I\ .. i.Jt )% Wi jJ! lf9P Ni. DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND

PROGRESS OF HONG KONG DIRECTORS' REPORT

AND FINANCIAL STATEMENTS

FOR THE PERIOD FROM APRIL 1, 2014 TO MARCH 31, 2015

Certified by

Director

fifi~ J1~~i-#~{t Lau&Cho

CERTIFIED PUBLIC ACCOUNTANTS

HONGKONG

I ff~ Filed I

II 111111111111111111111111 .._ ___________________ - 23101222689·- - - ~

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The Central Committee members present herewith their annual report together with the audited financial statements of Democratic Alliance for the Betterment and Progress of Hong Kong ("the Alliance") for the year ended March 31, 2015.

Principal activities The principal activities of the Alliance are to accept subscriptions and donations, to promote and encourage learning and education, to take part in political affairs and to improve social welfare in Hong Kong.

Fixed assets Movements in fixed assets during the year are set out in note 8 to the financial statements.

Financial results

Surplus for the year General Fund brought forward

General Fund carried forward

1/4/2014 to 31/3/2015

HK$ 7,655,556.16

13,104,540.79

20,760,096.95

1/4/2013 to 31/3/2014

HK$ 608,273.43

12,496,267.36

13,104,540.79

The results of the Alliance for the year ended March 31, 2015 and the state of affairs of the Alliance as at that date are set out in the financial statements on pages 8 to 29.

Donations Donations made by the Alliance during the year amounted to HK$68,000 (2014: HK$85,000).

Central committee members The following persons are the committee members of the Alliance during the year and up to the date of this report:

(Listed in Alphabetical Order)

CHAN Hak Kan CHAN Han Pan CHAN Hok Fung CHAN Kok Wah, Ben CHAN Man Ki, Maggie CHAN Pok Chi CHAN Siu Tong CHAN Yung, Brave CHENG Wing Shun, Vincent CHEUNG Ching Wan CHEUNG Kwok Kwan CHOW Ho Ding, Holden CHOY So Yuk CHU Lap Wai CHUNG Ka Man, Jacqueline FUNG Pui Cheung HO Chun Yin HUI Wah Kit, Michael HUNG Kamin HUNG Lin Cham IP Ngo Tung, Chris JO Chun Wah KAN Chi Ho

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KOOY eung Pong LAI Wing Ho, Joe LAU Kwok Fan LEE Wai King, Starry LI Ka Leung Philip LI Kam Man, Tony LI Sai Wing LO Kwong Shing Andy LUI Kin LUK Tei, Lewis OR Chong Shing Wilson PANG Cheung Wai, Thomas POON Chun Yuen QUAT, Elizabeth SOOiKwan TAM Wing Fun, Eric TSUI Hung Ying WONG Kine Yuen WONG Kwok Yan WONG Tat Tung YEUNG Man Yui YEUNG Wai Foon YUEN Ching Bor, Stephen

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Central committee members (Continued) Appointed on April 17, 2015

CHAN Wai Ming TING Kong Ho Eddie LUK King Kwong WOO Kin Man Clement NGAN Man Yu YIU Ming

Resigned on April 17, 2015 CHAN Wai Dune TAM Yiu Chung CHIANG Lai Wan WONG Kin Pan LO Yee Hang YU Lai Fan

Permitted indemnity provision

At no time during the financial year were there any permitted indemnity provisions in force for the benefit of one or more committee members of the Alliance.

At the time of approval of this report, there are no permitted indemnity provisions in force for the benefit of one or more committee members of the Alliance.

Management contract The Alliance did not enter into any contract, other than the contracts of service with the committee members or any person engaged in the full­time employment of the Alliance, whereby any individual, firm or body corporate undertakes the management and administration of the whole, or any substantial part of any operations of the Alliance.

Committee members' interests

In the opinion of the committee members, apart from as disclosed in note 16 to these financial statements, no committee members or shadow committee members, if any, had material interests in those significant transactions, arrangements or contracts in relation to the Alliance's operations entered into by the Alliance in the fmancial year or subsisted at any time in the financial year.

At no time during the year was the Alliance, a party to any arrangements to enable the committee members of the Alliance to acquire benefits by means of the acquisition of shares in, or debentures of, the Alliance or any other body corporate.

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Business review Over the past year, with the concerted efforts of our entire body of members, DAB has achieved satisfactory results in the development of the Alliance's affairs, as well as our council and district work. Today, we boast 28,000 members and over 200 district offices, with 13 Legislative Couocillors and 132 District Councillors. Through our extensive regional network the Alliance promotes various undertakings and serves the public.

In the Councils, we support the Government ' s administration to develop the economy and ensure people's livelihood in accordance with the law. We monitor the Government ' s implementation of policies, research and discuss the Government ' s Policy Address, Budget and policies of popular concern, and offer suggestions to the Government. On the method for selecting the Chief Executive, we saw mainstream support for the constitutional refonn proposal and we firmly believed that moving forward is better than staying immobile. This is why we have always stood firm in our support for the constitutional reform proposal. Sadly, the opposition has acted against popular opinion and vetoed the proposal, shattering the dream of the social majority.

Among the Alliance ' s members, 7 are Hong Kong Deputies to National People's Congress and 26 are members of the Chinese People ' s Political Consultative Conference. During NPC and CPPCC in Beijing this March, these deputies and members offered 19 suggestions and comments regarding cooperation between Hong Kong and the mainland, as well as on country development and other hot topics. The discussed topics were those that Hong Kong people consider important, including housing, food safety and financial cooperation. The goal is to articulate views from Hong Kong to the Chinese government and facilitate cooperation and development between Hong Kong and the mainland.

Regarding district services, the Alliance has over 200 district branches and offices covering every part of Hong Kong. With our extensive network, we excel in connections, efficiency and quality of services, helping the public address various issues including housing, transport, education, health and environmental hygiene. From January to July this year, branches and councillors' offices handled a total of 26,685 public assistance cases, organised 9,947 cultural and recreational activities and provided 9,608 courses or seminars ..

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Business review (Continued) Over the past year, we offered free health checks for the public on a region-wide basis through the Early Detection of Nasopharyngeal Carcinoma (NPC) programnie and the Atrial Fibrillation (AF) Community Screening Project. The Alliance also provided voluntary professional services for the community including free legal consultations, talks on wills and witness services, community mediation services and free Chinese Medicine consultation services. During the summer, the Alliance offered a region-wide free legal consultation services concerning mainland affairs with the support of mainland lawyers. The lawyers travelled to various districts and held 15 legal consultation events to help Hong Kong residents resolve questions concerning mainland legislation. All these community services have received popular support from the public.

Through the Alliance ' s various affairs committees, including Commercial and Industrial, Professional, Youth, Family, Women and Ethnic Minorities, we maintain and strengthen communications with different social segments to promote Mainland-Hong Kong commercial and industrial exchanges, conveying views from all sectors of society to the Government, and addressing the issues particular to each segment. To offer Hong Kong youths an experience of life, work and the society of the mainland, and gain more in-depth knowledge of the country, the Alliance organised "A Greater Horizon Mainland Intemship Programme " this summer. 103 university students from various tertiary and post-secondary institutions in Hong Kong undertook a one-month intemship at a number of companies in Chongqing and Hangzhou. A Political Party Intemship Programme was also held last year inviting local tertiary students to undertake intemships at the departments, branch offices, Legislative Councillors' and District Councillors ' offices. This year, we also organised youth entrepreneurship seminars inviting guests to share experience of founding their own businesses. These events helped youths expand their horizons.

In staff training, we have organised various seminars and workshops for our staff offering practical knowledge and skills and bolstering their work quality. With the expansion in the Alliance's membership and regional services, our expenditures increased subsequently. Last year a grand fund-raising gala was organised, which was a huge success with the generous support from all walks of society. Currently the Alliance's finances are sound.

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Business review (Continued) Although the Alliance has witnessed progress on various fronts in the past year, the future remains full of challenges. We will persist in our vision of "love the country, love Hong Kong"; continue to communicate with all walks of society, recruit members - especially among youths, commercial, industrial and professional members. By drawing talent to us and heeding public opinion, we will continue to bolster our ability to discuss and participate in political affairs and take the Alliance to new heights.

Auditor The auditors, Messrs. Lau & Cho, Certified Public Accountants, now retire and, being eligible, offer themselves for re-appointment.

jj(i:p:9,;~~·$ On behalf of the Central Committee

LEE Wai King, Starry c$~l')1' Chairman .:l:'.llis

',!J'~ • =~-Eif.+-JJ+-B Hong Kong, November 11, 2015

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEMOCRATIC ALLIANCE FOR

THE BETTERMENT AND PROGRESS OF HONG KONG (Incorporated in Hong Kong and limited by guarantee)

We have audited the financial statements of Democratic Alliance for the Betterment and Progress of Hong Kong ("the Alliance") set out on pages 8 to 29, which comprise the statement of financial position as at March 31, 2015, and the statement of comprehensive income and expenditure, statement of changes in funds and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Committee members' responsibility for the financial statements The Committee members are responsible for the preparation and the true and fair presentation of these financial statements in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the Hong Kong Companies Ordinance, and for such internal control as the committee members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibility Our responsibility is to express an op!Il1on on these financial statements based on our audit. This report is made solely to you, as a body, in accordance with Section 405 the Hong Kong Companies Ordinance and for no other purposes. We do not assume responsibility towards or accept liability to any other person for the contents of this report. We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the fmancial statements are free from material misstatement.

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flt1f'lIT>'2-Jii; • ~~Mtl§¥~~8:f~Jl1,«i!J'it!J?t f;llffi15iMW»~'llm 0:>:JZ tili&JI!!s J{ 1WM ~=~-n4=~=+-BB'J~tl§~~.&. ~~~BK4~B'J~~.&.~~~~·:Mz8 ttt!\/f1ll'illi«0 'ii.Jf!ffifJU»:\£ Jii;*lli~ •

ffili/6l l'J~'ti.'~Hfli!ifi w/:!li¥A~1tttfli!i

i!?illi·=~-E4+-~+-B

(Continued)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEMOCRATIC ALLIANCE FOR

THE BETTERMENT AND PROGRESS OF HONG KONG (Incorporated in Hong Kong and limited by guarantee)

Auditor's responsibility (Continued) An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Alliance's preparation and true and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Alliance's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the committee members, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements give a true and fair view of the state of the Alliance's affairs as at March 31, 2015 and of its surplus and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in accordance with the Hong Kong Companies Ordinance.

Lau& Cho Certified Public Accountants

Hong Kong, November 11, 2015

El 1 31 - 7 -

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1%1::lf;:!liiZhi!!aWM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG 3!:imt&/\W3ttf:I~ STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE

~~=~-E~=~=+-Sk~/l FOR THE YEAR ENDED MARCH 31, 2015

l!frrtt 2015 2014 Note HK$ HK$

4i(J,. Income

• .!~J/liiili:4!<:A Donations received from members 39,270,128.00 81,257,463.36

·-t&~ Members' subscriptions 438,260:00 423,320.00 xll~>al/Jlf!l:A Income from branch activities 7,899,433.80 7,375,526.80 ~~·~§4!<:A Income from committee projects 1,492,335.80 1,247,542.70 •JW:5§1/Jlf!l:A Income from fund raising activities 58,494,800.00

;!'f;fftl.t&A Other income 69,987.27 11,963.69

t'!4!<:A Total income .. ..107,664,944.87 ... 90,315,816.55 ..........................................

xtl:l Expenditure

m~».rri&xtl:l Rental and administrative expenses 69,697,765.26 66,083,855.06

~~•~§xtl:l Committee project expenses 6,598,666.30 4,734,808.80

>'l$ia1111zt1:1 Branch activities expenses 20,605,214.87 17,021,432.78

•~ial/Jxtl:l Fund raising activities expenses 1,346,510.30

~ffi&(~fl/.~il': Depreciation on equipment,

:ffrtl furniture and fixtures 1,252,160.88 1,358,375.38

±ftll&l'J"F=lfrffi Depreciation on leasehold land and buildings 509,071.10 509,071.10

i11z1±1 Total expenditure ... 100,009,388.71 ... ........ 89,707,543.12 ..

;ifs:~)l:1[[~ Surplus for the year (6) 7,655,556.16 608,273.43

;ifs:~)l;la!;fftl.3!:lmt&~ Other comprehensive income for the year

:ifs:~/l:3!:ii'iit&~t!M Total comprehensive income for the year 7,655,556.16 608,273.43

ffi12~29~1l'gi!f!/ltt1.%,:ifs:M3%~~a\J~lll$ffi" 0

The notes on pages 12 to 29 are an integral part of these financial statements .

• 8 -

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~.±J~~lmil!iJmlRl. DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~~i£~ STATEMENT OF FINANCIAL POSITION

~=~-li:¥.:::~.:::+-B AS AT MARCH 31, 2015

;J F !Jiil/Jj;i il1i Non-current assets

¥.!]* ' filiffli & ~*1" Property, plant and equipment

!Jiiil!/Jj!i~ Current assets

ffl~&:Jtii!ltl,'~ Rental and sundry deposits

:Jtf(gff!t&txJJ!&mi1.:tt Other receivable and prepayments

Jl!l&~ffll!WJJ.:ttJJ! Amount due from a related party

ilH'ri'l'Jitt Cash at banks

m~ Cash in hand

!Jiiil!/J~tft Current liabilities

ff!ii.:ttl11&ff!i1'1f m Accounts payable and accruals ffii~,itt:qj Receipts in advance

jf,[!ff/Jj;f~;¥ffi Net current assets

j;i.il!iWffi Net assets

r.'~*;J}: Represented by:

~tl~~ Total funds

IBlli'lli~ General fund

~lli'lf¥.!J*~~ Contributions to land and buildings fund

~=$-E:¥+-~+-a~~~~~~m*&~m~~

J!fs.titt Note

(8)

(9) (11) (11)

(10)

(10)

2015 HK$

......... 38,704,159.69 ...

1,193,454.00 666,407.70

15,498,484.76 27,290.80

17,385,637.26

504,800.00 24,900.00

529,700.00 16,855,937.26 ........................................... ,

55,560,096.95

20,760,096.95

34,800,000.00 55,560,096.95

2014 HK$

.......... 39,821,613.67 ..

1,157,008.00 410,990.00

1,200,000.00 17,986,924.42

29,904.70

20,784,827.12

195,100.00 12,506,800.00

12,701,900.00

............ 8,082,927.12 ..

47,904,540.79

13, I 04,540. 79

34,800,000.00 47,904,540.79

Approved and authorised for issue by the Central Committee on November 11, 2015

LEE Wai King, Starry ~i!l!lW-Chairman .:l:.l'il'

~ 12~29 Jl:JlkJJ!fs.titt1.:;:ifs:MJ'%ffl~JlkJ!fl!fflHlllfil 0

WONG Kine Yuen ~~i)]i Honorary Treasurer ~j',jfO:JJ!l[

The notes on pages 12 to 29 are an integral part of these financial statements.

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~.±~~m&l!!i!IJfi.l&l. DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

&1i'ffil!i/J~ STATEMENT OF CHANGES IN FUNDS

~~=~-E~-=~-=+-BK~M FOR THE YEAR ENDED MARCH 31, 2015

~=l';\\'-.=.~lmfl-8 At April 1, 2013

:;$:~Jl'lii:1~ Surplus for the year

. :;$:~Jl';ltft!7.:'E:iml&~ Other comprehensive

income for the year

:;$:~Jl':'£ iml&~tl!!~ Total comprehensive income for the year

~=~-im~=fl=+-s At March 31, 2014

:;$:~Jl'~~ Surplus for the year

:;$:~Jl';!t{l!,:'£ iml&~ Other comprehensive income for the year

:;f;:~Jl':'E:lliil&tHJ~J~ Total comprehensive income for the year

~='/l/i'-.li~-=fl-=+-s At March 31, 2015

-~~*~~~m~•~*~m~~~*·

ffiljft!fm~&1i'£ ~it1/'i Contributions to General laud and buildings

fund fund HK$ HK$

.... 12,496,267.36 ... ..... 34,800,000.00 ...

608,273.43

........... 608,273.43 ... ....................................... 13,104,540.79 34,800,000.00

7,655,556.16

7,655,556.16

20,760,096.95 34,800,000.00

The contributions to land and buildings fund are for the purchase of the Alliance's office premises.

~12~29JHt\J[i(;J-itt~::$:Mf%ffi'&a\Jmll!Hlllfil • The notes on pages 12 to 29 are an integral part of these financial statements.

- 10 -

!%1&1/'i Total funds

HK$

47,296,267.36 ·········································

608,273.43

............. 608,273.43 ...

47,904,540.79

7,655,556.16

7,655,556.16

55,560,096.95

1,1;.:l::~~iit,~JIM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

~:fiz:!Jit:I:* STATEMENT OF CASH FLOWS

~~=~-Eif.=~=+-B~if.~ FOR THE YEAR ENDED MARCH 31, 2015

ff.r#. 2015 Note HK$

£I,',f5al/Jm~51rt:I: Cash flows from operating activities

2fi:if.ffi'mMi Surplus for the year 7,655,556.16

~~: Adjustments for:

:tlrff Depreciation (8) 1,761,231.98

f/J,\l!J&.A. Interest received (2,662.27)

*=H,',fllJil'~~I/JWZ. Operating cash flow before movements in ~1,ffji,~;Jldi! working capital changes 9,414,125.87

j<Jl.;i?;:.&.:Jt{i!l:f'tt~t~:tJO Increase in rental and sundry deposits (36,446.00) c- ;!'tfttl!l/Jl:,l;\:)Jjli'i.ffl{1,l;t: Increase in other receivable and

~:/:JO prepayments (255,417.70)

!!{'1',l;t:JJi.&.!!{i'l\l:ffl Increase/ (Decrease) in accounts payable

t~:tm I Or,\;Y) and accruals 309,700.00

ffli&,l;t:JJi;r,l;j> Decrease in receipts in advance (12,481,900.00)

*El ~~-i'*nzm~ Net cash (used in)/ generated from ( 5Jit,'jj) /ifrt,A.;filJl operating activities ....... (3,049,937.83)_

:tl!:'ill'5al/Jm~5Jit:i: Cash flows from investing activities

~.A.!fo/.1* , i&ffll.&.~M Purchase of property, plant and equipment (8) (643,778.00)

45c@J~ffll!W :nffiXJJi Repayment from a related party 1,200,000.00 flj,~,45[,A.. Interest received 2,662.27

*Elt5!:J1l'*nZ,JI.~ Net cash generated from / (used in) 5Jit.A. I ( ;J1E If:\ ) ;filJl investing activities ............. 558,884.27 ...

JM!jl'*i'%Z>Jl.~;Jlt:i: Cash flows from financing activities

( * El 1Mt'~*nz,J1.~ 5Jit t:1:1 ;f,ffi Net cash used in financing activities ........................................

m~.&m~~!JiW Net (decrease)/ increase in ( )r,\;y) /~jJOjf,ilJl cash and cash eqnivalents (2,49 I ,053.56)

"J':WZ.m;i';;.&. Cash and cash eqnivalents ,Jl,;i';:~i}i!fo/.1 at beginning of the year 18,016,829.12

o¥~z.m;i';;.&. Cash and cash eqnivalents

m;i?;;~!Ji!fo/.1 at end of the year (11) 15,525,775.56

ffit2~29Jll:il''.JIIJ'sfitt~2fi:Mnffi~i¥Jfii:!ll$fil 0

The notes on pages 12 to 29 are an integral part of these financial statements.

- 11 -

2014 HK$

608,273.43

1,867,446.48 (1,229.69)

2,474,490.22

(72,363.20)

(225,091.00)

(42,222.98) (507,500.00)

......... 1,627,313.04 ...

(1,443,934.76)

1,229.69

.... Jl,442,705.07).

........................................

184,607.97

17,832,221.15

18,016,829.12

0 ·i ") ,[ C, .:. ~ _;

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~-1'.~i!!ljjg :l!!ilW!lM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

MWff:izJl/1/tt NOTES TO THE FINANCIAL STATEMENTS

~~=~-n$=F.i=+-8Kff~ FOR THE YEAR ENDED MARCH 31, 2015

1. -M~lfSf t.i,.:t.Jti!!lllii\l!HWM( r :$:IIY~M J )~-F.ll59.~ ~*~~~~~0~,~~~~~z~m L~~~~=+n·~tt$~$~Z~hl ~ '!' i'l!i :Jc fil ~ ,(,; m s 31/1,'i llW ~ lli !l!1 * JJ: 1 s :It •

*~MZ.±.~~~~m~~-t&A&ffl~ • 4JCA!l'lf'i={@~Ez.~J/\/J,\lFl§'&fJ1:11f, ~~

i&5El&&@'ill'*~H~tilifU •

2. /l!!l'lffiiIT.&~®iiIT'ill'i'l!iM~~~$lW

1. General information The Democratic Alliance for the Betterment and Progress of Hong Kong ("the Alliance") is a company limited by guarantee with no share capital. The liability of each member is limited to an amount not exceeding HK$20. The address of its registered office is 15/F, SUP Tower, 83 King's Road,

The principal activities of the Alliance are to accept subscriptions and donations, to promote and encourage learning and education, to take part in political affairs and to improve social welfare in Hong Kong.

*:¥ffl'. • *!!WME.f*~~J:j'j~ =$-IZ!l$1Z!l F.!-8 iEfl~Hlt'lFsi'.:f.%1:El3'ill'~~Hlli!i0~£.llf/lia<JffiJf Ez.&l[~iiJi1!l llU , ~irr*Ez.~f'l\ ( r i'Ji:tf&~f~U'ill'i'l!i~;,t~~.g;.i1!lllU J ) • f*~,jlji'Ji:tf.&t~f~iIT'ill'i'l!iM~~~i1!lllUZ~~g!js lll:i;:~DT •

'i!l'lllM~¥1i!~$llUffilOl//,'i , w~MW¥1i!*iillllUffiI25/li& 'l!l'~~\'ftijl,JlUffi271//,'i < f~U:$: >

'l!l'llii~Hi!llllUffi321//,'i ( f~iIT2's:) 11l'lll~~ti!/lllUffi361//,'i ( f~iIT:$:) 'i!l':itt~Hi!/lllUffi395/li. ( f~llJ2's:) 'i!l':itt( ~l~M~ffl*~f'l\',li! ~ ~)ffi215/li

1fr:i\l>l!I~: ~'7U-M~j,:i£:J?i.M~~mzm®'l 11'M~j,:i£:Z Pf t&@J 1fr:'Afillit~ 15r§:.I~Z 1lt~~]l!&JM5'l'~~tZNtJl ~-

~2's:$ffi'.~!l'lLl1fi:l*iIT&M\f~iIT'ill'~~;,tW$ll~i!/lllU,lftlli\JM2's:f,~M~2's:$ffi'.&JJ!itt$ffi'.ZM~~fY/.&)b'(:i.7LZtb'l ii*J:j'j~~~;k~/B O

2. Application of new and revised Hong Kong Financial Reporting Standards In the current year, the Alliance has applied the following new and revised HKFRSs issued by the Hong Kong Institute of Certified Public Accountants.

Amendments to HKFRS 10, 12 and HKAS27 (2011)

Amendments to HK.AS 32

Amendments to HK.AS 36 · Amendments to HK.AS 39

HK(IFRIC) 21

Investment entities

Financial instruments: Presentation - Offsetting Financial Assets and Financial Liabilities

Recoverable amount disclosures for non-financial assets Novation of derivatives and continuation of hedge accounting Levies

The application of the above new and revised HKFRSs in the current year has had no material effect on the Alliance's financial performance and positions for the current and prior years and/or the disclosures set out in the financial statements.

"" '- -~-1.J 1,.) / l

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~.:l:.~i!!lilR, ~IIJllM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~:flf'&llfttt NOTES TO THE FINANCIAL STATEMENTS ~~=:lf-1i1Jc= J=l-=+-B.l!:1Jc!i'. FOR THE YEAR ENDED MARCH 31, 2015

3. .:l:.!ll!'.@"iiti&ffi:ffl~ ( ~) ;fs:MJ%ffltD:it.!i: ~lil/'Jr'%l@Jf:! ~i!!lM~ffi 'B~lW C r ~i!!ll!Hiffi'B~llU J ) §.ll~ ' 'E!J\li~i!!lfr/it~i!iil-fr ( r ~i!!lfrlitm

il-fr J ) llflf/!i:Z/'Jr1fl@ffl@l5:1U~i!!l~:fi% ffi'B~llU • wi!!lfr/it~llU C r ~i!!lfrlit ~llU J ) .&iii~· Wi!!lil-Wi:frlitlffe:llU.& ~5tll0-'p]filF-19U:Ztl'i:iUll.Ji':: • ;fs:MJ%ffic& t.!i:¥.1'!~.lt'.!vG,js:ili!;~iliii~ O ,tq~l'Jl.l*~f'J:Z m:;;1;:fr/iti&~~-nl'tt~.-F::x: •

a)~~~~ tlHf~;'§~;fi%ffi'B~llU • Mi%!/~'B :Z ~ ~ ~ f"J= tf:\ cls' 'f ~lll !ii f .. H& .& f;li lit O fa]~ > :i±b!Jf:! fr/iti&~:Z~fli!_ cp , m'l!f~l'J!!JliBiffl;!tfUffi • 5:&.& ~~ !ii l&Jffi :Zifrill , P,J, El::W~.& ft/it f,f ~~Mr% ffi 'B Jm1§" !Jim ;;I;: :Zifri I! , ntM39iffi'Bllfttt4tl'i:iit •

b) W~ · ~ffi&~M !fo/1 ~ • /iJl:ffi & ~M nt.!i: l\lHi'!. Jr,t!stiit fl'J ~litr!rlf&J:tt;Jl1Zffi~:t~All& •

m ~ · ~fR & ~M :z:tJrlf ntlttf ;1t mi: ffi;Jl1Z~f;li/it,Mtii~ffiiit • ;!t'e:tf :tJrlf$:iiDT :

±t1!;

$'¥ ~ffi i*ffl~~ 59:]f[

H~@:!t:ttfflWJpgftjiJ!l 2.5% ][~;t;/itW 20% t.fi:Jl;r,'(;t;/itW 20% ffiJl;~;t;/itW 20% WJIJ~;t;HW

3. Summary of significant accounting policies (Continued) The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICP A"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention. A summary of the significant accounting policies adopted by the Alliance is set out below.

a) Basis of preparation of the imancial statements The preparation of financial statements in conformity with HKFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Alliance's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 4.

b) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided to write off the cost of items of property, plant and equipment over their estimated useful lives and after taking into account their estimated residual value, at the following rates per annum:

Leasehold land

Buildings

Equipment

Furniture and fixtures

Motor vehicles

- 13 -

Over the lease term

2.5% on straight-line basis

20% on reducing balance basis

20% on reducing balance basis

20% ou reducing balance basis

(

~.:r.~~ilrMili!IM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~~*llf1itt NOTES TO THE FINANCIAL STATEMENTS

~~=~-li~=~=+-BK~~ FOR THE YEAR ENDED MARCH 31, 2015

3. .:l:.~ 1rtti5dlUii!~ < ~ > 3. Summary of significant accouutiug policies (Continued) c) ,J!.j;;]j'(:IJ!.,&~{l!f&J

mj;:EzJ.Jl.j;:~ 11 !f&J -e2 :f\lij~fi J¥mi:& ,.Jl.j;; , !!~frJ¥,iij:P.J.&J]Ul::¥UWJ B ~ .=@ ~ ~P..1-TciJlffl~ff~~ E'.9saj;; mi ®>Jbi:fi ;&; & ® iJi m~i!J j.\~ ::f' ~ ffi'::k i¥J ~ ftll~liJ!/l1,,5 i.ffci/J't!Ull:'il 0

d) ~{;j;;:1'ifUJvl:;zf;;: ~i ttU·l:10-ffl'#z~tlITZ 1*1:,rJ:7'm-ii~ };IH*', HIH:iilffi NiiffiI& f*",lf1,:'ilmef f'F ~iffl)tJ'D~ 0

·

e) i&~li'i/i'J mmzmi:~.c.J.:mai:•1,&w~i&iu zm)1f1.:*Hf , '§:f\li,oJr:-Jar~~~:l!j: s i&¥ITZJ!I:§ ,

~ ~ * Jl'tE *ff 1o%Cl!ll l'!i:1l: ~i!li'i t:gA~.,

551/J &~i!!fz:EJI i&A~:ic Jlx;ij&~Bf li'i mAr!J& 0

fU.~4lc.A.tlH~2fs:j;:$a~&'.i'~fU$ $/:tl~r.itt19Uli'it7,i,)I.~ ,

f) fflj! &'fll.~ z ffil<,lf1,:'l'ff -1:H~ !5Jr'fei m!5fi i!f. 1c zt'el::kl'l~fS jj,~ lit@! fflff1'$ ~11( ffl A , ~ ~ f1l. ~ 11/i :53-!Jl!L~ iiilll 'il fll. ~ ' pfi 'rI ~ fill f1l. ~'J 11/i :53-!ffi ~ ~ ~ fll. t'J'

:zfs:Ju%00f'El,,,m!§ A ~ ~fll.~ Zll!fstfll.ai:~'fsi~M1l.Wl pg l'!i:1l:~i! liel 4lc3t:'/RJ'D~t- 0 fF~IT:fz: iJ!f~fll.t'Jil~ZE'.i&&ll!4lcfU~# /iNll.M pg P..1- 1l: ~$£it7,i, ~fll.ai: lffl 3t J'D;~~§'

c) Cash and cash equivalents Cash and cash equivalents include cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with origioal maturities of three months or less that are readily convertible into !mown amounts of cash and which are subject to an insignificant risk of changes in value.

d) Retirement benefit costs Payments to the Mandatory Provident Fund Scheme are charged as expenses when employees have rendered service entitling them to the contributions.

e) Revenue recognition Income from donations is recogoised when cash is received and includes all sums received up to the reporting date.

Annual subscription fees are recognized on a straight-line basis over the subscription period.

Revenue from activities and interest courses is recogoised · upon completion of services provided.

Interest income is recognized on a time basis by reference to the principal outstanding and the effective interest rate applicable.

f) Leases Leases of assets are classified as finance leases when the leases transfer substantially all risks and rewards incidental to ownership of the assets to the Alliance. All other leases are classified as operating leases.

The Alliance as lessee Rentals payable under operating leases are charged to income and expenditure account on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are recognised as a reduction of rental expense over the lease term on a straight-line basis.

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~±.~~11,/ji!g]ll',I[ DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

Ma'%¥R~llfiftt NOTES TO THE FINANCIAL STATEMENTS ~~=~-li~~~~+-BK~~ FOR THE YEAR ENDED MARCH 31, 2015

3. ±.l!l!tftti&ffi'ffi¥Cffl) 3. Summary of significant accounting policies (Continued)

g) ~ffll!l!.A.±

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(iii) (a)(i) l:lil'Ji'lfil.A.±ti~'.ll':ll!l ~~li;;l;:ffi:j'//;tJ O

h) fe\'~nx:2f'. lij\~4$!:l!II: • }t~~~il!li(&PJJl~-JsJH'i: 11\'f FsinPJ li~W-n m ~~tl::! '11, Zfi il!li) ifilgti~Zftj,i:nx:*, !MfllHcfF~~mm fi iili z cgJJ{jt'~ * jJ, ' p]T 1[ {{\'j,i: J,)G,fs:-1![ ~~!'ft: :i.; 1'f mm IJ\'f Fs~ &: 115s tE ®: 3t * 't1 0

i) SEiaIJ! 'lft2fs:®t MP.i<:~ I~n K{'.]f~xz n K{'.]ti 11\'f•M~~gtiRJ!t~~iJ!~M~~~ ~~~ 0 M~~~RM~~mW~tt 0'JZiIHtll O ~l&l!ll:~~fiM~~~ .&~lt~~m ( tt0'JZ{i[H J\4$!:~ZM ~~~.&M~~ fJ!jij;jJ,) jjjj][~Ji!!:1.s :Zx~P.i<:,fs:~W~~~IJ\'f • ttiil!im·f:i!i !5l1JOJ\~10 El ~lJ:i~lt~~gtiRM~~ ilZ0'121.!I O ~4$!:l!ilitt0'JZ{.!IHJ\t; ~ZM~~gtiRJ!t~~ iJ!jjij][~Ji!!:1.s :Zx~~;;fs:&PBl~l&3t:c&~~ 0

Ml'#Wi* ;;fs:JW/MZM~~gti:5t;l!Jl~j,i:iiiJ:Ril!i& ,r,J:~ 0 m~~ml!ili~~~ffiZlEifl~ !!f. , ntx~ 8 Zi!i!s11!a~iBRJ&>)[jlit ~

0 ~~m1:~~~t1,~m~~m~m Ji':~ ·tl.i: f'Ji JJ'.l:/£-W:J!ll ~~ I*! Mt fr~ iii x HZM~j;'i!f.~Jf 0

g) Related parties (a) A person or a close member of that person's family is related

to the Alliance if that person:

(i) has control over the Alliance; (ii) has joint control or significant influence over the

Alliance or has significant voting power in it; or

(iii) is a member of the key management personnel of the Alliance.

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

(i) the entity is a post-employment benefit plan for the benefit of employees of either the Alliance or an entity related to the Alliance.

(ii) the entity is controlled or jointly controlled by a person identified in (a).

(iii) a person identified in (a)(i) has significant voting power in the entity.

h) Borrowing costs Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of cost of that asset All other borrowing costs are charged to the income and expenditure account in the year in which they are incurred.

i) Financial instruments Financial assets and fmancial liabilities are recognised when the Alliance becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities ( other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the fmancial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in income and expenditure account

Financial assets The Alliance's fmancial assets are classified as loans and receivables. All regular way purchases or sales of financial assets are recognised and cierecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. O ) :: e

i.J ij '4 - 15 -

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C

~.:r.~~flihif!al!W~ DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~~*J!f<ftt NOTES TO THE FINANCIAL STATEMENTS ~~=~-li~=~=+-Btt~~ FOR THE YEAR ENDED MARCH 31, 2015

3. .:r.lJ!!'. ~ttif~JIUl!!~C~> 3. Summary of significant accounting policies (Continued)

i) ~ilM!IJl, ( ~) MWi'i:&C*lU 1(/Iiff!J$;* Jf!~fU$$~-:f.m§t~M3%".li11£. flill~ /ilG2fs:W:5J-5JlHU ,@, t/!O,:¥U ffi ~I! WlFaiZ:n5* 0 Jf~fU,1$~P.J.ffl litts" §fP;j" 3% j,' §f. tiJ {le',E§ ~Wl ~ ( ~OJi!ii,E§) :l!i:mWlFai{i!i§t*?!<:ijl,'ii';: 4:1'.A C 'El. l\5 /ifi 1'.f tE fey l!\1i 3t it ZJI: ffl • ~cM11l'~fU$il'iU!Zl!L\ , x. !f/, /i)G;;js: ~~ ;!;'!;{jg ittl 11 ~tfr{I ) Z:fJfijitt:;$ 0

1Jt3% IJalc B.\J 4:1'.Al'.JJ'ti:'l' ~fU $£ ~ lit/i?J • 'tt :51-ffi ~ Jill JI!'! :fjl ~ l'ii'0 ft ffi?U ~B.\J M3%5ii i11£. B.\J fU ,@, 4:1'.A 7:J§t ,\;lj:fjl~ 0

fifJti:.&/Jff.1/fzJti:J:Ji ~~&/!!\\4:\'.J!R~~tt)i5i/1"$:\!,\J: 1:t~ffljlffij J,l,*-f l'lil JI:'.~~ JI:'. {i~ Z3Ff5r1'.M3%j,'ii,: 0 /krJJ=xlit/i?J ~ ' ~~&E!!.4:\'.J!&~( 'el,J',5;!;l;ffgE!i,

t!:\'.~~ • itH'riatt%&•Jl'ii'i:)tl'.fU~ fU $ !i;J'ti: fli1I ~ /ilG+ iFeHE ftiJ E'. ~5:!a i~ffif5ffii?U~ c ~t~rJl!rx'Aml! ~t3%'l((i1to~mz trtti&~ l

J!ff:tj!{ffff /Jgf(.i

~t3%'l((i11£.~ffl*Mr.i'!ia.w:'& s11 iR' {i!i ~ '& ff 1'l ;~ 1l'!. J&,JJ; tl< O {f/,j tl:l fJ!, '.§'. Im i@ l!l • ~p !zsl M J1Hl il'HJJ tv lit /i?Jtlti11£.1'.Z-J\'i:~~~~{'i= • M 3% Ji( i11£. fi!i §t * 3!UJl 'ii';: 5Jif. :!I 'Jl:. JU~ II • l'!UM3%'l((i11£.7"U{'F5~lEi'. 0

i~ffiZ'.§'.!llii@~tiJ'El.l\5 :

· frf'r )..~t,t::15 t!::\fJ!~:;i(~Ti&l2Eillft ; ~

i) Financial instruments (Continued) Financial assets ( Continued) Effective interest method The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest . income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period to the net carrying amount on initial recognition.

Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as financial assets at fair value through profit or loss.

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. At end of each reporting period subs~quent to initial recognition, loans and receivables (including others receivable, bank balances and cash) are carried at amortised cost using the effective interest method, less any identified impairment losses (see accounting policy on impairment of financial assets below).

Impairment of financial assets Financial assets are assessed for indicators of impairment at the end of the reporting period. Financial assets are impaired where there is objective evidence that, as a result of oue or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Objective evidence of impairment could include:

- 16 ·

significant financial difficulty of the issuer or counterparty; or

default or delinquency in interest or principal payments; or

it becoming probable that the borrower will enter bankruptcy or financial re-organisation.

lj l:) / , __

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C

l'll\.1:.~;liifi/bitlllPM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~ffl~llfsftt NOTES TO THE FINANCIAL STATEMENTS

~£=~-li~=~~+-BR~& FOR THE YEAR ENDED MARCH 31, 2015

3. .1:.lffrtti&ffiffl~(il) 3. Summary of significant accounting policies (Continued)

i) ~IIIJl(ffi) l!zf:,4\j/;1/i (ff!) ft!HJfi!fjJ,ff8 OJfJ iitlFF~5lLl®M~Jll:i11i C JIO'j!/ ~l!t& ~~)mB·~~~fr¥~~IB~ffi ®'.l1i'i11i~"1it ;l,;~~~-#r/W~j),iffi. 0

!!t&~~ffi~IB~~fi®~!lll~~§ m*~M~ttt&~~~-ffi~i7'.l~M ~~~~m~Mz~~~§L~-~ ~~f!!l!ilii~jj!f!i:;1;;5l IBf.ll:IJJlM~fll)J1({ l!t&~~*fIBtl~ O

~~Bmffim*Hfi®l1t~'.l1i'i11iffilB · ;i,itiU5m~J;,(xiJi®ll&oomwfi!iH **m~~~®mmc~M~~~® m{MJ'.l!f~fLll$l:tfrf.ll:) Fell®'i'ic~~t'.ll 0

~Pfi1'fM~~i11i1'f mmz!J,iffi/15mtr1l: mnt~<1"3%~i11izll&iliiffi:trni,i , ·tit'ii~ l!t&ll&~!!#i:>'~ ' ;l,;ll&imfitl"i21~/lj{ffi ~{'fIB:tD;J,i O fi1Jili&l7'!Z~jjjjffi~itl 1tnt451:3t!if~ 0 1.Ht~~J:i\!tl'itJI.~~ PJt&@IB\'f • ;l,;)f/j/itfi1Jili&l7'!tii&ffi O J/0 ;!,;i&t&@IZm!BtlllJ§z.;;,,tJ:i\! • J!LlirH At&x 0

1t<t1it~mffim*H'.llz11t~~i11iffiiB • J/0 B ~;~f[f.,'IJ!~~;~y • ffii~;J,i

j>PJ~!llltili~lit~;~{][f.,~i&~1:® lJ%1fl~ffl , ~ttlif1,1i®i~m1tsmJmi21 ~t&xti@I · ·tit~'.l1i'~li&jljjffi/iti~i][ ~@IBM~~~~tt~lif~~ffiffilW­'fFZJ.llll§m* 0

l!zl:'41:®ffl EB*~M~fiz~t~j:j_ ilnt?JiiU:fz:Z iif-Jii.''rJFl7'!@'. • PJ.&M~j;j_{lz'.il':~ ffiJ ,tl!Ji 0

j!;f~j\l_{Jl§fl';;!,;i'&tl-Jf!li\fJJ$$~­ffim*tt ... z~ ~ .&;l.;{ilili!HtRI~ , ffit&~J:i\!.&ilH'i'{i\li'l: 0

i) Financial instruments (Continued) Financial assets (Continued) Impairment of financial assets (Continued) For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio ofreceivables could include the Alliance's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the credit period, as well as observable changes in national or local economic conditions that correlate with default on receivables.

For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset's canying . amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

The canying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the canying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in income and expenditure account.

For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through income and expenditure to the extent that the canying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

Financial liabilities Financial liabilities issued by the Alliance are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability.

The Alliance's financial liabilities (including accruals, receipts in advance, bank borrowings) are subsequently measured at amortised cost, using the effective interest rate method.

- 17 - -lj u / h

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C

C

~.:t}l~~MlillM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~WCRl!Mtt NOTES TO THE FINANCIAL STATEMENTS

~:,;,:=~-n~=~=+-BR~i:t FOR THE YEAR ENDED MARCH 31, 2015

3. .:t¥iritt"Hffi~<OO 3. Summary of significant accounting policies (Continued)

i) j;il!IJ'i(OO l!?IJ%io:fl< ~I l 1l/J$iff/$1* '.l'~lU$itdif:-ffl!itt"~M3%~ !1l'II £"1 llX :1f5:W 55-iJNfU /~!-:3t :±l ¥U ffl ~fflM F.ll zni* • '1'.~fU$~0.i!wli1111is!tM i'%~1JtMFsili'Z C f(D~ffl) JiJiIMF.ll 1isH*?ls•Ji.j;:szlflZJ/r:IJl.t:tl¥ •

;\l[llfr;Jii(W, 06't£f.' ii l&J1ll.,J!.,i: iJif.i!: z ;ft fU 8 ¥U WI , li'Z~,t3%~il8iii~&:1f5:!!r,'1&!8 ~:Jt ~~i!lfi' iiilll!11./I z~!*l51lf5J Ji\~ix&@l¥1."~ , flUMi'9.i'iliii!¥HilU 1\1\ffr,;g • ~£\UM'sffr,;gMi'9.i'lliii~ , Jo' iiil!&ffi {i[ W 8 l&&,'/,!\\ l& {-\: -!Ji& 8 1l:~~L&:sz*:mr,;gz. ~ lit ?li. M<li'Zws *z.:ill:'l@i ' ~~l&:s';:cpffi,:g.

fl/,j~11rnm-&~zt:a~•ffJJMl\1\ , lH/lJli'Z¥UM~ , flU@-£\Ul\1\ffr,;gflt~ ~ffl · iuM'smr,;gzM~~1Jt11&ililm WE{t&.@Ht{-\:fflZ.:ill:Wl~l&:si:'P tlg,'g •

j) 11%,;lili'ii~{i[ /n¥1.'i5-M~!f , :1f5:~!iM.1Wf.J-:Jt11%}1l' ii'Z~lilil{i[Jillfit!fl!t , P.J.li'/11~~'6 'f!flfi/F~llll~~*~iii8ft~;~{i!!Jl8 m · f(Dlfll:lH:f:fa.l~*lFi!Ft; , flUJisH ~iiiZ.oJl&@l~ml , P.J.li:~ir.tffi'.115 tjlr!Ii\'iJ:t • f(OJis~t'l1iii'Z.riJl&@J~ml ft&~;l.;l!&lliiffi'. , flU#(f~'i1.'iiiZ.~ilil ffi'.;~{1£:,;,:;!.;oJl&@Jl!l:ml • ir.tffi'.f,:f~ ~n~mr,;g~:sz:±l •

ffeJ'1'i~ffi'.,f,m~:Jt:tltfR@l • ~~ii' z11& w m ~tm:,;,: :JtoJ 4il:@l l!l:ffi zm: fMt~tm , ·ttJ!!l/Jattzll&ilil-m.:fli5 iffi~ ~ 'll ili'i ~ tl:~ J:t,!'ii!\\ Elitgigi~ ffi'."5f~z.~lililffi'. • i~{.!,f,ffiz./R@l ~ps;li'/11~2~4il:A •

i) Financial instruments (Continued) Financial liabilities (Continued) Effective interest method

The effective interest method is a method of calculating the amortised cost of a fmancial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where aonronriate. a shorter neriod.

Interest expense is recognised on an effective interest basis.

Derecognition Financial assets are derecognised when the rights to receive cash flows from the assets expire, or the financial assets are transferred and the Alliance has transferred substantially aO the risks and rewards of ownership of the financial assets. On derecognition of a fmancial asset, the difference betweeµ the asset's carrying amount and the sum of the consideration received and receivable is recognised in income and expenditure. If the Alliance retains substantially all the risks and rewards of ownership of the transferred assets (including discounted trade receivables with insurance coverage and discounted bills), the Alliance continues to recognise the financial asset and recognise a collateralised borrowing for proceeds received.

Financial liabilities are derecognised when the obligation specified in the relevant contract is discharged, cancelled or expired. The difference between the carrying amount of the fmancial liability dereco gnised and the consideration paid or payable is recognised in income and expenditure account.

j) Impairment of tangible assets At the end of the reporting period, the Alliance reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an .impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expenditure immediatelv.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment losR.,is ,,

td -.:,: -recognised as income immediately. • . _ -·

iJ l._::_l / /

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C

l'-ll.:l:~x!ifJih Mlimm DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

Mr:lf~1HM"tt NOTES TO THE FINANCIAL STATEMENTS ~~=~-nif-=~=+-BK~~ FOR THE YEAR ENDED MARCH 31, 2015

4. ffl:f;:i'f"ttfiEitt &J/!!Jffi fi!itt &ftllr7:Jl'ti!l!i~tt~~&;ll;flg!zsl~ ~!JOifi~{;f, • ~ ~!zsl ~-e!Wtt::S:'f ti!i 5R.TlM*?ls:$~:Z.~l~llJJl;~U 0

:,fs:JWµl'Jl.f:t**fFt!:lfiEi~t&ffi<~ 'jjjjffl:J!t ~t±:lzwrH{;f,tttE'.iEll!i!...tW~~m•~~ ~,f~ffl~ 0 ~x0~~ffl~*ffi~~ ~T-M~if-~~~&~~~wmmfF tf::\]l*~~:z. {tW;faffl<~ 0

a) ~5EJ1f~Zi'ITitfflif-Jtll 2fs:119l\ l'Jl. fi!il 5E ~ ~ z <IT fleJfl if-WH!i 5E ~ ~ :,fs: ~mi lliHJl Jtll <IT fle Jfl :z. ~ @I Wl FJJ O ~ it ~t 7:71'lU! 't!E'.if &:i;/J ~ ffl {t( :z. !f&J * , ~/ffi & ff M'.IU~fle ffl if-Jtll :z. m tt ~.l!!li ffiH'F t±:l O

{~ PJ fleffl if.M lIDl:ZmfZ.{;f,~tif-M~~ • iltl~ll!l!i i'f"rJJ!:j',j'j:ffi!ilffl:s'i: ' &;!,;~E.¥111!1~ tf:j~B'\J~~t~llJ!J~t~;r,i O Jffj[I~~ if-itll PJ ~ :of IEJliNt H PJ fleJfl if-Jtll ; &'.iffli,i\mi'ITfiE:of~m-{tttMiil'i 0

5EJtll 'ffic l,.!JPJfi5)JHxtfrmif-Wl&l!iU i,J, ffl{[tf::l,J!.~t/J · llizW¥;z*?[{MFaill'li ~tfrl§lffl:s'i: O

b) !I&.]* '~ffi&fft,t:z.)r,iffi ~ 1'l $ i'F tfj :m ;j,11; •IJ!I ;R, ~ 1/J l1i'i :if; JI& ffi 'i1CaJfi5/!\1$l&@I~ • 3Jlltt!l&.J* , ~ ffi&fftiJifij]g,;{1~0 ° PJ4J[@J~ ~t~l!tll!'.m m m~t•~ r1, m ilil iii! 5E O tEli5Ell!'.fflflil'i~ > ~ll'fipfr~ ~z 'fjjl(,lj B i'JUl!. ~ 5JiLm WI" ~,5:fJl.~ A ,Jl. m , lzsl ilil fla~ J.tffl ~ffl iJHH'F t±:l ~ *ftlffi O

4. Critical accounting estimates and judgement Estimates 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.

The Alliance makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

a) Useful lives of fixed assets Useful lives of the Alliance's fixed assets are defined as the period over which they are expected to be available for use by the Alliance. This estimate is based on the historical experience of the actual useful lives of property, plant and equipment of similar nature and functions. Management will increase the depreciation charge where useful lives are less than previously estimated lives, and it will write off or write down the assets that have been abandoned or sold. Actual economic lives may differ from estimated useful lives; and actual residual values may differ from estimated residual values. Periodic review could result in a change in depreciation lives and residual values and therefore depreciation expense in future periods.

b) Impairment on property, plant and equipment Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The recoverable amounts are determined based on value­in-use calculations or market valuations. In determining the value in use, expected cash flows generated by the asset are discounted to their present values.

5. ~.IR'!~JU/iffiff 5. Committee members' remuneration

~it.lR'!lfl-2fi:if-Jl'.lliz59.1'l"";z: N~iiiH-:t~ ~ z 11/ifi: 0 (2014:q:.:M,)

No emoluments have been paid or are payable to the committee members for their services rendered during the year. (2014:Nil)

01 4 :l. -

- 19 - ij U · ;,5

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(

~.:l:lli!!i~ J!!HIWJ'll'. DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

Ml'%~:'&i!fttt NOTES TO THE FINANCIAL STATEMENTS ~~=~-.li~=~=+-Bk~ffl'. FOR THE \'EAR ENDED MARCH 31, 2015

6. :;j.:~ffl'.KlMi :;j.:~ffl'.Kl~~tDIIMH Al TfUJJi§ :

JtifvG:;j.: iil/'8;: • I'l1l'&JtftlltiifU

- Jtiie!i*tiifUitilFJWi~

J'/rti !lifffllUJlsi'"iot:±1

" ±Jt!l'i'!lll!'i" ~&fJfU.I\J,l&A ftl.~l&J..tl!1il'l

6. Surplus for the year Surplus for the year is arrived at after charging/ ( crediting):

Staff costs Salaries, wages and other benefits

" Provident funds contributions

Depreciation Operating lease rental for

land and buildings Interest income from banks

Total interest income

7. Taxation

2015 2014 HK$ HK$

47,361,116.09 46,079,128.92 3,923,129.44 3,700,541.03

51,284,245.53 49,779,669.95 1,761,231.98 1,867,446.48

5,358,966.41 4,822,026.93 c2,662.21i 11 (1,229.69)1

(2,662.27) (1,229.69)

7. !Jtlj'j <ltl.!iH!i'il<1'Jtf%il'/ijj/J~24(1J illi • :;j.:t,l'.llaJ:W~ ili;l!;1'Jt Jlj •

Tue Alliance is exempted from Hong Kong tax under Section 24(1) of the Hong Kong Inland Revenue

Ji<:,j;: : ln=¥-CC:4'JmFl-B illl!t ln=¥-lm4'CC:Fl:c':+-B i,i,'i!i'.

ln=!lt-.li4'CC:Fl-='.+-B

';l ,t/Jrl,i : ln="'1-CC:4'1m,EJ-B :,j;:"Je/Jrlai

ln=¥-!m"l'CC:FlCC:+-B $4'/fil!i ln=!lt-li4'CC:FlCC:+-B

111um~{1[ , ln=~-li4'CC:FlCC:+-B

8.

Ordinance.

Property, plant and equipment

±Jt!l&ll!'i" Leasehold land iltflii and buildings Equipment

HK$ HK$ Cost: At April I, 2013 37,768,085.00 10,989,919.92

Additions 676,878.00

AtMarch31,2014 37,768,085.00 11,666,797.92

Additions 312,518.00

At March 31, 2015 37,768,085.00 11,979,315.92

Accumulated depreciation: At April 1, 2013 3,054,426.60 8,601,063.98

Charge for the year 509,071.10 613,146.79

AtMarch31,2014 3,563,497.70 9,214,210.77

Charge for the year 509,071.10 553,021.03

At March 31, 2015 4,072,568.80 9,767,231.80

Net book value: At March 31, 2015 33,695,516.20 2,212,084.12

AtMarch31,2014 34,204,587.30 2,452,587.15

- 20 -

i*if/.l;\l;'l!l'. Furniture }'\:ljl: ~it

and fixtures Motor vehicles Total HK$ HK$ HK$

13,832,674.20 62,590,679.12 400,007.00 367,049.76 1,443,934.76

14,232,681.20 367,049.76 64,034,613.88 331,260.00 643,778.00

14,563,941.20 367,049.76 64,678,391.88

10,690,063.15 22,345,553.73 708,523.61 36,704.98 1,867,446.48

11,398,586.76 36,704.98 24,213,000.21 633 070.89 66,068.96 1,761,231.98

12,031,657.65 102,773.94 25,974,232.19

2,532,283.55 264,275.82 38,704,159.69

2,834,094.44 330,344.78 39,821,613.67

c-

(~

l:.lo.:l:l!illl1'& Jl!iliijMJ. DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

Mlll5flf'ts:!l/!ttt NOTES TO THE FINANCIAL STATEMENTS

~~=$-n~-=~-=+-BK~~ FOR THE YEAR ENDED MARCH 31, 2015

8. !lo/J~ , ~flli.liiWHtc ffil ± :ttll fll:liHli' ;!U,( -1.:Ui'lfll.if'J:jsHHSOflc J;(.l:) 0

9. Ji!H&fflffl~:1:i,W:lfi I/Hi l&i!i'1I.Illli~*Hk'!El cp ,t.,1'f!IN1} EJ ~JJi1l,iil\~1'!1 , §8,@,2iz.;j_1af~JEZl!!! ~M 0 ~~~2iz.N~~~~1}EJ~~ filZm~ 0 ~0EJZ*Ei~~~~i!i' ii!!t cp,J,:ft:*2iiW*Hl1:Elffll/ilill,'.l![i*Jli!l $:Ila 0

10. tu:&

~=~--=~Tm~-B *~~~AA ~=~-Tm~-=~-=+-B ;$:flc~~AA ~=~-n~-=~=+-B

11. '!Jl,:/ri&!ll.:&~~~ 2ffilfflfi2kttPD

*~3!<:llE i¥ii&:JZ:$ cpg!j~:;tll!l ~ff3!<:W D~:;tW N*iw3tllll 11,ft!Jilc:;'tll!l j,/,7.)(Jtf,:;tll!l )IH ,;J;,1!:E:,t 1lll ~~:;tW iiilt:JZ:W jc&./J:,Z:$ ttir,:;z:w jt;~:,tllE 5:J>EH3tW *iill:;tW l'!i:l!l'.&N•~:JZ:llll lll!Ui,:;tW

8. Property, plant and equipment (Continued) The leasehold land is situated in Hong Kong under long lease (over 50 years).

9. Amount due from a related party The amount due from Heungkong Business And Professional Services Centre Limited is unsecured, interest free and has no fixed terms of repayment, in which Cheung Kwok Kwan and Wong Kine Yuen have beneficial interests. The principal activity of the related party is to assist the small and medium-sized entity and professional servicing entity into the PRC market.

10. Total funds )1111:if~'l'ilii!i!i'i'i'i f;llfl/isti Contributions to

General land and buildings ii£:& fund fund Total funds HK$ HK$ HK$

At April 1, 2013 12,496,267.36 34,800,000.00 47,296,267.36 Surplus for the year 608,273.43 608,273.43 At March 31, 2014 13,104,540.79 34,800,000.00 47,904,540.79

Surplus for the year 7,655,556.16 7,655,556.16

At March 31, 2015 20,760,096.95 34,800,000.00 55,560,096.95

11. Cash and cash equivalents Bank current accounts with branche§

2015 2014 HK$ HK$

DAB-Eastern 11,455.72 627.63 DAB - Southern 3,954.80 1,513.30 DAB - Central & Western 10,870.97 6,492.57 DAB - Wan Chai 4,085.3] 87.84 DAB - Kwun Tong 13,622.90 4,459.81 DAB -Wong Tai Sin 4,375.60 10,689.45 DAB - Kowloon City 3,756.56 3,120.8] DAB - Sham Shui Po 7,727.98 1,247.36 DAB -Yau TsimMong 4,139.00 8,195.51 DAB - Kwai Tsing 1,382.86 10,548.62 DAB - Tsuen Wan 5,318.76 5,977.92 DAB - Yuen Long 1,028.66 5,664.20 DAB - Tuen Mun 4,615.20 5,012.78 DAB -Northern 4,768.79 1,845.07 DAB -Sha Tin 2,431.50 9,365.37 DAB -Tai Po 529.81 4,717.70 DAB - Sai Kung & Tseung Kwan 0 2,875.42 4,014.16 DAB - Islands 24,755.82 16,415.52

............ 1.11,695.66 ... .............. 99,995.62 ...

8'1-45. - 21 -

(

""'.:l:Jl;i!l!Kbil!i!IWM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

MJfffl:'&llf<ftt NOTES TO THE FINANCIAL STATEMENTS

~~=~-li~=~~+-BR~~ FOR THE YEAR ENDED MARCH 31, 2015

~

~Mi%:tf(5.5l*Z.;!l'l~ .&_:IJ!,~~il~

~·J!.~im.lt*Z.'™~ .&:IJ!.:\i'i~il~

12. t,][1,tffij!'ti;'j1p {'§:),;ip;f§ ;.,

11. Cash and cash equivalents (Continued)

Current accounts

Savings accounts

Cash at banks

Cash in hand

Cash and cash equivalents in the statement of financial position

Cash and cash equivalents in the

statement of cash flows

12. Operating lease arrangements As lessee

2015 2014 HK$ HK$

1,602,385.60 1,583,420.13 13,784,403.50 16,303,508.67

...... 15,386,789.10_ .. 17,886,928.80 ...................................... 15,498,484.76 17,986,924.42

27,290.80 29,904.70

15,525,775.56 18,016,829.12

15,525,775.56 18,016,829.12 ·

~~~a , 2!S:l!WaiHt1cl!!::r: oJ JiU,i!JfJi< ~ffl~lftffij!tl * .&. ~!~~l'il~Z.*:51<::llll:{tl; f.!l./,tcJ{,t,l<,!:Z.:il'i::filfrDT :

At the end of the reporting period, the Alliance had commitments for future minimum lease payments for rented premises and computer networks under non-cancellable operating leases which fall due as follows:

-e¥i*J ~='¥~~E.'¥('Elt\5J§f/'§]'l\j~)

E.'¥ftt

Within one year In the second to fifth year

inclusive After five years

13. Financial instruments

2015 HK$

3,800,351.81

1,520,800.00

5,321,151.81

2014 HK$

3,659,756.00

2,079,431.81

5,739,187.81

13. :si'ili!RI~ :,js:Jll~l',ll~!j@j~,ti%jl:gii:5tffi The Alliance has classified its financial assets in the following categories:

m:-'€-n:¥=§=+ ffl~lit.!et.:{t!?.tti'~ ~{t'7.)!!\14j[*1,:Jj'j,&_ffl{,t*1,:

/!!\14lcwfflJF,-t :niilxJi'l (llf itt9J

8 At March 31, 2015 Rental and sundry deposits Other receivable and prepayments Amount due from a related

party (note 9) Cash and cash

equivalents (note 11)

- 22 -

~,1il:,& J/!0'1i)::

Loans and ~lit receivables Total

HK$ HK$

1,193,454.00

666,407.70

15,525,775.56 17,385,637.26

1,193,454.00

666,407.70

15,525,775.56 17,385,637.26

(

R.1:.~~fEbiffiJjM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

Mf9§~*ilf'flff NOTESTOTHEFINANCIALSTATEMENTS

~~=~-li~=~=+-Bk~~ FOR THE YEAR ENDED MARCH 31, 2015

• 13. 1e:/i!l!I~ (00 13. Financial instruments (Continued)

:$:IW/l!il.-&;ffiMfl,Jl:ji::fr;ffi:i(OT The Alliance has classified its financial assets in the following (~JO : categories (Continued):

1&-$ gg$,-§-+ B ffl:siz:&;!!;{i!lf'P:§;: ;!!;ft!l/11\H&~J'.fl&ffitt~ !!i&~~IIW:/5,itt~(Jl/1tt9)

m:-$ :E)C:_§_+ 8 !!i-I"li'x~&!!ist•m ffii&,ltt~

m:-ll'.-P]xc:- § =+-B !!ist,:tti:.li:&!!ist•m ffii&li'):J:.li:

:zfs:JWtM-mltli fFll!!if.11&:,1;:~I~ /i]i-ii~Z..:t JJl[ JOO.~~ -ia:Jii:jj,~ ' jf,f_i!Jj,'§;:J00.~&$:19;}00.~ ( §l\l; :9Hll!OO.~ , 03JZffifU$JOO.~&,J!. ;i,;;Jii.ftfU$m~) 0 ;zfs:JWtMZ.~ ffl!:j.\~~fJ!!..:t lJ\lttlts-~ >l<ll:m:;~ itl'.ti:,t;:ti:,:rntfl,*m&~;51.z.1,g t:E::ffU~W 0

15:!,'l:Jl\U!~ :zts:JWIM* '.l't{§:!a'l:JlID.~ .:t J[?I<: §l ,J!, 1e:&>.ll.~~iJ!to/J&Hii&~~ 0 1§ ~j.\~ft?i<:§l jrl,jf,j:r.J *filillif'r!E'l~ Z.*JliW.tt:zts:~M~'.l'tMi&:wl. :t.:: 0 t~l!!ret'.iEl¥Jw~IBi:ffi: , ~~ il1f:!a'l:J!\~11W*l1HJJ12W:ttll'iiii'~ 0

j:,\';Jl:l;jffi§° ';zfs:JW/l!il.~j,Hi/g~,js:~~, MZ.w~JOO.~ESE:fr:tt!l'/iii'rl' 0

At March 31, 2014 Rental and sundry deposits Other receivable and prepayment Amount due from a related

party (note 9) Cash and cash

equivalents (note 11)

1,157,008.00 410,990.00

1,200,000.00

18,016,829.12 20,784,827.12

1,157,008.00 410,990.00

1,200,000.00

18,016,829.12 20,784,827.12

The Alliance has classified its financial liabilities in the following categories:

At March 31, 2015 Accounts payable and accruals Receipts in advance

At March 31, 2014 Accounts payable and accruals Receipts in advance

W-ffl~)j)G:,j;:Jttft 1¥JM~~1Jt

Financial liabilities il-*t at amortised cost Total

HK$ HK$

504,800.00 24,900.00

529,700.00

195,100.00 12,506,800.00

12,701,900.00

504,800.00 24,900.00

529,700.00

195,100.00 12,506,800.00

12,701,900.00

The Alliance is exposed to credit risk, liquidity risk and market risk (including foreign currency risk, fair value interest rate risk and cash flow interest rate risk) arising in the normal course of its operation and financial instruments. The Alliance's risk management objectives, policies and processes mainly focus on minimizing the potential adverse effects of these risks on its financial performance and position by closely monitoring the individual exposure.

Credit risk

The credit risk of the Alliance mainly arises from cash and cash equivalents and account receivables. Credit risk arises from the possibility that the counterparty to a transaction.is unwilling or unable to fulfill its obligation with the results that the Alliance thereby suffers financial loss. The exposures to these credit risks are closely monitored on an ongoing basis by established credit policies. In this regards, the conunittee members of the Alliance consider that the Alliance's credit risk is adequately monitored.

-23 -

c-

(_

~1::lmi'l!iffii~lllP.i'.!l. DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

lf.tf%iffi~IWtt NOTES TO THE FINANCIAL STATEMENTS ~~=~-n~=~=+-BK~~ FOR THE YEAR ENDED MARCH 31, 2015

13. ~liil!I.~(~ ia:ll:ll,~( &ill ffl.~&ffl.s'E~fl('lo/JZ {"io~ll, ~'llfl& • Jzs11.(;~::IJ~~iaW Blfrf Zi~fi •

rn~&:itft!lnt~ ;J'!;iiflff!~i&r'WJl&l'JH1;(tl: !!':t&mml!lil:1:fiv .. wrta9) mii:E{!ll.'s'ri~fJ!*1<ma11i

~=~-Ei}l'-=~=+-s • ;J;:l!JilM:J:rni.';lef~cpZia~

00.li&E.~WJZff!!,l/!l:Jf;I: , ff!!, ~5<~Jf;I:& ;I,; iifll!!\ l/!l: Jf;l:ZJ!R ml ffi. i-l:~:zfs:l!lilMlttMJ'%fi m mi rnlllfZJ&:kisjl:&J."' •

ifri!liJJJ!c~!i\~ 2fs:l!lliMZmE!liJJj,'s'E&J.i!ft.'l=.~ *1srntl'%~/l · :zfs:ttMff\Jil;i( ffi':\l!:;EWJ ~~l'JJJI~ ;!O l'Jj)tll ff\) m!l/J~;'Eff\Jm>Jc , utf!F:';lef3'E JEf(;Jffl.~P,.(ili/iJEial!/l&if&ft: J!ll ft;J~'s'rirl3.K •

m,-~-u-¥= 1-1 =+-B !!':f1Jf;l:%'iiff!itllU!l

13. Financial instruments (Continued) Credit risk (Continued)

The credit risk on cash and cash equivalents is limited because the coUllterparties are banks with good reputation.

Summary guantitative data: 2015 2014 . HK$ HK$

Rental and sundry deposits 1,193,454.00 1,157,008.00 Other receivable and prepayments 666,407.70 410,990.00 Amount due from a related party (note 9) 1,200,000.00 Cash and cash equivalents (note 11) 15,525,775.56 18,016,829.12

17,385,637.26 20,784,827.12

At March 31, 2015, the Alliance has no concentration of risk and overdue receivables and the maximum exposure to credit risk is represented by the carrying amount of each financial asset.

Liquidity risk

The Alliance is exposed to liquidity risk on financial liabilities. The Alliance's policy is to regularly monitor current and expected liquidity requirements to ensure that it maintains sufficient reserves of cash to meet its liquidity requirements in the short and longer term.

Summary quantitative data:

At March 31, 2015 Accounts payable

and accruals

Not later than 1 year

HK$

504,800.00 504,800.00

- 24 -

~JM!-~ {!;['.'.),>~

n: ~r-rnmM Later than 1 year and

not later than 5 years HK$

mJMin:~ !MM J!R ilii ffi.

More than Carrying 5 years amount HK$ HK$

504,800.00

504,800.00

-i.Jij~jj

(_

~.:t~R!iliib~mM DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~ffl*l!fs.titt NOTES TO THE FINANCIAL STATEMENTS ~~=~-li~~~~+-B~~~ FOR THE YEAR ENDED MARCH 31, 2015

13. :&iUJ!c (00 mtffliit:&/i\11&( ml) n-:!t!J;l:ji/il;jlll[:

m:-~-11!14= § =+-El /if.f,),i;l.:)Jj,&R!HtJl'J'll

$:f1£!/i\~ f!f$9//f.Jt

13. Financial instruments (Continued) Liquidity risk (Continued)

Summary quantitative data:

At March 31, 2014

Accounts payable

and accruals

Market risk Interest rate risk

Not later than 1 year

HK$

195,100.00

195,100.00

mm-~ ill:'.!>~ i!/:!J/"1nfp

1i~f<!:¥TJJtll ¥rrm Later than 1 year and

not later than More than 5 years 5 years

HK$ HK$

*iliiffi

Carrying amount

HK$

195,100.00

195,100.00

:$:~U.!J:5j_ "ff 0-'l'ffi ;fU$ /i\ll,i • :,js:JF,µM_,J:~'!l!,;& ;J'it:!i!;;fU$mfh:.:t: ¥*El i&1'jff'if,I.:.

The Alliance has no exposure on fair value interest rate risk. The Alliance has exposure on cash flow interest rate risk which is mainly arising from its deposits with banks.

:z!s:JF,i.OO.Z.i&:f-l'i~i*1'¥fl' Wx:f1i~!!hfU$it,'a!. • PJ lii>:1:Jr.lG:'.!>£-Sf mfU $Ii\ ~-

>"r-.~ fri:/il~Jii)i j[<-fj~~

~~t,'"1,Ji'~

It is the Alliance's policy to keep its deposits at floating rate of interest so as to minimize the fair value interest rate risk.

Sum.mill}'. quantitative data: 2015 2014 HK$ HK$

Floating-rate financial assets

Cash at banks 13,784,403.50 16,303,508.67

Net interest-bearing assets 13,784,403.50 16,303,508.67

- 25-

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~_j::~~iii'b il!i~M DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

Mi%¥R~Jlftlll: NOTES TO THE FINANCIAL STATEMENTS

~~=~-E$=~=+-BR$~ FOR THE YEAR ENDED MARCH 31, 2015

13. ~ilil!IJl. (~) i'p:f,\'aj.\~( i,f!)

Jl/$lff//fi} ( #.H) Iii!: 1,,Hf:fr:ffi tt=~-1i$.=.~=+-B • frD ;fU$lf,Ult.tJJii/T~-a&r 'mi /'Ji' 1'f ;!tftl7, ,F 5E lzsl ~ f,JE'fcFF ~ • ,is: i& J'o'l.Z1.ilffi &,!i!i'1zwr~ :tm 1 ~:J,'ii '/11'13, 7847i:: •

tt=~-IZ!l$=~=+-B•fr0 ;f!J$~!llt.tw::J1T~-amr · mi p)T 1'f ;!t{il,,f 5E lzsl ~ f,!£ ~ ,f ~ ' * l& J'o'l.Z.1.ilffi Ei.£',EW/"t!i !JO/ ~:Vii '/11'16,303jc •

_.t J!!i: Ii/Ji: l@i N :5t 1fi 7:7 ffiHll: ~ fU $ ~ 1/JE:lt~a~ B ~~&EH A~ B 'Ff tE Z 1§ ~ru ',E ~t I J'l. Z ofU $ l\, fix • fU$~11Jf~*~~Jliiit,t~fU $:/t1t~T-00$Nta~BKW! FJJil-~PJlili~tlJZ tliH •

5Hfi 7:71'lt!Jt= ~ - IZ!l $ffl fiiJ i!i£ ~ lifi.

YI /llllff//fj} ,t;:IW,l l'o'l.t!iii::kll'~ :5t :'.><'. Jt/, ~ P) ;tlijcf,a ~ • :ifs:~~~Mi.t,i?i:J¥:Z:7ri2!.ilil~~ {~.

03¥ffi 2fi: ~It l'Jl. ~~Mi~~ Mi% ffi *11i: It Ml~+?1Ul!RZMJ"%~ii'&~ii%~ flZRlffiiffiW;lt03¥{.11l.fflos •

13. Financial instruments (Continued) Market risk (Continued) Interest rate risk (Continued)

Sensitivity analysis At March 31, 2015, if interest rates had been 100 basis points higher/lower, with all other variables held constant, the Alliance's surplus for the year and general fund would have been HK$13,784 higher/lower.

At March 31, 2014, if interest rates had been 100 basis points higher/lower, with all other variables held constant, the Alliance's surplus for the year and general fund would have been HK$16,303 higher/lower.

The sensitivity analysis has been prepared with the assumption that the change in interest rates had occurred at the end of the reporting date and had been applied to the exposure to interest rate risk for the relevant financial instruments in existence at that date. The changes in interest rate represents management's assessment of a reasonably possible change in interest rates at that date over the period until the next reporting date.

The analysis is prepared on the same basis for 2014.

Foreign currency risk The Alliance has no significant exposure to foreign currency risk as substantially all of the Alliance's transactions are denominated in Hong Kong dollars .

Fair value The co=ittee members of the Alliance consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the financial statements approximate their fair values.

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~::l:.~~jg~JWtl'Jl. DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~~*i!f1~ NOTES TO THE FINANCIAL STATEMENTS ~~=~-li~~~~+-BK~/lt FOR THE YEAR ENDED MARCH 31, 2015

14. Jlt:$:~J:!I! :$:JfW M;lik-Fell 59. 1f Jlli:$:ft,J!JlHJi?; 1"fi!N0 'a'] 0 :$:!W~l'Jljj':$:*;ffit E3 tJ/!!i!i!,,& 0 :$:JF#MZ.Ji:$:'ffl'J:!I! § ft,J ;lik~ ~t:fii :$:JfW M fIB lit!* !ii[ 'If , llfz~ff~m#\::it!i&i*lllirff ~fU~ 0

irnm *:¥ !l!:WJ: :¥ !lr*~w Mw ;fs:ff!.li&ffi:;lft#i\~l/J O :$:JfWM ,F :\!i: ff for :Pf- ll'B 1l' 2fs: m. 5E PIT m. ,~ 0

15. rnl!lffilillffi,& J'!i: JI.\'{ i!i' illi ( 0 'B'J ~~ti} [!(1 :'& 4 ~ 2 ll'B ft,J ;\ll.5E mi 1\UI ft,J :$: :¥ !lr rnl!l:ffilil\fifj;:&r,;J:J'i::!<OT:

rnl!l:gilil\fifj;: rnl!I: giji r,;i :it

16. ~mlt:x~ Jl:I:;:¥ !lt Z.!WIMfO 1f llffl % :;/Jft1:. i'.t,Jm:kllfflW:;/Jx~~?U:!<OT :

f.!l.:llll Ill :it f-tr Right Contacts Enterprises Limited *

* 4li:llEl3!11::;/J!J%YE 0

:$:~WM~ ffi;l.Z.l\lifsiJ!'lil7:i1~~ ill'illi (0EJf,'fi~O ~383(1)/,'/i fl'lil:!<OT:

~ffi;l_JI' ~{ttii'ifU ;l,;fi!!.l\lifj;:

!A!ilffl1ll :;/Jft,J ~~~f ·f:ii~trs-J/U,t 3%¥i<:'&!lf1/tt9 °

14. Capital management· The Alliance is a company limited by guarantee and has no share capital. The Alliance considers its capital to be the total funds. The Alliance's primary objectives when managing its capital is to safeguard the Alliance's ability to continue as a going concern, so that it can continue to provide support and protect the interest of its members.

There has been no change in the Alliance's capital management practices as compared to prior year and the Alliance is not subject to any externally imposed capital requirements.

15. Auditor's remuneration Auditor's remuneration and expenses for the year disclosed pursuant to Part 2 of Schedule 4 of the Hong Kong Companies Ordiance are as follow:

Auditor1s remuneration Auditor's expenses

16. Related party transactions

2015 HK$ 30,000.00

30,000.00

2014 HK$ 29,000.00

29 000.00

Significant related party transactions which took place during the year between the Alliance and related parties are set out below:

Rental expenses paid to Right Contacts

Enterprises Limited *

* in which Wong Kine Yuen is the shareholder.

* The charge was agreed by both parties.

2015 HK$

60,000.00

2014 HK$

60,000.00

Committee members' remuneration disclosed pursuant to section 383(1) of the Hong Kong Companies Ordinance is as follow:

Fees Retirement benefits Other emoluments

2015 HK$

2014 HK$

Details of the balance with a related party are set out in note 9 to these financial state1nents. f; J "S '1

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,, ',,

~.1'.:ltit!llM!!i~llil. DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~ffl*llf1li:l: NOTES TO THE FINANCIAL STATEMENTS ~~=~-n~=~-=+-BK~~ FOR THE YEAR ENDED MARCH 31, 2015

11. B~!Ni ffli@fid*~i&~ffil'IT »JI~ITTW!t!lM~ffl~zl!ll'!U :zf>:~M,lMiltr~-'F-l*~f'Jt,Z"""Ft:,~n:li:tlfi@j'l;j*§:.3&:il<Jll\'r~llU' ~irr&~ff. 7.fs:IID/M~~ffl,!Bf 'f!lH.f'JJ!t~~llU' ~n&~ff~~W7.fs:~MZ~~*~&MM~~m~m*~W·

~!ttMMffl15-~llUffi95/!! ~!ttMMffl15-~llUffiI55/!! ~!ttMMffl'e!i~llU C ~IT7.fs: l ~!ttMMffl'e!i~llU C Mi;IT7.fs: l ~!ttMMffl'e!i~llU C Mi;IT7.fs: l ~!ttMMffl'e!i~llUffiI05/!!&

WmMMffl'e!i~llUffi285/!! C {~irr7.fs: l ~!ttMMffl'e!i~llUffiI05/!! •

WmMMffl'e!i~llUffiI25llt& ~m~tt~llUffi28llmC itirr7.fs:l

~mM~flil'e!i~llUffiI I!JtliC i~IT7.fs:l ~m~lt~flil'e!i~llUffiI4llmCi1IT7.fs:) ~Jtt@tt~llUffiIMC ~irr,fs:) ~Jtt~tti:illllUffiI61/»\;&

Wm~tti:illllUffi385lft C ®:irr7.fs: l ~m~tt~llUffiI65lft&

--- Wm~tti:illllUffi4Ii/»\;(it:tin7.fs:l ~Jtt~tti:illllUffiI9!Jt/i C {,i,irr7.fs:) 'ili'*~tt2'JlUffi27~ C {,i,irr7.fs:)

M~IJ,l,5

,s: !5-rs-\\<Jt&~· WmlltMffl'e!i~llu=~-~~~=$-=~~JtllZ~ffi'&i!t2

~mllt~ffl'e!i~llU=~--~~=~--=~~JtllZ&i!t1

~*M~ffl15-~llu=~-=~~=~-[[J~~MZ&nt' &~~~~~~0~~-rs-~~*~~~lli~~&A1

I~~ttlU3

iii >l "SJ :flH?: Z :tff i'i R.JB@)lJ Jj;t; 3

~'lgl/1'!:filfl!& § 3

Ill*: ~ZiS*fA!lo/13

JE'.mlt!iiflittlU : iii~ J:!lii!tt1

~:rr~ltMffl~Z;/l,!:/;l:;t;3

1 ~=~-rn~t~-B*Z~OO~Z~~M~~~-2~-=~-rn~t~-B*Z~OO~Z~~Mr.i~::& 'tft'fifl!Nf?IJ-rll*:>'r 0

'~-=~-~~-~-B*Z~OO~Z~~M~~l&· 4 ~-=~-t"f'.-~-B*Z1iOO*aZ<!'-~Wlrell~~ · 5 ~-=~-/\'9'--~-B*Z~OO~Z<!'-~Mrell~l& •

17. Issued but not yet effective of New and Revised Hong Kong Financial Reporting Standards The Alliance has not early applied the following new and revised standards, amendments and interpretations that have been issued but are not yet effective. The committee members of the Alliance anticipate that the application of these new and revised standards, amendments and interpretations will have no. material impact on the Alliance's results of operations and financial position.

HKFRS 9

HKFRS15

Amendments to HKFRSs

Amendments to HKFRSs

Amendments to HKFRSs

Financial instruments5

Revenue from contracts with customers4

Annual hnprovements to HKFRSs 2010-2012 Cycle2

Annual hnprovements to HKFRSs 2011-2013 Cycle1

Annual hnprovements to HKFRSs 2012-2014 Cycle3

- 28 - - -lj i_j ~:5 .

C . -'

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~±~i:f!fj,'M!t~.PJJ: DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONG

M~flf~l!#tt NOTES TO THE FINANCIAL STATEMENTS ~£=~-E~~~~+-BK~N FOR THE YEAR ENDED MARCH 31, 2015

17. Issued but not yet effective of New and Revised Hong Kong Financial Reporting Standards (Continued) Amendments to HKFRS I 0, Sale or contribution of assets between an investor and

. • • • 3 and HKAS 28 its associate or Jomt venture

Amendments to HKFRS I 0, Investment Entities: Apply the consolidation exception3

HKFRS 12 and HKAS 28

Amendments to HKFRS 11

Amendments to HKFRS 14

Amendments to HKAS I

Amendments to HKAS 16 and

HKAS 38

Amendments to HKAS 16 and

HKAS41

Amendments to HKAS 19

Amendments to HKAS 27

Accounting for acquisitions of interests in joint operations3

Regulatory deferral account3

Disclosure initiative3

Clarification of acceptable methods of depreciation and

amortisation3

Agriculture: Bearer plants3

Defined benefit plan: Employee contributions'

Equity method in separate fmancial statements3

1 Effective for annual periods beginning on or after July 1, 2014. 2 Effective for annual periods beginning on or after July I, 2014, with limited exceptions. 3 Effective for annual periods beginning on or after January 1, 2016. 4 Effective for annual periods beginning on or after January 1, 2017. 5 Effective for annual periods beginning on or after January 1, 2018.

18. M~flf~:L:Jtl)l 9":'P.-~ J'htm-=~-n ,qc.+-~ +-B :Jtt>l.&~tlfU~~8Jl:£ ~29~:LM~¥1ll'R 0

18. Approval of financial statements The fmancial statements on pages 8 to 29 were approved and authorised for issue by the Central Committee of the Alliance on November 11, 2015.

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