singapore Standards on Auditing ( SSAs ). Our responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Accounting and Corporate Regulatory Authority ( ACRA ) 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 opinion. Other Information Management is responsible for the other information. The other information comprises the Directors Statement set out on pages 2 and 3 but does not include the financial statements and our auditor s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 4 of 71

5 Fiducia LLP Public Accountants and Chartered Accountants of Singapore 71 Ubi Crescent Excalibur Centre #08-01 Singapore T: (65) F: (65) (CONT D) Independent auditor s report to the members of: CARE CORNER SINGAPORE LTD. [A company limited by guarantee and not having share capital] [Incorporated in the Republic of Singapore] Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the provisions of the Companies Act, the Charities Act and Regulations and FRSs, and for devising and maintaining a system of internal control sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. In preparing the financial statements, management is responsible for assessing the Company s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance comprises the directors. Their responsibilities include overseeing the Company s financial reporting process. Auditor s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 5 of 71

6 Fiducia LLP Public Accountants and Chartered Accountants of Singapore 71 Ubi Crescent Excalibur Centre #08-01 Singapore T: (65) F: (65) (CONT D) Independent auditor s report to the members of: CARE CORNER SINGAPORE LTD. [A company limited by guarantee and not having share capital] [Incorporated in the Republic of Singapore] Auditor s Responsibilities for the Audit of the Financial Statements (Cont d) Conclude on the appropriateness of management s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements In our opinion, the accounting and other records required to be kept by the Company have been properly kept in accordance with the provisions of the Companies Act, and the Charities Act and Regulations. During the course of our audit, nothing has come to our attention that causes us to believe that during the financial year: (a) (b) the Company has not used the donation moneys in accordance with its objectives as required under Regulation 11 of the Charities (Institutions of a Public Character) Regulations; and the Company has not complied with the requirements of Regulation 15 of the Charities (Institutions of a Public Character) Regulations. Fiducia LLP Public Accountants and Chartered Accountants Singapore, Partner-in-charge: Lee Choon Keat PAB. No.: Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 6 of 71

7 STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 INCOME Unrestricted fund Restricted fund Total Note S$ S$ S$ S$ Grants MSF funding 0 12,400,609 12,400,609 5,998,851 NCSS Funding 9,088 2,132,675 2,141,763 1,279,675 Other grants 4 462,779 5,232,094 5,694,873 3,246,878 Donations - Tax exempt 61,653 1,089,179 1,150, ,338 - Non-tax exempt , , ,913 Care fee 0 694, , ,660 Counselling fee 0 105, ,153 84,726 Programme fee 0 16,905 16,905 2,561 Tuition fee 0 221, , ,720 Other income 5 1,094,456 (519,083) 575, ,154 Total income 1,628,476 21,634,342 23,262,818 12,303,476 EXPENDITURE Expenditure on manpower 6 1,150,993 16,722,523 17,873,516 8,738,604 Other operating expenditure 7 184,162 1,843,617 2,027,779 1,187,775 Total expenditure 1,335,155 18,566,140 19,901,295 9,926,379 NET SURPLUS 293,321 3,068,202 3,361,523 2,377,097 The accompanying notes form an integral part of these financial statements. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 7 of 71

8 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017 ASSETS Note S$ S$ Current assets Cash and bank balances 8 31,186,350 15,904,302 Trade and other receivables 9 1,340,821 20,162,799 32,527,171 36,067,101 Non-current assets Property, plant and equipment 10 1,716,699 1,913,363 Total assets 34,243,870 37,980,464 LIABILITIES Current liabilities Trade and other payables 11 2,573,754 11,072,216 Total liabilities 2,573,754 11,072,216 NET ASSETS 31,670,116 26,908,248 FUNDS Unrestricted fund General fund 12 11,025,144 10,773,850 Restricted funds Restricted funds 13 14,830,340 11,750,390 Restricted fund held in trust 13 5,814,632 4,384,008 20,644,972 16,134,398 TOTAL FUNDS 31,670,116 26,908,248 The accompanying notes form an integral part of these financial statements Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 8 of 71

9 STATEMENT OF CHANGES IN FUNDS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 Net Surplus/ (Deficit) Movement of restricted funds held in trust Transfer between funds Transfer from / to related parties (Note 1) S$ S$ S$ S$ S$ S$ Balance at beginning of year Balance at end of year 2017 Unrestricted fund General fund 10,773, , ,623 (85,650) 11,025,144 Restricted funds Co-parenting programme 685, , ,544,089 Enhanced Step-up (73,056) (73,056) FSC(Tampines) 1,138, , ,503,271 Family journey programme 251, , ,618 Kids Light (38,030) (2,278) (40,308) PREPS 28,444 14, ,970 Youth Go! 69,541 (48,665) ,876 CCCC - Counselling centre 986, , ,226,787 - Mandatory 37,844 (2,585) ,259 - Special marriage license 71,267 2, ,941 - Supervision 2,640 5, ,014 TGYC - Administration 130,700 22, ,800 - Evergreen bees fund 39, , ,771 - Triage 0 (16,732) (16,732) FSC (Admiralty) - FSC 1,242, ,439 0 (29,169) 0 1,506,129 - Crossroads Youth programme (CYC) (68,110) (4,849) 0 11,748 0 (61,211) - CYC CAPA (17,397) 17, CYC Adventure 3, ,895 - Enhanced Step-Up (14,006) 112, ,299 - Guidance 15,016 (35,283) (20,267) - Mandatory (29,169) , SCCAM 201,064 (50,179) ,885 - Open hands 60,669 (60,669) Learn and Play 35,602 (35,602) Youth Drop in centre (23,028) (56,307) (79,335) - Triage 0 8, ,328 - YARE 0 23, ,710 FSC (Queenstown) - FSC 745, , ,207,411 - A Mother A Woman 254,371 (118,059) ,312 - Elderly 287,797 (125,598) ,199 - Strengthen Families Together (SFT) 24,323 2, ,741 - Kid Start 382,226 (142,366) ,860 - Way- Youth 195,010 (91,152) ,858 - Community Outreach 0 7, ,078 - Project START 1,405,366 1,134, ,540,250 FSC (Toa Payoh) - FSC 2,692, , , ,849,305 - Mandatory 25, (25,998) W@P 40,606 (40,606) SCCTP 159,501 (20,622) ,879 FSC (Woodlands) - FSC 1,113,589 (115,968) 0 88, ,085,959 - Kids Launch 32, ,010 - Enhanced Step-up (40,279) (40,279) - Community Outreach (274,184) (41,641) (315,825) - Access Arrangement SVCS 15, ,751 - Mandatory 88, (88,338) SCCWL (103,142) (101,909) (205,051) - SCCMPS (8,126) (8,126) - Educational Therapy Service 151,363 51, ,694 - Youth Rangers (178,317) (178,317) - Marriage Prep 2, ,584 Sub-total 11,750,390 3,068, , ,830,340 Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 9 of 71

10 STATEMENT OF CHANGES IN FUNDS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 (CONT D) Balance at beginning of year Movement of restricted funds held in trust Transfer between funds Transfer from / to related parties (Note 1) Net Surplus/ (Deficit) Balance at end of year 2017 S$ S$ S$ S$ S$ S$ Restricted fund held in trust Asset Capitalisation Reserve 467,288 0 (118,056) 192,835 35, ,900 Building Fund 3, ,466 Bursary Fund 33, , ,792 Care and Share Fund 110, ,769 (645,239) 571, ,879 Designated Project Fund - Jubilee 0 0 (199,406) 408, ,795 - Lien foundation ,946 1,665, ,737 2,237,088 - Milk fund 0 0 (30,649) 1,125, ,094,351 - Other 3,229,746 0 (25,039) (2,801,073) 0 403,634 Emergency Fund 64,900 0 (42,919) ,981 FSC ComCare Fund 36,173 0 (984) ,189 Poor and Needy Fund 202, ,357 (500) 0 204,638 Programme Development Fund 2, ,098 School Pocket Money Fund 173,324 0 (76,391) ,933 School Pocket Money Fund (Post-Secondary) 60,022 0 (27,134) ,888 Sub-total 4,384, ,588 (55,371) 856,407 5,814,632 Total restricted funds 16,134,398 3,068, ,588 (43,623) 856,407 20,644,972 TOTAL FUNDS 26,908,248 3,361, , ,757 31,670,116 The accompanying notes form an integral part of these financial statements Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 10 of 71

11 STATEMENT OF CHANGES IN FUNDS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2016 Net Surplus/ (Deficit) Movement of restricted funds held in trust Transfer from / to related parties (Note 1) S$ S$ S$ Balance at beginning of year Balance at end of year 2016 Unrestricted fund General fund 3,364, , ,121,874 10,773,850 Restricted funds Co-parenting programme 44, , ,480 Enhanced Step-up (66,546) (6,510) 0 0 (73,056) FSC(Tampines) 553, , ,138,000 Family journey programme (63,315) 315, ,857 Kids Light (7,083) (30,947) 0 0 (38,030) PREPS 0 28, ,444 Youth Go! 33,764 35, ,541 CCCC - Counselling Centre 0 260, , ,018 - Mandatory 0 1, ,245 37,844 - Special marriage license 0 9, ,452 71,267 - Supervision 0 2,688 0 (48) 2,640 TGYC - Administration 0 (82,798) 0 213, ,700 - Evergreen bees fund 0 45,265 0 (5,922) 39,343 CCSS - SCNWLCS 0 (27,025) 0 27, SCNWLSAC 0 (4,649) 0 4, SCNWLSGH 0 (7,780) 0 7,780 0 FSC (Admiralty) - FSC 0 213, ,028,964 1,242,859 - CYC CAPA (17,397) (17,397) - CYC Adventure ,895 3,895 - Crossroads Youth programme 0 (52,936) 0 (15,174) (68,110) - Guidance 0 (24,812) 0 39,828 15,016 - Mandatory 0 (4,061) 0 (25,108) (29,169) - Enhanced Step-up 0 (30,306) 0 16,300 (14,006) - SCCAM 0 6, , ,064 - Open hands ,669 60,669 - Learn and Play ,602 35,602 - Youth Drop in centre (23,028) (23,028) FSC (Queenstown) - A Mother A Woman 0 (7,326) 0 261, ,371 - Way- Youth 0 (10,767) 0 205, ,010 - Kid Start 0 1, , ,226 - Elderly 0 (10,820) 0 298, ,797 - Strengthen Families Together 0 2, ,130 24,323 - FSC 0 (38,563) 0 783, ,348 - Family Violence Specialist Centre 0 213, ,191,578 1,405,366 Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 11 of 71

12 STATEMENT OF CHANGES IN FUNDS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2016 (CONT D) Net Surplus/ (Deficit) Movement of restricted funds held in trust Transfer from / to related parties (Note 1) S$ S$ S$ Balance at beginning of year Balance at end of year 2016 Restricted funds (Cont d) FSC (Toa Payoh) - FSC 0 (33,366) 0 2,726,180 2,692,814 - W@P 0 (43,393) 0 83,999 40,606 - Mandatory 0 (1,470) 0 27,468 25,998 - SCCTP 0 5, , ,501 FSC (Woodlands) - FSC 0 18, ,094,734 1,113,589 - Kids Launch ,010 32,010 - Enhanced Step-up (40,279) (40,279) - Mandatory 0 14, ,059 88,338 - Access Arrangement SVCS ,751 15,751 - Community Outreach 0 (42,418) 0 (231,766) (274,184) - Marriage Prep ,584 2,584 - Youth Rangers 0 (32,439) 0 (145,878) (178,317) - SCCWL 0 (7,713) 0 (95,429) (103,142) - SCCMPS 0 4,684 0 (12,810) (8,126) - ETS 0 184,115 0 (32,752) 151,363 Sub-total 494,913 2,089, ,166,345 11,750,390 Restricted funds held in trust Asset Capitalisation Reserve 306,578 0 (295,531) 456, ,288 Building Fund ,466 3,466 Bursary Fund 60,051 0 (85,316) 58,963 33,698 Care and Share Fund 0 73,487 37, ,512 Emergency Fund 20, ,300 16,600 64,900 FSC ComCare Fund 1, ,610 29,560 36,173 Poor and Needy Fund 49,336 0 (19,855) 173, ,781 Project Development Fund ,098 2,098 School Pocket Money Fund 34, , , ,324 School Pocket Money Fund (Post-Secondary) 9, ,758 6,156 60,022 Sub-total 1,414,018 73,487 (8,474) 2,904,977 4,384,008 Total restricted funds 1,908,931 2,162,619 (8,474) 12,071,322 16,134,398 TOTAL FUNDS 5,272,942 2,450,584 (8,474) 19,193,196 26,908,248 The accompanying notes form an integral part of these financial statements. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 12 of 71

13 STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH Note S$ S$ Cash flows from operating activities Total comprehensive income 3,361,523 2,377,097 Adjustment for: - Amortisation of asset capitalisation reserve (294,038) (297,110) - Depreciation , ,949 - Gain on disposal of property, plant and equipment (2,407) 0 - Property, plant and equipment written off 1, Interest income 5 (341,574) (9,593) Operating cash flow before working capital changes 3,341,911 2,728,343 Changes in operating assets and liabilities - Trade and other receivables 18,989,769 (19,761,635) - Trade and other payables (8,498,462) 10,377,616 - Transfer of funds from related parties 770,757 19,266,683 - Transfer of accumulated funds 43, Transfer of property, plant and equipment from related parties 10 (147,048) (816,559) Operating cash flow before working capital changes 14,500,550 11,794,448 Interest received 12,276 7,335 Net cash provided by operating activities 14,512,826 11,801,783 Cash flows from investing activities Increase in fixed deposits with maturity over 3 months (14,500,000) 0 Interest received 161,507 2,258 Proceeds from disposal of property, plant and equipment 5,207 0 Purchases of property, plant and equipment 10 (277,495) (228,093) Net cash used in investing activities (14,610,781) (225,835) Cash flows from financing activities Increase of restricted funds held in trust 880, ,636 Net cash provided by financing activities 880, ,636 Net (decrease)/increase in cash and cash equivalents 782,048 11,864,584 Cash and cash equivalents at beginning of financial year 15,904,302 4,039,718 Cash and cash equivalents at end of financial year 8 16,686,350 15,904,302 Cash and cash equivalents comprise: Cash on hand 9,083 8,161 Cash at bank 4,677,267 14,046,141 Fixed deposits 26,500,000 1,850,000 31,186,350 15,904,302 Less: fixed deposits with maturity more than 3 months (14,500,000) ,686,350 15,904,302 The accompanying notes form an integral part of these financial statements. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 13 of 71

14 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1. General information Care Corner Singapore Ltd. (the Company ) is incorporated and domiciled in Singapore. The address of its registered office and principal place of operation is located at 8 New Industrial Road, #06-03, LHK3 Building, Singapore The objects for which the Company is established are: a) To promote family well-being through the provision of welfare services like childcare, after school care, family service centres and others. b) To promote active involvement of Christians and other in community work through recreational, sporting and other activities. c) To organise and carry out fund-raising projects and campaigns to support the activities of the Company. d) To do all such other things as are incidental or conducive to the attainment of the above objects or any of them. The Company is granted Institution of a Public Character ( IPC ) status for the period from 1 February 2017 to 31 July In the last financial year, the following related parties transferred their programmes and operations, tangible assets and liabilities. The aggregate transfer value was based on the net book value of assets and liabilities of the entities to the Company: Care Corner Counselling Centre ( CCCC ) Teck Ghee Youth Centre ( TGYC ) Family Services Centre (Admiralty) ( FSCAM ) Family Services Centre (Queenstown) ( FSCQT ) Family Services Centre (Toa Payoh) ( FSCTP ) Family Services Centre (Woodlands) ( FSCWL ) (Transfer on 30 June 2015) (Transfer on 30 June 2015) (Transfer on 31 December 2015) (Transfer on 31 December 2015) (Transfer on 31 December 2015) (Transfer on 31 December 2015) In the last financial year, the company transferred their senior programmes and operation including tangible assets and liabilities. The aggregate transfer value was based on the net book value of assets and liabilities of the entities as at 31 December 2015 for Care Corner Seniors Services Ltd ( CCSS ). In the last financial year, the Company transferred an amount S$230,000 to CCSS. In the same year, the Company received cash transferred from following entities: CCCC with amount of S$1,039,103 (2016: S$1,300,000) TGYC with amount of S$662,158 (2016: S$500,000) FSCAM with amount of S$2,820,496 (2016: S$900,000) FSCQT with amount of S$2,213,933 (2016: S$3,500,000) FSCTP with amount of S$3,549,948 (2016: S$2,300,000) FSCWL with amount of S$2,166,338 (2016: S$1,700,000) Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 14 of 71

15 1. General information (Cont d) In the last financial year, the Company transferred the plant and equipment of S$37,163 to CCSS. The Company received plant and equipment transferred from following entities: CCCC with amount of S$Nil (2016: S$18,575) TGYC with amount of S$21,352 (2016: S$19,841) FSCAM with amount of S$1,512 (2016: S$57,933) FSCQT with amount of S$4,472 (2016: S$342,754) FSCTP with amount of S$Nil (2016: S$315,277) FSCWL with amount of S$119,712 (2016: S$99,342) The restructuring was completed on 31 March Significant accounting policies 2.1 Basis of preparation The financial statements have been prepared in accordance with Singapore Financial Reporting Standard ( FRS ) and the disclosure requirements of the Companies Act, Chapter 50, Charities Act, Chapter 37 and other relevant regulations. The financial statements have been prepared under the historical cost convention, except as disclosed in the accounting policies below. These financial statements are presented in Singapore Dollar (S$), which is the Company s functional currency. The preparation of these financial statements in conformity with FRS requires management to exercise its judgement in the process of applying the Company s accounting policies. It also requires the use of certain critical accounting estimates and assumptions that affects the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the financial period. Although these estimates are based on directors best knowledge of current events and actions, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3. Interpretations and amendments to published standards effective in 2016 On 01 April 2016, the Company adopted the new or amended FRS and Interpretations of FRS ( INT FRS ) that are mandatory for application for the financial period. Changes to the Company 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 accounting policies of the Company and had no material effect on the amounts reported for the current financial period. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 15 of 71

16 2. Significant accounting policies 2.1 Basis of preparation New or amended Standards and Interpretations effective after 1 April 2016 The following are the new or amended Standards and Interpretations (issued by Accounting Standards Council up to 04 January 2017) that are not yet applicable, but may be early adopted for the current financial year: Descriptions FRS 114: Regulatory Deferral Accounts Amendments to FRS 27: Equity Method in Separate Financial Statements Amendments to FRS 16 and FRS 38: Clarification of Acceptable Methods of Depreciation and Amortisation Amendments to FRS 16 and FRS 41: Agricultural Bearer Plants Amendments to FRS 111: Accounting for Acquisitions of Interests in Joint Operations Amendments to FRS 110 and FRS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Amendments to FRS 110, FRS 112 and FRS 28: Investment Entities: Applying the Consolidation Exception FRS 1 Amendments to FRS 1: Disclosure Initiative Amendments to: - FRS 7 Statement of cash flows (Disclosure initiative) - FRS 12 Income taxes (Recognition of deferred tax assets for unrealised losses) Annual periods commencing on 1 January January 2017 FRS 109 Financial Instruments FRS 115 Revenue from Contracts with Customers Amendments to: - FRS 102 Classification and Measurement of Share-based Payment Transactions - FRS 40 Transfers of Investment Property - FRS 115 Clarifications to FRS 115 Revenue from Contracts with Customers 1 January 2018 FRS 116 Leases 1 January 2019 Management believes that the adoption of the revised standards and interpretations will have no material impact on the financial statements in the period of initial application. 2.2 Income recognition Income comprises the fair value of the consideration received or receivable for the services rendered in the ordinary course of the Company s activities. Income is recognised as follows: Government grants Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions. Government grants, relating to costs are deferred and recognised in the statement of comprehensive income over the period necessary to match them with the costs they are intended to compensate. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 16 of 71

17 2. Significant accounting policies (Cont d) 2.2 Income recognition (cont d) Donations Fees Donations income are recognised on receipt basis. Donations-in-kind are recognised when the fair value of the assets received can be reasonably ascertained. Fees are recognised on accrual basis over the period of the programme Interest income Interest income is recognised on a time-proportion basis using the effective interest method Other income Other income is recognised on accrual basis. 2.3 Expenditure recognition All expenditures are accounted for on accrual basis, aggregated under the respective areas. Direct costs are attributed to the activity where possible. Where costs are not wholly attributable to an activity, they are apportioned on a basis consistent with the use of resources. 2.4 Property, plant and equipment Measurement All property, plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of property, plant and equipment initially recognised includes its purchase price and any costs that are directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Dismantlement, removal or restoration costs are included as part of the cost of property, plant and equipment if the obligation for dismantlement, removal and restoration is included as a consequence of acquiring or using the property, plant and equipment. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 17 of 71

18 2. Significant accounting policies (Cont d) 2.4 Property, plant and equipment (cont d) Depreciation Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as follows: Useful lives Air-conditioner Freehold property Furniture and fittings IT equipment Motor vehicle Office equipment Renovation 5 years 30 years 5 years 3 years 5 years 5 years 5 years The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in profit or loss when the changes arise Subsequent expenditure Subsequent expenditure relating to property, plant and equipment that have already been recognised is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Other subsequent expenditure is recognised as repair and maintenance expenses in statement of comprehensive income during the financial year in which it is incurred Disposal On disposal of an item of property, plant and equipment, the difference between the net disposals proceeds and its carrying amount is recognised in profit and loss. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 18 of 71

19 2. Significant accounting policies (Cont d) 2.5 Impairment of non-financial assets Property, plant and equipment are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired. For the purpose of impairment, the recoverable amount (i.e. the higher of the fair value less cost to sell and value in use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, recoverable amount is determined for the cash-generating unit (CGU) to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognised as an impairment loss in profit or loss, unless the asset is carried at revalued amount, in which case, such impairment loss is treated as a revaluation decrease. An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a change in the estimates used to determine the asset s recoverable amount since the last impairment loss was recognised. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss, unless the asset is carried at revalued amount, in which case, such reversal is treated as a revalued increase. 2.6 Financial assets Classification The Company classifies its financial assets as loans and receivables. The classification depends on the purpose for which the assets were acquired. Management determines the classification of its financial assets at initial recognition and re-evaluates this designation at every reporting date. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except those maturing later than 12 months after the statement of financial position date, which are classified as non-current assets. Loans and receivables are classified within Trade and other receivables and Cash and cash equivalents on the statement of financial position Recognition and derecognition Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. On disposal of a financial asset, the difference between the carrying amount and the sale proceeds is recognised in profit or loss. Any amount previously recognised in other comprehensive income relating to that asset is reclassified to profit or loss. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 19 of 71

20 2. Significant accounting policies (Cont d) 2.6 Financial assets (Cont d) Measurement Financial assets are initially recognised at fair value plus transaction costs. Loans and receivables are subsequently carried at amortised cost using effective interest method Impairment The Company assesses at each statement of financial position date whether there is objective evidence that a financial asset or a group of financial assets is impaired and recognises an allowance for impairment when such evidence exists. Loans and receivables Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments is considered indicators that the receivable is impaired. An allowance for impairment of loans and receivables is recognised when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. The amount of the allowance is the difference between the asset s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. When the amount becomes uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are recognised against the same line item in statement of comprehensive income. 2.7 Cash and cash equivalents Cash and cash equivalents include cash on hand and deposits with financial institutions. Cash and cash equivalents are carried at cost. 2.8 Financial liabilities Financial liabilities are recognised when the Company becomes a party to the contractual agreements of the instrument and are classified according to the substance of the contractual arrangements entered into. All interest related charges are recognised in the statement of comprehensive income. Financial liabilities include Trade and other payables. Financial liabilities are derecognised when the obligations under the liability are discharged, cancelled or expired. When existing financial liabilities are replaced by another from the same lender on substantially different terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in respective carrying amounts is recognised in the statement of comprehensive income. 2.9 Trade and other payables Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost, using the effective interest method. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 20 of 71

21 2. Significant accounting policies (Cont d) 2.10 Provisions for other liabilities and charges Provisions for other liabilities and charges are recognised when the Company has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated Fair value estimation of financial assets and liabilities 2.12 Funds The carrying amounts of current financial assets and liabilities, carried at amortised cost, are assumed to approximate their fair values due to their short-term nature. Fund balances restricted by outside sources are so indicated and are distinguished from unrestricted funds allocated to specific purposes, if any, by action of the Directors. Externally restricted funds may only be utilised in accordance with the purposes for which they are established. The Directors retain full control over the use of unrestricted funds for any of the Company s purposes Operating leases Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are taken to the statement of comprehensive income on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place. Rental on operating lease is charged to the statement of comprehensive income. Contingent rents are recognised as an expense in the statement of comprehensive income in the financial year in which they are incurred Employee compensation Defined contribution plans Defined contribution plans are post-employment benefit plans under which the Company pays fixed contributions into separate entities such as the Central Provident Fund ( CPF ), on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. The Company s contribution to defined contribution plans are recognised as employee compensation expense when they are due. Employee leave entitlement Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the statement of financial position date. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 21 of 71

22 2. Significant accounting policies (Cont d) 2.15 Related parties A related party is defined as follows: (a) A person or a close member of that person s family is related to the Company if that person: (i) (ii) (iii) has control or joint control of the Company; has significant influence over the Company; or is a member of the key management personnel of the Company or of a parent of the Company. (b) An entity is related to the Company if any of the following conditions applies: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) The entity and the Company are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). Both entities are joint ventures of the same third party. One entity is a joint venture of a third entity and the other entity is an associate of the third entity. The entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the Company. If the Company is itself such a plan, the sponsoring employers are also related to the Company. The entity is controlled or jointly controlled by a person identified in (a). A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). The entity, or any member of a group of which it is a part, provides key management personnel services to the Company or to the parent of the Company. 3. Critical accounting estimates, assumptions and judgments Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical judgments in applying the entity s accounting policies The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. Estimated useful lives of property, plant and equipment The Company reviews annually the estimated useful lives of property, plant and equipment based on factors such as operating plans and strategies, expected level of usage and future technological developments. It is possible that future results of operations could be materially affected by changes in these estimates brought about by changes in the factors mentioned. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 22 of 71

23 3. Critical accounting estimates, assumptions and judgments Impairment of non-financial assets Non- financial assets are reviewed for impairment whenever there is any indication that the assets are impaired. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and value in use) of the assets is estimated to determine the impairment loss. The key assumptions for the value in use calculation are those regarding the growth rates, and expected change to selling price and direct costs during the year and a suitable discount rate. Allowance for impairment of receivables The Company reviews the adequacy of allowance for impairment of receivables at each closing by reference to the ageing analysis of receivables, and evaluates the risks of collection according to the credit standing and collection history of individuals. If there are indications that the financial position of an individual has deteriorated resulting in an adverse assessment of his risk profile, an appropriate amount of allowance will be provided. 4. Other grants S$ S$ Tote Board Funding 3,879,334 1,927,096 NCSS Grant - Care & Share 881, ,484 MSF - Corporate Development Funding 429, ,231 Training 5,930 24,781 Paid Childcare Leave 24,306 12,676 Government Paid Maternity/Paternity Leave 68,420 10,293 Job Credit/TEC, etc 208, ,369 Wage Credit 118, ,440 Others 78,843 85,508 5,694,873 3,246, Other income S$ S$ Administration fee 172, ,890 Interest income 341,574 9,593 Other income 61,006 83, , ,154 Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 23 of 71

24 6. Expenditure on manpower S$ S$ Manpower contract service and recruitment expenses 564, ,663 Staff cost - CPF and SDL contributions 2,339,837 1,088,391 - Salaries, allowance and bonus 14,362,596 7,190,894 Staff welfare - Medical expenses 130,064 46,810 - Other staff costs 121,049 72,867 - Training 355, ,979 17,873,516 8,738,604 The manpower expenditure for current year covers all costs fully novated over to CCS, while for last year it includes manpower costs for the partial period of entities novated over. For more details please refer to note Other operating expenditure S$ S$ Admin support 46,292 0 Amortisation (294,038) (297,110) Auditor s remuneration 22,941 12,815 Bad debt write off 1,245 0 Bank charges 2, Books and periodicals 6,786 4,075 Depreciation 616, ,949 Disposal of property, plant and equipment (2,407) 0 Property, plant and equipment written off 1,670 0 Food and refreshments 55,374 18,279 General expenses 14,377 29,479 GST expenses 12,369 0 Insurance 30,444 9,459 IT expenses 74,743 62,917 Maintenance of equipment 145,164 68,122 Maintenance of land and building 92,406 40,848 Maintenance of motor vehicle 14,382 11,455 Printing, postage and stationery 80,332 42,160 Professional fee 214,276 68,651 Programme expenses 401, ,888 Property tax 5,270 5,270 Rental 167,387 80,991 Telephone charges 93,769 55,411 Transport 98,061 48,480 Utilities 124,791 64,734 Withholding tax 1, ,027,779 1,187,775 Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 24 of 71

25 8. Cash and bank balances S$ S$ Cash on hand 9,083 8,161 Cash at bank 4,677,267 14,046,141 Fixed deposits 26,500,000 1,850,000 31,186,350 15,904,302 For the purpose of presenting the statement of cash flows, cash and cash equivalents comprise the following: S$ S$ Cash on hand 9,083 8,161 Cash at bank 4,677,267 14,046,141 Fixed deposits 26,500,000 1,850,000 31,186,350 15,904,302 Less: fixed deposits with maturity over 3 months (14,500,000) 0 16,686,350 15,904,302 Fixed deposits at the reporting date had maturity dates ranging from 1 month to 15 month as at 31 March 2017 (2016: 1 to 2 month) and had a weighted average effective interest rate of 1.24% (2016: 0.65%) per annum. 9. Trade and other receivables S$ S$ Trade receivables - Non-related parties 0 16,250 Other receivables - Deposits 33,924 33,303 - Grants 102,084 7,380 - GST receivables 12, Interest receivables 167, Other receivables- related parties 756,637 20,063,861 - Other receivables- others 5,198 18,743 - Prepayments 262,416 23,262 1,340,821 20,162,799 The amount in other receivables - related parties are incoming funds, grants and any other income that the related parties received on behalf of CCS. These receivables include mainly the transfer of funds related to novation. The Company registered for Goods and Services Tax (GST) on 1 September At the reporting date, the carrying amounts of trade and other receivables approximated their fair values. Fiducia LLP, Public Accountants and Chartered Accountants of Singapore Page 25 of 71