This subject covers basic understanding of accounting and finance concepts. The subject aims to equip students with basic knowledge and skills to: read, understand and interpret basi
This subject covers basic understanding of
accounting and finance concepts.
The subject aims to equip students with basic
knowledge and skills to:
• read, understand and interpret basic
financial statements.
• explain the main sources and allocation of
funds for a business enterprise.
PRINCIPLES OF ACCOUNTING & FINANCE
2) Assignment Submission
· All answers should be typewritten using Arial size 12 in the solution templates provided.
3) Plagiarism is an academic offence and disciplinary action will be taken for plagiarism.
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FULL NAME |
DIPLOMA / GROUP (E.g. DPSS 1) |
Please key in your admin number in the table
|
Admin No. |
||||||||
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1st |
2nd |
3rd |
4th |
5th |
6th |
7th |
Alpha |
|
|
Marks |
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Question 1 |
20 |
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Question 2 |
20 |
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Question 3 |
30 |
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Question 4 |
30 |
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TOTAL |
100 |
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Full Name of Student |
Admin No. |
Date |
Question 1 (20 marks)
Fausi started FitnessPro Pte Ltd on 1 July 2021. The company sells a wide range of health equipment and conducts personal training sessions. The retail shop is located at Tampines and the office is at Ubi.
Fausi prepared the following Profit and Loss Statement and Balance Sheet for the company after 12 months of operations and thinks that there are errors in the statements. He needs your assistance to check and prepare the corrected classified Profit and Loss Statement and Balance Sheet.
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Fausi |
|||
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Profit and Loss Statement as at 30 June 2022 |
|||
|
$ |
$ |
$ |
|
|
Sales Revenue |
120,000 |
||
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Accrued Revenue |
4,000 |
||
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Personal Training Fees Revenue |
35,000 |
||
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Gross Profit |
159,000 |
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Less: Operating Expense |
|||
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Selling Expense |
|||
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Salaries Expense (refer to Note 1) |
40,000 |
||
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Accrued Expense |
2,000 |
42,000 |
|
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General and Administrative Expense |
|||
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Interest Expense |
3,700 |
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Rent Expense (refer to Note 2) |
36,000 |
||
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Shares in Singtel |
10,000 |
||
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Delivery Van Expense |
4,000 |
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Depreciation – Delivery Van |
3,000 |
56,700 |
|
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Financial Expense |
|||
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Prepaid Expense |
3,100 |
||
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Bank Charges |
400 |
||
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Telephone Expense |
2,000 |
5,500 |
104,200 |
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Net Profit |
54,800 |
|
Fausi |
|||
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Balance Sheet for the year ended 30 June 2022 |
|||
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Equity |
$ |
$ |
$ |
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Capital |
55,000 |
||
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Add: Net Profit |
54,800 |
||
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Less: Drawings |
6,000 |
||
|
103,800 |
|||
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Represented by: |
|||
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Current Assets |
|||
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Cash at Bank |
17,600 |
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Inventories |
38,000 |
||
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Accounts Payable |
12,350 |
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Delivery Van |
30,000 |
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Add: Accumulated Depreciation – Delivery Van |
9,000 |
39,000 |
|
|
106,950 |
|||
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Less: Current Liabilities |
|||
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Loan from BOA (due 1 Jul 2024) |
40,000 |
||
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Accounts Receivable |
21,050 |
61,050 |
|
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Working Capital |
45,900 |
||
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Non-Current Assets |
|||
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Cost of Goods Sold |
60,500 |
||
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Unearned Revenue |
6,000 |
66,500 |
|
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Total Assets |
112,400 |
Additional Information
1) A0% (A is the 4th digit of your admin number) of the salaries are for salesmen and the remaining are for office staff.
e.g. if your admin number is 2112345J, then the figure is 20%
if your admin number is 2103202J, then the figure is 30%
if the 4th digit of your admin number is 0 (e.g. 2100002J), then use 40%
2) Rent expense of $B,000 (B is the 5th digit of your admin number) is used for the shop and the remaining is for the office.
e.g. if your admin number is 2123456J, then the figure is $4,000
if your admin number is 2123567J, then the figure is $5,000
if the 5th digit of your admin number is 0 (e.g. 2100002J), then use $5,000.
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Profit and Loss Statement |
|||
|
$ |
$ |
$ |
|
(9 marks)
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Balance Sheet |
|||
|
$ |
$ |
$ |
|
(11 marks)
Question 2 (20 marks)
Read the article (https://www.businesstimes.com.sg/companies-markets/shares-of-econ-healthcare-close-36-higher-than-its-ipo-price-on-catalist-relisting) on Econ Healthcare (Asia) Limited’s initial public offering (IPO) and answer questions (i) to (v):
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i) Which stock exchange is the company listed? Mainboard or Catalist? (2m) |
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ii) When were the company’s shares first publicly traded on the stock exchange? (1m) |
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iii) What was the IPO issue price? (1m) |
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iv) How much net proceeds was raised from this IPO? (1m) |
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v) How did the company plan to use the proceeds? (1m) |
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vi) Assuming that the company is planning to raise S$8 million for future expansion, propose a suitable source of financing to management and give reasons. You are to quote the source of information (e.g. printscreen from website, annual report, etc.) (14 marks) |
Question 3 (30 marks)
Kimly Limited and Sheng Siong Group Ltd are public companies limited by shares.
About Kimly Limited
Kimly Limited is one of the largest traditional coffee shop operators in Singapore. The Group operates and manages an extensive network of coffee shops, food courts and industrial canteens.
About Sheng Siong Group Ltd
Sheng Siong Group Ltd is principally engaged in operating the Sheng Siong groceries chain. Its stores are primarily located in retail locations in the heartlands of Singapore.
Note
· Students with an even register number will answer questions related to Kimly Limited.
· Students with an odd register number will answer questions related to Sheng Siong Group Ltd.
· Students who do not do the assigned company will be heavily penalised.
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Company Assigned |
a) Refer to the company’s financial statements in the annual report for 2021 and compute the following financial ratios. Show your workings and round your figures to 2 decimal places.
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Ratio |
2021 |
2020 |
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Net Profit Margin (%) (use Profit for the Year) |
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Current Ratio (use Group figures) |
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Debt Ratio (%) (use Group figures) |
(18 marks)
b) Comment on the ratios calculated in part (a).
(12 marks)
Question 4 (30 marks)
Armour Security Pte Ltd sells home security systems. As at 1 October 2022, the cash at bank balance is $210,000. The company’s policy is to maintain a minimum cash balance of $160,000.
The company is developing a cash budget for October, November and December 2022, and the following information was gathered:
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Cash Receipts |
|
|
1 |
Sales revenue for August and September 2022 are $200,000 and $180,000 respectively. The forecasted sales revenue for October, November and December 2022 are $220,000, $250,000 and $280,000 respectively. Historically, 70% of the firm’s sales are in cash, 20% are collected in the next month, and the remaining 10% are collected in the second month following the sale. |
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2 |
Monthly commission income is received from the wholesaler based on C% of the current month’s sale (C is the 6th digit of your admin number). (Use 6% if the 6th digit of your admin number is 0) |
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3 |
Dividend income of $8,000 will be received in November 2022. |
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Cash Disbursements |
|
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4 |
The expected purchases are $140,000, $160,000 and $170,000 for the months of October, November and December 2022 respectively. The company pays all its purchases in the month of purchase. |
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5 |
Salaries paid monthly is $D0,000. (D is the 7th digit of your admin number) (Use $70,000 if the 7th digit of your admin number is 0) |
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6 |
Rental of $9,000 is paid monthly. |
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7 |
Payment for an overseas investment of $300,000 and $400,000 are expected to be made in November and December 2022 respectively. |
Use the following templates to prepare the cash budget for October, November and December 2022:
a) Projected Cash Receipts
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Receipts |
Aug $ |
Sep $ |
Oct $ |
Nov $ |
Dec $ |
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Sales |
200,000 |
180,000 |
220,000 |
250,000 |
280,000 |
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Cash sales (70%) |
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Lag 1 month (20%) |
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Lag 2 months (10%) |
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Commission income (C%) |
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Dividend income |
|||||
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Total Cash Receipts |
(13 marks)
b) Projected Cash Disbursements
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Disbursements |
Oct $ |
Nov $ |
Dec $ |
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Cash purchase |
|||
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Salaries ($D0,000) |
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Rental |
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Investment |
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Total Cash Disbursements |
(8 marks)
c) Cash Budget
|
Oct $ |
Nov $ |
Dec $ |
|
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Total cash receipts |
|||
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Less: Total cash disbursements |
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Net cash flow |
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Add: Beginning cash |
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Ending cash |
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Minimum cash |
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Required Financing |
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Excess Cash Balance |
(9 marks)
,
01A N N U A L R E P O R T 2021
A N N U A L R E P O R T 2 0 2 1
K I M LY L I M I T E D02
Content
02 CORPORATE PROFILE
03 OUR BUSINESSES
04 OUR NETWORK
05 MILESTONES
07 MESSAGE TO SHAREHOLDERS
17 BOARD OF DIRECTORS
19 KEY MANAGEMENT
22 FINANCIAL HIGHLIGHTS
24 FINANCIAL REVIEW
27 CORPORATE INFORMATION
This annual report has been reviewed by the Company’s Sponsor,
PrimePartners Corporate Finance Pte. Ltd. (the “Sponsor”). It has not
been examined or approved by the Singapore Exchange Securities Trading
Limited (the "Exchange") and the Exchange assumes no responsibility for the
contents of this document, including the correctness of any of the statements
or opinions made or reports contained in this document.
The contact person for the Sponsor is Mr. Joseph Au, 16 Collyer Quay, #10-00
Income at Raffles, Singapore 049318, [email protected] sg.
Corporate Profile
Kimly Limited (the “Company” or “Kimly”, and together with
its subsidiaries, the “Group”) is one of the largest traditional
coffeeshop operators in Singapore with more than 30 years
of experience. The Group operates and manages an extensive
network of 85 food outlets under “Kimly”, “foodclique” and a third
party brand, 139 food stalls comprising Mixed Vegetable Rice,
Teochew Porridge, Dim Sum, Seafood “Zi Char”, Kanaaji Japanese
Tonkatsu, two Tonkichi restaurants and seven Rive Gauche
confectionery shops.
While keeping to the heritage of a traditional coffeeshop that
provides affordable food for all, Kimly is also constantly
modernising to keep up with the times and changing consumer
trends, through digitalisation, strengthening the operations and
upscaling capabilities. All its food retail products are currently
available for online ordering through Deliveroo, Foodpanda,
GrabFood and Oddle.
The Group continues to proactively extend its footprints and
revenue streams through suitable merger and acquisition
(“M & A”) projects.
The Company was successfully listed on Catalist of the SGX-ST
on 20 March 2017.
K I M LY L I M I T E D02
03A N N U A L R E P O R T 2021
OUTLET MANAGEMENT DIVISION
Under our Outlet Management Division, the Group operates
and manages 67 coffeeshops, and seven industrial canteens,
and two food courts under the “foodclique” brand.
With our proven and established track record as a food outlet
operator, we have been able to attract quality and anchor
tenants with whom we have forged strong longstanding
relationships. As at the date of this report, Kimly maintained
a healthy occupancy rate of 98% for a total of 680 stalls within
our managed food outlets.
FOOD RETAIL DIVISION
Catering to a broad and varied customer base and supported by
our Central Kitchen, the Group’s 139 food stalls, two Tonkichi
restaurants and seven Rive Gauche confectionery shops under
our Food Retail portfolio comprises:
Our Central Kitchens supply sauces, marinades, pastries
and semifinished food products to our Mixed Vegetable
Rice, Seafood “Zi Char”, Dim Sum stalls and Rive Gauche
confectionary shops.
OUTLET INVESTMENT BUSINESS DIVISION
Outlet Investment Business Division assists the group in
securing sustainable and stable rights of use to strategic
business locations, through investments into properties
(freehold and leasehold), at the same time allows the group to
benefit from rental income and/or capital growth. The Group
has acquired five coffeeshops, three industrial canteen units
and a restaurant unit during FY2020.
Corporate Profile
Our Businesses
85 FOOD OUTLETS
148 FOODSTALLS / RESTAURANTS / PATISSERIE
55 OUT OF 85 FOOD OUTLETS ARE OPEN 24 HOURS
K I M LY L I M I T E D04
Our Network
* Picture for illustration purposes only.
KIMLY GROUP OUTLETS
TENDERFRESH OUTLETS
K I M LY L I M I T E D04
The Group has an extensive network of 85 food outlets located across the heartlands of Singapore, with its food stalls/ restaurants/patisseries serving a variety of dishes catering to consumers’ diverse preferences. 55 out of 85 food outlets are open 24 hours.
60 MIXED VEGETABLE RICE / TEOCHEW PORRIDGE
49 DIM SUM
2 TONKICHI RESTAURANTS
28 SEAFOOD “ZI CHAR”
7 RIVE GAUCHE CONFECTIONERY SHOPS
2 KANAAJI KATSU JAPANESE FOOD STALLS
05A N N U A L R E P O R T 2021
Milestones 2017 2018 2019 2020 2021
1 JUL – Acquisition of Tonkichi & Rive Gauche Patisserie
2 JUL – Commenced operations with the first digitalized tray return & rewards system at Bukit Batok 292 Coffeeshop
1 MAY – Launch of beverage line “HOLIM”
1 JUL – Successfully tendered for 3 HDB coffeeshops under HDB’s Price- Quality-Method (“PQM”)
1 AUG – Successfully launched the iconic Kimly Bak Kwa Bao
3 NOV – Entered into a business agreement to operate and manage the first halal coffeeshop, Kedai Kopi
1 NOV – Successfully acquired our first coffeeshop property, Teck Whye 143 coffeeshop
21 JAN – Entered into a joint venture agreement to operate and manage Lorong Ah Soo 134 Coffeeshop
1 APR – Acquisition of 60% of the shares in Klovex Holdings Pte. Ltd.
29 APR – Entered into a joint venture agreement to operate and manage Bukit Batok 233 Coffeeshop and Serangoon 153A Coffeeshop
1 JUL – Opened second Kedai Kopi at 12 Haig Road
15 MAY – 122 Food stalls onboard on third party food delivery platform
3 JUN – Completion of acquisition of 6 food outlet properties
26 JUN – Successfully acquired 25% partnership interest in North View Investments LLP
30 JUN – Acquisition of Ang Mo Kio 347 Coffeeshop
26 AUG – Acquisition of Clementi 380 Coffeeshop
9 SEP – Entered into joint venture agreements to manage and operate Bukit Batok 376 Coffeeshop and Upper Aljunied 1 Coffeeshop
29 SEP – Entered into a joint venture agreement to manage and operate Choa Chu Kang 429A Coffeeshop
1 OCT – Completion of acquisition of 75% of the stake in Tenderfresh Business
20 MAR – Successfully listed on the Catalist Board of the SGX-ST
3 JUL – Acquisition of operating leases & business operations of Bedok 631 coffeeshop, 21 Woodlands Close Industrial Canteen
30 SEP – Completed HQ & central kitchen annex block’s expansion project
K I M LY L I M I T E D06
Kedai Kopi at 12 Haig Road
Adding Tenderfresh brands into the food mix for our food retail division
Expansion of Footprints
Accelerating Digitalisation
Developed in-house proprietory web application to facilitate the submission and
compilation of the weekly Fast and Easy Testing (“FET”)
NETs Unified Payment terminal deployed across
all food outlets
* Photos taken before Covid-19 restrictions
07A N N U A L R E P O R T 2021
Message to Shareholders
One of our major acquisitions in 2021 is our completion of the acquisition of a 75% stake in Tenderfresh Business for S$54 million on 1 October 2021. In 2020, we entered into a business agreement (51% stake by Kimly) with Tenderfresh Fried & BBQ Chicken Pte Ltd to operate a Halal themed coffeeshop, Kedai Kopi, at Block 380 Clementi Avenue 5.
Dear Shareholders,
On behalf of the Board of Directors (the “Board”), I am pleased to share our results for the financial year ended 30 September 2021 (“FY2021”). I am delighted to update that we have achieved healthy growth despite the headwinds and challenges brought by the pandemic related restrictions and challenges. We have also expanded our operations through organic growth, acquisitions and joint ventures during FY2021. I am proud to share that the Group has further built upon its strong foundation to grow further in our Food Retail division.
The continuation of the pandemic coupled with measures for endemic living continued to pose certain challenges for the overall food and beverage (“F&B”) industry. However,
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