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Sustainable EnergyAssociation ofSingapore (SEAS)

Annual Report 2018

Content

Annual Report 2018Sustainable Energy Association of Singapore

The Chairman’s Message01 03

Regional Outreach02 07

Knowledge Development03 15

Members Engagement04 18

SEAS Council05 23

SEAS Committee Structure06 28

Financial Data07 30

Chairman’sMessage

01

General Backdrop for Clean Energy The sustainable energy landscape has changed substantially since SEAS was set up 12 years back. There has been continuous drop in equipment costs making clean energy cost competitive especially in the case of solar and wind. Conversations have now moved from just generation technologies and energy efficiency to, smart grids, storage and block chain technologies that are set to make a big impact and enhance & accelerate the energy transition. In short, the new norm in energy transformation is becoming one where the energy portfolios are diversified and we move from a centralized, one-directional grid, into a decentralized, decarbonized, digitized network that’s smarter, more sustainable, cost effective andproductive. It is also imperative for the various energy players from traditional generation companies to renewable energy players to forge partnerships and look at business models that lead us to a low carbon path.

Singapore is on a path of transitioning to a low carbon economyand introduction of carbon tax and open electricity markets are steps in the right direction. Despite these positive trends, the pace of the transition is not on track to achieve the goals established in the Paris Agreement to keep global temperature rise well below 2 degrees Celsius. So how can we speed up the energy transitionwith renewables?

This is where organisations like SEAS and our members have to continue to push the envelope to accelerate the adoption of cleaner technologies and energy efficient processes. The main drivers in the last year have been demand of clean energy from adopters forexample Apple wanting to go 100% renewable and many other companies including DBS as well as government policies andincentives like carbon tax and Energy Conservation Act. We will continue to engage the government through dialogue tosmoothen the policy framework as and when required for scaling uprenewables, storage and promoting energy efficiency.

SEAS’ activities over the last year We have launched many services and programs along the way (shared in the annual report) but one of the more notable’s ones for 2018 would be our engagement with start-ups. We launched the Sustainable Energy Start up network (SESUN). As part of this program we will be working closely with the sustainable energy start-ups to assist them in the areas of test-bedding, investor pitching, legal clinics and connecting them to the sustainable energy ecosystem in general through our networking and training programs. SEAS also


0401. Chairman’s Message

launched a pitching competition “PowerACE” to showcase the cutting-edge technologies developed by start-ups and also provided a space for the selected start-ups to have a presence at the Innovation arena in the Asia Clean Energy Summit. This program has been enabled with support from Enterprise Singapore (ESG) and in partnership with Ecolab program of ERIAN.

SEAS continues to be at the forefront of knowledge transfer, working closely with partners from the government, unions and private sector. More than 800 professionals were upskilled through SEAS in 2018 through almost 50 different workshops and programs, in the area of sustainable energy. A total of 288 policy makers, projectdevelopers and financiers from 58 countries took part in our SECOE program which is in partnership with the ADB and Enterprise Singapore. The ACES conference attracted more than 1,499 participants with 35%comprising of high level, senior management from over 80 countries (largely from Asia, Europe and America). The participation from various sectors contributed to ACES being the leading conference in the region.

Future Plans SEAS is a well-recognised name in Singapore but we have made efforts to build regional partnerships too, so that it can be beneficial for our members. We established a regional partnership in energy efficiency byspearheading the set-up of an ESCO association network called the Asia Pacific Energy Efficiency Alliance (APEEA) in June 2018 in Manila. APPEA held their biannual meeting in Singapore along the side-lines of ACES in October 2018. We hope our energy efficiency members can benefit from the partnership.

We are also looking to activate more committees and working groups to address the needs of differentcompanies in SEAS. Some of the new committees that were launched are: a sustainable Infrastructurecommittee, marine renewables working group and a start-up working group. We hope this will address the needs of more companies in our membership and will also draw more new companies to join SEAS.

Our white papers have been very useful in bringing important industry led issues, initiatives andrecommendations to the government. We will be writing a Carbon white paper this year under Council member Sanjay Kuttan’s chairmanship and we hope that this will look at how we can accelerate our low carbonjourney in Singapore.

Lastly Dear members, SEAS is your association and the Council, Secretariat and I look forward to your continued support and participation. We can only continue to grow as an association if we all work together for the good of the Association. We will continue to strive as an Association to support and help each member grow and progress at your point of need. May 2019 be a successful, healthy and fulfilling year for all SEAS members.

General Backdrop for Clean Energy The sustainable energy landscape has changed substantially since SEAS was set up 12 years back. There has been continuous drop in equipment costs making clean energy cost competitive especially in the case of solar and wind. Conversations have now moved from just generation technologies and energy efficiency to, smart grids, storage and block chain technologies that are set to make a big impact and enhance & accelerate the energy transition. In short, the new norm in energy transformation is becoming one where the energy portfolios are diversified and we move from a centralized, one-directional grid, into a decentralized, decarbonized, digitized network that’s smarter, more sustainable, cost effective andproductive. It is also imperative for the various energy players from traditional generation companies to renewable energy players to forge partnerships and look at business models that lead us to a low carbon path.

Singapore is on a path of transitioning to a low carbon economyand introduction of carbon tax and open electricity markets are steps in the right direction. Despite these positive trends, the pace of the transition is not on track to achieve the goals established in the Paris Agreement to keep global temperature rise well below 2 degrees Celsius. So how can we speed up the energy transitionwith renewables?

This is where organisations like SEAS and our members have to continue to push the envelope to accelerate the adoption of cleaner technologies and energy efficient processes. The main drivers in the last year have been demand of clean energy from adopters forexample Apple wanting to go 100% renewable and many other companies including DBS as well as government policies andincentives like carbon tax and Energy Conservation Act. We will continue to engage the government through dialogue tosmoothen the policy framework as and when required for scaling uprenewables, storage and promoting energy efficiency.

SEAS’ activities over the last year We have launched many services and programs along the way (shared in the annual report) but one of the more notable’s ones for 2018 would be our engagement with start-ups. We launched the Sustainable Energy Start up network (SESUN). As part of this program we will be working closely with the sustainable energy start-ups to assist them in the areas of test-bedding, investor pitching, legal clinics and connecting them to the sustainable energy ecosystem in general through our networking and training programs. SEAS also

launched a pitching competition “PowerACE” to showcase the cutting-edge technologies developed by start-ups and also provided a space for the selected start-ups to have a presence at the Innovation arena in the Asia Clean Energy Summit. This program has been enabled with support from Enterprise Singapore (ESG) and in partnership with Ecolab program of ERIAN.

SEAS continues to be at the forefront of knowledge transfer, working closely with partners from the government, unions and private sector. More than 800 professionals were upskilled through SEAS in 2018 through almost 50 different workshops and programs, in the area of sustainable energy. A total of 288 policy makers, projectdevelopers and financiers from 58 countries took part in our SECOE program which is in partnership with the ADB and Enterprise Singapore. The ACES conference attracted more than 1,499 participants with 35%comprising of high level, senior management from over 80 countries (largely from Asia, Europe and America). The participation from various sectors contributed to ACES being the leading conference in the region.

Future Plans SEAS is a well-recognised name in Singapore but we have made efforts to build regional partnerships too, so that it can be beneficial for our members. We established a regional partnership in energy efficiency byspearheading the set-up of an ESCO association network called the Asia Pacific Energy Efficiency Alliance (APEEA) in June 2018 in Manila. APPEA held their biannual meeting in Singapore along the side-lines of ACES in October 2018. We hope our energy efficiency members can benefit from the partnership.

We are also looking to activate more committees and working groups to address the needs of differentcompanies in SEAS. Some of the new committees that were launched are: a sustainable Infrastructurecommittee, marine renewables working group and a start-up working group. We hope this will address the needs of more companies in our membership and will also draw more new companies to join SEAS.

Our white papers have been very useful in bringing important industry led issues, initiatives andrecommendations to the government. We will be writing a Carbon white paper this year under Council member Sanjay Kuttan’s chairmanship and we hope that this will look at how we can accelerate our low carbonjourney in Singapore.

Lastly Dear members, SEAS is your association and the Council, Secretariat and I look forward to your continued support and participation. We can only continue to grow as an association if we all work together for the good of the Association. We will continue to strive as an Association to support and help each member grow and progress at your point of need. May 2019 be a successful, healthy and fulfilling year for all SEAS members.


0501. Chairman’s Message

Er. Edwin Khew PBM

Yours sincerely,

SEAS TRAINING668 Participants were trained

in 41 training courses

ACES CONFERENCE1499 Participants from

80 Countries

ACES EXHIBITION3300 Visitors from

95 countries

HIGHLIGHTS FROM

SEAS 2018

MEMBERSHIP ENGAGEMENT335 Members took part in25 committee meetings

SECOE227 Participants from

58 countries took part in5 courses under SECOE

NETWORKING572 Participants attended

9 networking sessions

SOCIAL MEDIA98,968 total impressions

in SEAS LinkedIn& Facebook

RegionalOutreach

02

The 5th edition of the Asia Clean Energy Summit (ACES)was held from 31 October to 2 November 2018, featuring its most robust list to-date of speakers who set the benchmark for best practices, debated trends and solutions in the regional solar and clean energy industry while the ACES Exhibition was held over the first two days. ACES 2018 attracted more than 3,300 delegates & visitors with 35% comprising high level, senior management from over 95 countries, bringing together high-level regional thought leaders within the clean andrenewable energy industry to discuss the current trends and the use of clean energy technologies and how these can be further harnessed for the future.

ASIA CLEAN ENERGY SUMMIT 2018


0802. Regional Outreach

Mr Masagos Zulkifli, addressing the crowdat the ACES Opening Ceremony

ACES 2018 Opening Ceremony



Snapshots of ACES Conference Tracks



The ACES conference attracted more than 1,499 participants with 35% comprising high level,senior management from over 80 countries (largely from Asia, Europe and America). The participation from various sectors contributed to ACES being the leading conference in the region. Diverse clean energytopics were covered across the difference tracks under the ACES umbrella namely; Clean EnergyLeaders’ Dialogue, Solarising Singapore and Asia, Unlocking Solar Capital: Asia & Financial Summit,Digital Transformation of Energy, International Floating Solar Symposium, PV Asia Scientific Conference and Asian Conference on Energy, Power and Transportation Electrification.

Making its debut in Singapore this year was the 4th International Off-Grid Renewable Energy Conference which ran alongside as a co-located event organised by the International Renewable Energy Agency (IRENA). IRENA followed upon their inaugural event with its International Conference on Renewable Energy on Healthcare held on 2 November that aimed to raise awareness on the need to harness renewable energy to improve energy access for rural healthcare facilities.

Also for the first time, ACES saw two new tracks to its programme this year; the Annual Wind EnergyConference and the Annual Asia Energy Storage Conference.

ACES CONFERENCE

1499 PARTICIPANTS. 80 COUNTRIES.



ACES Exhibition is a marketplace for companies to showcase latest technologies, innovations and solutions and a valuable business networking platform for global industry leaders and sector specialists. EU Business Avenues in Southeast Asia and the Alliance for Rural Electrification partnered with SEAS to bring in a record of 3,300 visitors from 95 countries for this year’s show. This year also saw a series of technical seminars where industry professionals shared their products, projects and new development trends with the public. Graced by Guest-of-honour Dr Amy Khor, Senior Minister ofState for the Ministry of the Environment and Water Resources, SEAS launched the PowerACE competition for start-ups in the energy sector and provided them a platform at the ACES Exhibition under the ‘ACES Innovation Arena’ where energy start-ups showcased innovative ideas to industry-leading experts. Thirteen start-ups were chosen and were given an opportunity to pitch and display their products and services to a panel of esteemed judges. At the end of the day’s competition, Advanced Vision Analytics Pte Ltd (AVA Asia) clinched the top honour, bagging S$50,000 in grant amount from Enterprise Singapore. Lumani Pte Ltd followed up closeas the first runner-up while the second runner-up was Metron APAC Pte Ltd.

On the same platform, SEAS and Energy Research Institute @NTU signed their first Letter of Intent tostrengthen the feedback loops between research institute and industry, sharpening research focus and strengthening enterprises jointly under the ERI@N EcoLabs-Centre of innovation for Energy Systems and Sustainability initiative.

ACES EXHIBITION



ACES 2018 closed on a high note with thought leaders, policy makers and researchers from both the public and private sector pledging to co-create clean energy solutions that will help shape smart sustainable cities of the future. ACES 2018 has established itself as the region’s premier clean and renewable energy conference and exhibition and will drive the momentum towards a much-anticipated ACES 2019.

A Letter of Intent was signed between the Energy Research Institute @ NTU (ERI@N) and the Sustainable Energy Association of Singapore (SEAS)

3300 VISITORS. 95 COUNTRIES.



The Sustainable Energy Association of Singapore (SEAS), together with the Asian Development Bank (ADB) came together to launch the Sustainable Energy Centre of Excellence (SECOE) on the 19th of March 2015. SECOE aims to equip policy makers in the region with information and share experiences on matters of policy, technology and project financing in the sustainable energy sector.

A total of 637 policy makers, regulators and speakers from 49 countries attended the seminars, workshops and sharing sessions from 2015. SECOE is the first training centre of its kind to build capabilities, drive partnerships and bring key decision makers together under a structured programme in the field of clean and renewable energy. The Singapore government represented by Enterprise Singapore, is a supporting partner for SECOE and welcomes the collaboration between officials from the region and industry.

SECOE supported a workshop organised by ResponsAbility titled ‘GCPF Environmental & Social Workshop which was held from 14-16 March 2018. In 2018, SECOE also organised 3 workshops: Understanding Microgrid Market in Southeast Asia held in Singapore, Introductory Course on Ocean Renewable Energy: A Training Workshop for New Entrants into the Southeast Asia Marine Offshore Energy Market held in Philippines and Energy for AllInvestor Forum held as part of Asia Clean Energy Summit in November. A total of 288 participants from 58countries took part in these programmes.

SUSTAINABLE ENERGY CENTRE OF EXCELLENCE (SECOE)

Understanding Microgrid Market in Southeast Asia held in Mar 2018 Introductory Course on Ocean Renewable Energy: A Training Workshopfor New Entrants into the Southeast Asia Marine and Offshore

Energy Market held at Pasig City, Philippines in June 2018

Energy for All Investor Forum held in Nov 2018

GCPF Environmental & Social Workshop held in Mar 2018



KnowledgeDevelopment

03

With the experience of delivering more than 400 different courses till date, SEAS continues to meet the demands of the sector by introducing strong competent leaders in their respective fields as speakers. A few tenders were won in 2018. Successfully completing workshops in countries such as Solar Power Renewable Energy at Jordan, Waste Heat Recovery at Bangladesh and continuing the e-mobility project in Malaysia were some of the highlights of the year.

We were also honoured to host a delegation of 30 policy makers from Malaysia as part of the e-mobility project SEAS has embarked with Singapore Corporation Enterprise (SCE). Other notable visits were a delegation from Korea who reached out to learn how the Singapore Certified Energy Manager program is conducted.

More than 800 professionals were upskilled through SEAS in 2018 through almost 50 different workshop and programs, standards in the renewable sector as well as technical training in various areas were delivered. SEAS continues to be at the forefront of knowledge transfer, working closely with partners from the government, unions and private sector.

Together with strong Government partners such as National Environment Agency (NEA), SkillsFuture Singapore (SSG), Workforce Singapore (WSG), including unions Employment and Employability Institute (e2i), National Trade Union Congress (NTUC) and the private sector, we have successfully helped the industry with a strong growth in the knowledge domain.

Upgrading of skills and sector knowledge is essential to achieving the desired growth of any sector. The association develops and introduces new and exciting workshops yearly, to do capacity development for the industry both in richtheoretical and practical understanding to allow companies within this sector to broaden their knowledge.


1603. Knowledge Development

Solar Power Renewable Energy training at Jordan

Successful candidates of the WSQ Solar Program Masterclass by Mr Tonoronto


1703. Knowledge Development

Hosting Korean delegation at SEAS

Participants from Malaysia for E-mobility program

MembersEngagement

04

SEAS had the honour of inviting Dr Amy Khor, Senior Minister of State, Ministry of the Environment and Water Resources & Ministry of Health and also SEAS Patron, to the Singapore Sustainability Academy to meet the SEAS council members where they shared their milestone achievements and future plans in the renewable energy industry.

8 FEB 2018 — SMS DR AMY KHOR VISIT

Dr Amy Khor with SEAS Chairman, Executive Director andCouncil Members


1904. Members Engagement

SEAS was awarded the Partner of Labour Movement Award at the May Day Awards 2018. In the sameceremony, SEAS Chairman, Er. Edwin Khew also received the Working People’s Advocate Award.

The May Day Awards 2018 celebrates and honours like-minded labour movement leaders and partners who have supported pro-worker policies, strengthened tripartite collaborations and touched the lives of the working people.

5 MAY 2018 — MAY DAY AWARD

SEAS Chairman Er.Edwin Khew and SEAS Executive DirectorMs Kavita Gandhi receiving their awards from Mr Chan Chun Sing,Minister for Trade and Industry at the May Day Awards 2018

SEAS Chairman Er.Edwin Khew being featured in NTUCU Associate’s online magazine as one of the award recipients for

the May Day Awards 2018

A short write-up about the Sustainable Energy Associationon NTUC U Associate’s online magazine

SEAS Chairman Er. Edwin Khew, SEAS Executive Director Ms Kavita Gandhi and SEAS Director, Operations & Projects, Ms Nor Azlyn Supingiwith the newly elected council members for the term 2018-2020



The 11th Annual General Meeting (AGM) was held on 29 June 2018, at the Singapore Sustainability Academy.The AGM saw an election of the new council members for the term 2018-2020. Guest Speaker Mr Goh Chee Kiong, Head of Strategic Development and Senior Vice President at SP Group provided insights about SP Group's experiences on Integrated Digital Energy Solutions.

29 JUN 2018 — SEAS 11TH AGM

Guest speaker Mr Goh Chee Kiong – Head of StrategicDevelopment and SVP, SP Group presenting at the AGM

Attendees at AGM 2018

Committee and Working Group Meetings



As part of the member engagement activities, the Sustainable Energy Association of Singapore (SEAS), has formed committee groups focused on different areas within the sustainable energy industry to provide an opportunity to our members to have in-depth discussions on specific areas to address policy issues, state of the market as well as new opportunities to collaborate with each other. Thecommittee groups include: Clean Energy Committee, Energy EfficiencyCommittee, Sustainable Laboratories Committee, Sustainable Infrastructure Committee, and Finance Committee.

SEAS introduced two new working groups in 2018; Marine Renewable Energy Working Group and Start-UpInnovation Working Group. The Marine Renewable Energy Working Group aims to be the voice for the marine industry and work towards promoting marine renewable energy activities technologies and activities inside and outside Singapore (i.e. regional scale activities). The Start-Up Innovation Working Group aims to provide its members an opportunity to seek market exposure, strategic partnerships and investments through variouschannels provided by the working group such as networking opportunities, test-bedding opportunities,investor access, legal clinics, etc.

SEAS organised a total of 14 committee meetings and working group meetings in the Year 2018. Thesecommittee meetings are a platform for our members to come together and be part of the SEAS community.



Year 2018 witnessed many networking events hosted by SEAS. We had distinguished speakers presenting their sector knowledge at various SEAS engagements. The Start-Up networking event was launched atthe Singapore Sustainability Academy. This networking event marked the launch of SEAS’ StartupInnovation Working Group and provided participants an opportunity to seek market exposure, strategicpartnerships and investments.

Other networking events included the Climate Action Series networking event which was held inMarch 2018 where members were invited to hear and understand what the rationale and implications ofthe carbon tax are, and the challenges and opportunities it brings for their company.

MEMBERS NETWORKING

Left: SEAS Executive Director Ms Kavita Gandhi addressing the crowd for the Start-Up Networking Event

Right: Participants at the Climate Action Series Networking Event

SEASCouncil

05

The SEAS Council consists of 14 Members.

These officials are elected from the SEAS Membercompanies. Currently the Council is chaired byEr. Edwin T.F. Khew.

The patron of SEAS is Dr. Amy Khor Lean Suan,Senior Minister of State Ministry of the Environmentand Water Resources.


2405. SEAS Council

Christophe InglinVice-Chairman & Asst HonoraryTreasurerChairman,Clean Energy Committee

Mr. Christophe Inglin is the Co-Founder and Managing Director of Energetix Pte Ltd, which designs, installs and maintains rooftop solar power plants and utility-scale solar farms. He was the Managing Director of Phoenix Solar Pte Ltd, which he co-founded in December 2006 as a joint venture with local partners and the German company Phoenix Solar AG, a PV systems integrator.

Er. Edwin T.F. KhewChairman

Er. Edwin T.F. Khew is the Chairman and Director of Decision Point Global Asia Pte Ltd, a global accelerator and commercialization unit of deep technology start-ups, with its HQ in Seattle USA.


2505. SEAS Council

Peter LauHonorary TreasurerVice-Chairman, Energy Efficiency Committee

Mr. Peter Lau is the Director with Sustainable Development Capital (Asia) Limited. He has over 16 years of experiences encompassing Project Investment, Private Equity and Finance.

Sandra SeahHonorary Secretary

Ms. Sandra Seah is a Partner at Bird & Bird ATMD LLP, an international law firm. Sandra has extensive experience in energy and environmental regulatory workin Singapore.

Mathias SteckAsst Honorary Secretary

Mathias is Executive Vice President and Regional Manager - Digital Consulting and Smart Cities, Asia at DNV GL - Digital Solutions. He and his team are driving DNV GL's services towards Cyber Security, Smart Cities & Ports, DigitalDevelopment and DNV GL's Digital Platform Business Veracity in Asia - from DNV GL's Digital Hub in Singapore.

Frank PhuanCouncil MemberVice-Chairman, Clean Energy Committee

Mr. Frank Phuan is the Co-Founder and Managing Director of Sunseap Group, Frank belongs to the second generation of a solar industry business that has been established for over 35 years.


2605. SEAS Council

Lionel SteinitzCouncil MemberChairman, Finance Committee

Mr. Lionel Steinitz is the Founder and Chief Executive Officer of LYS Energy. He has been active in the renewable energy sector and a seasoned investment professional with capital markets experience.

Sanjay KuttanCouncil MemberChairman, Sustainable Infrastructure Committee

Dr. Sanjay Kuttan is currently the Executive Director of the Singapore Maritime Institute. Prior to SMI, he was the program director of the Smart Multi Energy System project at the Energy Research Institute at Nanyang Technological University.

Vincent LowCouncil MemberChairman, Energy Efficiency Committee

Mr. Vincent Low is the Vice President (Business Development) for G-Energy Global Pte Ltd. (Singapore). The company is recognized as an Energy and Sustainable Design consulting firm and also helps companies to achieve the Building Energy Efficiency Labelling Award.

Dallon KayCouncil Member

Mr. Dallon Kay is the President & CEO of Diamond Energy Group. The company, founded by Mr Kay, has been trading Interruptible Load, a form of Demand Response, since 2006.


2705. SEAS Council

Harvey KoenigCouncil Member

Mr. Harvey Koenig is the Tax Partner at KPMG Advisory LLP in Singapore. He concurrently holds the appointment of Head of ASEAN Incentive Advisory and Head of R&D Tax Incentives team in KPMG Singapore. He has over 18 years of tax experience, with exposure in both domestic and international tax matters.

Low Kian BengCouncil Member

Mr. Low Kian Beng is the Director of Resoz-Cap Pte Ltd. The company is an integrated resource management company, responsible for the development of sustainable business.

Steve O’NeilCouncil Member

Mr. Steve O’Neil is the Chief Executive Officer with Renewable EnergyCorporation (REC), a leading European brand of solar panels. Mr O’Neilhas 28 years of working experience in multi-diverse industries across different countries.

Vinod KesavaCouncil Member

Mr Vinod Kesava is currently the Founder/ MD & CEO at Climate Resources Exchange International Pte Ltd. His specialties include: Carbon Finance, Project Finance, Project Acquisition, Carbon Loan/Equity Structuring, Origination,Sourcing, Networking, Chiller Plant Energy Efficiency, Integrative Design Approach (IDP), Strategic Sustainable Planning & Development.

SEAS CommitteeStructure

06


2906. SEAS Committee Structure

Er. Edwin T.F. KhewChairman

Mr. Christophe InglinVice-Chairman & Asst Honorary Treasurer,

Chairman,Clean Energy CommitteeManaging Director, Energetix Pte Ltd

Mr. Peter LauHonorary Treasurer

Vice-Chairman, Energy Efficiency CommitteeDirector, Sustainable Development Capital

(Asia) Limited

Ms. Sandra SeahHonorary Secretary

Joint Managing Partner, Bird & Bird ATMD LLP

Mr. Vincent LowChairman, Energy Efficiency CommitteeVice President, G-Energy Global Pte Ltd

Mr. Frank PhuanVice-Chairman, Clean Energy Committee

Co-Founder & Director, Sunseap Group Pte Ltd

Dr. Sanjay KuttanChairman, Sustainable Infrastructure CommitteeExecutive Director, Singapore Maritime Institute

Mr. Lionel SteinitzChairman, Finance Committee

CEO, LYS Energy Solutions Pte Ltd

Mr. Vincent MeyerChairman, Sustainable Laboratories Committee

Life Science Strategic Account Manager,Siemens Pte Ltd

FinancialData

07

SUSTAINABLE ENERGY ASSOCIATION OF SINGAPORE (Unique Entity No.: T06SS0142H) (Registered under the Societies Act, Chapter 311) Statement by Council Members and Financial Statements Year Ended 31 December 2018

SUSTAINABLE ENERGY ASSOCIATION OF SINGAPORE

Statement by Council Members and Financial Statements Contents Page

Statement by Council Members ......................................................................................................... 35

Independent Auditor’s Report ............................................................................................................ 37

Statement of Profit or Loss and Other Comprehensive Income ........................................................ 40

Statement of Financial Position.......................................................................................................... 41

Statement of Changes in Accumulated Fund .................................................................................... 42

Statement of Cash Flows ................................................................................................................... 43

Notes to the Financial Statements ..................................................................................................... 44

5360-18


35

Statement by Council Members

In the opinion of the council members, (a) the accompanying financial statements are drawn up in accordance with the Societies Act,

Chapter 311 (the “Societies Act”) and Singapore Financial Reporting Standards (SFRS), so as to present fairly, in all material aspects, the state of affairs of Sustainable Energy Association of Singapore (the “Association”) as at 31 December 2018 and the results, changes in accumulated fund and cash flows of the Association for the reporting year then ended; and

(b) at the date of this statement there are reasonable grounds to believe that the Association will

be able to pay its debts as and when they fall due. The council members approved and authorised these financial statements for issue. On behalf of the council members ............................................ ............................................ ............................................ Edwin Khew Peter Lau Wai Leung Sandra Seah Gek Huang Chairman Hon-Treasurer Hon Secretary 23 April 2019

37

Independent Auditor’s Report to the Members of SUSTAINABLE ENERGY ASSOCIATION OF SINGAPORE (Registered under the Societies Act, Chapter 311) Report on the audit of the financial statements Opinion We have audited the financial statements of Sustainable Energy Association of Singapore (the “Association”), which comprise the statement of financial position as at 31 December 2018, and the statement of profit or loss and other comprehensive income, statement of changes in accumulated fund and statement of cash flows for the reporting year then ended, and notes to the financial statements, including the significant accounting policies. In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the Societies Act, Chapter 311 (the Act) and the Singapore Financial Reporting Standards (SFRS) so as to present fairly, in all material aspects, the state of affairs of the Association as at 31 December 2018 and the results, changes in accumulated fund and cash flows of the Association for the year ended on that date. Basis for opinion We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the association in accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information Management is responsible for the other information. The other information comprises the information included in the statement by council members and the annual report but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

38

Independent Auditor’s Report to the Members of SUSTAINABLE ENERGY ASSOCIATION OF SINGAPORE (Registered under the Societies Act, Chapter 311) – 2 – Responsibilities of management and council members for the financial statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and FRSs, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. In preparing the financial statements, management is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Association’s or to cease operations, or has no realistic alternative but to do so. The council members’ responsibilities include overseeing the Association’s financial reporting process. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: a) Identify and assess the risks of material misstatement of the financial statements, whether due

to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

b) Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control.

c) Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

39

Independent Auditor’s Report to the Members of SUSTAINABLE ENERGY ASSOCIATION OF SINGAPORE (Registered under the Societies Act, Chapter 311) – 3 – Auditor’s responsibilities for the audit of the financial statements (cont’d)

d) Conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Association’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Association to cease to continue as a going concern.

e) Evaluate the overall presentation, structure and content of the financial statements, including

the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on other legal and regulatory requirements In our opinion, the accounting and other records required to be kept by the Association have been properly kept in accordance with the provisions of Societies Regulations enacted under the Act. The engagement partner on the audit resulting in this independent auditor’s report is Chan Sek Wai. RSM Chio Lim LLP Public Accountants and Chartered Accountants Singapore 23 April 2019


40

Statement of Profit or Loss and Other Comprehensive Income 1. Year Ended 31 December 2018 2.

3. 4. Notes 2018 2017 5. $ $ 6. 7.

Revenue 4 1,734,159 2,671,000 8.

Other income and gains 5 25,004 56,736 9.

Seminar expenses (193,927) (156,252) 10.

Training expenses (125,758) (133,866) 11.

Business development expenses ‒ (2,338) 12.

Employee benefits expense 7 (633,009) (603,022) 13.

Depreciation expenses 9 (32,867) (64,542) 14.

Other expenses 6 (568,412) (1,221,067) 15.

Profit before tax from continuing operations 205,190 546,649 16.

Income tax expense 8 (12,517) (1,720) 17.

Profit from continuing operations for the year 192,673 544,929 18.

19. 20. 21. 22.

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


41

Statement of Financial Position 1. As at 31 December 2018 2. 3. 4. Notes 2018 2017 5. $ $ 6. ASSETS 7.

Non-current assets 8.

Plant and equipment 9 68,739 99,889 9.

Total non-current assets 68,739 99,889 10.

11.

Current assets 12.

Trade and other receivables 10 896,687 692,435 13.

Other non-financial assets 11 11,983 15,031 14.

Cash and cash equivalents 12 1,295,071 1,182,032 15.

Total current assets 2,203,741 1,889,498 16.

17.

Total assets 2,272,480 1,989,387 18.

19.

20.

FUND AND LIABILITIES 21.

Fund 22.

Accumulated fund 1,752,998 1,560,325 23.

Total fund 1,752,998 1,560,325 24.

25.

Current liabilities 26.

Income tax payable 15,678 3,161 27.

Trade and other payables 13 248,428 185,611 28.

Other liabilities 14 255,376 240,290 29.

Total current liabilities 519,482 429,062 30.

31.

Total liabilities 519,482 429,062 32.

33.

Total fund and liabilities 2,272,480 1,989,387 34. 35. 36. 37.



42

Statement of Changes in Accumulated Fund 1. Year Ended 31 December 2018 2.

3. 4. 2018 2017 5. $ $ 6.

7.

Balance at beginning of the year 1,560,325 1,015,396 8.

Changes in fund: 9.

Net profit for the year 192,673 544,929 10.

Balance at end of the year 1,752,998 1,560,325 11.

12. 13. 14.



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Statement of Cash Flows Year Ended 31 December 2018 1.

2. 3.

2018 2017 4. $ $ 5.

Cash flows from operating activities 6. Profit before tax 205,190 546,649 7. Adjustments for: 8. Depreciation of plant and equipment 32,867 64,542 9. Amortisation of deferred capital grant (7,603) (15,652) 10. Write-off on deferred capital grant ‒ (9,357) 11. Interest income (6,096) – 12.

Operating cash flows before changes in working capital 224,358 586,182 13.

Trade and other receivables (204,252) 423,202 14. Other non-financial assets 3,048 9,326 15. Trade and other payables 62,817 (457,802) 16. Other liabilities 22,689 125,986 17.

Net cash flows from operating activities 108,660 686,894 18. 19. Cash flows from investing activities 20. Purchase of plant and equipment (1,717) (97,577) 21. Interest received 6,096 – 22.

Net cash flows from / (used in) investing activities 4,379 (97,577) 23.

24.

Net increase in cash and cash equivalents 113,039 589,317 25.

Cash and cash equivalents, statement of cash flows, beginning balance 1,182,032 592,715

26.

Cash and cash equivalents, statement of cash flows, ending balance (Note 12) 1,295,071 1,182,032

27.

28. 29. 30. The accompanying notes form an integral part of these financial statements.


44

Notes to the Financial Statements 31 December 2018 1. General

Sustainable Energy Association of Singapore (the “Association”) is registered in Singapore under the Societies Act, Chapter 311. The financial statements are presented in Singapore dollars. The council approved and authorised these financial statements for issue on date of Statement by Council Members. The principal activities of the Association are to promote environmental companies and environmental technology in Singapore. The registered office address of the Association is: 180 Kitchener Road #06-10 City Square Mall, Singapore 208539. The Association is situated in Singapore. Statement of compliance with financial reporting standards These financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (“SFRS”) and the related interpretations to SFRS (“INT SFRS”) as issued by the Singapore Accounting Standards Council. They are in compliance with the provisions of the Companies Act, Chapter 50. Accounting convention The financial statements are prepared on a going concern basis under the historical cost convention except where a financial reporting standard requires an alternative treatment (such as fair values) as disclosed where appropriate in these financial statements. The accounting policies in the financial reporting standards may not be applied when the effect of applying them is not material. The disclosures required by financial reporting standards may not be provided if the information resulting from that disclosure is not material. Basis of preparation of the financial statements The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Actual results could differ from those estimates. The estimates and assumptions are reviewed on an ongoing basis. Apart from those involving estimations, management has made judgements in the process of applying the entity’s accounting policies. The areas requiring management’s most difficult, subjective or complex judgements, or areas where assumptions and estimates are significant to the financial statements, are disclosed at the end of this footnote, where applicable.


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2. Significant accounting policies and other explanatory information 2A. Significant accounting policies

Revenue recognition The financial reporting standard on revenue from contracts with customers establishes a five-step model to account for revenue arising from contracts with customers. Revenue is recognised at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer (which excludes estimates of variable consideration that are subject to constraints, such as right of return exists, trade discounts, volume rebates and changes to the transaction price arising from modifications), net of any related sales taxes and excluding any amounts collected on behalf of third parties. An asset (goods or services) is transferred when or as the customer obtains control of that asset. As a practical expedient the effects of any significant financing component is not adjusted if the payment for the good or service will be within one year. Services – Revenue from service orders and term projects is recognised when the entity satisfies the performance obligation at a point in time generally when the significant acts have been completed and when transfer of control occurs or for services that are not significant transactions revenue is recognised as the services are provided. Distinct goods or services in a series – For distinct goods or services in a series such as routine or recurring service contracts where the promise under the contract is for a specified quantity of goods or services that meets the over time criteria or is a stand-ready or single continuous service and if the nature of each good or service is distinct, substantially the same and has the same pattern of transfer or each time increment is distinct, then revenue is recognised at the amount that the entity has the right to bill a fixed amount for each unit of goods or service provided. Government grants Government grants are recognised at fair value when there is reasonable assurance that the conditions attaching to them will be complied with and that the grants will be received. Grants in recognition of specific expenses are recognised in profit or loss on a systematic basis over the periods necessary to match them with the related costs that they are intended to compensate. The grant related to assets is deducted in calculating the carrying amount of the asset and therefore the grant is recognised in profit or loss over the life of a depreciable asset as a reduced depreciation expense. Employee benefits Contributions to a defined contribution retirement benefit plan are recorded as an expense as they fall due. The entity's legal or constructive obligation is limited to the amount that it is obligated to contribute to an independently administered fund (such as the Central Provident Fund in Singapore, a government managed defined contribution retirement benefit plan). For employee leave entitlement the expected cost of short-term employee benefits in the form of compensated absences is recognised in the case of accumulating compensated absences, when the employees render service that increases their entitlement to future compensated absences; and in the case of non-accumulating compensated absences, when the absences occur. A liability for bonuses is recognised where the entity is contractually obliged or where there is constructive obligation based on past practice.


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2. Significant accounting policies and other explanatory information (cont’d) 2A. Significant accounting policies (cont’d) Income tax The income taxes are accounted using the asset and liability method that requires the

recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequence of events that have been recognised in the financial statements or tax returns. The measurements of current and deferred tax liabilities and assets are based on provisions of the enacted or substantially enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. Tax expense (tax income) is the aggregate amount included in the determination of profit or loss for the reporting year in respect of current tax and deferred tax. Current and deferred income taxes are recognised as income or as an expense in profit or loss unless the tax relates to items that are recognised in the same or a different period outside profit or loss. For such items recognised outside profit or loss the current tax and deferred tax are recognised (a) in other comprehensive income if the tax is related to an item recognised in other comprehensive income and (b) directly in equity if the tax is related to an item recognised directly in equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same income tax authority. The carrying amount of deferred tax assets is reviewed at each end of the reporting year and is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realised. A deferred tax amount is recognised for all temporary differences, unless the deferred tax amount arises from the initial recognition of an asset or liability in a transaction which (i) is not a business combination; and (ii) at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

Plant and equipment

Plant and equipment are carried at cost on initial recognition and after initial recognition at cost less any accumulated depreciation and any accumulated impairment losses. Depreciation is provided on a straight-line method to allocate the gross carrying amounts of the assets less their residual values over their estimated useful lives of each part of an item of these assets. The annual rates of depreciation are as follows: Plant and equipment – 20% - 33.33% An asset is depreciated when it is available for use until it is derecognised even if during that period the item is idle. Fully depreciated assets still in use are retained in the financial statements. The gain or loss arising from the derecognition of an item of plant and equipment is recognised in profit or loss. The residual value and the useful life of an asset is reviewed at least at each end of the reporting year and, if expectations differ significantly from previous estimates, the changes are accounted for as a change in an accounting estimate, and the depreciation charge for the current and future periods are adjusted. Cost also includes acquisition cost, borrowing cost capitalised and any cost directly attributable to bringing the asset or component to the location and condition necessary for it to be capable of operating in the manner intended by management. Subsequent costs are recognised as an asset only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss when they are incurred.


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2. Significant accounting policies and other explanatory information (cont’d) 2A. Significant accounting policies (cont’d) Leases Leases are classified as finance leases if substantially all the risks and rewards of ownership

are transferred to the lessee. All other leases are classified as operating leases. At the commencement of the lease term, a finance lease is recognised as an asset and as a liability in the statement of financial position at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each measured at the inception of the lease. The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease, if this is practicable to determine, the lessee’s incremental borrowing rate is used. Any initial direct costs of the lessee are added to the amount recognised as an asset. The excess of the lease payments over the recorded lease liability are treated as finance charges which are allocated to each reporting year during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the reporting years in which they are incurred. The assets are depreciated as owned depreciable assets. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. For operating leases, lease payments are recognised as an expense in profit or loss on a straight-line basis over the term of the relevant lease unless another systematic basis is representative of the time pattern of the user's benefit, even if the payments are not on that basis. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense. Impairment of non-financial assets

Irrespective of whether there is any indication of impairment, an annual impairment test is

performed at about the same time every year on an intangible asset with an indefinite useful life or an intangible asset not yet available for use. The carrying amount of other non-financial assets is reviewed at each end of the reporting year for indications of impairment and where an asset is impaired, it is written down through profit or loss to its estimated recoverable amount. The impairment loss is the excess of the carrying amount over the recoverable amount and is recognised in profit or loss. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs of disposal and its value in use. When the fair value less costs of disposal method is used, any available recent market transactions are taken into consideration. When the value in use method is adopted, in assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). At each end of the reporting year non-financial assets other than goodwill with impairment loss recognised in prior periods are assessed for possible reversal of the impairment. 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 measured, net of depreciation or amortisation, if no impairment loss had been recognised.


48

2. Significant accounting policies and other explanatory information (cont’d) 2A. Significant accounting policies (cont’d)

Financial instruments Recognition and derecognition of financial instruments: A financial asset or a financial liability is recognised in the statement of financial position when, and only when, the entity becomes party to the contractual provisions of the instrument. All other financial instruments (including regular-way purchases and sales of financial assets) are recognised and derecognised, as applicable, using trade date accounting or settlement date accounting. A financial asset is derecognised when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the entity neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. A financial liability is removed from the statement of financial position when, and only when, it is extinguished, that is, when the obligation specified in the contract is discharged or cancelled or expires. At initial recognition the financial asset or financial liability is measured at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Classification and measurement of financial assets: Financial asset classified as measured at amortised cost: A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at fair value through profit or loss (FVTPL), that is (a) the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and (b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Typically trade and other receivables, bank and cash balances are classified in this category. Financial asset that is a debt asset instrument classified as measured at fair value through other comprehensive income (FVTOCI): There were no financial assets classified in this category at reporting year end date. Financial asset that is an equity investment classified as measured at fair value through other comprehensive income (FVTOCI): There were no financial assets classified in this category at reporting year end date. Financial asset classified as measured at fair value through profit or loss (FVTPL): There were no financial assets classified in this category at reporting year end date. Classification and measurement of financial liabilities: Financial liabilities are classified as at fair value through profit or loss (FVTPL) in either of the following circumstances: (1) the liabilities are managed, evaluated and reported internally on a fair value basis; or (2) the designation eliminates or significantly reduces an accounting mismatch that would otherwise arise. All other financial liabilities are carried at amortised cost using the effective interest method. Reclassification of any financial liability is not permitted.


49

2. Significant accounting policies and other explanatory information (cont’d) 2A. Significant accounting policies (cont’d) Cash and cash equivalents

Cash and cash equivalents include bank and cash balances, on demand deposits and any highly liquid debt instruments purchased with an original maturity of three months or less. For the statement of cash flows the item includes cash and cash equivalents less cash subject to restriction and bank overdrafts payable on demand that form an integral part of cash management.

Fair value measurement The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When measuring the fair value of an asset or a liability, market observable data to the extent possible is used. If the fair value of an asset or a liability is not directly observable, an estimate is made using valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs (eg by use of the market comparable approach that reflects recent transaction prices for similar items, discounted cash flow analysis, or option pricing models refined to reflect the issuer’s specific circumstances). Inputs used are consistent with the characteristics of the asset / liability that market participants would take into account. The entity’s intention to hold an asset or to settle or otherwise fulfil a liability is not taken into account as relevant when measuring fair value.

Fair values are categorised into different levels in a fair value hierarchy based on the degree to which the inputs to the measurement are observable and the significance of the inputs to the fair value measurement in its entirety: Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices). Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Transfers between levels of the fair value hierarchy are recognised at the end of the reporting period during which the change occurred.

The carrying values of current financial instruments approximate their fair values due to the short-term maturity of these instruments and the disclosures of fair value are not made when the carrying amount of current financial instruments is a reasonable approximation of the fair value. The fair values of non-current financial instruments may not be disclosed separately unless there are significant differences at the end of the reporting year and in the event the fair values are disclosed in the relevant notes to the financial statements.


50

2. Significant accounting policies and other explanatory information (cont’d) 2B. Critical judgements, assumptions and estimation uncertainties

The critical judgements made in the process of applying the accounting policies that have the most significant effect on the amounts recognised in the financial statements and the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting year, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities currently or within the next reporting year are discussed below. These estimates and assumptions are periodically monitored to ensure they incorporate all relevant information available at the date when financial statements are prepared. However, this does not prevent actual figures differing from estimates. Allowance for trade receivables: The trade receivables are subject to the expected credit loss model under the financial reporting standard on financial instruments. The expected lifetime losses are recognised from initial recognition of these assets. These assets are grouped based on shared credit risk characteristics and the days past due for measuring the expected credit losses. The allowance matrix is based on its historical observed default rates (over a period of certain months) over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date the historical observed default rates are updated and changes in the forward-looking estimates are analysed. The loss allowance was determined accordingly. The carrying amounts might change materially within the next reporting year but these changes may not arise from assumptions or other sources of estimation uncertainty at the end of the reporting year. The carrying amount is disclosed in the Note 10 on trade and other receivables.

3. Related party relationships and transactions The financial reporting standard on related party disclosures requires the reporting entity to disclose: (a) transactions with its related parties; and (b) relationships between parents and subsidiaries irrespective of whether there have been transactions between those related parties. A party is related to a party if the party controls, or is controlled by, or can significantly influence or is significantly influenced by the other party. 3A. Related party transactions: 2018

$ 2017

$ Consultancy fees paid to council members 30,970 42,560 Speaker fees paid to council members – 36,100 3B. Key management compensation: 2018

$ 2017

$ Remuneration of executive director of the Association 154,740 139,145 The above amounts are included under employee benefits expense (Note 7). Key management personnel is the executive director who has the authority and responsibility for planning, directing and controlling the activities of the Association, directly and indirectly. The above amount for key management compensation is for the executive director of the Association. The council members did not receive any remuneration from the Association during the reporting year other than fees paid to certain council members as disclosed in Note 3A above.


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4. Revenue Revenue from contracts with customers A. Revenue classified by type of good or service: 2018

$ 2017

$ Seminar income 420,580 352,900 Association joining fee 31,250 17,600 Government grants 143,393 303,468 Membership fees 73,542 65,683 Services income 414,315 1,390,617 Training income 647,079 511,270 Business development income 4,000 29,462 1,734,159 2,671,000

B. Revenue classified by duration of contract: All the contracts are less than 12 months.

C. Revenue classified by timing of revenue recognition: 2018

$ 2017

$ Point in time 1,660,617 2,605,317 Over time 73,542 65,683 1,734,159 2,671,000 The revenue is from services. About $1,660,617 (2017 : 2,605,317) is recognised based on point in time and the balance is over time. The customers are commercial consumers, individuals and government agencies.

5. Other income and gains

2018 $

2017 $

Government grants income 11,305 17,709 Amortisation of deferred capital grant (Note 14B) 7,603 25,009 Other income – 14,018 Interest income 6,096 – 25,004 56,736

6. Other expenses

The major components include the following: 2018

$ 2017

$ Project expenses 397,040 32,827 LEAD program expenses 52,800 132,600 Regional travel expenses 24,202 182,928 Regional – overseas expense 6,457 713,339 Allowance for impairment on trade receivables (Note 10) 9,898 20,530


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7. Employee benefits expense 2018

$ 2017

$ Short term employee benefits expense 545,610 535,545 Contribution to defined contribution plan 87,399 67,477 Total employee benefits expense 633,009 603,022

8. Income tax

8A. Components of tax expense recognised in profit or loss include:

2018

$ 2017

$ Current tax expense 15,678 3,161 Over adjustments in respect of prior periods (3,161) (1,441) 12,517 1,720 The income tax in surplus varied from the amount of income tax amount determined by applying the Singapore income tax rate of 17% (2017: 17%) to surplus or deficit before income tax as a result of the following differences: 2018

$ 2017

$ Profit before tax 205,190 546,649 Income tax expense at the above rate 34,882 92,930 Income not subject to tax (1,294) (29,023) Deferred tax assets not recognised (1,385) (56,714) Over adjustments in respect of prior periods (3,161) (1,441) Stepped income exemption (16,525) (4,032) Total income tax expense 12,517 1,720

8B. Unrecognised deferred tax assets:

2018 $

2017 $

Deferred tax assets: Excess of book over tax depreciation on plant and equipment 9,950 13,510 Provision (11,511) (9,828) Tax losses carry forward ‒ (6,628) Deferred tax assets not recognised 1,561 2,946 Total deferred tax assets ‒ ‒ No deferred tax assets have been recognised in respect of the remaining for the above balance, as the future taxable profit streams are not probable. The realisation of the future income tax benefits from tax loss carryforwards and temporary differences from capital allowances is available for an unlimited future period subject to agreement by tax authority and conditions imposed by law including the retention of majority shareholders as defined.


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9. Plant and equipment Plant and

equipment 1. $ 2. Cost: 3. At 1 January 2017 404,009 4. Additions 97,577 5. At 31 December 2017 501,586 6. Additions 1,717 7. At 31 December 2018 503,303 8. 9. Accumulated depreciation: 10. At 1 January 2017 337,155 11. Depreciation for the year 64,542 12. At 31 December 2017 401,697 13. Depreciation for the year 32,867 14. At 31 December 2018 434,564 15. 16. Carrying value: 17. At 1 January 2017 66,854 18. At 31 December 2017 99,889 19. At 31 December 2018 68,739 20.

10. Trade and other receivables

2018

$ 2017

$ Trade receivables: Outside parties 957,817 585,512 Less allowance for impairment (67,710) (57,812) Net trade receivables – subtotal 890,107 527,700 Other receivables: Outside parties 6,580 164,735 Net other receivables – subtotal 6,580 164,735 Total trade and other receivables 896,687 692,435 Movements in above allowance on trade receivables: At beginning of the year 57,812 37,282 Charge for trade receivables to profit or loss included in other expenses (Note 6) 9,898 20,530 At end of the year 67,710 57,812


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10. Trade and other receivables (cont’d) As part of the process of setting customer credit limits, different credit terms are used. The average credit period generally granted to trade receivable customers is about 30 days (2017: 30 days). But some customers take a longer period to settle the amounts. (a) Aging analysis of the age of trade receivable amounts that are past due as at the end of

reporting year but not impaired:

2018 $

2017 $

Trade receivables 61 – 90 days 106,754 4,311 Over 90 days 36,533 22,159 Total 143,287 26,470 (b) As at end of the reporting year, of trade receivable amounts that are impaired:

2018

$ 2017

$ Trade receivables Over 90 days 67,710 57,812 Total 67,710 57,812 Concentration of trade receivable customers as at the end of reporting year: 2018

$ 2017

$ Top 1 customer 334,405 199,013 Top 2 customers 494,422 288,909 Top 3 customers 647,006 374,439

Other receivables are normally with no fixed terms and therefore there is no maturity.

11. Other non-financial assets

2018 $

2017 $

Prepayments 6,183 9,231 Deposits to secure services 5,800 5,800 11,983 1. 15,031

12. Cash and cash equivalents

2018 $

2017 $

Not restricted in use 1,295,071 1,182,032 Interest earning balances 310,144 304,063

The rates of interest for the interest earning balances is at 1.00% (2017 : 1.00%) per annum.


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13. Trade payables 2018

$ 2017

$ Outside parties and accrued liabilities 248,428 185,611

14. Other liabilities

2018 $

2017 $

Deferred revenue (Note 14A) 101,161 113,738 Deferred capital grant (Note 14B) ‒ 7,603 Course fees received in advance 154,215 118,949 255,376 240,290

14A. Deferred revenue

2018 $

2017 $

Revenue relating to fees received in advance: Balance at beginning of the year 113,738 106,701 Revenue deferred during the year 660,788 2,185,907 Revenue recognised upon performance obligation satisfied (673,365) (2,178,870) Balance at end of the year 101,161 113,738

14B. Deferred capital grant

2018 $

2017 $

At cost: Balance at beginning of the year 25,000 78,260 Write-off ‒ (53,260) Balance at end of the year 25,000 25,000 Accumulated amortisation: Balance at beginning of the year 17,397 45,648 Amortisation for the year 7,603 15,652 Write-off ‒ (43,903) Balance at end of the year 25,000 17,397 Carrying value: Balance at beginning of the year 7,603 32,612 Balance at end of the year ‒ 7,603


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15. Financial instruments: information on financial risks 15A. Categories of financial assets and liabilities

The following table categorises the carrying amount of financial assets and liabilities recorded at the end of the reporting year: 2018

$ 2017

$ Financial assets: Financial assets at amortised cost 2,191,758 1,874,467 Financial liabilities: Financial liabilities at amortised cost 248,428 185,611 Further quantitative disclosures are included throughout these financial statements.

15B. Financial risk management

The main purpose for holding or issuing financial instruments is to raise and manage the finances for the entity’s operating, investing and financing activities. There are exposures to the financial risks on the financial instruments such as credit risk, liquidity risk and market risk comprising interest rate, currency risk and price risk exposures. Management has certain practices for the management of financial risks. However these are not formally documented in written form. The guidelines include the following: 1. Minimise interest rate, currency, credit and market risks for all kinds of transactions. 2. Maximise the use of “natural hedge”: favouring as much as possible the natural offsetting

of sales and costs and payables and receivables denominated in the same currency and therefore put in place hedging strategies only for the excess balance. The same strategy is pursued with regard to interest rate risk.

3. All financial risk management activities are carried out and monitored by senior staff. 4. All financial risk management activities are carried out following acceptable market

practices. 5. When appropriate consideration is given to entering into derivatives or any other similar

instruments solely for hedging purposes.

There have been no changes to the exposures to risk; the objectives, policies and processes for managing the risk and the methods used to measure the risk.

15C. Fair values of financial instruments

The analyses of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 are disclosed in the relevant notes to the financial statements. These include the significant financial instruments stated at amortised cost and at fair value in the statement of financial position. The carrying values of current financial instruments approximate their fair values due to the short-term maturity of these instruments and the disclosures of fair value are not made when the carrying amount of current financial instruments is a reasonable approximation of the fair value.


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15. Financial instruments: information on financial risks (cont’d) 15D. Credit risk on financial assets

Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to discharge their obligations in full or in a timely manner. These arise principally from cash balances with banks, cash equivalents, and receivables. The maximum exposure to credit risk is the total of the fair value of the financial assets at the end of the reporting year. Credit risk on cash balances with banks is limited because the counter-parties are entities with acceptable credit ratings. For expected credit losses (ECL) on financial assets, the three-stage approach in the financial reporting standard on financial instruments is used to measure the impairment allowance. Under this approach the financial assets move through the three stages as their credit quality changes. However, a simplified approach is permitted by the financial reporting standards on financial instruments for financial assets that do not have a significant financing component, such as trade receivables. On initial recognition, a day-1 loss is recorded equal to the 12 month ECL (or lifetime ECL for trade receivables), unless the assets are considered credit impaired. For credit risk on trade receivables an ongoing credit evaluation is performed on the financial condition of the debtors and an impairment loss is recognised in profit or loss. Reviews and assessments of credit exposures in excess of designated limits are made. Renewals and reviews of credits limits are subject to the same review process. Note 12 discloses the maturity of the cash and cash equivalents balances. Cash and cash equivalents are also subject to the impairment requirements of the standard on financial instruments. There was no identified impairment loss.

15E. Liquidity risk – financial liabilities maturity analysis

The liquidity risk refers to the difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. It is expected that all the liabilities will be settled at their contractual maturity. There are no liabilities contracted to fall due after twelve months at the end of the reporting year. The liquidity risk refers to the difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. It is expected that all the liabilities will be settled at their contractual maturity. The average credit period taken to settle trade payables is about 30 days (2017: 30 days). The other payables are with short-term durations. The classification of the financial assets is shown in the statement of financial position as they may be available to meet liquidity needs and no further analysis is deemed necessary.

15F. Interest rate risk

Interest rate risk arises on interest-bearing financial instruments recognised in the statement of financial position and on some financial instruments not recognised in the statement of financial position. The interest from financial assets including cash balances is not significant.

15G. Foreign currency risk Foreign exchange risk arises on financial instruments that are denominated in a foreign currency, ie in a currency other than the functional currency in which they are measured. For the purpose of this financial reporting standard on financial instruments: disclosures, currency risk does not arise from financial instruments that are non-monetary items or from financial instruments denominated in the functional currency.

There is minimal exposure to foreign currency risk as part of normal business.


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16. Changes and adoption of financial reporting standards For the current reporting year new or revised financial reporting standards were issued by the Singapore Accounting Standards Council. Those applicable to the reporting entity are listed below. Those applicable new or revised standards did not require any significant modification of the measurement methods or the presentation in the financial statements. SFRS No. Title SFRS 109 Financial Instruments SFRS 115 Revenue from Contracts with Customers.

Amendments to, Clarifications to SFRS 115 Revenue from Contracts with Customers

17. New or amended standards in issue but not yet effective

For the future reporting years certain new or revised financial reporting standards were issued by the Singapore Accounting Standards Council and these will only be effective for future reporting years. None of these are applicable to the reporting entity based on the reporting entity’s current operation.

http://www.asc.gov.sg/Portals/0/attachments/Pronouncements/CEPafter2014/FRS_115_%28Nov_2014%29.pdf

http://www.asc.gov.sg/CEPafter1Jan2016

http://www.asc.gov.sg/CEPafter1Jan2016

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