Economic Development Board Annual Report and
Audited Financial Statements 2014/2015
S. 3 of 2015
Presented to Parliament pursuant to Article 24 of the
Economic Development Board Act.
Ordered by Parliament to lie upon the Table:
15 September 2015
Annual Report
2014/15_
Content
Chairman’s message2
2014 investment commitments by industry4
FAI investment commitments5
TBE investment commitments8
VA expected to be generated11
Total skilled employment created12
EDB ANNUAL REPORT 2014/15
PAGE 1
Chairman’s message
Singapore’s independence came at a turbulent
time. The country’s fate was uncertain and
unemployment levels were high. But as we reflect
on the past fifty years, there is much to celebrate.
Singapore’s real gross domestic product (GDP)
has grown by almost 40 times, from S$10 billion
in 1965 to S$380 billion in 2014. And Singapore’s
GDP per capita in 2013, based on purchasing
power parity, was the fourth highest in the world,
putting it ahead of all the G7 economies.
Singapore a key partner for
international companies
The development of our economy has benefitted
immensely from the capital, technology and knowhow that international companies introduced
to Singapore. Their presence has enabled the
Singaporean workforce and local businesses
to plug into the global marketplace, and for
Singapore to become one of the most competitive
places to do business – Singapore ranked
2nd in the World Economic Forum’s Global
Competitiveness Report 2014–2015 for the fourth
year running. As a small country and global city,
international companies will continue to play a
vital role in Singapore’s economic success.
EDB’s performance
EDB achieved strong investment commitments
in 2014, having met or exceeded our forecast for
EDB ANNUAL REPORT 2014/15
PAGE 2
all indicators, and created a total of 16,100 new
skilled jobs.
For 2015, EDB expects to continue with the
trend of a more moderate flow of investment
commitments, given our deliberate effort since
2013 to focus on attracting investments that
are consistent with our stage of economic
development.
We are also working closely with the base of
companies in Singapore to make more productive
use of their assets and resources, and also to create
new businesses to drive their top-line growth. The
increase in emphasis on innovation as the driver
of economic growth in Singapore will enable all
parties to future-proof their success.
Singapore’s own needs could catalyse some of
these new businesses, while other opportunities
may result from partnerships between public
sector research capabilities and industry players.
More importantly, with the growth of Asia’s
economy, there will be demand for new products,
services and solutions that meet the unique market
needs and preferences in this part of the world.
For instance, the bulk of the global middle class
growth is expected to come from Asia. According
to Organisation for Economic Co-operation and
Development (OECD), Asia will account for 66
per cent of the middle-class population in the
world by 2030, compared to 28 per cent in 2009.
Singapore’s strategic location, regional
Chairman’s message
Singapore’s strategic
location, regional
connectivity and
insights about the
emerging Asian
markets have and
will enable us to play
a valuable role for
companies keen on
tapping the region’s
growth
connectivity and insights about the emerging
Asian markets have and will enable us to play a
valuable role for companies keen on tapping the
region’s growth.
Conclusion
I would like express my gratitude to EDB’s
pioneers and to the companies that took the leap
of faith by investing in Singapore over the past five
decades.
We look forward to building upon this
wonderful legacy by holding true to our founding
traditions and principles. These include the
courage and imagination to dream big for
Singapore, the can-do spirit and determination to
make things happen, the humility to forge win-win
partnerships with our investors and stakeholders,
and in so doing create even greater success in the
years ahead for Singapore and Singaporeans, and
for all who have the trust to invest in our nation.
DR BEH SWAN GIN
Chairman
Singapore Economic Development Board
EDB ANNUAL REPORT 2014/15
PAGE 3
2014 investment commitments by industry
Industry FAI (S$ billion) Electronics TBE (S$ billion) 1.6
Expected VA per annum (S$ billion) 0.2
Skilled Employment
0.7
572
Chemicals2.60.4
0.8
698
Biomedical Manufacturing
0.8
0.4
0.9
675
Precision Engineering
0.3
0.3
0.3
1,201
Transport Engineering0.80.8
0.4 1,456
General Manufacturing Industries
0.6
0.1
0.6
336
Infocommunications & Media
2.5
0.5
0.8
496
Headquarters & Professional Services
1.2
3.0
5.5
6,920
Engineering & Environmental Services
0.5
0.8
2.0
2,226
Logistics0.60.4
0.4 1,290
Education / Healthcare Services
0.3
0.1
0.1
243
Total
11.8
7.0
12.5
16,113
FAI (Fixed Asset Investments) refers to capital investment in facilities, equipment and machinery.
TBE (Total Business Expenditure) refers to a company’s incremental operating expenditure in Singapore (excluding depreciation). The major components include wages and rental.
TBE was not measured before 2005.
VA (Value Added) measures the direct contribution to Singapore’s Gross Domestic Product (GDP) excluding multiplier effects. The major components include wages and profit.
Skilled employment is defined as occupations in the Professional, Manager, Executive, Technician and Skilled Production Craftsman categories.
EDB ANNUAL REPORT 2014/15
PAGE 4
FAI investment commitments (2005-2014)
S$b
20.0
18.0
18.0
17.2
16.0
16.0
14.0
12.9
12.0
13.7
11.8
10.0
12.1
11.8
2013
2014
10.4
9.4
8.0
6.0
4.0
2.0
0.0
2005
2006
2007
2008
EDB ANNUAL REPORT 2014/15
2009
2010
PAGE 5
2011
2012
FAI investment commitments (2013, 2014)
By industry, 2013
By industry, 2014
Total:
S$12.1 billion
Total:
S$11.8 billion
Electronics
Chemicals
Infocommunications & Media
Engineering & Environmental Services
Biomedical Manufacturing
Headquarters & Professional Services
Transport Engineering
Precision Engineering
Logistics
Education & Healthcare Services
General Manufacturing Industries
S$3.3b26.9%
S$2.5b20.7%
S$1.5b12.5%
S$0.9b7.8%
S$0.8b6.6%
S$0.7b6.0%
S$0.7b5.7%
S$0.6b4.8%
S$0.6b4.8%
S$0.5b3.4%
S$0.1b0.8%
EDB ANNUAL REPORT 2014/15
Chemicals
Infocommunications & Media
Electronics
Headquarters & Professional Services
Biomedical Manufacturing
Transport Engineering
General Manufacturing Industries
Logistics
Engineering & Environmental Services
Precision Engineering
Education & Healthcare Services
PAGE 6
S$2.6b22.0%
S$2.5b21.2%
S$1.6b13.6%
S$1.2b10.2%
S$0.8b6.8%
S$0.8b6.8%
S$0.6b5.1%
S$0.6b5.1%
S$0.5b4.2%
S$0.3b2.5%
S$0.3b2.5%
FAI investment commitments (2013, 2014)
USA
Europe
Singapore
Others
Japan
China
India
By region, 2013
By region, 2014
Total:
S$12.1 billion
Total:
S$11.8 billion
S$3.7b30.7%
S$3.3b27.1%
S$3.1b25.9%
S$0.9b7.5%
S$0.7b5.5%
S$0.3b2.6%
S$0.1b0.7%
EDB ANNUAL REPORT 2014/15
Others
Europe
Singapore
USA
China
Japan
India
PAGE 7
S$4.1b34.8%
S$3.1b26.3%
S$2.0b16.9%
S$1.8b15.3%
S$0.5b4.2%
S$0.3b2.5%
S$0.01b0.02%
TBE investment commitments (2005-2014)
S$b
8.0
7.8
7.2
7.0
7.3
7.0
6.8
6.2
6.0
5.0
6.2
6.1
5.8
5.2
4.0
3.0
2.0
1.0
0.0
2005
2006
2007
2008
EDB ANNUAL REPORT 2014/15
2009
2010
PAGE 8
2011
2012
2013
2014
TBE investment commitments (2013, 2014)
By industry, 2013
By industry, 2014
Total:
S$7.8 billion
Total:
S$7.0 billion
Headquarters & Professional Services
Engineering & Environmental Services
Infocommunications & Media
Transport Engineering
Electronics
Chemicals
Logistics
Precision Engineering
Biomedical Manufacturing
Education & Healthcare Services
General Manufacturing Industries
S$1.8b23.6%
S$1.8b22.6%
S$1.5b18.9%
S$0.9b11.5%
S$0.6b8.1%
S$0.3b4.2%
S$0.2b3.0%
S$0.2b3.0%
S$0.2b2.6%
S$0.1b1.9%
S$0.1b0.6%
EDB ANNUAL REPORT 2014/15
Headquarters & Professional Services
Engineering & Environmental Services
Transport Engineering
Infocommunications & Media
Biomedical Manufacturing
Chemicals
Logistics
Precision Engineering
Electronics
Education & Healthcare Services
General Manufacturing Industries
PAGE 9
S$3.0b42.9%
S$0.8b11.4%
S$0.8b11.4%
S$0.5b7.1%
S$0.4b5.7%
S$0.4b5.7%
S$0.4b5.7%
S$0.3b4.3%
S$0.2b2.9%
S$0.1b1.5%
S$0.1b1.4%
TBE investment commitments (2013, 2014)
USA
Singapore
Europe
Japan
Others
China
India
By region, 2013
By region, 2014
Total:
S$7.8 billion
Total:
S$7.0 billion
S$2.5b31.9%
S$2.0b25.1%
S$1.8b23.7%
S$0.6b7.2%
S$0.6b7.1%
S$0.2b2.9%
S$0.2b2.1%
EDB ANNUAL REPORT 2014/15
Europe
USA
Singapore
Others
Japan
China
India
PAGE 10
S$2.3b32.8%
S$1.6b22.9%
S$1.3b18.6%
S$0.9b12.9%
S$0.5b7.1%
S$0.3b4.3%
S$0.1b1.4%
VA expected to be generated (2005-2014)
S$b
25.0
20.0
20.3
16.7
15.0
13.4
10.0
15.5
14.7
14.4
12.5
12.5
11.6
10.8
5.0
0.0
2005
2006
2007
2008
EDB ANNUAL REPORT 2014/15
2009
2010
PAGE 11
2011
2012
2013
2014
Total skilled employment created (2005-2014)
‘000s
25.0
21.4
21.3
20.0
20.3
18.6
18.6
17.2
15.0
16.4
15.9
16.1
15.2
10.0
5.0
0.0
2005
2006
2007
2008
EDB ANNUAL REPORT 2014/15
2009
2010
PAGE 12
2011
2012
2013
2014
About EDB
The Singapore Economic Development Board (EDB) is the
lead government agency for planning and executing strategies
to enhance Singapore’s position as a global business centre.
EDB dreams, designs and delivers solutions that create value
for investors and companies in Singapore. Our mission is
to create for Singapore sustainable economic growth with
vibrant business and good job opportunities. EDB’s Home
strategy articulates how we are positioning Singapore for the
future. It is about extending Singapore’s value proposition to
businesses not just to help them improve their bottom line,
but also to help them grow their top line through establishing
and deepening strategic activities in Singapore to drive their
business, innovation and talent objectives in Asia and globally.
Contact us
EDB Head office (Singapore)
250 North Bridge Road
#28-00 Raffles City Tower
Singapore 179101
Tel: (65) 6832-6832
Email: clientservices@edb.gov.sg
edb.gov.sg
Company Registration No. T08GB0012H
Economic Development Board and its subsidiaries
Annual Financial Statements
Year ended 31 March 2015
Building a better
working world
Economic Development Board and its subsidiaries
General information
Index
Pages
Statement by Board of Directors
Independent Auditor's Report
2
Statements of Financial Position
5
Statements of Comprehensive Income
6
Statements of Changes in Equity
7
Consolidated Statement of Cash Flows
Notes to the Financial Statements
10
Economic Development Board and its subsidiaries
Statement by Board of Directors
We, Beh Swan Gin and Yeoh Keat Chuan, being two of the directors of Economic Development
Board, do hereby state that, in the opinion of the directors,
(a)
the accompanying financial statements set out on pages 5 to 59 are properly drawn up so as
to give a true and fair view of the state of affairs of the Economic Development Board (the
"Board") and its subsidiaries (the "Group") as at 31 March 2015 and the results, changes in
equity of the Board and of the Group and cash flows of the Group for the year then ended on
that date in accordance with the provisions of the Economic Development Board Act
(Chapter 85, 2012 Revised Edition) and Statutory Board Financial Reporting Standards;
(b)
the receipts, expenditure, investment of moneys and the acquisition and disposal of assets
by the Board during the year are, in all material respects, in accordance with the provisions
of the Act; and
(c)
at the date of this statement, there are reasonable grounds to believe that the Board will be
able to pay its debts as and when they fall due.
The Board of Directors has, on the date of this statement, authorised these financial statements for
issue.
On behalf of the Board of Directors
~~~
Beh Swan Gin
Chairman
Ye Keat Chuan
Managing Director
19 June 2015
- 1 -
Economic Development Board and its subsidiaries
Independent Auditor's Report
Members of the Board
Economic Development Board
Report on the financial statements
We have audited the accompanying financial statements of Economic Development Board (the
"Board") and its subsidiaries (collectively, the "Group") set out on pages 5 to 59, which comprise the
statements of financial position of the Board and of the Group as at 31 March 2015, the statements
of comprehensive income and statements of changes in equity of the Board and of the Group and
the consolidated statement of cash flows for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with the provisions of the Economic Development Board Act,(Chapter 85, 2012 Revised
Edition)(the "AcY') and Statutory Board Financial Reporting Standards, and for such internal control
as management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor's 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 judgment, 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 the 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.
-2-
Economic Development Board and its subsidiaries
Independent Auditor's Report
Members of the Board
Economic Development Board
Opinion
In our opinion, the consolidated financial statements of the Group and the statement of financial
position, statement of comprehensive income and statement of changes in equity of the Board are
properly drawn up in accordance with the provisions of the Act and Statutory Board Financial
Reporting Standards to present fairly, in all material respects, the state of affairs of the Board and of
the Group as at 31 March 2015 and the results and changes in equity of the Board and of the Group
and cash flows of the Group for the year ended on that date.
Report on other legal and regulatory requirements
Management's responsibility for compliance with legal and regulatory requirements
Management is responsible for ensuring that the receipts, expenditure, investment of moneys and
the acquisition and disposal of assets, are in accordance with the provisions of the Act. This
responsibility includes implementing accounting and internal controls as management determines are
necessary to enable compliance with the provisions of the Act.
Auditor's responsibility
Our responsibility is to express an opinion on managements compliance based on our audit of the
financial statements. We conducted our audit in accordance with Singapore Standards on Auditing.
We planned and performed the compliance audit to obtain reasonable assurance about whether the
receipts, expenditure, investment of moneys and the acquisition and disposal of assets, are in
accordance with the provisions of the Act.
Our compliance audit includes obtaining an understanding of the internal control relevant to the
receipts, expenditure, investment of moneys and the acquisition and disposal of assets; and
assessing the risks of material misstatement of the financial statements from non-compliance, if any,
but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Because of the inherent limitations in any accounting and internal control system, non-compliances
may nevertheless occur and not be detected.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion on management's compliance.
-3-
Economic Development Board and its subsidiaries
Independent Auditor's Report
Members of the Board
Economic Development Board
Opinion
In our opinion:
(a)
the receipts, expenditure, investment of moneys and the acquisition and disposal of assets
by the Board during the year are, in all material respects, in accordance with the provisions
of the Act.
(b)
proper accounting and other records have been kept, including records of all assets of the
Board and of those subsidiaries incorporated in Singapore of which we are the auditors
whether purchased, donated or otherwise.
Ernst &Young LLP
Public Accountants and
Chartered Accountants
Singapore
19 June 2015
-4-
Economic Development Board and its subsidiaries
Statements of Financial Position
As at 31 March 2015
Board
Group
5
6
$
$
2014
3,201,850
1,000
3,201,850
1,000
3,201,850
1,000
3,201,850
1,000
190,273,095
181,479,877
187,165,942
179,100,295
86,491,322
84,952,089
86,491,322
84,952,089
279,967,267
269,634,816
276,860,114
267,255,234
(121,714,193)
(63,889,015)
(121,714,193)
-
FUNDS AND RESERVES
Capital account
Share capital
Accumulated surplus
- General fund
Economic Development
Scholarship Fund
2015
$
2014
2015
$
Note
23
(63,889,015)
Represented by:
ASSETS
Non-current assets
Property, plant and equipment
Intangible assets
Available-for-sale investments
Investments in subsidiaries
8
9
10
11
14,519,927
730,729
6,923,592
Non-current liabilities
Provision
Deferred capital grants
17,663,733
1,091,635
6,923,592
250,000
22,358,000
25,928,960
209,715,662
7,986,577
2,499,421
127,822,827
201,345,715
2,826,480
2,091,134
124,664,522
209,715,662
8,010,956
2,431,541
119,490,556
201,345,715
2,794,162
2,024,311
117,226,514
348,024,487
330,927,851
339,648,715
323,390,702
370,198,735
356,770,677
362,006,715
349,319,662
15
58,303,526
55,967,031
53,316,476
50,963,879
16
17
2,870,313
1,626,035
97,817
2,323,576
2,072,407
68,281
2,870,313
1,626,035
2,323,576
2,072,407
62,897,691
60,431,295
57,812,824
55,359,862
21,645,411
5,688,366
19,620,135
7,084,431
21,645,411
5,688,366
19,620,135
7,084,431
27,333,777
26,704,566
27,333,777
26,704,566
90,231,468
87,135,861
85,146,601
82,064,428
279,967,267
269,634,816
276,860,114
267,255,234
(63,889,015)
(121,714,193)
(63,889,015)
(121,714,193)
12
13
14
17
18
Net assets
23
—
25,842,826
Total liabilities
Net liabilities of agency and
trust funds
14,453,679
730,729
6,923,592
250,000
22,174,248
Total assets
LIABILITIES
Current liabilities
Other payables and accruals
Provision for contribution to
Consolidated Fund
Provision
Current tax payable
17,827,599
1,091,635
6,923,592
—
Current assets
Financial assets at fair value
through profit or loss
Other receivables
Prepayments
Cash and cash equivalents
—
Agency and trust funds
—
7
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
-5-
Economic Development Board and its subsidiaries
Statements of Comprehensive Income
For the financial year ended 31 March 2015
Board
Group
2014
$
Note
2015
$
2014
$
2015
$
19
20
17,391,010
11,412,507
17,894,653
1,658,155
6,340,738
11,390,984
6,261,036
1,644,468
28,803,517
19,552,808
17,731,722
7,905,504
156,550,297
2,782,700
151,416,102
3,104,359
146,291,675
2,782,700
140,602,950
3,104,359
159,332,997
154,520,461
149,074,375
143,707,309
(130,529,480)
(134,967,653)
(131,342,653)
(135,801,805)
146,952,471
1,249,375
147,544,761
1,900,140
146,952,471
1,249,375
147,544,761
1,900,140
148,201,846
149,444,901
148,201,846
149,444,901
17,672,366
14,477,248
16,859,193
13,643,096
(2,870,313)
(85,602)
(2,323,576)
(66,320)
(2,870,313)
—
(2,323,576)
—
14,716,451
12,087,352
13,988,880
11,319,520
—
—
—
—
14,716,451
12,087,352
13,988,880
11,319,520
Income
Revenue
Other income
Expenditure
Operating expenses
Other expenses
21
22
Deficit before grants, income tax
and contribution to
Consolidated Fund
Grants
Operating grants from Government
Deferred capital grants amortised
26
18
Surplus for the year before
income tax and contribution
to Consolidated Fund
Contribution to Consolidated Fund
Income tax expense
Surplus for the year
16
27
Other comprehensive income for
the year
Total comprehensive income for
the year
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
~:~
Economic Development Board and its subsidiaries
Statements of Changes in Equity
For the financial year ended 31 March 2015
Accumulated surplus
Share
capital
(Note 6)
General
fund
Total
$
$
$
$
$
Capital
account
(Note 5)
Economic
Development
Scholarship
Fund
(Note 7)
Group
At 1 April 2013
Total comprehensive
income for the year
87,018,796
290,157,464
1,000
199,935,818
—
—
14,154,059
—
—
(32,610,000)
—
(32,610,000)
—
—
(32,610,000)
—
(32,610,000)
3,201,850
(2,066,707)
12,087,352
Contributions by and
distributions to owner
Dividend paid of $32,610
per share
At 31 March 2014 and 1
Apri12014
Total comprehensive
income for the year
1,000
181,479,877
84,952,089
269,634,816
_
_
13,177,218
1,539,233
14,716,451
_
_
(4,384,000)
—
(4,384,000
—
—
(4,384,000)
—
(4,384,000)
3,201,850
Contributions by and
distributions to owner
Dividend paid of $4,384
per share
At 31 March 2015
3,201,850
1,000
190,273,095
86,491,322
279,967,267
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
-7-
Economic Development Board and its subsidiaries
Statements of Changes in Equity
For the financial year ended 31 March 2015
Accumulated surplus
Share
capital
(Note 6)
General
fund
Total
$
$
$
$
$
Capital
account
(Note 5)
Economic
Development
Scholarship
Fund
(Note 7)
Board
At 1 April 2013
Total comprehensive
income for the year
3,201,850
87,018,796
288,545,714
1,000
198,324,068
—
—
13,386,227
—
—
(32,610,000)
—
32,610,000)
—
—
(32,610,000)
—
(32,610,000)
(2,066,707)
11,319,520
Contributions by and
distributions to owner
Dividend paid of $32,610
per share
At 31 March 2014 and 1
Apri12014
Total comprehensive
income for the year
1,000
179,100,295
84,952,089
267,255,234
—
—
12,449,647
1,539,233
13,988,880
—
—
(4,384,000)
—
(4,384,000
—
—
(4,384,000)
—
(4,384,000)
3,201,850
Contributions by and
distributions to owner
Dividend paid of $4,384
per share
At 31 March 2015
3,201,850
1,000
187,165,942
86,491,322
276,860,114
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
Economic Development Board and its subsidiaries
Consolidated Statement of Cash Flows
For the financial year ended 31 March 2015
Note
Cash flows from operating activities
Deficit before grants, income tax and contribution to
Consolidated Fund
Adjustments for:
Depreciation of property, plant and equipment
Amortisation of intangible assets
Provision for employee benefits
Net change in fair value of financial assets at fair
value through profit or loss
Interest income from banks
Dividend income from available-for-sale investments
Property, plant and equipment written off
Gain on disposal of property, plant and equipment
(134,967,653)
20/22
20
20
21
20
(8,538,536)
(915,402)
(1,300,000)
741
(54,274)
327,270
(754,046)
—
68,085
(56,006)
(133,015,231)
(128,487,573)
(5,363,935)
(623,159)
2,657,603
(9,288,589)
(139,002,325)
(2,323,576)
(135,118,559)
(14,535,906)
(141,325,901)
(149,654,465)
(595,990)
(107,827)
(9,895,497)
(156,482)
75,947
—
879,704
(161)
1,300,000
80,315
2,000,000
834,866
(465)
—
1,551,673
(7,137,263)
Net cash flows used in operating activities
8
9
Net cash flows generated from /(used in)
investing activities
Cash flows from financing activities
Government grants received
Dividend paid
(130,529,480)
3,880,762
462,958
3,978,000
16
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from disposal of property, plant and
equipment
Proceeds from bonds on maturity
Interest received
Investment fees
Dividend received
2014
$
8
9
17
Changes in working capital:
Changes in other receivables and prepayments
Changes in other payables and accruals
Cash utilised in operations
Contribution to Consolidated Fund
2015
$
15
3,765,017
672,206
2,457,554
147,316,533
(4,384,000)
150,875,698
(32,610,000)
Net cash flows from financing activities
142,932,533
118,265,698
Net increase I (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
3,158,305
124,664,522
(38,526,030)
163,190,552
127,822,827
124,664,522
Cash and cash equivalents at end of year
14
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
~~
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
1.
Corporate information
Economic Development Board (the "Board") was established in 1961 under the provisions of
the Economic Development Board Act (Chapter 85) and is under the purview of the Ministry of
Trade and Industry. As a statutory board, the Board is subject to the directions of the Ministry
of Trade and Industry and is required to implement policies and policy changes as determined
by its supervisory ministry and other Government ministries such as the Ministry of Finance
from time to time. The Board's registered office and principal place of business is located at
250 North Bridge Road, #28-00 Raffles City Tower, Singapore 179101.
The primary function of the Board is to stimulate the growth, expansion and development of
the Singapore economy.
The Board also acts as the administrator or trustee for various funds including the Economic
Development Assistance Scheme (EDAS)fund, Research Innovation &Enterprise (RIE)fund,
Reinvestment Funds (RF), Energy Innovation Programme Office, and Scholarship and
Training Funds on behalf of the Government and other entities.
The primary activities of the subsidiaries are set out in Note 11 to the financial statements.
Basis of preparation
2.1
Statement
of
2.
compliance
2.2
Basis
of
The consolidated financial statements of the Group and the statement of financial position,
statement of comprehensive income and statement of changes in equity of the Board have
been prepared in accordance with the Statutory Board Financial Reporting Standards("SBFRS"). SB-FRS include Statutory Board Financial Reporting Standards, Interpretations of SBFRS and SB-FRS Guidance Notes as promulgated by the Accountant-General.
measurement
The financial statements are prepared on the historical cost basis except as disclosed below.
The accounting policies used by the Group have been applied consistently to all periods
presented in these financial statements, except as disclosed in Note 2.4.
2.3
Functional and presentation currency
The financial statements are presented in Singapore Dollars (SGD or $), which is the Group's
and the Board's presentation and functional currency.
2.4
Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year except
in the current financial year, the Group has adopted all the new and revised standards and
interpretations of SB-FRS (INT SB-FRS) that are effective for annual periods beginning on or
after 1 April 2014. The adoption of these standards and interpretations did not have any effect
on the financial performance or position of the Group and the Board.
- 10 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
2.
Basis of preparation (conYd)
2.5
Use of estimates and judgments
The preparation of financial statements in conformity with SB-FRS requires management to
make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expense. However, uncertainty
about these assumptions and estimates could result in outcomes that could require a material
adjustment to the carrying amount of the asset or liability affected in the future periods.
Judgment made in applying accounting policies
In the process of applying the Group's accounting policies, management has made the
following judgment, apart from those involving estimations, which has the most significant
effect on the amounts recognised in the consolidated financial statements:
(a)
Impairment ofavailable-for-sale investments
The Group considers and records impairment charges on available-for-sale
investments where there has been a significant or prolonged decline in the fair value
below their cost. The determination of what is `significant or `prolonged' requires
judgment. In making this judgment, the Group evaluates, among other factors, the
duration and extent to which the fair value of an investment is less than its cost. For
the financial years ended 31 March 2015 and 2014, there was no impairment loss
recognised for available-for-sale investments.
sources of estimation uncertai
The key assumptions concerning the future and other key sources of estimation uncertainty at
the end of each reporting period, that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year are discussed
below:
(a)
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds
its recoverable amount, which is the higher of its fair value less costs to sell and its
value in use. The fair value less costs to sell calculation is based on available data
from binding sales transactions in an arm's length transaction of similar assets or
observable market prices less incremental costs for disposing the asset. The value in
use calculation is based on a discounted cash flow model. The recoverable amount is
most sensitive to the discount rate used for the discounted cash flow model as well as
the expected future cash inflows and the growth rate used for extrapolation purposes.
The Group assesses whether there are any indicators of impairment for all nonfinancial assets at each reporting date. Non-financial assets are tested for impairment
when there are indicators that the carrying amounts may not be recoverable. For the
financial years ended 31 March 2015 and 2014, there was no impairment loss
recognised for non-financial assets.
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
2.
Basis of preparation (cont'd)
2.5
Use of estimates and judgments (cont'd)
(b)
Impairment of loans and receivables
The Group assesses at the end of each reporting period whether there is any objective
evidence that a financial asset is impaired. To determine whether there is objective
evidence of impairment, the Group considers factors such as the probability of
insolvency or significant financial difficulties of the debtor and default or significant
delay in payments.
Where there is objective evidence of impairment, the amount and timing of future cash
flows are estimated based on historical loss experience for assets with similar credit
risk characteristics. The carrying amount of the Group's loans and receivables at the
end of the reporting period is disclosed in Note 13 to the financial statements.
(c)
Employee benefits
The Group has a corporate bonus programme which has a long term staff benefit
feature for the recognition of staff services. In addition, there is a separate retention
programme to encourage high performing officers to stay on with the Group to take on
leadership roles. The obligations of these schemes are recognised as liabilities in the
statement of financial position and are determined based on the Group's best
estimates of salaries, length of stay and expected attrition rates of qualifying
employees. The carrying amount of the Group's provision for employment benefits at
31 March 2015 is $23,271,446 (2014: $21,692,542).
(d)
Useful lives of property, plant and equipment
The cost of property, plant and equipment excluding leasehold land is depreciated on
a straight-line basis over their estimated economic useful lives. Management
estimates the useful lives of these property, plant and equipment to be within 3 to 50
years. The useful lives of leasehold land are based on the remaining life of the lease.
Changes in the expected level of usage and technological developments could impact
the economic useful lives and the residual values of these assets, therefore future
depreciation charges could be revised. The carrying amount of the Group's property,
plant and equipment at the end of each reporting period is disclosed in Note 8 to the
financial statements.
- 12 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Summary of significant accounting policies
3.1
Basis
of
Basis
of
3.
consolidation and business combination
consolidation
The consolidated financial statements comprise the financial statements of the Board and its
subsidiaries as at the end of the reporting period. The financial statements of the subsidiaries
used in the preparation of the consolidated financial statements are prepared for the same
reporting date as the Board. Consistent accounting policies are applied to like transactions and
events in similar circumstances.
All intra-group balances, income and expenses resulting from intra-group transactions are
eliminated on consolidation.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group
obtains control, and continue to be consolidated until the date that such control ceases.
Business combination
Business combinations are accounted for by applying the acquisition method. Identifiable
assets acquired and liabilities assumed in a business combination are measured initially at
their fair value at the acquisition date. Acquisition-related costs are recognised as expenses in
the periods in which the costs are incurred and the services are received.
When the Group acquires a business, it assesses the financial assets and liabilities assumed
for appropriate classification and designation in accordance with the contractual terms,
economic circumstances and pertinent conditions as at the acquisition date.
Any contingent consideration to be transferred by the acquirer will be recognized at fair value
at the acquisition date. Subsequent changes to the fair value of the contingent consideration
which is deemed to be an asset or liability, will be recognized in accordance with SB-FRS 39
either in income or expense or as a change to other comprehensive income. If the contingent
consideration is classified as equity, it is not to be remeasured until it is finally settled within
equity.
In business combinations achieved in stages, previously held equity interests in the acquiree
are remeasured to fair value at the acquisition date and any corresponding gain or loss is
recognized in the statement of comprehensive income.
The Group elects for each individual business combination, whether non-controlling interest in
the acquiree (if any) is recognized on the acquisition date at fair value, or at the non-controlling
interests proportionate share of the acquiree's identifiable net assets.
Any excess of the sum of fair value of the consideration transferred in the business
combination over the net fair value of the acquiree's identifiable assets and liabilities is
recorded as goodwill. In instances where the latter amount exceeds the former, the excess is
recognised in the statement of comprehensive income on the acquisition date.
- 13 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (conYd)
3.2
Property, plant and equipment
Property, plant and equipment are measured at cost less accumulated depreciation and any
accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of
self-constructed assets includes the cost of materials, direct labour and any other costs
directly attributable to bringing the asset to a working condition for its intended use. 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 cost of replacing component 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 Group and its cost can be measured reliably. The costs of the
day-to-day servicing of property, plant and equipment are recognised in the statement of
comprehensive income as incurred.
The gain or loss arising on the disposal or retirement of an asset is determined as the
difference between the sales proceeds and the carrying amount of the asset and is recognised
in the statement of comprehensive income.
Depreciation on other property, plant and equipment is recognised in the statement of
comprehensive income on a straight-line basis over their estimated useful lives (or lease term,
if shorter) of each part of an item of property, plant and equipment.
The estimated useful lives are as follows:
Leasehold land
Properties and improvements
Furniture and fittings
Office and computer equipment
Electrical fittings and equipment
Motor vehicles
Period of the lease
5 to 50 years
5 years
3 to 5 years
5 years
3 to 5 years
Property, plant and equipment costing less than $2,000 are charged to the statement of
comprehensive income in the year of purchase.
Fully depreciated assets are retained in the financial statements until they are no longer in
use.
Depreciation methods, residual values and useful lives of property, plant and equipment are
reviewed, and adjusted as appropriate, at each reporting date.
Property, plant and equipment acquired and funded under Government grants are capitalised
and depreciated over their useful lives so as to match the related accretion of deferred capital
grant (please refer to Note 3.11).
- 14 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (cont'd)
3.3
Capital work-in-progress
Capital work-in-progress is stated at cost and is not depreciated. Expenditure relating to the
capital work-in-progress are capitalised when incurred. No depreciation is provided until the
capital work-in-progress is completed and the related property, plant and equipment are ready
for use.
3.4
Investment property
Investment property is property held to earn rental income. It does not include properties
occupied by the Group for administrative purposes.
When a portion of the property could not be leased out under a separate strata title, the entire
property is classified as investment property only if the portion that is occupied by the Group is
insignificant as compared to the entire property.
Depreciation on investment property is recognised in the statement of comprehensive income
on a straight-line basis over the lease term of the leasehold land.
Investment property is measured at cost less accumulated depreciation and any impairment
losses. It is derecognised when it has been disposed of. Any gain or loss on the disposal of
the investment property is recognised in the statement of comprehensive income in the year of
disposal.
Rental income from investment property is accounted for in the manner described in Note
3.16.
3.5
Intangible assets
Intangible assets consist mainly of computer software and development costs for various
computer application systems. They are capitalised on the basis of the costs incurred to bring
to use or develop the specific software. Costs associated with maintaining computer software
are recognised in the statement of comprehensive income as incurred.
Intangible assets are stated at cost less accumulated amortisation and any accumulated
impairment losses. Amortisation of intangible assets is recognised in the statement of
comprehensive income on a straight-line basis over their estimated useful lives of 3 years. No
amortisation is provided for intangible assets under development.
Intangible assets costing less than $2,000 are charged to the statement of comprehensive
income in the year of purchase.
Fully amortised assets are retained in the financial statements until they are no longer in use.
Intangible assets acquired and funded under Government grants are capitalised and
amortised over their useful lives so as to match the related accretion of deferred capital grant
(please refer to Note 3.11).
- 15 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (cont'd)
3.6
Impairment -non-financial assets
The carrying amounts of the Group's non-financial assets are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such indication exists, the
assets' recoverable amounts are estimated.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit
exceeds its estimated recoverable amount. Acash-generating unit is the smallest identifiable
asset group that generates cash flows that largely are independent from other assets and
groups. Impairment losses are recognised in the statement of comprehensive income.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use
and its fair value less costs to sell. In assessing value in use, the estimated future cash flows
are discounted to their present value using apre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset or cash-generating
unit.
Impairment losses recognised in prior periods are assessed at each reporting date for any
indications that the loss has decreased or no longer exists. A previously recognised
impairment loss is reversed only if there has been a change in the estimates used to
determine the recoverable amount since the last impairment loss was recognised. 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 if no impairment loss had been
recognised previously.
3.7
Subsidiaries
A subsidiary is an entity that is controlled by the Group. The Group controls an entity when it is
exposed, or has rights, to variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity.
In the Board's separate financial statements, investments in subsidiaries are accounted for at
cost less impairment losses.
3.8
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and fixed income
investments, unit trusts and bonds, available-for-sale financial assets, loans and other
receivables, cash and cash equivalents, loans and other payables and accruals.
A financial instrument is recognised when the Group becomes a party to the contractual
provisions of the instrument. The Group determines the classification of its financial
instruments at initial recognition.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments
not at fair value through profit or loss, any directly attributable transaction costs. Subsequent to
initial recognition, non-derivative financial instruments are measured as described below.
- 16 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (cont'd)
3.8
Non-derivative financial instruments(cont'd)
Financial assets at fair value through profit or loss
An instrument is classified as at fair value through profit or loss if it is acquired principally for
the purpose of selling in the short term or is designated as such upon initial recognition.
Financial instruments are designated as fair value through profit or loss if the Group manages
such investments and makes purchase and sale decisions based on their fair value in
accordance with the Group's documented risk management and investment strategies. Upon
initial recognition, attributable transaction costs are recognised in the statement of
comprehensive income as incurred. Subsequent to initial recognition, financial instruments at
fair value through profit or loss are measured at fair value, and changes therein are recognised
in the statement of comprehensive income.
The fair values of quoted investments are based on the current bid prices or net asset values
as at the reporting date. Any change in fair values is recognised in the statement of
comprehensive income.
Net gains or net losses on financial assets at fair value through profit or loss include exchange
differences, interest and dividend income.
Available-for-sale financial assets
Available-for-sale investments are non-derivative financial assets that are either designated in
this category or are not classified in the above category of financial assets. Subsequent to
initial recognition, they are measured at fair value and changes therein, are recognised directly
in other comprehensive income. When an investment is derecognised, the cumulative gain or
loss in other comprehensive income is reclassified to income or expense. Unquoted equity
investments whose fair value cannot be measured reliably are carried at cost less impairment
loss. Dividends from available-for-sale investments are recognised in the statement of
comprehensive income when the Group's right to receive payments is established.
Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market are classified as loans and receivables. Subsequent to initial recognition, loans
and receivables are measured at amortised cost using the effective interest method, less any
impairment losses. Gains and losses are recognised in the statement of comprehensive
income when the loans and receivables are derecognised or impaired, and through the
amortisation process.
Loans and receivables comprise cash and cash equivalents and other receivables. Cash and
cash equivalents comprise cash at bank and on hand including cash held with the AccountantGeneral's Department (AGD) and bank deposits, that are readily convertible to a known
amount of cash and which are subject to an insignificant risk of changes in value.
Financial liabilities
Financial liabilities comprise other payables and accruals. Subsequent to initial recognition,
financial liabilities are measured at amortized cost using the effective interest method. Gains
and losses are recognised in the statement of comprehensive income when the liabilities are
derecognised, and through the amortisation process.
- 17 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (cont'd)
3.8
Non-derivative financial instruments (cont'd)
Derecognition
Financial assets are derecognised when the Group's contractual rights to the cash flows from
the financial assets expire or if the Group transfers the financial asset to another party without
retaining control or transfers substantially all the risks and rewards of the asset. Financial
liabilities are derecognised when the Group's obligations specified in the contract expire or are
discharged or cancelled.
Regular way purchases and sales
Regular way purchases and sales of financial instruments are accounted for at trade date, i.e.,
the date that the Group commits itself to purchase or sell the instrument.
Impairment of financial assets
A financial asset not carried at fair value through profit or loss is assessed at each reporting
date to determine whether there is any objective evidence that it is impaired. A financial asset
is considered to be impaired if objective evidence indicates that one or more events have had
a negative effect on the estimated future cash flows of that asset.
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 estimated cash flows
discounted at the original effective interest rate.
Individually significant financial assets are tested for impairment on an individual basis. The
remaining financial assets are assessed collectively in groups that share similar credit risk
characteristics.
With the exception of available-for-sale investments, if, in a subsequent period, the amount of
the impairment loss decreases and the decrease can be related objectively to an event
occurring after the impairment loss was recognised, the previously recognised impairment loss
is reversed through the statement of comprehensive income to the extent the carrying amount
of the investment at the date the impairment is reversed does not exceed what the amortised
cost would have been had the impairment not been recognised.
In respect of available-for-sale investments, any subsequent increase in fair value after an
impairment loss, is recognised directly in other comprehensive income.
- 18 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (cont'd)
3.9
Derivative financial instruments
The Group engages external fund managers to manage some of its surplus funds. The Group
is exposed primarily to the financial risk of foreign exchange and interest rate fluctuations on
debt and equity securities and cash and cash equivalents placed by fund managers. The fund
managers hold derivative financial instruments limited to forward exchange contracts and bond
futures contracts to manage these risks. The use of hedging instruments is governed by the
Group's investment mandate which provides guidelines on the use of financial instruments
consistent with the Group's risk management strategy. With the exception of forward exchange
contracts and bond futures contracts, the Group does not hold any other derivative financial
instruments.
Derivatives are recognised initially at fair value; and attributable transaction costs are
recognised in the statement of comprehensive income. Subsequent to initial recognition,
derivatives are measured at fair values.
Fair values are obtained from quoted market prices in active markets, or by using valuation
techniques, including recent market transactions, where an active market does not exist.
Valuation techniques include discounted cash flow models and option pricing models as
appropriate. All derivatives are classified as assets when their fair value is positive, or as
liabilities when their fair value is negative.
All gains or losses from changes in the fair value of derivatives used by the fund managers as
described above are recognised in the statement of comprehensive income.
3.10
Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
benefits will be required to settle the obligation. Provision is reviewed at the end of each
reporting period and 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.
3.11
Grants
Government grants received for the establishment of the Group or for the purchase of nondepreciable assets are taken to capital account. They are recorded in the books when
received. Government grants received to meet current year's expenses are recognised in the
statement of comprehensive income.
Government grants and contributions received from other organisations for the purchase of
depreciable assets are taken to deferred capital grants account. The deferred capital grants
are recognised in the statement of comprehensive income over the periods necessary to
match the depreciation of the assets purchased with the related grants.
Government grants received by the respective Funds to meet operating expenses are
recognised by these Funds as income in the year these operating expenses were incurred.
Grants received in advance are taken to the fund balance account of these Funds.
- 19 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (cont'd)
3.12
Funds
General and Scholarship Funds
Assets and liabilities and income and expenditure relating to the General and Scholarship
Funds are pooled in the financial statements. The assets and liabilities and income and
expenditure relating to the Scholarship Fund that is set up for a specific purpose is accounted
for in Note 7.
Agency and trust funds
Funds are set up to account for contributions received from the Government of Singapore and
external sources for specific purposes and for which the Group acts as administrator or
trustee.
With the exception of the GlaxoSmithKline-EDB HRD Fund, the assets and liabilities of these
agency and trust funds held in trust are presented as a separate line item in the statement of
financial position as prescribed by SB-FRS Guidance Note 3 - Accounting and Disclosures for
Trust Funds. Income and expenditure relating to agency and trust funds are accounted for
directly in the funds to which they relate. Details of income, expenditure, assets and liabilities
relating to these funds are disclosed in Notes 24 and 25. Details of the GlaxoSmithKline-EDB
HRD Fund are outlined in Note 3.13 below.
3.13
Trust funds separately reported
The Group acts as the joint trustee with GlaxoSmithKline Pte Ltd for the management of the
following trust fund, registered under the Charities Act. The income and expenditure of this
trust fund are separately reported in its financial statements, and are not included in the
Group's financial statements.
GlaxoSmithKline-EDB HRD Fund
The Fund received contributions from Glaxochem (Pte) Ltd, and thereafter Glaxo Wellcome
Manufacturing Pte Ltd. Contributions to the Fund were completed as at 31 March 1998 and a
total of $50 million was contributed.
The primary objective of the Fund is to promote and develop Singapore's human resources
through educational and training programmes and manpower studies and by providing
scholarships or other financial assistance in fields which in the opinion of the trustees,
contribute to the continued growth in Singapore. The Fund has a net asset balance of
$11.8 million as at 31 March 2015(2014: $11.8 million).
-20-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (cont'd)
3.14
Employee benefits
Defined contribution plan
As required by law, the Group makes contributions to the state pension scheme, Central
Provident Fund ("CPF"). CPF contributions are recognised as compensation expenses in the
same period as the employment that gives rise to the contribution.
Employee leave entitlement
Employee entitlements to annual leave are recognised when they accrue to employees. A
provision is made for the estimated liability for annual leave as a result of services rendered by
employees up to the reporting date.
Short-term benefits
Short-term benefit obligations are measured on an undiscounted basis and are expensed as
the related service is provided.
A provision is recognised for the amount expected to be paid under short-term cash bonus if
the Group has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employees and the obligation can be estimated reliably.
Long term employee benefits
The amount of net obligation in respect of long-term employee benefits is the amount of future
benefit that employees have earned in return for their services in current and prior periods;
that benefit is discounted to determine its present value. The discount rate is the cost of capital
at the reporting date on 31 March 2015. The calculation is performed using the discounted
cash flow method. Past service costs are recognised in the statement of comprehensive
income in the period which the employee benefits programme is introduced for qualifying
employees.
3.15
Leases
Where the Group has the use of assets under operating leases, payments made under the
leases are recognised as expense on a straight-line basis over the term of the lease. Lease
incentives received are recognised as an integral part of the total lease expense over the term
of the lease. Contingent rentals are charged to the statement of comprehensive income in the
accounting period in which they are incurred.
- 21 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (cont'd)
3.16
Revenue recognition
Revenue is recognised to the extent that is probable that the economic benefits will flow to the
Group and the revenue can be reliably measured, regardless of when the payment is made.
Management fee
Management fees are recognised when services have been rendered and are recognised on
an accrual basis.
Rental income
Rental income receivable under operating leases is recognised on a straight-line basis over
the lease term. The aggregate costs of incentives provided to lessees are recognised as a
reduction of rental income over the lease term on a straight-line basis.
Contribution received /Income from rendering of administrative services
Contribution and income received from rendering of services are recognised when the
services are rendered.
Interest income
Interest income is recognised as it accrues, using the effective interest method.
Dividend income
Dividend income is recognised on the date that the Group's right to receive payment is
established, which in the case of quoted equity securities, is the ex-dividend date.
3.17
Foreign currency transactions
Transactions in foreign currencies are recorded in the presentation currency of the Group,
Singapore dollars, at the exchange rate at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies at the reporting date are translated to the
presentation currency at the exchange rate at the reporting date. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at fair value are translated to
the presentation currencies at the exchange rate at the date on which the fair value was
determined. All realised and unrealised exchange gains and losses are dealt with in the
statement of comprehensive income, except that exchange adjustment gains and losses
attributable to specific funds are directly credited to or charged against the respective agency
and trust funds.
-22-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
3.
Summary of significant accounting policies (cont'd)
3.18
Income tax
The Board is exempt from tax under Section 13(1)(e) of the Income Tax Act (Cap. 134, 2014
Revised Edition). Income tax expense comprises current income tax and deferred tax of the
subsidiaries of the Board.
Current income tax and deferred tax are recognised in the statement of comprehensive
income except to the extent that it relates to a business combination or items recognised
directly in equity or in other comprehensive income.
Current income tax is the expected tax payable or receivable on the taxable income or loss of
the subsidiaries for the financial year, using tax rates enacted or substantively enacted at the
end of the reporting period and any adjustment to tax payable in respect of previous financial
years.
Deferred tax is recognised in respect of temporary differences between the carrying amount of
assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for temporary differences on the initial recognition of
assets or liabilities in a transaction that is not a business combination and that affects neither
accounting nor taxable profit or loss, to the extent that it is probable that they will not reverse in
the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be applied to temporary
differences when they reverse, based on the laws that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to set-off
current income tax liabilities and assets and they relate to income taxes levied by the same tax
authority on the same taxable entity.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary
differences, to the extent that it is probable that future taxable profits will be available against
which they can be utilised. Deferred tax assets are reviewed at the end of each reporting
period and are reduced to the extent that is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset to be utilised.
-23-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Summary of significant accounting policies (cont'd)
3.19
Contribution to Consolidated Fund
The Board, being a statutory corporation, is required to contribute to the Consolidated Fund in
accordance with Section 3(a) of the Statutory Corporations (Contributions to Consolidated
Fund) Act, Chapter 319A. Contribution to Consolidated Fund is provided on an accrual basis.
The contribution is based on the surplus of the Board for the financial year (before donations)
at the prevailing rate for the year, offset by any accumulated deficits before donations brought
forward from prior years.
3.20
Share Capital
Pursuant to the Finance Circular Minute No. M26/2008 on Capital Management Framework for
Statutory Boards, equity injection from the Government is recorded as share capital.
3.21
Contingent liability
A contingent liability is a possible obligation that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Group. It is not recognised in the statement of
financial position of the Group.
3.22
Related parties
The Board is established as a statutory board under the provisions of the Economic
Development Board Act (Chapter 85) and is an entity related to the Government of Singapore.
The Board's related parties refer to Government-related entities including Ministries and other
Statutory Boards.
The Board applies the exemption in Paragraph 25 of SB-FRS 24 Related Party Disclosures,
and required disclosures are limited to the following information to enable users to understand
the effect of related party transactions on the financial statements:
(i)
the nature and amount of each individually significant transaction; and
(ii)
for other transactions that are collectively but not individually significant, a qualitative
or quantitative indication of their extent.
-24-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
4.
Financial risk management
Risk management is integral to the whole business of the Group. The Group has a system of
controls in place to create an acceptable balance between the cost of risks occurring and the
cost of managing the risks. Management continually monitors the Group's risk management
process to ensure that an appropriate balance between risk and control is achieved. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group's activities.
Liquidity risk
The Group monitors its liquidity risk and maintains a level of cash and cash equivalents
deemed adequate by management to finance the Group's operations.
The Group receives funding from the Government of Singapore to meet its liquidity
requirements. Surplus funds are placed mainly with fund managers and the AccountantGeneral's Department(AGD)as well as bank deposits which have high liquidity.
Credit risk
The Group is exposed to credit risk through its investments in cash and fixed deposits as well
as bonds and fixed income instruments held with fund managers.
The Group's exposure to credit risk is minimal as its cash and fixed deposits are placed with
financial institutions with good credit ratings and the cash with the Accountant General's
Department under Centralised Liquidity Management are placed with high credit quality
financial institutions. The Group invests only in bonds and fixed income instruments with low
credit risk and its exposure to credit risk relating to its bonds and fixed income investments is
summarised below:
Long-term credit ratings
Not
AAA*
$
AA*
$
A*
$
rated*'`
$
Total
$
2015
Bonds
—
Fixed income investments 13,859,114
—
26,073,138
—
59,541,233
5,002,600
23,163,093
5,002,600
122,636,578
13,859,114
26,073,138
59,541,233
28,165,693
127,639,178
Bonds
—
Fixed income investments 9,823,943
—
11,993,248
—
61,388,683
5,125,250
34,170,545
5,125,250
117,376,419
9,823,943
11,993,248
61,388,683
39,295,795
122,501,669
2014
*~
Based on public ratings assigned by Standard & Poor's, Moody's and Fitch.
These include bonds issued by the Singapore Government, Statutory Boards and other Governmentlinked companies.
-25-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Financial risk management(cont'd)
The Group manages credit risk actively through the setting of investment guidelines. The
guidelines are reviewed on a regular basis by the Finance Committee and ongoing monitoring
is undertaken by the Group to ensure that all investment activities are in compliance with the
guidelines.
The maximum exposure to credit risk is represented by the carrying amount of each financial
asset as at reporting date.
Market risk
Market risk is the risk that changes in market prices, such as interest rates, foreign exchange
rates and equity prices will affect the Group'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.
The Group actively manages the market risk arising from its financial instruments through the
setting of investment guidelines and asset allocation, which are approved by the Finance
Committee, within the approved risk tolerance limits. Diversification of market risk is achieved
by investing in different asset classes across various markets. Compliance with the investment
guidelines is monitored on an on-going basis and reported to the Finance Committee regularly.
Interest rate risk
The Group is exposed to fair value interest rate risks mainly from investments in fixed
deposits, bonds, fixed income instruments and cash placed with the Accountant General's
Department(AGD)and with fund managers. Fair value interest rate risk is the risk that the fair
value (price) of a financial instrument will fluctuate due to changes in market interest rates.
Futures contracts are used to manage the interest rate risk arising from the Group's fixed
income investments with its fund managers.
The carrying amounts and effective interest rates of interest-bearing financial instruments by
maturity are as follows:
Total
Fixed interest rate maturing
between
more
less
than
1 to 3
than
1 month
months
3 months
$
$
$
$
°/a
Note
Effective
interest
rate per
annum
2015
8,137,900
8,137,900
0.45 1.05 103,145,275
241,655
0.45 1.05
8,926,980
0.45 1.05
5,002,600
3.38
103,145,275
241,655
8,926,980
5,002,600
12
12
0.30 0.69
0.00 0.25
3,826,544
6,100,888
3,826,544
6,100,888
12
0.00 7.00 122,636,578
1,499,141
4,578,546 116,558,891
258,018,420
136,880,983
4,578,546 116,558,891
—
—
—
—
—
—
—
—
—
—
-
-
-26-
—
14
24
25
12
—
0.49 0.50
-
14
-
Fixed deposits relating to
the Group
Cash placed with AGD relating to
-the Group
-agency funds
-trust funds
Bonds
Fixed deposits placed with Fund
managers
Cash placed with Fund managers
Fixed income investments with
Fund managers
-
4.
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Financial risk management(cont'd)
Fixed interest rate maturing
between
more
less
than
than
1 to 3
months
3 months
1 month
0.20 0.21
0.29
7,334,991
256,400
7,334,991
14
24
25
12
0.29 0.81
0.29 0.81
0.29 0.81
3.38
92,768,463
236,670
8,531,887
5,125,250
92,768,463
236,670
8,531,887
12
12
0.28 0.39
0.00 0.71
7,720,854
7,407,539
7,720,854
7,407,539
12
0.00 -7.00 117,376,419
3,950,039 17,091,241
96,335,139
246,758,473
127,950,443 17,347,641
101,460,389
$
$
14
25
$
Total
$
Note
Effective
interest
rate per
annum
-
—
—
—
—
5,125,250
—
—
—
—
—
—
256,400
—
—
—
—
—
—
—
Fixed deposits relating to
-the Group
-trust funds
Cash placed with AGD relating to
-the Group
-agency funds
-trust funds
Bonds
Fixed deposits placed with Fund
managers
Cash placed with Fund managers
Fixed income investments with
Fund managers
—
2014
—
4.
The interest rate of cash placed with the Accountant-General's Department (AGD) is defined
as the ratio of the interest earned on the average cash balance and is based on the deposit
rates determined by financial institutions with which the cash are deposited.
At 31 March 2015, the Group has outstanding bond futures contracts with notional amounts of
approximately $15,740,545 (2014: $24,895,302). The contractual cash flows are disclosed in
Note 12.
Foreign currency risk
The Group's exposure to foreign currency risk is related to its investments with fund
managers, expenditure of its overseas operations and the cash and bank balances
denominated in foreign currencies as described below. The Group uses forward exchange
contracts to hedge its foreign currency risk for its investments with fund managers.
-27-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Financial risk management(cont'd)
The Group's exposure to foreign currencies is as follows:
Japanese
Yen
Others
$
$
Euro
$
US
dollar
$
4.
As at 31 March 2015
Fixed income investments
59,376,618
Trade and other receivables
(including those held with Fund
761,356
managers)
Trade and other payables (including
(674,707)
those held with Fund managers)
1,015,196
Cash and cash equivalents
60,478,463
3,562,215
-
1,633,221
466,643
472,608
551,894
(9,305)
198,142
(8,668)
101,783
(600,102)
533,937
4,217,695
565,723
2,118,950
3,963,176
-
1,633,064
241,869
567,339
625,466
(16,445)
362,451
100,037
(317,409)
520,319
As at 31 March 2014
45,600,537
Fixed income investments
Trade and other receivables
(including those held with Fund
1,736,614
managers)
Trade and other payables (including
(638,822)
those held with Fund managers)
1,368,930
Cash and cash equivalents
48,067,259
4,551,051
667,376
2,461,440
At 31 March 2015, the Group has outstanding forward exchange contracts with notional
amounts of approximately $91,839,564 (2014: $86,969,440). The contractual cash flows are
disclosed in Note 12.
-28-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Financial risk management(cont'd)
Sensitivity analysis for foreign currency risk
A 10% strengthening of Singapore dollar against the following currencies at the reporting date
would increase/(decrease) the total comprehensive income by the amounts shown below. This
analysis assumes that all other variables remain constant.
(6,047,846)
(421,770)
(56,572)
(211,895)
US dollar
Euro
Japanese yen
Others
2014
$
2015
$
4.
(4,806,726)
(455,105)
(66,738)
(246,144)
A 10% weakening of Singapore dollar against the above currencies would have had the equal
but opposite effect on the above currencies to the amounts shown above, on the basis that all
other variables, in particular interest rates, remain constant.
Recognised assets and liabilities
Changes in the fair value of bond futures contracts and forward exchange contracts that
economically hedge fixed income investments and monetary assets and liabilities in foreign
currencies, and for which no hedge accounting is applied, are recognised in the statement of
comprehensive income. The changes in fair value of the futures and forward contracts are
recognised as part of net change in fair value of financial assets at fair value through profit or
loss. The fair value of bond futures contracts and forward exchange contracts at 31 March
2015 is - $83,474 (2014: $742,168) recognised and included as part of financial assets at fair
value through profit or loss in the Group's financial statements.
Equity price risk
The Group is exposed to equity securities price risk arising from its investments in equity and
unit trusts. These financial instruments are traded in active markets and are designated as fair
value through profit or loss. The market values of these investments are affected by, amongst
others, changes in market prices as a result of changes in the global economic conditions,
macro and micro economic factors affecting the country where the investments are quoted,
and factors specific to the investee corporations.
The fluctuations in market prices due to the above factors are unforeseen. To mitigate the
price risk arising from investments in equity securities, the Group invests in a diversified
portfolio of quoted investments. The policy is to manage investment returns and price risk
through close monitoring of the holding limits prescribed for each individual asset class. All
investment decisions are governed by the Group's documented risk management and
investment strategies.
-29-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
4.
Financial risk management(cont'd)
Sensitivity analysis for equity price risk
A 10% increase in the underlying market prices or net asset values at the reporting date would
increase total comprehensive income by the following amount:
2014
2015
Equities and Unit Trusts
6,304,387
7,253,177
A 10% decrease in the underlying market prices or net asset values would have had the equal
but opposite effect to the amounts shown above, on the basis that all other variables remain
constant.
Concentration risk
An analysis of the concentration of the Group's investments is as follows:
Percentage of
investments
2014
2015
2015
2014
Equities and Unit Trusts
Singapore
Asia
Global
4,701,454
28,655,699
39,174,619
6,080,525
23,920,752
33,042,597
2.35
14.32
19.57
3.28
12.89
17.81
Bonds and Fixed Income
Investments
Singapore
Asia
Global
62,793,614
53,716,289
11,129,275
67,964,440
39,881,420
14,655,809
31.37
26.84
5.55
36.63
21.49
7.90
Fair value of assets and liabilities
The fair value of financial assets is based on quoted bid prices or net asset values of the
financial assets as at the reporting date. The Group classifies fair value measurements using a
fair value hierarchy that reflects the significance of the inputs used in making the
measurements. The fair value hierarchy for the Group's financial assets at fair value through
profit or loss is disclosed in Note 12.
Other assets and liabilities
The carrying amounts of assets and liabilities with a maturity of less than one year (including
other receivables and prepayments, cash and cash equivalents, and other payables and
accruals) are assumed to approximate their fair values because of the short period to maturity.
All other assets and liabilities are discounted to determine their fair values.
-30-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
5.
Capital account
The capital account comprises the net book value of assets transferred to the Board at its
inception in 1961.
6.
Share capital
Group and Board
No. of shares
2015
2014
Fully paid ordinary shares, with no par value:
At 1 April and 31 March
1,000
1,000
The Group issued 1,000 ordinary shares on 23 March 2009. The shares have been fully paid
for and are held by the Minister for Finance, a body corporate incorporated by the Minister for
Finance (Incorporation) Act.
The holder of ordinary shares is entitled to receive dividends as declared from time to time, in
accordance with the Finance Circular Minute No. M26/2008 under the Capital Management
Framework for Statutory Boards. The shares do not carry any voting rights.
Capital management
The Group's policy is to maintain a strong and healthy capital base so as to sustain future
development of the Group and maximise shareholder's value.
The Group defines capital to include capital account, share capital and accumulated surplus.
The accumulated surplus has been invested to generate returns and the Group monitors its
return on investment, capital position and capital requirements on a regular basis.
There were no changes to the capital management during the year.
The Group is not subject to externally imposed capital requirements.
- 31 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Economic Development Scholarship Fund
The Economic Development Scholarship Fund (the "Scholarship Fund") was established on 29
September 2006 and $50 million was set aside from the Group's accumulated surplus. The
primary objective of the Scholarship Fund is to promote and develop Singapore's economic
development manpower capabilities through tertiary education and professional development
programmes.
The assets and liabilities and operating results of the Scholarship Fund are already disclosed
as part of the financial statements, and the detailed breakdown for the year ended
31 March 2015 is as follows:
$
Group and Board
2014
2015
$
Surplus balance
86,491,322
84,952,089
80,484,622
146,048
669,429
5,198,481
82,803,418
135,891
747,831
1,269,219
86,498,580
84,956,359
7,258
4,270
86,491,322
84,952,089
604,295
11,433
848,103
3,804
Current assets
Financial assets at fair value through profit or loss
Other receivables
Prepayments
Cash
Current liability
Other payables
Net assets of the fund
Income
Liquidated damages and other income
Interest income
Net change in fair value of financial assets at fair value
through profit or loss
Expenditure
Course fees
Living allowance
Miscellaneous expenses
Net change in fair value of financial assets at fair value
through profit or loss
3,681,205
—
Represented by:
4,296,933
851,907
1,529,508
801,573
426,619
1,515,694
924,306
312,089
—
7.
166,525
2,757,700
2,918,614
Surplus /(Deficit) for the year
Surplus balance at beginning of year
1,539,233
84,952,089
(2,066,707)
87,018,796
Surplus balance at year end
86,491,322
84,952,089
-32-
8.
-
-
-
-
14,519,927
59,631
771,252
515,747
924,976
357,028
11,285,947
605,346
At 31 March 2015
-33-
-
17,827,599
-
20,693,858
3,880,762
(448,400)
24,126,220
238,505
-
22,542,829
3,765,017
(5,613,988)
1,012,557
-
-
-
38,646,147
722,869
-
1,058,844
1,493,776
305,244
(379,218)
1,419,802
-
-
(238,505)
59,631
1,131,915
-
15,385,401
852,881
205,963
1,368,825
333,402
(208,451)
2,191,054
-
485,484
-
4,384,642
619,752
(66,675)
4,937,719
836,936
128,769
(2,507)
963,198
12,774,131
2,611,270
351,492
9,764
-
4,479,301
658,042
(752,701)
2,418,623
113,896
(1,695,583)
13,251,314
2,405,829
(2,883,012)
341,728
9,764
683,038
244,084
(74,241)
1,574,591
-
13,621,159
5,862,695
-
38,521,457
595,504
(470,814)
-
36,286,993
7,940,846
(5,706,382)
$
Total
615,110
1,320,226
-
238,505
59,631
(3,088,446)
-
3,088,581
238,370
$
Capital
work-inprogress
Net carrying amount
At 31 March 2014
238,505
26,671,348
2,506,333
78,894
(394,173)
-
2,389,870
346,073
(229,610)
$
Motor
vehicle
361,256
966,602
-
1,575,750
2,317
(3,476)
5,516,557
416,796
(70,658)
1,322,420
313
(2,507)
-
26,395,290
37,553
-
966,602
-
1,062,654
396,984
(85,695)
201,807
$
5,564,188
634,204
(755,043)
73,208
$
Electrical
fittings
and
equipment
2,568,043
333,232
(1,713,959)
135,104
$
Office and
computer
equipment
20,647,055
5,991,983
(2,922,075)
2,678,327
$
Furniture
and
fittings
966,602
$
Leasehold
land
Properties
and
improvements
Group
Accumulated depreciation
At 1 April 2013
Depreciation for the year
Disposals/Write off
At 31 March 2014 and 1 April
2014
Depreciation for the year
Disposals/V1/rite off
At 31 March 2015
Cost
At 1 April 2013
Additions
Disposals/Write off
Reclassifications
At 31 March 2014 and 1 April
2014
Additions
Disposals/Write off
Reclassifications
At 31 March 2015
Property, plant and equipment
Notes to the Financial Statements
For the financial year ended 31 March 2015
Economic Development Board and its subsidiaries
8.
-
-
14,453,679
59,631
768,054
515,747
861,926
357,028
11,285,947
605,346
At 31 March 2015
-34-
-
17,663,733
-
20,502,564
3,782,072
(448,400)
23,836,236
238,505
-
996,570
1,058,844
-
-
22,455,572
3,660,980
(5,613,988)
38,289,915
722,869
15,385,401
-
1,446,650
292,455
(379,218)
1,359,887
852,881
205,963
4,240,474
533,851
(66,675)
4,707,650
836,936
128,769
(2,507)
963,198
12,774,131
2,611,270
351,492
9,764
-
1,336,639
318,462
(208,451)
683,038
244,084
(74,241)
4,424,230
568,945
(752,701)
2,418,623
113,896
(1,695,583)
13,251,314
2,405,829
(2,883,012)
341,728
9,764
-
-
(238,505)
59,631
984,036
2,127,941
-
485,484
1,574,591
-
13,621,159
5,569,576
-
38,166,297
594,432
(470,814)
-
35,933,106
7,939,573
(5,706,382)
$
Total
615,110
1,320,226
-
238,505
59,631
(3,088,446)
-
3,088,581
238,370
$
Capital
work-inprogress
Net carrying amount
At 31 March 2014
238,505
26,671,348
-
2,443,220
78,894
(394,173)
-
2,326,757
346,073
(229,610)
$
Motor
vehicle
361,256
966,602
-
-
1,575,750
2,317
(3,476)
5,224,510
415,724
(70,658)
1,322,420
313
(2,507)
26,395,290
37,553
-
-
966,602
-
1,062,654
396,984
(85,695)
201,807
-
5,273,414
632,931
(755,043)
73,208
$
Electrical
fittings
and
equipment
2,568,043
333,232
(1,713,959)
135,104
$
Office and
computer
equipment
20,647,055
5,991,983
(2,922,075)
2,678,327
$
Furniture
and
fittings
966,602
$
Properties
and
improvements
Board
Accumulated depreciation
At 1 April 2013
Depreciation for the year
Disposals/Write off
At 31 March 2014 and 1 April
2014
Depreciation for the year
Disposals/Write off
At 31 March 2015
Cost
At 1 April 2013
Additions
Disposals/Write off
Reclassifications
At 31 March 2014 and 1 April
2014
Additions
Disposals/Write off
Reclassifications
At 31 March 2015
$
Leasehold
land
Property, plant and equipment(cont'd)
Notes to the Financial Statements
For the financial year ended 31 March 2015
Economic Development Board and its subsidiaries
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
8.
Property, plant and equipment (cont'd)
Capital work-in-progress relates to cost of assets under development. No depreciation is
provided on capital work-in-progress until such assets are available for use.
Included in property, plant and equipment is a property comprising a portion that is held to
earn rental income and a portion that is occupied by the Group for administrative purposes. As
there is no separate strata title for the portion that is held for earning rental income and the
portion that is occupied by the Group is not insignificant, the Group has continued to classify
the entire property under property, plant and equipment. Rental income of $1,540,845 (2014:
$1,540,845) was derived from the rental of this property for the year ended 31 March 2015.
During the year, the Group acquired property, plant and equipment with an aggregate cost of
$595,504 (2014: $7,940,846). Cash payments of $595,990 (2014: $9,895,497) were made for
property, plant and equipment.
Intangible assets
Group and Board
Total
$
$
Computer
software
Intangible
assets
under
development
$
Cost
3,273,645
66,417
452,463
34,497
3,726,108
100,914
At 31 March 2014 and 1 April 2014
Additions
Reclassifications
3,340,062
40,924
339,955
486,960
61,128
(339,955)
3,827,022
102,052
At 31 March 2015
3,720,941
208,133
3,929,074
—
At 1 April 2013
Additions
2,735,387
462,958
At 31 March 2015
3,198,345
—
At 31 March 2014 and 1 April 2014
Amortisation charge for the year
—
2,063,181
672,206
—
At 1 April 2013
Amortisation charge for the year
—
Accumulated amortisation
—
9.
2,063,181
672,206
2,735,387
462,958
3,198,345
Net carrying amount
At 31 March 2014
604,675
486,960
1,091,635
At 31 March 2015
522,596
208,133
730,729
-35-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
9.
Intangible assets (cont'd)
Intangible assets under development comprise software and development costs for various
computer application systems.
During the year, the Group acquired intangible assets with an aggregate cost of $102,052
(2014: $100,914). Cash payments of $107,827 (2014: $156,482) were made for intangible
assets.
10.
Available-for-sale investments
Group and Board
2014
2015
$
$
6,923,592
Unquoted equity shares
6,923,592
The Group's investments in unquoted equity shares are held for long term investment
purposes. These are stated at cost less impairment losses as they do not have a quoted
market price in an active market and other methods of reasonably estimating their fair values
are inappropriate.
11.
Investments in subsidiaries
Board
2015
$
2014
$
250,000
Equity investments at cost
250,000
Details of the subsidiaries of the Board are as follows:
Name of subsidiary
Country of
incorporation
Principal activities
Proportion(%)
of ownership
interest
2014
2015
Held by the Board
EDBI Pte Ltd*
Singapore
Provision of fund
management services to
its related corporations
100
100
Singapore
Provision of fund
management services to
its related corporations
100
100
Held by EDB/ Pte Ltd
Bio~One Capital Pte Ltd*
"Audited by Ernst &Young LLP, Singapore
-36-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Financial assets at fair value through profit or loss
The Group's investments include those managed by professional managers and advisors who
have discretion to invest in equities, bonds and other investments according to agreed
guidelines. The fair values of the financial instruments traded in active markets (such as
exchange-traded and over-the-counter securities as well as forward and futures contracts) are
based on quoted market bid prices or net asset values as at the reporting date.
Quoted investments
bonds
- equities
-unit trusts
-fixed income investments
(a)
5,002,600
27,031,513
45,500,258
122,636,578
5,125,250
20,467,859
42,576,015
117,376,419
(b)
200,170,949
185,545,543
-
(a)
Other assets/(liabilities)
cash at bank
-fixed deposits
accounts receivable
- derivative financial assets
- derivative financial liabilities
accounts payable
(c)
(d)
-
-
$
Group and Board
2014
2015
$
Note
(e)
(e)
-
12.
6,100,888
3,826,544
1,594,875
552,727
(636,201)
(1,894,120)
7,407,539
7,720,854
1,476,776
829,602
(87,434)
(1,547,165)
9,544,713
15,800,172
209,715,662
201,345,715
(a) The bonds bear interest at 3.38% (2014: 3.38%) per annum and have matured on 21 April
2015 (2014: 21 April 2015). Fixed income investments comprise fixed and floating rate
debt securities managed by the Group's fund managers. The fixed income investments
bear interest at nil to 7.00% (2014: nil to 7.00%) per annum with maturity dates ranging
from 24 April 2015 to 23 August 2027(2014: 21 April 2014 to 23 August 2027).
(b) During the year, there was no injection or withdrawal from investments (2014: net
withdrawal of $2,000,000).
(c) Cash at bank bears interest at nil to 0.25%.(2014: nil to 0.71°/o). Interest rates re-price
monthly.
(d) Fixed deposits bear interest at 0.30% to 0.69% (2014: 0.28% to 0.39%) per annum and
have matured on 20 April 2015(2014: 8 April 2014 to 17 April 2014).
(e) The derivative financial instruments include forward foreign exchange contracts and bond
futures contracts, which are used to hedge foreign exchange risks and interest rate risks
respectively. As at 31 March 2015, the net fair value of the outstanding foreign exchange
contracts and bond futures contracts is - $83,474 (2014: $742,168). Outstanding foreign
exchange contracts comprise contracts involving Australian dollars, British pounds, Euro,
Japanese yen, Hong Kong dollars and US dollars.
-37-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Financial assets at fair value through profit or loss (cont'd)
The following are the expected contractual undiscounted cash inflows / (outflows) of the
forward foreign exchange contracts and bond futures contracts:
As at 31 March 2015
Derivative financial assets
Forward exchange contracts used for hedging
- inflows
- outflows
552,727
44,766,427
44,766,427
(44,213,700) (44,213,700)
552,727
Derivative financial liabilities
Forward exchange contracts used for hedging
- inflows
- outflows
(636,201)
As at 31 March 2014
Derivative financial assets
Forward exchange contracts used for hedging
- inflows
- outflows
829,602
Bond futures contracts used for hedging
- inflows
- outflows
(216,848)
(216,848)
(636,201)
(636,201)
75,392,017
75,392,017
(74,719,193) (74,719,193)
672,824
24,895,302
24,895,302
(24,738,524) (24,738,524)
(87,434)
156,778
156,778
829,602
829,602
11,577,423
11,577,423
(11,664,857) (11,664,857)
(87,434)
- 38 -
(419,353)
15,740,545
15,740,545
(15,957,393) (15,957,393)
672,824
Derivative financial liabilities
Forward exchange contracts used for hedging
- inflows
- outflows
552,727
47,073,137
47,073,137
(47,492,490) (47,492,490)
(419,353)
Bond futures contracts used for hedging
- inflows
- outflows
$
Cash flows
Contractual
Within
cash flows
1 year
$
Carrying
amount
$
12.
(87,434)
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Financial assets at fair value through profit or loss (cont'd)
(f) 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)
Level2
Total
$
$
Level1
$
As at 31 March 2015
200,170,949
552,727
(636,201)
199,954,101
133,374
200,087,475
185,545,543
156,778
—
—
672,824
(87,434)
185,545,543
829,602
(87,434)
185,702,321
585,390
186,287,711
(216,848)
—
552,727
(419,353)
200,170,949
Quoted investments
Derivative financial assets
Derivative financial liabilities
—
12.
As at 31 March 2014
Quoted investments
Derivative financial assets
Derivative financial liabilities
The Group does not have any investments in the Level 3 category and there was no
transfer between Level 1 and Level 2 during the year.
- 39 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Other receivables
Board
Group
2014
2014
2015
$
$
$
$
2015
Sundry debtors
Deposits
6,566,571
1,420,006
1,480,951
1,345,529
6,601,930
1,409,026
1,458,893
1,335,269
Total other receivables
Add cash and cash
equivalents (Note 14)
7,986,577
2,826,480
8,010,956
2,794,162
127,822,827
124,664,522
119,490,556
117,226,514
Total loans and receivables
135,809,404
127,491,002
127,501,512
120,020,676
The Group's primary exposure to credit risk arises through its sundry debtors. Credit risk
relating to sundry debtors is limited as most of the Group's customers are Singapore
Government agencies.
The maximum exposure to credit risk for sundry debtors at the reporting date (by type of
receivable) is:
Board
Group
2014
2015
2014
$
$
$
2015
$
13.
Reimbursement of
expenses
Interest receivable
Service fee receivable
Rental receivable
5,719,876
646,989
75,417
124,289
731,291
442,540
104,945
202,175
5,757,343
644,881
75,417
124,289
709,964
441,809
104,945
202,175
6,566,571
1,480,951
6,601,930
1,458,893
The Group's most significant debtor accounts for $219,824 (2014: $208,986) of the sundry
debtors carrying amount at 31 March 2015.
-40-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Other receivables (cont'd)
Impairment losses
The ageing of sundry debtors at the reporting date is:
Group
Impairment
losses
2015
Gross
2014
Impairment
losses
2014
$
1,480,951
—
—
—
—
—
—
1,337,619
12,118
130,714
500
—
6,566,571
—
6,468,908
52,463
42,800
2,400
—
—
Not past due
Pastdue 0 30 days
Pastdue 31 120 days
Pastdue more than 120 days
—
$
$
$
Gross
2015
—
13.
Board
Not past due
Pastdue 0 — 30 days
Pastdue 31 — 120 days
Past due more than 120 days
6,504,267
52,463
42,800
2,400
—
—
—
—
1,315,561
12,118
130,714
500
—
—
—
—
6,601,930
—
1,458,893
—
The Group evaluates whether there is any objective evidence that sundry debtors are impaired
and determines the amount of impairment loss as a result of the inability of the customers to
make required payments. Based on the ageing of the sundry debtors balance, creditworthiness, and historical write-off experience, the Group believes that no impairment
allowance is necessary.
- 41 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
14.
Cash and cash equivalents
Group
Board
2015
2014
2015
2014
4
4
16,539,652
103,145,275
8,137,900
24,561,068
92,768,463
7,334,991
16,345,281
103,145,275
—
24,458,051
92,768,463
—
127,822,827
124,664,522
119,490,556
117,226,514
Cash and bank
balances
Cash with AGD
Fixed deposits
$
$
$
$
Note
Cash with the Accountant-General's Department (AGD) refers to cash that are managed by
AGD under Centralised Liquidity Management (CLM) as set out in the Accountant-General's
Circular No. 4/2009 Centralised Liquidity Management for Statutory Boards and Ministries.
The Group manages the grants disbursed on behalf of the Environmental and Water Industry
Development Council("EWI") and the bank balance of EWI amounts to $1,727,156 as at 31
March 2015 (2014: $371,949). This has not been included as cash and cash equivalents in the
Group's financial statements.
Other payables and accruals
Sundry creditors
Accrued expenses
Grants received in
advance
Total financial
liabilities measured
at amortised cost
(a)
Board
2015
$
2014
$
2015
2014
$
Group
Note
$
15.
7,031,460
27,530,887
7,915,973
24,820,631
4,774,689
24,800,608
5,670,483
22,062,969
23,741,179
23,230,427
23,741,179
23,230,427
58,303,526
55,967,031
53,316,476
50,963,879
-42-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
15.
Other payables and accruals (cont'd)
The contracted undiscounted cash outflows on other payables and accruals are expected to
approximate their carrying amounts and settled within one year.
(a) Movement in grants received in advance during the year is as follows:
Group and Board
2014
2015
$
$
Note
At 1 April
Grants received
Operating grants transferred to the statement of
comprehensive income
26
At 31 March
19,899,490
150,875,698
(146,805,781)
(147,544,761)
23,741,179
23,230,427
Provision for contribution to Consolidated Fund
This represents the Board's contribution to be made to the Government Consolidated Fund in
accordance with Section 3(a) of the Statutory Corporations (Contributions to Consolidated
Fund) Act (Cap. 319A). The amount to be contributed is based on 17% (2014: 17%) of the
Board's surplus for the year before donations, offset by any accumulated deficits before
donations carried forward, and is computed as follows:
Board
2015
2014
22
16,859,193
25,000
13,643,096
25,000
16,884,193
13,668,096
2,870,313
2,323,576
$
Note
$
16.
23,230,427
147,316,533
Surplus for the year before contribution to
Consolidated Fund
Add: Donations
Surplus for the year before donations and
contribution to Consolidated Fund
Contribution to Consolidated Fund at 17% (2014:
17%)
-43-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
17.
Provision
$
$
Group and Board
2014
2015
Current
2,072,407
1,481,000
(1,927,372)
1,245,783
1,989,178
(1,162,554)
1,626,035
2,072,407
At 1 April
Provision made during the year
Provision utilised during the year
19,620,135
2,497,000
(471,724)
19,755,022
468,376
(603,263)
At 31 March
21,645,411
19,620,135
At 1 April
Provision made during the year
Provision utilised during the year
At 31 March
Non-current
The Group has a corporate bonus programme which has a long term staff benefit feature for
the recognition of staff services. In addition, there is a separate retention programme to
encourage high performing officers to stay on with the Group to take on leadership roles. The
obligations of these schemes are recognised as current and non-current liabilities in the
statement of financial position and are determined based on the Group's best estimates of
salaries, length of stay and expected attrition rates of qualifying employees. These amounts
are included as staff and related expenses in the statement of comprehensive income.
The amount and timing of recorded expenses for any period will differ if the Group makes
different judgement or utilises different estimates. An increase in the Group's provision for
bonus will increase the Group's operating expenses, current and non-current liabilities.
Deferred capital grants
Group and Board
2014
2015
$
Note
$
18.
At 1 April
Amount transferred to operating grants
Amortisation charge for the year
Utilised on disposal of fixed assets
At 31 March
-44-
26
7,084,431
(146,690)
8,984,571
—
6,937,741
(1,231,178)
18,197
8,984,571
(1,828,986)
71,154
(1,249,375)
(1,900,140)
5,688,366
7,084,431
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
19.
Revenue
Board
Group
2014
2015
2014
$
$
$
$
2015
1,557,087
1,540,845
1,327,345
1,540,845
1,557,087
1,540,845
1,327,345
1,544,261
404,464
482,513
404,464
482,513
726,157
971,049
2,132,989
2,661,872
2,054
625,403
1,829
201,072
705,353
1,652
243,393
17,391,010
17,894,653
6,340,738
6,261,036
—
—
13,370,000
Other income
Board
Group
2014
2015
2014
$
$
$
2015
8,538,536
—
8,538,536
754,046
1,300,000
893,879
740,359
54,274
604,295
56,006
848,103
54,274
604,295
56,006
848,103
11,412,507
1,658,155
11,390,984
1,644,468
-45-
—
1,300,000
915,402
—
Net change in fair value of
financial assets at fair
value through profit or loss
Dividend income from
available-for-sale
investments
Interest income from banks
Gain on disposal of
property, plant and
equipment
Others
—
$
20.
12,535,000
—
Management fee
Contributions
received
Rental income
Reimbursement of
expenses
Administrative and
application fees
Foreign currency
exchange gain
Others
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Operating expenses
Board
Group
2015
2015
2014
2014
86,233,838 80,728,086
22,889,140 23,695,845
12,324,781 12,650,863
9
72,275,648
23,423,460
12,097,784
8,287,516
8,834,523
7,801,292
7,177,954
6,771,458
6,649,973
6,201,216
6,299,098
3,945,060
6,510,212
3,928,793
6,248,979
3,837,611
6,446,093
3,878,356
3,880,762
1,865,337
3,765,017
2,875,748
3,782,072
1,772,032
3,660,980
2,797,012
924,100
576,052
908,716
561,950
462,958
415,045
672,206
165,831
462,958
402,701
672,206
155,228
343,417
242,989
311,750
299,340
186,667
242,989
170,000
299,340
125,762
109,300
111,762
94,300
109,446
108,551
—
8
78,573,586
22,414,780
11,753,034
9,309,869
—
Staff and related expenses
Services
Rental of land and building
Travelling and business
development
Contribution to Central
Provident Fund
Marketing and
communication
Maintenance and utilities
Depreciation of property,
plant and equipment
Supplies and materials
Rental of office furniture,
equipment and vehicles
Amortisation of intangible
assets
Miscellaneous expenses
Board members'
allowances
Property tax
External auditors'
remuneration
Foreign currency
exchange loss
Property, plant and
equipment written off
$
$
$
Note
$
21.
68,085
741
68,085
156,550,297 151,416,102
146,291,675
140,602,950
741
-46-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
22.
Other expenses
Board
Group
2014
2015
$
—
2,757,700
25,000
2,782,700
23.
2,752,089
25,000
2,757,700
25,000
327,270
3,104,359
—
$
Scholarship expenses
Donations
Net change in fair value of
financial assets at fair
value through profit or
loss
$
2014
$
2015
2,782,700
2,752,089
25,000
327,270
3,104,359
Net liabilities of agency and trust funds
Group and Board
2015
2014
$
$
Note
24
25
Agency Funds
Trust Funds
24.
(91,348,732)
27,459,717
(134,237,288)
12,523,095
(63,889,015)
(121,714,193)
Agency Funds
Agency Funds represent funds received from the Government of Singapore for the purpose of
supporting initiatives in developing Singapore's economy which include the Economic
Development Assistance Scheme (EDAS), Research Innovation &Enterprise (RIE) fund and
Reinvestment Funds (RF).
The EDAS comprises grant and loan schemes established to promote economic growth by
encouraging capability development in areas where Singapore has a comparative advantage
and identified needs. It also aims to harness global talents to drive business and innovation
for Asia and the world.
The RIE fund seeks to attract industry research and commercialisation activities to Singapore.
The RF is to encourage and support EDB in undertaking projects and programmes which
contribute to whole of government strategic outcomes.
-47-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Agency Funds (cont'd)
The assets and liabilities and operating results of the fund for the year ended 31 March 2015
are as follows:
Group and Board
2014
2015
$
Note
$
Fund balance
23
(91,348,732)
4
(a)
(b)
53,658,767
241,655
18,338,973
597,411
(134,237,288)
Represented by:
Current assets
Cash and bank balances
Cash with AGD
Loans programmes
Other debtors
Prepayment
Interest receivables
13,583,603
25,030,027
236,670
14,034,130
4,222,230
12,602
26,415,345
86,420,409
69,951,004
1,818,828
14,563,406
652,779,767
1,653,678
1,940,083
15,319,464
662,187,327
13,986,443
670,815,679
693,433,317
143,701,000
16,996,771
18,338,973
158,374,000
32,270,558
14,034,130
179,036,744
204,678,688
652,779,767
2,204,904
14,563,405
662,187,327
15,436,130
15,319,464
669,548,076
692,942,921
—
24.
Non-current assets
Property, plant and equipment
Investment property
Loans programmes
Other debtors
(e)(ii)
(e)(i)
(a)
(b)
Current liabilities
Accruals for grants to be disbursed
Other payables
Loans from Government
(c)
Non-current liabilities
Loans from Government
Deferred EDAS grants
Deferred capital grants
(c)
(b)
(e)(iii)
(91,348,732)
Net liabilities
-48-
(134,237,288)
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Agency Funds (cont'd)
Group and Board
2014
2015
$
Note
$
Expenditure
Grants disbursed
Interest expense:
- Current year
- Over-recognition in prior year
Depreciation of investment property
Management fees
Depreciation of property, plant and equipment
Bank charges
(e)(i)
(e)(i)
(e)(ii)
28,781,298
15,138,496
29,241,352
409,465,700
438,036,857
21,896,616
(7,215,596)
756,058
130,213
121,255
19
425,154,265
Deficit before grants
Grants from Government
Grants returned to Government
Deferred capital grant amortised
Surplus for the year
Deficit balance at beginning of year
Deficit balance at end of year
-49-
—
21,896,616
(7,215,596)
283,110
105,600
68,766
275,976
141,530
42,548
33,573,795
—
Income
Interest income:
- Current year
- Over-recognition in prior year
Rental income
Write-back of allowance for doubtful debts
Other income
756,058
133,795
255,878
39
472,756,422
(410,015,769)
455,218,694
(3,070,427)
(e)(iii)
756,058
(443,515,070)
480,776,061
42,888,556
(134,237,288)
38,151,671
(172,388,959)
(91,348,732)
(134,237,288)
—
24.
890,680
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Agency Funds (cont'd)
(a) Loans programmes
Group and Board
2014
2015
$
Note
$
Represented by:
Capital Assistance Scheme (secured)
Entrepreneur Development Fund, less
allowance for impairment of $1,244,942
(2014: $1,350,542)
18,338,973
652,779,767
14,034,130
662,187,327
671,118,740
676,221,457
671,118,740
676,221,457
671,118,740
—
Loans receivable
- within 12 months
-after 12 months
—
24.
676,221,457
The Capital Assistance Scheme provides long-term financing to companies or institutions
for the development of strategic projects in the manufacturing and service industries.
These loans are secured by bankers' guarantees or collaterals.
The Entrepreneur Development Fund provides fixed rate loans for local entrepreneurs to
obtain a stake in regional enterprises. The Group has ceased to offer such loans.
(b) Other debtors /Deferred EDAS grants
These are loans granted to qualified education institutions for establishment and
expansion of new campuses under the Education Industry Development Assistance
Scheme. These loans are funded by deferred EDAS grants. The Group has ceased to
offer such loans.
(c) Loans from Government
For Capital Assistance Scheme, loan repayment is typically in six-monthly instalments,
commencing immediately up to 10 years after the first drawdown of the Capital Assistance
Scheme loan.
For Entrepreneur Development Fund, loan repayment is in yearly instalments,
commencing one year after the end of the financial year during which these loans were
disbursed.
(d) Undrawn loan and grant commitments
As at 31 March 2015, the Group has approved but undisbursed loans and grants
amounting to approximately $2.2 billion (2014: $2.3 billion).
-50-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Agency Funds (cont'd)
(e) Chemical Process Technology Centre
The Chemical Process Technology Centre("CPTC") was established by EDB in 2001 as a
training centre to develop skilled manpower for the chemical and biomedical sciences
industries in Singapore. The upfront capital cost and annual operating expenses of CPTC
were funded through the Economic Development Assistance Scheme("EDAS").
Nanyang Polytechnic was appointed the training partner for CPTC from its inception to 31
May 2008. During this period, EDB played an active role in managing the operations of
CPTC, providing a separate disclosure on the financials of CPTC in EDB's financial
statements.
Subsequently, from 1 June 2008 to 31 August 2014, Petrofac Training Institute (PTI) was
appointed as the training partner. During the financial year ended 31 March 2015, the
lease agreement with PTI was renewed for another 5 years from 1 September 2014 to 31
August 2019, with the longer term view that EDB will no longer actively manage the
operations of CPTC. With the evolution of the role of EDB in CPTC, and given that the
funding of the CPTC is made entirely out of the EDAS, management was of the opinion
that the funding accorded to CPTC is alike other initiatives funded through EDAS.
Accordingly, the assets, liabilities and operating results of CPTC for the financial year
ended 31 March 2015 have been incorporated into EDAS to reflect this change. Prior year
comparatives were reclassified to be consistent with current year's presentation.
(i) Investment property
Investment property comprises a leased property that is sublet to an external
customer. The carrying amount of the investment property is as follows:
$
Group and Board
2014
2015
$
24.
Cost
At 1 April and 31 March
22,681,751
22,681,751
Accumulated depreciation
At 1 April
Depreciation for the year
(7,362,287)
(756,058)
(6,606,229)
(756,058)
At 31 March
(8,118,345)
(7,362,287)
- 51 -
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Agency Funds (cont'd)
(e) Chemical Process Technology Centre (cont'd)
(i) Investment property (cont'd)
$
Group and Board
2014
2015
$
24.
Net carrying amount
At 31 March
14,563,406
15,319,464
Fair value
At 31 March
16,200,000
16,820,000
Valuation techniques
Market Data
Approach
Market Data
Approach
The fair values of the investment property at the end of the respective reporting
periods are determined by independent professional valuers based on the property's
open market value derived using the above valuation techniques. It is the current
intention of the Group to hold the investment property for the long-term.
Rental income of $283,110 (2014: $275,976) was derived from the investment
property during the financial year.
-52-
24.
(e)
At 31 March 2015
Net carrying amount
At 31 March 2014
-53-
—
—
—
—
16,246,728
5,126,474
At 31 March 2015
—
(17,050)
—
(108,247)
16,263,778
—
16,129,155
134,623
At 31 March 2014 and 1 April 2014
Depreciation for the year
Disposals
5,234,721
(160,429)
—
5,395,150
16,246,728
1,264,352
At 31 March 2015
Accumulated depreciation
At 1 April 2013
Depreciation for the year
Disposals
16,263,778
(17,050)
1,372,599
(108,247)
At 31 March 2014 and 1 April 2014
Disposals
—
16,263,778
1,533,028
(160,429)
—
Cost
At 1 April 2013
Disposals
$
3,862,122
$
Office and computer Electrical fittings
and equipment
equipment
Fair value
At 1 April 2013, 31 March 2014, 1 April 2014
and 31 March 2015
(ii) Property, plant and equipment
Chemical Process Technology Centre (conYd)
Agency Funds (cont'd)
Notes to the Financial Statements
For the financial year ended 31 March 2015
Economic Development Board and its subsidiaries
24,694
—
—
—
175,485
—
—
175,485
—
175,455
150,791
—
150,791
—
150,791
$
Furniture
and fittings
Group and Board
20,208,229
2,546,358
1,818,828
1,940,083
1,818,828
1,940,083
22,276,217
727,530
—
22,280,259
121,255
(125,297)
606,275
121,255
—
22,184,810
255,878
(160,429)
485,020
121,255
—
20,333,526
(125,297)
—
2,546,358
3,886,816
20,493,955
(160,429)
—
$
Total
2,546,358
$
Renovation
and fittings
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Agency Funds (cont'd)
(e) Chemical Process Technology Centre (cont'd)
(iii) Deferred capital grants
$
$
Group and Board
2014
2015
Deferred capital grants from Government
At 1 April
Amortisation of deferred capital grants
15,319,463
(756,058)
16,210,144
(890,681)
At 31 March
14,563,405
15,319,463
(iv) Comparative figures
Arising from the incorporation of the assets, liabilities and operating results of CPTC
into Agency Funds, the comparative figures of agency funds have been reclassified to
conform to current year's presentation.
As restated
$
$
As previously
Reclassification
reported
$
Statement of financial position
As at 31 March 2014
2,772,543
12,602
1,940,083
15,319,464
3,058,996
15,319,464
4,222,230
12,602
1,940,083
15,319,464
32,270,558
15,319,464
-
275,976
42,284
264
275,976
42,548
-
255,878
255,878
480,724,247
-
756,058
133,795
51,814
890,680
756,058
133,795
480,776,061
890,680
-
-
1,449,687
-
Other debtors
Prepayment
Property, plant and equipment
Investment property
Other payables
Deferred capital grants
29,211,562
-
24.
Statement of comprehensive
income
For the year ended 31 March
2014
Rental income
Share of profit
Other income
Depreciation of property, plant
and equipment
Depreciation of investment
property
Management fees
Grants from government
Deferred capital grant amortised
-54-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
Trust Funds
The net assets and results of trust funds for the year ended 31 March 2015 are as follows:
Group and Board
2014
2015
$
Note
$
Fund balance
23
27,459,717
12,523,095
50,828,552
8,926,980
47,584
43,531,755
8,531,887
256,400
21,824
59,803,116
52,341,866
Liability
Other payables
32,343,399
39,818,771
Net assets
27,459,717
12,523,095
81,719
292,100
43,233
373,819
43,233
32,656,865
888,167
57,375,994
774,715
463
4
4
Income
Interest income
Other income
Expenditure
Grants disbursed
Miscellaneous expenses
Living allowance
—
Assets
Cash and bank balances
Cash with AGD
Fixed deposits
Other receivables
—
Represented by:
—
25.
33,545,032
58,151,172
(33,171,213)
(58,107,939)
Grants from other Government entities
48,107,835
65,497,493
Surplus for the year
14,936,622
7,389,554
Fund balance at beginning of year
12,523,095
5,133,541
Fund balance at end of year
27,459,717
12,523,095
Deficit before grants and contributions
-55-
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
25.
Trust Funds (cont'd)
Trust Funds comprise the Scholarship and Training Funds, which represent contributions
received from GlaxoSmithKline ("GSK"), ExxonMobil ("EM") Oil Singapore Pte Ltd, leading
Japanese companies and other organizations for the Group's training, scholarships and
human resource management projects.
Trust Funds also include contributions received from other Government entities for joint
collaboration initiatives and development projects.
26.
Operating grants from Government
Group and Board
2014
2015
$
$
Note
146,805,781
146,690
147,544,761
146,952 471
147,544,761
Income tax expense
Subsidiaries of the Board are subject to tax under Section 13(1)(e) of the Singapore Income
Tax Act. Reconciliation between the tax expense and the product of accounting surplus
multiplied by the applicable corporate tax rate for the year ended 31 March 2015 is as follows:
Group
2014
$
2015
$
Reconciliation of effective tax rate
Profit before income tax of subsidiaries
Tax expense at statutory tax rate of 17%
(2014:17%)
Adjustments:
Deductions under Productivity and Innovation
Credit("PIC") scheme
Non-deductible expenses
Non-taxable income
Tax incentives
Tax exempt income
Tax rebates
Under provision for prior year
-56-
84,000
1,602
56,000
10,320
85,602
66,320
812,177
848,903
138,070
144,314
(43,907)
(25,140)
1,602
(19,729)
30,748
(10,200)
(33,216)
(32,455)
(23,462)
10,320
85,602
66,320
—
Current tax expense
Current year
Under provision for prior year
25,177
(10,200)
—
27.
—
15
18
,
Operating grants from Government
Amount transferred from deferred capital grants
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
27.
Income tax expense (cont'd)
Under the Financial Sector Incentive ("FSI") Scheme, the profits of EDBI Pte Ltd arising from
provision of fund management services to its related corporations were taxed at a
concessionary rate of 10% for the period from 30 January 2012 to 31 March 2014.
Tax provision at the statutory rate of 17% (2014: 17%) has been made for all other taxable
income.
28.
Key management personnel compensation
Key management personnel of the Group are those persons having the authority and
responsibility for planning, directing and controlling the activities of the Group. The core
management are considered as key management personnel of the Group.
Key management personnel compensation for the year ended 31 March 2015 is as follows:
Group
2014
$
$
2015
Salaries and other short-term employee benefits
Contribution to Central Provident Fund
9,960,386
349,118
8,787,090
10,309,504
Commitments
(a) Operating lease commitments where the Group is the lessee
The Group leases office equipment, motor vehicles and office premises under noncancellable lease arrangements expiring at various dates till 2026. The Group also enters
into contracts for services rendered by an external vendor under a service contract
expiring in 2017.
At the reporting date, commitments in respect of such operating leases with a term of
more than one year are as follows:
$
Group and Board
2014
2015
$
29.
8,527,251
259,839
Payable:
Within 1 year
After 1 year but within 5 years
More than 5 years
-57-
15,492,000
17,516,000
748,000
14,730,000
28,720,000
286,000
33,756,000
43,736,000
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
29.
Commitments (cont'd)
(b) Operating lease commitments where the Group is the lessor
The Group leases out office premises under non-cancellable lease arrangements expiring
at various dates till 2018. At the reporting date, commitments in respect of such operating
leases with a term of more than one year are as follows:
$
$
Group and Board
2014
2015
Receivable:
Within 1 year
After 1 year but within 5 years
1,588,000
2,845,000
1,588,000
4,433,000
4,433,000
6,021,000
(c) Capital commitments
As at the reporting date, the capital expenditure contracted by the Group but not provided
for in the financial statements is $301,000(2014: $110,000).
Related parties
The Board is established as a statutory board and is an entity related to the Government of
Singapore. The Board's related parties refer to Government-related entities including
Ministries and other Statutory Boards.
As a statutory board of the Government of Singapore, it receives grants from the Government
of Singapore and makes contribution to the Consolidated Fund, as disclosed in the financial
statements.
In addition to the above, the Board holds the shares of EDB Investments Pte Ltd as a trustee
for the Minister for Finance Inc., the beneficial owner. The principal activity of EDB
Investments Pte Ltd is to invest in strategic projects of a developmental nature which will
generate new business and technology opportunities for Singapore.
During the year, significant transactions between the Group and EDB Investments Group are
as follows:
Group
2014
$
2015
$
30.
12,535,000
Management fees
-58-
13,370,000
Economic Development Board and its subsidiaries
Notes to the Financial Statements
For the financial year ended 31 March 2015
31.
New accounting standards not yet adopted
The Group has not applied the following accounting standards (including its consequential
amendments) and interpretations that have been issued as of the reporting date but are not
yet effective:
Effective for annual
periods beginning
on or after
Reference
Description
SB-FRS 19
Various
Various
SB-FRS 114
SB-FRS 27
Defined Benefit Plans: Employee Contributions
Improvements to SB-FRSs (January 2014)"
Improvements to SB-FRSs (February 2014)**
Regulatory Deferral Accounts
Equity Method in Separate Financial
Statements
Clarification of Acceptable Methods of
Depreciation and Amortisation
1 July 2014
1 July 2014
1 July 2014
1 January 2016
1 January 2016
Accounting for Acquisitions of Interests in Joint
Operations
1 January 2016
SB-FRS 16,
SB-FRS 38
SB-FRS 111
1 January 2016
The standards and interpretations above are expected to have no material impact on the
financial statements in the period of initial application.
" Improvements to SB-FRSs (January 2014) include changes to SB-FRS 102 Share-based
Payment, SB-FRS 103 Business Combination, SB-FRS 108 Operating segments, SB-FRS 16
Property, Plant and Equipment, SB-FRS 24 Related Party Disclosures and SB-FRS 38
Intangible Assets.
** Improvements to SB-FRSs (February 2014) include changes to SB-FRS 103 Business
Combinations, SB-FRS 113 Fair Value Measurement and SB-FRS 40 Investment Property.
-59-