SUNSHINE WELFARE ACTION MISSION. General Information. President. Mr Yap Boon Phye. Acting Honorary Secretary. Dr Irene Khoo. Honorary Treasurer

SUNSHINE WELFARE ACTION MISSION General Information President Mr Yap Boon Phye Acting Honorary Secretary Dr Irene Khoo Honorary Treasurer Mr Low Chang Yee Committee Members Mr Keng Lim Mr Ramon Quek Mr A.M. Chandra Mr Tan Ngian Kwang Mrs Wendy Boon Registered office 5 Sembawang Walk Singapore 757717 Auditors Kwan Wong Tan & Hong 1

(SIGNED)

Independent Auditors Report to the Management Committee of Sunshine Welfare Action Mission We have audited the accompanying statement of financial position of Sunshine Welfare Action Mission ( Society ) as at 31 March 2010 and statements of financial activities and statement of cash flows of the Society for the year ended on that dateand a summary of significant accounting policies and other explanatory notes. Management Committee s Responsibility for the Financial Statements The Society s Management Committee is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of the Constitution of the Society and Singapore Financial Reporting Standards. This responsibility includes: (a) (b) (c) devising and maintaining a system of internal accounting controls 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 statement of financial activities and statement of financial position and to maintain accountability of assets; 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. We conducted our audit in accordance with Singapore Standards on Auditing. 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 judgmentincluding the assessment of the risk of material misstatement of the financial statementswhether due to fraud or error. In making those risk assessmentsthe auditors consider internal control relevant to the Society s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on the effectiveness of the Society s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management committee as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. 3 2/-

- 2 - Independent Auditors Report to the Management Committee of Sunshine Welfare Action Mission Opinion In our opinionthe financial statements are properly drawn up in accordance with the provisions of the Constitution of the Society and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Society as at 31 March 2010 and of the financial activitieschanges in funds and cash flows of the Society for the year ended on that date. (SIGNED) KWAN WONG TAN & HONG Certified Public Accountants 4

SUNSHINE WELFARE ACTION MISSION STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2010 (Currency Singapore dollars) Note 2010 2009 $ $ Funds Unrestricted funds Capital contribution 25000 25000 Accumulated fund 5660117 4406553 Building maintenance fund 4 400000 400000 6085117 4831553 Restricted funds Building fund 5 2974227 3117789 Designated donation fund 5 4852 7376 2979079 3125165 Total funds 9064196 7956718 Noncurrent assets Propertyplant and equipment 6 13451362 14047179 Current assets Trade receivables 7 394294 282045 Other receivablesdeposits and prepayments 8 64879 55499 Inventory 9 3753 2143 Fixed deposits 10 166982 165452 Cash and bank balances 10 3591399 2891392 4221307 3396531 Less: Current liabilities Trade payables 151135 136337 Accruals and other payables 11 311104 233974 Hire purchase payable 12 3304 3091 Deferred income 13-542652 Residents deposits 110536 108597 Residents accounts 272999 272605 849078 1297256 5

STATEMENT OF FINANCIAL POSITION (Continued) Note 2010 2009 $ $ Net current assets 3372229 2099275 Less: Noncurrent liabilities 16823591 16146454 Hire purchase payable 12 2926 6230 Deferred income 13 7756469 8183506 9064196 7956718 The accompanying notes form an integral part of these financial statements. 6

Kwan Wong Tan & Hong SUNSHINE WELFARE ACTION MISSION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2010 (Currency - Singapore dollars) 2010 Unrestricted funds Restricted funds Total funds INCOMING RESOURCES Note Capital contribution Accumulated fund Building maintenance fund Subtotal Building fund Designated donation fund Subtotal $ $ $ $ $ $ $ $ Incoming resources from generated funds Voluntary income - Nursing Home - 137,913-137,913 - - - 137,913 - Dementia Home - 20,532-20,532 - - - 20,532-158,445-158,445 - - - 158,445 Grants - Nursing Home - 4,102,323-4,102,323 - - - 4,102,323 - Dementia Home - 862,198-862,198 - - - 862,198 - Dementia Day Care Centre - 169,872-169,872 - - - 169,872 - Day Rehabilitation Centre - 167,726-167,726 - - - 167,726 - Home Medical Services - 31,497-31,497 - - - 31,497 - Home Nursing Services - 120,439-120,439 - - - 120,439 - Home Help Services - 456,213-456,213 - - - 456,213-5,910,268-5,910,268 - - - 5,910,268 Investment income - Nursing Home - 1,253-1,253 - - - 1,253 - Dementia Home - 707-707 - - - 707-1,960-1,960 - - - 1,960 Activities for generating funds - Nursing Home - 71,150-71,150 - - - 71,150-71,150-71,150 - - - 71,150 7

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES (Continued) 2010 (Continued) INCOMING RESOURCES (Continued) Note Capital contribution Unrestricted funds Restricted funds Accumulated fund Building maintenance fund Subtotal Building fund Designated donation fund Subtotal Total funds $ $ $ $ $ $ $ $ Incoming resources from charitable activities - Nursing Home - 1,062,010-1,062,010 - - - 1,062,010 - Dementia Home - 327,830-327,830 - - - 327,830 - Dementia Day Care Centre - 156,107-156,107 - - - 156,107 - Day Rehabilitation Centre - 116,051-116,051 - - - 116,051 - Home Medical Services - 10,134-10,134 - - - 10,134 - Home Nursing Services - 31,546-31,546 - - - 31,546 - Home Help Services - 195,417-195,417 - - - 195,417-1,899,095-1,899,095 - - - 1,899,095 Total incoming resources - 8,040,918-8,040,918 - - - 8,040,918 RESOURCES EXPENDED Cost of generating funds - Nursing Home - 47,683-47,683 - - - 47,683 - Dementia Home - 12,691-12,691 - - - 12,691 - Dementia Day Care Centre - 4,890-4,890 - - - 4,890 - Day Rehabilitation Centre - 3,652-3,652 - - - 3,652 - Home Medical Services - 426-426 - - - 426 - Home Nursing Services - 1,248-1,248 - - - 1,248 - Home Help Services - 4,212-4,212 - - - 4,212-74,802-74,802 - - - 74,802 Charitable activities - Nursing Home - 4,534,894-4,534,894-2,140 2,140 4,537,034 - Dementia Home - 1,318,150-1,318,150-384 384 1,318,534 - Dementia Day Care Centre - 281,967-281,967 - - - 281,967 8

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES (Continued) 2010 (Continued) RESOURCES EXPENDED (Continued) Note Capital contribution Unrestricted funds Restricted funds Accumulated fund Building maintenance fund Subtotal Building fund Designated donation fund Subtotal Total funds $ $ $ $ $ $ $ $ Charitable activities (Continued) - Day Rehabilitation Centre - 245,074-245,074 - - - 245,074 - Home Medical Services - 29,460-29,460 - - - 29,460 - Home Nursing Services - 169,436-169,436 - - - 169,436 - Home Help Services - 388,771-388,771 - - - 388,771-6,967,752-6,967,752-2,524 2,524 6,970,276 Other operating and administration expenses - Nursing Home - 9,295-9,295 - - - 9,295 - Dementia Home - 1,349-1,349 - - - 1,349 - Dementia Day Care Centre - 545-545 - - - 545 - Day Rehabilitation Centre - 602-602 - - - 602 - Home Medical Services - 44-44 - - - 44 - Home Nursing Services - 547-547 - - - 547 - Home Help Services - 708-708 - - - 708-13,090-13,090 - - - 13,090 Total resources expended - 7,055,644-7,055,644-2,524 2,524 7,058,168 Net incoming (outgoing) resources before transfer - 985,274-985,274 - (2,524) (2,524) 982,750 TRANSFER Gross transfer between funds - from Building fund to Accumulated fund 5 (i) - 143,562-143,562 (143,562) - (143,562) - Net incoming (outgoing) resources before holding gains and losses - 1,128,836-1,128,836 (143,562) (2,524) (146,086) 982,750 9

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES (Continued) 2010 (Continued) OTHER RECOGNISED GAINS/LOSSES Note Capital contribution Unrestricted funds Restricted funds Accumulated fund Building maintenance fund Subtotal Building fund Designated donation fund Subtotal Total funds $ $ $ $ $ $ $ $ Write-back of provision for impairment in investment - 124,728-124,728 - - - 124,728 Net movement in funds - 1,253,564-1,253,564 (143,562) (2,524) (146,086) 1,107,478 RECONCILIATION OF FUNDS Total funds brought forward 25,000 4,406,553 400,000 4,831,553 3,117,789 7,376 3,125,165 7,956,718 Total funds carried forward 25,000 5,660,117 400,000 6,085,117 2,974,227 4,852 2,979,079 9,064,196 10

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES (Continued) 2009 Unrestricted funds Restricted funds Total funds INCOMING RESOURCES Note Capital contribution Accumulated fund Building maintenance fund Subtotal Building fund Innovation project fund Designated donation fund Subtotal $ $ $ $ $ $ $ $ $ Incoming resources from generated funds Voluntary income - Nursing Home - 188,851-188,851 - - 4,687 4,687 193,538 - Dementia Home - 49,992-49,992 - - 1,233 1,233 51,225 - Home Nursing Services - 10,000-10,000 - - - - 10,000-248,843-248,843 - - 5,920 5,920 254,763 Grants - Nursing Home - 2,993,115-2,993,115 - - - - 2,993,115 - Dementia Home - 783,730-783,730 - - - - 783,730 - Dementia Day Care Centre - 202,084-202,084 - - - - 202,084 - Day Rehabilitation Centre - 177,932-177,932 - - - - 177,932 - Home Medical Services - 30,313-30,313 - - - - 30,313 - Home Nursing Services - 114,523-114,523 - - - - 114,523 - Home Help Services - 450,976-450,976 - - - - 450,976-4,752,673-4,752,673 - - - - 4,752,673 Investment income - Nursing Home - 9,750-9,750 - - - - 9,750 - Dementia Home - 159-159 - - - - 159-9,909-9,909 - - - - 9,909 Incoming resources from charitable activities - Nursing Home - 817,460-817,460 - - - - 817,460 - Dementia Home - 297,673-297,673 - - - - 297,673 - Dementia Day Care Centre - 175,287-175,287 - - - - 175,287 - Day Rehabilitation Centre - 122,806-122,806 - - - - 122,806 - Home Medical Services - 5,314-5,314 - - - - 5,314 - Home Nursing Services - 9,573-9,573 - - - - 9,573 - Home Help Services - 38,376-38,376 - - - - 38,376-1,466,489-1,466,489 - - - - 1,466,489 Total incoming resources - 6,477,914-6,477,914 - - 5,920 5,920 6,483,834 11

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES (Continued) 2009 (continued) Unrestricted funds Restricted funds Total funds Note Capital contribution Accumulated fund Building maintenance fund Subtotal Building fund Innovation project fund Designated donation fund Subtotal $ $ $ $ $ $ $ $ $ RESOURCES EXPENDED Cost of generating funds - Nursing Home - 33,962-33,962 - - - - 33,962 - Dementia Home - 8,281-8,281 - - - - 8,281 - Dementia Day Care Centre - 3,310-3,310 - - - - 3,310 - Day Rehabilitation Centre - 2,343-2,343 - - - - 2,343 - Home Medical Services - 316-316 - - - - 316 - Home Nursing Services - 1,118-1,118 - - - - 1,118 - Home Help Services - 3,574-3,574 - - - - 3,574-52,904-52,904 - - - - 52,904 Charitable activities - Nursing Home - 4,076,972-4,076,972 - - 2,132 2,132 4,079,104 - Dementia Home - 1,278,977-1,278,977 - - 600 600 1,279,577 - Dementia Day Care Centre - 289,328-289,328 - - - - 289,328 - Day Rehabilitation Centre - 253,948-253,948 - - - - 253,948 - Home Medical Services - 31,476-31,476 - - - - 31,476 - Home Nursing Services - 153,797-153,797 - - - - 153,797 - Home Help Services - 468,070-468,070 - - - - 468,070-6,552,568-6,552,568 - - 2,732 2,732 6,555,300 Governance costs - Nursing Home - 13,281-13,281 - - - - 13,281 - Dementia Home - 2,621-2,621 - - - - 2,621 - Dementia Day Care Centre - 900-900 - - - - 900 - Day Rehabilitation Centre - 636-636 - - - - 636 - Home Medical Services - 86-86 - - - - 86 - Home Nursing Services - 380-380 - - - - 380 - Home Help Services - 1,054-1,054 - - - - 1,054-18,958-18,958 - - - - 18,958 Total resources expended - 6,624,430-6,624,430 - - 2,732 2,732 6,627,162 Net (outgoing)/incoming resources before transfers - 146,516-146,516 - - 3,188 3,188 143,328 12

Kwan Wong Tan & Hong SUNSHINE WELFARE ACTION MISSION STATEMENT OF FINANCIAL ACTIVITIES - NURSING HOME FOR THE YEAR ENDED 31 MARCH 2010 (Currency - Singapore dollars) ----------------------------- 2010 --------------------------- ----------------------------- 2009 --------------------------- Unrestricted Restricted Total Unrestricted Restricted Total Note Funds Funds Funds Funds Funds Funds $ $ $ $ $ $ Incoming resources from generated funds Voluntary income Donations - tax exempt and non-tax exempt 137,913-137,913 188,851-188,851 Designated donations - - - - 4,687 4,687 137,913-137,913 188,851 4,687 193,538 Grants MOH recurrent subvention fund 1,988,568-1,988,568 1,724,913-1,724,913 MOH rental subvention fund 272,632-272,632 320,744-320,744 Foreign workers' levy grant - - - 114,265-114,265 Medication grant - - - 16,236-16,236 Medifund income 152,594-152,594 55,710-55,710 Medifund silver income 263,548-263,548 139,704-139,704 Allocation from deferred income - Grants for SWAMI Home 306,087-306,087 306,087-306,087 - Grants for Integrated Framework Funding 725,729-725,729 255,043-255,043 Other MOH funding 257,550-257,550 - - - NCSS grants 490-490 18,395-18,395 WDA funding 8,660-8,660 3,237-3,237 IRAS resilience package 126,465-126,465 38,781-38,781 4,102,323-4,102,323 2,993,115-2,993,115 Activities for generating funds Fund-raising event income 71,150-71,150 - - - Investment income Interest income 1,253-1,253 9,750-9,750 14

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - NURSING HOME (Continued) ----------------------------- 2010 --------------------------- ----------------------------- 2009 --------------------------- Unrestricted Restricted Total Unrestricted Restricted Total Note Funds Funds Funds Funds Funds Funds $ $ $ $ $ $ Incoming resources from charitable activities Nursing fee 760,122-760,122 574,791-574,791 Bed reservation charges 10,321-10,321 7,350-7,350 Diapers 143,049-143,049 101,997-101,997 Other consumables 42,837-42,837 30,852-30,852 Doctor consultation, tests and prescriptions 56,438-56,438 44,842-44,842 Transport 43,137-43,137 35,697-35,697 Other income 14 6,106-6,106 21,931-21,931 1,062,010-1,062,010 817,460-817,460 Total incoming resources 5,374,649-5,374,649 4,009,176 4,687 4,013,862 RESOURCES EXPENDED Cost of generating funds Fundraising expenses 41,743-41,743 31,366-31,366 Investment management costs 5,940-5,940 2,596-2,596 47,683-47,683 33,962-33,962 Charitable activities Advertisement - - - 437-437 Agency fees 439-439 1,087-1,087 Air fare 13,767-13,767 15,502-15,502 Audit fee 15,797-15,797 15,357-15,357 Cleaning / disinfectant 19,678-19,678 18,160-18,160 Consumables 18,166-18,166 16,650-16,650 Depreciation 482,314-482,314 442,394-442,394 Designated donation expenses - 2,140 2,140-2,132 2,132 Disposal of Fixed Asset 995-995 Doubtful debt 36,915-36,915 (17,113) - (17,113) Expenses for community services - - - 1,789-1,789 Function expenses 18,302-18,302 13,053-13,053 15

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - NURSING HOME (Continued) Unrestricted Restricted Total Unrestricted Restricted Total Note Funds Funds Funds Funds Funds Funds $ $ $ $ $ $ Charitable activities (Continued) Integrated Framework funding expenses 252,854-252,854 255,024-255,024 Medication subsidy 39,308-39,308 30,583-30,583 Funding expenses - medifund 152,594-152,594 55,710-55,710 Funding expenses - medifund silver 263,548-263,548 139,705-139,705 Gases 31,920-31,920 26,092-26,092 General expenses 7,858-7,858 5,612-5,612 GST expenses 104,646-104,646 113,182-113,182 Insurance 22,142-22,142 24,861-24,861 Land rental 299,950-299,950 352,882-352,882 Rental of equipment 3,105-3,105 1,025-1,025 Lease of equipment 328-328 449-449 Meal & beverage 263,124-263,124 331,225-331,225 Medical expenses & supplies - residents 254,853-254,853 224,287-224,287 Medical expenses & supplies - staff 14,463-14,463 24,750-24,750 Newspaper & periodicals 1,465-1,465 1,907-1,907 Minor assets 13,242-13,242 15,762-15,762 Diapers 105,716-105,716 112,981-112,981 Petrol & parking fee 7,364-7,364 9,768-9,768 Postage & stamps 893-893 811-811 Printing & stationery 17,395-17,395 18,388-18,388 Professional fee 15,229-15,229 6,164-6,164 Repair & maintenance 110,884-110,884 103,730-103,730 Salaries, bonus, CPF & FWL 1,691,515-1,691,515 1,452,794-1,452,794 Security - - - 15,545-15,545 Staff benefits 65-65 1,804-1,804 Subscription fee - - - 1,507-1,507 Licence fee 253-253 408-408 Telephone & fax 8,916-8,916 8,272-8,272 Training 9,115-9,115 13,479-13,479 Transport 2,530-2,530 5,677-5,677 Uniform 5,394-5,394 8,437-8,437 16 ----------------------------- 2010 --------------------------- ----------------------------- 2009 ---------------------------

Kwan Wong Tan & Hong SUNSHINE WELFARE ACTION MISSION STATEMENT OF FINANCIAL ACTIVITIES - DEMENTIA HOME FOR THE YEAR ENDED 31 MARCH 2010 (Currency - Singapore dollars) ----------------------------- 2010 --------------------------- ----------------------------- 2009 --------------------------- Unrestricted Restricted Total Unrestricted Restricted Total Note Funds Funds Funds Funds Funds Funds $ $ $ $ $ $ INCOMING RESOURCES Incoming resources from generated funds Voluntary income Donations - tax exempt and non-tax exempt 20,532-20,532 49,992-49,992 Designated donations - - - - 1,233 1,233 20,532-20,532 49,992 1,233 51,225 Grants MOH recurrent subvention fund 495,701-495,701 446,550-446,550 MOH rental subvention fund 123,567-123,567 145,373-145,373 Foreign workers' levy grant - - - 25,992-25,992 Medication grant - - - 5,675-5,675 Medifund income 6,605-6,605 1,330-1,330 Medifund silver income 70,696-70,696 26,986-26,986 Allocation from deferred income - Grants for SWAMI Home 120,949-120,949 120,949-120,949 - Grants for Integrated Framework Funding 44,576-44,576 10,007-10,007 NCSS grants 104-104 868-868 862,198-862,198 783,730-783,730 Investment income Interest income 707-707 159-159 18

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - DEMENTIA HOME (Continued) ----------------------------- 2010 --------------------------- ----------------------------- 2009 --------------------------- Unrestricted Restricted Total Unrestricted Restricted Total Note Funds Funds Funds Funds Funds Funds $ $ $ $ $ $ Incoming resources from charitable activities Nursing fee 202,232-202,232 179,555-179,555 Bed reservation charges 2,815-2,815 3,095-3,095 Diapers 25,946-25,946 25,258-25,258 Other consumables 11,913-11,913 8,038-8,038 Doctor consultation, tests and prescriptions 13,827-13,827 10,405-10,405 Transport 6,553-6,553 8,363-8,363 Other income 15 64,544-64,544 62,959-62,959 327,830-327,830 297,673-297,673 Total incoming resources 1,211,267-1,211,267 1,131,553 1,233 1,132,786 RESOURCES EXPENDED Cost of generating funds Fundraising expenses 10,395-10,395 7,628-7,628 Investment management costs 2,296-2,296 653-653 12,691-12,691 8,281-8,281 Charitable activities Advertisement - - - 110-110 Agency fees 126-126 224-224 Air fare 3,026-3,026 2,723-2,723 Audit fee 3,935-3,935 3,865-3,865 Cleaning / disinfectant 8,605-8,605 7,912-7,912 Consumables 4,445-4,445 5,588-5,588 Depreciation 397,882-397,882 391,818-391,818 Designated donation expenses - 384 384-600 600 (Write back of)/allowance for impairment of trade receivables (4,895) - (4,895) 8,511-8,511 Expenses for community services - - - - - - Function expenses 4,843-4,843 4,018-4,018 Integrated Framework funding expenses 10,000-10,000 10,000-10,000 19

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - DEMENTIA HOME (Continued) Unrestricted Restricted Total Unrestricted Restricted Total Note Funds Funds Funds Funds Funds Funds $ $ $ $ $ $ Charitable activities (Continued) Medication subsidy 12,911-12,911 10,167-10,167 Funding expenses - medifund 6,605-6,605 1,330-1,330 Funding expenses - medifund silver 70,696-70,696 26,986-26,986 Gases 7,796-7,796 6,210-6,210 General expenses 1,942-1,942 2,863-2,863 GST expenses 19-19 Insurance 5,623-5,623 6,232-6,232 Land rental 135,948-135,948 159,939-159,939 Rental of equipment 773-773 258-258 Lease of equipment 82-82 113-113 Meal & beverage 74,905-74,905 86,358-86,358 Medical expenses & supplies - residents 25,244-25,244 23,211-23,211 Medical expenses & supplies - staff 4,500-4,500 3,031-3,031 Newspaper & periodicals 365-365 479-479 Minor assets 700-700 4,455-4,455 Diapers 27,820-27,820 29,732-29,732 Petrol & parking fee 1,904-1,904 2,587-2,587 Postage & stamps 202-202 205-205 Printing & stationery 3,461-3,461 3,810-3,810 Professional fee 3,793-3,793 1,541-1,541 Repair & maintenance 26,928-26,928 29,979-29,979 Salaries, bonus, CPF & FWL 413,762-413,762 370,532-370,532 Security - - - 3,905-3,905 Staff benefits 16-16 872-872 Subscription fee - - - 379-379 Licence fee 64-64 103-103 Telephone & fax 2,165-2,165 1,950-1,950 Training 3,246-3,246 10,509-10,509 Transport 812-812 890-890 Uniform 2,016-2,016 5,385-5,385 20 ----------------------------- 2010 --------------------------- ----------------------------- 2009 ---------------------------

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - DEMENTIA HOME (continued) ----------------------------- 2010 --------------------------- ----------------------------- 2009 --------------------------- Unrestricted Restricted Total Unrestricted Restricted Total Note Funds Funds Funds Funds Funds Funds $ $ $ $ $ $ Charitable activities (Continued) Activities/items for residents/clients 375-375 1,186-1,186 Upkeep of motor vehicles 1,501-1,501 1,865-1,865 Utilities 54,009-54,009 47,146-47,146 1,318,150 384 1,318,534 1,278,977 600 1,279,577 Other operating and administration expenses General expenses - - - 1-1 Professional fee 962-962 2,232-2,232 Staff benefits 387-387 388-388 1,349-1,349 2,621-2,621 Total resources expended 1,332,190 384 1,332,574 1,289,879 600 1,290,479 Net (outgoing)/incoming resources (120,923) (384) (121,307) (158,325) 633 (157,693) 21

Kwan Wong Tan & Hong SUNSHINE WELFARE ACTION MISSION STATEMENT OF FINANCIAL ACTIVITIES - DEMENTIA DAY CARE CENTRE FOR THE YEAR ENDED 31 MARCH 2010 (Currency - Singapore dollars) Unrestricted Unrestricted Funds Funds 2010 2009 $ $ INCOMING RESOURCES Incoming resources from generated funds Grants MOH recurrent subvention fund 83,861 93,180 MOH rental subvention fund 34,348 40,410 Foreign workers' levy grant - 6,233 NCSS grants 51,663 62,261 169,872 202,084 Incoming resources from charitable activities Programme fees 156,107 175,287 Total incoming resources 325,979 377,371 RESOURCES EXPENDED Cost of generating funds Fundraising expenses 4,202 3,062 Investment management costs 688 248 4,890 3,310 Charitable activities Advertisement - 44 Agency fees 8 6 Air fare 1,102 1,270 Audit fee 1,590 1,493 Cleaning / disinfectant 2,159 1,953 Consumables 2,074 1,503 Function expenses 2,042 1,163 Gases 3,010 2,522 General expenses 471 116 GST expenses 6 - Insurance 3,414 2,788 Land rental 37,790 44,459 Rental of equipment 312 103 Lease of equipment 33 45 Meal & beverage 25,011 31,168 Medical expenses & supplies - patients 330 88 Medical expenses & supplies - staff 2,172 1,648 22

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - DEMENTIA DAY CARE CENTRE (Continued) Unrestricted Unrestricted Funds Funds 2010 2009 $ $ Charitable activities (Continued) Newspaper & periodicals 147 192 Petrol & parking fee 5,212 7,899 Postage & stamps 86 78 Printing & stationery 1,748 1,543 Professional fee 1,532 747 Repair & maintenance 11,339 10,396 Salaries, bonus, CPF & FWL 152,906 147,651 Security - 1,568 Staff benefits 6 51 Subscription fee - 24 Licence fee 30 43 Telephone & fax 839 792 Training 970 1,082 Transport 198 310 Uniform 363 1,100 Activities/items for residents/clients 382 648 Upkeep of motor vehicles 3,833 5,727 Utilities 20,852 19,108 281,967 289,328 Other operating and administration expenses General expenses 1 Professional fee 389 896 Staff benefits 156 3 545 900 Total resources expended 287,402 293,538 Net incoming resources 38,577 83,833 23

Kwan Wong Tan & Hong SUNSHINE WELFARE ACTION MISSION STATEMENT OF FINANCIAL ACTIVITIES - DAY REHABILITATION CENTRE FOR THE YEAR ENDED 31 MARCH 2010 (Currency - Singapore dollars) Unrestricted Unrestricted Funds Funds 2010 2009 INCOMING RESOURCES Incoming resources from generated funds Grants MOH recurrent subvention fund 139,406 136,607 MOH rental subvention fund 28,320 33,318 Foreign workers' levy grant - 7,927 NCSS grants - 80 167,726 177,932 Incoming resources from charitable activities Programme fees 116,051 122,806 Total incoming resources 283,777 300,738 RESOURCES EXPENDED Cost of generating funds Fundraising expenses 3,101 2,168 Investment management costs 551 175 3,652 2,343 Charitable activities Advertisement - 31 Agency fees 26 24 Air fare 540 1,016 Write back of allowance for impairment of trade receivables (1,283) (680) Audit fee 1,173 1,057 Cleaning / disinfectant 1,780 1,610 Consumables 1,453 1,173 Function expenses 1,589 1,425 Gases 3,632 2,422 General expenses 373 60 GST expenses 6 - Insurance 2,982 1,936 Land rental 31,158 36,657 Rental of equipment 230 73 Lease of equipment 24 32 Meal & beverage 32,031 31,770 Medical expenses & supplies - patients 332 146 Medical expenses & supplies - staff 1,084 1,990 24

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - DAY REHABILITATION CENTRE (Continued) Unrestricted Unrestricted Funds Funds 2010 2009 Charitable activities (Continued) Newspaper & periodicals 109 136 Petrol & parking fee 5,336 7,936 Postage & stamps 64 55 Printing & stationery 1,078 1,136 Professional fee 1,130 529 Repair & maintenance 8,519 7,341 Salaries, bonus, CPF & FWL 120,471 128,015 Security - 1,110 Staff benefits 5 36 Subscription fee - 17 Licence fee 23 31 Telephone & fax 981 758 Training 511 628 Transport 160 185 Uniform 291 778 Activities/items for residents/clients 196 432 Upkeep of motor vehicles 3,911 5,753 Utilities 25,159 18,329 245,074 253,948 Other operating and administration expenses Professional fee 287 634 Staff benefits 315 2 602 636 Total resources expended 249,328 256,927 Net incoming resources 34,449 43,811 25

Kwan Wong Tan & Hong SUNSHINE WELFARE ACTION MISSION STATEMENT OF FINANCIAL ACTIVITIES - HOME MEDICAL SERVICES FOR THE YEAR ENDED 31 MARCH 2010 (Currency - Singapore dollars) INCOMING RESOURCES Unrestricted Unrestricted Funds Funds 2010 2009 $ $ Incoming resources from generated funds Grants MOH recurrent subvention fund 26,331 23,440 MOH rental subvention fund 5,166 6,078 Medication grant - 784 NCSS grants - 11 31,497 30,313 Incoming resources from charitable activities Programme fees 10,117 5,246 Other consumables 17 68 10,134 5,314 Total incoming resources 41,631 35,627 RESOURCES EXPENDED Cost of generating funds Fundraising expenses 336 292 Investment management costs 90 24 426 316 Charitable activities Advertisement - 4 Agency fees 1 1 Air fare 19 11 Allowance for impairment of trade receivables - 711 Audit fee 128 142 Cleaning / disinfectant 325 294 Consumables 143 140 Function expenses 99 74 Medication subsidy 1,384 1,608 Gases 25 22 General expenses 64 7 Insurance 247 261 Land rental 5,684 6,687 Rental of equipment 25 10 Lease of equipment 3 4 Meal & beverage 1 1 Medical expenses & supplies - patients 14,990 15,257 26

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - HOME MEDICAL SERVICES (Continued) Unrestricted Unrestricted Funds Funds 2010 2009 $ $ Charitable activities (Continued) Medical expenses & supplies - staff 39 49 Newspaper & periodicals 12 18 Petrol & parking fee 461 1,405 Postage & stamps 7 7 Printing & stationery 110 178 Professional fee 123 59 Repair & maintenance 857 988 Salaries, bonus, CPF & FWL 4,124 1,886 Staff benefits - 5 Security - 149 Subscription fee - 14 Licence fee 2 4 Telephone & fax 11 8 Training 41 89 Transport 15 16 Uniform 10 105 Upkeep of motor vehicles 339 1,016 Utilities 171 246 29,460 31,476 Other operating and administration expenses Professional Fee 31 86 Staff benefits 13-44 86 Total resources expended 29,930 31,878 Net incoming resources 11,701 3,749 27

Kwan Wong Tan & Hong SUNSHINE WELFARE ACTION MISSION STATEMENT OF FINANCIAL ACTIVITIES - HOME NURSING SERVICES FOR THE YEAR ENDED 31 MARCH 2010 (Currency - Singapore dollars) Unrestricted Unrestricted Funds Funds 2010 2009 Incoming resources from generated funds Voluntary income Donations - tax exempt and non-tax exempt - 10,000 Grants MOH recurrent subvention fund 114,960 108,150 MOH rental subvention fund 5,167 6,078 Medication grant - 257 NCSS grants 312 38 120,439 114,523 Incoming resources from charitable activities Programme fees 27,117 7,803 Other consumables 4,429 1,085 Doctor consultation, tests and prescriptions - 10 Other income - 675 31,546 9,573 Total incoming resources 151,985 134,096 RESOURCES EXPENDED Cost of generating funds Fundraising expenses 1,123 1,034 Investment management costs 125 84 1,248 1,118 Charitable activities Advertisement - 15 Agency fees 2 162 Air fare 64 37 Allowance for impairment of trade receivables - 4,329 Audit fee 427 504 Cleaning / disinfectant 325 294 Consumables 477 511 Function expenses 531 460 Medication subsidy 739 659 Gases 311 226 General expenses 81 26 Insurance 920 742 28

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - HOME NURSING SERVICES (Continued) Unrestricted Unrestricted Funds Funds 2010 2009 Charitable activities (Continued) Land rental 5,684 6,687 Rental of equipment 84 35 Lease of equipment 9 15 Meal & beverage 2,622 2,223 Medical expenses & supplies - patients 3,409 4,348 Medical expenses & supplies - staff 979 880 Newspaper & periodicals 40 65 Petrol & parking fee 2 2 Postage & stamps 23 93 Printing & stationery 951 754 Professional fee 411 209 Repair & maintenance 2,866 3,509 Salaries, bonus, CPF & FWL 140,084 121,409 Security - 529 Staff benefits 2 17 Subscription fee - 51 Licence fee 13 14 Telephone & fax 97 74 Training 3,671 482 Transport 2,179 2,360 Uniform 266 371 Activities/items for residents/clients 1 - Upkeep of motor vehicles 13 1 Utilities 2,153 1,704 169,436 153,797 Other operating and administration expenses Professional fee 105 302 Staff benefits 442 78 547 380 Total resources expended 171,231 155,295 Net outgoing resources (19,246) (21,199) 29

Kwan Wong Tan & Hong SUNSHINE WELFARE ACTION MISSION STATEMENT OF FINANCIAL ACTIVITIES - HOME HELP SERVICES FOR THE YEAR ENDED 31 MARCH 2010 (Currency - Singapore dollars) Unrestricted Unrestricted Funds Funds 2010 2009 INCOMING RESOURCES Incoming resources from generated funds Grants MOH rental subvention fund 9,185 10,806 NCSS grants 104,963 102,481 MCYS grants 342,065 337,689 456,213 450,976 Incoming resources from charitable activities Programme fees 39,083 36,289 Diapers 3,006 2,087 Sponsorship income 153,328-195,417 38,376 Total incoming resources 651,629 489,352 RESOURCES EXPENDED Cost of generating funds Fundraising expenses 3,904 3,306 Investment management costs 308 268 4,212 3,574 Charitable activities Advertisement - 48 Agency fees 38 46 Air fare 1,430 1,914 Audit fee 5,282 1,612 Cleaning / disinfectant 584 522 Consumables 6,429 14,531 Expenses for community services 89 852 Function expenses 1,782 1,632 Gases 2,650 5,992 General expenses 184 104 GST expenses 425 - Insurance 8,364 3,534 Land rental 10,105 11,889 Rental of equipment 291 112 Lease of equipment 31 49 Meal & beverage 67,326 75,383 Medical expenses & supplies - patients 628 90 30

Kwan Wong Tan & Hong STATEMENT OF FINANCIAL ACTIVITIES - HOME HELP SERVICES (Continued) Unrestricted Unrestricted Funds Funds 2010 2009 Charitable activities (Continued) Medical expenses & supplies - staff 2,706 8,662 Newspaper & periodicals 137 208 Minor assets 2,400 - Diapers 1,901 893 Petrol & parking fee 20,619 21,922 Postage & stamps 80 84 Printing & stationery 1,699 2,106 Professional fee 1,428 806 Repair & maintenance 9,949 11,192 Salaries, bonus, CPF & FWL 204,593 228,095 Security - 1,693 Staff benefits 56 155 Subscription fee - 26 Licence fee 35 50 Telephone & fax 742 1,866 Training 2,509 1,529 Transport 3,228 7,456 Uniform 801 1,187 Activities/items for residents/clients 4 1 Upkeep of motor vehicles 11,890 15,894 Utilities 18,356 45,935 388,771 468,070 Other operating and administration expenses General expenses - 1 Professional fee 362 967 Staff benefits 346 86 708 1,054 Total resources expended 393,691 472,698 Net incoming resources 257,938 16,654 31

SUNSHINE WELFARE ACTION MISSION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2010 (Currency Singapore dollars) 2010 2009 $ $ Cash flows from operating activities Surplus/(deficit) for the financial year 1,107,478 (343,328) Adjustments for: Allocation of deferred income (1,197,341) (692,086) Depreciation of property, plant and equipment 880,197 834,212 Interest income (1,960) (9,908) Hire purchase interest 509 708 Loss/(gain) on disposal of property, plant and equipment 1,195 (500) Allowance (written back)/ made for impairment of investment (124,728) 200,000 Surplus/(deficit) before working capital changes 665,350 (10,902) Changes in working capital: Trade receivables (112,249) 405,003 Other receivables, deposits and prepayment (9,380) 88,711 Inventory (1,610) 348 Trade payables 14,798 (36,958) Accruals and other payables 77,130 (171,754) Residents deposits 1,939 (405) Residents accounts 394 86,445 636,372 360,488 Deferred income received 227,652 222,916 Net cash generated from operating activities 864,024 583,404 Cash flows from investing activities Placement of deposits (1,530) (2,934) Interest received 1,960 9,908 Purchase of property, plant and equipment (285,575) (143,347) Proceeds from sales of property, plant and equipment - 500 Proceeds from redemption of investment in minibond 124,728 - Net cash used in investing activities (160,417) (135,873) 32

STATEMENT OF CASH FLOWS (Continued) 2010 2009 $ $ Cash flows from financing activities Hire purchase repayment (3,091) (2,892) Hire purchase interest (509) (708) Net cash used in financing activities (3,600) (3,600) Net increase in cash and cash equivalents 700,007 443,931 Cash and cash equivalents at beginning of the year 2,891,392 2,447,461 Cash and cash equivalents at end of the year (Note 10) 3,591,399 2,891,392 The accompanying notes form an integral part of these financial statements 33

SUNSHINE WELFARE ACTION MISSION (SWAMI) NOTES TO THE FINANCIAL STATEMENTS AS AT 31 MARCH 2010 (Currency Singapore dollars) 1. THE SOCIETY Sunshine Welfare Action Mission, also known as SWAMI ( the Society ) (Registration No. 182/88/WEL) is registered in the Republic of Singapore under the Societies Act, Cap. 311. It is also licensed under the Private Hospitals and Medical Clinics Act 1980 (Cap. 248) issued by the Ministry of Health, Singapore. The Society is domiciled in the Republic of Singapore and the registered office is located at 5 Sembawang Walk, Singapore 757717. The principal activities of the Society are the provision of shelter, nursing care and rehabilitative services to the needy aged, aged sick and the handicapped; and an avenue for dedicated volunteers to render such services. Working towards a world-class organization for Eldercare and the Needy, the Society has extended its services to provide and advocate integrate Eldercare Services in Singapore. Beside the Society s principal activities of a nursing home, the following community services were introduced to provide the different needs of elderly and needy. Nursing Home The Society provides residential nursing care facilities for the aged and the aged sick. Services provided are medical, nursing care and rehabilitation through physio therapy and occupational therapy in a homely environment. Dementia Home The Society provides residential nursing care facilities for dementia patients. Services provided are medical, nursing care and rehabilitation through physio therapy and occupational therapy in a homely environment. Day Rehabilitation Centre This service is designed to improve and maintain the maximum functional ability of the elderly. Individual and group exercises are encouraged amongst the elderly through games, callisthenic exercises and physiotherapy to keep them active. 34

NOTES TO THE FINANCIAL STATEMENTS (Continued) 1. THE SOCIETY (Continued) Dementia Day Care Centre The Dementia Day Care Centre provides relief to family caregivers by looking after the patients during the day. Activities in the form of games and exercise are organised to keep them active and alert. It helps stimulate their mental capabilities. Reminiscence therapy is used to help elderly recall their past, which will in turn help them relate to the present better. Home Help Service This service is designed to provide the elderly with a range of services, which will enable them to remain in the community. Services provided are as follows - - Delivery of well-prepared nutritionally balanced meals on a daily basis. - Assistance in personal hygiene and grooming. - Assistance in household chores and laundry service. - Purchase of daily necessities and collection of medicine from polyclinics. - Transportation or escort services. Home Medical Service Home medical care is provided to homebound individuals at their residence. The aim is to promote, maintain or restore the health of individuals and to maximise their level of independence. Home Nursing Service This service is designed to provide nursing care for the aged sick and nonambulant clients in their own homes. The service focuses on disease control and functional problems. Home caretakers are trained and advised on how to care for their loved ones in the comfort of their own home. Separate sets of supplementary statement of financial activities have been drawn up to reflect the results of the abovementioned services. There have been no significant changes in the nature of these activities during the financial year. 35

NOTES TO THE FINANCIAL STATEMENTS (Continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation - The financial statements have been prepared in accordance with Singapore Financial Reporting Standards ( FRS ) and under the historical cost convention except for those mentioned in the accounting policies below. The Society also adopt the Recommended Accounting Practice 6, Accounting and Reporting by Charities, issued and approved by the Institute of Certified Public Accountants. In the current year, the Society adopted the new or revised FRS that are applicable in the current financial year. The financial statements have been amended as required, in accordance with the relevant transitional provisions in the respective FRS. The following are the FRS that are relevant to the Society - FRS 1 (Amendment) FRS 7 (Amendment) FRS 8 (Amendment) FRS 10 (Amendment) FRS 16 (Amendment) FRS 19 (Amendment) FRS 32 (Amendment) FRS 36 (Amendment) FRS 107 (Amendment) Presentation of Financial Statements Statement of Cash Flows Accounting Policies, Changes in Accounting Estimates and Errors Events after the Reporting Period Property, Plant and Equipment Employee Benefits Financial Instruments: Presentation Impairment of Assets Financial Instruments: Disclosures Improving Disclosures about Financial Instruments The adoption of the above FRS has not resulted in substantial changes to the Company s accounting policies except as disclosed below FRS 1 (Amendment) - Presentation of Financial Statements FRS 1 (Amendment) has introduced terminology changes (including revised titles for the financial statements) and changes in the format and content of the financial statements. In addition, the revised Standard requires the presentation of a third statement of financial position at the beginning of the earliest comparative period presented if the entity applies new accounting policies retrospectively or makes retrospective restatement or reclassifies items in the financial statements. 36

NOTES TO THE FINANCIAL STATEMENTS (Continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (a) Basis of preparation (Continued) - The preparation of financial statements in conformity with FRS requires the Management Committee to exercise their judgement in the process of applying the Society s accounting policies. It also requires the use of certain critical accounting estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. 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 estimate is revised and in any future periods affected. Critical accounting estimates and assumptions used that are significant to the financial statements and areas involving a higher degree of judgement or complexity are disclosed in Note 3 below. (b) Property, plant & equipment - Property, plant & equipment are stated at cost less accumulated depreciation and impairment losses, if any. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to working condition for its intended use. Dismantlement, removal or restoration costs are included as part of the cost of property, plant and equipment if the dismantlement, removal or restoration is incurred as a consequence of acquiring or using the asset. Depreciation is provided on a straight-line basis to write-down the cost of the property, plant & equipment to their estimated residual values at the end of their estimated useful lives as follows Leasehold building Rehabilitation equipment and fixtures Motor vehicles Office equipment, furniture & fittings 30 years from the date of Temporary Occupancy Permit 5 years 5 years 5 years The residual values and useful lives of property, plant and equipment are reviewed and adjusted as appropriate, at each financial year end date. 37

NOTES TO THE FINANCIAL STATEMENTS (Continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (b) Property, plant & equipment (Continued) - Fully depreciated plant & equipment are retained in the accounts until they are no longer in use. (c) Cash and cash equivalents - For the purpose of the statement of cash flows, cash and cash equivalents comprise cash and bank balances and short-term deposits but exclude fixed deposits that are pledged as security to the bank. (d) Inventories - Inventories of medicine are stated at the lower of cost (determined by firstin first-out) and net realisable value. Cost comprises purchase costs of the medicines. Net realisable value is the estimated selling price in the ordinary course of business. (e) Impairment of assets (non-financial assets) - The Society s assets of property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised in the statement of financial activities for items of assets carried at cost. The recoverable amount is the higher of an asset s net selling price and value in use. The net selling price is the amount obtainable from the sale of an asset in an arm s length transaction. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or, if it is not possible, for the cash-generating unit to which the asset belongs. Reversal of an impairment loss recognised in prior years is recorded when there is an indication that the impairment loss recognised for an asset no longer exists or has decreased. The reversal is recorded in the statement of financial activities. 38

NOTES TO THE FINANCIAL STATEMENTS (Continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (f) 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) Provision - A provision is recognised in the statement of financial activities when the Society has a legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. (h) Revenue - Revenue is recognised on the following basis - (i) Government grant - recognised as income on a basis to match them with the related cost or where there is no basis existed for allocating a grant, recognised when received. (ii) Donations - recognised when received. (iii) Interest income - on a time proportion basis over the period of placement of the fixed deposits and funds invested. (iv) (v) Government grants related to assets Nursing/programme fees - government grants related to assets are presented in the statement of financial position as deferred income which is recognised as income on a systematic and rational basis over the useful life of the asset. - recognised when the services are performed. 39

NOTES TO THE FINANCIAL STATEMENTS (Continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (i) Employee benefits - i) Defined contribution plan As required by law, the Society makes mandatory contributions to the Central Provident Fund (CPF). CPF contributions are recognised as compensation in the period to which the contributions relate. ii) Employment leave entitlements (j) Leases - Employees entitlements to annual leave are recognised when they accrue to employees. An accrual is made for the estimated liability for leave as a result of services rendered by the employees up to the financial year end date. (i) Hire purchase and finance leases When assets are financed by hire purchase or lease agreements that rights approximate to ownership, the assets are capitalised as if they had been purchased outright at value equivalent to the present value of the total rental payable during the period of the hire purchases or leases. Assets acquired through finance leases are capitalised under property, plant and equipment and the related lease liabilities are recorded in the statement of financial position at the present value of the minimum lease payments at the inception of the lease. The excess of the lease payments over the recorded lease liabilities is treated as finance charges which is amortised over each lease term to give a constant rate of interest on the remaining balance of liabilities. (ii) Operating leases Leases of property, plant and equipment where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. 40 Operating leases payments are recognised as an expense in the statement of financial activities on a straight line basis over the lease term.

NOTES TO THE FINANCIAL STATEMENTS (Continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (k) Financial assets - Classification The Society classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, held-to-maturity and available-for-sale. The classification depends on the purpose for which the assets were acquired. Management Committee determines the classification of its financial assets at initial recognition. The designation of financial assets at fair value through profit or loss is irrevocable. The financial assets held by the Society during the year are loan and receivables and financial assets held to maturity. (i) 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 presented as current assets, except for those maturing more than 12 months after the financial year end date which are presented as non-current assets. Loans and receivables comprise cash and bank balances, trade receivables and other receivables. (ii) Financial assets, held-to-maturity Financial assets held-to-maturity are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Society has the positive intention and ability to hold to maturity. The Society s held-to-maturity financial assets comprise investment in debt security. Recognition and derecognition Regular way purchases and sales of financial assets are recognised on trade-date the date on which the Society commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial asset have expired or have been transferred and the Society 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 the statement of financial activities. Any amount in the fair value reserve relating to that asset is transferred to the statement of financial activities. 41