SINDA Financial Statements 2014

Singapore Indian Development Association Reg No UEN S90SS0098L Charity Registration Number: 0909 Financial Statements Year ended 31 December 2014

Singapore Indian Development Association General Information Year ended 31 December 2014

General Information Patron – Prime Minister Lee Hsien Loong Life Trustees Mr Tharman Shanmugaratnam Professor S Jayakumar Mr S Dhanabalan Mr S Chandra Das Mr J Y Pillay Mr Sat Pal Khattar Mr K Shanmugam Dr N Varaprasad

Chairman

Term Trustees Ms Indranee T Rajah Mr M Rajaram Mr Ravi Menon Mr Inderjit Singh Mr V Shankar Mr Gautam Banerjee Mr Girija Pande Mr R Jayachandran Mr Ravinder Singh Justice Judith Prakash Mr K Kesavapany

Advisors Dr Vivian Balakrishnan Mr S Iswaran Mr Hri Kumar Nair Mr Vikram Nair

Audit Review Committee Members Mr Gautam Banerjee Mr Shabbir Hassanbhai Mr Sarjit Singh Mr K V Rao Mr Subramaniam Iyer Mr Mohan Pillay

Chairman

1

Singapore Indian Development Association General Information Year ended 31 December 2014

Executive Committee Members Ms Indranee T Rajah Mr Viswa Sadasivan Mr Shabbir Hassanbhai Mr Sarjit Singh Mr Shekaran Krishnan Mr Subramaniam Iyer Mr V P Jothi Mr R Rajaram Mr Puvan Ariaratnam Mr P Thirunal Karasu Dr Joshua V M Kuma Mr R Logapreyan Mr Raj Mohamed Mr K V Rao

President Vice-President Vice-President Secretary Treasurer Member Member Member Member Member Member Member Member Member

Chief Executive Officer Mr Kumaran Barathan

Appointed on 1 July 2014

Address No. 1 Beatty Road Singapore 209943

Auditors KPMG LLP Partner-in-charge: Jeya Poh Wan s/o K. Suppiah (since the financial year ended 31 December 2011)

2

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Statement of financial position As at 31 December 2014 Note

Non-current assets Plant and equipment Current assets Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donations receivable – Singapore Totalisator Board Deposits, prepayments, tuition fee receivables and others Financial assets – investments Cash and cash equivalents

2014 S$

2013 S$

4

969,748

979,017

5

3,400,000

1,700,000

721,069 1,000,000

684,688 875,000

6 7 8

1,320,972 21,286,522 4,814,562 32,543,125 33,512,873

815,316 21,725,697 4,928,787 30,729,488 31,708,505

9

27,452,339 27,452,339

26,160,458 26,160,458

44,562

–

35,509 2,288,847 3,691,616 6,015,972 6,060,534 33,512,873

– 1,341,582 4,206,465 5,548,047 5,548,047 31,708,505

Total assets Representing: Funds Unrestricted funds Accumulated funds Total funds Non-current liabilities Deferred income – government grants Current liabilities Deferred income – government grants Other payables and accrued expenses Unutilised specific grants/donations Total liabilities Total liabilities and funds

10 11

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

FS1

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Statement of financial activities Year ended 31 December 2014 Note

Income Income from generated funds Voluntary income: Donation – Central Provident Fund (CPF) contributions Donation sponsorships Donation from Singapore Totalisator Board (STB) Income from School Pocket Money Fund (SPMF) Other donations Finance income: Dividend income Interest income: - debt securities - unit trust fixed income - fixed deposits and bank balances Other income: Miscellaneous income Gain on disposal of investments Total income from generated funds

2014 Accumulated funds Operations Investments Total S$ S$ S$

2013 Accumulated funds Operations Investments Total S$ S$ S$

8,566,358 1,614,274 625,000 109,215 1,270,686

– – – – –

8,566,358 1,614,274 625,000 109,215 1,270,686

8,110,053 2,147,966 500,000 115,515 388,748

– – – – –

8,110,053 2,147,966 500,000 115,515 388,748

–

33,635

33,635

–

560,919

560,919

– – –

– 15,396 4,976

– 15,396 4,976

– – –

125,954 – 3,005

125,954 – 3,005

41,881 – 12,227,414

– – 54,007

41,881 – 12,281,421

118,564 – 11,380,846

– 676,744 1,366,622

118,564 676,744 12,747,468

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

FS2

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Statement of financial activities (continued) Year ended 31 December 2014 Note

Income from charitable activities Income from approved projects: Tuition programme fees Government grants: Government Subvention Ministry of Culture, Community and Youth (MCCY): - Temporary Occupation Licence (TOL) Grant - Additional Top-up Grant Family Service Centre (FSC) Funding: - Ministry of Social and Family Development (MSF) - Singapore Totalisator Board (STB) - National Council of Social Services (NCSS) - Other FSC Funding Temasek Care Funding Voluntary Welfare Organisation (VWO) Charities Capability Funding (VCF) by MSF Care and Share Funding Other government grants Other grant: Singapore Press Holdings (SPH) Newspaper Project Funding Total income from charitable activities Total income

2014 Accumulated funds Operations Investments Total S$ S$ S$

2013 Accumulated funds Operations Investments Total S$ S$ S$

627,531

–

627,531

714,292

–

714,292

5

3,400,000

–

3,400,000

1,700,000

–

1,700,000

12

461,129 1,273,472

– –

461,129 1,273,472

433,581 526,528

– –

433,581 526,528

586,040 452,281 115,970 96,748 23,434

– – – – –

586,040 452,281 115,970 96,748 23,434

665,987 493,988 160,558 126,043 75,788

– – – –

665,987 493,988 160,558 126,043 75,788

– 870,876 295,037

– – –

– 870,876 295,037

21,420 – 136,246

– – –

21,420 – 136,246

66,495 8,269,013 20,496,427

– – 54,007

66,495 8,269,013 20,550,434

63,730 5,118,161 16,499,007

– – 1,366,622

63,730 5,118,161 17,865,629

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

FS3

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Statement of financial activities (continued) Year ended 31 December 2014 Note

Expenditures incurred on charitable activities Cost of generating funds (i) Cost of generating voluntary income: CPF agency fees (ii) Charitable activities: Education programmes Family services Youth development programmes Parent and children programmes Community engagement, volunteer management and donor engagement unit Publicity and marketing expenses (iii) Administrative and governance costs (iv) Finance costs: Fair value loss on investments Exchange loss (v) Other costs: Loss on disposal of investments Total expenditures Net income/(expenditures) for the year

2014 Accumulated funds Operations Investments Total S$ S$ S$

2013 Accumulated funds Operations Investments Total S$ S$ S$

(133,763)

–

(133,763)

(128,393)

–

(128,393)

12 12 12 12

(9,209,031) (2,953,099) (1,475,312) (1,305,546)

– – – –

(9,209,031) (2,953,099) (1,475,312) (1,305,546)

(9,615,490) (2,449,406) (1,237,232) (1,563,170)

– – – –

(9,615,490) (2,449,406) (1,237,232) (1,563,170)

12 12

(1,310,679) (371,020)

– –

(1,310,679) (371,020)

(947,498) (512,223)

– –

(947,498) (512,223)

12

(2,214,616)

–

(2,214,616)

(1,771,801)

–

(1,771,801)

– – – (18,973,066) 1,523,361

(222,151) (36,420)

(26,916) (26,916) (285,487) (19,258,553) (231,480)

– –

(222,151) (36,420)

– (18,225,213)

1,291,881

(1,726,206)

(179,408) (53,200)

(179,408) (53,200)

– – (232,608) (18,457,821) 1,134,014

(592,192)

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

FS4

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Statement of changes in funds Year ended 31 December 2014 Accumulated funds, representing total unrestricted funds S$ At 1 January 2013

26,752,650

Total comprehensive expenditure for the year Net expenditures for the year, representing total comprehensive expenditure for the year At 31 December 2013

(592,192) 26,160,458

At 1 January 2014

26,160,458

Total comprehensive income for the year Net income for the year, representing total comprehensive income for the year At 31 December 2014

1,291,881 27,452,339

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

FS5

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Statement of cash flows Year ended 31 December 2014 Note Cash flows from operating activities Net income/(expenditures) for the year Adjustments for: Dividend income Loss/(gain) on disposal of investments Fair value loss on investments Exchange loss Depreciation Write-off of plant and equipment Interest income: - debt securities - unit trust fixed income - fixed deposits and bank balances

1,291,881

4

Changes in: - donations, grants and subventions receivables - deposits, prepayments and other receivables - other payables, accrued expenses and unutilised grants - deferred revenue Net cash from/(used in) operating activities Cash flows from investing activities Purchase of plant and equipment Purchase of investments Proceeds from sale of investments Interest received: - debt securities - unit trust fixed income - fixed deposits and bank balances Dividend received Net cash (used in)/from investing activities Cash flows from financing activities Fixed deposits pledged Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December

2014 S$

8

2013 S$ (592,192)

(33,635) 26,916 222,151 36,420 424,230 –

(560,919) (676,744) 179,408 53,200 454,405 3,723

– (15,396) (4,976) 1,947,591

(125,954) – (3,005) (1,268,078)

(1,861,381) (505,656) 432,416 80,071 93,041

(525,866) (261,527) (731,971) – (2,787,442)

(414,961) (19,903,496) 5,302,617

(309,341) (8,909,550) 26,218,278

– 15,396 4,976 33,635 (14,961,833)

79,765 – 3,005 560,919 17,643,076

(5,000) (5,000)

– –

(14,873,792) 19,943,199 5,069,407

14,855,634 5,087,565 19,943,199

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

FS6

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Notes to the financial statements These notes form an integral part of the financial statements.

The financial statements were authorised for issue by the Executive Committee (“Management”) on 10 April 2015.

1

Domicile and activities Singapore Indian Development Association (the “Association”) is a society registered with the Registrar of Societies under the Societies Act, Chapter 311. Its registered office is located at No. 1 Beatty Road, Singapore 209943.

The Association’s Vision and Mission includes the following: Vision To build a strong and vibrant Singaporean Indian community together.

Mission To build a well-educated, resilient and confident community of Indians that stand together with the other communities in contributing to the progress of multi-racial Singapore. In order to achieve its vision and mission the Association has articulated four Strategic Thrusts as follows: i) ii) iii) iv)

Maximising educational opportunities for all students; Engaging parents to play an active role in their children’s lives; Inspiring youths towards greater achievement; and Forging a stronger relationship with community partners.

The Association runs a range of programmes, services and initiatives aligned to its four Strategic Thrusts.

The Association is registered as a charity under the Charities Act, Chapter 37 and it has been granted status as an Institution of Public Character (IPC) under the Charities Act for a period of 5 years, up to 15 December 2016.

2

Basis of preparation

2.1

Statement of compliance The financial statements are prepared in accordance with Singapore Financial Reporting Standards (FRS).

2.2

Basis of measurement The financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position:  Financial assets – investments

FS7

Singapore Indian Development Association Financial statements Year ended 31 December 2014

2.3

Functional and presentation currency The financial statements are presented in Singapore dollars (S$) which is the Association’s functional currency.

2.4

Use of estimates and judgements The preparation of the financial statements in conformity with FRS requires management to make judgements, 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 estimates are revised and in any future periods affected.

Information about assumptions and estimation uncertainty that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:  Note 18 – valuation of financial instruments Measurement of fair values A number of the Association’s accounting policies and disclosures require the measurement of fair values for financial assets and liabilities.

The Association has an established control framework with respect to the measurement of fair values. This includes the Investment Committee that has overall responsibility for all significant fair value measurements and reports directly to the Board of Trustees.

Third party confirmations are used to ascertain fair values of investments in financial instruments. The Investment Committee assesses and documents the evidence obtained from the third party to support the conclusion that such valuations meet the requirements of FRS, including the level in the fair value hierarchy in which such valuations should be classified.

Significant valuation issues are reported to the Association’s Audit Committee.

When measuring the fair value of an asset or liability, the Association uses market observable data as far as possible. Fair values are categorised into different levels in the fair value hierarchy based on the inputs used in the valuation techniques as explained in note 18.

Other than the measurement of fair values, management is of the opinion that there is no other instance of application of judgement which is expected to have a significant effect on the amounts recognised in the financial statements.

FS8

Singapore Indian Development Association Financial statements Year ended 31 December 2014

2.5

Changes in accounting policies Offsetting of financial assets and financial liabilities Under the Amendments to FRS 32 Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities, to qualify for offsetting, the right to set off a financial asset and a financial liability must not be contingent on a future event and must be enforceable both in the normal course of business and in default, insolvency or bankruptcy of the entity and all counterparties.

There is no financial impact to the Association’s statement of financial position arising from the adoption of the Amendments to FRS 32.

3

Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

3.1

Foreign currency transactions Transactions in foreign currencies are translated to the Association’s functional currency at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising from retranslation are recognised in income or expenditure.

3.2

Plant and equipment Recognition and measurement Items of plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (major components) of plant and equipment.

FS9

Singapore Indian Development Association Financial statements Year ended 31 December 2014

The gain or loss on disposal of an item of plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in income or expenditure.

Subsequent costs The cost of replacing a component of an item of plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Association and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of plant and equipment are recognised in income or expenditure as incurred.

Depreciation Depreciation is based on the cost of an asset, less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately.

Depreciation is recognised as an expense in income or expenditure on a straight-line basis over the estimated useful lives of each component of an item of plant and equipment.

Depreciation is recognised from the date that the plant and equipment are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use.

The estimated useful lives for the current and comparative years are as follows:    

Computer equipment Furniture and fittings Office equipment Office renovation

3 years 5 years 5 years 3 years

Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if appropriate.

3.3

Impairment Non-derivative financial assets A financial asset not carried at fair value through income or expenditure is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

FS10

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Association on terms that the Association would not consider otherwise, indications that a debtor will enter bankruptcy, adverse changes in the payment status of borrowers or issuers in the Association, economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.

Loans and receivables The Association considers evidence of impairment for loans and receivables at both a specific asset and collective level. All individually significant loans and receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Loans and receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics.

In assessing collective impairment, the Association uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or lesser than suggested by historical trends.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in income or expenditure and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognised. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through income or expenditure.

Non-financial assets The carrying amounts of the Association’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

3.4

Financial instruments Non-derivative financial assets The Association initially recognises loans and receivables on the date that they are originated.

All other financial assets (including assets designated at fair value through income or expenditure) are recognised initially on the trade date, which is at the date that the Association becomes a party to the contractual provisions of the instrument.

FS11

Singapore Indian Development Association Financial statements Year ended 31 December 2014

The Association derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in transferred financial assets that is created or retained by the Association is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Association has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Association classifies non-derivative financial assets into financial assets at fair value through income or expenditure, and loans and receivables.

Financial assets at fair value through income or expenditure A financial asset is classified at fair value through income or expenditure if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated as fair value through income or expenditure if the Association manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Association’s documented risk management or investment strategy. Attributable transaction costs are recognised in income or expenditure as incurred. Financial assets at fair value through income or expenditure are measured at fair value, and changes therein, which takes into account any dividend income, are recognised in income or expenditure.

Financial assets classified as held for trading comprise funds and unit trusts actively managed by appointed third party investment managers and reviewed by the Association’s Investment Committee to address short-term liquidity needs.

Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.

Loans and receivables comprise Government Subvention, donations, other receivables and cash and cash equivalents. Cash and cash equivalents comprise of bank balances, fixed deposits and cash at bank in investment accounts.

Non-derivative financial liabilities Financial liabilities are recognised initially on the trade date at which the Association becomes a party to the contractual provisions of the instrument.

The Association derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.

FS12

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Association has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Association classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.

Other financial liabilities comprise other payables and accrued expenses, and unutilised specific grants/donations.

3.5

Provisions A provision is recognised if, as a result of a past event, the Association has a present legal or constructive obligation that can be estimated reliably, and, it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

3.6

Employee benefits Defined contribution plan A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in income or expenditure in the periods during which related services are rendered by employees.

Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus if the Association has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

3.7

Income Donations from the Central Provident Fund Scheme and the Singapore Totalisator Board, which are probable for collection, are recognised on an accrual basis. All other donations are recognised on a receipt basis.

Tuition programme fees income is recognised on an accrual basis.

Grants for specific purposes are recognised to the extent the related expenditure has been incurred and the grant is receivable.

FS13

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Government Subvention and grants, which are probable for collection, are recognised on an accrual basis.

3.8

Expenditures incurred on charitable activities Expenditures incurred on charitable activities comprise direct expenditure including direct staff costs attributable to the activities. In addition, it also includes support costs (costs relating to central functions) and other costs that have been allocated on a basis consistent with the use of the resources.

Administrative and governance costs Administrative and governance costs comprise all costs attributable to the general running of the Association, in providing the governance infrastructure and in ensuring public accountability.

3.9

Finance income and finance costs Finance income comprises interest income on funds invested, dividend income, and fair value gains on financial assets at fair value through income or expenditure. Interest income is recognised as it accrues in income or expenditure, using the effective interest method. Dividend income is recognised in income or expenditure on the date that the Association’s right to receive payment is established.

Finance costs comprise fair value losses on financial assets at fair value through income or expenditure, and impairment losses recognised on financial assets (other than trade receivable).

Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.

3.10

Operating leases When the Association is a lessee of an operating lease Where the Association has the use of assets under operating leases, payments made under the leases are recognised in income or expenditure on a straight-line basis over the term of the lease.

Lease incentives received are recognised in the income or expenditure as an integral part of the total operating expenses.

3.11

Funds of the Association Unrestricted funds Unrestricted funds which are represented by Accumulated funds comprise the general operating and investment funds. These funds are available for use at the discretion of the management in furtherance of the general objectives of the Association.

3.12

Government grants Government grants related to maintenance of plant and equipments are recognised initially as deferred income at fair value when there is reasonable assurance that they will be received and the Association will comply with the conditions associated with the grant. These grants are then

FS14

Singapore Indian Development Association Financial statements Year ended 31 December 2014

recognised in income or expenditure as a reduction against depreciation expense on a systematic basis over the useful life of the asset.

3.13

New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are effective for the annual periods beginning after 1 January 2014, and have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the Association.

FS15

Singapore Indian Development Association Financial statements Year ended 31 December 2014

4

Plant and equipment Computer equipment S$ Cost At 1 January 2013 Additions Transfers Written-off At 31 December 2013 Additions Transfers At 31 December 2014

5

965,292 127,606 35,189 (45,394) 1,082,693 90,627 136,844 1,310,164

Furniture and fittings S$

Office Office equipment renovation S$ S$

472,390 43,629 – (60,833) 455,186 68,014 – 523,200

136,535 26,605 5,851 (1,486) 167,505 25,080 – 192,585

725,550 55,399 65,077 (103,360) 742,666 85,824 – 828,490

Accumulated depreciation At 1 January 2013 Depreciation Written-off At 31 December 2013 Depreciation At 31 December 2014

565,178 223,343 (41,671) 746,850 214,720 961,570

369,233 43,714 (60,833) 352,114 45,411 397,525

60,509 29,560 (1,486) 88,583 28,543 117,126

483,784 157,788 (103,360) 538,212 135,556 673,768

Carrying amounts At 1 January 2013 At 31 December 2013 At 31 December 2014

400,114 335,843 348,594

103,157 103,072 125,675

76,026 78,922 75,459

241,766 204,454 154,722

Capital work-in progress S$

306,741 56,102 (106,117) – 256,726 145,416 (136,844) 265,298

– – – – – –

306,741 256,726 265,298

Total S$

2,606,508 309,341 – (211,073) 2,704,776 414,961 – 3,119,737

1,478,704 454,405 (207,350) 1,725,759 424,230 2,149,989

1,127,804 979,017 969,748

Government Subvention receivable This represents the annual “dollar for dollar” matching grant receivable, subject to a maximum of S$3,400,000 (2013: S$1,700,000), from the Ministry of Culture, Community and Youth (MCCY). During the year, MCCY increased the maximum matching grant limit from S$1,700,000 to S$3,400,000.

6

Deposits, prepayments, tuition fee receivables and others 2014 S$ Deposits Tuition fee receivables Other receivables Loans and receivables Prepayments

24,275 152,402 971,685 1,148,362 172,610 1,320,972

2013 S$ 23,974 189,174 539,766 752,914 62,402 815,316

FS16

Singapore Indian Development Association Financial statements Year ended 31 December 2014

7

Financial assets – investments Note

Held for trading: - Equity securities - Debt securities - REITS/real estate funds - Absolute return funds - Private equity funds - Unit trusts: - equity - fixed income - Cash at bank in investment accounts held with fund managers/custodians

8

2014 S$

2013 S$

– – 611,222 24,803 682,066

1,133,328 2,802,157 1,859,302 60,850 754,648

7,163,770 12,443,816 20,925,677

– – 6,610,285

360,845 21,286,522

15,115,412 21,725,697

At the reporting date, the Association has no contracted commitments in relation to investments (2013: S$258,707).

8

Cash and cash equivalents Note

Bank balances Fixed deposits Cash and cash equivalents in the statement of financial position Cash at bank in investment accounts Fixed deposits pledged Cash and cash equivalents in the statement of cash flows

7

2014 S$

2013 S$

3,366,299 1,448,263

3,440,004 1,488,783

4,814,562 360,845 5,175,407 (106,000)

4,928,787 15,115,412 20,044,199 (101,000)

5,069,407

19,943,199

Fixed deposits have been pledged to obtain a letter of guarantee in lieu of deposit fee from a bank for the purpose of obtaining a Temporary Occupation Licence (TOL) for the Association’s premises (see note 12).

9

Accumulated funds Accumulated funds are the Association’s general operating funds and can be used for any of the Association’s activities.

FS17

Singapore Indian Development Association Financial statements Year ended 31 December 2014

The Accumulated funds are represented by the following assets and liabilities:

Plant and equipment Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donation receivable – Singapore Totalisator Board Deposits and prepayments, other receivables Financial assets – investments Cash at bank in investment account Cash in hand and at bank Fixed deposits Other payables and accrued expenses Unutilised specific grants Deferred income

Note

2014 S$

2013 S$

4 5

969,748 3,400,000

979,017 1,700,000

6 9(i) 9(ii) 8 8 10 11

721,069 1,000,000 1,320,972 20,925,677 360,845 3,366,299 1,448,263 (2,288,847) (3,691,616) (80,071) 27,452,339

684,688 875,000 815,316 6,610,285 15,115,412 3,440,004 1,488,783 (1,341,582) (4,206,465) – 26,160,458

The following assets are funded as follows: 2014 S$ (i)

Financial assets – investments - Accumulated funds - Vijay and Amar Trust Fund - Padma and Hari Harilela Scholarship Fund

(ii) Cash at bank in investment accounts held with fund managers/custodians - Accumulated funds - Vijay and Amar Trust Fund - Padma and Hari Harilela Scholarship Fund

2013 S$

20,925,677 – – 20,925,677

5,735,465 675,997 198,823 6,610,285

360,845 – – 360,845

14,904,024 163,345 48,043 15,115,412

In 2014, Vijay and Amar Trust Fund and Padma and Hari Harilela Scholarship Fund were consolidated into Accumulated funds.

FS18

Singapore Indian Development Association Financial statements Year ended 31 December 2014

10

Other payables and accrued expenses 2014 S$ Payables to suppliers and service providers Accrued expenses

11

1,211,957 1,076,890 2,288,847

2013 S$ 1,239,386 102,196 1,341,582

Unutilised specific grants/donations These comprise specific grants/donations for: 2014 S$ (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)

(i)

Tamil Language Learning and Promotion Committee (TLLPC) Singapore Indian Education Trust (SIET) and Tertiary Education Loan Scheme School Pocket Money Fund (SPMF) Project Spark Singapore Press Holding (SPH) Foundation Newspaper Project Additional Top-up Grant Project Give Donations Youth Development Programmes Single Parent Programme/Sponsorships Care and Share Funding

2013 S$

564,532

671,384

193,328 8,082 51,458

610,947 18,740 5,394

– – 585,815 772,084 1,387,193 129,124 3,691,616

20,000 373,472 784,843 1,156,556 565,129 – 4,206,465

Tamil Language Learning and Promotion Committee (TLLPC) Tamil Language Learning and Promotion Committee (TLLPC) is a committee set up by the Ministry of Education (MOE) to promote the learning and use of the Tamil language.

The Association provides support to TLLPC in the administration of the TLLPC funds.

Grants and donations are the main sources of income with MOE providing a matching grant for funds raised by the TLLPC.

(ii)

Singapore Indian Education Trust (SIET) Singapore Indian Education Trust (SIET) is a registered charity offering solutions to the needs and challenges impacting the educational performance of the Indian community.

The Association’s programmes are designed to focus mainly on the education of students from pre-primary to secondary while SIET’s focus is on tertiary level education. Both of the organisations recognise the immense opportunity to leverage on the synergy between the two organisations. The collaborative arrangement has been set up to manage SIET donations and its disbursements to students who qualify for financial assistance for their course of study at the tertiary institutions and other schemes administered by SIET.

FS19

Singapore Indian Development Association Financial statements Year ended 31 December 2014

The Tertiary Education Loan Scheme is supported by a donation to provide interest free Educational Loan assistance to bright Indian students facing financial challenges in pursuing their tertiary qualifications. This scheme will be jointly run by SIET and the Association with SIET administering the scheme. (iii)

School Pocket Money Fund (SPMF) The Association receives yearly grants from the National Council of Social Service (NCSS) pertaining to SPMF. All bursary payments made under this service will be paid out from SPMF based on criteria set out by NCSS.

(iv)

Project Spark Project Spark (Successful Parents and Resilient Kids) is a collaborative effort between Temasek Cares (a charity arm of Temasek Holdings), Yayasan Mendaki, Chinese Development Assistance Council, the Association and Eurasian Association. It aims to provide a more holistic and integrated intervention programme to help single parents rebuild their lives and overcome their disadvantage. Funding supports the provision of an assistance package consisting of employment assistance programmes and a starter kit.

(v)

Singapore Press Holding (SPH) Foundation Newspaper Project SPH Newspaper Project is a programme to sponsor subscriptions to the Straits Times and Tamil Murasu Newspapers. Under this project, the Association will identify needy households who wish to read the Straits Times newspaper and SPH will sponsor the subscription costs. During the year, the Association fully utilised the grant.

(vi)

Additional Top-up Grant The Government of Singapore announced in the 2013 Budget an additional top-up grant of S$10,000,000 to all self-help groups for a two year period. The Association is entitled to receive S$1,800,000 with an annual cap of S$900,000 each year to enhance the Association’s programmes. During the year, the Association fully utilised the grant. No further grant is expected to be received.

(vii) Project Give Donations Project Give is a community fund raising campaign to raise money for the bursaries for students from needy families. It typically runs through the various festivities such as Hari Raya Puasa, Deepavali and Christmas. Funds are raised via direct cheque donations, donation boxes placed with partner retailers, on-line, at the booth during Deepavali Fair at 48 Serangoon Road (Deepavali Bazaar) (2013: Campbell Lane) and through tele-poll in conjunction with the Project Give Charity Show on Mediacorp’s Vasantham TV Channel.

FS20

Singapore Indian Development Association Financial statements Year ended 31 December 2014

(viii) Youth Development Programmes Youth Development Programmes are specific programmes under the funding support of S$2,000,000 from Kewalram Group of Companies which focuses mainly on the following 3 key programmes: 

Project Victory/Senior Victory; a school based motivational programme that aims to bring out leadership qualities and encourage the practice of positive life skills through structured activities and trained facilitators.



Youth Empowerment Programme; a one-to-one mentorship programme to engage “at-risk” youth and who have low self-esteem or other behavioural problems.



Mentorship programme for Institute of Technical Education (ITE) students; a programme to engage students of ITE through interest-based mentoring.

The funds will be channelled towards the content development, programme evaluation tools, motivational camps and workshops for the above mentioned programmes. (ix)

Single Parent Programme/Sponsorships Single Parent Programme provides holistic assistance to single parents and their children.

Children of single parents would receive assistance from all the Association’s programmes including Tuition, NEU PC, Enrichment while parents receive assistance on skills upgrading, financial planning and family support to help build their self-esteem and become self-sufficient.

Sponsorships were received for specific programmes like Financial Assistance, Bursary, Educational programmes.

(x)

Care and Share Funding Care and Share Funding is a national fund-raising and volunteerism movement led by Community Chest for the social service sector, in celebration of SG50 (Singapore’s 50 th year of independence). Eligible donations raised by participating VWOs from 1 December 2013 until 31 March 2016 will be matched dollar-for-dollar by the Government of Singapore and is capped at S$2,250,000 per VWO. The matched amount will be utilised towards building the capabilities and capacities of the social service sector and supporting social services to meet rising needs.

FS21

Singapore Indian Development Association Financial statements Year ended 31 December 2014

12

Expenditures on charitable activities, administrative and governance costs Note

Charitable activities Education programmes Tuition programmes: - STEP programme - Project Teach Other education programmes: - Enrichment programmes - Bursary/scholarships - Staff costs - Support costs

Family services - Casework and counselling - School Pocket Money Fund - Single Parents Programme - Other programmes - Staff costs - Support costs

Youth development programmes - SINDA Youth Club activities - Youth motivational programmes - Staff costs - Support costs

Parent and children programmes* - Preschool programmes - Programme for parents - Staff costs - Support costs

13

13

13

13

2014 S$

2013 S$

3,161,181 1,266,420

3,470,340 1,532,287

394,416 402,607 1,897,567 2,086,840 9,209,031

387,732 776,360 1,421,356 2,027,415 9,615,490

344,437 109,215 91,266 550,999 1,050,362 806,820 2,953,099

194,522 115,515 94,596 423,847 881,179 739,747 2,449,406

174,207 268,160 692,116 340,829 1,475,312

163,176 198,827 579,525 295,704 1,237,232

114,982 150,553 611,202 428,809 1,305,546

222,085 127,721 779,385 433,979 1,563,170

FS22

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Note

Community engagement, volunteer management and donor engagement unit - Networking initiatives - Collaborative programmes - Volunteer management - Staff costs - Support costs

Publicity and marketing expenses - Corporate communications - Market communications - Staff costs - Support costs

13

13

Administrative and governance costs - Professional charges - Temporary Occupation Licence (TOL) fee expenses** - Support costs

13

2014 S$

2013 S$

167,922 75,547 42,661 751,886 272,663 1,310,679

77,544 59,998 2,478 520,863 286,615 947,498

39,754 2,597 21,941 306,728 371,020

112,427 13,969 40,482 345,345 512,223

15,647

24,265

455,280 1,743,689 2,214,616

433,581 1,313,955 1,771,801

* In 2014, the Association restructured and consolidated its parent and children programmes. ** The Association occupies land owned by the Government of Singapore at No. 1 Beatty Road Singapore 209943 and pays an annual Temporary Occupation Licence (TOL) fee expense.

The expense is supported by the TOL Grant from the Ministry of Culture, Community and Youth (MCCY) of S$461,129 (2013: S$433,581).

The expenditures have been summarised as follows: ‹--------------- 2014 ---------------› Support costs Direct (see note costs 13) Total S$ S$ S$ Programmes Education programmes Family services Youth development programmes Parent and children programmes

‹--------------- 2013 ---------------› Support costs Direct (see note costs 13) Total S$ S$ S$

7,122,191 2,146,279

2,086,840 806,820

9,209,031 2,953,099

7,588,075 1,709,659

2,027,415 739,747

9,615,490 2,449,406

1,134,483

340,829

1,475,312

941,528

295,704

1,237,232

876,737

428,809

1,305,546

1,129,191

433,979

1,563,170

FS23

Singapore Indian Development Association Financial statements Year ended 31 December 2014

‹--------------- 2014 ---------------› Support costs Direct (see note costs 13) Total S$ S$ S$ Community engagement, volunteer management and donor engagement unit 1,038,016 Publicity and marketing expenses 64,292 Administrative and governance costs 470,927

13

‹--------------- 2013 ---------------› Support costs Direct (see note costs 13) Total S$ S$ S$

272,663

1,310,679

660,883

286,615

947,498

306,728

371,020

166,878

345,345

512,223

1,743,689

2,214,616

457,846

1,313,955

1,771,801

Support costs

Staff costs S$ 2014 Education programmes Family services Youth development programmes Parent and children programmes Community engagement, volunteer management and donor engagement unit Publicity and marketing expenses Administrative and governance costs Total 2013 Education programmes Family services Youth development programmes Parent and children programmes Community engagement, volunteer management and donor engagement unit Publicity and marketing expenses Administrative and governance costs Total

Maintenance and administrative expenses S$

Depreciation S$

Total S$

1,343,300 471,970 181,527 217,832

637,483 258,489 116,879 151,585

106,057 76,361 42,423 59,392

2,086,840 806,820 340,829 428,809

145,222 195,893

93,503 76,897

33,938 33,938

272,663 306,728

1,052,857 3,608,601

618,711 1,953,547

72,121 424,230

1,743,689 5,986,378

1,126,582 385,410 148,235 207,528

809,952 277,088 106,573 149,202

90,881 77,249 40,896 77,249

2,027,415 739,747 295,704 433,979

148,235 196,693

106,572 103,211

31,808 45,441

286,615 345,345

711,525 2,924,208

511,549 2,064,147

90,881 454,405

1,313,955 5,442,760

FS24

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Support costs in respect of staff costs, maintenance and administrative expenses are allocated to charitable activities based on level of activities.

Support costs in respect of depreciation are allocated to charitable activities based on floor area occupied.

14

Net income/(expenditures) for the year The following items have been included in arriving at net income/(expenditures) for the year: 2014 S$ Employee benefits expense (see below) Depreciation Employee benefits expense: Staff costs Contributions to defined contribution plans

15

2013 S$

8,633,364 424,230

7,977,873 454,405

7,762,406 870,958 8,633,364

7,146,998 830,875 7,977,873

Taxation The Association is an approved charity organisation under the Charities Act, Chapter 37 and an Institution of Public Character under the Income Tax Act, Chapter 134. No provision for tax has been made in the financial statements as the Association is exempt from income tax.

16

Transactions with key management personnel Key management personnel compensation comprised:

Short-term employment benefits Post-employment benefits (including CPF)

Salary range Salary above S$200,000 Salary within range S$150,000 to S$200,000 Total

2014 S$

2013 S$

796,226 73,766 869,992

720,157 69,886 790,043

1 2 3

2 1 3

FS25

Singapore Indian Development Association Financial statements Year ended 31 December 2014

The key management personnel remuneration comprise remuneration paid to the top three (2013: three) key executives including the Chief Executive Officer. One of the key management personnel is seconded from the Health Sciences Authority with effect from 2010.

The Trustees and Executive Committee members do not receive any remuneration from the Association.

The Chief Executive Officer of the Association changed from Mr. T Raja Segar to Mr. Kumaran Barathan with effect from 1 July 2014.

17

Related party transactions For the purpose of financial statements, parties are considered to be related to the Association if the Association has the ability, directly, or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Association and the party are subject to common control or common significant influence.

Related parties may be individuals or other entities.

Other than the transactions disclosed elsewhere in the financial statements, there were no significant related party transactions between the Association and its related parties during the financial year.

18

Financial instruments Financial risk management Overview The Association has exposure to the following risks from its use of financial instruments:  Credit risk  Liquidity risk  Market risk This note presents information about the Association’s exposure to each of the above financial risks. Further quantitative disclosures are included throughout these financial statements.

Risk management framework The Board of Trustees and Executive Committee have an overall responsibility for the establishment and oversight of the Association’s risk management framework.

The Association’s activities expose it to credit risk, liquidity risk and market risk (including foreign currency risk, interest rate risk and price risk). The Association has policies and processes for measuring and managing these risks. The Board of Trustees and Executive Committee review and approve the policies for managing each of these risks.

FS26

Singapore Indian Development Association Financial statements Year ended 31 December 2014

The Association’s risk management policies are established to identify and analyse the risks faced by the Association, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in the Association’s activities. The Association, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and responsibilities.

There were no significant changes to the Association’s financial risks during the year.

Credit risk Credit risk is the risk of financial loss to the Association if the counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Association’s receivables from various sources and investments.

The Association’s exposure to credit risk arises principally from receivables, investments and cash and cash equivalents. The carrying amounts of financial assets in the statement of financial position represent the Association’s maximum exposure to credit risk.

The Association establishes an allowance for impairment that represents its estimate of incurred losses in respect of its receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures.

Exposure to credit risk The Association’s exposure to credit risk is low as most of its receivables are from government agencies. As at the end of the financial year, 80% of the Association’s receivables are due from three counterparties (2013: 80%).

Impairment Receivables comprise: Note

Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donations receivable – Singapore Totalisator Board Loans and receivables

6

2014 S$

2013 S$

3,400,000

1,700,000

721,069 1,000,000 1,148,362 6,269,431

684,688 875,000 752,914 4,012,602

FS27

Singapore Indian Development Association Financial statements Year ended 31 December 2014

The ageing of receivables that were not impaired at the reporting date was: 2014 S$ Not past due nor impaired Past due 0 – 30 days Past due 31 – 60 days Past due 61 – 90 days Past due 91 days

5,567,725 – 1,350 6,666 693,690 6,269,431

2013 S$ 3,649,924 26,605 500 – 335,573 4,012,602

There is no allowance for receivables required as at 31 December 2014 (2013: Nil).

The Association believes that the unimpaired amounts that are past due by more than 91 days are still collectible in full, based on historic payment behaviour.

Financial assets – Investments in debt securities The Association limits its exposure to credit risk on investments in debt securities by investing only in liquid securities. Subject to the provisions of the Collective Investment Schemes Code, the fund managers, who appointed by the Association, restrict their dealings with counterparties that have long-term issuer credit rating of above BB+ by Standard and Poor’s, individual rating of above C by Fitch Inc, or financial strength rating of above C by Moody’s Investors Service.

If any of the approved counterparties fail to meet the requirements, the fund managers will take steps to unwind the sub – fund’s position with that counterparty.

In 2014, the Association disposed of its remaining investments in debt securities.

Cash and cash equivalents The Association’s cash and cash equivalents are placed with banks and financial institutions which are regulated and rated B and above (2013: B and above) on Standard & Poor’s financial strength ratings.

At the reporting date, the Association’s cash and cash equivalents are placed with four financial institutions (2013: four) and represent the Association’s maximum exposure to the concentration of credit risk.

Liquidity risk Liquidity risk is the risk that the Association will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Association’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Association’s reputation.

Typically, the Association ensures that it has sufficient cash on demand to meet expected operational expenses. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted.

FS28

Singapore Indian Development Association Financial statements Year ended 31 December 2014

As at reporting date, the contractual undiscounted cash flows of the Association’s financial liabilities approximate the carrying values and are due within 6 months.

Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Association’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

Market risk is managed by the Investment Committee by closely monitoring the market data and by setting up detailed investment policies.

Foreign currency risk The Association’s exposure to currency risk relates primarily to its investments. By virtue of its investment activities to optimise return, the Association is exposed to the effects of foreign currency exchange rate fluctuations, principally in currencies such as the United States dollar (USD) and Euro (EUR).

The Association’s foreign currency exposures at the reporting date are as follows: 2014 S$ Financial assets – investments USD EUR HKD Other currencies

1,296,621 4,897 – –

2013 S$

8,976,033 14,164 106 1

Sensitivity analysis A 10% strengthening of the Singapore dollar against the following currencies at the reporting date would decrease the net income by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.

Net deficit S$ 31 December 2014 USD EUR HKD

(129,662) (490) –

31 December 2013 USD EUR HKD

(896,969) (1,416) (11)

FS29

Singapore Indian Development Association Financial statements Year ended 31 December 2014

A 10% weakening of the Singapore dollar against those currencies at the reporting date would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

Interest rate risk At the reporting date, the interest rate profile of the interest-bearing financial instruments was as follows: Nominal amount 2014 2013 S$ S$ Fixed rate instruments Fixed deposits with banks Debt securities

1,448,263 – 1,448,263

1,488,783 2,802,157 4,290,940

At the reporting date, management assessed that an increase/(decrease) of 25 basis points in interest rates would have no significant impact to the results of the Association (2013: No significant impact).

Price risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

Sensitivity analysis The Association’s investments are designated as fair value through income or expenditure. A 10% increase or decrease in the underlying market prices at the reporting date, with all variables held constant would increase or decrease the net income by S$2,092,568 (2013: S$661,029).

Funds management The Association is a society with no share capital at the reporting date.

The Association builds up its funds from donations received and also through prudent management of its financial resources. The funds of the Association include unrestricted funds represented by the Accumulated funds (see note 9).

The reserves of the Association provide financial stability and the means for the development of the Association’s activities. The Association intends to maintain the reserves at a level sufficient for its operating needs. The Board of Trustees and the Executive Committee of the Association review the level of reserves regularly for the Association’s continuing obligations.

FS30

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Ratio between the Association’s annual operating expenditure and its funds is as follows:

Total funds at 31 December Annual operating expenditure Ratio of funds to annual operating expenditure

2014 S$

2013 S$

27,452,339 18,973,066 1.4:1

26,160,458 18,225,213 1.4:1

The Association’s funds are closely monitored to ensure that there are sufficient funds to support its programmes and activities.

The Association is not subject to externally imposed requirements.

Accounting classification and fair values Fair values versus carrying amounts Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

The carrying amounts of loans and receivables and other financial liabilities approximate their fair values due to the relatively short period to maturity of these financial assets and liabilities.

The fair value of financial assets and liabilities, together with the carrying amounts, shown in the statement of financial position are as follows:

Loans and Note receivables S$ 31 December 2014 Government Subvention 5 receivable Donations receivable – Central Provident Fund Board Scheme Donations receivable – Singapore Totalisator Board Deposits, prepayments, tuition fee receivables and others 6

Carrying amount Fair value through Other income or financial expenditure liabilities S$ S$

Fair value

Total S$

Total S$

3,400,000

–

–

3,400,000

3,400,000

721,069

–

–

721,069

721,069

1,000,000

–

–

1,000,000

1,000,000

1,320,972

–

–

1,320,972

1,320,972

FS31

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Loans and Note receivables S$ Financial assets – investments Cash and cash equivalents Deferred income Other payables and accrued expenses Unutilised specific grants/donations

31 December 2013 Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donations receivable – Singapore Totalisator Board Deposits, prepayments, tuition fee receivables and others Financial assets – investments Cash and cash equivalents Other payables and accrued expenses Unutilised specific grants/donations

Carrying amount Fair value through Other income or financial expenditure liabilities S$ S$ –

Fair value

Total S$

Total S$

21,286,522

21,286,522

7

360,845

20,925,677

8

4,814,562 –

– –

– (80,071)

4,814,562 (80,071)

4,814,562 (80,071)

10

–

–

(2,288,847)

(2,288,847)

(2,288,847)

11

– 11,617,448

– 20,925,677

(3,691,616) (6,060,534)

(3,691,616) 26,482,591

(3,691,616) 26,482,591

5

1,700,000

–

–

1,700,000

1,700,000

684,688

–

–

684,688

684,688

875,000

–

–

875,000

875,000

6

815,316

–

–

815,316

815,316

7

15,115,412

6,610,285

–

21,725,697

21,725,697

8

4,928,787

–

–

4,928,787

4,928,787

10

–

–

(1,341,582)

(1,341,582)

(1,341,582)

11

– 24,119,203

– 6,610,285

(4,206,465) (5,548,047)

(4,206,465) 25,181,441

(4,206,465) 25,181,441

Fair value hierarchy The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:  Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

FS32

Singapore Indian Development Association Financial statements Year ended 31 December 2014

 Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).  Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Note

Level 1 S$

Level 2 S$

Level 3 S$

Total S$

31 December 2014 Financial assets – held for trading

7

12,443,816

–

8,481,861

20,925,677

31 December 2013 Financial assets – held for trading

7

3,935,485

–

2,674,800

6,610,285

Measurement of fair values The following table shows a reconciliation from the opening balances to the ending balances for Level 3 fair values: Financial assets – held for trading S$ At 1 January 2014 Additions Disposals At 31 December 2014

2,674,800 7,163,770 (1,356,709) 8,481,861

Valuation techniques and significant unobservable inputs The following table shows the valuation technique used in measuring Level 3 fair values, as well as the significant unobservable inputs used:

Financial assets Fair value – held for Type of at 31 December Valuation trading investment 2014 technique S$ REIT/real estate funds Absolute return funds

Real estate fund Private equity fund

611,222 24,803

Net Asset Value Net Asset Value

Significant unobservable inputs

Inter relationship between key unobservable inputs and fair value measurement

Not applicable

Not applicable

Not applicable

Not applicable

FS33

Singapore Indian Development Association Financial statements Year ended 31 December 2014

Financial assets Fair value – held for Type of at 31 December Valuation trading investment 2014 technique S$ Private equity funds Unit trusts – equity

Private equity fund Equity unit trust

682,066 7,163,770

Net Asset Value Net Asset Value

Significant unobservable inputs

Inter relationship between key unobservable inputs and fair value measurement

Not applicable

Not applicable

Not applicable

Not applicable

The Association obtains third party confirmations to determine the Net Asset Values (“NAV”) of investments included in Level 3. The Association’s Investment Committee has determined that the reported NAV represent fair values at the reporting date.

FS34