Un-Audited Financial Statements

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1 THIS SAMPLE UN-AUDITED FS IS PROPERTY OF MODETTI OFFICE SERVICES GROUP PTE. LTD. AN EXAMPLE COMPANY PTE. LTD. (Reg No.: 2012XXXXXXG) Un-Audited Financial Statements FOR THE PERIOD FROM 01 JANUARY 2012 (DATE OF INCORPORATION) TO 31 DECEMBER 2012 Prepared by: Accounting Services Department MODETTI OFFICE SERVICES GROUP PTE. LTD. No. 1, Raffles Place, #25-03, One Raffles Place Tower 1, Singapore Tel: (65) Fax: (65)

2 DIRECTORS REPORT The directors present the report to the members together with the financial statements of the company for the period from 01 January 2012 (date of incorporation) to 31 December DIRECTORS OF THE COMPANY The directors in office at the date of this report are: La Chief Executive (appointed on 01 January 2012) Le Directeur (appointed on 01 January 2012) ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE SHARES OR DEBENTURES Neither at the end of nor at any time during the financial period was the company a party to any arrangement whose object is to enable the directors to acquire benefits through the acquisition of shares in or debentures of the company or any other body corporate. DIRECTORS INTEREST IN SHARES According to the register of directors shareholdings kept by the company for the purpose of Section 164 of the Companies Act, Cap. 50, the undermentioned person who was director of the company at the end of the financial year had an interest in the shares of the company as detailed below:- No. of shares registered in the name of the director Name of director As at 01 Jan 2012 As at 31 Dec 2012 La Chief Executive (appointed on 01 Jan 2012) 60,000 60,000 Le Directeur (appointed on 01 Jan 2012) 60,000 60,000 DIRECTORS CONTRACTUAL BENEFITS Since the date of incorporation of the company no director has received or become entitled to receive a benefit which is required to be disclosed by Section 201(8) of the Companies Act, Cap. 50, being a benefit by reason of a contract made by the company or a related corporation with the director, or with a firm of which he is a member, or with a company in which he has a substantial financial interest, except as disclosed in the accounts. OPTIONS No option to take up unissued shares of the company was granted during the period. There were no shares issued during the period by virtue of the exercise of options to take up unissued shares of the company whether granted before or during the period. There were no unissued shares of the company under option as at the end of the period. On Behalf of the Company La Chief Executive Le Directeur Date: 1

3 STATEMENT BY DIRECTORS In the opinion of the directors, the accompanying financial statements together with the notes thereto are drawn up so as to give a true and fair view of the state of affairs of the Company at 31 December On Behalf of the Company La Chief Executive Le Directeur Date: 2

4 BALANCE SHEET AS AT 31 DECEMBER Note S$ ASSETS Non-current assets Fixed assets - Current assets Other debtor 139,279 Bank balances 37, ,305 TOTAL ASSETS 176,305 EQUITY AND LIABILITIES Share capital 3 1,000 Accumulated profit 92,153 93,153 Current liabilities Amount due to directors 4 83,152 - Total equity and liabilities 176,305 3

5 INCOME STATEMENT 01/01/2012 TO 31/12/2012 Note S$ Revenue 2,177,792 Other income 43 Cost of sales (1,991,486) Other expenses (94,196) Profit for the period 92,153 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 DECEMBER 2012 Share Accumulated Note Capital Profit Total S$ S$ Issue of subscriber shares on , ,000 Issue of new shares as at Profit for the period - 92,153 92,153 Balance as at ,000 92, ,153 4

6 CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 DECEMBER Note S$ OPERATING ACTIVITIES Profit before tax 92,153 Adjustments for:- Depreciation - Finance cost 11,224 Interest income (43) Changes in working capital Increase in trade and other receivables (139,279) Increase in trade and other payables 83,152 Net cash from operating activities 47,207 INVESTING ACTIVITIES Interest income - Purchase of assets - Net cash from investing activities - FINANCING ACTIVITIES Issue of share capital 3 120,000 Finance cost paid (11,182) Net cash used in financing activities 108,818 Net increase in cash and cash equivalents 156,026 Cash and cash equivalents at beginning of the period - Cash and cash equivalents at end of the period 156,026 5

7 NOTES TO THE FINANCIAL STATEMENTS 1. CORPORATE INFORMATION a) Country of incorporation: The Company (registration no. 2012XXXXXXG) was incorporated in the Republic of Singapore. b) Principal Activities: The principal activities of the company are of general trading via e-commerce and online platforms, as well as being a software consultancy for development of IT apps. c) Registered Address: No.1 Raffles Place #25-03 One Raffles Place Tower 1 Singapore SIGNIFICANT ACCOUNTING POLICIES a) Basis of preparation The financial statements are prepared in accordance with Singapore Financial Reporting Standards (FRS) including related Interpretations promulgated by the Council on Corporate Disclosure and Governance. In 2012, the Company adopted the following revised or new FRS that are applicable in the current financial year: FRS 1 (revised) Presentation of Financial Statements FRS 2 (revised) Inventories FRS 8 (revised) Accounting Policies, Changes in Accounting Estimates and Errors FRS 10 (revised) Events After the Balance Sheet Date FRS 16 (revised) Property, Plant and Equipment FRS 17 (revised) Leases FRS 21 (revised) The Effects of Changes in Foreign Exchange Rates FRS 24 (revised) Related Party Disclosures FRS 27 (revised) Consolidated and Separate Financial Statements FRS 28 (revised) Investments in Associates FRS 31 (revised) Interests in Joint Ventures FRS 32 (revised) Financial Instruments: Disclosure and Presentation FRS 33 (revised) Earnings Per Share FRS 39 Financial Instruments: Recognition and Measurement FRS 102 Share-based Payment FRS 105 Non-current Assets Held for Sale and Discontinued Operations The effects of adopting the above new or revised FRS in 2012 are set out in note 39. The financial statements, which are expressed in Singapore dollars, are prepared on the historical cost basis except that investment properties and certain financial assets and financial liabilities are stated at fair value. Non-current assets and disposal groups held for sale are stated at the lower of carrying amount and fair value less costs to sell. The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the process of applying the Company's accounting policies. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying amounts of assets and liabilities that are not readily apparent from other sources. 6

8 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) a) The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. FRS yet to be adopted Certain new accounting standards and interpretations have been issued and are mandatory for accounting periods beginning on or after 1 January The Company has assessed those standards and interpretations issued. The initial application of these standards and interpretations is not expected to have any material impact on the Company's financial statements, except for FRS 40 Investment Property. Under FRS 40, investment properties are permitted to be stated at either their fair value or cost less accumulated depreciation and impairment loss. Investment properties held under operating leases are required to be measured at fair value. The Company expects to measure all its investment properties at fair value. As a result of adopting FRS 40, the Company expects to reclassify its revaluation reserve to accumulated profits at 1 January At this juncture, the impact of adoption cannot be reasonably determined as the Company is unable to estimate with reasonable accuracy the changes in fair value of the investment properties in the period to 1 January b) Presentation and functional currency Items included in the financial statements of the Company are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to the Company. The financial statements of the Company are presented in Singapore dollars, which is the functional currency of the Company. c) Significant accounting estimates and judgements Estimates, assumptions concerning the future and judgements are made in the preparation of the financial statements. They affect the application of the Company s accounting policies, reported amounts of assets, liabilities, income and expenses, and disclosures made. They are assessed on an on-going basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable under the circumstances. The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet 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: Impairment of financial assets Impairment of trade and other receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to original terms of receivables. An assessment is made at each balance sheet date of whether there is any indication of impairment of any asset, or whether there is any indication that an impairment loss previously recognised for an asset in prior years may no longer exist or may have decreased. Where the actual results differ from the amounts that were initially assessed, such differences will result in an adjustment to the carrying amounts within the next financial year. d) Financial assets The Company classifies its investments in financial assets as financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables and available-for-sale financial assets. Management determines the classification of its financial assets at initial recognition and reevaluates this designation at every reporting date. 7

9 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) d) All financial assets are recognized on their trade date - the date on which the company commits to purchase or sell the asset. Financial assets are initially recognized at fair value, plus directly attributable transaction costs except for financial assets at fair value through profit or loss, which are recognized at fair value. Derecognition of financial instruments occurs when the rights to receive cash flows from the investments expire or are transferred and substantially all of the risks and rewards of ownership have been transferred. An assessment for impairment is undertaken at least at each balance sheet date whether or not there is objective evidence that a financial asset or a group of financial assets is impaired. Loans and receivables Loans and receivables represent trade and other receivables which are recognized initially at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for impairment. e) Impairment of assets Assets are reviewed for impairment at each balance sheet date based on objective evidence to determine whether there is any indication that the carrying amount of an asset may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised in the income statement. When an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. A reversal of an impairment loss is recognized as income immediately unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. f) Financial liabilities Trade and other payables Trade and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method. g) Income tax The charge for current tax is based on the results for the period as adjusted for items which are nonassessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilised. Deferred tax is calculated at the rates that are expected to apply to the period when the assets is realised or the liabilities is settled. 8

10 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) g) Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same tax authority and the company intends to settle its current tax assets and liabilities on a net basis. h) Foreign currency transactions Transactions in foreign currencies are measured and recorded in Singapore dollars using the exchange rate in effect at the date of transaction. At each balance sheet date, recorded monetary balances that are denominated in a foreign currency are adjusted to reflect the rate at the balance sheet date. Recorded non-monetary balances are translated using exchange rates that existed when the values were determined. All exchange adjustments are taken to the income statement. i) Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from sale of motor vehicle is recognised upon the passing of title to the customer which generally coincides with the delivery and acceptance of the goods sold. Interest income is accrued on a time-apportioned basis on the principal outstanding and at the rate applicable. j) Cash and cash equivalents Cash comprises of cash at bank. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an in-significant risk of changes in value. 3. SHARE CAPITAL 2012 No. of shares S$ Issued and fully paid: 120, ,000 During the financial period, the company issued 120,000 ordinary shares for cash for the purpose of incorporating the company and provide working capital. 4. AMOUNT DUE TO DIRECTORS The amounts are unsecured, interest free and repayable on demand. 5. FINANCIAL RISK MANAGEMENT The main risks arising from the Company s financial instruments are credit and liquidity risks. The policies of managing each of these risks are summarised as follows: a) Credit risk Credit risk refers to the risk that counter parties may default on their contractual obligation resulting in a financial loss to the company. 9

11 5. FINANCIAL RISK MANAGEMENT (CONTINUED) a) The Company s customer portfolio is diversified and there is no reliance on any one customer. These exposures are monitored and allowance for potential credit loss is adjusted when necessary. Cash and fixed deposits are placed with bank and financial institutions which are regulated. The carrying amount of trade debtors represent the Company s maximum exposure to credit risk in relation to financial assets. No other financial assets carry a significant exposure to credit risk and the company had established policies to minimise customer credit risks. b) Liquidity risk Liquidity risk refers to risk that the company is unable to meet its obligations when they fall due. The company monitors and maintains a level of bank balances deemed adequate by the directors to finance the operation and mitigate the effects of fluctuation in cash flows. 6. FAIR VALUES The carrying amount of financial assets and financial liabilities is recorded in the financial statements at their approximate fair values, determined in accordance with the accounting policies disclosed in Note 3 to the financial statements. 7. FRS NOT YET ADOPTED The company has not applied the following Standards and Interpretations that have been issued but not yet effective:- FRS 23 FRS 40 FRS 107 FRS 108 INT FRS 110 INT FRS 111 INT FRS 112 INT FRS 113 INT FRS 114 Amendment to FRS 23, Borrowing costs Investment Properties Financial Instruments: Disclosure Operating Segments Interim Financial Reporting and Impairment FRS 102, Group and treasury Shares Transactions Service Concession Arrangements Customer Loyalty Programmes FRS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction The initial application of these Standards, Amendments and Interpretations are not expected to have any material impact on the company's financial statements. The company has not considered the impact of Accounting Standards issued after the balance sheet date. 8. COMPARATIVE FIGURES The carrying amount of financial assets and financial liabilities is recorded in the financial statements at their approximate. 9. AUTHORISATION OF FINANCIAL STATEMENTS The financial statements of the Company for the period ended 31 December 2012 were authorized for issue on the date of the directors statement. 10

12 DETAILED INCOME STATEMENT 01/01/2012 TO 31/12/2012 REVENUE 2,177,792 LESS: COST OF GOOD SOLD Purchases 1,991,486 GROSS PROFIT 186,305 ADD: OTHER INCOME Miscellaneous income ,348 LESS: OTHER EXPENSES (AS PER SCHEDULE) (94,196) PROFIT FOR THE PERIOD 92,153. S$ 11

13 SCHEDULE OF OTHER EXPENSES 01/01/2012 TO 31/12/2012 S$ Other expenses Directors' fee 80,000 Domain fee General expenses Handphone charges Incorporation fees 2, Printing & stationery Secretarial fee 1, Travelling ,475 Finance costs Bank charges 11,224 Total other expenses 96,699 12

SAI POWER PTE. LTD. (UEN: K) (Incorporated in the Republic of Singapore)

SAI POWER PTE. LTD. (UEN: K) (Incorporated in the Republic of Singapore) SAI POWER PTE. LTD. () (Incorporated in the Republic of Singapore) AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION FOR THE YEAR ENDED 31 MARCH 2015 DIRECTORS REPORT The directors submit the