2017 / 2018 - chevrons.org.sg · of banquet and entertainment sales and the net-taking from the...

2017 / 2018

THE CHEVRONSANNUAL REPORT2018 / 2019

ANNIVERSARY

Management Committee 02

Subcommittees 04

Club Management 06

Notice of 45th Annual General Meeting 07

Minutes of 44th Annual General Meeting 08

Annual Report for Financial Year 2018 / 2019 Major Functions / Events 14

Improvement and Enhancement 16 of Facilities and Services

Annual Survey and Visitation 18

Conclusion 19

Financial Report 20

Auditor’s Report 22

CONTENTS

CWO TEO SEE KEONGDeputy Chairman /

SAF Sergeant Major /Chairperson, SAF Mess

COL MARCUS TAN WEE KIAN Deputy Chairman

2

TAN CHONG BOONGeneral Manager / Secretary

LTC TAN GIAMVice-Chairman,

Publicity

ME6 LEONG CHEE WAHVice-Chairman,Development

LEE CHEE HOE MICHAELVice-Chairman,

Finance

LTC LIM CHIN HENGVice-Chairman,

Procurement

COL CHUA JIN KIATChairman

MANAGEMENT COMMITTEE

CWO CHUA HOCK GUANSergeant Major of the Army

ME2 KWEK CHONG AIKMember, Air Force

1WO CHONG KOK YONG FRANKIE

Member, Navy

MSG KHOO SHI JIEMember, Army

ME3 SUKHDEV KAURSAF (Women) Member

ME6 MUTHIAH AMPIGAPATHIAir Force Command Chief

ME6 GOH LENG YANMaster Chief Navy

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1WO JEREMIAH LIOW JUI HIANGChairperson, Security

ME3 LEONG HON KEONGChairperson, Events

SWO LOW SOON PANChairperson, Corporate

Communication

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Security

ME2 ZENG ZHENGJIEME2 CAI JIALI KELLY1WO GOH LOY CHOONGME3 LIM WOAN YE

2WO NEO KAI HONG1WO MARK MU WEI SENG2WO ONG KANG HONG1WO CHOW KWOK YU LIONEL

3WO NG ZHI WEI RANGER SSG SIM JIA HAO

CHAIRPERSON1WO JEREMIAH LIOW JUI HIANG

CHAIRPERSONSWO LOW SOON PAN

ME3 ONG KOK HOW GARY2WO LIM YUAN SZE DERRICKMSG THAY HUAN YU REMES2WO HU GUANGGUI

ME3 TAN JIT HWEEME3 KEITH ENG JOO LEONG

Corporate Communication

SUBCOMMITTEES

ME3 CHOW TOOK GUAN

ME3 WONG PEI FUNN ME2 YEOH RUO LIN

ME3 NG POH GEK3WO ABDUL RAHIM

Events

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CHAIRPERSONME3 LEONG HON KEONG

3WO HONG JIANYONGME2 TEO HOCK LAIME3 TAY CHUN KIATME3 NONIS RODNEY STEVEN

ME3 UTHRAPATHI SAMYNATHAN2WO WILLY TAN JWEE LOYME3 QUEK AI SIMTOH HUI LING

2WO LEE XIANG FU3WO ALVIN

2WO EDWIN GOH2WO LIM THIAM CHWEE

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CLUB MANAGEMENT

Front row from left

CECILIA CHUA Senior Finance Manager

IRENE GIAM Senior Sales & Marketing Manager

HELEN ANG HR Manager

Back row from left

STEPHEN LOW Food & Beverage Manager

TAN CHONG BOON General Manager

GUNGA T. U. Operations Manager

Heads of Departments

1. Noticeisherebygiventhatthe45thAnnualGeneralMeetingofTheSAFWarrantOfficersAnd Specialists Club will be held on Friday, 4 October 2019, 1500 hours at THE CHEVRONS Ballroom.

2. The agenda will be as follows: 2.1 Address by Chairman, Management Committee

2.2 Update by General Manager

2.2.1 Adoption of the Minutes for the 44th Annual General Meeting

2.2.2 Update on FY 2018/19 Financial Statements

2.2.3 Update on FY 2018/19 KPI Achievements

2.2.4 FY 2019/20 Challenges and Opportunities

2.2.5 Update on Changes to Management Committee and Subcommittees

2.2.6 Closing of 45th AGM

2.3 PresentationofCertificatesofAppreciationandLettersofAppointment

3. For any other matters, written notice must be given to the General Manager / Secretary at least seven (7) days before the meeting.

TAN CHONG BOONGeneral Manager / Secretary

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NOTICE OF 45TH ANNUAL GENERAL MEETING

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MINUTES OF THE 44TH ANNUAL GENERAL MEETING OF THE SAF WARRANT OFFICERS AND SPECIALISTS CLUB HELD ON 26 OCTOBER 2018 AT 1500 HOURS AT THE CHEVRONS BALLROOM

Present:COL Andrew Lim Heng Tiew - Chairman, Management CommitteeCOL Marcus Tan Wee Kian - Deputy Chairman, Management CommitteeMr Tan Chong Boon - General Manager / SecretaryMr Lee Chee Hoe Michael - Vice-Chairman (Finance)LTC Tan Giam - Vice-Chairman (Publicity)LTC Lim Chin Heng - Vice-Chairman (Procurement)ME6 Leong Chee Wah - Vice-Chairman (Development)CWO Ng Siak Ping - SAF Sergeant Major CWO Teo See Keong - Sergeant Major ArmyME6 Goh Leng Yan - Master Chief NavyME6 Muthiah Ampigapathi - Air Force Command ChiefME3 Sukhdev Kaur - SAF (Women) MemberSWO Low Soon Pan - Chairperson, Corporate Communication SubcommitteeME3 Leong Hon Keong - Chairperson, Events SubcommitteeMr Tan Chong Boon - General Manager / SecretaryMs Jasvinny Cressinda - Recording Secretary

ATTENDANCE

A totalof424WarrantOfficers,Specialists,MilitaryExperts,andDXOswerepresent. Themeetingcommenced at 1500 hrs after the quorum was met.

1.0 CHAIRMAN’S OPENING ADDRESS

1.1 Introduction

Chairman welcomed all to the 44th AGM. He said that FY 2017/18 was a challenging year for the club, and he was glad that the club managed to complete the upgrading workswithinthefinancialyear.Healsothankedthemembersfortheircontinuous support despite the inconveniences during the period of renovations. 1.2 Upgrading Project

Chairman said that the upgrading project started in July 2016 and was scheduled to complete in September 2017. However, there was a delay of 6 months due to some complexitiesalongtheway.Nevertheless,theclubmanagedtocompletethemajor upgradingworkswithintheFY2017/18andhadtherefreshedclubhouseofficially opened by the former CDF, LG Perry Lim. Although the delay had a negative impact ontheclub’sbusinessandfinancialperformanceduringthelastfinancialyear,thenew and refreshed facilities would allow the club to better serve its members and increase the venue for the club.

MINUTES OF 44TH ANNUAL GENERAL MEETING

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1.3 Financial Performance

Chairman shared that the club fell short of achieving its breakeven objective because of the lower banquet and entertainment sales due to the upgrading works, and the net takings from the fruit machines due to the stricter regulations implemented by Ministry of Home Affairs in September 2017. As a result, the club recorded $1.77Mil lesser in income as compared to thepreviousfinancialyear.Overall,theclubregisteredacashlossofabout$346Kafter accountingforincometax,orabout$1.1Milafteraccountingfortaxanddepreciation.

1.4 Challenges and The Way Ahead

Chairman shared that the reduction of MINDEF’s co-sharing for future redevelopment of clubhouse from 75% to 60%, the 30% increase in water prices, and the introduction of carbontaxnextyear,wouldhavefinancialimpactfortheclub.Hesaidthattheclubwould needtofindwaystoincreasetherevenueinordertoensurethelong-termsustainabilityof the club. He urged the members to make full use of the new facilities by organising their unit events more regularly at the club. He also encouraged the members to provide suggestions to make the club more vibrant and enjoyable for everyone.

1.5 Conclusion

Chairman said that the provision of new and refurbished facilities would enhance the club’s role as a recreation centre for the SAF members. He thanked the Management Committee and subcommittees for supporting the club’s initiatives. He also thanked the outgoing members for their contributions to the club as well as the members for their continuous support to the club.

2.0 GENERAL MANAGER’S ADDRESS

2.1 General Manager welcomed all to the AGM. He thanked Chairman for the opening address and guidance to the club. He also thanked the management committee, subcommittees, and members for their participation in the AGM.

3.0 CONFIRMATION OF MINUTES - 44TH ANNUAL GENERAL MEETING

3.1 Theminutesofthe44thAGMwereconfirmedandadoptedbythefollowingmembers:

Proposer: ME2 Tan Wei Chin Jeremy, Joint Seconder: MWO Tay Sian Teck Eric, Navy

4.0 UPDATE ON UPGRADING PROJECT 4.1 General Manager provided the actual timeline for the completion of various upgraded facilities from July 2016 to March 2018, including the follow-on renovations of Rainforest and Savannah in August 2018. He said that following the upgrading project, the club could provide a better service to its members and guests, as well as to improve on the financial performance through various businesses. He went on to apprise the members on the new and upgraded facilities:

4.1.1 Bungalows/Chalets

The 3 new bungalows comes with 4 bedroom and a BBQ pit facility each, while the chalets were upgraded from 1 bedroom to 2 bedrooms and with a dedicated BBQ pit. Both the bungalows and chalets were equipped with Mio TV and Wi-Fi as suggested by the members previously. The bungalows and chalets were popular to the members with the average occupancy rates of about 95-100% and 90-95% respectively.

4.1.2 LifestyleMart The new LifestyleMart is 5 times bigger than the old eMART. It is also the flagshipstoreinSingapore.Thenewfacilitycurrentlyattractedabout17,000 visitors on a monthly basis.

4.1.3 Entertainment Hub

The entertainment hub comprises of Aviary KTV, Pinnacle, Rainforest, Savannah and an outdoor Bistro. The Bistro is also equipped with a giant LED screen for live screening of soccer matches.

4.1.4 Function Rooms

The ballroom was upgraded with two adjacent function rooms named Carnation and Rose. The club could now accommodate up to 800 people for dining events at level 3 instead of only 500 people previously.

5.0 UPDATE ON FY 2017/18 FINANCIAL PERFORMANCE 5.1 General Manager shared that the financial statements for the period from 1 April 2017 to 31 Mar 2018 were audited by Steven Tan Russell Bedford PAC in July 2018. The financial Statements would be approved by the Board of Governors on 29 October 2018. He highlighted that the club’s financial performance was largely affected by the upgrading project and the implementation of the new jackpot rules by MHA in September 2017. Overall, the club incurred a cash loss of about $346K, or a net loss of about $1.1Mil after accounting for depreciationandtaxinthelastfinancialyear.

5.2 Comparison of Income. General Manager shared that the total income of about $8.5Mil was almost $1.8Mil lesser than the year before. The combined income of banquet and entertainment sales and the net-taking from the fruit machines recorded a drop of about $1.2Mil and $630K respectively as compared to the previous year. There was a slight drop of about $10K from the members’ subscription. The increase of about $239K in chalet booking fees was due to the 5-month closure of chalets for renovation during the previous financial year. As for the bank interest, the reduction of about $37K was due to the club retrievingmoneyfromsomeofthefixeddepositaccountstofundtheupgrading project.

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5.3 ComparisonofExpenditure.GeneralManagersaidthattheclubexercisedprudence andmanagedtoreduceabout$509Kinexpenditurecomparedtothepreviousyear. The reduction of about $125K in staff cost was largely due to the deliberate efforts of the club in suspending certain posts during the renovation period. The reduction of about $385K in the cost of banquet and entertainment sales was a result of the decrease in activity during the period of renovations. The increase of about $49K in members’ activities was due to increased subsidy amount for members. The increase of $27K in rental fees was due to the additional 1% of clubhouse rental the club had to pay to MINDEF.

5.4 GeneralManagersharedthatafterexperiencinghowhardthenewfruitmachines regulationshadaffectedtheclub,hefeltthattheupgradingofclubhousewasexecuted and completed at an opportune time. He said that the refreshed clubhouse with an increase of about 30% new facilities would be essential in helping the club achieve its financial objectives.

6.0 GREEN MARK CERTIFICATION

6.1 General Manager shared that besides increasing the revenue streams, the club also embarked on productivity and sustainability programmes to contain and reduce the operating costs. He announced that the club had received BCA Green Mark Gold Plus AwardinSeptember2018.TheGreenMarkcertificationwouldallowtheclubtoundertake government projects which had become a mandatory requirement from November 2018 onwards. Besides making the club a more environmentally friendly place, the Green Mark initiative would also allow the club to save on utility costs in the long run through the implementationofenergyandwaterefficiencyprogrammes.

7.0 UPDATE ON FY 2017/18 KPI ACHIEVEMENTS

7.1 General Manager shared that the KPI system was introduced by MINDEF in FY 2016/17 to track the various aspects of the club’s performance, and that the club had set a Band 2 target for all categories of KPIs.

7.2 TheclubachievedaBand2forthefirstKPIonthenumberofmembers’participationin the club’s organised events even though there were about 1,000 fewer participants compared to the previous year. As for the second KPI on the number of MINDEF/SAF events organised at the club, the club did not achieve even a Band 3 with only 66 events. At least 100 events were needed in order to achieve Band 2. As for the third KPI on the overall utilisation of club facilities, it dropped from Band 2 in FY 2016/17 to Band 3 last year because of fewer events organised at the club. As for the fourth KPI on members’ satisfaction, there was an improvement from Band 3 in FY 2016/17 to Band 2 last year. As for the last KPI on IADauditandfinancialstatementsaudit,GeneralManagersharedthatalthoughtherewas noofficialresultgivenbyIAD,theclub’sperformancesduringtheinternalauditandtheIAD’s follow-up audit showed that the club was at Band 2 standing.

7.3 General Manager said that the members could help the club to achieve better KPI results by actively participating in the club organised events, or by organising their unit events at the club.

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8.0 UPDATE ON FY 2017/18 MEMBERS’ SATISFACTION SURVEY RESULTS

8.1 General Manager said that the annual survey was conducted in April 2018. Despite having a shorter survey period as compared to previous years, the club managed to garner some very helpful feedback from the members. He shared that the club received more favourable feedback from our members as compared to the previous survey.Overall,theclubreceived84%ofgoodorexcellentratingsascomparedto previous survey of 78%.

8.2 He further shared on the positive feedback given to the club. These include a refreshed look of clubhouse, new and more facilities, good quality of food, most events were value for money, good customer service and staff were very friendly. He also shared on the suggestions for improvement which include to offer cheaper prices for NSF members, have more choices of snacks at the entertainment outlets, sell more items at LifestyleMart,havemoreattractiveweddingpackagesformembers’wedding,relaxon thedresscodeatthecluboutlets,andincreasetheflexibilityformemberstonominate proxiestomakepaymentandcheck-in/outofthechaletsandbungalows.

8.3 General Manager thanked the members for their feedback. He shared that some of the suggestionssuchasthedresscodeandtheappointmentofproxiesforpaymentand checking-in/out of bungalows and chalets, had been implemented. He said that the club would study the rest of the suggestions in greater details and would consider implementingthemsolongastheybenefittheclubandthemembers.

9.0 CHANGES TO MANAGEMENT COMMITTEE & SUBCOMMITTEES

9.1 General Manager updated the members on the following changes to the management committee:

9.1.1 Navy Representative

Out-going: ME2 Ng Guan Teck In-coming: 1WO Chong Kok Yong Frankie

9.1.2 Chairperson, Events Subcommittee

Outgoing: 1WO Norris Lucius Charles In-coming: ME3 Leong Hon Keong

9.2 General Manager thanked ME2 Alvin Ng and 1WO Norris for their contributions to the club. He also mentioned that there were other incoming and outgoing members from the various subcommittees.


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10.0 CONCLUSION

10.1 There being no other matters, General Manager brought the 44th AGM to a close at 1630hrs.

Proposer: MWO Teo Seng Chye, Army Seconder: ME3 Sajan S/O K N Vasudevan Nair, Air Force

11.0 PRESENTATION OF CERTIFICATES OF APPRECIATION AND LETTERS OF APPOINTMENT

11.1 ChairmanpresentedtheCertificatesofAppreciationtotheoutgoingcommittee members, and the Letters of Appointment to the incoming committee members.

Prepared by : Ms Jasvinny Cressinda, Recording Secretary

Vetted by : Mr Tan Chong Boon, General Manager / Secretary

Approved by : COL Andrew Lim Heng Tiew, Chairman, Management Committee

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Asaclubhouse thataims to fulfil the rolesofa leisureserviceproviderandapreferredpartner forhosting functions and events, THE CHEVRONS engages and supports its members in two primary ways–firstly,byofferingmembersawideselectionofactivitiestotakepartinwiththeirfriendsandkin;andsecondly,byprovidingthemwithexclusivepackagesandaccesstothefullrangeoftheclub’sfunction venues when they are in need of a space to host their personal or work-related events.

MAJOR FUNCTIONS / EVENTS

CLUB-ORGANISED EVENTS

Revamped facilities and new capabilities developed as a result of the upgrading project enabled the club to enhance the experienceof participants in events organised at the clubhouse.AprimeexamplewouldbetheLEDscreen installed at The Bistro, which attracted hordes of soccer fans during live screening sessions of the matches in the World Cup and English Premier League tournaments.

Besides signature events such as the Hari Raya Celebration, Deepavali Nite, and Prosperity Nite events, the club offered members the opportunity to venture overseas for short vacations – one of thehighlightsof theseoverseasexcursionswastheclub’sfirst-ever trip toPenang,wheremembersandtheirlovedonesexperiencedthesights and sounds of famed World Heritage Site UNESCO, Georgetown, over three days of feasting and sightseeing.

At the conclusion of FY 2018/19, the club recorded a total of 112 events, with a participationfigureof7,550persons.

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UNIT-ORGANISED EVENTS

THE CHEVRONS offers a wide selection of function spaces that cater to the full spectrum of events its members and their units organise on a regular basis, as well as special occasions that are ceremonial or celebratory in nature. Following the completion of the club’s major upgrading project, club members now have a variety of refurnished function venues installed with the latest audio-visual and smart lighting equipment at their disposal; the new and upgraded facilities were very well received among the members, considering a year-on-year increase of close to 100% in the number of events hosted at the club. Some of the notable functions that were hosted at THE CHEVRONS included the 01/2018 and 02/2018 Joint Leadership Course (JLC) Graduation Ceremony, the SAF Human Resource Shared Services Centre (HRSSC) and Personnel Command (PERSCOM) Bursary and Merit Award Ceremony, and social nights of several OCS wings.

In FY 2018/19, THE CHEVRONS hosted 127 SAF events which had a total of 8,672 servicemen and servicewomen in attendance.

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IMPROVEMENT AND ENHANCEMENTOF FACILITIES AND SERVICES

POOLSIDE CAFÉ

Thesprawlingspaceonthefirstflooroftheclubhouse,previously occupied by external F&B vendors, wasvacatedinthefirstquarterof2019.Theclubsawthisasanopportunitytoexpandanddiversifyitsofferings,andat the same time, take greater control over the quality and variety of F&B services and products it offers to its visitors. With the aim of providing value-for-money food and a diverse selection of cuisines for members and guests to choose from, the Poolside Café opened for business with a soft launch event on 21 June 2019 to much fanfare.

The Poolside Café offers a spacious, air-conditioned dining area brightly illuminated by natural light that floodsinthroughthefull-lengthwindowsofthevenue.Besides the indoor space, diners have the option of enjoying their meals at an al fresco dining area located next to the serene waters of the club’s free-formswimming pool. A variety of cuisines is available for patrons to choose from, such as local fares that include Nyonya Rendang Chicken and Sweet and Sour Fish with Rice, and western fares such as Lemon Rosemary Grilled Chicken and Fish and Chips. Breakfast options are also available at the café, which includes popular items such as Nasi Lemak, Economic Fried Bee Hoon, toast sets, and Eggs Benedict.

UPCOMING ENHANCEMENTS

A new entertainment outlet at level 2 is in the works – banking on the popularity of darts and pool among both teenagers and adults, the club will be bringing in a slew of pool tables and darts machines for memberswhowishtorelaxwiththeirfriendsandenjoythesegames.Withadedicatedfacilitythathousesthesegamingequipment,theclub’sentertainmentoptionswillbeexpanded,togetherwithitscapabilityofaccommodating a greater volume of visitors seeking such activities.

SURVEY TERMINALS

In order to gather accurate and timely feedback from visitors at THE CHEVRONS, survey terminals were installed at various hotspots around the premises that allow users to rate the club’s services and facilities. The survey terminals increase the club’s chances to capture the sentiments of its members and guests by presenting them with a convenient means to convey their thoughts and feelings. With the introduction of the survey terminals, the club was able obtain a clearer picture of the performance of the various services and facilities and implement measures to rectify lapses and errors promptly.

MANAGEMENT OFFICE

The management office was given a makeoverfor thefirst timesince theclubstartedoperationsat its Jurong East premises. The primary focus of the renovation effort was to convert the area into an open-space office, with the aim of enhancingcommunication and engagement among the staff. Besides removing walls that obscured entire sectionsoftheofficepreviously,toweringpartitionsthat compartmentalised the various departments were replaced with lower partitions that allow the staff intheofficetocommunicatewitheachotherfreely.

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CLOSURE OF FACILITIES

With an illustrious history that stretches over 45 years, the legacy of MINT, the jackpot facility, is deeply intertwined with the heritage of the club – fruit machines could be found in the club’s previous site at Beach Road, and have been a major part of the club’s offerings to members and their guests ever since. Due to the implementation of more stringent regulations on the operation of fruit machines in 2017, and the consequent impact on the performance of the outlet, the management made a decision to cease the operations of the jackpot room. On 31 July 2019, MINT closed its doors after entertaining members and their guests for over 17 years at THE CHEVRONS.

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VISITATION

Upon the conclusion of the major upgrading project in 1Q2018, all traces of renovation work such as hoardings and scaffoldings were removed, and the club became fully operational. Visitation at THE CHEVRONS picked up steadily across all facilities in FY 2018/19 as news of the revamped clubhouse spread among members and their friends through the club’s publicity efforts, and word-of-mouth.

The entertainment facilities, which include Aviary KTV and Rainforest and Savannah Lounge, recorded higher visitation figures after undergoing renovation.With the additionof new functions rooms, thebanquetfacilitiessawasubstantialjumpinthenumberofvisitors;incomparisonwithvisitationfiguresrecorded in FY 2016/17, the club’s banquet facilities accommodated roughly 66% more visitors in FY 2018/19. The chalet and bungalow units remain ever in-demand, and both facilities clocked high occupancy rates of 91% and 97% respectively in FY 2018/19.

ANNUAL SURVEY AND VISITATION

ANNUAL SURVEY

TheAnnualMembers’SatisfactionSurveyisayearlyexercisethatisconductedtoassessthesentimentsand opinions that members have of the services and facilities available at THE CHEVRONS. By gathering feedback and reviews from the members, the club can focus on areas that require improvement and implement new initiatives derived from the input of the survey’s participants.

To gather more comprehensive feedback on the club’s services and facilities, an additional feedback channel was introduced to allow visitors to share their thoughts and rate their experience at theclubhouse. Feedback collected in terminals installed at various hotspots around the premises, and post-event surveys conducted by the club’s staff constitute the results of the Customer Satisfaction Survey.

The results from both surveys are combined to compute the Overall Visitors’ Satisfaction Level, which provides a clearer picture of the club’s standards in the eyes of all visitors at the clubhouse. The FY 2018/19 Annual Members’ Satisfaction Survey ran in the month of March 2019, and the Customer Satisfaction Survey ran from January to March 2019. Both surveys concluded at the end of FY 2018/19 with a total of 1560 submissions.

TheclubrecordedapositivefinancialperformanceinFY2018/19followingtheconclusionoftheupgradingprojectinMarch2018.Theoverallcashprofitofabout$1.3MgeneratedinFY2018/19wasanimprovementovertheaveragecashprofitof$1Machievedannuallybefore the renovation effort. Although the net takings from our fruit machines declined sharply following the implementation of stricter regulations by MHA from 2017 onwards, the increased revenues from banquet and entertainment sales, as well as the high demand for thebungalowsandchaletsallowedtheclubtoachieveitsfinancialobjectives. Besidesthepositivefinancialperformance,wealsosawanincreaseinthenumberofvisitorsand MINDEF/SAF events organised at our club. In addition, we received largely positive feedback from our members and visitors in the surveys we conducted in FY 2018/19. We will dedicate our efforts to ensure that this trend of growth continues, and we look forward to serving our members and guests with new facilities and services in FY 2019/20.

COL CHUA JIN KIATChairman, Management Committee

Prepared by:Tan Chong BoonGeneral Manager / Secretary

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CONCLUSION

The Club generated a total revenue of $11.4M in FY 2018/19, as compared to $8.5M in FY 2017/18. This represented a 34% increase, mainly due to (i) higher banquet and entertainment sales following the completion of clubhouse upgrading, (ii) increase in NSF subscription fees, and (iii) increase in bungalow/chalet booking fees with the new bungalow facilities.

ThetotalexpenditureincurredinFY2018/19was$10Mascomparedto$8.8MinFY2017/18.This represented a 14% increase which was largely due to (i) higher cost of sales as a result of the increase in banquet and entertainment sales and (ii) higher staff salaries due to higher performance bonus payout.

Overall,theClubincurredanetprofitof$451.6K(aftertax)inFY2018/19therebyincreasingthe Club’s Accumulated Funds from $17.5M to $17.9M as of 31 March 2019.

During the year, the Club also invested a total of $2.2M in upgrading and replacing its facilities and equipment. As a result, the Club’s total asset base increased by 12% from $18.6M to $20.8M, mainly contributed by the clubhouse upgrading project and the implementation of a new Enterprise Resource Planning (ERP) system to manage operations. Going forward, the Club will continue to leverage on the renovated and new facilities to boost banquet and entertainmentsalestoimproveprofit.

LEE CHEE HOE MICHAELVice-Chairman, Finance

FINANCIAL PERFORMANCE

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NetSurplusAfterTax

FIN

AN

CIA

L Y

EA

R

FY 14/15

FY 15/16

FY 16/17

FY 17/18

FY 18/19

286,284

410,236

201,314

-1,097,248

451,631

(S$)

FINANCIAL REPORT

Statement by the Management Committee 22

Independent Auditor’s Report to Members 23

Statement of Financial Position 26

Statement of Comprehensive Income 27-29

Statement of Changes in Funds 30

Statement of Cash Flows 31

Notes to the Financial Statements 32-53

AUDITOR’S REPORT

In the opinion of the Management Committee,

(a) thefinancialstatementsofTheSAFWarrantOfficersandSpecialistsClub(the“Club”)are drawnupsoastogiveatrueandfairviewofthefinancialpositionoftheClubasat31March 2019andofthefinancialperformance,changesinfundsandcashflowsoftheClubfor the year then ended in accordance with the Societies Act and Financial Reporting Standards in Singapore; and

(b) at the date of this statement, there are reasonable grounds to believe that the Club will be able to pay its debts as and when they fall due.

On behalf of the Management Committee

COL CHUA JIN KIATChairman, Management Committee

LEE CHEE HOE MICHAELVice-Chairman, Finance

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STATEMENT BY THE MANAGEMENT COMMITTEE

Report on the Audit of the Financial Statements

Opinion WehaveauditedtheaccompanyingfinancialstatementsofTheSAFWarrantOfficersAndSpecialistsClub(the“Club”),whichcomprisethestatementoffinancialpositionasat31March2019,andthestatementofcomprehensiveincome,statementofchangesinfundsandstatementofcashflowsfortheyearthenended,andnotestothefinancialstatements,includingasummaryofsignificantaccountingpolicies.

Inouropinion,theaccompanyingfinancialstatementsareproperlydrawnupinaccordancewiththeprovisionsof theSocietiesAct (the “Act”)andFinancialReportingStandards inSingapore (“FRSs”)soastogiveatrueandfairviewofthefinancialpositionoftheClubasat31March2019andofthecomprehensiveincome,changesinfundsandcashflowsoftheClubfortheyearendedonthatdate.

Basis for Opinion WeconductedourauditinaccordancewithSingaporeStandardsonAuditing(“SSAs”).Ourresponsibilitiesunder 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 Club in accordance with the Accounting and CorporateRegulatoryAuthority(“ACRA”)CodeofProfessionalConductandEthicsforPublicAccountantsandAccountingEntities(“Code”)togetherwiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsinSingapore,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewith these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficientandappropriatetoprovideabasisforouropinion.

Information Other than the Financial Statements and Auditor’s Report ThereonManagement is responsible for the other information. The other information comprises the Management Committee’s Statement.

Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyform of assurance conclusion thereon.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand, indoingso,considerwhether theother information ismaterially inconsistentwith thefinancialstatements 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.

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INDEPENDENT AUDITOR’S REPORT TO MEMBERS

Responsibilities of Management and Management Committee for the Financial Statements Management is responsible for thepreparationoffinancialstatements thatgivea trueandfairviewin accordance with the provisions of the Act and FRSs, and for devising and maintaining a system of internalaccountingcontrolssufficienttoprovideareasonableassurancethatassetsaresafeguardedagainst loss from unauthorised use or disposition; and transactions are properly authorised and that theyarerecordedasnecessarytopermitthepreparationoftrueandfairfinancialstatementsandtomaintain accountability of assets.

Inpreparing thefinancialstatements,management is responsible forassessing theClub’sability tocontinue 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 Club or to cease operations, or has no realistic alternative but to do so.

TheManagementCommittee’sresponsibilitiesincludeoverseeingtheClub’sfinancialreportingprocess.

Auditor’s Responsibilities for the Audit of the Financial Statements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholeare 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 accordancewithSSAswill alwaysdetect amaterialmisstatementwhen it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

AspartofanauditinaccordancewithSSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticism throughout the audit. We also:

• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherdueto fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnot 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.

• Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignaudit proceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressing an opinion on the effectiveness of the Club’s internal control.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccounting estimates and related disclosures made by management.

24

INDEPENDENT AUDITOR’S REPORT TO MEMBERS

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisof accountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexists relatedtoeventsorconditionsthatmaycastsignificantdoubtontheClub’sabilityto continueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,weare requiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancial 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 Club to cease to continue as a going concern.

• Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,including thedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactions and events in a manner that achieves fair presentation.

We communicate with the Management Committee regarding, among other matters, the planned scopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternal control that we identify during our audit.

Report on Other Legal and Regulatory RequirementsIn our opinion, the accounting and other records required by the Act to be kept by the Club have been properly kept in accordance with the provisions of the Act.

STEVEN TAN RUSSELL BEDFORD PACPublic Accountants and Chartered Accountants

Singapore25 June 2019

25

THE SAF WARRANT OFFICERS AND SPECIALISTS CLUB Registration Number: S74SS0022C

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

2

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2019 Note 2019 2018 $ $ ASSETS Non current assets Property, plant and equipment 3 20,760,546 18,614,972 Structured deposits 4 1,000,000 1,000,000 21,760,546 19,614,972 Current assets Inventories 5 89,299 100,024 Trade and other receivables 6 512,178 872,177 Cash and cash equivalents 7 7,350,753 8,882,183 7,952,230 9,854,384 Total assets 29,712,776 29,469,356 FUNDS AND LIABILITIES General fund Accumulated funds 8 17,905,661 17,454,030 Non current liabilities Deferred grants 9 7,467,183 10,199,528 Deferred tax liabilities 10 139,000 205,000 7,606,183 10,404,528 Current liabilities Trade and other payables 11 1,134,043 1,586,266 Deferred grants 9 2,925,000 - Current tax payable 141,889 24,532 4,200,932 1,610,798 Total liabilities 11,807,115 12,015,326 Total funds and liabilities 29,712,776 29,469,356

26The accompanying notes are an integral part of the financial statements

STATEMENT OF FINANCIAL POSITION



3

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2019 Note 2019 2018 $ $ Income Car park fees 261,842 273,975 Chalet booking fees 629,677 373,012 Grant received for land lease 12 2,461,920 2,430,090 Income from members' activities - 67,670 Interest from bank deposits 13 73,596 67,445 Net takings from fruit machines 14 171,920 526,112 Pool table takings 27,794 25,064 Rental of contracted areas 776,815 598,575 Rental of facilities 183,368 101,587 Revenue from entertainment outlets 15 4,376,479 2,017,126 Subscription fees 16 2,334,372 1,995,464 Other income 17 83,894 24,982 11,381,677 8,501,102 Income (carried forward) 11,381,677 8,501,102


STATEMENT OF COMPREHENSIVE INCOME



4

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2019 Note 2019 2018 $ $ Income (brought forward) 11,381,677 8,501,102 Less: Expenditure Administrative expenses 42,592 50,893 Advertising and promotions 20,522 13,655 Audit and tax fee 48,081 32,276 Bank charges 14,116 5,632 Corporate image expenses 20,505 22,151 Cost of entertainment outlets 18 1,541,082 761,058 Donation - 4,000 Entertainment fees 2,180 1,054 Expenses from members' activities - 55,134 General expenses 19 386,533 307,493 Insurance 12,478 12,994 Licenses 37,887 37,772 Live band expenses 69,880 31,175 Members and Club activities 201,782 170,207 Printing and stationery 38,043 53,064 Professional fees - 37,394 Property, plant and equipment written off 80,256 29,357 Rental of clubhouse 12 2,676,000 2,613,000 Repairs and maintenance 20 726,173 741,004 Staff costs 21 3,592,616 3,335,087 Telephone expenses 22,321 20,831 Transport expenses 100,741 107,037 Upkeep of motor vehicle 4,637 4,290 Water and electricity 330,917 285,534 Website development and maintenance 64,101 78,836 10,033,443 8,810,928 Surplus/(Deficit) before depreciation (carried forward) 1,348,234 (309,826)


STATEMENT OF COMPREHENSIVE INCOME



5

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2019 Note 2019 2018 $ $ Surplus/(Deficit) before depreciation (carried forward) 1,348,234 (309,826) Depreciation of property, plant and equipment 3 (820,714) (751,560) Surplus/(Deficit) before income tax 527,520 (1,061,386) Income tax 22 (75,889) (35,862) Surplus/(Deficit) for the year 451,631 (1,097,248) Other comprehensive income - - Total comprehensive income for the year 451,631 (1,097,248)




6

STATEMENT OF CHANGES IN FUNDS FOR THE YEAR ENDED 31 MARCH 2019

Accumulated

funds $

At 1 April 2017 18,551,278

Total comprehensive income for the year (1,097,248)

At 31 March 2018 17,454,030

Total comprehensive income for the year 451,631

At 31 March 2019 17,905,661


STATEMENT OF CHANGES IN FUNDS



7

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2019 2019 2018 $ $ Operating activities Surplus/(Deficit) before income tax 527,520 (1,061,386) Adjustments for: Depreciation of property, plant and equipment 3 820,714 751,560 Government grant received for land lease 9 (2,461,920) (2,430,090) Interest income 13 (73,596) (67,445) Property, plant and equipment written off 80,256 29,357 Operating loss before working capital changes (1,107,026) (2,778,004) Inventories 10,725 11,676 Trade and other receivables 385,221 (268,225) Trade and other payables (452,223) 366,562 Cash generated from operations (1,163,303) (2,667,991) Interest received 48,374 34,019 Income tax paid (24,532) (19,922) Cash flows from operating activities (1,139,461) (2,653,894) Investing activities Purchase of property, plant and equipment 3 (3,046,544) (12,422,487) Proceeds from early termination of structured deposits - 1,000,000 Cash flows from investing activities (3,046,544) (11,422,487) Financing activity Government grant received 9 2,654,575 10,684,894 Cash flows from financing activity 2,654,575 10,684,894 Net change in cash and cash equivalents (1,531,430) (3,391,487) Cash and cash equivalents at beginning of year 8,882,183 12,273,670 Cash and cash equivalents at end of year 7 7,350,753 8,882,183


STATEMENT OF CASH FLOWS

8

THE SAF WARRANT OFFICERS AND SPECIALISTS CLUB Registration Number: S74SS0022C NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1. GENERAL

The financial statements of the Club for the year ended 31 March 2019 were authorised for issue by the Management Committee on the date at this report.

The SAF Warrant Officers and Specialists Club is a club registered with the Registry of Societies in the Republic of Singapore. The registered office and place of business is at No. 48 Boon Lay Way Singapore 609961.

The principal activities of the Club are to promote the interest of the Club members, and to provide social cultural, educational and sport activities for the members.There have been no significant changes in the nature of these activities during the financial year.

2. SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PREPARATION

The financial statements are expressed in the Singapore dollar and have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”).The financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies below.

In the current financial year, the Club has adopted all the new and revised FRSs and Interpretations of FRS (“INT FRS”) issued that are relevant to its operations and effective for annual periods beginning on or after 1 April 2018. The adoption of these new/revised FRSs and INT FRSs has no material effect on the financial statements except as disclosed in the notes to financial statements.

Except for FRS 116, the management expect that the adoption of FRSs, INT FRSs and amendments to FRSs that were issued but not yet effective until future periods will have no material impact on the financial statements in the year of initial application. The nature of the impending changes in accounting policy on adoption of FRS 116 are described below.

32

NOTES TO THE FINANCIAL STATEMENTS

33

9

FRS 116 Leases FRS 116 requires lessees to recognise most leases on the statement of financial position. The standard includes two recognition exemptions for lessees – leases of ‘low value’ assets and short-term leases. FRS 116 is effective for annual periods beginning on or after 1 January 2019. At commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e. the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e. the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. On the adoption of FRS 116, the Club expects to choose, on a lease-by-lease basis, to measure the right-of-use asset at either: (a) its carrying amount as if FRS 116 had been applied since the commencement

date, but discounted using the lessee’s incremental borrowing rate as of 1 April 2019;or

(b) an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the statement of financial position immediately before 1 April 2019.

In addition, the Club plans to elect the following practical expedients: • not to reassess whether a contract is, or contains a lease at the date of initial

application and to apply FRS 116 to all contracts that were previously identified as leases;

• to apply the exemption not to recognise right-of-use asset and lease liabilities to leases for which the lease term ends within 12 months as of 1 April 2019; and

• to apply a single discount rate to a portfolio of leases with reasonably similar characteristics.

The Club has performed a preliminary impact assessment based on currently available information, and the assessment may be subject to changes arising from ongoing analysis until the Club adopts FRS 116 in 2019/2020. On the adoption of FRS 116, the Club expects to recognise right-of-use assets and lease liabilities of $4,502,000 for its leases previously classified as operating leases.

34

10

PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to working condition for its intended use. Expenditure for additions, improvements and renewals are capitalised and expenditure for maintenance and repairs are charged to the statement of comprehensive income. When assets are sold or retired, their cost and accumulated depreciation are removed from the accounts and any gain or loss resulting from their disposal is included in the statement of comprehensive income.

Depreciation is calculated to write off the cost of the property, plant and equipment over their estimated useful lives by the straight line method. The estimated useful lives are as follows:

Computers and accessories 3 years Electrical equipment 5 - 8 years Motor vehicles 5 years Fittings and fixtures 3 - 8 years Recreational equipment 4 - 8 years Kitchen equipment 8 years Decoration and renovation 8 years Building improvement 20 years Fully depreciated assets are retained in the financial statements until they are no longer in use.

IMPAIRMENT OF NON FINANCIAL ASSETS

At each statement of financial position date, the carrying amounts of the Club’s non financial assets are reviewed for impairment to determine whether there is any indication that the carrying amounts of the non financial assets may not be recoverable. Whenever the carrying amount of a non financial asset exceeds its recoverable amount, an impairment loss is recognised in the statement of comprehensive income unless it reverses a previous revaluation, credited to other comprehensive income, in which case it is charged to comprehensive income. The recoverable amount is the higher of a non financial asset’s net selling price and value in use. The net selling price is the amount obtainable from the sale of a non financial asset in an arm’s length transaction. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of a non financial asset and from its disposal at the end of its useful life. Recoverable amounts are estimated for individual non financial assets or, if it is not possible, for the cash-generating unit.

Reversal of an impairment loss recognised in prior years is recorded when there is an indication that the impairment loss recognised for a non financial asset no longer exists or has decreased. The reversal is recorded in the statement of comprehensive income unless the relevant non financial asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.


35

11

INVENTORIES

Inventories are stated at the lower of cost and net realisable value. Cost is primarily determined on a first in first out basis and includes all costs in bringing the inventories to their present location and condition.Net realisable value is the price at which the inventories can be realised in the normal course of business after allowing for the costs of realisation.

Impairment loss is made where necessary for obsolete, slow-moving and defective inventories.

FINANCIAL INSTRUMENTS

A financial instrument is recognised if the Club becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Club’s contractual rights to the cash flows from the financial assets expire or if the Club transfers the financial asset to another party without retaining control or transfers substantially all the risks and rewards of the asset. Regular way purchases and sales of financial assets are accounted for at trade date, that is, the date that the Club commits itself to purchase or sell the asset. Financial liabilities are derecognised if the Club’s obligations specified in the contract expire or are discharged or cancelled.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets, except for those expected to be realised later than 12 months after the statement of financial position date which are presented as non-current assets. Loans and receivables are presented as “structured deposits”, “trade and other receivables” and “cash and cash equivalents” on the statement of financial position.

Loans and receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in the income statement based on lifetime expected credit losses (“ECLs”) at each reporting date. The Club has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment which could affect debtors’ ability to pay.

The Club considers a financial asset in default when contractual payments are 60 days past due. However, in certain cases, the Club may also consider a financial asset to be in default when internal or external information indicates that the Club is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Club. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

36

12

Financial liabilities and equity

Financial liabilities and equity instruments issued by the Club are classified accordingly to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Club after deducting all of its liabilities.

Trade and other payables

Trade and other payables are initially measured at fair value and are subsequently measured at amortised costs, using the effective interest rate method.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash in hand, bank deposits and short-term, highly liquid investments which are readily convertible into known amounts of cash and which are subject to an insignificant risk of change in value.


37

13

RELATED PARTIES

A related party is defined as follows:

(c) A person or a close member of that person’s family is related to the Club (reporting entity) if that person:

(i) has control or joint control over the reporting entity;

(ii) has significant influence over the reporting entity; or

(iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

(d) An entity is related to the reporting entity if any of the following conditions applies:

(i) has control or joint control over the reporting entity;

(ii) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

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

(iv) Both entities are joint ventures of the same third party.

(v) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

(vi) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.

(vii) The entity is controlled or jointly controlled by a person identified in (a).

(viii) 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 of the entity).

38

14

LEASES

Operating lease payments are recognised as an expense in the statement of comprehensive income on a straight line basis over the lease term. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight line basis.

Leases where the Club retains substantially all the risks and rewards of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same bases as rental income.

PROVISIONS

Provisions are recognised when the Club has a present obligation (legal or constructive) as a result of a past event, and it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

EMPLOYEE BENEFITS

Employee leave entitlement

Employee leave entitlement is recognised when it accrues to employee. Accrual is made for the estimated liability for unconsumed leave as a result of services rendered by employees up to the statement of financial position date.

Defined contribution plan

The Club contributes to the Central Provident Fund (“CPF”), a defined contribution plan regulated and managed by the Government of Singapore, which applies to the majority of the employees. The Club’s contributions to CPF are charged to the statement of comprehensive income in the period in which the contribution relate.

REVENUE RECOGNITION

Revenue is measured based on the consideration to which the Club expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognised when the Club satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation.


39

15

The following specific recognition criteria must be met before revenue is recognised. (a) Membership subscription fees are recognised on an accrual basis. (b) Pool table takings and car park fees income are recognised upon receipt. (c) Revenue from entertainment outlets, rental of facilities, chalet booking fees and

income from members’ activities are recognised when the services are performed and rendered.

(d) Rental of contracted areas (income from third party restaurant or shop operators)

is recognised on a straight-line basis over the lease terms. (e) Interest income from fixed deposits is recognised on a time apportioned basis

using the effective interest rate method. (f) Revenue from fruit machines is recognised upon receipt based on gross taking

less the relevant government taxes and payment of winnings. All other items of income are recognised as revenue when the services are performed and rendered. GOVERNMENT GRANTS Government grants are recognised when there is reasonable assurance that the grant will be received and the Club will comply with the conditions associated with the grant. Grants for the acquisition of capital assets are recognised in the statement of comprehensive income as income on a systematic basis over the useful life of the capital asset. Grants that compensate the Club for expenses incurred are recognised in the statement of comprehensive income in the same periods in which the expenses are recognised.

INCOME TAX

Income tax expense represents the sum of the current tax payable and deferred tax.

The tax payable is based on the taxable profit for the year. The Club’s liability for current tax is calculated using tax rate that has been enacted or substantially enacted by the statement of financial position date.

Deferred tax is provided in full using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts of assets and liabilities in the financial statements.

40

16

Deferred tax is calculated at the tax rate that is expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited to statement of comprehensive income, except when it relates to items charged or credited to other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

FOREIGN CURRENCIES

Foreign currency transactions

Transactions arising in foreign currencies are converted into Singapore dollar at rates of exchange approximating those ruling at transaction dates and recorded monetary balances that are denominated in a foreign currency at the statement of financial position date are converted at rates of exchange approximating to those ruling at that date. Exchange differences are taken to statement of comprehensive income.

Functional currency

The functional currency of the Club is the Singapore dollar. Management are of the opinion that the Singapore dollar best reflects the economic substance of the underlying events and circumstances relevant to the Club.


41

17

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42

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4. STRUCTURED DEPOSITS Structured deposits placed with banks will mature in 2020. The effective interest rate of the structured deposits range from 1.60% to 1.90% (2018: 1.60% to 1.90%) per annum.

5. INVENTORIES 2019 2018 $ $ Beverage 89,299 100,024 During the year, inventories amounting to $1,541,082 (2018: $761,058) were recognised as an expense in the Statement of Comprehensive Income.

6. TRADE AND OTHER RECEIVABLES

2019 2018 $ $ Trade receivables 127,051 72,210 Interest receivables 47,428 33,426 Other receivables 9,757 5,360 Deposits 12,336 13,811 Loans and receivables 196,572 124,807 Prepayments 278,163 160,061 GST receivables 37,443 587,309 512,178 872,177

Loans and receivables are denominated in Singapore dollar.

7. CASH AND CASH EQUIVALENTS

2019 2018 $ $

Fixed deposits 5,760,100 3,629,506 Cash and bank balances 1,590,653 5,252,677 7,350,753 8,882,183

The effective interest rates of the fixed deposits, with repricing period of 12 months (2018: 12 months), range from 0.70% to 1.20% (2018: 0.65% to 1.25%) per annum.

Cash and cash equivalents are denominated in Singapore dollar.


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8. ACCUMULATED FUNDS

In the event of the Club being dissolved, all liabilities legally incurred by or on behalf of the Club shall be fully discharged and the remaining funds or proceeds of the disposal shall be disposed off in accordance to the dissolution clause in the Club’s Constitution.

9. DEFERRED GRANTS

2019 2018 $ $

At beginning of year 10,199,528 1,944,724 Add: - Grant received for land lease 2,461,920 2,430,090 - Grant received for building improvements - 7,805,276 - Grant received for computer software 192,655 449,528

12,854,103 12,629,618 Recognised in Statement of Comprehensive Income: - Land lease expenses (Note 12) (2,461,920) (2,430,090) At end of year 10,392,183 10,199,528

Comprising: Current 2,925,000 - Non-current 7,467,183 10,199,528 10,392,183 10,199,528

The Ministry of Defence has approved a capital grant of $9,750,000 and $642,183 for the Club’s building improvements and computer software development of which $7,805,276 and $449,528, respectively have been received in the previous financial year.

10. DEFERRED TAX LIABILITIES

2019 2018 $ $ At the beginning of the year 205,000 138,000 Movement during the year (66,000) 67,000 At the end of the year 139,000 205,000

Deferred tax liabilities comprised of the following: Property, plant and equipment 139,000 205,000

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11. TRADE AND OTHER PAYABLES

2019 2018 $ $ Trade payables 270,292 612,508 Deposits 249,678 299,652 Accrued staff leave benefits 55,000 55,000 Accrued operating expenses 393,381 462,976 968,351 1,430,136 Fees received in advance 165,692 156,130 1,134,043 1,586,266 Trade payables are non interest bearing and are normally settled on 30 days terms.

Trade and other payables are denominated in Singapore dollar.

12. LAND LEASE EXPENSES AND GOVERNMENT GRANTS RECEIVED

Land lease expenses and government grants received were as follows: 2019 2018 $ $

Land lease expenses 2,676,000 2,613,000 Less: Grant received for land lease (Note 9) (2,461,920) (2,430,090)

214,080 182,910

13. INTEREST FROM BANK DEPOSITS

2019 2018 $ $

Interest income from: Structured deposits 18,832 40,462 Fixed deposits 54,754 26,973 Current account 10 10 73,596 67,445


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14. NET TAKINGS FROM FRUIT MACHINES

2019 2018 $ $ Fruit Machine ("FM") Operations Collections from FM 995,134 2,902,180 Winnings paid (535,558) (1,570,816) Government taxes incurred (287,656) (805,252) Gross gaming revenue/net taking from FM 171,920 526,112

2019 2018 $ $

Direct expenses incurred to support FM Operations: FM maintenance expenses 31,373 31,146 Audit expenses 6,541 7,631 Food and beverage expenses - 2,053 Salaries and related expenses 110,723 181,555 Other FM related miscellaneous expenses 32,671 57,474 Total direct expenses 181,308 279,859

15. REVENUE FROM ENTERTAINMENT OUTLETS

2019 2018 $ $

Sales of: - Food 2,193,517 740,006 - Beverage 1,561,032 971,428 Room charge income 165,117 97,020 Service charge 182,064 76,394 Others 274,749 132,278 4,376,479 2,017,126

16. SUBSCRIPTION FEES

2019 2018 $ $

SAF members 2,316,894 1,988,174 Associate members 17,478 7,290

2,334,372 1,995,464

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17. OTHER INCOME

2019 2018 $ $

Arcade kiosk collections 8,992 - Miscellaneous 8,292 6,149 Others collections 4,040 - Rental income 9,600 9,600 Sponsorship of prior year overprovided - (51,113) Swimming course fee 16,447 - Temporary employment credit 6,173 18,789 Wage credit scheme 30,350 41,557 83,894 24,982

18. COST OF ENTERTAINMENT OUTLETS

2019 2018 $ $

Food 859,879 329,681 Beverage 681,203 431,377

1,541,082 761,058

19. GENERAL EXPENSES 2019 2018 $ $

Complimentary expenses 21,766 13,019 Decoration and display 5,691 11,324 Landscaping and horticulture 44,512 82,361 Laundry expenses 67,745 45,749 Nets or visa transaction charges 63,717 45,734 Newspaper 1,515 2,307 Outlet general supplies 87,204 11,166 SCV subscription fee 36,441 31,397 Uniform 70 314 Others 57,872 64,122

386,533 307,493


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20. REPAIRS AND MAINTENANCE

2019 2018 $ $

Contract cleaning 401,155 403,475 Repair and maintenance of: - building and grounds 87,478 59,860 - fittings and fixtures 189,431 229,003 - fruit machines 26,402 27,421 - swimming pool 21,707 21,245

726,173 741,004

21. STAFF COSTS

2019 2018 $ $

Salaries and bonuses 2,927,222 2,704,816 Staff training and welfare 244,809 252,488 CPF contributions 420,585 377,783 3,592,616 3,335,087

Compensation of Management Committee and key management personnel

Included in staff costs are remuneration paid to key management personnel during the year as follows:

2019 2018 $ $

Short term benefits 686,274 560,852 CPF contributions 77,457 61,028 763,731 621,880 The Club defines key management personnel as those who hold the position of head of department and above.

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22. INCOME TAX

2019 2018 $ $

Current tax Current year 79,000 - Under provision in prior years 62,889 35,862 141,889 35,862 Deferred tax Over provision in prior years (66,000) - 75,889 35,862

Reconciliation of effective income tax rates: Surplus /(Deficit) before income tax 527,520 (1,061,386)

Income tax using Singapore tax rate of 17% 89,679 (180,436) Income not subject to tax (43,090) - Expenses not deductible for tax purposes 53,763 52,478 Partial tax exemption (21,250) - Under provision in prior years - current tax 62,889 35,862 Over provision in prior years - deferred tax (66,000) - Effect of current year's temporary differences not recognised - 127,958 Others (102) -

75,889 35,862

Under Section 11(1) of the Singapore Income Tax Act, Chapter 134, no tax is payable if the Club receives from its members not less than half of its gross receipts on revenue account. However, the tax exemption does not apply to other sources of income such as interest income and rental income.


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23. LEASE COMMITMENTS

At the statement of financial position date, the Club has commitments for future minimum lease receipts under non cancellable operating leases of its contracted areas as follows:

2019 2018 $ $

Receivable: Within 1 year 870,593 760,625 Between 2 to 5 years 534,932 1,414,795

1,405,525 2,175,420 The Club’s future minimum lease payments under non cancellable operating leases in respect of the lease of its clubhouse and office equipment are as follows: 2019 2018 $ $ Payable: Within 1 year 2,695,640 2,715,440 Between 2 to 5 years 2,045,100 55,540 4,740,740 2,770,980

A grant will be given to the Club for the lease expenses upon application by the Club and approval by the Ministry of Defence.

24. CAPITAL COMMITMENTS

At the statement of financial position date, the Club’s capital commitments that are not provided for in the financial statements are as follows: 2019 2018 $ $ Clubhouse building improvement - 548,689 Computer system development - 308,215 - 856,904

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25. FINANCIAL RISK MANAGEMENT

Risk management is integral to the whole business of the Club. The Club has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management continually monitors the Club’s risk management process to ensure that an appropriate balance between risk and control is achieved.

The Club does not have any significant exposure to interest rate risk and foreign exchange risk. The main risks arising from the Club’s financial statements are credit risk and liquidity risk. The policies for managing each of these risks are summarised below.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a loss to the Club. The Club has approved procedures in place to deal with counterparties who fail to make such payments to the Club. Therefore, the Club does not expect to incur material credit losses on its financial assets or other financial instruments.

The Club has significant concentration of credit risk with 1 (2018: 5) debtor amounting to $19,915 (2018: $58,283).

The Club’s general credit terms to its customers is 30 days. The age analysis of trade receivables based on the information provided to key management is as follows:

2019 2018 $ $

Not past due and not impaired 124,551 69,610 Past due but not impaired: Past due 31 to 60 days 2,500 2,500 Past due 61 to 90 days - 100 127,051 72,210 Based on historical experience, the Club believes no allowance for doubtful receivables is necessary on its trade receivables that are past due at the statement of financial position date.


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Liquidity risk

Liquidity risk is the risk that the Club will encounter difficulty in meeting financial obligations due to shortage of funds. The Club’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Club’s objective is to maintain sufficient liquidity for the Club to fund its operations from its accumulated surplus.

The tables below analyses the maturity profile of the Club’s financial liabilities based on contractual undiscounted cash flows:

Less than

1 year

Between 2 and 5

years Over 5 years Total $ $ $ $ 2019 Trade and other payables 968,351 - - 968,351

2018 Trade and other payables 1,430,136 - - 1,430,136

Capital management The Club’s capital management objectives are to safeguard the Club’s ability to continue as a going concern and to support the Club’s stability and growth. The Club is not subject to externally imposed capital requirements and there was no change in the Club’s approach to capital management during the year. The capital managed by the Club consists of its accumulated funds. Fair value The carrying amounts of the financial assets and liabilities reported in the statement of financial position approximate their carrying amount due to their short term maturity.

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26. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION

UNCERTAINTY

The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the process of applying the Club’s accounting policies. It also requires the use of accounting 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 revenue and expenses during the financial year. Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates, assumptions and judgements.

Estimates, assumptions and judgements at the statement of financial position date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Property, plant and equipment and depreciation

The Club reviews the useful lives and residual values of its property, plant and equipment at each statement of financial position date. The estimation of the useful lives and residual values involves judgement. Changes in the expected level of usage and technological developments could impact the economic useful lives and residual values of these property, plant and equipment, resulting in revisions to future depreciation charges. The carrying amount of the Club’s property, plant and equipment at the statement of financial position date is disclosed in to the financial statements.

Allowance for inventory obsolescence

Allowance for inventory obsolescence is estimated based on the best available facts and circumstances, including but not limited to, the inventories’ own physical conditions, their market selling prices, and estimated costs to be incurred for their sales. The allowances are re-evaluated and adjusted whenever new information, which affects the amounts estimated, are available. The carrying amounts of the Company’s inventories at the statement of financial position date are disclosed in the financial statements.

Impairment of loans and receivables

The Club uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns. The provision matrix is initially based on the Club’s historical observed default rates. The Club will calibrate the matrix to adjust historical credit loss experience with forward-looking information. At every reporting date, historical default rates are updated and changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of


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ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Club’s historical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual default in the future. The information about the ECLs on the Club’s trade receivables is disclosed in the notes to the financial statements.

Provision for income tax

There are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. The Club recognises liabilities for expected tax issues based on estimates of whether additional income taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made..

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48 Boon Lay Way Singapore 609961www.chevrons.org.sg

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