HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED 香港風濕病基金會有限公司 FINANCIAL STATEMENTS MARCH 31, 2008

Transcription

1 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED 香港風濕病基金會有限公司 FINANCIAL STATEMENTS MARCH 31, 2008 AUDITED BY 李兆良劉願宜會計師行有限公司 SL LEE & LAU CPA LIMITED CERTIFIED PUBLIC ACCOUNTANTS HONG KONG

2 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED FINANCIAL STATEMENTS MARCH 31, 2008 C O N T E N T S PAGES REPORT OF THE EXECUTIVE COMMITTEE MEMBERS 1 & 2 INDEPENDENT AUDITORS' REPORT 3 & 4 INCOME AND EXPENDITURE ACCOUNT 5 BALANCE SHEET 6 CASH FLOW STATEMENT 7 NOTES TO THE FINANCIAL STATEMENTS 8 TO 13

3 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED REPORT OF THE COMMITTEE MEMBERS The executive committee members have pleasure in submitting their report and the audited financial statements for the year ended March 31, RESULTS The results of Hong Kong Arthritis & Rheumatism Foundation Limited ("the Foundation") for the year ended March 31, 2008 and the state of affairs of the Foundation as at that date are set out in the accompanying financial statements. PRINCIPAL PLACE OF ACTIVITIES The Foundation is a limited liability company incorporated and domiciled in Hong Kong. The address of its registered office is Room 1702, 17/F., Tung Hip Commercial Building, 248 Des Voeux Road Central, Hong Kong and the place of operation is at Room 14, G/F, HKSR Lam Tin Complex 7 Rehab Path, Kwun Tong Kowloon, Hong Kong. PRINCIPAL ACTIVITIES The principal activities of the Foundation continued to elevate the standard of care for arthritic and rheumatic conditions and to provide care services for patients sufferring from arthritic and rheumatic conditions in Hong Kong and mainland China. PLANT AND EQUIPMENT Movements in plant and equipment of the Foundation during the year are disclosed in Note 4 to the financial statements. EXECUTIVE COMMITTEE MEMBERS The following persons were Executive Committee Members of the Foundation during the year and up to the date of this report:- Yau Po-wing, David (Chairman, elected on June 2, 2007) Chan Tak Hin (Vice-Chairman) Mok Mo-yin, Temy (Hon Secretary, elected on June 2, 2007) Chan Ka-lok (Hon Treasurer) Cheung Wai-han, Elsa (Hon Legal Advisor) Chan Ka-ming, Albert Chan King Chu 1

4 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED REPORT OF THE COMMITTEE MEMBERS EXECUTIVE COMMITTEE MEMBERS (CONT'D) Chan Shu-kam, Shirley Cheng Pauline Lee Ka-yan, David Poon King Kong, Peter Lee Ka-wing, Gavin (elected on October 5, 2007) Cheng Hang-cheong (elected on October 5, 2007) Hung Main Yin Linda (elected on October 5, 2007) Tsang Wai Ping Cecilia (elected on October 5, 2007) Ng Kam-hung, Daniel (elected on October 5, 2007) Lau Chak-sing, Wallace (Chairman, resigned on June 2, 2007) Kun Wai-lin, Emily (Vice-Chairman, resigned on July 5, 2007) Chu Mang-yee (resigned on June 2, 2007) Lee Tsz-leung (resigned on June 2, 2007) In accordance with the Company's Articles of Association of the Foundation, all existing committee members retire, and being eligible, offer themselves for re-election. EXECUTIVE COMMITTEE MEMBERS' INTERESTS At no time during the year was the Foundation a party to any arrangements to enable the executive committee members of the Foundation to acquire benefits by means of the acquisition of shares in or debentures of the Foundation or any other body corporate. None of the executive committee members had a beneficial interest in any material contracts to which the Foundation was a party during the financial year. AUDITORS The financial statements have been audited by SL Lee & Lau CPA Limited, Certified Public Accountants, who retire and, being eligible, offer themselves for re-appointment. On behalf of the Executive Committee Members Chairman Hong Kong, August 20,

5 會有 SL LEE & LAU CPA LIMITED 李兆良計限 CERTIFIED PUBLIC ACCOUNTANTS 師公劉願宜行司 香港上環德輔道中 248 號東協商業大廈 17 樓 1702 室. TEL : (852) RM 1702, 17/F, TUNG HIP COMMERCIAL BLDG., 248 DES VOEUX ROAD CENTRAL, H. K. FAX : (852) INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED (incorporation in Hong Kong with limited liability by guarantee) We have audited the financial statements of Hong Kong Arthritis & Rheumatism Foundation Limited ("Foundation") set out on pages 5 to 13, which comprise the balance sheet as at March 31, 2007, and the income and expenditure accounts and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes. Executive committee members' responsibility for the financial statements The Companies Ordinance requires the Executive Committee Members to prepare an income and expenditures account and a balance sheet and the Executive Committee Members are responsible for preparing the financial statements to present fairly the financial position of the Association. Accordingly, the Executive Committee is responsible for the preparation and fair presentation of these financial statements in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors responsibility Our responsibility is to express an opinion on these financial statements based on our audit and report our opinion solely to you, as a body, in accordance with section 141 of the Hong Kong Companies Ordinance, and for no other purpose, we do not assume responsibility towards or accept liability to any other person for the contents of this report. We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity s preparation and fair presentation of the financial statements 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 entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Executive Committee, as well as evaluating the overall presentation of the financial statements. 3

6 會有 SL LEE & LAU CPA LIMITED 李兆良計限 CERTIFIED PUBLIC ACCOUNTANTS 師公劉願宜行司 香港上環德輔道中 248 號東協商業大廈 17 樓 1702 室. TEL : (852) RM 1702, 17/F, TUNG HIP COMMERCIAL BLDG., 248 DES VOEUX ROAD CENTRAL, H. K. FAX : (852) Auditors responsibility (con't) We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the state of the Company's affairs as at March 31, 2008 and of its deficit and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in accordance with the Hong Kong Companies Ordinance. SL Lee & Lau CPA Limited Certified Public Accountants Lau Yuen Yee Practising Certificate Number P03366 Hong Kong, August 20,

7 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2008 (Expressed in Hong Kong dollars) INCOME Activity income 70,400 - Advertisements income - 38,000 Auction - 67,888 Charity dinner ticket sales 6,000 86,400 Donation income 57,572 1,477,772 Flag day collection - 280,790 HKPO concert income 66,360 - Management income 12,660 - Membership fees Seminar income 1, ,032 1,950,850 EXPENDITURE Activity expenses 196,775 7,690 Advertising expenses 1,500 7,360 Bank charges Charity dinner expenses - 137,130 Depreciation 6,277 5,415 Flag day expense - 23,200 Homepage design 6,727 5,327 Insurance 2,703 2,243 Mandatory provident fund 18,790 17,630 Office expenses 2,661 2,006 Patients' support fund expenses 187, ,294 Postage & courier 13,279 5,310 Printing & stationery 32,991 59,627 Rental for venue 50,530 37,660 Refreshment & meals for volunteers - 4,891 Souvenir expenses - 1,728 Staff salaries 192, ,125 Sundry expenses 3,355 2,400 Telephone 6,686 6,308 Transportation and travelling 1,754 6,130 Videotapes, films & photo-finishing 53,000 47,892 The accompanying notes form an integral part of these financial statements , ,726 (DEFICIT) / SURPLUS BEFORE INCOME TAX (562,255) 1,101,124 INCOME TAX - - (DEFICIT) / SURPLUS FOR THE YEAR (562,255) 1,101,124 ACCUMULATED SURPLUS BROUGHT FORWARD 2,304,624 1,203,500 ACCUMULATED SURPLUS CARRIED FORWARD 1,742,369 2,304,624 The accumulated surplus is the only component of the statement of changes in equity and therefore no statement of changes in equity is separately presented.

8 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED BALANCE SHEET AS AT MARCH 31, 2008 (Expressed in Hong Kong dollars) Note PLANT AND EQUIPMENT 4 12,266 14,228 CURRENT ASSETS Accounts and other receivable 5 7,500 1,187,598 Cash and bank balances 6 1,722,603 1,270,028 1,730,103 2,457,626 CURRENT LIABILITIES Accounts and other payable 7-167,230 NET CURRENT ASSETS 1,730,103 2,290,396 NET TOTAL ASSETS 1,742,369 2,304,624 REPRESENTED BY: ACCUMULATED SURPLUS 1,742,369 2,304,624 APPROVED BY THE EXECUTIVE COMMITTEE MEMBERS ON AUGUST 20, CHAIRMAN TREASURER The accompanying notes form an integral part of these financial statements. 6

9 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2008 (Expressed in Hong Kong dollars) NOTE Net cash generated from Operating activities 8 456,890 74,621 Cash flows from investing activities Purchase of plant and equipment (4,315) (8,503) Net increase / (decrease) in cash and cash equivalents 452,575 66,118 Cash and cash equivalents At beginning of the year 1,270,028 1,203,910 At end of the year 1,722,603 1,270,028 Analysis of balances of cash and cash equivalents Bank balances and cash 6 1,722,603 1,270,028 The accompanying notes form an integral part of these financial statements. 7

10 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - 1. PRINCIPAL ACCOUNTING POLICIES (a) Basis of preparation The financial statements of Hong Kong Arthritis & Rheumatism Foundation Limited ("Company") have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRS"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKAS") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the requirements of the Hong Kong Companies Ordinance. The financial statements are prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss. In the current year, the Company has applied, for the first time, the following new standard, amendment and interpretations issued by the HKICPA, which are effective for the Company s financial year beginning January 1, HKAS 1 (Amendment) HKFRS 7 Capital Disclosures Financial Instruments: Disclosures The adoption of the new HKFRSs had no material effect on how the results and financial position for the current or prior accounting periods have been prepared and presented. Accordingly, no prior period adjustment has been required. However, as a result of the adoption of HKAS 1 (Amendment), there have been certain additional disclosures in note 2 and note 9. Standards, interpretations and amendments to published standards that are not yet effective Certain new standards, interpretations and amendments to existing standards have been published that are relevant to the activities of the Company and mandatory for accounting period beginning on or after the effective date as described below as follows: New HKFRS or interpretations Effective date Description HKAS 1 (Revised) January 1, 2009 Presentation of Financial Statements The Company has not early adopted these new/revised HKFRSs. The Company s executive committee members anticipate that the adoption of these Standards or Interpretations or Amendments will have no material impact on the financial statements of the Company and will not result in substantial changes to the Company s accounting policies. 8

11 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - 1. PRINCIPAL ACCOUNTING POLICIES (CONT'D) (b) Property, plant and equipment All plant and equipment is stated at historical cost less depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains/losses on qualifying cash flow hedges of foreign currency purchases of plant and equipment. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Foundation and the cost of the item can be measured reliably. All other repairs and maintenance are expensed in the income statement during the financial period in which they are incurred. Depreciation of plant and equipment is calculated using the straight-line method to allocate cost or revalued amounts to their residual values over their estimated useful lives of 5 years. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount (c) Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. (d) Employee benefits (i) Defined contribution plans The Foundation participates in a retirement insurance scheme organised by the Hong Kong Mandatory Provident Fund Schemes. The Company is required to make monthly contributions in respect of the above insurance scheme to the local social security bureau based on the monthly salaries of its employees. The Company will have no legal or constructive obligation to pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to employee services in the current and preceding financial years. The Company's contributions to defined contribution plans are recognised in the financial year to which they relate. (ii) 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 balance sheet date. 9

12 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - 1. PRINCIPAL ACCOUNTING POLICIES (CONT'D) (e) Revenue recognition Revenue is recognised when it is probable that the economic benefits will flow to the Company and when the revenue and costs, if applicable, can be measured reliably and on the following bases. (i) Membership fee and donation income are recognised when they are received and receivable. (ii) Seminar and concert income are recognised when the activities are held and completed. (iii) Management fee and interest income is recognised on a time proportion basis. 2. FINANCIAL RISK MANAGEMENT The Company's activities expose to a variety of financial risks: market risk (including currency risk, fair value interest risk and price risk), credit / receivable risk, liquidity risk and cash flow interest-rate risk. The risks are however limited as explained below and the committee members therefore devolve minimal effort toward the Company's risk management programme. (a) Market risk Foreign exchange risk The Company did not have material foreign exchange risk. It did not have any transactions in foreign currency. (b) Credit risk The Company has no significant concentrations of credit risk as the Company's income are mostly cash receipts. The carrying amount of bank and cash balances represent the Company's maximum exposure to credit risk in relation to financial assets. (c) Liquidity risk Prudent liquidity risk management has been applied maintaining sufficient cash balances. The Company invests only in short term deposits held with major banks and considers liquidity risk is insignificant. (d) Cash flow and fair value interest rate risk Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. As the Company has no significant interest-bearing assets or liabilities, the Company's income and operating cash flows will not be significantly affected by changes in market interest rates. 10

13 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - 3. INCOME TAX The Foundation is exempted from Hong Kong profits tax under Section 88 of the Inland Revenue Department. 4. PLANT AND EQUIPMENT Leasehold Office improvement equipment Total COST At 31/3/2007 8,700 18,371 27,071 Additions - 4,315 4,315 At 31/3/2008 8,700 22,686 31,386 ACCUMULATED DEPRECIATION At 31/3/2007 5,220 7,623 12,843 Charge for the year 1,740 4,537 6,277 At 31/3/2008 6,960 12,160 19,120 NET BOOK VALUE At 31/3/2007 3,480 10,748 14,228 At 31/3/2008 1,740 10,526 12, ACCOUNTS AND OTHER RECEIVABLES Donation income receivable 7,500 1,187,598 The carrying amounts of trade and other receivables approximate their fair value. The carrying amounts of the accounts receivables are all denominated in the Hong Kong dollars. 6. CASH AND CASH EQUIVALENTS Cash at bank 1,722,603 1,270,028 11

14 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS - 7. ACCOUNTS AND OTHER PAYABLES Accrued expenses - 167, CASH GENERATED FROM OPERATIONS (Deficit) / surplus for the year (562,255) 1,101,124 Adjustments for:- Depreciation 6,277 5,415 Accounts and other receivable 1,180,098 (1,187,598) Accounts and other payable (167,230) 155,680 Cash generated from operations 456,890 74, CONTINGENT LIABILITIES AND COMMITMENTS At March 31, 2008, the Company had no significant commitments or contingent liabilities. 10. CAPITAL MANAGEMENT The Company is a charitable organisation and limited by guarantee and therefore has no capital. The Company activities are supported by the surplus arising from the activities of the Company. The Company's objectives when managing its surplus are: To safeguard the Company's ability to continue as a going concern, so that it can continue to provide benefits for its members and other stakeholders; and To support the Company stability. The Company actively and regularly reviews and manages its source of funds taking into consideration the future charitable activities of the Company, so as to maintain the adequacy of the Company's surplus for operation in the foreseeable future. The debt of the Company is immaterial at March 31, 2008, and the Company endeavors to maintain such minimum level of debt in the future. The surplus of the Company at March 31, 2008 was 1,742,369 (2007:2,304,624). The decrease in surplus is attributable to the deficit arising from the activities for the year. 12

15 HONG KONG ARTHRITIS & RHEUMATISM FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS AUTHORISATION OF FINANCIAL STATEMENTS These financial statements were authorised for issue in accordance with a resolution of the executive committee members of Hong Kong Arthritis & Rheumatism Foundation Limited on August 20, xxx END xxx 13