Page 1


Front Cover

Sculpture work Year 1

Back Cover

Sara BROADLEY 11R


Contents Report from The Chair of Governors

2

Director of School’s Report

5

Governors’ Report

8

Statement by Governors

13

Statutory Declaration

13

Independent Auditors’ Report

14

Statement of Comprehensive Income

17

Statement of Financial Position

18

Statement of Changes in Equity

19

Statement of Cash Flows

20

Notes to the Financial Statements

22

Statement of Comprehensive Income

47

Key Statistical Information

48

Parent Teacher Association’s Financial Statements

49


Report from The Chair of Governors A warm welcome to members of the Alice Smith Schools Association (ASSA). You will find our school in good shape, with much to be proud of in terms of academic, sporting, artistic and voluntary service achievements. As a leading school in Asia, our school is always learning and is always involved in the pursuit of excellence. This report will give you an overview of the Association’s main strategic work with the school over the past 12 months.

History & Structure The Alice Smith School is governed by a not-for-profit educational foundation, like most other leading international schools in Asia. The school was founded in 1946 by Alice Fairfield-Smith. In 1950, the school’s governance and not-for-profit structure was formally established with the registration of ASSA, as a Malaysian company limited by guarantee and not having share capital. This means that all surplus generated by running the Alice Smith School is ploughed back into the school. In particular, there are no dividend payments and no payments to the Association’s governors. It also means that all parents must join ASSA before their children start attending our school, and that there is an AGM every year. ASSA is managed by a Council of Governors, who serves on a pro-bono basis, and employs our Director of School to run all operations of the Alice Smith School.

About The Council of Governors The Council of Governors is the strategic body tasked with the long-term success, financial health and well-being of the Alice Smith School. The Council of Governors consists of 18 governors. Of these there are seven trustee governors, 10 ordinary (parent) governors and the chair of the PTA. Although the ASSA Council of Governors is on the large side, a mixture of trustee and parent governors is the most successful and sustainable model in international schools. The trustee governors are nominated by seven bodies who have agreed to support ASSA - two local Churches, four expatriate societies and the Malaysian International Chamber of Commerce. Ordinary governors are nominated from within the ASSA membership and parents stand for election at the Annual General Meeting.

Workings of The Council of Governors The Council of Governors reports to the ASSA annually at its AGM, normally held in February each year. In addition, the Council of Governors meets twice a term. It has a smaller grouping called the Steering Committee that meets once a month during term. The Council’s sub committees are Governance, Master Plan (infrastructure), Finance, Director of School Evaluation, and Futures. From time to time, ad hoc sub-committees are formed to carry out special projects/tasks. The Council also holds a Strategy Workshop in March every year. Governors are bound by a Code of Conduct that explicitly states all governors should have a long-term strategic view, and be bound by the principle of collective responsibility on decisions made at Council-level.

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Report from The Chair of Governors (cont’d) Trustee and Ordinary governors have the same level of responsibility. Trustee governors were the original foundation of ASSA, and are a means of ensuring some continuity of strategic view, in what is often a very transient body. Ordinary Governors are nominated and elected directly from the members of ASSA, and can serve for up to three consecutive terms. The Council of Governors has historically found it difficult to retain governors for the 8 years that is considered best practice.

Governance This year, the Council had its largest ever injection of governance training and advice for notfor-profit international schools, involving three days with governance and education system experts at Jalan Bellamy and also the EARCOS (East Asian Region Council of Schools) Summit in Bangkok with over 100 school governors from the region. Three governors also attended the Google in Education Summit at ISKL. The main outcome is that the Council of Governors now has two clearly articulated cornerstones that govern everything we do: First is that our focus is, and always will be, the quality of teaching in our school. This is the one “pull out” factor that makes a difference across all education systems in all countries, particularly the high achieving ones. You know from our last BSO OFSTED Inspection that teaching at the Alice Smith School is already at a high standard, but there is always room for improvement and given the large changes coming to education in the next few years (flipped classrooms, seamless virtual communities) this focus will be vital. As a consequence, we will be doing all we can to support our Director of School in the pursuit of excellent teaching quality. Second is the importance of the voluntary, or pro-bono, work of all the members of the Council of Governors, the Parent Teacher Association, teachers and parents. This spirit of voluntarily serving a wider good, rather than a narrower individual interest, is at the heart of the Council and at the heart of our PTA and the heart of our school. This “Alice Smith Spirit” is what helps to makes our community a happy and caring place and we will be celebrating this with our Founder’s Day celebrations on July 4, 2014.

Campus Masterplans Notwithstanding these high points, we still need to improve many of our facilities at Alice Smith because we have many classrooms on both sites that do not fit the needs of modern education, especially with the large changes that technology will bring in the coming years. Our Jalan Bellamy dining hall and Equine Park main block construction projects are already going ahead and we will be presenting our draft campus master plans for parent review in the coming months. The Alice Smith School’s financial position is strong, and the Council has ascertained that the master plan can be built within its resources.

3


Report from The Chair of Governors (cont’d) Leadership Transition The Council of Governors has only one direct employee – the Director of School. We have been fortunate that our current Director of School, Mrs. Valerie Thomas-Peter has served our school for six years, which has allowed for deep and sustained improvements to the Alice Smith School. However, leadership transition is inevitable and over the past 12 months, the Council of Governors has successfully recruited and hired Mr. Roger Schultz to succeed Mrs. Thomas-Peter from September 2014. Mr. Schultz is currently the Principal of our Secondary Campus, Equine Park.

70th Anniversary Just as a note of anticipation, we will mark our school’s 70th anniversary in 2016, so expect large celebrations then, involving several decades of alumni and friends of the school. Best regards.

Lorien Holland

Chair, Council of Governors

4


Director of School’s Report 2014 I am pleased with the progress and development of the Alice Smith School in the year since our last AGM and would like to outline the main achievements for you here. This year we have continued to work towards achieving our vision being a consistently outstanding school. The Facilities Master Plan is ready for approval and the developments for the Main Block at Equine Park are now underway. The improved teaching and learning spaces in both Mathematics and Modern Foreign Languages will continue our momentum towards our aim of developing independent learning in our students and in their preparation for a successful international future. As an international school, these subjects of key importance to us and the provision of this top notch learning environment will further enhance the outstanding teaching that students receive in both Maths and MFL departments. The past year has also seen the development of the front rugby field at Equine Park with much improved drainage. The pitch is now ready for use within 1 hour of a torrential downpour, something which was unheard of prior to the returfing of the field taking place. Whilst this work was being completed the front driveway and entrance to the Secondary Campus was also widened and improved to improve the flow of traffic in and out of the Campus. At Jalan Bellamy the building of our new Dining Hall and Parent Services area is well underway and we look forward to the opening of both facilities early in the academic year 2014/15. Once the old Deli and Staff Room were demolished, a new temporary Deli was set up under the Y5/6 Block and after some initial teething troubles is now catering for the needs of our school community. The long awaited astro turf sports field was unveiled at the very end of term 3 2012/13 much to the delight of all of the students (and also the JB PE Department). Work has also taken place in Reception and Year 2 (two of our oldest areas of the Jalan Bellamy Campus) to upgrade the teaching and learning environments and in Year 1 the roofing to the outdoor area has meant that children have much more space to take part in learning activities. Further work has taken place improving the flooring to the rear of Year 1 which was replaced with a non-slip surface and the old DT room in the upstairs Year 2 corridor was renovated to be a flexible Science/DT teaching and learning space. Our school improvement plan for the last academic year was once again successfully implemented and our targets were met. Our new areas of focus for this academic year have once again been aligned with the agreed aims under the umbrella the Strategic Themes developed by the Council and ELT 4 years ago. These are Academic Excellence, Employer of Choice, Pastoral Care, Community and Infrastructure and Resources. Under the theme of Academic Excellence we have prioritized the monitoring and evaluation of student progress, the further evaluation of classroom teaching and learning and curriculum review and development across the whole school.

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Director of School’s Report 2014 (cont’d) Working under the theme of Employer of Choice we are now looking at how we can improve professional development for our staff through the use of electronic profiles using ‘Blue Sky’. Our Staff turnover was significantly lower than last year (10% of staff spread across both campuses) than last year (18% and 13% the previous year) which has been attributed to the ‘bedding in’ of the structure of the middle leadership at Jalan Bellamy. Exam results are one of the most obvious indicators of excellent teaching, and the exam results at both GCSE and A2 in August 2013 were the best in the school’s history. At A level, 78% of all of our entries were graded A*, A or B. This is a higher level than that achieved last year, where 68% of students achieved an A*, A or B grade, and enables us to maintain our 3 year rolling average of 70% of grades at A*-B. Once again we are also delighted to announce that 100% of our students achieved a pass grade at A level and it is worth noting that thirty students (40% of the cohort) achieved all straight A* / A grades, with four students achieving 4 A*, four students scoring at least 3 A* and five students achieving at least 2 A* grades. The majority of our graduating students from last year’s Year 13 (86%) have confirmed first choice placements in excellent universities, including 7 heading to Oxbridge and placements at Imperial, Kings, UCL, Bristol, Edinburgh and Bath. Russell Group universities feature strongly in the placements for the vast majority of graduates who have chosen the UK as their higher education destination. Some key points regarding placements this year: • • •

7 students have secured places at Oxbridge 8 students have secured places on Medicine degrees Several students secured places at some of the most competitive universities (HKU, HKUST, Seoul, LSE, Kings, UCL, Imperial)

This year’s I/GCSE are the best in the history of the school, the previous highest cohort result being 62% A*/A grades in June 2010. There were 122 students in this Year 11 cohort of 2013. Ninety-seven students (4 out of every 5 students) obtained five or more A* and A grades in their results with thirty students (1 in every 4) scoring ten or more A* and A grades (25% of the cohort). With early entry students (Year 9 and 10), a total of 1371 grades were awarded, 943 of these being A*/A. Twenty students achieved a clean sweep of A* and A grades in all their subjects. Outstanding individual results include 1 student who attained an exceptional ten A* grades. Nineteen students scored 7A* grades or more in their subjects. As a consequence of these outstanding results our 3 year rolling average for A*/A grades has increased from 59% to 62%. At the Primary Campus the news concerning our Y6 SATS results is equally as uplifting with 97% of our students achieving the expected level (Level 4 or above) in both English and Mathematics.

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Director of School’s Report 2014 (cont’d) In ‘Reading’ an overwhelming majority of students (98%) achieved a Level 4 or higher and a very large majority of students (80%) were awarded a Level 5, the attainment level achieved by the average pupil at the end of Key Stage 3 (Year 9). In ‘Writing’ the very large majority of students (95%) achieved a Level 4 or higher; this is an excellent achievement and far exceeds the levels achieved in UK schools. 50% of students were awarded a Level 5, the attainment level achieved by the average pupil at the end of Key Stage 3 (Year 9). The Mathematics results were again excellent with the overwhelming majority (97%) of students achieving a Level 4 or above. A large majority (69%) of the students achieved a Level 5. Once again this year a selection of students were given the opportunity to sit the Level 6 paper. An impressive 17% of our students successfully achieved a Level 6, (the equivalent level of attainment for average students in Year 10). All of the KS2 SATs results show an improvement on last year’s results. Of course, Alice Smith is about a lot more than just examination results. Our vision it to be a consistently outstanding school in every area of school life, which naturally includes extracurricular activities. This year has seen a change in the organization, booking and delivery of our ECA programme through the introduction of CHQ, which has made the on-line registration for activities much simpler and easier to manage. The system allows students to book second and third choice activities, ensuring that fewer students are disappointed if they don’t get their first choice of activity. A large number of our students have participated in sporting activities through inter-school competition at a local level and also regionally through SEASAC and FOBISSEA. These have reported through our PE edition of KLASS Times which is published every half term. Students have also participated in a range of music and non-sporting events both in the region and internationally and some of our students won high accolades for their personal prowess in particular fields of endeavour. Community Work continues to have a high profile and is a formal component of the Year 12 curriculum as part of the AQA Baccalaureate. Students across the both campuses have raised several thousand ringgit for clearly identified needy causes. The school has had another very positive year, building on its strengths and focusing on providing our students at the school with the best quality of education possible. The school roll is the highest it has ever been (1584 at the time of writing this report), our sixth form continues to flourish with over 176 students studying in Y12 and 13 and there are waiting lists for nearly all of our year groups. There is much to celebrate.

Best wishes,

Valerie Thomas-Peter Valerie Thomas-Peter Director of School

7


Governors’ Report The Governors have pleasure in presenting their report together with the audited financial statements of the Association for the financial year ended 31 August 2013. Principal activity The principal activity of the Association is the provision of a British Education in an international context. There has been no significant change in the nature of this activity during the financial year.

Results

RM

Net surplus for the year 8,774,396 There were no material transfers to or from reserves or provisions during the financial year other than disclosed in the financial statements. In the opinion of the Governors, the results of the operations of the Association during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature, other than as disclosed in the financial statements.

Governors The names of the Governors of the Association in office since the date of the last report and at the date of this report are: Bronagh Lorien Louise Holland (Trustee for St. Mary’s Cathedral and Chair) Shahryn Yong Azmi (Vice Chair) Irene Khoo Gaik Suan (Trustee for St. Andrew’s Presbyterian Church) Tina Yeung (Trustee for the Malaysian International Chamber of Commerce and Industry) Andrew William Robinson (Trustee for Royal Society of St. George) Ivanka Agnes Maria Vogels Jeffery (Trustee for St. Andrew’s Society) Rory Doyle (Trustee for St. Patrick’s Society) Alexander Martin Boden (Trustee for MANZA) Morwenna Ethel Franssens (PTA Chair, appointed on 24 October 2013) Noor Aishah Strong (PTA Chair, retired on 26 September 2013) Kaharudin Bin Mohd Kassim Guy Francis Perring Marama Lisa Schnitker

8


Governors’ Report (cont’d) Governors (cont’d) The names of the Governors of the Association in office since the date of the last report and at the date of this report are (cont’d): Lim Chao Li Eoin Gregory Daly Fiona Louise Howells (Appointed on 28 February 2013) Grant Scott Ferguson (Appointed on 28 February 2013) Peter Thomas Lee (Appointed on 28 February 2013) Sara Alexandra Maclaurin (Appointed on 28 February 2013) David Chapplow (Retired on 28 February 2013) Arie van der Horst (Retired on 28 February 2013)

Governors’ benefits Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Association was a party, whereby the Governors might acquire benefits by means of the acquisition of shares in or debentures of the Association or any other body corporate. Since the end of the previous financial year, no Governor has received or become entitled to receive a benefit by reason of a contract made by the Association with any Governor or with a firm of which the Governor is a member or with a company in which the Governor has a substantial financial interest.

Governors’ attendance records

The Governors held twelve (12) meetings during the financial year ended 31 August 2013 and the attendance record is as follows: Bronagh Lorien Louise Holland 12/12 Shahryn Yong Azmi 10/12 Irene Khoo Gaik Suan 11/12 Tina Yeung 9/12 Andrew William Robinson 10/12 Ivanka Agnes Maria Vogels Jeffery 9/12 Rory Doyle 6/12 Alexander Martin Boden 10/12 Noor Aishah Strong 11/12 Kaharudin Bin Mohd Kassim 11/12 Guy Francis Perring 10/12 Marama Lisa Schnitker 12/12 Lim Chao Li 12/12 Eoin Gregory Daly 10/12

9


Governors’ Report (cont’d) Governors’ attendance records (cont’d) The Governors held twelve (12) meetings during the financial year ended 31 August 2013 and the attendance record is as follows (cont’d): Fiona Louise Howells 7/7 Grant Scott Ferguson 6/7 Peter Thomas Lee 7/7 Sara Alexandra Maclaurin 7/7 David Chapplow 0/4 Arie van der Horst 2/5

Steering Committee

The Governors who are involved in the Steering Committee are: Bronagh Lorien Louise Holland Shahryn Yong Azmi Marama Lisa Schnitker Lim Chao Li Kaharudin Bin Mohd Kassim (Appointed on 28 February 2013) Fiona Louise Howells (Appointed on 26 September 2013) Rory Doyle (Resigned on 28 February 2013) Tina Yeung (Appointed on 28 February 2013, resigned on 19 November 2013) Noor Aishah Strong (Appointed on 28 February 2013, retired on 26 September 2013) David Chapplow (Retired on 28 February 2013) Other statutory information (a) Before the statement of comprehensive income and statement of financial position of the Association were made out, the Governors took reasonable steps: (i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts have been written off and that no provision for doubtful debts was necessary; and (ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected to realise.

10


Governors’ Report (cont’d) Other statutory information (cont’d) (b) At the date of this report, the Governors are not aware of any circumstances which would render: (i) the amounts written off for bad debts inadequate to any substantial extent or to make any provision for doubtful debts in respect of the financial statements of the Association; and (ii) the values attributed to current assets in the financial statements of the Association misleading. (c) At the date of this report, the Governors are not aware of any circumstances which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Association misleading or inappropriate. (d) At the date of this report, the Governors are not aware of any circumstances not otherwise dealt with in this report or financial statements of the Association which would render any amount stated in the financial statements misleading. (e) At the date of this report, there does not exist: (i) any charge on the assets of the Association which has arisen since the end of the financial year which secures the liabilities of any other person; or (ii) any contingent liability in respect of the Association which has arisen since the end of the financial year. (f) In the opinion of the Governors: (i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Association to meet its obligations as and when they fall due; and (ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Association for the financial year in which this report is made.

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Governors’ Report (cont’d) Auditors

The auditors, Ernst & Young, have expressed their willingness to continue in office. Signed on behalf of the Council in accordance with a resolution of the Governors dated 28 November 2013. Bronagh Lorien Louise Holland Shahryn Yong Azmi

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Statement by Governors

Pursuant to Section 169(15) of the Companies Act, 1965 We, Bronagh Lorien Louise Holland and Shahryn Yong Azmi, being two of the Governors of The Alice Smith Schools Association, do hereby state that, in the opinion of the Governors, the accompanying financial statements set out on pages 17 to 46 are drawn up in accordance with applicable Malaysian Financial Reporting Standards, International Financial Reporting Standards, and the requirements of the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Association as at 31 August 2013 and of the results and the cash flows of the Association for the year then ended. Signed on behalf of the Council in accordance with a resolution of the Governors dated 28 November 2013. Bronagh Lorien Louise Holland Shahryn Yong Azmi

Statutory Declaration

Pursuant to Section 169(16) of the Companies Act, 1965 I, Leong Kok Liang, being the officer primarily responsible for the financial management of The Alice Smith Schools Association, do solemnly and sincerely declare that the financial statements set out on pages 17 to 46 are in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960. Subscribed and solemnly declared by the abovenamed Leong Kok Liang at Federal Territory on 28 November 2013. Leong Kok Liang Before me,

13


Independent Auditors’ Report

to the members of The Alice Smith Schools Association (Limited by Guarantee)

Report on the financial statements We have audited the financial statements of The Alice Smith Schools Association, which comprise the statement of financial position as at 31 August 2013, and statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 17 to 46. Governors’ responsibility for the financial statements The Governors of the Association are responsible for the preparation of financial statements that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards, and the Companies Act, 1965 in Malaysia, and for such internal controls as the Governors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the Association’s preparation of the financial statements that give a true and fair view 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 Association’s internal controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Governors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Independent Auditors’ Report (cont’d)

to the members of The Alice Smith Schools Association (Limited by Guarantee)

Report on the financial statements (cont’d) Opinion In our opinion, the financial statements have been properly drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards, and the requirements of the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Association as at 31 August 2013 and of its financial performance and cash flows for the year then ended.

Report on other legal and regulatory requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report that in our opinion, the accounting and other records and the registers required by the Act to be kept by the Association have been properly kept in accordance with the provisions of the Act.

Other matters As stated in Note 2 to the financial statements, The Alice Smith Schools Association adopted Malaysian Financial Reporting Standards on 1 September 2012 with a transition date of 1 September 2011. These standards were applied retrospectively by Governors to the comparative information in these financial statements, including the statements of financial position as at 31 August 2012 and 31 August 2013, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended 31 August 2013 and related disclosures. We were not engaged to report on the restated comparative information and it is unaudited. Our responsibilities as part of our audit of the financial statements of the Company for the year ended 31 August 2013 have, in these circumtances, included obtaining sufficient appropriate audit evidence that the opening balances as at 1 September 2012 do not contain misstatements that materially affect the financial position as of 31 August 2013 and financial performance and cash flows for the year then ended.

15


Independent Auditors’ Report (cont’d)

to the members of The Alice Smith Schools Association (Limited by Guarantee)

Other matters (cont’d) This report is made solely to the members of the Association, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young Loke Siew Heng AF: 0039 No. 2871/07/15(J) Chartered Accountants Chartered Accountant Kuala Lumpur, Malaysia 28 November 2013

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Statement of comprehensive income for the year ended 31 August 2013

2013

2012

Note

RM

RM

Revenue

5

69,885,718

62,748,640

Other income

6

9,273,765

9,508,157

79,159,483

72,256,797

Administrative expenses

(63,692,575)

(59,822,925)

Other expenses

(6,567,356)

(6,961,558)

Surplus before finance cost

8,899,552

5,472,314

Finance costs

(45,318)

(313,461)

Surplus before taxation

7

8,854,234

5,158,853

Taxation

9

(79,838)

(352,928)

comprehensive surplus for the year 8,774,396

4,805,925

Surplus for the year, representing total

The accompanying notes form an integral part of the financial statements.

17


Statement of financial position as at 31 August 2013

Non-current asset Property, plant and equipment Current assets Inventories Other receivables Prepayments Short term investments Cash and bank balances Total assets Equity and liabilities Equity attributable to members of the Association Members accumulated funds Income and expenditure account Total equity Non-current liabilities Loans and borrowings Retirement benefits Current liabilities Other payables Retirement benefits Tax payable Loans and borrowings Parents’ deposits Total liabilities Total equity and liabilities

31.08.2013

31.08.2012

01.09.2011

Note

RM

RM

RM

10

67,141,264

63,570,324

58,842,183

11 12

627,993 2,587,635 291,388 54,567,808 5,205,284 63,280,108 130,421,372

474,178 1,782,360 203,703 44,978,685 47,438,926 111,009,250

623,088 1,909,970 658,803 38,172,169 41,364,030 100,206,213

18

53,957,423 9,740,712 63,698,135

48,993,288 966,316 49,959,604

45,720,460 (3,839,609) 41,880,851

17 16

787,337 787,337

692,599 692,599

2,402,371 531,014 2,933,385

15 16

34,904,322 35,847 16,453 7,368,232 23,611,046 65,935,900 66,723,237 130,421,372

31,238,050 26,169 121,633 8,540,466 20,430,729 60,357,047 61,049,646 111,009,250

29,639,689 114,846 39,512 9,418,446 16,179,484 55,391,977 58,325,362 100,206,213

13 14

17 19

The accompanying notes form an integral part of the financial statements.

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Statement of changes in equity for the year ended 31 August 2013 At 1 September 2011 Additions during the year Withdrawals during the year Transfer from surplus for the year At 31 August 2012 Additions during the year Transfer from surplus for the year At 31 August 2013

Building fund (Note 18) RM

Debenture redemption reserve

General reserve

Sinking fund

(Note 18) RM

(Note 18) RM

(Note 18) RM

155,700 155,700 155,700

247,115 247,115 247,115

48,780 (48,780) -

45,268,865 3,321,608 48,590,473 4,964,135 53,554,608

The accompanying notes form an integral part of the financial statements.

Income and expenditure account

Total

RM

RM

(3,839,609) 4,805,925 966,316 8,774,396 9,740,712

41,880,851 3,321,608 (48,780) 4,805,925 49,959,604 4,964,135 8,774,396 63,698,135

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Statement of cash flows for the year ended 31 August 2013

2013

2012

RM

RM

Cash flows from operating activities Surplus before taxation 8,854,234 Adjustments for: Depreciation of property, plant and equipment 5,028,634 Interest expense (Gain)/loss on disposal of property, plant and equipment (36,343) Provision for retirement benefits 116,165 Interest income (409,146) Dividend income (1,052,761) Fair value adjustment of short term investment (119,397) Operating surplus before working capital changes 12,381,386 Inventories (153,815) Receivables (892,960) Payables 3,666,272 Cash generated from operations 15,000,883 Taxes paid (185,018) Retirement benefits paid (11,749) Interest paid Net cash generated from operating activities 14,804,116 Cash flows from investing activities Proceeds from disposal of property, plant and equipment 37,303 Purchase of property, plant and equipment (8,600,534) Short term investment (54,448,411) Dividend income received 1,052,761 Interest received 409,146 Net cash used in investing activities (61,549,735)

5,158,853 5,828,469 236,035 157 112,080 (1,306,233) 10,029,361 148,910 582,710 1,598,361 12,359,342 (270,807) (39,172) (236,035) 11,813,328

1,512 (10,558,279) 1,306,233 (9,250,534)

Cash flows from financing activities Parents’ deposits, net of refunds Repayment of long term loans Building fund Withdrawal from Sinking Fund Net cash generated from financing activities

20

3,180,317 (1,172,234) 4,964,135 6,972,218

4,251,245 (3,280,351) 3,321,608 (48,780) 4,243,722


Statement of cash flows (cont’d) for the year ended 31 August 2013

2013 RM Net (decrease)/increase in cash and cash equivalents (39,773,401) Cash and cash equivalents at the beginning of the year 44,697,685 Cash and cash equivalents at the end of the year (Note 14) 4,924,284

2012 RM

6,806,516 37,891,169 44,697,685

The accompanying notes form an integral part of the financial statements.

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Notes to the financial statements 31 August 2013

1. Corporate information The Association is limited by guarantee and is incorporated and domiciled in Malaysia. The registered office and principal place of business of the Association is located at No. 2, Jalan Bellamy, 50460 Kuala Lumpur.

The principal activity of the Association is the provision of a British Education in an international context. There has been no significant change in the nature of this activity during the financial year.

The number of employees in the Association employed during the year was 330 (2012: 313).

The financial statements were authorised for issue by the Board of Governors in accordance with a resolution of the Governors on 28 November 2013.

2. First-time adoption of Malaysian Financial Reporting Standards (“MFRS”)

These financial statements are the Association’s first MFRS financial statements for the year ended 31 August 2013. MFRS 1 First-Time Adoption of the Malaysian Financial Reporting Standards (“MFRS 1”) has been applied.

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For the year ended 31 August 2012, the financial statements of the Association were prepared in accordance with the Financial Reporting Standards (“FRS”) in Malaysia.

Accordingly, the Association has prepared financial statements which comply with MFRS for the year ended 31 August 2013, together with the comparative period data as at and for the year ended 31 August 2012, as described in the summary of significant accounting policies. In preparing these financial statements, the Association’s opening statement of financial position was prepared as at 1 September 2011, the Association’s date of transition to MFRS.

In preparing the financial statements, there were no principal adjustments made by the Association in restating its FRS statements of financial position as at 1 September 2011 and their previously published FRS financial statements as at and for the year ended 31 August 2012.


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies 3.1

Basis of preparation The financial statements of the Association have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting Standards (“IFRS”), and the requirements of the Companies Act, 1965 in Malaysia. These are the Association’s first financial statements prepared in accordance with MFRSs and MFRS 1 First-time Adoption of Malaysian Financial Reporting Standards has been applied.

For the periods up to and including the year ended 31 August 2012, the financial statements of the Association were prepared in accordance with Financial Reporting Standards (“FRSs”) in Malaysia.

The financial statements have been prepared on a historical cost basis except as disclosed in the accounting policies below.

The financial statements are presented in Ringgit Malaysia (RM). 3.2 Standards issued but not yet effective As at the date of authorisation of these financial statements, the following Standards, Amendments and Issues Committee (“IC”) Interpretations have been issued by the Malaysian Accounting Standards Board (“MASB”) but are not yet effective and have not been adopted by the Association: Description

Effective for annual periods beginning on or after

• Amendments to MFRS 1: First-time Adoption of Malaysian Financial Reporting Standards 1 January 2013 • Amendments to MFRS 7: Disclosures Offsetting Financial Assets and Financial Liabilities 1 January 2013 • MFRS 9: Financial Instruments 1 January 2015 • MFRS 10: Consolidated Financial Statements 1 January 2013 • MFRS 11: Joint Arrangements 1 January 2013 • MFRS 12: Disclosure of Interest in Other Entities 1 January 2013 • MFRS 13: Fair Value Measurement 1 January 2013 • Amendments to MFRS 101: Presentation of Financial Statements 1 January 2013 • MFRS 119: Employee Benefits 1 January 2013 • MFRS 127: Separate Financial Statements 1 January 2013 • MFRS 128: Investments in Associates and Joint Ventures 1 January 2013 • Amendment to MFRS 132: Financial Instruments: 1 January 2013 Presentation

23


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d) 3.2 Standards issued but not yet effective (cont’d) Effective for annual periods Description beginning on or after • Amendment to MFRS 132: Offsetting 1 January 2014 Financial Assets and Financial Liabilities • Amendment to MFRS 134: Interim Financial Reporting 1 January 2013

Adoption of the above standards and interpretations did not have effect on the financial performance or position of the Association.

Based on preliminary assessment, the Governors expect that the adoption of the standards and interpretations above will have no material impact on the financial statements in the period of initial application, except as discussed below: MFRS 9 Financial Instruments: Classification and Measurement MFRS 9 reflects the first phase of the work on the replacement of MFRS 139 Financial Instruments: Recognition and Measurement and applies to classification and measurement of financial assets and financial liabilities as defined in MFRS 139 Financial Instruments: Recognition and Measurement. The adoption of the first phase of MFRS 9 will have an effect on the classification and measurement of the Association’s financial assets. The Association will quantify the effect in conjunction with the other phases, when the final standard including all phases is issued.

24

MFRS 13 Fair Value Measurement

MFRS 13 establishes a single source of guidance under MFRS for all fair value measurements. MFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under MFRS when fair value is required or permitted.

Upon adoption of MFRS 13, the Association will take into consideration the highest and best use of certain properties in measuring the fair value of such properties. The adoption of MFRS 13 is expected to result in higher fair value of certain properties of the Association.


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d)

3.2 Standards issued but not yet effective (cont’d)

MFRS 119 Employee Benefits

The most significant change relates to the accounting for changes in defined benefit obligations and plan assets. The amendments require the recognition of changes in defined benefit obligations and in fair value of plan assets when they occur, and hence eliminate the “corridor approach” as permitted under the previous version of MFRS 119 and accelerate the recognition of past service costs. The amendments require all actuarial gains and losses to be recognised immediately through other comprehensive income in order for the net pension asset or liability recognised in the consolidated statement of financial position to reflect the full value of the plan deficit or surplus.

The amendments to MFRS 119 require retrospective application with certain exceptions. The directors anticipate that the application of the amendments to MFRS 119 may have impact on amounts reported in respect of the Association’s defined benefit plans. However, the Association is currently assessing the impact that this standard will have on the financial position and performance of the Association.

3.3 Property, plant and equipment

All items of property, plant and equipment are initially recorded at cost. Subsequent costs are included in the carrying amount of the asset or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Association and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income and expenditure account during the financial period in which they are incurred.

Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation of other property, plant and equipment is provided for on a straight-line basis over the estimated useful lives of the assets.

The estimated useful lives are as follows: Leasehold land School buildings and swimming pool Air-conditioning plant Motor vehicles Computers Office equipment Furniture and equipment Kitchen equipment Pumps and equipment Security features

99 50 8 5 3 3 3 3 5 5

years years years years years years years years years years

25


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d)

Assets under construction included in property, plant and equipment are not depreciated as these assets are not yet available for use.

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. The difference between the net disposal proceeds, if any and the net carrying amount is recognised in income and expenditure account.

26

3.3 Property, plant and equipment (cont’d)

3.4 Land use right

Land use rights are initially measured at cost. Following initial recognition, land use rights are measured at cost less accumulated amortisation and accumulated impairment losses. The land use rights are amortised over their lease terms.

3.5

Impairment of non-financial assets

An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units (“CGU”)).

In assessing value in use, the estimated future cash flows expected to be generated by the asset are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset is written down to its recoverable amount.

Impairment losses are recognised in income and expenditure account except for assets that are previously revalued where the revaluation was taken to other comprehensive income. In this case the impairment is also recognised in other comprehensive income up to the amount of any previous revaluation.

The Association assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when an annual impairment assessment for an asset is required, the Association makes an estimate of the asset’s recoverable amount.


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d)

3.5 Impairment of non-financial assets (cont’d)

An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed 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. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised previously. Such reversal is recognised in income and expenditure account unless the asset is measured at revalued amount, in which case the reversal is treated as a revaluation increase.

3.6 Financial assets

Financial assets are recognised in the statements of financial position when, and only when, the Association become a party to the contractual provisions of the financial instrument.

When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through income and expenditure account, directly attributable transaction costs.

The Association determine the classification of their financial assets at initial recognition, and the categories include financial assets at fair value through the income and expenditure account, loans and receivables, held-to-maturity investments and available-for-sale financial assets. (a) Financial assets at fair value through profit or loss

Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading or are designated as such upon initial recognition. Financial assets held for trading are derivatives (including separated embedded derivatives) or financial assets acquired principally for the purpose of selling in the near term.

Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value. Any gains or losses arising from changes in fair value are recognised in profit or loss. Net gains or net losses on financial assets at fair value through profit or loss do not include exchange differences, interest and dividend income. Exchange differences, interest and dividend income on financial assets at fair value through profit or loss are recognised separately in profit or loss as part of other losses or other income.

27


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d)

3.6 Financial assets (cont’d)

(a) Financial assets at fair value through profit or loss (cont’d)

Financial assets at fair value through profit or loss could be presented as current or non-current. Financial assets that is held primarily for trading purposes are presented as current whereas financial assets that is not held primarily for trading purposes are presented as current or non-current based on the settlement date.

(b) Loans and receivables

Financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables.

Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, and through the amortisation process.

Loans and receivables are classified as current assets, except for those having maturity dates later than 12 months after the reporting date which are classified as non-current.

3.7 Cash and cash equivalents

3.8 Inventories

28

Cash and cash equivalents comprise cash at bank and on hand, demand deposits, and short-term, highly liquid investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value. These also include bank overdrafts that form an integral part of the Association’s cash management.

Inventories which comprise uniforms, stationery and bags are stated at the lower of cost and net realisable value and is determined on a first-in first-out basis.


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d)

3.9 Provisions

Provisions are recognised when the Association has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be estimated reliably.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

3.10 Financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability.

Financial liabilities, within the scope of FRS 139, are recognised in the statement of financial position when, and only when, the Association become a party to the contractual provisions of the financial instrument. Financial liabilities are classified as either financial liabilities at fair value through income and expenditure account or other financial liabilities.

Other financial liabilities

The Association other financial liabilities include trade payables, other payables and borrowings.

Trade and other payables are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method.

Loans and borrowings are recognised initially at fair value, plus transaction costs incurred, and subsequently measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Association has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

For other financial liabilities, gains and losses are recognised in income and expenditure account when the liabilities are derecognised, and through the amortisation process.

29


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d)

3.10 Financial liabilities (cont’d)

Other financial liabilities (cont’d)

A financial liability is derecognised when the obligation under the liability is extinguished. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the 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 the respective carrying amounts is recognised in income and expenditure account.

3.11 Borrowing costs

All other borrowing costs are recognised in income and expenditure account in the period they are incurred. Borrowing costs consist of interest and other costs that the Association incurred in connection with the borrowing of funds.

3.12 Employee benefits

(a) Defined contribution plans

(b) Employee benefits

30

The Association participates in the national pension schemes as defined by the laws of the countries in which it has operations. The Association make contributions to the Employee Provident Fund in Malaysia, a defined contribution pension scheme. Contributions to defined contribution pension schemes are recognised as an expense in the period in which the related service is performed.

The Association operates an unfunded, defined benefit Retirement Benefit Scheme (“the Scheme”) for its eligible employees. The Association’s obligation under the Scheme, calculated using the Projected Unit Credit Method, is determined based on triennial actuarial computations by independent actuaries, through which the amount of benefit that employees have earned in return for their service in the current and prior years is estimated. That benefit is discounted in order to determine its present value.


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d)

3.12 Employee benefits (cont’d)

(b) Employee benefits (cont’d)

(c) Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Association recognises termination benefits as a liability or expense when it is demonstrably committed to either terminate the employment of current employees according to a detailed plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy, the measurement of termination benefits is based on the number of employees expected to accept the offer. Benefits falling due more than twelve months after the balance sheet date are discounted to present value.

3.13 Leases

Actuarial gains and losses are recognised as income or expense over the expected average remaining working lives of the participating employees when the cumulative unrecognised actuarial gains or losses for the Scheme exceed 10% of the higher of the present value of the defined benefit obligation and the fair value of plan assets. Past service costs are recognised immediately to the extent that the benefits are already vested, and otherwise are amortised on a straight-line basis over the average period until the amended benefits become vested.

Operating lease payments are recognised as an expense in income and expenditure account on a straight-line basis over the lease term. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight-line basis.

3.14 Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Association and the revenue can be reliably measured. Revenue is measured at the fair value of consideration received or receivable.

Revenue represents tuition fees received and receivable net of discount.

31


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d)

3.15 Income taxes

(a) Current taxes

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

Current taxes are recognised in income and expenditure account except to the extent that the tax relates to items recognised outside income and expenditure account, either in other comprehensive income or directly in equity.

(b) Deferred tax

Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred except: -

tax

liabilities

are

recognised

for

all

temporary

differences,

where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

- in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised except: -

32

where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and


Notes to the financial statements (cont’d) 31 August 2013

3. Summary of significant accounting policies (cont’d)

3.15 Income taxes (cont’d)

(b) Deferred tax (cont’d)

- in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside income and expenditure account is recognised outside income and expenditure account. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

3.16 Functional and presentation currency

The financial statements of the Association are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements are presented in Ringgit Malaysia (RM), which is also the Association’s functional currency.

Transactions in foreign currencies are recorded in Ringgit Malaysia at the rates of exchange ruling at the date of transaction or at contracted rates and where settlement has not taken place at the balance sheet date, at the approximate rates ruling at that date or at contracted rates, as applicable.

All exchange differences are dealt with in the income and expenditure account.

33


Notes to the financial statements (cont’d) 31 August 2013

4. Significant accounting judgements and estimates

4.1 Judgements made in applying accounting policies

There are no critical judgements made by management in the process of applying the Association’s accounting policies that have the most significant effect on the amounts recognised in the financial statements.

4.2 Key sources of estimation uncertainty

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.

(a) Useful lives of property, plant and equipment

(b) Income taxes

5.

The useful lives and residual values of the components of property, plant and equipment are also estimated based on common life expectancies and commercial factors applied in the industry. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.

Significant estimation is involved in determining the Association’s provision for income taxes. There are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. The Association recognises liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determinations are made.

Revenue

Revenue represents tuition fees received and receivable net of discount. 2013 2012 RM RM 75,678,689 67,732,286 Tuition fees (5,792,971) (4,983,646) Less: Discounts 69,885,718 62,748,640

34


Notes to the financial statements (cont’d) 31 August 2013

6. Other income

2012 2013 RM RM Other operating income comprises: 7,220 15,720 Entrance fees 6,825,000 5,891,000 Enrolment fees 576,976 529,866 Application fees 1,306,233 409,146 Interest income 545,311 918,400 Forfeited deposits 36,343 Gain on sale of assets 1,052,761 Dividend income 119,397 Fair value adjustment of short term investment 151,861 88,393 Penalty on tuition fees 95,556 212,739 Sundry receipts 9,508,157 9,273,765 7. Surplus before taxation 2013

2012

RM RM This is arrived at after charging: 30,000 36,040 Auditors’ remuneration 5,828,469 5,028,634 Depreciation of property, plant and equipment (Note 10) 236,035 Interest expense on term loan 49,354,116 52,753,341 Employee benefit expenses (Note 8) 82,100 83,000 Rental of land (36,343) (Gain)/loss on disposal of property, plant and equipment 157 8. Employee benefits expense 2012 2013 RM RM 33,085,896 35,599,390 Salaries 81,594 86,021 Social security costs 5,344,291 5,725,351 Pension costs - defined contributions plans 112,080 116,165 Pension cost - defined benefit plan 10,730,255 11,226,414 Other staff related expenses 49,354,116 52,753,341 Included in employee benefits expense of the Association are key management personnels’ remuneration amounting to RM3,669,077 (2012: RM3,026,136).

35


Notes to the financial statements (cont’d) 31 August 2013

9. Taxation

2013 RM Malaysian income tax 94,703 Tax expense for the year (14,865) (Over)/under provision in prior years 79,838

2012 RM

327,946 24,982 352,928

The Association was granted income tax exemption pursuant to Income Tax Exemption (No. 20) Order 2006, of the Income Tax Act, 1967. Accordingly, the Association is exempted from the income tax in respect of business income arising from the provisions of education services. Provision for taxation during the year is in respect of tax on interest income. The Association’s tax payable is based on the scale tax rate, pursuant to Section 53 of Income Tax Act, 1967. A reconciliation of income tax expense applicable to surplus before taxation at the statutory income tax rate to income tax expense at the effective income tax rate of the Association is as follows:

2013 RM

2012 RM

8,854,234 5,158,853 Surplus before taxation Taxation at Malaysian statutory tax rate of 26% 2,302,101 1,341,302 (2012: 26%) (11,675) (11,675) Effects of scaled tax rates 1,316,561 1,528,081 Expenses not deductible for tax purposes (2,956,658) (1,738,717) Income not subject to tax Deferred tax assets not recognised Underprovision of deferred tax in prior year Utilisation of previously unrecognised unabsorbed (791,045) (555,626) capital allowances (14,865) 24,982 (Over)/under provision of income tax in prior years 79,838 352,928 Tax expense for the year

36


Notes to the financial statements

(cont’d)

31 August 2013

10. Property, plant and equipment Long term Airleasehold conditioning land plant

Motor vehicles

Computers hardware and software

RM

RM

RM

RM

School furniture and equipment

Swimming pool

Other equipment

Security features

Capital work-in progress

Total

RM

RM

RM

RM

RM

RM

Freehold land

School buildings

RM

RM

1,231,436 1,231,436 1,231,436

51,869,810 6,009,792 167,210 58,046,812 4,967,248 (49,000) 62,965,060

16,782,323 16,782,323 16,782,323

2,947,283 177,520 (80,430) 3,044,373 131,130 (212,952) 2,962,551

966,595 88,778 (112,910) 942,463 70,000 (83,150) 929,313

12,079,102 2,178,082 (420) (447,326) 13,809,438 1,718,422 (407,906) (13,934) 15,106,020

10,938,863 2,066,799 (29,588) 447,326 13,423,400 1,518,535 (9,993) (78,695) 14,853,247

361,065 361,065 361,065

827,059 1,199 828,258 4,827 833,085

920,659 920,659 16,500 937,159

-

13,620,589 1,047,542 14,668,131 1,166,629 (980) 15,833,780

2,339,976 174,165 2,514,141 174,166 2,688,307

2,324,239 133,717 (80,430) 2,377,526 147,640 (212,952) 2,312,214

726,828 100,555 (112,910) 714,473 84,078 (83,150) 715,401

9,335,352 2,633,304 (140) (421,338) 11,547,178 2,075,288 (407,906) (3,640) 13,210,920

9,913,223 1,709,382 (28,199) 421,338 12,015,744 1,410,309 (9,033) (53,865) 13,363,155

314,713 1,030 315,743 1,030 316,773

753,643 28,774 782,417 24,679 807,096

920,659 920,659 3,300 923,959

-

40,249,222 5,828,469 (221,679) 45,856,012 5,087,119 (713,041) (58,485) 50,171,605

At 31 August 2012

1,231,436

43,378,681

14,268,182

666,847

227,990

2,262,260

1,407,656

45,322

45,841

-

36,109

63,570,324

At 31 August 2013

1,231,436

47,131,280

14,094,016

650,337

213,912

1,895,100

1,490,092

44,292

25,989

13,200

351,610

67,141,264

Cost At 1 September 2011 Additions Disposals Transfer At 31 August 2012 Additions Disposals Transfer At 31 August 2013

167,210 99,091,405 36,109 10,558,279 (223,348) (167,210) 36,109 109,426,336 315,501 8,742,163 (714,001) (141,629) 351,610 117,312,869

Accumulated depreciation At 1 September 2011 Charge for the year (Note 7) Disposals Transfer

At 31 August 2012 Charge for the year (Note 7) Disposals Transfer

At 31 August 2013 Net carrying amount


Notes to the financial statements (cont’d) 31 August 2013

10. Property, plant and equipment (cont’d)

Other equipment comprise pumps and kitchen equipment at net book value amounting to RM22,702 (2012: RM45,159) and RM3,287 (2012: RM682) respectively.

11. Inventories

Inventories which comprise uniforms, stationery and bags are stated at the lower of cost and net realisable value and is determined on a first-in first-out basis.

12. Other receivables

Receivables Advances to teachers Sundry deposits Total receivables Total receivables Add: Cash and cash equivalents (Note 14) Total receivables

2013

2012

RM

RM

1,365,106 591,150 631,379 2,587,635

699,779 547,600 534,981 1,782,360

2,587,635 4,924,284 7,511,919

1,782,360 44,697,685 46,480,045

All school fees are due on or before the first day of each term.

The Association has no significant concentration of credit risk that may arise from exposures to a single debtor or to groups of debtors.

13. Short term investments

38

2013

2012

RM

RM

Investment in Unit Trust with licensed 54,448,411 institution in Malaysia 119,397 Add: Fair value adjustment 54,567,808

-

Financial assets are classified as financial assets at fair value through profit or loss.


Notes to the financial statements (cont’d) 31 August 2013

14. Cash and cash equivalents

Cash on hand and at banks Short term deposits with licensed banks Cash and bank balances Less: Fixed deposit pledged Cash and cash equivalents

2013

2012

RM

RM

2,446,351 2,758,933 5,205,284 (281,000) 4,924,284

5,197,685 39,781,000 44,978,685 (281,000) 44,697,685

A fixed deposit of RM281,000 (2012: RM281,000) has been pledged to a bank for certain bank facilities. The deposits placed with licensed banks bear interest rates ranging from 2.75% to 3.10% (2012: 2.25% to 3.10%) per annum. Average fixed deposits placement is from 30 to 180 (2012: 30 to 180) days.

15. Other payables

2013

2012

RM

RM

School fees in advance 27,250,178 Accruals 698,903 Sundry payables 6,955,241 Total payables 34,904,322 Total payables 34,904,322 Add: Loans and borrowings (Note 17) 7,368,232 Total financial liabilities carried at amortised costs 42,272,554

21,239,508 1,026,471 8,972,071 31,238,050

31,238,050 8,540,466 39,778,516

The normal credit terms granted to the Association range from 30 to 90 (2012: 30 to 90) days.

39


Notes to the financial statements (cont’d) 31 August 2013

16. Retirement benefits

The amounts recognised in the balance sheet are determined as follows: 2013 RM Present value of unfunded defined benefits 823,184 obligations Analysed as: 35,847 Current Non-current: 26,490 Later than 1 year but not later than 2 years 161,540 Later than 2 years but not later than 5 years 599,307 Later than 5 years 787,337 823,184 The amounts recognised in the income statements are as follows: 2013 RM 74,094 Current service cost 42,071 Interest cost 116,165 Total, included in employee benefits expense Movements in the net liability in the current year were as follows: 2013 RM 718,768 At 1 January 116,165 Provision for the year (11,749) Benefits paid 823,184 At 31 December Principal actuarial assumptions used: 5.50% Discount rate 6.00% Expected rate of salary increases

40

2012 RM 718,768

26,169

21,944 173,495 497,160 692,599 718,768

2012 RM 67,301 44,779 112,080

2012 RM 645,860 112,080 (39,172) 718,768

6.75% 5.00%


Notes to the financial statements (cont’d) 31 August 2013

17. Loans and borrowings 2013 Short term borrowings Unsecured: Parents’ loans Total: Parents’ loan Total borrowings: Parents’ loans Analysed as: Due within 12 months

2012

RM

RM

7,368,232

8,540,466

7,368,232

8,540,466

2013

2012

RM

RM

7,368,232

8,540,466

7,368,232

8,540,466

Parents’ loans which are interest free and repayable on demand when the child leaves the school are obtained as follows: (a) RM10,000 per child for new intakes from September 1995 till April 1998.

(b) RM8,000 per child for new intakes from May 1998 till August 2008. (c) RM5,000 per child for new intakes from September 2008 till August 2013.

18. Members accumulated funds Building Fund Debenture Redemption Reserve General Reserve Total members accumulated funds

2013

2012

RM

RM

53,554,608 155,700 247,115 53,957,423

48,590,473 155,700 247,115 48,993,288

Building Fund contributions are for the development and acquisition of the schools’ facilities which are levied on new and existing students and are non-refundable.

The debenture redemption reserve was created on redemption of loan debentures issued to fund the construction of the school building in 1955.

41


Notes to the financial statements (cont’d) 31 August 2013

19. Parents’ deposits Balance as at 1 September Additions during the year Refunds during the year Balance as at 31 August

2013

2012

RM

RM

20,430,729 8,887,463 (5,707,146) 23,611,046

16,179,484 9,674,596 (5,423,351) 20,430,729

20. Operating lease arrangement - Association as lessee

2013 2012 RM RM Future minimum rental payments: Not later than 1 year 88,800 49,100 Later than 1 year and not later than 2 years 54,900 In 2007, the Association entered into a non-cancellable operating lease agreement for the primary campus car parks. The leases were for tenures of 1 to 2 years.

During the previous financial year, the Association has renewed these agreements and these agreements are all cancellable operating lease agreements for the primary campus car parks.

21. Related party disclosures

(a) Significant related party transactions There were no related party transaction since previous financial years. (b) Compensation of key management personnel The remuneration of key management personnel during the year was as follows: 2013 2012 RM RM

42

Wages and salaries Defined contribution plan Benefit-in-kind

2,830,443 403,573 435,061 3,669,077

2,324,626 337,804 363,706 3,026,136


Notes to the financial statements (cont’d) 31 August 2013

22. Financial risk management objectives and policies

The Association is exposed to a variety of financial risks, including interest rate, credit, liquidity and foreign exchange risks. The Association’s overall financial risk management objective is to ensure that the Association creates value for its members while minimising the potential adverse effects on the performance of the Association.

The Association operates within clearly defined guidelines that are approved by the Council and the Association’s policy is not to engage in speculative transactions.

The Board of Governors reviews and agrees policies and procedures for the management of these risks, which are executed by the Director of Finance.

(a) Interest rate risk

The Association’s primary interest rate risk relates to interest-bearing debts. The investments in financial assets are mainly short term in nature and they are not held for speculative purposes but have been mostly placed in fixed deposits.

The Association manages its interest rate exposure by maintaining a fixed rate borrowings. The Association actively reviews its debt portfolio, taking into account the investment holding period and nature of its assets.

The information on maturity dates and effective interest rates of financial assets and liabilities are disclosed in Note 13, Note 14 and Note 17 to the financial statements.

43


Notes to the financial statements (cont’d) 31 August 2013

22. Financial risk management objectives and policies (cont’d)

(b) Liquidity risk and cash flow risk

Liquidity risk is the risk that the Association will encounter difficulty in meeting financial obligations due to shortage of funds. The Association’s exposure to liquidity risk arises principally from its various payables, loans and borrowings.

The Association maintains a level of cash and cash equivalents and bank facilities deemed adequate by the management to ensure as far as possible, that it will have sufficient liquidity to meet its liability when they fall due.

Analysis of financial instruments by remaining contractual maturities The table below summarises the maturity profile of the Association’s liabilities at the reporting date based on contractual undiscounted repayment obligations. 2013 On demand or within One to one year five years Total Financial liabilities Other payables (Note 15) 34,904,322 34,904,322 Loans and borrowings 7,368,232 7,368,232 Total undiscounted financial liabilities 42,272,554 42,272,554 (c) Credit risk Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Association’s exposure to credit risk arises primarily from trade and other receivables. For other financial assets such as cash and bank balances, the Association minimise credit risk by dealing with high credit rating counterparties.

44

The Association seeks to invest cash assets safely and profitably. The Association also seeks to control credit risk by setting counterparty limits, obtaining bank guarantees where appropriate; and ensuring that sale of products and services are made to customers with an appropriate credit history, and monitoring customers’ financial standing through periodic review and credit checks at point of sales. The Association considers the risk of material loss in the event of non-performance by a financial counterparty to be unlikely.

At 31 August 2013, the maximum exposure to credit risk for the Association is the carrying amount of each financial asset.


Notes to the financial statements (cont’d) 31 August 2013

22. Financial risk management objectives and policies (cont’d)

(d) Fair values of financial instruments

Determination of fair value

Financial instruments that are not carried at fair value and whose carrying amount are reasonable approximation of fair value.

The following are classes of financial instruments that are not carried at fair value of whose carrying amounts are reasonable approximation of fair value:

Other receivables Loans and borrowings (current) Other payables

Note 12 17 15

The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values due to their short-term nature.

The carrying amount of the current portion of borrowings are reasonable approximations of fair values due to the insignificant impact on discounting.

The fair value of current loans and borrowings are estimated by discounting expected future cash flows at market incremental lending rate for similar types of lending or borrowing arrangements at the reporting date.

45


Notes to the financial statements (cont’d) 31 August 2013

23. Capital Management

The primary objective of the Association’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise members value.

Note

2013

2012

RM

RM

17 7,368,232 Loans and borrowings 19 23,611,046 Parent deposits 15 34,904,322 Other payables Less: 13 (54,567,808) Short term investment 14 (5,205,284) Cash and bank balances 6,110,508 Net debt Equity attributable to members of the 63,698,135 Association 69,808,643 Capital and net debts 10% Gearing ratio

8,540,466 20,430,729 31,238,050

46

(44,978,685) 15,230,560

49,959,604 65,190,164 30%

The Association manages its capital structure and makes adjustments to it, in light of changes in economic conditions. No changes were made in the objectives, policies or processes during the years ended 31 August 2013 and 31 August 2012.


Statement of comprehensive income

for the year ended 31 August 2013

2013

2012

RM

RM

Income Net tuition fees 69,885,718 Application and entrance fees 545,586 Enrolment fees 5,891,000 76,322,304 Other income 2,837,179 79,159,483 Expenditure Salaries and other related cost 52,753,341 Professional development 604,610 Recruitment expenses 426,097 Repair and maintenance 1,193,234 Insurance premium 274,804 Electricity, water and telephone 1,973,220 505,209 Quit rent and assessment 630,897 School van expenses and other overheads 739,558 General administration expenses 5,028,634 Depreciation Loss on disposal of property, plant and equipment 45,318 Financial cost 481,728 Marketing expenses 1,161,369 IT expenses 3,012,548 Teaching materials Expedition expenses 1,474,682 70,305,249 Surplus before taxation 8,854,234 (79,838) Taxation 8,774,396 Surplus for the year

62,748,640 584,196 6,825,000 70,157,836 2,098,961 72,256,797

49,354,116 429,660 269,355 1,730,697 255,590 1,972,386 499,572 628,548 356,965 5,828,469 157 313,461 235,186 1,299,610 2,536,537 1,387,635 67,097,944 5,158,853 (352,928) 4,805,925

47


Key Statistical Information

48


Parent Teacher Association’s financial statements Balance Sheet as at 31 August 2013

Note

Current Assets

2013

2012

RM

RM

Stocks PTA Goods

2

39,304

10,988

Cash at Bank

29,855

145,115

Cash in Hand

178

2,195

Trade Debtors

511

3

69,848

528 158,826

Current Liabilities

4

5,036

-

TOTAL

64,812

158,826

Represented By Accumulated Funds Donations to School

5

158,826 (110,000)

165,260 (33,010)

Excess of Income over Expenditure

15,986

26,576

64,812

158,826

49


Parent Teacher Association’s financial statements Income and Expenditure Account for the year ended 31 August 2013

2013

2012

RM

RM

Income

Functions & Xmas Bazaar Proceeds

Summer Fair Stalls

-

34,056

Summer Fair Sponsorship

-

9,000

PTA Sales

38,072

12,153

Income - Misc

-

2,396

44,998

83,070

46,999

104,604

Expenditure

Administration / Misc Expenses

Functions & Xmas Bazaar Expenses

Summer Fair Expenses

PTA Purchases

Charity Donations

Bank Charges

2,396

1,942

21,791

23,081

-

16,755

39,658

16,755

3,222

19,495

17

-

67,084

78,028

15,986

26,576

Surplus

50


Parent Teacher Association’s financial statements Notes to the Accounts

1

Accounting Policies

a) Basis of accounting The Accounts were prepared under the historic cost convention.

2

Stock

Stocks were valued at the lower of cost and net realisable value. 2013 RM PTA stocks 39,304 3 Trade Debtors RM

2012 RM 10,988

50% of new comers coffee morning (3rd term) that payable by the school 69

Sales of PTA Goods by the School’s uniform shop 442 Total Trade Debtors 511

4 Liabilities RM

Balance of Committed funds to school for Eco Garden at JB 5,036 Total Liabilities 5,036

51


Parent Teacher Association’s financial statements Notes to the Accounts (cont’d)

5

Donations to the School

The details of the donations paid and committed to the school were as follows: RM Committed funds for Eco Garden at JB 10,000 Details of funds given to Eco Garden till date Advanced Solar Voltaic Sdn Bhd - 2,189 Wall fan for Eco Garden Herb Plants for Eco Garden 588 Kerry Stansfield - Flat poly board and corrugated 108 poly board for Eco Garden (Inv 156924) Kerry Stansfield - Plant for Eco Garden (CS 20458) 195 Kerry Stansfield - Tree and plant for Eco Garden 180 (CS 20459 & 20460) Kerry Stansfield - Beans and Plants for Eco Garden 194 Kerry Stansfield - Male Guppies and guppy food 15 for Eco Garden Kerry Stansfield - Used plastic drum for Eco Garden 35 Kerry Stansfield - Double sided tape, Silicon, 75 Syphon pump, tie plant for Eco Garden Kerry Stansfield - Bamboo for Eco Garden 150 Kerry Stansfield - Plants and equipment for 804 Eco Garden Kerry Stansfield - Pots and gardening equipment 195 for Eco Garden See Wide Letrik - Frieland Sensor for Eco Garden 70 Kerry Stansfield - Soil 64 Kerry Stansfield - Soil, elbow Connector, 102 Dripper for Eco Garden

Total funds given till date for Eco Garden

4,964

Funds remaining for Eco Garden

5,036

52

Committed funds for sponsorship of wireless stopwatch Timing system (Dolphin) for both the campus pools

100,000

Total donations to School

110,000


Parent Teacher Association’s financial statements Notes to the Accounts (cont’d)

6

Charitable Donations

The details of the donations given to charity were as follows:

To Make A Wish Malaysia for their Charity Dinner held

RM 2,500

during Christmas

To Make A Wish Malaysia from collections of Montpelier

at Christmas Bazaar

722

Total charity donations

3,222

53


64th annual report 31 august 2013  
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