SINDA Financial Statements 2013

Singapore Indian Development Association Reg No UEN S90SS0098L Financial Statements Year ended 31 December 2013

Singapore Indian Development Association General Information Year ended 31 December 2013

General Information

Patron Prime Minister Lee Hsien Loong Life Trustees Mr Tharman Shanmugaratnam (Chairman) Professor S Jayakumar Mr S Dhanabalan Mr S Chandra Das Mr J Y Pillay Mr Sat Pal Khattar Mr K Shanmugam Dr N Varaprasad 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 Mr Hsieh Fu Hua Justice Judith Prakash Mr K Kesavapany

Audit Review Committee Members Mr Gautam Banerjee (Chairman) Mr Shabbir Hassanbhai Mr Sarjit Singh Mr K V Rao Mr Subramaniam Iyer Mr Mohan Pillay Executive Committee Ms Indranee T Rajah (President) Mr Viswa Sadasivan (Vice-President) Mr Shabbir Hassanbhai (Vice-President) Mr Sarjit Singh (Secretary) Mr Shekaran Krishnan (Treasurer) 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 Chief Executive Officer Mr T Raja Segar

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

Address No. 1 Beatty Road Singapore 209943

Auditors KPMG LLP Partner-in-charge:

Jeya Poh Wan Suppiah

(since the financial year ended 31 December 2011)

2

Singapore Indian Development Association Statement by Executive Committee Year ended 31 December 2013

Statement by President, Treasurer and the Chief Executive Officer We, Indranee T Rajah, Shekaran Krishnan and T Raja Segar do hereby state that in our opinion: ( a)

the financial statements of Singapore Indian Development Association (the “Association�) set out on pages FS1 to FS30 are properly drawn up to present fairly in all material respects, the state of affairs of the Association as at 31 December 2013 and the income and expenditure, changes in funds and cash flows of the Association for the year ended on that date in accordance with the Singapore Financial Reporting Standards; and

(b) at the date of this statement, the Association will be able to pay its debts as and when they fall due.

The Executive Committee has, on the date of this statement, authorised these financial statements for issue.

On behalf of the Executive Committee

Indranee T Rajah President

Shekaran Krishnan Treasurer

T Raja Segar Chief Executive Officer

Singapore 25 March 2014

3

Singapore Indian Development Association Independent auditors’ report Year ended 31 December 2013

Independent auditors’ report Members of Singapore Indian Development Association (Registered under the Singapore Charities Act, Chapter 37 and the Singapore Societies Act, Chapter 311) Report on the financial statements We have audited the accompanying financial statements of Singapore Indian Development Association (the “Association”), which comprise the balance sheet as at 31 December 2013, statement of comprehensive income, statement of changes in funds and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages FS1 to FS30.

Executive Committee’s responsibility for the financial statements The Executive Committee is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of the Singapore Charities Act, Chapter 37 (the “Charities Act”), the Singapore Societies Act, Chapter 311 (the “Societies Act”) (together the “Act”) and Singapore Financial Reporting Standards, and for such internal control as the Executive Committee determines is 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 Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of these financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, 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.

4

Singapore Indian Development Association Independent auditors’ report Year ended 31 December 2013

Opinion In our opinion, the financial statements of the Association present fairly, in all material respects, the state of affairs of the Association as at 31 December 2013, the income and expenditure, changes in funds and the cash flows of the Association for the year then ended in accordance with the provisions of the Act and Singapore Financial Reporting Standards.

Report on other legal and regulatory requirements In our opinion: (a)

the accounting and other records required by the regulations enacted under the Societies Act to be kept by the Association have been properly kept in accordance with those regulations; and

(b)

the fund-raising appeal held during the year ended 31 December 2013 has been carried out in accordance with Regulation 6 of the Societies Regulations issued under the Societies Act and proper accounts and other records have been kept of the fund-raising appeal.

During the course of our audit, nothing has come to our attention that causes us to believe that during the year: (a)

The use of the donation monies was not in accordance with the objectives of the Association as required under Regulation 16 of the Charities (Institutions of a Public Character) Regulations; and

(b) The Association has not complied with the requirements of Regulation 15 (fund-raising expenses) of

the Charities (Institutions of a Public Character) Regulations.

KPMG LLP Public Accountants and Chartered Accountants Singapore 25 March 2014

5

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Balance sheet As at 31 December 2013 Note

2013

2012

$

$

Non-current asset Property, plant and equipment

4

979,017

1,127,804

Current assets Government Subvention receivable

5

1,700,000

1,700,000

Donations receivable – Central Provident

Fund Board Scheme

684,688

658,822

Donations receivable – Singapore Totalisator Board

875,000

375,000

Deposits, prepayments, tuition fee receivables and others

6

815,316

507,600

Financial assets – Investments

7

21,725,697

24,640,877

Cash and cash equivalents

8

4,928,787

4,022,565

30,729,488

31,904,864

31,708,505

33,032,668

26,160,458

26,752,650

26,160,458

26,752,650

Total assets

Representing: Funds Unrestricted fund Accumulated fund

9

Total Funds Current liabilities Other payables and accrued expenses

10

1,341,582

1,195,456

Unutilised specific grants/donations

11

4,206,465

5,084,562

5,548,047

6,280,018

31,708,505

33,032,668

Total liabilities Total liabilities and funds

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

FS 1

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Statement of comprehensive income Year ended 31 December 2013

Note

2013 Unrestricted Fund

2012 Unrestricted Fund

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

8,110,053

-

8,110,053

7,734,411

-

7,734,411

500,000

-

500,000

375,000

-

375,000

Financial activities/Income and expenditure Incoming resources Incoming resources from generated funds (i) Voluntary income: Donation – Central Provident Fund (CPF) Contribution Donation from Singapore Totalisator Board (STB) Donation sponsorships

2,147,966

-

2,147,966

1,635,104

-

1,635,104

Other donations

388,748

-

388,748

690,633

-

690,633

Income from School Pocket Money Fund (SPMF)

115,515

-

115,515

92,320

-

92,320

(ii) Investment income: Dividend income

-

560,919

560,919

-

664,561

664,561

Interest income - debt securities

-

125,954

125,954

-

125,172

125,172

3,005

-

3,005

4,656

-

4,656

118,564

-

118,564

44,196

-

44,196

- fixed deposits and bank balances (iii) Other income

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

FS 2

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Statement of comprehensive income (continued) Year ended 31 December 2013

Note

2013 Unrestricted Fund

2012 Unrestricted Fund

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

714,292

-

714,292

465,988

-

465,988

1,700,000

-

1,700,000

1,700,000

-

1,700,000

-

-

-

36,000

-

36,000

433,581

-

433,581

433,581

-

433,581

Ministry of Social and Family Development (MSF) – Family Services Centre (FSC) Funding

665,987

-

665,987

571,653

-

571,653

MCCY – Additional Top-up Grant / Other Funding

626,428

-

626,428

933,963

-

933,963

National Council of Social Services (NCSS) – FSC Funding

160,558

-

160,558

181,572

-

181,572

Singapore Totalisator Board (STB) – FSC Funding

493,988

-

493,988

341,782

-

341,782

Temasek Care Funding

75,788

-

75,788

57,557

-

57,557

Voluntary Welfare Organisation (VWO) Charities Capability Funding (VCF) by MSF

21,420

-

21,420

70,436

- 70,436

162,389

-

162,389

94,551

-

63,730

-

63,730

135,460

Incoming resources from charitable activities (i) Income from approved projects: Tuition programme fees (ii) Government Grants: Government Subvention

5

GST Offset Package Grant Ministry of Culture, Community and Youth (MCCY), Temporary Occupation Licence (TOL) Fee Grant

Wrap Around Care (WAC) / Other FSC Funding (iii) Other Grants: Singapore Press Holdings (SPH) Newspaper Project Funding

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

12

94,551

- 135,460

FS 3

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Statement of comprehensive income (continued) Year ended 31 December 2013

Note

2013 Unrestricted Fund

2012 Unrestricted Fund

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

-

(126,147)

(126,147)

-

(15,072)

(15,072)

Other incoming resources

Investments gains/(losses): Net gain/(loss) on disposal of trading securities

-

676,744

676,744

Exchange loss

-

(53,200)

(53,200)

Fair value (loss)/gain on trading securities

-

(179,408)

(179,408)

-

1,698,696

1,698,696

16,502,012

1,131,009

17,633,021

15,598,863

2,347,210

17,946,073

Total incoming resources

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

FS 4

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Statement of comprehensive income (continued) Year ended 31 December 2013

Note

2013 Unrestricted Fund Accumulated Fund Operations $

Accumulated Fund Investments $

2012 Unrestricted Fund Accumulated Fund Total $

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

Resources Expended Cost of generating funds Cost of generating voluntary income: CPF agency charges

128,393

-

128,393

99,579

-

99,579

Charitable activities: Education programmes

12

9,615,490

-

9,615,490

10,078,436

-

10,078,436

Family services

12

2,449,406

-

2,449,406

2,622,862

-

2,622,862

Youth development programmes

12

1,237,232

-

1,237,232

1,195,168

-

1,195,168

Parent programmes

12

775,811

-

775,811

686,010

-

686,010

Children programmes

12

787,359

-

787,359

798,318

-

798,318

Community engagement and volunteer management

12

947,498

-

947,498

1,220,341

-

1,220,341

Corporate and marketing communications

12

512,223

-

512,223

435,925

-

435,925

Administrative and Governance costs: Corporate expenses

12

1,771,801

-

1,771,801

1,352,404

-

1,352,404

Total resources expended

18,225,213

-

18,225,213

18,489,043

-

18,489,043

Net (deficit)/surplus for the year Other comprehensive income for the year, net of income tax

(1,723,201)

(592,192)

(2,890,180)

-

-

Total comprehensive (loss)/income for the year

(1,723,201)

(592,192)

(2,890,180)

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

-

1,131,009 1,131,009

2,347,210 2,347,210

(542,970) (542,970)

FS 5

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Statement of changes in funds Year ended 31 December 2013 Unrestricted Fund

At 1 January 2012

Accumulated Fund

Sinking Fund

Endowment Funds

$

$

$

Total $

7,835,510

995,850

18,464,260

27,295,620

(542,970)

–

–

(542,970)

–

–

–

–

(542,970)

–

–

(542,970)

Transfers from sinking fund

to accumulated fund

995,850

(995,850)

–

–

Transfers from endowment fund

to accumulated fund

18,464,260

–

(18,464,260)

–

At 31 December 2012

26,752,650

–

–

26,752,650

At 1 January 2013

26,752,650

–

–

26,752,650

(592,192)

–

–

(592,192)

–

–

–

–

(592,192)

–

–

(592,192)

26,160,458

–

–

26,160,458

Total comprehensive loss for the year Net deficit for the year Other comprehensive income for the year Total comprehensive loss for the year

Total comprehensive loss for the year Net deficit for the year Other comprehensive income for the year, net of income tax Total comprehensive loss for the year At 31 December 2013

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

FS 6

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Statement of cash flows Year ended 31 December 2013 Note

2013 $

2012 $

Cash flows from operating activities Net deficit for the year

(592,192)

(542,970)

Dividend income

(560,919)

(664,561)

(Gain)/loss on disposal of trading securities

(676,744)

126,147

Fair value loss/(gain) on trading securities

179,408

(1,698,696)

53,200

15,072

454,405

422,729

3,723

–

(125,954)

(125,172)

(3,005)

(4,656)

(1,268,078)

(2,472,107)

Donations, grants and subventions receivables

(525,866)

589,534

Deposits, prepayments and other receivables

(261,527)

402,332

Other payables, accrued expenses and unutilised grants

(731,971)

(428,036)

(2,787,442)

(1,908,277)

(309,341)

(670,124)

Purchase of investments

(8,909,550)

(6,914,359)

Proceeds from sale of investments

26,218,278

6,422,873

79,765

125,172

3,005

4,656

560,919

664,561

Net cash from/(used in) investing activities

17,643,076

(367,221)

Net increase/(decrease) in cash and cash equivalents

14,855,634

(2,275,498)

5,087,565

7,363,063

19,943,199

5,087,565

Adjustments for:

Exchange loss Depreciation

4

Write-off of property, plant and equipment Interest income: - debt securities - fixed deposits and bank balances Changes in working capital:

Net cash used in operating activities Cash flows from investing activities Purchase of property, plant and equipment

Interest received: - debt securities - fixed deposits and bank balances Dividend received

Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December

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

8

FS 7

Singapore Indian Development Association Financial statements Year ended 31 December 2013

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 25 March 2014.

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 stands 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) Maximising educational opportunities for all students ii) Engaging parents to play an active role in their children’s lives iii) Inspiring youths towards greater achievement iv) 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 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 as disclosed in accounting policies below.

FS 8

Singapore Indian Development Association Financial statements Year ended 31 December 2013

2.3 Functional and presentation currency The financial statements are presented in Singapore dollars which is the Association’s functional currency. All financial information is presented in Singapore dollars, unless otherwise stated.

2.4 Use of estimates and judgements

The preparation of the financial statements in conformity with the FRSs requires management to make judgements, estimates and assumptions that affects the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. There are no significant assumptions or estimation uncertainties that have a significant risk of resulting in a material adjustment to the financial statements within next financial year.

In the application of the Association’s accounting policies, which are described in note 3, Management is of the opinion that there is no instance of application of judgement which is expected to have a significant effect on the amounts recognised in the financial statements.

2.5 Changes in accounting policies On 1 January 2013, the Association adopted the new or amended FRS and Interpretations to FRS that are mandatory for application from that date.

The adoption of these new or amended FRS and Interpretations to FRS did not result in substantial changes to the Association’s accounting policies and had no material effect to the amounts reported for the current or prior financial years.

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 into Singapore dollars at foreign exchange rates ruling at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated into Singapore dollars at foreign exchange rate ruling at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to Singapore dollars at the exchange rate at the date on which the fair value is determined.

Foreign currency differences arising from retranslation are recognised in income and expenditure.

FS 9

Singapore Indian Development Association Financial statements Year ended 31 December 2013

3.2 Property, plant and equipment Recognition and measurement Items of property, 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 property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

The gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised in income and expenditure.

Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part 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 property, plant and equipment are recognised in income and 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 in income and expenditure on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

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.

FS 10

Singapore Indian Development Association Financial statements Year ended 31 December 2013

3.3 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 investments 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 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. 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 balance sheet 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.

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.

Financial assets at fair value through income and expenditure Financial assets are classified as at fair value through income and expenditure if they are held for trading or are designated as such upon initial recognition. Financial assets are designated as fair value through income and expenditure if the Association manages such investments and makes purchase and sale decisions based on their fair value. Upon initial recognition, attributable transaction costs are recognised in income and expenditure as incurred.

The Association’s investments which are classified as financial assets at fair value through income and expenditure are measured at fair value, and changes therein are recognised in income and expenditure.

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 or cancelled or expire.

Financial assets and liabilities are offset and the net amount presented in the balance sheet 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’s non-derivative financial liabilities comprised other payables.

FS 11

Singapore Indian Development Association Financial statements Year ended 31 December 2013

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.

Derivative financial instruments The Association holds forward swap contracts to hedge its foreign currency risk exposure arising from its investments. The derivative financial instruments are not designated in a qualifying hedge accounting relationship, all changes in its fair value are recognised immediately in income and expenditure.

3.4 Impairment Non-derivative financial assets A financial asset 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 had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

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.

The Association considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant 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. Receivables that are not individually significant are collectively assessed for impairment by grouping together 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 and expenditure and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through income and 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. The impairment loss is charged to income and expenditure.

FS 12

Singapore Indian Development Association Financial statements Year ended 31 December 2013

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.

3.5 Provisions Provisions are recognised if, as a result of past events 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.

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 plans are recognised as an expense in income and expenditure as incurred.

Short-term accumulating compensated absences Short-term accumulating compensated absences are recognised when employees render services that increase their entitlement to future compensated absences.

Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and areexpensed as the related service is provided. A provision 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 recognition Donations from Central Provident Fund scheme and Singapore Totalisator Board, which are probable of collection, are recognised on the accrual basis. All other donations are recognised on the receipt basis.

Tuition programme fees income is recognised on the accrual basis.

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

Government Subvention and grants, which are probable of collection, are recognised on the accrual basis.

FS 13

Singapore Indian Development Association Financial statements Year ended 31 December 2013

3.8 Resources expended on charitable activities The costs of these 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 the basis consistent with the use of the resources.

Governance costs 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 expenses Finance income comprises interest income on funds invested, dividend income, gains on the disposal of investments, net foreign currency gains and changes in the fair value of investments at fair value through income and expenditure. Dividend income from equity investments is recognised when the dividends are received. Interest income is recognised on the accrual basis using the effective interest method.

Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, net foreign currency losses, changes in the fair value of financial assets at fair value through income and expenditure and impairment losses recognised on financial assets that are recognised in income and expenditure.

3.10 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 and expenditure on the straight-line basis over the term of the lease. Lease incentives received are recognised in the income and expenditure as an integral part of the total operating expenses.

3.11 Funds of the Association The Association maintains unrestricted and restricted funds.

Restricted funds Funds set up for specific purposes are classified as restricted funds and may only be utilised in accordance with the purposes established by the source of such funds.

With effect from 1 January 2012, the restrictions on use were removed and the balances were transferred to accumulated fund.

Unrestricted funds All income and expenses other than those attributable to restricted funds and common overheads are recorded in unrestricted fund’s statement of financial activities/income statement.

Unrestricted funds comprised of 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.

FS 14

Singapore Indian Development Association Financial statements Year ended 31 December 2013

3.12 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 2013, 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.

4

Property, plant and equipment

Cost

Computer equipment

Furniture and fittings

Office equipment

Office renovation

Capital work-in progress

$

$

$

$

$

Total $

At 1 January 2012

903,980

723,436

338,287

579,841

Additions

147,672

20,015

49,987

145,709

Written off

(86,360)

(271,061)

(251,739)

–

At 31 December 2012

965,292

472,390

136,535

725,550

306,741

2,606,508

Additions

127,606

43,629

26,605

55,399

56,102

309,341

Transfers

35,189

–

5,851

65,077

(106,117)

–

Written off

(45,394)

(60,833)

(1,486)

(103,360)

–

(211,073)

1,082,693

455,186

167,505

742,666

256,726

2,704,776

468,682

579,974

290,244

326,235

–

1,665,135

182,856

60,320

22,004

157,549

–

422,729

Written off

(86,360)

(271,061)

(251,739)

–

–

(609,160)

At 31 December 2012

565,178

369,233

60,509

483,784

–

1,478,704

223,343

43,714

29,560

157,788

–

454,405

Written off

(41,671)

(60,833)

(1,486)

(103,360)

–

(207,350)

At 31 December 2013

746,850

352,114

88,583

538,212

–

1,725,759

At 1 January 2012

435,298

143,462

48,043

253,606

–

880,409

At 31 December 2012

400,114

103,157

76,026

241,766

306,741

1,127,804

At 31 December 2013

335,843

103,072

78,922

204,454

256,726

979,017

At 31 December 2013

– 306,741 –

2,545,544 670,124 (609,160)

Accumulated depreciation At 1 January 2012 Depreciation charge for the year

Depreciation charge for the year

Carrying amount

5

Government Subvention receivable This represents the annual “dollar for dollar” matching grant receivable, subject to a maximum of $1,700,000 (2012: $1,700,000), from the Ministry of Culture, Community and Youth.

FS 15

Singapore Indian Development Association Financial statements Year ended 31 December 2013

6

Deposits, prepayments, tuition fee receivables and others 2013 $ Deposits

23,974

GST Offset Package grant receivable from Ministry of Culture, Community and Youth.

7

–

2012 $ 33,451 36,000

Tuition fee receivables

189,174

Other receivables

539,766

392,212

Loans and receivables

752,914

461,663

Prepayments

62,402

45,937

507,600

815,316

–

Financial assets – Investments Note

2013 $

Held for trading:

2012 $

- Equity securities

1,133,328

6,915,635

- Debt securities

2,802,157

10,276,487

- Commodities/Precious Metals Trust Funds

–

996,764

- REITS/Real Estate Funds

1,859,302

4,019,732

- Absolute return funds

60,850

107,199

- Private equity funds

754,648

906,200

- Mutual funds - Cash at bank in investment account held with fund managers/custodians

–

252,860

6,610,285

23,474,877

15,115,412

1,166,000

21,725,697

24,640,877

8

At the statement of financial position date, the Association contracted commitments of S$258,707 (2012: S$448,190) in relation to investments.

8 Cash and cash equivalents Note

2013 $

2012 $

Cash in hand and at bank

3,440,004

3,381,966

Fixed deposits

1,488,783

640,599

4,928,787

4,022,565

15,115,412

1,166,000

20,044,199

5,188,565

Fixed deposits pledged

Cash and cash equivalents for cash flow statement

19,943,199

Cash at bank in investment account

7

(101,000)

(101,000)

5,087,565

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 for the Association’s premises (Note 12).

FS 16

Singapore Indian Development Association Financial statements Year ended 31 December 2013

9 Accumulated fund The accumulated fund is the Association’s general operating funds and can be used for any of the Association’s activities.

The accumulated fund is represented by the following assets and liabilities: Note

2013 $

2012 $

Property, plant and equipment

979,017

1,127,804

Government Subvention receivable

1,700,000

1,700,000

Donations receivable – Central Provident Fund Board Scheme

684,688

658,822

Donation receivable – Singapore Totalisator Board

875,000

375,000

Deposits and prepayments, other receivables

815,316

507,600

Financial assets – Investments

9(i)

6,610,285

23,474,877

Cash at bank in investment account

9(ii)

15,115,412

1,166,000

Cash in hand and at bank

3,440,004

3,371,971

Fixed deposits

1,488,783

650,594

Other payables and accrued expenses

(1,341,582)

(1,195,456)

Unutilised specific grants

(4,206,465)

(5,084,562)

26,160,458

26,752,650

The following assets are funded as follows: 2013 $

2012 $

(i)

Financial assets – investments

- Accumulated Fund

5,735,465

22,222,285

- Vijay and Amar Trust Fund

675,997

964,495

- Padma and Hari Harilela Scholarship Fund

198,823

288,097

6,610,285

23,474,877

14,904,024

1,138,866

(ii)

Cash at bank in investment account

- Accumulated Fund

- Vijay and Amar Trust Fund

163,345

20,893

- Padma and Hari Harilela Scholarship Fund

48,043

6,241

15,115,412

1,166,000

10 Other payables and accrued expenses 2013 $

2012 $

Payables to suppliers and service providers

1,239,386

1,036,691

Accrued expenses

102,196

158,765

1,341,582

1,195,456

FS 17

Singapore Indian Development Association Financial statements Year ended 31 December 2013

11 Unutilised specific grants/donations

These comprise specific grants/donations for:

(i)

2012

$

$

Tamil Language Learning and Promotion Committee (TLLPC)

Singapore Indian Education Trust (SIET) and Tertiary Education Loan Scheme

610,947

682,389

(iii)

School Pocket Money Fund (SPMF)

18,740

79,515

(iv)

Project Spark

5,394

81,182

(v)

Singapore Press Holding (SPH) Foundation Newspaper Project

(vi)

Additional Top-up grant

373,472

–

(vii)

Project Give Donations

784,843

1,478,773

(viii) Youth Development Programmes

1,156,556

1,494,282

(ix)

565,129

410,343

4,206,465

5,084,562

(ii)

(i)

2013

Single Parent Programme/Sponsorships

671,384

794,348

20,000

63,730

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 grant. 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 the organisations recognise the immense opportunity to leverage on the synergy between the two organisations. The collaborative arrangement has been set to manage SIET donations and its disbursements to students who qualify for financial assistance for their course of study at the tertiary institution and other schemes administered by SIET. 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 grant 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. FS 18

Singapore Indian Development Association Financial statements Year ended 31 December 2013

(iv) Project Spark roject Spark (Successful Parents and Resilient kids) is a collaborative effort between Temasek Cares (a P 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 Straits Times newspaper and SPH will sponsor the subscription costs. The balances shown above represent grants/ donations that were unutilised as at the end of the financial year.

(vi) Additional Top-up Grant The Government of Singapore vide the 2013 Budget, announced additional Top-up grant of $10 million to all self-help groups for two years. The Association is entitled to receive $1.8 million with an annual cap of $900,000 each year to enhance the Association’s programmes. The balances shown above represent grant that were unutilised as at the end of the financial year. (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 Campbell Lane and through tele-poll in conjunction with the Project Give Charity Show on Mediacorp’s Vasantham TV Channel. (viii) Youth Development Programmes Youth Development Programmes are specific programmes under the funding support of $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.

FS 19

Singapore Indian Development Association Financial statements Year ended 31 December 2013

(ix) Single Parent Programme/Sponsorships Single Parent programme provides holistic assistance to the parent and the children. Children of single parent 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.

12 Resources expended on charitable activities and governance costs Note

2013

2012

$

$

(i)

Charitable activities

Education programmes

Tuition programmes:

- STEP programme

3,470,340

3,770,051

- Project Teach

1,532,287

1,453,256

Other education programmes:

- Enrichment programmes

387,732

428,430

- Bursary/Scholarships

776,360

1,030,586

- Staff costs

1,421,356

1,383,135

- Support costs

2,027,415

2,012,978

9,615,490

10,078,436

13

Family services

- Casework and counselling

194,522

232,515

- School pocket money fund

115,515

92,320

- Single Parents Programme

94,596

73,251

- Other programmes

423,847

582,591

- Staff costs

881,179

690,785

- Support costs

739,747

951,400

2,449,406

2,622,862

13

FS 20

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Note

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

Parent Programmes - Preschool programmes - Programme for Parents - Staff costs - Support costs

Children Programmes - Numeracy and Literacy programme - Programme for Children - Staff costs - Support costs

Community Engagement and Volunteer Management - Networking initiatives - Collaborative Programmes - Volunteer management - Staff costs - Support costs

Corporate and Marketing Communications - Corporate communications - Market communications - Staff costs - Support costs

(ii) Administrative and Governance costs - Professional Charges - Temporary Occupation Licence (TOL) * - Support costs

13

13

13

13

13

13

2013 $

2012 $

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

154,664 246,996 453,900 339,608 1,195,168

61,495 83,963 399,243 231,110 775,811

8,850 71,670 395,320 210,170 686,010

160,590 43,758 380,142 202,869 787,359

74,689 155,966 357,628 210,035 798,318

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

155,167 96,938 57,917 570,775 339,544 1,220,341

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

78,866 4,893 47,932 304,234 435,925

24,265 433,581 1,313,955 1,771,801

– 433,581 918,823 1,352,404

* The Association occupies land owned by the Government of Singapore at 1, Beatty Road, Singapore 209943 and pays an annual Temporary Occupation Licence (TOL) fee expense. The expense is supported by the Grant from the Ministry of Culture, Community and Youth (MCCY) of $433,581 (2012: $433,581).

FS 21

Singapore Indian Development Association Financial statements Year ended 31 December 2013

The resources expended have been summarised as follows: 2013

2012

Direct costs

Support costs (note 13)

$

$

Education

7,588,075

2,027,415

9,615,490 8,065,458

2,012,978

10,078,436

Family services

1,709,659

739,747

2,449,406 1,579,142

951,400

2,530,542

Youth development programmes

941,528

295,704

1,237,232 855,560

339,608

1,195,168

Parent programmes

544,701

231,110

775,811 475,840

210,170

686,010

Children programmes

584,490

202,869

787,359 588,283

210,035

798,318

Community engagement and Volunteer management 660,883

286,615

947,498 880,797

339,544

1,220,341

Corporate and Marketing communications

166,878

345,345

512,223 131,691

304,234

435,925

Administrative and Governance costs

457,846

1,313,955

1,771,801 433,581

918,823

1,352,404

Programmes

Total $

Direct costs

Support costs (note 13)

Total

$

$

$

13 Support costs

Staff costs $

Maintenance and administrative expenses $

Depreciation expenses $

Total $

2013 Education programmes

1,126,582

809,952

90,881

2,027,415

Family services

385,410

277,088

77,249

739,747

Youth development programmes

148,235

106,573

40,896

295,704

Parent programmes

118,588

85,258

27,264

231,110

Children programmes

88,940

63,944

49,985

202,869

Community engagement and Volunteer management

148,235

106,572

31,808

286,615

Corporate and Marketing communications

196,693

103,211

45,441

345,345

Administrative and Governance costs

711,525

511,549

90,881

1,313,955

Total

2,924,208

2,064,147

454,405

5,442,760

FS 22

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Staff costs $

Maintenance and administrative expenses $

Depreciation expenses $

Total $

2012 Education programmes

963,770

888,571

160,637

2,012,978

Family services

592,867

295,124

63,409

951,400

Youth development programmes 138,770

175,474

25,364

339,608

Parent programmes

92,091

101,170

16,909

210,170

Children programmes

92,091

101,035

16,909

210,035

Community engagement and Volunteer management

138,770

175,410

25,364

339,544

Corporate and Marketing communications

181,658

92,985

29,591

304,234

Administrative and Governance costs

502,048

332,228

84,547

918,823

Total

2,702,065

2,161,997

422,730

5,286,792

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 expenses are allocated to charitable activities based on floor area occupied.

14 Net deficit for the year The following items have been included in arriving at net deficit for the year: 2013

2012

$

$

Staff related costs

7,146,998

6,601,540

Central Provident Fund (CPF) contributions (included in staff costs)

830,875

776,616

Depreciation

454,405

422,729

15 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.

FS 23

Singapore Indian Development Association Financial statements Year ended 31 December 2013

16 Key management personnel 2013

2012

$

$

Remuneration paid/payable to key management personnel Short-term employment benefits

720,157

695,973

Salary above $200,000

2

2

Salary within range $100,000 to $200,000

1

1

Total

3

3

Salary range

The key management personnel remuneration comprise remuneration paid to the top three (2012: three) key executives including the Chief Executive Officer. One of the key management personnel is seconded from Health Sciences Authority with effect from 2010. The Trustees and Executive Committee members do not receive any remuneration from the Association.

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 • 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.

FS 24

Singapore Indian Development Association Financial statements Year ended 31 December 2013

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 a variety of financial risks: credit risk, liquidity risk and market risk (including 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.

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 in receivables arises principally from receivables, investments and cash and cash equivalents.

The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.

The Association establishes an allowance for impairment that represents its estimate of incurred losses, only when required. The main components of this allowance are a specific loss component that relates specifically to individually significant exposures.

Receivables The Association’s exposure to the credit risk is low as most of its receivables are from government agencies. As at the end of the financial year, approximately 80% of the Association’s receivables are due from three counterparties (2012: 84%).

The ageing of receivables at the statement of financial position date was: 2013

2012

Not past due

$ 3,842,228

$ 3,092,034

Past due 365 days

146,400

70,000

3,988,628

3,162,034

There is no allowance for receivables required as at 31 December 2013 (2012: Nil).

The Association believes that the unimpaired amounts that are past due by more than 365 days are still collectible, based on historic payment behaviour.

FS 25

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Financial assets - Investments The Association strives to invest a portion of its funds in bonds of good credit quality, whenever possible.

For investment operations, the Investment Committee adopts very stringent quantitative and qualitative criteria, including financial statement analysis, type of securities, credit ratings and quality of management in selecting issuers of financial instruments that the Association invests in.

Investments in debt securities are assessed using stringent investment criterion and this includes, but is not limited to, a thorough analysis of each debt security’s terms and conditions, the availability and quality of the guarantor, as well as financial strength of the issuer.

There is no significant concentration of credit risk in relation to these investments.

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 on Standard & Poor’s financial strength ratings. As at the statement of financial position date, the Association’s cash and cash equivalents are placed with four financial institutions (2012: four).

Derivatives The derivatives during the year were entered into with banks and financial institutions counterparties, which are regulated and rated A and above on Standard & Poor’s financial strength ratings. There were no such derivatives as at year-end.

Liquidity risk Liquidity risk is the risk that the Association will not be able to meet its financial obligations as they fall due. 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.

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

Based on the contractual maturities, the Association’s financial liabilities mature within one year from the balance sheet date, and the fair values approximate their carrying amounts.

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 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.

FS 26

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Foreign currency risk The Association’s exposure to foreign 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 United States Dollar, Euro and Hong Kong Dollar.

The Association enters into forward foreign exchange contracts to manage its exposure to foreign currency risk attributable to its investment activities. Under the forward foreign exchange contracts, the Association agrees to exchange specific foreign currency amounts at an agreed future date at a specified exchange rate. Such contracts enable the Association to mitigate the risk of adverse movements in foreign exchange rates. The Association therefore considers avoidable currency risk exposure to be minimal. As at 31 December 2013, no forward exchange contracts were outstanding (2012: Nil).

The Association’s foreign currency exposures are as follows: 2013

2012

$

$

Financial assets – investments US Dollar

8,976,033

10,785,531

Euro

14,164

21,292

Hong Kong Dollar

106

607,483

Other currencies

1

226,512

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

Net deficit $ 31 December 2013 US Dollar

(897,603)

Euro

(1,416)

Hong Kong Dollar

(11)

31 December 2012 US Dollar

(1,078,553)

Euro

(2,129)

Hong Kong Dollar

(60,748)

A 10% weakening of the Singapore dollar against those currencies at 31 December 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.

FS 27

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Interest rate risk The Association’s exposure to market risk for changes in interest rates relates to the interest bearing cash and cash equivalents and debt securities.

At the reporting date, the interest rate profile of the interest-bearing financial instruments, as reported to the management, was as follows: Nominal amount 2013

2012

$

$

Fixed rate instruments Fixed deposits with banks

1,488,783

640,599

Debt securities

2,802,157

7,765,892

4,290,940

8,406,491

–

2,510,596

4,290,940

10,917,087

Variable rate instruments Debt securities

At the reporting date, management assessed that an increase/(decrease) of 25 basis points in the interest rates would have no significant impact to the results of the Association (2012: 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 and expenditure. A 10% increase or decrease in the underlying market prices at the reporting date, with all variables held constant would decrease or increase the net deficit by $661,029 (2012: $2,347,488).

Capital/Funds management The Association is a society with no share capital. The Association builds up its Capital/Funds from donations received and also through prudent management of its financial resources. The capital of the Association include reserve fund in its Accumulated Fund.

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.

FS 28

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Ratio between the Association’s annual operating expenditure and its funds is as follows: 2013

2012

$

$

Total funds at 31 December

26,160,458

26,752,650

Annual operating expenditure

18,225,213

18,849,043

Ratio of funds to annual operating expenditure

1.4:1

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 capital/funds requirements.

Accounting classification and fair values Fair values versus carrying amounts The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

Loans and receivables $

Fair value through income and expenditure $

Other financial liabilities $

1,700,000

–

Donation receivable - Central

Provident Fund Board Scheme 684,688

Total carrying amount $

Fair value $

–

1,700,000

1,700,000

–

–

684,688

684,688

Donation receivable - Singapore Totalisator Board 875,000

–

–

875,000

875,000

Deposits and other receivables

815,316

–

–

815,316

815,316

Financial assets - investments

15,115,412

6,610,285

–

21,725,697

21,725,697

Cash and cash equivalents

4,928,787

–

–

4,928,787

4,928,787

Other payables and accrued expenses

–

–

(1,341,582) (1,341,582) (1,341,582)

31 December 2013 Government subvention receivable

Unutilised specific grants/donations

(4,206,465) (4,206,465) (4,206,465) 24,119,203

6,610,285

(5,548,047) 25,181,441

25,181,441

FS 29

Singapore Indian Development Association Financial statements Year ended 31 December 2013

Loans and receivables $

Fair value through income and expenditure $

Other financial liabilities $

1,700,000

–

–

1,700,000

1,700,000

Donation receivable - Central

Provident Fund Board Scheme 658,822

–

–

658,822

658,822

Donation receivable Singapore Totalisator Board

375,000

–

–

375,000

375,000

Deposits and other receivables

461,663

–

–

461,663

461,663

Financial assets - investments

1,166,000

23,474,877

–

24,640,877

24,640,877

Cash and cash equivalents

4,022,565

–

–

4,022,565

4,022,565

Other payables and accrued expenses

–

–

(1,195,456) (1,195,456) (1,195,456)

Unutilised specific grants/donations

–

–

(5,084,562) (5,084,562) (5,084,562)

8,384,050

23,474,877

(6,280,018) 25,578,909

Total carrying amount $

Fair value $

31 December 2012 Government subvention receivable

25,578,909

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.

• 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).

Level 1 $

Level 2 $

Level 3 $

Total $

31 December 2013 Financial assets designated at fair value through income and expenditure

3,935,485

2,674,800

–

6,610,285

17,192,122

6,282,755

–

23,474,877

31 December 2012 Financial assets designated at fair value through income and expenditure

FS 30