ngee ann polytechnic · deferred income 18 6,893 30-advances for student loans 19 4,848 4,858 4,674...

Ngee Ann Polytechnic

Annual Financial Statements31 March 2014

Building a betterworking world


General Information

Council

Mr Tang Kin FeiMrs Ong Yang Sock DeborahMr Chia Mia ChiangMr Ti Boon Wee ClarenceMr Goh Kim HockProfessor Ho Yew KeeProfessor Khoo Li PhengProfessor Koh Cher Chiew FrancisMr Lee Sew lam RichardCOL Ong Tze-Ch'inMr Pek Lian GuanAssociate Professor Sim Heng Joo JoeMr Suhaimi SallehMr Tan Kang Uei AnthonyMs Tan Shona FrancoiseMr Teo Miang Yeow JamieMr Yeong Bou Wai DanielMr Yue Lip Sin

Principal

Mr Ti Boon Wee Clarence

Registered Office

535 Clementi RoadSingapore 599489

Auditor

Ernst &Young LLP

Index

- Chairman- Deputy Chairperson

(up to 31 March 2014)(appointed on 1 May 2014)

(appointed on 1 May 2014)

Page

Statement by Ngee Ann Polytechnic Council 1

Independent Auditor's Report 2

Balance Sheet 4

Statement of Comprehensive Income 5

Statement of Changes in Funds and Reserves 6

Cash Flow Statement 7

Notes to the Financial Statements 8


Statement by Ngee Ann Polytechnic Council

In the opinion of the Council,

(i) the accompanying balance sheet, statement of comprehensive income, statement of

changes in funds and reserves and cash flow statement together with notes thereto, are

drawn up in accordance with the provisions of the Ngee Ann Polytechnic Act (Cap. 207, 1985

Revised Edition) and the Statutory Board Financial Reporting Standards so as to present

fairly, in all material respects, the state of affairs of the Polytechnic as at 31 March 2014 and

the results, changes in funds and reserves and cash flows of the Polytechnic for the year

ended on that date; and

(ii) at the date of this statement, there are reasonable grounds to believe the Polytechnic will be

able to pay its debts and as and when they fall due.

On behalf of the Council

Mr Tang Kin FeiChairman

`~,v,~~~Je~

Mr Ti Boon Wee ClarencePrincipal

26 June 2014

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Independent Auditor's ReportFor the year ended 31 March 2014

Independent Auditor's Report to the Council of Ngee Ann Polytechnic

Report on the Financial Statements

We have audited the accompanying financial statements of Ngee Ann Polytechnic (the

"Polytechnic") which comprise the balance sheet as at 31 March 2014, and the statement of

comprehensive income, statement of changes in funds and reserves and cash flow statement for

the year then ended, and a summary of significant accounting policies and other explanatory

information.

Management's responsibility for the financial statements

The Polytechnic's management is responsible for the preparation and fair presentation of these

financial statements in accordance with the provisions of the Ngee Ann Polytechnic Act (Cap. 207,

1985 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 Polytechnic'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 Polytechnic's internal control. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of

accounting estimates made by the Polytechnic's 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.

Opinion

In our opinion, the financial statements are properly drawn up in accordance with the provisions of

the Act and Statutory Board Financial Reporting Standards so as to present fairly, in all material

respects, the state of affairs of the Polytechnic as at 31 March 2014 and the results, changes in

funds and reserves and cash flows of the Polytechnic for the year ended on that date.

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Independent Auditor's ReportFor the year ended 31 March 2014

Independent Auditor's Report to the Council of Ngee Ann Polytechnic

Report on Other Legal and Regulatory Requirements

Management's Responsibility for Compliance with Legal and Regulatory Requirements

The Polytechnic's 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 the Polytechnic's 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 the Polytechnic's management's compliance.

Opinion

In our opinion:

(a) the receipts, expenditure, investment of moneys and the acquisition and disposal of assets

by the Polytechnic during the year are, in all material respects, in accordance with the

provisions of the Act; and

(b) proper accounting and other records have been kept, including records of all assets of the

Polytechnic whether purchased, donated or otherwise.

Ernst &Young LLP

Public Accountants andChartered AccountantsSingapore

26 June 2014

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Balance Sheet as at 31 March 2014

Note 31 March 2014 31 March 2013 1 Aprii 2012(Restated) (Restated)

$'000 $'000 $'000

Unrestricted funds 4 357,372 311,233 279,382

Restricted fund - Ngee Ann PolytechnicFund 31 226,135 229,822 218,082

Total funds of the Polytechnic 583,507 541,055 497,464

Trust funds 21 5,351 5,448 5,249

Represented by:

AssetsNon-current assetsProperty, plant and equipment 5 349,797 283,718 242,954

Intangible assets 6 11,268 1,287 1,275

Membership in Ngee Ann Alumni 7 64 93 121

Subsidiaries 8 475 475 475

Amounts due from subsidiaries 9 237 237 144

Loans to Ngee Ann Alumni - - 168

Loans to students 10 6,000 6,125 6,129

367,841 291,935 251,266

Current assetsInventories 31 31 1

Prepayments 941 1, 868 1, 682

Sundry receivables and deposits 11 9,689 8,134 9,585

Government grants receivables 12 14,344 56,538 12,668

Amounts due from subsidiaries 9 182 280 94

Loans to Ngee Ann Alumni 7 - 168 167

Loans to students 10 946 1,031 1,225

Investments 13 383,511 372,793 300,763

Derivative financial instruments 14 574 73 231

Fixed deposits 15 12,769 14,945 30,966

Cash and bank balances 16 187,810 117,472 157,204

610,797 573,333 514,586

Less: LiabilitiesCurrent liabilitiesPayables and accruals 17 46,236 33,128 28,954

Deferred income 18 5,396 5,815 5,659

Advances for student loans 19 649 824 1,425

Derivative financial instruments 14 86 415 202

52,367 40,182 36,240

Net current assets 558,430 533,151 478,346

Non-current liabilitiesDeferred income 18 6,893 30 -

Advances for student loans 19 4,848 4,858 4,674

Deferred capital grants 20 331,023 279,143 227,474

342,764 284,031 232,148

Net assets of the Polytechnic 583,507 541,055 497,464

Net assets of Trust Funds 21 5,351 5,448 5,249

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

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Statement of Comprehensive Income for the year ended 31 March 2014

Unrestricted funds Restricted funds TotalNote 2013/2014 2012/2013 201312014 2012/2013 2013/2014 2012/2013

$'000 $'000 $'000 $'000 $'000 $'000IncomeStudent fees 57,508 54,441 - 146 57,508 54,587Other income 22 15,248 11,180 2,776 3,134 18,024 14,314

72,756 65,621 2,776 3,280 75,532 68,901

Less: ExpenditureStaff costs 23 209,998 188,972 - - 209,998 188,972Depreciation of property,plant and equipment 5 24,317 33,139 8 134 24,325 33,273

Amortisation of intangibleassets 6 2,469 514 4 32 2,473 546Repairs and maintenance 13,306 14,453 - - 13,306 14,453Public utilities 7,999 8,386 7,999 8,386Staff development andbenefits 4,530 5,418 - - 4,530 5,418

Teaching and librarymaterials 5,384 5,101 18 - 5,402 5,101

Tools, furniture andequipment expensed off 3,922 5,250 - - 3,922 5,250

Scholarships, bursariesand grants 2,135 2,210 4,242 4,122 6,377 6,332

Transport andcommunication 1,693 2,644 5 3 1,698 2,647Student development,activities and welfare 24 14,099 11,506 2,001 1,987 16,100 13,493Goods and services taxexpense 5,045 4,547 108 63 5,153 4,610Other expenditure 25 11,519 10,659 106 187 11,625 10,846

306,416 292,799 6,492 6,528 312,908 299,327

(233,660) (227,178) (3,716) (3,248) (237,376) (230,426)Non-operatingincome/(expense)Other income 26 22,066 12,616 5,887 15,608 27,953 28,224Other expenses 27 (12,316) (4,152) (6,691) (1,247) (19,007) (5,399)

9,750 8,464 (804) 14,361 8,946 22,825

Operating (deficit)/surplusbefore grants (223,910) (218,714) (4,520) 11,113 (228,430) (207,601)

GrantsOperating grants fromgovernment 28 233,257 217,020 - - 233,257 217,020Deferred capital grantsamortised 20 30,826 28,383 - - 30,826 28,383

264,083 245,403 - - 264,083 245,403

Surplus/(deficit) for the year 40,173 26,689 (4,520) 11,113 35,653 37,802Other comprehensiveincome for the year, net oftax - - - - - -

Total comprehensiveincome/(expense) forthe year 40,173 26,689 (4,520) 11,113 35,653 37,802


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Statement of Changes in Funds and Reserves for the year ended 31 March 2014

Balance at 1 April 2012 (as previously reported)

Restatement (Note 39)

Balance at 1 April 2012 (as restated)

Total comprehensive income for the year

Transfer of net realised income from Ngee Ann KongsiEndowment Fund to finance operations

Transfer (to)/from funds

MOE matching grant for donations to be received

Donations received

Balance at 31 March 2013 (as restated)

Balance at 1 April 2013 (as previously reported)

Restatement (Note 39)

Balance at 1 April 2013 (as restated)

Total comprehensive income/(expense) for the year

Transfer of net realised income from Ngee Ann KongsiEndowment Fund to finance operations

MOE matching grant for donations to be received

Donations received

Unrestricted Funds Restricted Funds

Endowment EndowmentAccumulated funds Accumulated funds

surplus (Capital) Subtotal surplus (Capital) Subtotal Total

$'000 $'000 $'000 $'000 $'000 $'000 $'000

253,643 1,039 254,682 43,481 174,601 218,082 472,764

24,700 - 24,700 - - - 24,700

278,343 1,039 279,382 43,481 174,601 218,082 497,464

26,689 - 26,689 11,113 - 11,113 37,802

4,395 - 4,395 (4,395) - (4,395) -

(1) - (1) 1 - 1 -

-

768 768 - 30 30 798

-

-

-

-

4,991 4,991 4,991

309,426 1,807 311,233 50,200 179,622 229,822 541,055

284,726 1,807 286,533 50,200 179,622 229,822 516,355

24,700 - 24,700 - - - 24,700

309,426 1,807 311,233 50,200 179,622 229,822 541,055

40,173 - 40,173 (4,520) - (4,520) 35,653

5,249 - 5,249 (5,249) - (5,249) -

-

717 717 - 570 570 1,287

-

-

-

-

5,512 5,512 5,512

Balance at 31 March 2014 354,848 2,524 357,372 40,431 185,704 226,135 583,507


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Cash Flow Statement for the year ended 31 March 2014

2013/2014 201212013$'000 $'000

Cash flows from operating activitiesOperating deficit before grants (228,430) (207,601)Adjustments for:Depreciation of property, plant and equipment 24,325 33,273Amortisation of intangible assets 2,473 546Amortisation of alumni membership 29 28Write off of bad debts -loans to students 31 14Write off of advances for student loans (11) -Loss on disposal of property, plant and equipment and intangible assets 6,483 3,299Interest income-fixed deposits (654) (699)

- investments (6,914) (7,015)- student loans (6) (4)Dividend income (4,379) (3,636)Fair value loss/(gain) on financial assets at fair value through profit or lossand derivatives 10,304 (16,870)

Operating deficit before working capital changes (196,749) (198,665)Increase in inventories - (30)(Increase)/decrease in receivables (10,918) 1,734Increase in payables 17,731 2,219

Cash used in operations (189,936) (194,742)Donations received for Endowment Funds 5,512 4,991Interest received from student loans 6 4Advance of loans to students (1,672) (1,713)Repayment of students and staff loans 1,851 1,897

Net cash used in operating activities (184,239) (189,563)

Cash flows from investing activitiesPurchase of investments (242,248) (203,759)Purchase of property, plant and equipment (93,008) (76,073)Purchase of intangible assets (201) (564)Dividends received 4,326 3,540Interest received-fixed deposits 648 708

- investments 6,866 6,935Proceeds from disposal of property, plant and equipment 80 95Proceeds from disposal of investments 221,597 149,165Repayment from Ngee Ann Alumni 168 167

Net cash used in investing activities (101,772) (119,786)

Cash flows from financing activitiesRepayment from subsidiaries 474 93Funds paid on behalf of subsidiaries (376) (447)Repayment of advances for student loans (1,586) (1,385)Grants received for student loans 1,412 968Operating and capital grants received 354,249 254,367

Net cash generated from financing activities 354,173 253,596

Net increase/(decrease) in cash and cash equivalents 68,162 (55,753)Cash and cash equivalents at beginning of year 132,417 188,170

Cash and cash equivalents at end of year 200,579 132,417

The cash and cash equivalents comprise:- Fixed deposits (Note 15) 12,769 14,945

- Cash and bank balances (Note 16) 187,810 117,472

Cash and cash equivalents at end of year 200,579 132,417


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Notes to the Financial Statements - 31 March 2014

General information

The Polytechnic is established under the Ngee Ann Polytechnic Act, (Cap. 207) ofSingapore and is under the purview of the Ministry of Education (MOE). As a statutoryboard, the Polytechnic is subject to the directions of the Ministry of Education and isrequired to comply with policies and instructions issued from time to time by the supervisingministry and other government ministries and departments such as the Ministry of Finance(MOF).

The Polytechnic is located at 535 Clementi Road, Singapore 599489.

The principal activity of the Polytechnic is to provide relevant diploma courses to meet thegrowing needs of industry and commerce in Singapore.

The principal activities of its subsidiaries are stated in Note 8.

The number of employees as at 31 March 2014 was 1,726 (31 March 2013: 1,697).

The financial statements of the Polytechnic for the year ended 31 March 2014 wereauthorised for issue by the Council on the date of the Statement by the Ngee AnnPolytechnic Council.

2. Summary of significant accounting policies

2.1 Basis of preparation

The financial statements have been prepared in accordance with the Statutory BoardFinancial Reporting Standards (SB-FRS). The financial statements have been preparedon the historical cost basis except as disclosed in the accounting policies below. Thefinancial statements are presented in Singapore Dollars (S$) which is also the functionalcurrency. All values in the tables are rounded to the nearest thousands ($'000) asindicated.

2.2 SB-FRSs effective in the financial year

The accounting policies have been consistently applied by the Polytechnic and areconsistent with those used in the previous financial year except in the current financialyear, the Polytechnic has adopted all the new or revised SB-FRSs that are effective forannual periods beginning on or after 1 April 2013. The adoption of these standards andinterpretations did not have any effect on the financial performance or position of thePolytechnic.

2.3 SB-FRSs issued but not yet effective

The Polytechnic has not applied the new and revised SB-FRSs, which have been issuedbut are not yet effective, in these financial statements. The Polytechnic's managementexpects that the adoption of the new and revised SB-FRSs which have been issued but arenot yet effective will have no material impact on the financial statements in the period ofinitial application.

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2.4 Fund accounting

Unrestricted Funds

Funds that are expendable at the discretion of the Polytechnic are accounted for underunrestricted funds.

Restricted Funds

Funds that are set up for specific purposes which may be declared by the donors) orcreated through legal process or have specific restriction on the management's discretionregarding the treatment of the funds dissolution are accounted for under restricted funds.

The operating results of both the unrestricted funds and restricted funds maintained by thePolytechnic are included in the statement of comprehensive income of the Polytechnic.

Donations from external sources to set up or augment the capital of the endowment fundsare taken directly to these funds. Income and expenditure of endowment funds are takendirectly to restricted funds.

Assets and liabilities of the unrestricted and restricted funds are pooled in the balancesheet.

Trust Funds

Funds that are held by the Polytechnic as the appointed trustee are accounted for as trustfunds. The income and expenditure relating to trust funds are accounted for directly in thefunds. The net assets of the trust funds are disclosed as a separate item in the balancesheet.

Allocation of income and expenses to funds

The money from various funds is co-mingled for investment purposes. Investment incomeand expenses are apportioned to the funds based on the investment units held by the fundat the end of each month.

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2.5 Property, plant and equipment

(a) Measurement

All items of property, plant and equipment are initially recorded at cost.Subsequent to recognition, property, plant and equipment other than freehold landand artwork are measured at cost less accumulated depreciation and anyaccumulated impairment losses. The cost includes the cost of replacing part of theproperty, plant and equipment and borrowing costs that are directly attributable tothe acquisition, construction or production of a qualifying property, plant andequipment. The cost of an item of property, plant and equipment is recognised asan asset if, and only if, it is probable that future economic benefits associated withthe item will flow to the Polytechnic and the cost of the item can be measuredreliably.

When significant parts of property, plant and equipment are required to be replacedin intervals, the Polytechnic recognises such parts as individual assets with specificuseful lives and depreciation, respectively. Likewise, when a major inspection isperformed, its cost is recognised in the carrying amount of the plant and equipmentas a replacement if the recognition criteria are satisfied. All other repair andmaintenance costs are recognised in profit or loss as incurred.

Purchases of property, plant and equipment costing less than $2,000 and buildingrenovations below $200,000 are charged to profit or loss in the year of purchase.

The carrying values of property, plant and equipment are reviewed for impairmentwhen events or changes in circumstances indicate that the carrying value may notbe recoverable.

The residual value, useful life and depreciation method are reviewed at eachfinancial year-end, and adjusted prospectively, if appropriate.

An item of property, plant and equipment is derecognised upon disposal or whenno future economic benefits are expected from its use or disposal. Any gain orloss on derecognition of the asset is included in profit or loss in the year the assetis derecognised.

(b) Depreciation

Freehold land and artwork have an unlimited useful life and therefore are notdepreciated. Assets under construction are not depreciated as these assets are notyet available for use.

Depreciation is computed on a straight-line basis over the estimated useful lives ofthe assets as follows:

Buildings on freehold land 50 yearsLeasehold land and buildings Lease period or 50 years, whichever is the

lowerFurniture, equipment and machinery 3 to 10 yearsBuilding improvements 5 years

Depreciation is provided from the month of acquisition to the month before thedisposal of assets.

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2.6 Intangible assets

Computer software including software development costs are capitalised on the basis ofthe cost incurred to acquire or develop the software for its intended use.

Computer software is stated at cost less accumulated amortisation and impairment loss, ifany. These costs are amortised using the straight-line method over their estimated usefullife of 5 years. Computer software costing less than $2,000 is charged to profit or loss inthe year of purchase.

2.7 Impairment ofnon-financial assets

The Polytechnic assesses at each reporting date whether there is an indication that anasset may be impaired. If any indication exists, or when an annual impairment testing foran asset is required, the Polytechnic makes an estimate of the asset's recoverable amount.

An asset's recoverable amount is the higher of an assets or cash-generating units fairvalue less costs of disposal and its value in use and is determined for an individual asset,unless the asset does not generate cash inflows that are largely independent of those fromother assets or group of assets. Where the carrying amount of an asset or cash-generatingunit exceeds its recoverable amount, the asset is considered impaired and is written downto its recoverable amount. In assessing value in use, the estimated future cash flowsexpected to be generated by the asset are discounted to their present value using apre-taxdiscount rate that reflects current market assessments of the time value of money and therisks specific to the asset. In determining fair value less costs of disposal, recent markettransactions are taken into account, if available. If no such transactions can be identified,an appropriate valuation model is used.

The Polytechnic bases its impairment calculation on detailed budgets and forecastcalculations which are prepared separately for each of the Polytechnic's cash-generatingunits to which the individual assets are allocated. These budgets and forecast calculationsare generally covering a period of five years. For longer periods, along-term growth rate iscalculated and applied to project future cash flows after the fifth year.

Impairment losses are recognised in profit or loss.

An assessment is made at each reporting date as to whether there is any indication thatpreviously recognised impairment losses may no longer exist or may have decreased. Ifsuch indication exists, the Polytechnic estimates the asset's or cash-generating unitsrecoverable amount. A previously recognised impairment loss is reversed only if there hasbeen a change in the estimates used to determine the asset's recoverable amount sincethe last impairment loss was recognised. If that is the case, the carrying amount of theasset is increased to its recoverable amount. That increase cannot exceed the carryingamount that would have been determined, net of depreciation, had no impairment lossbeen recognised previously. Such reversal is recognised in profit or loss.



2.8 Consolidation

The financial statements of the subsidiaries have not been consolidated with thePolytechnic's financial statements as the Polytechnic is of the view that they are notmaterial to the Polytechnic's financial statements. The balances and transactions of thePolytechnic are not affected by the non-consolidation.

2.9 Subsidiaries

A subsidiary is an entity over which the Polytechnic has the power to govern the financialand operating policies so as to obtain benefits from its activities. The Polytechnic generallyhas such power when it directly or indirectly holds more than 50% of the issued sharecapital, or controls more than half of the voting power, or controls the composition of theboard of directors. Investments in the subsidiaries are stated at cost less impairmentlosses.

2.10 Financial instruments

(a) Financial assets

Initial recognition and measurement

Financial assets are recognised when, and only when, the Polytechnic becomes aparty to the contractual provisions of the financial instrument. The Polytechnicdetermines the classification of its financial assets at initial recognition.

When financial assets are recognised initially, they are measured at fair value,plus, in the case of financial assets not at fair value through profit or loss, directlyattributable transaction costs.

Subsequent measurement

The subsequent measurement of financial assets depends on their classification asfollows:

Financial assets at fair value throuah profit or loss

Financial assets at fair value through profit or loss include financial assets held fortrading and financial assets designated upon initial recognition at fair value throughprofit or loss. Financial assets are classified as held for trading if they are acquiredfor the purpose of selling or repurchasing in the near term. This category includesderivative financial instruments that are not designated as hedging instruments inhedge relationships as defined by SB-FRS 39. Derivatives, including separatedembedded derivatives are also classified as held for trading unless they aredesignated as effective hedging instruments.

Subsequent to initial recognition, financial assets at fair value through profit or lossare measured at fair value. Any gains or losses arising from changes in fair valueof the financial assets are recognised in profit or loss. Net gains or net losses onfinancial assets at fair value through profit or loss include exchange differences,interest and dividend income.

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2.10 Financial instruments (cont'd)

(a) Financial assets (cont'd)

Subsequent measurement (cont'd)

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

Derivatives embedded in host contracts are accounted for as separate derivativesand recorded at fair value if their economic characteristics and risks are not closelyrelated to those of the host contracts and the host contracts are not measured atfair value with changes in fair value recognised in profit or loss. These embeddedderivatives are measured at fair value with changes in fair value recognised inprofit or loss. Reassessment only occurs if there is a change in the terms of thecontract that significantly modifies the cash flows that would otherwise be required.

Loans and receivables

Non-derivative financial assets with fixed or determinable payments that are notquoted in an active market are classified as loans and receivables. Subsequent toinitial recognition, loans and receivables are measured at amortised cost using theeffective interest method, less impairment. Gains and losses are recognised inprofit or loss when the loans and receivables are derecognised or impaired, andthrough the amortisation process.

Held-to-maturity investments

Non-derivative financial assets with fixed or determinable payments and fixedmaturity are classified as held-to-maturity when the Polytechnic has the positiveintention and ability to hold the investment to maturity. Subsequent to initialrecognition, held-to-maturity investments are measured at amortised cost using theeffective interest method, less impairment. Gains and losses are recognised inprofit or loss when the held-to-maturity investments are derecognised or impaired,and through the amortisation process.

Derecognition

A financial asset is derecognised where the contractual right to receive cash flowsfrom the asset has expired. On derecognition of a financial asset in its entirety, thedifference between the carrying amount and the sum of the consideration receivedand any cumulative gain or loss that had been recognised in other comprehensiveincome is recognised in profit or loss.

Regular way purchase or sale of a financial asset

All regular way purchases and sales of financial assets are recognised orderecognised on the trade date i.e., the date that the Polytechnic commits topurchase or sell the asset. Regular way purchases or sales are purchases or salesof financial assets that require delivery of assets within the period generallyestablished by regulation or convention in the marketplace concerned.

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(b) Financial liabilities

Initial recognition and measurement

Financial liabilities are recognised when, and only when, the Polytechnic becomesa party to the contractual provisions of the financial instrument. The Polytechnicdetermines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognised initially at fair value plus in the case offinancial liabilities not at fair value through profit or loss, directly attributabletransaction costs.

Subsequent measurement

The measurement of financial liabilities depends on their classification as follows:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities heldfor trading. Financial liabilities are classified as held for trading if they are acquiredfor the purpose of selling in the near term. This category includes derivativefinancial instruments that are not designated as hedging instruments in hedgerelationships. Separated embedded derivatives are also classified as held fortrading unless they are designated as effective hedging instruments.

Subsequent to initial recognition, financial liabilities at fair value through profit orloss are measured at fair value. Any gains or losses arising from changes in fairvalue of the financial liabilities are recognised in profit or loss.

The Polytechnic has not designated any financial liabilities upon initial recognitionat fair value through profit or loss.

Financial liabilities at amortised cost

After initial recognition, financial liabilities that are not carried at fair value throughprofit or loss are subsequently measured at amortised cost using the effectiveinterest method. Gains and losses are recognised in profit or loss when theliabilities are derecognised, and through the amortisation process.

Derecognition

A financial liability is derecognised when the obligation under the liability isdischarged or cancelled or expires. When an existing financial liability is replacedby another from the same lender on substantially different terms, or the terms of anexisting liability are substantially modified, such an exchange or modification istreated as a derecognition of the original liability and the recognition of a newliability, and the difference in the respective carrying amounts is recognised in profitor loss.

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(c) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is presentedin the balance sheet, when and only when, there is a currently enforceable legalright to set off the recognised amounts and there is an intention to settle on a netbasis, or to realise the assets and settle the liabilities simultaneously.

2.11 Impairment of financial assets

The Polytechnic assesses at each reporting period whether there is any objective evidencethat a financial asset is impaired.

(a) Financial assets carried at amortised cost

For financial assets carried at amortised cost, the Polytechnic first assesseswhether objective evidence of impairment exists individually for financial assetsthat are individually significant, or collectively for financial assets that are notindividually significant. If the Polytechnic determines that no objective evidence ofimpairment exists for an individually assessed financial asset, whether significantor not, it includes the asset in a group of financial assets with similar credit riskcharacteristics and collectively assesses them for impairment. Assets that areindividually assessed for impairment and for which an impairment loss is, orcontinues to be recognised are not included in a collective assessment ofimpairment.

If there is objective evidence that an impairment loss on financial assets carried atamortised cost has been incurred, the amount of the loss is measured as thedifference between the asset's carrying amount and the present value of estimatedfuture cash flows discounted at the financial assets original effective interest rate.If a loan has a variable interest rate, the discount rate for measuring anyimpairment loss is the current effective interest rate. The carrying amount of theasset is reduced through the use of an allowance account. The impairment loss isrecognised in profit or loss.

When the asset becomes uncollectible, the carrying amount of impaired financialasset is reduced directly or if an amount was charged to the allowance account,the amounts charged to the allowance account are written off against the carryingvalue of the financial asset.

To determine whether there is objective evidence that an impairment loss onfinancial assets has been incurred, the Polytechnic considers factors such as theprobability of insolvency or significant financial difficulties of the debtor and defaultor significant delay in payments.

If in a subsequent period, the amount of the impairment loss decreases and thedecrease can be related objectively to an event occurring after the impairment wasrecognised, the previously recognised impairment loss is reversed to the extentthat the carrying amount of the asset does not exceed its amortised cost at thereversal date. The amount of reversal is recognised in profit or loss.

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2.11 Impairment of financial assets (cont'd)

(b) Financial assets carried at cost (cont'd)

If there is objective evidence (such as significant adverse changes in the businessenvironment where the issuer operates, probability of insolvency or significantfinancial difficulties of the issuer) that an impairment loss on financial assetscarried at cost has been incurred, the amount of the loss is measured as thedifference between the assets carrying amount and the present value of estimatedfuture cash flows discounted at the current market rate of return for a similarfinancial asset. Such impairment losses are not reversed in subsequent periods.

2.12 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits, andshort-term, highly liquid investments that are readily convertible to known amount of cashand which are subject to an insignificant risk of changes in value.

2.13 Provisions

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

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

2.14 Income recognition

Income is recognised to the extent that it is probable that the economic benefits will flow tothe Polytechnic and the income can be reliably measured, regardless of when the paymentis made. Income is measured at the fair value of consideration received or receivable,taking into account contractually defined terms of payment and excluding taxes or duty.The Polytechnic assesses its income arrangements to determine if it is acting as principalor agent. The following specific recognition criteria must also be met before income isrecognised:

Rendering of services

Income from tuition and other services are recognised in the period in which the servicesare rendered.

Contributions and donations

Contributions from Ngee Ann Kongsi and other donations are recognised when received.

Interest income

Interest income is recognised on atime-proportion basis using the effective interestmethod.

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2.14 Income recognition (cont'd)

Dividend income

Dividend income is recognised when the right to receive payment is established.

Rental income

Rental income from operating leases on property, plant and equipment is recognised on astraight-line basis over the lease term.

2.15 Employee benefits

Defined Contribution Plan

The Polytechnic contributes to the Central Provident Fund ("CPF"), a defined contributionplan regulated and managed by the Government of Singapore, which applies to themajority of the employees. The Polytechnic's contributions to CPF are charged to profit orloss in the period to which the contributions relate.

Employee leave entitlements

Employee entitlements to annual leave are recognised as a liability when they accrue to theemployees. The estimated liability for leave is recognised for services rendered byemployees up to the end of the reporting period.

Key management personnel

Key management personnel are those persons having the authority and responsibility forplanning, directing and controlling the activities of the Polytechnic. Principal, DeputyPrincipals, Senior Directors, Registrar and Directors are considered key managementpersonnel.

2.16 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated intoSingapore Dollars at the rate of exchange ruling at the end of the reporting period.Transactions in foreign currencies are recorded on initial recognition in Singapore Dollarsat exchange rates approximating those ruling at the transaction dates. Exchangedifferences arising from such transactions are recognised in profit or loss in the period inwhich they arise.

2.17 Income tax

All registered and exempt charities will enjoy automatic income tax exemption. There is,hence, no income tax payable by the Polytechnic.

- 17 -



2.18 Grants

Money received in advance from grantor for subsequent purchase or financing of specificproperty, plant and equipment or capital projects are recognised as a liability in the GrantsReceived in Advance account in the first instance. The grants are recognised either asincome or deferred income only upon utilisation. For purchases of assets which arecapitalised, the grant is recognised as deferred income by taking it to the Deferred CapitalGrants for subsequent release to profit or loss to match the depreciation of the relatedassets. For purchases of assets which are expensed off directly, the grant is taken to profitor loss to match the expenses. Balances in the Grants Received in Advance representseither unutilised money for the purchase of specific assets or amounts due to be returnedto the grantor at the end of the project.

For grants that are given outright to the Polytechnic for its discretion to spend on thepurchase of assets, they are recognised immediately as deferred income in the DeferredCapital Grants in accordance with SB-FRS 20. The timing and extent of the release ofgrants to profit or loss depends on when the grant is spent to purchase assets and whetherthe assets are capitalised.

2.19 Derivative financial instruments

A derivative financial instrument is initially recognised at its fair value on the date thecontract is entered into and is subsequently carried at its fair value. The Polytechnic doesnot apply hedge accounting. Changes in the fair value of derivative instruments arerecognised in profit or loss in the financial year in which the changes arise.

2.20 Related parties

A related party is defined as follows:

(a) A person or a close member of that person's family is related to the Polytechnic ifthat person:

(i) Has control or joint control over the Polytechnic;

(ii) Has significant influence over the Polytechnic; or

(iii) Is a member of the key management personnel of Polytechnic or of aparent of the Polytechnic.

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2.20 Related parties (cont'd)

(b) An entity is related to the Polytechnic if any of the following conditions applies:

(i) The entity and the Polytechnic are members of the same group (whichmeans that each parent, subsidiary and fellow subsidiary is related to theothers).

(ii) One entity is an associate or joint venture of the other entity (or anassociate or joint venture of a member of a group of which the other entityis a member).

(iii) Both entities are joint ventures of the same third party.(iv) One entity is a joint venture of a third entity and the other entity is an

associate of the third entity.(v) The entity is apost-employment benefit plan for the benefit of employees

of either the Polytechnic or an entity related to the Polytechnic. If thePolytechnic is itself such a plan, the sponsoring employers are also relatedto the Polytechnic.

(vi) The entity is controlled or jointly controlled by a person identified in (a).(vii) A person identified in (a) (i) has significant influence over the entity or is a

member of the key management personnel of the entity (or of a parent ofthe entity).

3. Significant accounting estimates and judgements

The preparation of the financial statements in conformity with SB-FRS requiresmanagement to make judgements, estimates and assumptions that affect the application ofaccounting policies and the reported amounts of assets, liabilities, income and expenses atthe end of each reporting period. However, uncertainty about these assumptions andestimates could result in outcomes that require a material adjustment to the carryingamount of the asset or liability affected in the future periods.

In the process of applying the Polytechnic'sthe following judgements, which have threcognised in the financial statements.

Depreciation of property, plant and equipment

accounting policies, management has madee most significant effect on the amounts

Property, plant and equipment are depreciated on a straight-line basis over their estimateduseful lives. The useful lives of these property, plant and equipment are estimated to bewithin 3 to 50 years. The carrying amount of the Polytechnic's property, plant andequipment as at 31 March 2014 was $349,797,000 (31 March 2013: $283,718,000).Changes in the expected level of usage could impact the economic useful lives and theresidual values of these assets, therefore future depreciation charges could be revised.

4. Unrestricted Funds

The unrestricted funds of $357,372,000 (31 March 2013: $311,233,000) include$32,788,000 (31 March 2013: $34,592,000) of Ngee Ann Polytechnic - Education Fund,$1,104,000 (31 March 2013: $1,000,000) of sinking funds and $27,273,000 (31 March2013: $27,621,000) of scholarship and bursary funds.

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5. Property, plant and equipmentFurniture,

Leasehold equipmentFreehold lands and and Work-in- Trust

lands buildings machinery progress Artwork Total property+

$'000 $'000 $'000 $'000 $'000 $'000 $'000

CostAt 1 April 2012 24,700 492,050 154,094 5,263 18 676,125 560

Additions - 35,338 10,831 31,260 - 77,429 -

Reclassification - 3,509 204 (3,713) - - -

Disposals - (30,943) (9,497) - - (40,440) -

At 31 March 2013 and 1 April 2013 24,700 499,954 155,632 32,810 18 713,114 560

Additions 16,000 25,095 8,523 59,552 80 109,250 -

Reclassification - 31,208 627 (31,835) - - -

Transfer to intangible assets (Note 6) - - - (12,287) - (12,287) -

Disposals - (59,961) (24,814) - - (84,775) -

At 31 March 2014 40,700 496,296 139,968 48,240 98 725,302 560

Accumulated depreciationAt 1 April 2012 - 308,186 124,985 - - 433,171 202

Depreciation for the year - 21,159 12,114 - - 33,273 11

Disposals - (27,611) (9,437) - - (37,048) -

At 31 March 2013 and 1 April 2013 - 301,734 127,662 - - 429,396 213

Depreciation for the year - 12,943 11,382 - - 24,325 11

Disposals - (53,576) (24,640) - - (78,216) -

At 31 March 2014 - 261,101 114,404 - - 375,505 224

Net carrying amountAt 31 March 2014 40,700 235,195 25,564 48,240 98 349,797 336

At 31 March 2013 24,700 198,220 27,970 32,810 18 283,718 347

+ Trust property consists of one leasehold apartment (999 year lease from 1 January 1965) held under trust funds (see Note 21)

- 20 -



5. Property, plant and equipment (cont'd)

In previous years, a plot of freehold land was donated by Ngee Ann Kongsi to the Polytechnicwhich in turn surrendered the land to the Government of Singapore. In return, a fresh statutoryland grant was issued by the Government to Ngee Ann Polytechnic on 26 January 1984. Thisfreehold land was valued at $24,700,000 by an independent valuer on an open-market basis asat 25 July 1987.

In 2013/14, another plot of freehold land was donated by Ngee Ann Kongsi to the Polytechnic.This freehold land was valued at $16,000,000 by an independent valuer on an open-marketbasis as at 24 March 2014.

6. Intangible assets

31 March 31 March2014 2013

$'000 $'000Computer software

Cost

At 1 April 22,418 22,067Additions 171 560Transfer from property, plant and equipment (Note 5) 12,287 —Disposals (1,057) (209)

At 31 March 33,819 22,418

Accumulated amortisation

At 1 April 21,131 20,792Amortisation for the year 2,473 546Disposals (1,053) (207)

At 31 March 22,551 21,131

Net carrying amount

At 31 March 11,268 1,287

7. Membership in Ngee Ann AlumniLoans to Ngee Ann Alumni

The Ngee Ann Alumni (NAA) is anon-profit society registered with the Registry of Societies.The objective of the NAA is to promote the interest of the Ngee Ann Polytechnic and themembers of the alumni.

Ngee Ann Polytechnic purchased 80 10-year term honorary memberships with no voting rightsin NAA in Feb 2006.

- 21 -



7

8.

Membership in Ngee Ann Alumni (conYd)Loans to Ngee Ann Alumni (cont'd)

In FY 2006/2007, the Polytechnic obtained its Council's approval to provide financial support tothe NAA for their clubhouse project over a period of 7 years. Under this arrangement, thePolytechnic purchased 1,340 redeemable ordinary memberships (non-transferable) for$670,000. Part of the proceeds to NAA was used to offset the outstanding loan of $250,000due from NAA. The 1,340 memberships were redeemable by the NAA from the 5th to 8th yearfrom financial year 2006/2007. 670 memberships were redeemed and the remaining 670memberships were converted into a loan to NAA in FY 2011/12. The loan to NAA which wasunsecured and non-interest bearing, was fully repaid in FY 2013/2014.

The cost and carrying amount of the Polytechnic's membership in the NAA are as follows:

Membership type

With No Voting Rights

10-year term honorary membership(at cost less amortisation)

Subsidiaries

Unquoted equity shares, at cost

No. of Memberships

31 March 31 March2014 2013

- 22 -

80 80

Cost

31 March 31 March2014 2013

$'000 $'000

64 93

31 March 31 March2014 2013

$'000 $'000

475 475



8. Subsidiaries (cont'd)

Country ofincorporation/place of Percentage of equity

Name of subsidiary Principal activities business held

31 March 31 March2014 2013

Held by thePolytechnic

NP Enterprise (S) Pte To invest in spin-off projects Singapore 100 100Ltd from research work of the

Polytechnic's staff andstudents

Held through NPEnterprise (S) PteLtd

Ngee Ann To facilitate the setting up of Singapore 100 100international Pte Ltd overseas education centres

NPE Services (S) Pte Provision of consultancy Singapore 100 100Ltd services

Social Lab Ltd^ Manage and operate social Singapore 100 100enterprises with the aim ofraising awareness among thegeneral public, especiallystudents, on the physicallyhandicapped segments of theSingapore population

^ Incorporated as a company limited by guarantee

The financial statements of the subsidiaries have not been consolidated with the Polytechnic'sfinancial statements as the Polytechnic is of the view that the subsidiaries' financial statementsare not material to the Polytechnic's financial statements. The balances and transactions ofthe Polytechnic are not affected by the non-consolidation.

- 23 -



Subsidiaries (cont'd)

The Polytechnic has a 100% (2012/2013: 100%) legal interest in the School of Science andTechnology, Singapore, ("SST") a company limited by guarantee. The principal activities ofSST is to provide a holistic and balanced secondary school education with a focus on appliedlearning, innovation and entrepreneurship in science and technology. Upon the winding up ordissolution of SST, all its assets and liabilities shall not be paid or distributed among themembers of SST, but shall be dealt in accordance with Articles of Association of SST and theCharities Act (Chapter 37), and shall be given or transferred to other institutions registeredunder Charities Act (Chapter 37). As the Polytechnic does not have the ability to exercisecontrol over SST and does not derive any material economic benefits from the activities of SST,SST is not accounted for as a subsidiary of the Polytechnic despite the Polytechnic's legalinterest in SST.

Amounts due from subsidiaries

31 March 31 March2014 2013

$'000 $'000

Non-currentAmounts due from subsidiaries (non-trade)* 237 237

Current

Amounts due from subsidiaries (non-trade)** 182 280

The amounts due from subsidiaries represent advances given. These amounts areunsecured, interest-free and are not expected to be repaid within one year.

** The amounts due from subsidiaries represent payments made on behalf. These amountsare unsecured, interest-free and are repayable on demand.

- 24 -



10. Loans to students

The Polytechnic's total outstanding loans to students and graduates are as follows:

31 March 31 March2014 2013

$'000 $'000

Tuition fee loans 5,114 4,995

Overseas student programs loans 206 306

Study loans 422 481

Computer loans 1,204 1,374

6,946 7,156

Represented by:

Amounts receivable within one year 946 1,031

Amounts receivable after one year 6,000 6,125

6,946 7,156

Tuition fee loans, overseas student programs loans, study loans and computer loans are

unsecured, interest-free during the course of study and are repayable by monthly instalments

over periods ranging from 2 to 10 years after the borrowers' graduation. Interest is charged

based on the average of the prevailing prime rates of the 3 local banks. The interest rate for

these loans at the end of the reporting period is 4.75% (31 March 2013: 4.75%) per annum.

11. Sundry receivables and deposits

31 March 31 March2014 2013

$'000 $'000

Accrued dividends 297 244

Accrued interest 2,185 2,131

Sundry receivables 4,274 3,035

Grant receivables 1,900 2,139

Receivables from brokers (Note 35(b)) 1,041 598

Allowance for doubtful debts (8) (13)

9,689 8,134

- 25 -



12. Government grants receivables

These are grants from the government to finance the operations of the Polytechnic.

2013/2014 201212013

$'000 $'000

Balance at 1 April 56,538 12,668Grants received from Government (344,374) (252,522)

Development grants utilised and transferred todeferred capital grants (Note 20) 63,823 65,481

Grants utilised and taken to statement of comprehensiveincome (Note 28) 225,969 208,933

Others 12,388 21,978

Balance at 31 March 14,344 56,538

13. Investments

Financial assets at fair value through profit or loss(Note 13(a))

Managed by fund managers (Note 35(b))Managed internally

31 March 31 March2014 2013

$'000 $'000

383, 511 372, 793

334,805 311,902dQ ~nF Ffl RQ1

,s~s.s, o i i ,s i ~, i a,s

Investments are mainly denominated in Singapore dollars. Investments held in foreign

currencies are as follows:

31 March 2014 31 March 2013

$'000 $'000

AUD 6,345 8,638

CNH 994 586

E U R 806 1, 667

GBP 330 1,151

HKD 21,152 20,979

IDR 3,665 4,597

JPY 2,170 912

KRW 8,723 7,717

MYR 3,687 3,735

PHP 2,581 1,843

THB 3,251 6,116

TW D 2,608 2,854

USD 66,622 54,355

26 -



13. Investments (cont'd)

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

BondsInvestments managed by fund managers- Corporate bonds- Corporate convertible bonds- Government agency bonds- Government bonds- Others- Unit trust bonds-Other fixed incomeFunds — Corporate bonds

Investments managed internally- Corporate bonds- Government agency bonds- Unit trust bonds

Total for Bonds

- 27 -

31 March 31 March2014 2013

$'000 $'000

154,410 135,7152,710 4,799

22,217 22,60618,450 5,9174,495 5,5434,435 18,190

—

5428,421 4,658

215,138 197, 970

7,588 20,5761,952 2,083

31,822 31,564

41,362 54,223

256,500 252,193



13. Investments (cont'd)

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

31 March 31 March2014 2013

$'000 $'000

Quoted equity investmentsInvestments managed by fund managers

- Common stock 108,033 105,463- Stapled securities 1,057 2,486

- Exchange traded funds 4,091 2,560- Preferred stock 1,161 2,062

- Unit trust equities 230 -- Rights/ Warrants — 13- Mutual funds 3,643 -

- Others 1,452 1,348

119,667 113,932

Investments managed internally- Common stock 4,165 5,018

- Stapled securities 98 121- Preferred stock 3,035 1,483

- Unit trust equities 46 46

7,344 6,668

Total for quoted equity investments 127,011 120,600

Total financial assets at fair value through profitor loss 383,511 372,793

(i) The bonds bear interest rates ranging from 0.05% to 7.00% (31 March 2013: 1.11 % to7.50%). The maturity dates of bonds range from 2 April 2014 to 31 December 2049 (31March 2013: 8 April 2013 to 31 December 2049).

(ii) Investments managed by fund managers are administered by 6 (31 March 2013: 6)asset management companies ("fund managers"). The fund managers are givendiscretionary powers within certain guidelines to invest the funds. The terms of the fundmanagement agreements will expire between January 2015 to January 2017 (31March 2013: January 2014 to January 2016).

- 28 -



14. Derivative financial instruments

31 March 2014Forward currency contracts

31 March 2013Forward currency contracts

Contractlnotionalamount Assets Liabilities

$'000 $'000 $'000

61,403 574 (86)

51,917 73 (415)

The forward currency contracts are used in the currency hedging programs which aim to

reduce the foreign currency risks of the investment portfolio. The Polytechnic does not apply

hedge accounting.

15. Fixed deposits

31 March 31 March2014 2013

$'000 $'000

Managed by fund managers (Note 35(b)) 7,740 12,693

Managed internally 5,029 2,252

12,769 14,945

Included in fixed deposits managed internally is an amount of $151,000 (31 March 2013:

$578,000) set aside to fund the normal operating expenditure of the Polytechnic.

The fixed deposits managed by fund managers form part of the funds placed with fund

managers and are the remaining balance of the total funds not invested by the fund managers

in the other asset classes permitted under the investment guidelines.

The fixed deposits bear interest rates ranging from 0.01 % to 1.38% (31 March 2013: 0.01 % to

1.10%). The maturity dates range from 1 April 2014 to 19 December 2014 (31 March 2013: 1

April 2013 to 28 September 2013).

- 29 -



16. Cash and bank balances

31 March 31 March2014 2013

$'000 $'000

Cash managed by fund managers (Note 35(b)) 30,177 30,438

Cash with Accountant-General's Department 157,633 87,034

Cash and bank balances 187,810 117,472

On 2 November 2009, the Accountant-General's Department ("AGD") issued a circular 4/2009

to set out the arrangements to centrally manage the cash of all Statutory Boards and Ministries

under the Centralised Liquidity Management (CLM) scheme. This scheme involves placing

funds directly with AGD and would allow for better credit risk management by the government.

Under this scheme, the Polytechnic's cash at bank in excess of a certain limit are transferred to

the AGD. Cash placed with AGD is interest-bearing. Interest is computed on the basis as set

out in the Accountant-General's Department Circular No. 4/2009.

17. Payables and accruals

Accrued expensesCPF payableRefundable depositsAccrual for unconsumed leaveSundry payablesPayables to brokers (Note 35(b))Refundable non-government grants received in advance

18. Deferred income

CurrentStudent fees received in advanceService income fees received in advance

Non-currentService income fees received in advance

- 30 -

31 March 31 March2014 2013

$'000 $'000

18,956 9,8639, 343 9, 753400 368

8,275 7,8222,513 3,3903,193 1,5493, 556 383

46,236 33,128

31 March 31 March2014 2013

$'000 $'000

4,835 5,815561 —

5,396 5,815

6, 893 30



19. Advances for student loans

2013/2014 2012/2013

$'000 $'000

Balance at 1 April 5,682 6,099Funds received from MOE 1,412 968Funds refunded to MOE (1,586) (1,385)Written-off (11) —

Balance at 31 March 5,497 5,682

Represented by:

Cash and cash equivalents 117 287Tuition fee loans 5,114 4,995Overseas student programs loans 95 145Study loans 171 255

5,497 5,682

Amounts payable within one year 649 824Amounts payable after one year 4,848 4,858

5,497 5,682

The advances from MOE are for the purpose of extending loans to students mainly to assistthem in paying their tuition fees. They are unsecured and repayable following the collection ofthe underlying loans (including interest as described in Note 10) by the Polytechnic from thestudents.

- 31 -



20. Deferred capital grants

Government Non-Government Totai

2013/2014 2012/2013 2011/2012 2013/2014 2012/2073 2011/2012 2013/2014 2012/2013 2011/2012

(Restated) (Restated) (Restated) (Restated)

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Balance at 1 April (as previouslyreported) 296,791 244,844 249,492 7,052 7,330 7,492 303,843 252,174 256,984

Restatement (Note 39) (24,700) (24,700) (24,700) - - - (24,700) (24,700) (24,700)

Balance at 1 April (restated) 272,091 220,144 224,792 7,052 7,330 7,492 279,143 227,474 232,284

Grants recognised as deferredincome:

Interest income - - 24 - - - - - 24

Grants received from Government 25,875 21,662 25,552 - - - 25,875 21,662 25,552

Donated Assets 35 3 26 35 3 26

Transfer from operating grantsreceivables (Note 12) 63,823 65,481 2,576 - - - 63,823 65,481 2,576

Transfer from other grants - - - 261 993 1,154 261 993 1,154

361,824 307,287 252,944 7,313 8,326 8,672 369,137 315,613 261,616

Grants taken to statement ofcomprehensive income:

Purchase of non-capitalised assetsusing IT and F&E grants (Note 28) (7,288) (8,087) (8,017) - (7,288) (8,087) (8,017)

Amortisation of deferred capital grants (29,747) (27,109) (24,783) (1,079) (1,274) (1,342) (30,826) (28,383) (26,125)

(37,035) (35,196) (32,800) (1,079) (1,274) (1,342) (38,114) (36,470) (34,142)

Balance at 31 March (restated) 324,789 272,091 220,144 6,234 7,052 7,330 331,023 279,143 227,474

Represented by:

Grants utilised 280,962 230,987 183,139 6,234 7,052 7,330 287,196 238,039 190,469

Grants unutilised 43,827 41,104 37,005 43,827 41,104 37,005

324,789 272,091 220,144 6,234 7,052 7,330 331,023 279,143 227,474



20. Deferred capital grants (cont'd)

in FY 2006/2007, the Ministry of Education (MOE) revised the funding framework for

Information Technology (IT) and Furniture and Equipment (F&E) grants. Under the revised

framework, the grants are now given outright to the Polytechnic for its discretion to spend on

the purchase of IT and F&E assets. Surpluses (if any) can be retained by the Polytechnic for

its future purchases of IT and F&E assets.

21. Trust Funds

The Liu Yin Soon Scholarship Trust Fund (Registration No.: 0657) was registered as a charity

under the Charities Act (Cap. 37) on 27 May 1989. The trustee of the fund is Ngee Ann

Polytechnic. The objective of the fund is to award scholarships to students of the Polytechnic,

who in the view of the trustee of the fund have excelled in their performance.

There are no fund-raising activities for Liu Yin Soon Scholarship Trust Fund during the year.

The capital sum in the Liu Yin Soon Scholarship Trust Fund was from the sale proceeds of two

pieces of bequeathed properties.

The Ngee Ann Polytechnic Students' Union Trust Fund comprises monies held in trust by the

Polytechnic for the students' union.

Liu Yin Soon Ngee Ann PolytechnicScholarship Students' Union Trust Totai

2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

$'000 $'000 $'000 $'000 $'000 $'000

Trust Funds (capital)Balance at 1 April and31 March 2,280 2,280 2,187 2,187 4,467 4,467

Accumulated surplusBalance at 1 April 681 547 300 235 981 782

(Deficit)/surplus for theyear (39) 134 (58) 65 (97) 199

Balance at 31 March 642 681 242 300 884 981

Total funds as at 31 March 2,922 2,961 2,429 2,487 5,351 5,448

IncomeInterest income 43 46 39 46 82 92

Dividend income 27 24 24 24 51 48

Other income 39 144 — 109 39 253

109 214 63 179 172 393

Less: ExpenditureDisbursement ofscholarship awards 54 50 50 — 104 50

Donation to Ngee AnnPolytechnic StudentAid Fund — — — 100 — 100

Depreciation 11 11 — — 11 11

Other expenditure 83 19 71 14 154 33

148 80 121 114 269 194

(Deficit)/surplus for theyear (39) 134 (58) 65 (97) 199

- 33 -



21. Trust Funds (cont'd)

Liu Yin Soon Ngee Ann PolytechnicScholarship Students' Union Trust Total

2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

$'000 $'000 $'000 $'000 $'000 $'000

Represented by:

Leasehold property(Note 5) 560 560 — — 560 560

Less: Accumulateddepreciation (224) (213) — — (224) (213)

Net carrying amount 336 347 — — 336 347

Sundry receivables anddeposits 23 16 17 16 40 32

Investments 2,319 2,320 2,123 2,203 4,442 4,523

Fixed deposits 76 89 70 85 146 174

Cash and bank balances 195 202 238 193 433 395

Payables (27) (13) (19) (10) (46) (23)

Net assets at the end ofthe year 2,922 2,961 2,429 2,487 5,351 5,448

22. Other income

Included in other income are:

Unrestricted Funds Restricted Funds Total

2013/2014 2012/2013 2013/2014 201212013 2013/2014 2012/2013

$'000 $'000 $'000 $'000 $'000 $'000

Rental income 2,444 2,257 — — 2,444 2,257

Donations, grants andsponsorships 8,712 4,327 2,749 3,085 11,461 7,412

34 -



23. Staff costs

2013/2014

$'000

Key management personnel

- Salaries and related costs 8,408- CPF contributions and SDF levy 435

8,843Other than key management personnel

- Salaries and related costs 182,522- CPF contributions and SDF levy 18,633

201.155

201212013

$'000

7,520397

7,917

163, 28917, 766

181.055

~i uu,y/L

24. Student development, activities and welfare

This item includes the cost of overseas trips for students who took part in the Polytechnic's

overseas student development programmes.

25. Other expenditure

Included in other expenditure are:


2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

$'000 $'000 $'000 $'000 $'000 $'000

Consultancy fees 259 196 — — 259 196

Consultancy fees paid tostaff 38 23 — — 38 23

Gebiz fees 226 264 — — 226 264

Guard services 994 861 — — 994 861

Professional andmanagement expenses 1,142 1,331 6 — 1,148 1,331

Printing and stationery 879 823 2 3 881 826

Write off of bad debts —loans to students 27 12 4 2 31 14

- 35 -



26. Non-operating income


2013/2014 2012/2013 2013/2014 2012/2013 201312014 2012/2013

$'000 $'000 $'000 $'000 $'000 $'000

Interest income 3,967 3,721 3,607 3,997 7,574 7,718

Dividend income 2,099 1,532 2,280 2,104 4,379 3,636

Freehold land donatedby Ngee Ann Kongsi(Note 5) 16,000 - - - 16,000 -

Fairvalue gain onfinancial assets at fairvalue through profit orloss and derivatives - 7,363 - 9,507 - 16,870

22,066 12,616 5,887 15,608 27,953 28,224

27. Non-operating expenses

Included in non-operating expenses are:


2013/2014 2012/2013 2013/2014 2012/2013 2013/2014 2012/2013

$'000 $'000 $'000 $'000 $'000 $'000

Fund managementexpenses 383 313 418 422 801 735

Loss on foreign exchange 538 362 562 579 1,100 941

Loss on disposal ofproperty, plant andequipment and intangibleassets 6,376 3,289 107 10 6,483 3,299

Fair value loss on financialassets at fair valuethrough profit or loss andderivatives 4,866 - 5,438 - 10,304 -

28. Operating grants from Government

Operating grants (Note 12)Transferred from deferred capital grant (Note 20)

- 36 -

2013/2014 201212013

$'000 $'000

225,969 208,933

233,257 217,020



29. Related party transactions

Other than disclosed elsewhere in the financial statements, the following significant

transactions with related parties took place at terms agreed between the parties during the

financial year:

2013/2014 2012/2013$'000 $'000

SubsidiariesPurchase of goods 90 93

Recovery of cost 275 240

Consultancy fees 318 388

Rental income 74 134

30. Capital commitments

2013/2014 2012/2013

$'000 $'000

Amount approved and contracted for 79,088 54,745

Amount approved but not contracted for 53,277 25,013

31. Restricted fund - Ngee Ann Polytechnic Fund

The Ministry of Education has an Education Central Fund, which has been designated as anInstitution of Public Character (IPC). NP Fund was established on 1 Apr 2003 as a member of

this Education Central Fund. Under this membership, the Fund is allowed to issue tax-

deductible receipts to donors. Donations received by the Polytechnic are channelled to the

Fund.

The Fund has several sub-funds and the total fund balance comprised mainly accumulated

surpluses of the sub-funds and the capital of endowment funds. A separate set of audited

financial statements is prepared for the Fund.

The Fund is managed by a Management Committee which is also the Council Committee of the

Polytechnic. Under the rules and regulations of the Fund, the Fund shall not be dissolved

unless so decided by the Polytechnic's Council and the Commissioner of Charities is notified.

In the event that the Fund is dissolved, the balance in the Fund shall be donated to another

fund for the advancement of education in a Polytechnic which has IPC status or in the absence

of such a fund, to the Education Fund of the Ministry of Education.

- 37 -



32. Ngee Ann Kongsi's Contribution

Under Section 20A of the Ngee Ann Kongsi (Incorporation) Ordinance, Chapter 370, the

Kongsi's "Committee of Management shall set apart 75°/o of all monies received by the

Corporation by way of income from any source and of all monies arising from the sale or

disposition or from the acquisition of any property belonging to the Corporation and shall

contribute the same to the Ngee Ann Polytechnic constituted under the Ngee Ann Polytechnic

Act".

On 17 July 2007 the Ngee Ann Kongsi (Incorporation) (Amendment) Act 2007 was passed in

Parliament to reduce the donations to be made by the Corporation to the Polytechnic from 75%

of all monies received by the Corporation to 25% of the Corporation's net income. This

arrangement was effective from FY 2008/2009.

During the financial year, the Polytechnic received $7,132,000 (2012/2013: $6,971,000) from

the Ngee Ann Kongsi, of which $2,000,000 (2012/2013: $2,000,000) was taken to the Ngee

Ann Kongsi Education Fund and the balance to the Ngee Ann Kongsi Endowment Fund.

In accordance with the agreed arrangements, during the financial year, $5,249,000 (2012/2013:

$4,395,000) representing 75% of the realised income of the Ngee Ann Kongsi Endowment

Fund received in the previous financial years was transferred to unrestricted fund to finance the

operations of the Polytechnic. This amount reduces the operating grant received from the

Government correspondingly for the current financial year.

As disclosed in Note 5 to the financial statements, Ngee Ann Kongsi has also donated freehold

lands to the Polytechnic.

33. IPC Regulations

The fund has complied with the requirement that the total fund-raising and sponsorship

expenses have not exceeded 30% of the total gross receipts from the fund raising and

sponsorships for the financial year.

The donation monies received are used in accordance with the objective of the fund.

To promote greater disclosure and accountability to the public, the Governance Evaluation

Checklist of all IPCs will be published on the Charity Portal (www.charities.gov.sq) from 1 April

2009. In line with the requirement, the Polytechnic's checklist can be found on the above

website.

- 38 -



34. Fair value of financial instruments

A. Fair value of financial instruments that are carried at fair value

The following table shows an analysis of financial instruments carried at fair value bylevel of fair value hierarchy:

Financial assets:Financial assets at fair valuethrough profit and loss(Note 13)- Common stock- Exchange traded funds- Preferred stock- Unit trust equities- Stapled securities- Others- Corporate bonds- Corporate convertible

Bonds- Government agency bonds- Government bonds- Others- Unit trust bonds- Funds — Corporate bonds

Derivative financialinstruments (Note 14)

- Forward currencycontracts

At 31 March 2014

Financial liabilities:Derivative financialinstruments (Note 14)


At 31 March 2014

Quotedprices inactive Significant

markets for other Significantidentical observable unobservable

instruments inputs inputs Total

(Level 1) (Level 2) (Level 3)

$'000 $'000 $'000 $'000

112,198 — — 112,1984,091 — — 4,0914,196 — — 4,196276 — — 276

1,155 — — 1,1555,095 — — 5,095

— 161,998 — 161,998

— 2,710 — 2,710— 24,169 — 24,169

— 18,450 — 18,450— 4,495 — 4,495— 36,257 — 36,257

— 8,421 — 8,421

— 574 — 574

127,011 257,074 — 384,085

- 39 -

— (86) — (86)

— (86) — (86)



34. Fair value of financial instruments (cont'd)

A. Fair value of financial instruments that are carried at fair value (cont'd)

Quotedprices inactive Significant

markets for other Significantidentical observable unobservable

instruments inputs inputs Total

(Level 1) (Level 2) (Level 3)

$'000 $'000 $'000 $'000Financial assets:Financial assets at fair valuethrough profit and loss(Note 13)- Common stock 110,481 — — 110,481

- Exchange traded funds 2,560 — — 2,560- Preferred stock 3,545 — — 3,545

- Unit trust equities 46 — — 46- Rights/ warrants 13 — — 13- Stapled securities 2,607 — — 2,607

- Others 1,348 — — 1,348- Corporate bonds — 156,291 — 156,291- Corporate convertible

Bonds — 4,799 — 4,799- Government agency bonds — 24,689 — 24,689- Government bonds — 5,917 — 5,917- Others — 5,543 — 5,543- Unit trust bonds — 49,754 — 49,754

- Other fixed income — 542 — 542- Funds — Corporate bonds — 4,658 — 4,658

Derivative financialinstruments (Note 14)

- Forward currencycontracts — 73 — 73

At 31 March 2013 120,600 252,266 — 372,866

Financial liabilities:Derivative financialinstruments (Note 14)


At 31 March 2013

- 40 -

(415) (415)

— (415) — (415)



34. Fair value of financial instruments (cont'd)

A. Fair value of financial instruments that are carried at fair value (cont'd)

Fair value hierarch

The Polytechnic classifies fair value measurement using a fair value hierarchy thatreflects the significance of the inputs used in making the measurements. The fair valuehierarchy has the following levels:

— Level 1 - Quoted prices (unadjusted) in active markets for identical assets orliabilities

— Level 2 - Inputs other than quoted prices included within Level 1 that areobservable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e.,derived from prices), and

— Level 3 - Inputs for the asset or liability that are not based on observable marketdata (unobservable inputs)

Determination of fair values

Fair value is the amount for which an asset could be exchanged, or a liability settled,between knowledgeable, willing parties in an arm's length transaction.

The fair values of unquoted securities, if traded in active markets such as over-the-counter securities, are based on quoted market prices at the end of the reportingperiod. The fair values of other unquoted securities that are not traded in activemarkets are determined by valuation from independent sources. Derivative financialinstruments are valued using widely accepted pricing models, with market observableinputs including volatilities, yield curves, foreign exchange spot and forward rates.

B. Fair value of financial instruments by classes that are not carried at fair valueand whose carrying amounts are reasonable approximation of fair value

Sundry receivables and deposits, Amounts due from subsidiaries, Government grantsreceivables, Fixed deposits, Cash and bank balances, Payables and accruals andAdvances for student loans

The carrying amounts of these financial assets and liabilities are reasonableapproximation of fair values, either due to their short term nature or that they arefloating rate instruments that are re-priced to market interest rates on or near the end ofthe reporting period.

Loans to students (non-current)

The carrying amounts of these financial assets are not materially different from the fairvalues determined using discounted estimated cash flows.

C. Fair value of financial instruments by classes that are not carried at fair valueand whose carrying amounts are not reasonable approximation of fair value

There are no financial instruments that are not carried at fair value and whose carryingamounts are not reasonable approximation of fair value.

- 41 -



35. Financial risk management objectives and policies

The Polytechnic has written investment guidelines for fund managers.

The Polytechnic, other than for investments managed by its fund managers, does not hold orissue derivative financial instruments for trading purposes or to hedge against fluctuations, ifany, in interest rates and foreign exchange.

(a) Financial risk factors

(i) Currency risk

Currency risk is the risk that the value of a financial instrument will fluctuatedue to changes in foreign exchange rates.

The Polytechnic, other than for investments managed by its fund managers,does not engage in any hedging activities. The fund managers manage theforeign currency risk arising from anticipated transactions denominated inforeign currencies, primarily in United States Dollars.

(ii) Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financialinstrument will fluctuate because of changes in market interest rates.

Surplus funds arising from the Polytechnic's operations are placed withreputable banks, investment in bonds, quoted equity investments andinvestment with fund managers. The Polytechnic's earnings are affected bychanges in interest rates due to the impact those changes have on its interestincome from bank deposits and interest bearing non-equity investments.

The Polytechnic's exposure to movements in market interest rates relatesprimarily to its floating interest rate investments, including investments withfund managers. The carrying values of these assets as at the end of thereporting period are as follows:

31 March 31 March2014 2013

$'000 $'000

Investments 31,147 29,824

With all other variables held constant, a 100 (2012/2013: 100) basis pointsincrease/decrease in interest rates will result in a $311,000 (2012/2013:$298,000) increase/decrease in the Polytechnic's surplus for the year.

- 42 -



35. Financial risk management objectives and policies (cont'd)

(a) Financial risk factors (cont'd)

(iii) Price risk

Price risk is the risk that the value of a financial instrument will fluctuate due tochanges in market prices whether those changes are caused by factorsspecific to the individual security or its issuer or factors affecting all securitiestraded in the market.

The investments that are subject to price risks total $127,011,000 (31 March2013: $120,600,000) as disclosed in Note 13. The market risk associated withthese investments is the potential loss in fair value resulting from the decreasein market prices of these investments. The management regularly monitorsthe recoverability of these investments and believes that it has adequatelyprovided for any exposure to potential loss in market value, if any. ThePolytechnic's investment strategies and policies are determined by itsInvestment Committee.

With all other variables held constant, a 10% (31 March 2013: 10%)increase/decrease of market values of all equities will result in $12,701,100 (31March 2013: $12,060,000) increase/decrease in the fair value of financialassets at fair value through profit and loss.

(iv) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instrumentshould a counterparty default on its obligations.

The Polytechnic has no significant concentration of credit risk. Cash and cashequivalents and investments are placed with reputable banks and fundmanagers.

Financial assets that are neither past due nor impaired

Receivables that are neither past due nor impaired are substantially studentswith a good collection track record with the Polytechnic.

- 43 -




(a) Financial risk factors (conYd)

(iv) Credit risk (cont'd)

Financial assets that are past due but not impaired

The aging analysis of receivables from students and non-students past due butnot impaired is as follows:

31 March 31 March2014 2013

$'000 $'000For non-student receivables

Past due 1 to 30 days 474 323Past due 31 to 60 days 366 453Past due 61 to 90 days 23 62Past due over 90 days 365 341

For student receivables

Past due 1 semester

- 44 -

1,228 1,179

63 328





(v) Liquidity risk

Liquidity risk is the risk that the Polytechnic will encounter difficulty in meeting financial obligations due to shortage of funds.

The Polytechnic maintain an adequate level of highly liquid assets in the form of cash and short-term bank deposits.

Analysis of financial instruments by remaining contractual maturities

The table below summarises the maturity profile of the Polytechnic's financial assets and liabilities at the end of the reporting period

based on contractual undiscounted repayment obligations.

Financial assets:

Sundry receivables and depositsGovernment grants receivablesAmounts due from subsidiariesLoans to studentsLoans to Ngee Ann AlumniInvestmentsDerivative financial instrumentsFixed depositsCash and bank balances

Total undiscounted financial assets

31 March 2014

$'000

One year One to fiveor less years Total

31 March 2013

$'000

One year One to fiveor less years Total

9,689 - 9,689 8,134 - 8,134

14,344 - 14,344 56,538 - 56,538182 237 419 280 237 517

946 6,000 6,946 1,031 6,125 7,156

-

-

-

168 - 168385,287 - 385,287 374,525 - 374,525

574 - 574 73 - 73

12,773 - 12,773 14,945 - 14,945187,810 - 187,810 117,472 - 117,472

611,605 6,237 617,842 573,166 6,362 579,528

- 45 -





(v) Liquidity risk (conYd)

Financial liabilities:

Payables and accrualsDeferred incomeDerivative financial instrumentsAdvances for staff and student loans

Total undiscounted financial liabilities

31 March 2014 31 March 2013

$'000 $'000

One year One to five One year One to fiveor less years Total or less years Total

46,236 — 46,236 33,128 — 33,128

5,396 6,893 12,289 5,815 30 5,84586 — 86 415 — 415649 4,848 5,497 824 4,858 5,682

52,367 11,741 64,108 40,182 4,888 45,070

Total net undiscounted financial assets/(liabilities) 559,238

- 46 -

(5,504) 553,734 532,984 1,474 534,458




(b) Amounts under fund management

The carrying amounts of funds under fund management by professional managers andheld in trust by a custodian can be analysed as follows:

Note 31 March 31 March2014 2013

$'000 $'000

Receivables from brokers 11 1,041 598Investments 13 334,805 311,902Derivative financial instruments, net 14 488 (342)Fixed deposits 15 7,740 12,693Cash and bank balances 16 30,177 30,438Payables to brokers 17 (3,193) (1,549)

J / I ,U~6 J~J~ /'FU

36. Classification of financial instruments

Note 31 March 31 March2014 2013

$'000 $'000

Loans and receivablesSundry receivables and deposits 11 9,689 8,134Government grants receivables 12 14,344 56,538Amounts due from subsidiaries 9 419 517Loans to students 10 6,946 7,156Loans to Ngee Ann Alumni 7 — 168Fixed deposits 15 12,769 14,945Cash and bank balances 16 187,810 117,472

231, 977 204, 930

Financial assets at fair value through profit orloss

Investments 13 383,511 372,793Derivative financial instruments 14 574 73

384,085 372,866

Financial liabilities carried at amortised costPayables and accruals 17 46,236 33,128Deferred income 18 12,289 5,845Advances for student loans 19 5,497 5,682

64,022 44,655

Financial liabilities at fair value through profit orloss

Derivative financial instruments 14 86 415

- 47 -



37. Capital management

The Polytechnic's main objective when managing capital is to safeguard the Polytechnic'sability to continue as a going concern. The Polytechnic considers the future capitalrequirements, prevailing and projected operating cash flows, projected capital expenditure andprojected strategic investment opportunities as part of its capital management process.

The Polytechnic is not subject to externally imposed capital requirements.

38. Taxation

All registered and exempt charities will enjoy automatic income tax exemption. There is, hence,no income tax payable by the Polytechnic.

39. Comparatives

As disclosed in Note 5 to the financial statements, in previous years, a plot of freehold land wasdonated by Ngee Ann Kongsi to the Polytechnic which in turn surrendered the land to theGovernment of Singapore. In return, a fresh statutory land grant was issued by the Governmentto Ngee Ann Polytechnic on 26 January 1984. The freehold land valued at S$24.7 million wasrecorded as deferred capital grants instead of donation income. Management has restated thecomparatives to correct the error as follows:

31 March 2013

As previouslyreported Restatement As restated$'000 $'000 $'000

Funds of the Polytechnic

Unrestricted funds

Non-current liabilitiesDeferred capital grants

40. Authorisation of financial statements

286,533 24,700 311,233

303,843 (24,700) 279,143

These financial statements were authorised for issue in accordance with a resolution of theCouncil of Ngee Ann Polytechnic on 26 June 2014.

- 48 -

ngee ann polytechnic · deferred income 18 6,893 30-advances for student loans 19 4,848 4,858 4,674...

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