Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698849563510.pdf (Singapore)
ANNUAL REPORT 2017/2018 CONTENTS PUB, Singapore’s National Water Agency Annual Report for the year ended 31 March 2018 01 Mission & Vision 07 Key Highlights and Achievements 03 Organisational Structure 05 Board of Directors 19 Outlook for the Next Fiscal Year In the opinion of the directors, the annual report of the PUB, Singapore’s National Water Agency is drawn up so as to present fairly the state of affairs of the PUB, Singapore’s National Water Agency as at 31 March 2018.
On behalf of the Board of Directors, Chiang Chie Foo Chairman Ng Joo Hee OUR MISSION adequate & sustainable supply of water.
OUR VISION Water for All: Conserve, Value, Enjoy.
MAJOR SHAREHOLDER OF SUBSIDIARY COMPANIES S/N NAME OF SUBSIDIARY COMPANY % SHAREHOLDINGS IN COMPANY 1 2 PUB Consultants Private Limited 100% Singapore International Water Week Pte Ltd 100% owned by PUB Consultants Private Limited 1 2 ORGANISATIONAL STRUCTURE BOARD CHIANG CHIE FOO Chairman NG JOO HEE Chief Executive Internal Audit reports to the Board Enterprise Risk Management reports to the Board CHAN YOON KUM Senior Consultant TAN YOK GIN Deputy Chief Executive (Operations) RICHARD HOO Deputy Chief Executive (Policy & Development) HARRY SEAH Assistant Chief Executive (Future Systems & Technology) CATCHMENT & WATERWAYS YEO KENG SOON Director TAN NGUAN SEN POLICY & PLANNING TECHNOLOGY INDUSTRY DEVELOPMENT INTERNAL AUDIT OFFICE WILLIAM YEO Director HARRY SEAH Chief Engineering PANG CHEE MENG Director LAWRENCE FONG Head WATER SUPPLY (PLANTS) INFOTECH & DIGITAL TRANSFORMATION ENTERPRISE RISK MANAGEMENT BERNARD KOH Director MICHAEL TOH
 WATER SUPPLY (NETWORK) FINANCE RIDZUAN ISMAIL Director CHEW SIOW NEE WATER RECLAMATION (PLANTS) ORGANISATIONAL EXCELLENCE OOI KIAN ENG Director TAN CHIAN CHERN Director WATER RECLAMATION (NETWORK) MAURICE NEO Director TAN THAI PIN
 HUMAN RESOURCES ANGELA KOH Director 3P NETWORK CINDY KENG Director SINGAPORE WATER ACADEMY CHEW CHEE KEONG Director MECHANICAL, ELECTRICAL, INSTRUMENTATION, CONTROLS & AUTOMATION YAHYA ABD GHANI Director JOINT OPERATIONS PENG KAH POH Director WATER QUALITY LIM MONG HOO Director CENTRALISED SERVICES GEORGE MADHAVAN Director SPECIAL PROJECTS & PROCUREMENT YOUNG JOO CHYE Director DEEP TUNNEL SEWERAGE SYSTEM PHASE 2 YONG WEI HIN Director The key management personnel are listed in the organisation structure above.
3 4 BOARD OF DIRECTORS MR CHIANG CHIE FOO Chairman, PUB MR NG JOO HEE Chief Executive, PUB MR ABU BAKAR BIN MOHD NOR Managing Director, Keppel Singmarine Pte Ltd Keppel Offshore & Marine Limited (Gas & Specialised Vessels) MR S THIAGARAJAN General Manager, Workplace Safety and Health Council MR TAN SIONG LENG Deputy Chief Executive, URA (retired) MS JANET ANG Vice President, Industry Solutions, Systems of Engagement & Smarter Cities PROF QUEK TONG BOON Chief Executive, National Robotics Programme MS RACHEL ENG Deputy Chairman, WongPartnership LLP MR TAN WAH YEOW Board Director, KPMG Singapore (retired) MR CHAN BENG SENG Group Director, Financial Resource Management, Healthcare Finance (Subvention) and Sector Development & Commissioning Divisions Ministry of Health PROF CHAN ENG SOON Provost’s Chair Professor, Faculty of Engineering, National University of Singapore 5 6 KEY HIGHLIGHTS AND ACHIEVEMENTS
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STRENGTHENING WATER SUPPLY RECLAIMING USED WATER WATER
 PRICE REVISION BUILDING CAPABILITIES June 2017: Ground-Breaking Ceremony of Keppel Marina East Desalination Plant September 2017: Awarded project for Jurong Island Desalination Plant ENCOURAGING COMMUNITY OWNERSHIP March 2018: Garnered over 110,000 water-saving pledges from the community throughout the month of the Singapore World Water Day 2018 celebrations June 2017: Signed a Memorandum of Understanding (MOU) with the National Environment Agency (NEA) for the integration of Tuas Water Reclamation Plant
 (WRP) with the NEA’s Integrated Waste Management Facility September 2017: Commenced Construction Works for The Deep Tunnel Sewerage System (DTSS) Phase 2 Project October 2017: Commenced Phase 5 of the ongoing comprehensive asset renewal programme to rehabilitate another 200km of sewers progressively from 2017 to 2024 July 2017: Commenced First Phase of the Water Price Revision MANAGING WATER DEMAND DOMESTIC EFFORTS April 2017: rating for washing machines June 2017: Commenced the Water Closet (WC) Replacement Programme for eligible 9-litre WCs for free June 2017: Implemented trial of WaterGoWhere mobile application as part of Automated Meter Reading (AMR) for over 500 households in
 NON-DOMESTIC EFFORTS March 2018: Launched ‘Best Practice Guide in
 SINGAPORE WATER ACADEMY July 2017: Commenced key training programmes accredited under the Singapore January 2018: Rolled out PUB’s engineering competency frameworks SINGAPORE INTERNATIONAL WATER WEEK SPOTLIGHT 2017 July 2017: Signed two Memorandum of Understanding (MOU) with Saudi Arabia’s Saline Water Conversion Corporation and Western Australia’s Water Corporation July 2017: Launched the Kurita R&D Centre in Singapore April 2018: Implemented the new Licensed Plumber scheme 7 8 STRENGTHENING WATER SUPPLY
B UILD ING RE SILI ENC E FO R THE FUTURE KEPPEL MARINA EAST DESALINATION PLANT JURONG ISLAND DESALINATION PLANT The ground-breaking ceremony on 29 June 2017 signalled the start of construction works on Keppel Marina East Desalination Plant, Singapore’s fourth desalination plant.
The plant is due for completion plant that can treat both freshwater from the Marina Reservoir and seawater.
Water can be channelled from either source depending on weather conditions.
feature a green rooftop that can serve as a recreational area for the public, with a capacity for 700 people.
Built on a three-hectare plot of land, the plant will be integrated with the Eastern Coastal Park Connector Network which connects East Coast Park and Gardens by the Bay East.

PUB is developing a plant on Jurong Island, which is expected to be operational by 2020.

It will add 30 million gallons (mgd) or approximately 137,000 cubic metres of water per day to the nation’s water supply.
The project was awarded in September 2017 to Tuas Power-Singapore Technologies Marine consortium, with the water purchase agreement signing ceremony held on 6 November 2017.
9 10 RECLAIMING USED WATER
DEEP TUNNEL SEWERAGE SYSTEM (DTSS) PHASE 2 As of 2017, construction works for the DTSS Phase 2 project have commenced.
The project completes the super highway for used water management by extending the existing deep tunnels to serve the western part of Singapore.

DTSS Phase 2 consists of a conveyance system of deep tunnels and link sewers, and will be connected to the water reclamation facility within the Tuas Nexus.
Once the DTSS Phase 2 project is completed in 2025, existing water reclamation plants at Jurong and Ulu Pandan, as well as intermediate pumping stations, will be progressively phased out, releasing land for higher-value developments.
TUAS NEXUS
waste treatment processes and allows us to maximise energy and resource recovery, while maintaining a small footprint.
With an initial treatment capacity of 800,000 cubic metres per day, Tuas WRP will be the largest membrane bioreactor facility in the world.

WATER RECLAMATION: SEWER NETWORK EXPANSION AND REHABILITATION PUB must expand its sewer network to continue conveying used water from domestic and commercial users to water reclamation facilities for treatment and production into NEWater.
Currently, there are 42 sewer network expansion construction contracts ongoing, including major sewerage schemes such as the construction of sewers at North Woodlands, Lim Chu Kang and Upper Changi Road East areas.
These schemes employ the latest technologies and innovations in underground construction that allow PUB to PUB has an ongoing comprehensive asset renewal programme to inspect and rehabilitate aged and defective public sewers to restore their structural integrity and performance.
Since 1996, about 1,900km (or 54%) of public sewers has been rehabilitated under Phases 1 to 4.

Phase 5 of the programme has been rolled out in October 2017 to rehabilitate another 200km of sewers progressively from 2017 to 2024.

Since 2006, PUB has also put in place a rehabilitation programme for private sewers.

Approximately 240km of private sewers in the catchments of Marina, Punggol-Serangoon and Jurong Lake Reservoirs have since been rehabilitated.
PUB plans to extend this programme to the rest of Singapore.
11 12 WATER PRICE REVISION MANAGING WATER DEMAND
DOMESTIC EFFORTS
DOMESTIC EFFORTS
WATER PRICE REVISION In February 2017, the Government announced that water prices would be increased in two steps, on 1 July 2017 and 1 July 2018.
To help households manage the price hike, the Government provides eligible HDB households with permanent additional U-Save rebates, ranging from $40 to $120 per annum.

The price increase goes towards meeting the cost of water treatment, reservoir operations, NEWater production, desalination, used water collection and treatment, as well as the maintenance and expansion of the island-wide network of water pipelines.
MORE WATER-EFFICIENT HOME APPLIANCES when selecting home appliances, PUB introduced a 4-tick 0-tick taps and mixers were also phased out at the same time, which means only those with 1-tick or more can be sold or supplied.
From 1 October 2018, PUB will also require dishwashers for household use to be labelled with 1
Key Changes to the Water Price Revision 2 introduced for
introduced for households 3 to further discourage excessive AUTOMATED METER READING The implementation of Automated Meter Reading (AMR) will allow prompt detection of leaks.
As part of a trial for some 530 households in Punggol, customers were presented with their daily water consumption via the WaterGoWhere mobile app to challenge themselves in reducing water consumption.
Using the hourly meter readings, coupled with data analytics, leak detection has been improved.

Smaller leaks that would have escaped detection using bi-monthly meter readings can now be detected with AMR.

The trial had elicited positive responses from the customers with 50% of customers signing up for the app since its introduction in June 2017.

The participating households were able to achieve water savings of up to 5% of their monthly usage through early leak detection and water-saving behaviours.
WATER CLOSET REPLACEMENT PROGRAMME In June 2017, PUB rolled out the Water Closet (WC) Replacement Programme to help eligible households built between 1987 and 1992 replace their non water-
and lower their monthly water usage by as much as 10%.
As of end June 2018, PUB has replaced water- continue to do so over the next two years.
13 14 MANAGING WATER DEMAND NON-DOMESTIC EFFORTS
BUILDING CAPABILITIES
BETTER INDUSTRY PRACTICES With the data collected from WEMP and through consultations with the industry, PUB has
Singapore.
The ‘Best Practice Guides’ for the wafer fabrication and semiconductor sector, and the From 2019 onwards, at least one WEMP representative for each qualifying consumer will be
ENHANCED ENGINEERING COMPETENCY FRAMEWORKS PUB set up the Singapore Water Academy (SgWA) in February 2016 with the mission to build current and future organisational capabilities through competency- based training and development for PUB staff and the water industry.
As part of growing efforts to build capabilities and competency within the workforce, PUB’s engineering competency frameworks which document the skills and knowledge required for engineering jobs in PUB were rolled out in January 2018.

These frameworks guide the implementation of structured training plans to systematically develop engineering competencies for over 2,500 PUB engineers.
Key training programmes include structured on-the-job training as well as customised technical courses curated and accredited under the Singapore Workforce Skills Management Series (SgWM) on Sustainable Urban Stormwater Management in July 2017, attended by 25 participants.
SINGAPORE INTERNATIONAL WATER WEEK The SIWW Spotlight 2017 was held from 17 to 19 July 2017.

Over 200 utility leaders attended the event.

The key highlights included the signing of two Memorandum of Understanding (MOU) by PUB with Saudi Arabia’s Saline Water Conversion Corporation and Western Australia’s Water Corporation respectively, as well as the launch of the Kurita R&D Centre in Singapore.
LICENSED PLUMBER SCHEME Under the new Licensed Plumber scheme that was implemented on 1 April 2018, sanitary plumbers are required to be licensed under PUB’s revised licensing scheme.

Aimed at enhancing standards in the industry, both water service plumbers and sanitary plumbers will operate under a common license and need to be competent in carrying out both types of plumbing work.
Through training, licensing and enforcement against non-compliance with PUB’s rules and regulations, PUB looks to streamline the operations of water service and sanitary plumbing.
15 16 ENCOURAGING COMMUNITY OWNERSHIP
SINGAPORE WORLD WATER DAY Alongside World Water Day, held annually on 22 March, Singapore World Water Day (SWWD) was celebrated throughout the month of March.
The theme for 2018 was “Make Every Drop Count”, which highlighted the active role each of us can play to show our care for water.

More than 3,000 participants attended the SWWD Opening Ceremony, held on 3 March 2018, with Guest-of-Honour President Halimah Yacob kicking off the celebration.
Throughout the month of March, more than 110,000 water-saving pledges were rallied from the community to practise that joined in the celebrations with water conservation activities and outreach initiatives.
17 18 OUTLOOK FOR THE NEXT FISCAL YEAR
STRENGTHENING WATER SUPPLY RECLAIMING USED WATER TAMING STORMWATER June 2018: Tuas Desalination Plant begins operations Ongoing: Continuous improvement to the water supply infrastructure May 2018 & 2019: Increased treatment capacity at Jurong Water Reclamation Plant
 and Changi Water Reclamation Plant BUILDING CAPABILITIES WATER PRICE REVISION July 2018: Over 24,000 participants from 110 countries participated in the Singapore International Water Week 2018 July 2018: Commencement of second phase of the Water Price Revision September 2018: Completion of key drainage projects at Stamford Diversion Canal and Stamford Detention Tank December 2018: Completion of key drainage project at Bukit Timah First Diversion Canal ENCOURAGING COMMUNITY OWNERSHIP March to October 2018: Celebrated Marina Barrage’s 10th anniversary with 10 iconic events Third Quarter to Fourth Quarter of 2018: Active, Beautiful, Clean Waters (ABC Waters) Programme GEARING TOWARDS A SUSTAINABLE / SMART PUB First Quarter of 2018: Implementation of smart shower devices for 10,000 new HDB demonstration project Fourth Quarter of 2019: Deployment
 Bedok and Lower Seletar Reservoirs to power PUB’s operational needs 19 20 STRENGTHENING WATER SUPPLY
 RECLAIMING USED WATER
TUAS DESALINATION PLANT INCREASED TREATMENT CAPACITY
extending the lifespan of the treatment membranes.
WATER SUPPLY NETWORK PUB plans ahead of time to ensure that investment in our water supply infrastructure keeps up with the rising water demand alongside increasing urbanisation.

New pipelines are laid to meet development needs.

There are currently 30 ongoing network expansion projects.

PUB will also be expanding the water network in tandem with the development of new desalination plants and NEWater factories.
As part of its Phase 4 expansion for the management of industrial used water, treatment capacity at Jurong Water Reclamation Plant was increased from 45 to 57 million gallons per day (mgd) in May 2018.

The project involves the installation of a thermal hydrolysis process facility, with a treatment capacity of 53 tons of dried solids per day, to improve the facility’s sludge management capability.
At Changi Water Reclamation Plant, treatment capacity will be increased from 202 to 224 mgd 21 22 TAMING STORMWATER
GEARING TOWARDS A SUSTAINABLE / SMART PUB
THE SMART PUB ROADMAP The SMART PUB roadmap is aimed at identifying new applications of smart technologies for piloting, as well as to scale-up successful pilots to full scale implementation.
The roadmap will also be complemented customers better.
STAMFORD DIVERSION CANAL & STAMFORD DETENTION TANK The Stamford Diversion Canal, together with the Stamford Detention Tank, is part of a holistic “source-pathway- will run underneath the road, from Tanglin to the Singapore River.
The 6m to 14m wide diversion canal will channel stormwater from the upstream section of Stamford Canal catchment towards Singapore River and eventually into the Marina Reservoir.

The Stamford Detention Tank project, built beneath a nursery and coach bay of the Tyersall Learning Forest, will temporarily hold excess stormwater from the drains in Holland Road, which is upstream of the Stamford Canal catchment.
The water will be pumped back into the drains for subsequent discharge into the Marina Reservoir after rain subsides.
BUKIT TIMAH FIRST DIVERSION CANAL The Bukit Timah First Diversion Canal involves the widening and deepening of a section of the canal to enhance Beauty World Plaza, Bukit Timah Shopping Centre and Sime Darby Centre.
SMART SHOWERS A NUS-PUB study showed that smart shower devices that indicated real-time water usage during showers help residents save water.
Building on the positive project starting from 2018.
This could help households save up to 3% of their monthly water bill.

FLOATING SOLAR PHOTOVOLTAIC SYSTEMS Solar Photovoltaic (PV) systems provide a potential source of clean and renewable energy and contribute to Singapore’s climate change mitigation efforts.
Building bed system at Tengeh Reservoir that was launched in October 2016, comprehensive environmental and engineering studies are ongoing to assess the feasibility of deploying a 6.7 MWp system at Upper Peirce Reservoir and a 50 MWp system at Tengeh Reservoir.
To accelerate efforts for the integration of renewable energy, PUB has called a tender to conduct engineering of 1.5 MWp and 1 MWp at Bedok Reservoir and Lower Seletar Reservoir respectively.
These two systems are expected to be deployed by 2019 and will generate renewable solar energy to support the power demand of PUB installations in the proximity.
23 24 BUILDING CAPABILITIES
ENCOURAGING COMMUNITY OWNERSHIP
MARINA BARRAGE’S 10TH ANNIVERSARY Built across the mouth of Marina Channel, Marina Barrage serves as Singapore’s
 15th opened to the public in October 2008, Marina Barrage has welcomed close to 15 million people from all over the world.
A decade on, Marina Barrage is key to Singapore’s water management.
The barrage has in low-lying city areas including Jalan Besar, Boat Quay and Shenton Way.
With its iconic location in the Marina Bay, the Marina Barrage has endeared itself to the young and old, transforming into a popular hangout for locals and tourists.
This year, the nation celebrates the 10th anniversary of the Marina Barrage with ten signature events held throughout the year, culminating was also conducted for engineering students to provide technical insights to behind-the-scenes operations.
SINGAPORE INTERNATIONAL WATER WEEK The biennial Singapore International Water Week (SIWW) is a leading platform for global water industry players to showcase innovations, share policy developments, and form partnerships in research and development.
The SIWW welcomes the world’s top leaders in the international organisations, industry and academia, and offers an unprecedented networking opportunity to SIWW 2018 was held from 8 to 12 July 2018.
It welcomed over 24,000 participants from 110 countries, with over S$23 billion worth of business announcements being made.

PUB also took the opportunity to announce Memorandum of Understanding (MOU)s with Budapest Waterworks and Grundfos, the SMART PUB roadmap, Tuas Water Reclamation Plant projects and launched the Singapore Water Exchange.

SIWW 2018 focused on areas such as advanced wastewater treatment and smart water systems, commercialisation and innovation, and integrated water management.
Professor Rita Colwell was awarded the 2018 Lee Kuan Yew Water Prize Award for her pioneering insights into microbial water quality surveillance, and her pivotal contributions in translating these insights into concrete practices and policies to better manage waterborne diseases and protect public health.
25 ACTIVE, BEAUTIFUL, CLEAN WATERS PUB launched the Active, Beautiful, Clean Waters (ABC Waters) Programme in 2006 which aims to integrate beautiful and clean streams, rivers, and lakes into community spaces for all to enjoy.
36 projects have Waters Programme since its launch.
In addition, there are projects by other agencies and private developers where the ABC Waters design concept is incorporated as part of their developments.
More than 100 locations across as potential ABC Waters sites to be implemented by 2030.
5 ABC Waters sites Woodlands Sembawang Nee Soon Choa Chu Kang Serangoon Pulau Ubin Pulau Tekong Jurong Tuas Jurong Island Ang Mo Kio Bedok Queenstown Telok Blangah Sentosa Bukum Sudong Pawai Semakau Bukit Timah 1st Diversion Canal (Holland Plain) Hougang Town (Serangoon Reservoir) Hougang Town (Hougang Avenue 10) Hougang Town (Sungei Pinang) Boon Tiong 26 FINANCIAL REPORT 2017/2018 CONTENTS • FINANCIAL HIGHLIGHTS • FINANCIAL STATEMENTS 08 Independent Auditor’s Report 15 Consolidated Statement of Changes in Equity 13 Statements of Comprehensive Income 14 Statements of Financial Position 16 Statement of Changes in Equity 17 Consolidated Statement of Cash Flows 19 Notes to the Financial Statements FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS OPERATING RESULTS Operating Income Net Non-Operating Income Operating
 Expenses Finance Expenses Net Loss before Government Grants Government Operating Grants Net Income after Government Grants and before Contribution to GCF and Taxation Contribution to GCF Taxation Group1 FY 2017 $ million FY 2016 $ million 1,286.2 1,222.4 71.4 73.4 (1,324.0) (1,270.2) (84.0) (50.4) 332.9 282.5 (48.4) - (84.8) (59.2) 298.8 239.6 (40.3) (0.4) Net Income after Government Grants and after Contribution to GCF and Taxation 234.1 198.9 FINANCIAL POSITION Property, Plant and Equipment Cash Other Assets
 Total Assets Capital Account Retained Earnings Borrowings Other Liabilities Total Equity and Liabilities Average Total Assets ($ billion) Return on Total Assets2 % Gearing Ratio3 % Group1 FY 2017 $ million FY 2016 $ million 7,854.3 7,147.4 513.4 278.9 683.3 243.4 8,646.6 8,074.1 5,571.3 5,335.2 1.3 6.0 1,400.0 1,668.0 3.4 6.0 1,400.0 1,329.5 8,646.6 8,074.1 8.4 3.6 24.3 8.0 3.4 25.7 1 Group is a consolidated account of Public Utilities Board, its wholly owned subsidiary, PUB Consultants Private Limited (PUBC) and PUBC’s wholly owned subsidiary, Singapore International Water Week Pte.
Ltd. 2 Return on Total Asset = Return before Interest and after Contribution to GCF and Tax / Average Total Assets 3 Gearing Ratio = Borrowings (include Finance Lease Payables)/Average Total Assets Financial Report 2017/2018 1 FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS PERFORMANCE OVERVIEW CAPITAL EXPENDITURE The Group recorded a net income after Government grants and Contribution to GCF and Taxation of $234.1 million this year (prior year: $198.9 million).
The increase in operating expenses was offset by the increase in operating income and Government operating grant bringing about a higher return by $35.2 million over the previous year and a Return on Total Assets of 3.6% (prior year: 3.4%).

During the year, the capital expenditure of the Group was $1,294.5 million (prior year: $1,051.6 million).
This comprises PUB- funded capital expenditure of $733.0 million and government-funded capital expenditure of $561.5 million as shown in the following charts: OPERATING INCOME AND GOVERNMENT GRANTS The Group’s operating income of $1,286.2 million (prior year: $1,222.4 million) was from its water supply and used water operations.
The Group’s other major source of income of $332.9 million (prior year: $298.8 million) is from the Government operating grants for the operations and maintenance of the drainage systems, the Active, Beautiful, Clean Waters (ABC Waters) Programme as well as other government-funded activities.

OPERATING EXPENSES The Group’s operating expenses4 totalled $1,324.0 million in FY2017 (prior year: $1,270.2 million).
Operating expenses of the Group comprise largely of depreciation of property, plant and equipment, maintenance, manpower, electricity, research & development, administrative and other miscellaneous expenses incurred related to the collection, production, distribution and reclamation of water in Singapore.

FINANCIAL POSITION As at 31 March 2018, the Group’s total assets stood at $8,646.6 million (prior year: $8,074.1 million).
The increase of $572.5 million was largely due to an increase in property, plant and equipment.

90.8% of the Group’s total assets or $7,854.3 million (prior year: 88.5%, $7,147.4 million) are accounted for by property, plant and equipment which comprise land, pipelines, plant, equipment and buildings (to house the plant and equipment).
PUB-Funded ($ million) FY 2017 404.6 13.9 294.6 19.9 FY 2016 363.6 20.9 104.5 11.8 Total: 733.0 Total: 500.8 Water NEWater Used Water Industrial Water & Others 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 PUB spent $733.0 million (prior year: $500.8 million) in capital expenditure as part of its continual efforts to replace, improve and expand water and used water infrastructure to cater for future water needs of the nation.
These infrastructure are funded from cash generated from revenue collected (net of expenses) and borrowings.
Government-Funded ($ million) FY 2017 254.5 307.0 FY 2016 193.3 357.5 Total: 561.5 Total: 550.8 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 Used Water Drainage and Active, Beautiful, Clean Waters (ABC Waters) Programme Government-funded capital expenditure of $561.5 million (prior year: $550.8 million) were for drainage network, used water reticulation network and the Active, Beautiful, Clean Waters (ABC Waters) Programme projects.

These assets belong to the Government.


4 The Group’s operating expenses do not include depreciation expense for the drainage and used water reticulation network belonging to the Government.
2 Financial Report 2017/2018 Financial Report 2017/2018 3 TEN-YEAR SUMMARY OF OPERATING RESULTS AND FINANCIAL POSITION GROUP OPERATING RESULTS Operating Income Operating Expenses Net Operating (Loss)/Income Net Non-Operating Income Finance Expenses Net (Loss)/Income before Government Grants Government Grants Net Income after Government Grants and before GCF and Tax* Contribution to GCF and Tax* Net Income after Government Grants and after Contribution to GCF and Tax* FINANCIAL POSITION Property, Plant and Equipment Investment in Bonds Cash Other Current Assets Other Non-Current Assets Total Assets Borrowings 1 Deferred Income 1 Finance Lease Payable 1 Provision for Asset
 Restoration Obligations Other Current Liabilities Total Liabilities Share Capital Capital Account Retained Earnings 2 Total Equity Total Liabilities and Equity Net (Liabilities)/Assets of Trust Funds 3 FY 2017 12 months $’000 FY 2016 12 months $’000 FY 2015 12 months $’000 FY 2014 4 12 months
 $’000 FY 2013 12 months $’000 FY 2012 12 months $’000 FY 2011 12 months $’000 FY 2010 12 months $’000 FY 2009 12 months $’000 FY 2008 12 months $’000 1,286,167 (1,323,969) (37,802) 71,411 (84,014) (50,405) 332,868 282,463 (48,392) 234,071 7,854,348 – – 513,438 270,042 8,778 8,646,606 1,400,000 549,467 629,320 12,345 476,915 3,068,047 1 5,571,307 6,000 1,251 5,578,559 8,646,606 (59,179) 1,222,432 (1,270,242) (47,810) 73,459 (84,844) (59,195) 298,826 239,631 (40,691) 198,940 7,147,445 – – 683,301 236,746 6,572 8,074,064 1,400,000 225,831 658,882 12,613 432,163 2,729,489 1 5,335,175 6,000 3,399 1,201,313 (1,239,334) (38,021) 56,345 (87,660) (69,336) 270,431 201,095 (34,258) 166,837 6,793,808 90,945 – 830,546 220,954 5,743 7,941,996 1,650,000 243,117 512,793 13,829 376,767 2,796,506 1 5,138,057 6,000 1,432 1,182,495 (1,193,636) (11,141) 49,842 (95,926) (57,225) 276,992 219,767 (37,378) 182,389 6,778,733 98,745 – 780,255 215,554 9,012 7,882,299 1,750,000 246,641 535,317 14,577 355,537 2,902,072 1 4,972,795 6,000 1,431 1,143,538 (1,138,645) 4,893 47,686 (97,407) (44,828) 296,378 251,550 (42,530) 209,020 6,855,671 – – 1,088,925 203,059 195 8,147,850 2,100,000 248,161 556,558 27,047 418,246 3,350,012 1 4,790,787 6,000 1,050 1,090,013 (1,064,474) 25,539 30,252 (92,261) (36,470) 215,514 179,044 (30,425) 148,619 6,652,223 – – 888,985 182,107 196 7,723,511 2,100,000 243,001 399,223 26,517 365,952 3,134,693 1 4,582,817 6,000 – 1,037,549 (1,037,056) 493 26,000 (108,030)
 (81,537) 199,035 117,498 (20,230) 97,268 6,649,186 – – 750,624 166,636 265 7,566,711 2,100,000 253,190 415,284 26,157 331,881 3,126,512 1 4,057,458 6,000 376,740 1,010,737 (998,773) 11,964 19,768 (103,608) (71,876) 185,218 113,342 (19,269) 94,073 6,561,603 – – 1,056,169 169,663 376 7,787,811 2,500,000 158,032 430,472 – 356,376 3,444,880 1 4,057,458 6,000 279,472 963,530 (849,155) 114,375 21,152 (88,007) 47,520 184,506 232,026 (39,334) 192,692 6,407,977 – 50,452 400,523 333,720 524 7,193,196 2,100,000 160,431
 323,209 – 360,698 2,944,338 1 4,057,458 6,000 185,399 932,944 (799,196) 133,748 22,380 (85,391) 70,737 180,369 251,106 (45,012) 206,094 4,254,573 – 63,793 114,877 2,195,992 5 669 6,629,904 1,850,000 155,346 277,312 – 291,080 2,573,738 1 3,475,605 6,000 574,560 5,344,575 5,145,490 4,980,227 4,797,838 4,588,818 4,440,199 4,342,931 4,248,858 4,056,166 8,074,064 7,941,996 7,882,299 8,147,850 7,723,511 7,566,711 7,787,811 7,193,196 6,629,904 (52,403) (36,939) (38,115) 634 3,220 3,792 717 3,738 – 4
Financial Report 2017/2018 Financial Report 2017/2018 5 TEN-YEAR SUMMARY OF STATISTICAL DATA FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 EMPLOYEES Number of employees as at end of period/year – PUB – PUBC Group CUSTOMERS Number of accounts as at end of period/year (‘000) PERFORMANCE INDICATORS As at end of period/year – Number of accounts served per PUB employee – Net Operating Income after grant per employee (S$’000) For period January – December – Flood Prone Areas (hectare) 1 – Number of Disruptions per month per 1,000 km of Sewers – Per capita Household Water Consumption (litres/day) 2 – Per capita Domestic Water Consumption (litres/day) 2 – % of Unaccounted for Potable Water – % of tests
 meeting WHO Guidelines for Drinking-Water Quality 2011 and EPH (Quality of Piped Drinking Water) Regulations 2008 3,425 – 3,425 1,567 458 83 30 10 143 – 5.1 100 3,442 – 3,442 3,421 – 3,421 3,382 – 3,382 3,229 – 3,229 3,196 – 3,196 3,129 – 3,129 3,125 5 3,130 3,095 29 3,124 3,099 41 3,140 1,527 1,463 1,424 1,363 1,333 1,312 1,294 1,267 1,241 444 73 31 11 148 – 5.0 100 428 68 32 11 149 151 5.0 100 421 79 34 11 149 150 5.2 100 422 93 36 12 – 151 5.2 100 417 75 40 13 – 152 4.7 100 419 64 48 14 – 153 5.0 100 414 63
 56 15 – 154 5.2 100 409 96 66 17 – 155 4.6 100 400 100 79 19 – 156 4.4 100 CAPITAL EXPENDITURE 3 FUNDED BY AND BELONGING TO PUB Water NEWater Used Water Industrial Water & Others 4 Total FUNDED BY AND BELONGING TO GOVERNMENT Used Water Drainage Total FY 2017 $ million FY 2016 $ million FY 2015 $ million FY 2014 $ million FY 2013 $ million FY 2012 $ million FY 2011 $ million FY 2010 $ million FY 2009 $ million FY 2008 $ million 6
6
Financial Report 2017/2018 Financial Report 2017/2018 7 FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT
 INDEPENDENT AUDITOR’S REPORT To Members of the Board Report on the Audit of the Financial Statements Our opinion
the consolidated statement of changes in equity of the Group and the statement of changes in equity of the Board for the
Basis for Opinion
Basis for Opinion are further described in the
 section of our report.
We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority Code of Professional
accordance with these requirements and the ACRA Code.
Our Audit Approach As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the accompanying
As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Report on the Audit of the Financial Statements (continued) Our Audit Approach
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter How our audit addressed the matter Carrying values of property, plant and equipment (“PPE”) and assessment of useful lives of PPE Refer to note 2.9(b), note 3 and note 13 to the As of 31 March 2018, the carrying value of PPE of the Group amounted to S$7,854.3 million.
We had focused our audit on the carrying value of PPE because PPE accounts for the majority of the Group’s involved in determining the useful lives of PPE.
Given the errors in estimating the useful lives of PPE could result in a Our audit procedures included the following: • We obtained
 understanding and validated the key controls over the Group’s processes for accounting of property, plant and equipment, and noted that the determination of useful lives of PPE takes into consideration asset utilisation rate, internal technical evaluation, operational plans and technological developments.
• We reviewed the appropriateness of management’s estimates of the useful lives of PPE as follows: (i) Discussed with management on the operational (ii) Assessed management’s estimate the useful lives of new PPE acquired by tracing to underlying documentary support such as project documentation, and assessment technical for (iii) Reviewed management’s analysis of estimated
to estimated useful lives such as expected usage of the asset, expected physical wear and tear, technical or commercial obsolescence and legal or similar limits on the use of the asset such as the
 (iv) Compared the useful lives of the PPE against entities in the utilities industry based on published information of these entities.
Based on our audit procedures performed, we found management’s estimates of the useful lives of PPE to be reasonable.
8 Financial Report 2017/2018 Financial Report 2017/2018 9 INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT Report on the Audit of the Financial Statements (continued) Other Information Management is responsible for the other information.
The other information refers to all the sections of the annual report but available to us after the date of this auditor’s report.
assurance conclusion thereon.
obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate actions in accordance with SSAs.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
statements that are free from material misstatement, whether due to fraud or error.
statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is intention to wind up the Group or for the Group to cease operations.
Report on the Audit of the Financial Statements (continued) Auditor’s Responsibilities for the Audit of the Financial Statements
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit.
We also: • • •
a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the Group to cease to continue as a going concern.
and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would
 10 Financial Report 2017/2018 Financial Report 2017/2018 11 INDEPENDENT AUDITOR’S REPORT PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME
 Report on other Legal and Regulatory Requirements Opinion In our opinion:
In our opinion:
(b) proper accounting and other records have been kept, including records of all assets of the Board and of those subsidiaries incorporated in Singapore of which we are the auditors whether purchased, donated or
 otherwise.
Basis for Opinion We conducted our audit in accordance with SSAs.
Our responsibilities under those standards are further described in the section of our report.
We are independent of the Group in accordance with the ACRA
Responsibilities of Management for Compliance with Legal and Regulatory Requirements Management is responsible for ensuring that the receipts, expenditure, investment of moneys and the acquisition and disposal of assets are in accordance with the provisions of the Act.
This responsibility includes implementing accounting and internal controls as management determines are necessary to enable compliance with the provisions of the Act.
Auditor’s Responsibilities for the Compliance Audit We planned and performed the compliance audit to obtain reasonable assurance about whether the receipts, expenditure, investment of moneys and the acquisition and disposal of assets are in accordance with the provisions of the Act.
Our compliance audit includes obtaining an understanding of the internal control relevant to the receipts, expenditure, investment from non-compliance, if any, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
Because of the inherent limitations in any accounting and internal control system, non-compliances may nevertheless occur and not be detected.

The engagement partner on the audit resulting in this independent auditor’s report is Lee Kok Hooi.
PricewaterhouseCoopers LLP Public Accountants and Chartered Accountants Singapore, 5 July 2018 GROUP BOARD Note 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’000 Operating income Operating expenses Net operating loss Net non-operating income and operating grants Finance expenses 4 5 6 7 1,286,167 (1,323,969) 1,222,432 (1,270,242) 1,285,786 (1,323,440) 1,212,869 (1,262,989) (37,802) (47,810) (37,654) (50,120) 71,411 73,459 73,411 73,459 33,609 25,649 35,757 23,339 (84,014) (84,844) (84,014) (84,844) Net loss before operating grants Operating grants from government (50,405) 332,868 (59,195) 298,826 (48,257) 332,868 (61,505) 298,826 Net income after government grants and before contribution to government Contribution to government consolidated fund Taxation 8(a) 8(b) Net income after government grants and after contribution to government
 Other comprehensive income
 Net re-measurement gain/(loss) on pension obligation Total comprehensive income Attributable to: Shareholder of the Board 282,463 (48,392) – 239,631 (40,348) (343) 284,611 (48,392) – 237,321 (40,348) – 234,071 198,940 236,219 196,973 (87) 233,984 145 199,085 (87) 236,132 145 197,118 233,984 199,085 236,132 197,118 Chiang Chie Foo Chairman 5 July 2018 Ng Joo Hee Chief Executive 5 July 2018 12 Financial Report 2017/2018 Financial Report 2017/2018 13
 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
 ASSETS Current assets Cash and cash equivalents Inventories Trade and other receivables Prepaid and deferred expenses Non-current assets Property, plant and equipment Investment in subsidiaries Other receivables Prepaid and deferred expenses Total assets LIABILITIES Current liabilities Trade and other payables Other liabilities Provision for contribution to government consolidated fund and taxation Finance lease payables Deferred income Borrowings Non-current liabilities Finance lease payables Deferred income Borrowings Provision for asset restoration obligations Total liabilities NET ASSETS Equity Share capital Retained earnings Capital account Supplementary information Net liabilities of trust funds GROUP BOARD Note 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’000 Note Share capital $’000 Retained earnings $’000 Capital account $’000 Water
 $’000 Total $’000 GROUP 513,438 66,496 201,050 2,496 783,480 7,854,348 – 7 8,771 7,863,126 8,646,606 233,802 194,721 48,392 31,261 21,281 400,000 929,457 598,059 528,186 1,000,000 12,345 2,138,590 3,068,047 5,578,559 1 1,251 5,571,307 6,000 5,578,559 683,301 66,849 168,524 1,373 920,047 7,147,445 – 21 6,551 7,154,017 8,074,064 220,981 170,506 40,676 29,562 13,324 – 475,049 629,320 212,507 1,400,000 12,613 2,254,440
– 5,571,307 6,000 5,577,308 680,981 66,849 164,979 1,358 914,167 7,147,445 100 21 6,359 7,153,925 8,068,092 219,513 170,506 40,348 29,562 13,309 – 473,238 629,320 211,745 1,400,000 12,613 2,253,678 2,726,916 5,341,176 1 – 5,335,175 6,000 5,341,176 (59,179) (52,403) (59,179) (52,403) 31 March 2018 Net income after government grants and after contribution to government consolidated fund and taxation for the year Other comprehensive income for the year Total comprehensive income for the year Transfer to retained earnings upon utilisation Transfer to top up water Transfer to capital account Total transactions with owners, recognised directly in equity 31 March 2017
31 March 2017 Net income after government grants and after contribution to government consolidated fund and taxation for the year Other comprehensive income for the year Total comprehensive income for the year Transfer to retained earnings upon utilisation Transfer to top up water
 Transfer to capital account Total transactions with owners, recognised directly in equity 23 23 22 23 23 22 1 – – – – – – – 1 1 – – – – – – – 1 3,399 5,335,175 6,000 5,344,575 234,071 (87) 233,984 1,312 (1,312) – – – – – (236,132) 236,132 – – – 234,071 (87) 233,984 (1,312) 1,312 – – – – (236,132) 1,251 236,132 5,571,307 – 6,000 – 5,578,559 1,432 5,138,057 6,000 5,145,490 198,940 145 199,085 3,098 (3,098) (197,118) – – – – – 197,118 – – – (3,098) 3,098 – 198,940 145 199,085 – – – (197,118) 3,399 197,118 5,335,175 – 6,000 – 5,344,575
14 Financial Report 2017/2018 Financial Report 2017/2018 15 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES STATEMENT OF CHANGES IN EQUITY PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS
 Note Share capital $’000 Retained earnings $’000 Capital account $’000 Water $’000 Total $’000 BOARD 31 March 2018 Net income after government grants and after contribution to
 government consolidated fund and taxation for the year Other comprehensive income for the year Total comprehensive income for the year Transfer to retained earnings upon utilisation Transfer to top up water Transfer to capital account Total transactions with owners, recognised directly in equity 31 March 2017 Net income after government grants and after contribution to government consolidated fund and taxation for the year Other comprehensive income for the year Total comprehensive income for the year Transfer to retained earnings upon utilisation Transfer to top up water Transfer to capital account Total transactions with owners, recognised directly in equity 23 23 22 23 23 22 1 – – – – – – – 1 1 – – – – –
 – – 1 – 5,335,175 6,000 5,341,176 236,219 (87) 236,132 1,312 (1,312) (236,132) – – – – – 236,132 – – – 236,219 (87) 236,132 (1,312) 1,312 – – – – (236,132) – 236,132 5,571,307 – 6,000 – 5,577,308 Net loss before operating grants
 Adjustments for: – Impairment loss on property, plant and equipment – Allowance for doubtful receivables, net – Allowance for inventory obsolescence – Depreciation of property, plant and equipment – Investment income from bonds – Amortisation of bond premium – Loss on disposal of property, plant and equipment – Amortisation of deferred income – Finance expenses Change in working capital, net of effects from acquisition and disposal of subsidiaries: – Trade and other receivables – Prepaid and deferred expenses – Trade and other payables, and other liabilities – Deferred income – Inventories – 5,138,057 6,000 5,144,058 Payment for government consolidated fund and tax Net cash provided by operating activities Additions to property, plant and equipment Maturity of investments Disposal of property, plant and equipment Interest and investment income received Net cash used in investing activities 196,973
 145 197,118 3,098 (3,098) (197,118) – – – – – 197,118 – – – 196,973 145 197,118 (3,098) 3,098 – – – – (197,118) – 197,118 5,335,175 – 6,000 – 5,341,176 GROUP Note 31 March 2018 31 March 2017 $’000 $’000 (50,405) (59,195) 5(c) 5(c) 5(c) 5(c) 6 6 6 7 14,550 3,257 623 316,871 – – 3,530 (16,019) (8,301) 84,014 348,120 (36,137) (3,343) 20,863 29,904 (270) 359,137 (40,676) 318,461 (733,173) – 500 12,285 (720,388) 1,815 906 277 312,713 (504) 195 1,191 (13,506) (12,519) 84,844 316,217 (10,281) 97 26,252 (3,780)
 (7,834) 320,671 (34,205) 286,466 (497,102) 90,750 953 13,526 (391,873) 16 Financial Report 2017/2018 Financial Report 2017/2018 17 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS
 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 GROUP Note 31 March 2018 31 March 2017 $’000 $’000 1.
General information Grants received from government Repayment of borrowings Net decrease in cash and cash equivalents Cash and cash equivalents
345,109 – (63,977) (49,068) 232,064 319,570 (250,000) (56,139) (55,269) (41,838) (169,863) (147,245) 9 9 683,301 513,438 830,546 683,301
 1 April 2017 Cash changes Grants received from government Principal and interest payments Government grant utilised $’000 $’000 $’000 $’000 Advances received for government grant Borrowings Finance lease payables 23,727 1,400,000 658,882 – (49,068) (63,977) 345,109 – – (329,592) – – Non-cash changes 31 March 2018 Interest $’000 – 49,068 34,415 $’000 39,244 1,400,000 629,320 Public Utilities Board (the "Board") is a statutory board continued under the Public Utilities Act (Chapter 261), which came under the purview of the Ministry of Environment and Water Resources ("MEWR") on 1 April 2001.
The address of its The principal activities of the Board established under the Public Utilities Act (Chapter 261) are to supply water to the public,
 of the public sewerage systems, public sewers, and storm water drainage systems belonging to the Government.
The 2.1 Basis of preparation
accordance with the provision of the Public Utilities Act (Chapter 261) and Statutory Board Financial Reporting Standards SB-FRSs include Statutory Board Financial Reporting Standards, Interpretations of SB-FRSs and SB-FRS Guidance Notes as promulgated by the Accountant- General.
The Accountant-General is appointed as the legal authority to prescribe accounting standards for statutory boards under the Accounting Standards Act 2007 (No 39 of 2007) which came into effect on 1 November 2007.

As at 31 March 2018, the Group’s and the Board’s current liabilities exceeded their current assets by $146.0 million and $147.4 million respectively.
Board will also tap the capital market to meet its
 funding requirements.
process of applying the Group’s accounting policies.
It also requires the use of certain critical accounting estimates and assumptions.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates Interpretations and amendments to published standards effective in 2017
in accordance with the transitional provisions in the respective SB-FRS and INT SB-FRS.
The adoption of these new or amended SB-FRS and INT SB-FRS did not result in substantial changes to the accounting years.
18 Financial Report 2017/2018 Financial Report 2017/2018 19 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 (continued) 2.2 Revenue recognition
 can be reliably measured, regardless of when the payment is made.
Revenue is measured at the fair value of consideration
must also be met before revenue is recognised: (a) Revenue from water sales and used water services are recognised upon billing, which is based on customers' consumption of water and used water services.
(b) Rental income is recognised on a straight-line basis over the period of the lease.
(c) Interest income is recognised on an accrual basis using the effective interest method.

(d) Dividend income is recognised when the shareholder's right to receive payment is established.

(e) Project management fee is recognised when the services are rendered.
(continued) (a) Contribution to government consolidated fund In lieu of income tax, the Board is required to make contribution to the Government Consolidated Fund in accordance with the Statutory Corporations (Contributions to Consolidated Fund) Act, Chapter 319A.
(b) Income taxes The Group’s income tax expense comprises current and deferred tax of the subsidiaries.

Current income tax liabilities for current and prior periods are recognised at the amounts expected to be paid to the tax authorities, using the tax rates (and tax laws) that have been enacted or substantially enacted by the reporting date.
Deferred income tax assets/liabilities are recognised for all deductible/ taxable temporary differences arising between income tax assets/liabilities arise from the initial recognition of an asset or liability in a transaction that is not a
against which the temporary differences can be
 utilised.
2.3 Government grants Deferred income tax assets and liabilities are measured at: Grants are received for the operations and maintenance of drainage systems, the Active, Beautiful, Clean Water Programme and other government-funded activities.

Grants from the government are recognised as a receivable at their fair values when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions.
Government grants receivable are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis.
Government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current or loss over the period necessary to match the annual depreciation charge of these assets or when the assets are disposed or written off.
2.4 Group accounting Subsidiaries Consolidation Subsidiaries are all entities (including structured entities) over which the Group has control.

The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
They are deconsolidated from the date that control ceases.
transactions between group entities are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment indicator of the transferred asset.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
(i) the tax rates that are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted (ii) the tax consequence that would follow from the manner in which the Board's subsidiaries expect, at the reporting date, to recover or settle the carrying amounts of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
the extent that the tax arises from a transaction which is recognised directly in statement of changes in equity.
2.6 Cash and cash equivalents
as set out in the Accountant-General's Circular No.
4/2009 Centralised Liquidity Management for Statutory Boards and Ministries.
2.7 Inventories maintenance of plant and equipment but not held for trading.
Inventories are stated at the lower of cost and net realisable value.

Cost is determined on the weighted average method, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition.

Inventories which are considered obsolete, deteriorated or damaged are recorded in the allowance for write-down of inventories before the inventories are authorised to be written off.
20 Financial Report 2017/2018 Financial Report 2017/2018 21 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS (continued) 2.8 Financial assets Financial assets are recognised when, and only when, the Group becomes a party to the contractual provisions of
Loans and receivables
 an active market.
They are presented as current assets, except for those expected to be realised later than 12 months
(b) Recognition and derecognition
 been transferred and the Group has transferred substantially all risks and rewards of ownership.
On disposal of a
(c) Initial measurement Loans and receivables are
 initially recognised at fair value plus transaction costs.
(continued) 2.9 Property, plant and equipment (continued) (a) Measurement (continued) (ii) Leased assets value and the present value of the minimum lease payments at the inception of the lease, less subsequent
 and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the (b) Depreciation
(b) Depreciation Depreciation of property, plant and equipment is charged from the month of acquisition of the asset or available for use as intended by management and is calculated on the straight-line method to allocate the depreciable amounts over their estimated useful lives.
The estimated useful lives of depreciable property, plant and equipment are as follows: Leasehold land Land development and buildings (1) Plant and equipment Pipelines Others (mainly meters, vehicles and computer systems) Useful lives 18 to 99 years, or the remaining lease period 30 to 100 years 5 to 25 years 50 to 70 years 4 to 15 years (d) Subsequent measurement Loans and receivables are subsequently carried at amortised cost using the effective interest method.
(e) Impairment The Group assesses at each reporting date whether there is objective evidence that loan and receivables are impaired
2.9 Property, plant and equipment (a) Measurement (i) Owned assets On 1 May 1963, with the establishment of the Board, property, plant and equipment of the former City Council were vested in the
 Board at net book value.
Property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.

The cost of an item of property, plant and equipment includes its purchase price, cost of replacing part of the property, plant and equipment and any cost that is directly attributable to the acquisition, construction, production or bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
capitalised and depreciated over their useful lives.
The parts that are being replaced are written off.
All other The projected cost of dismantlement, removal or restoration is also included as part of the cost of property, plant and equipment if the obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring or using the asset.
No depreciation is charged on freehold land.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the assets and the lease term.

Assets under construction included in property, plant and equipment are not depreciated as these assets are not yet available for use.

Depreciation method, useful lives and residual values are reviewed and adjusted prospectively as appropriate, at each reporting date.
The Group regularly reviews the useful lives of its property, plant and equipment.
Arising from (c) Disposal of assets
its use or disposal.
Gains and losses on disposal of an item of property, plant and equipment are determined by 2.10 Investments in subsidiaries
 position.
On disposal of an investment in subsidiary, the difference between disposal proceeds and the carrying amounts 22 Financial Report 2017/2018 Financial Report 2017/2018 23 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
(continued) Property, plant and
Property, plant and equipment Investments in subsidiaries Property, plant and equipment and investments in subsidiaries are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired.
For the purpose of impairment testing, the recoverable amount (i.e.
the higher of the fair value less cost to sell and the independent of those from other assets.
If this is the case, the recoverable amount is determined for the cash-generating- If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount.
An impairment loss for an asset (or CGU) is reversed if, and only if, there has been a change in the estimates used to determine the asset’s (or CGU’s) recoverable amount since the last impairment loss was recognised.
The carrying amount of an asset (or CGU) is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset (or CGU) in prior years.
2.12 Trade and other payables
presented as non-current liabilities.
Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost using the effective interest method.
2.13 Provisions Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more
changes arise.
2.14 Employee compensation (a) Central Provident Fund (“CPF”) contributions Contributions to the Group’s employees’ salaries are made to the CPF as required by law.
The CPF contributions are recognised as expenses in the period when the employees rendered their services.
Employee entitlements to annual leave and performance bonus are recognised when they accrue to employees.

A provision is made for the estimated liability for non-vesting annual leave and performance bonus as a result of services rendered by employees up to the reporting date.
(continued) 2.14 Employee compensation (continued)
present value, and the fair value of any related assets is deducted.
The discount rate is the yield at the reporting date on Singapore Government Securities that have maturity dates approximating the terms of the Group's obligations performed using the projected unit credit method.
The Board, apart from the legally required contribution plans such as the Central Provident Fund, operates pension plans for pensionable employees transferred from the former Ministry of Environment.

The Board's obligation is from 1 April 2001 to the earlier of the day of retirement and death of these employees.
The provision for pension is recognised based on the hypothetical gratuity for each pensionable employee accrued from 1 April 2001 up to the based on existing guidelines found in the Pension Act and circulars issued by the Public Service Division.
2.15 Borrowings costs Borrowing costs are expensed in the period they occur.

Borrowing costs consist of interest that the Group incurs in connection with its borrowings.
2.16 Leases – when the Group is the lessee (a) Finance leases Finance leases are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.
(b) Operating leases
lease term on a straight-line basis.
2.17 Currency translation (a) Functional and presentation currency
Singapore Dollar, which is the functional currency of the Board.
(b) Transactions and balances currency using the exchange rates at the dates of the transactions.
Currency exchange differences resulting from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the reporting Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined.
24 Financial Report 2017/2018 Financial Report 2017/2018 25 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS (continued)
fund belongs to the Board and is reviewed periodically by the Board for adequacy.
Additional contributions or refunds will be made to or from the fund as appropriate.
Receipts and expenditure relating to the fund are accounted for directly in this fund
2.19 Trust funds The Board, in its role as an agent of the Government for the sewerage and drainage functions, receives funds from the Ministry of Environment and Water Resources ("MEWR") to defray the development costs of drainage networks and used water reticulation networks owned by the Government.
In addition, it receives funds from MEWR and Singapore Totalisator Board for construction of projects under the Active, Beautiful, Clean Waters Programme, also owned by the Government.

These funds are held in trust by the Board.

The funds received are accounted for separately under a trust fund as set out in Note 24.

All transactions pertaining to activities supported by the funds are accounted for directly in the trust fund.
Annual excess or shortfall in the funds after disbursing all development expenditure for MEWR will be refunded to or recovered from MEWR accordingly.

The surplus funds received from Singapore Totalisator Board are returned when the construction of assets is completed.
The net assets or liabilities of the fund do not form part of the Board's assets and liabilities but are shown separately in the 3.
Critical accounting estimates, assumptions and judgements estimates and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised
Depreciation of property, plant and equipment Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives.
The Group reviews annually the estimated economic useful lives and residual values of property, plant and equipment based on factors that include asset utilisation rate, internal technical evaluation, operational plans and technological developments.

If the estimated useful lives of property, plant and equipment were decreased/increased by 5%, the Group’s depreciation charge would increase/decrease by $16.7 million (2017: $16.5 million).

4.
Operating income Water sales Used water services Other operating income GROUP BOARD 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’000 787,943 497,843 381 1,286,167 790,281 422,588 9,563 1,222,432 787,943 497,843 – 1,285,786 790,281 422,588 – 1,212,869 Direct operating expenses: – electricity – manpower – depreciation – impairment loss – plant rental – property tax – maintenance and others Indirect operating expenses: – service departments' costs GROUP BOARD Note 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’ 5(a) 5(b) 5(c) (a) Included in maintenance and others are expenses related to the purchase of raw water from the Government of the State of Johor.
Price for the purchase of raw water from and treated water sold to the Government of the State of Johor in accordance with the 1962 Water Agreement are based on the rate of 3 sen and 50 sen per thousand gallons respectively.

In August 2002, the Johor Government had sought a review of the price of raw water.

The Singapore Government's position is that Malaysia has lost the right of review.

(b) Service departments' costs comprise manpower, depreciation, maintenance, administrative and other expenses.
(c) Included in direct and indirect operating expenses are: GROUP BOARD Note 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’000 Board members' allowance Salaries and overtime allowances Central/Employee Provident Fund Pension current service cost Electricity Maintenance Expenses Net foreign exchange (loss)/gain Research and development expenses Allowance for inventory obsolescence Allowance for doubtful receivables Depreciation of property, plant and equipment Impairment loss of property, plant and equipment 16(a) 10 27(b) 13 13 280 315,373 40,186 242 10,399 82,381 236,033 (1,075) 19,742 623 3,257 236 300,019 36,101 278 8,192 82,636 247,531 565 17,842 277 906 276 314,745 40,185 242 10,399 82,381 236,033 (1,074) 19,742 623 3,257 236 299,982 36,099 278 8,167 82,636 247,531 565 17,842 277 970 316,871 312,713 316,871 312,713 14,550 1,815 14,550 1,815 26 Financial Report 2017/2018 Financial Report 2017/2018 27 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 6.
Net non-operating income (continued) GROUP BOARD (b) Income tax Net investment income Rental income Amortisation of deferred income Project management fees Disbursement from recoverable jobs Other sundry income Dividend income Loss on disposal of property, plant and equipment Pension interest expense
 Accretion expense on asset restoration obligations 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 – 11,827 16,019 8,301 18,166 5,170 15,458 – (3,530) 71,411 $’000 309
 12,143 13,506 12,519 16,375 7,058 12,740 – (1,191) 73,459 $’000 – 11,827 16,019 8,301 18,166 5,170 15,458 2,000 (3,530) 73,411 $’000 309 12,143 13,506 12,519 16,375 7,058 12,740 – (1,191) 73,459 GROUP AND BOARD Note 31 March 2018 31 March 2017 16(a) $’000 238 34,415 49,068 293 84,014 $’000 230 30,963 53,361 290 84,844 (a) Contribution to government consolidated fund
Statutory Corporations (Contributions to Consolidated Fund) Act (Chapter 319A).
Subsidiaries of the Board are subject to tax under the Singapore Income Tax Act.
– Current income tax – Deferred income tax GROUP 31 March 2018 31 March 2017 $’000 $’000 – – – 338 5 343 The tax on the Group’s net income after government grants and before tax differs from the theoretical amount that would arise using the Singapore standard rate of income tax as follows: Net (loss)/income before tax of subsidiaries Excluding intra group transaction Tax calculated at tax rate of 17% (2017: 17%) Effects of: – expenses not deductible for tax purposes – tax incentives – utilisation of previously unutilised capital allowances
 – deferred tax assets not recognised GROUP 31 March 2018 31 March 2017 $’000 (2,148) 2,000 (148) (25) 1 (1) – – 25 – $’000 2,310 – 2,310 393 3 (42) (16) 5 – 343 GROUP 31 March 2018 31 March 2017 $’000 865 $’000 717 BOARD 31 March 2018 31 March 2017 $’000 $’000 (c) Deferred tax assets
 have not been recognised in respect of the following items: Net income after government grants and before contribution to GCF and taxation 284,611 237,321 Contribution to GCF calculated at rate of 17% (2017: 17%) Effects of: – Non-deductible donations 48,384 8 48,392 40,345 3 40,348 Unutilised tax losses and capital allowances Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable 28 Financial Report 2017/2018 Financial Report 2017/2018 29 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 9.
Cash and cash equivalents 10.
Inventories (continued) GROUP BOARD (a) Allowance for inventory obsolescence Cash with AGD – Singapore Dollar Fixed and ACU deposits – Malaysia Ringgit Cash at bank – Singapore Dollar – Malaysia Ringgit – United States Dollar Note 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’000 9(a) 487,049 669,957 487,049 669,957 9(b) 9(c) 21,367 9,220 21,367 9,220 2,465 2,541 16 513,438 3,110 997 17 683,301 1,196 2,541 – 512,153 807 997 – 680,981 Government's Centralised Liquidity Management Framework for Statutory Boards and Ministries.
The effective per annum.
ended 31 March 2018 for the Group is 3.27% (2017: 3.25%).
10.
Inventories Chemicals Spare parts and accessories Fuel and lubricants Sundries and others Less: Allowance for inventory obsolescence 10(a) GROUP AND BOARD Note 31 March 2018 31 March 2017 $’000 1,153 1,604 59,878 4,227 324 67,186 (690) 66,496 $’000 937 1,066 60,331 4,580 324 67,238 (389) 66,849 Allowance made Reversal of write-down of inventories Allowance utilised GROUP AND BOARD Note 31 March 2018 31 March 2017 5(c) $’000 389 628 (5) 623 (322) 690 $’000 2,798 282 (5) 277 (2,686) 389
 million (2017: $39.0 million).
11.
Trade and other receivables GROUP BOARD Note 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’000 11(a) 27(b) 11(b) 27(b) 119,491 (5,581) 113,910 72,859 (2,146) 70,713 1,277 170 14,980 – 201,050 7 201,057 90,997 (5,405) 85,592 70,721 (13) 70,708 712 191 11,321 – 168,524 21 168,545 115,522 (5,581) 109,941 72,859 (2,146) 70,713 1,277 170 14,980 649 197,730 7 197,737 87,442 (5,405) 82,037 70,721 (13) 70,708 712 191 11,321 10 164,979 21 165,000 9 513,438 683,301 512,153 680,981 Trade receivables Less: Allowance for impairment of trade receivables Trade receivables – net Sundry receivables Less: Allowance for impairment of sundry receivables Sundry receivables – net Other receivables Deposits Amounts due from government Amounts due from subsidiaries Other receivables Total trade and other receivables Reconciliation to loans and receivables Add: Cash Less: Net Goods and Services Tax receivables Total loans and receivables 27(f) – 714,495 (3,155) 848,691 – 709,890 (3,152) 842,829 30 Financial Report 2017/2018 Financial Report 2017/2018 31 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 11.
Trade and other receivables (continued) 13.

Property, plant and equipment (continued) (a) Trade receivables mainly represent receivables from customers with respect to water supply and used water services.

These amounts are unsecured and are generally on credit terms of 14 days.

They are recognised at the billed amounts which represent their fair values on initial recognition.
(b) Sundry receivables comprise the revenue and customer deposits collected by the Board's billing and collection agent, SP Services Limited, which have not been remitted to the Board, and other receivables for disbursement recoverable jobs billed and collected by the Board.

These amounts are unsecured and are short-term in nature.
Current prepaid expenses are payments made in advance for operating expenditure.
Non-current prepaid expenses comprise mainly payments made for property, plant and equipment where risk and title has not yet been transferred to the Group as at the reporting date.

Deferred expenses relate mainly to expenses incurred in the preparation and organisation of the Singapore International Water Week event which will be held in July 2018.

13.
Property, plant and equipment Properties – Land develop- ment and buildings (2) $’000 Properties – Land $’000 Properties – Leasehold land Plant and equipment $’000 $’000 Pipelines $’000 Others $’000 Assets under construction $’000 Total $’000 Group and Board 31 March 2018 Beginning of Additions Adjustments Transfers Disposals Beginning of Depreciation charge Adjustments Impairment Disposals
981 – – – – 981 2,852,088 – (561) 29,698 (3,774) 2,877,451 413,258 – – 415,425 – 828,683 3,867,142 116 – 123,816 (32,474) 3,958,600 2,625,061 2,585 – 120,868 (2,421) 2,746,093 165,215 6,099 – 10,519 (5,508) 176,325 480,173 1,034,124 – (700,326) – 813,971 10,403,918 1,042,924 (561) – (44,177) 11,402,104 – – – – – – 931,393 60,353 9 1,344 (3,378) 989,721 76,707 10,458 – – – 87,165
 1,527,944 191,646 – 6,148 (29,696) 1,696,042 619,893 42,003 – 7,058 (1,802) 667,152 100,536 12,411 – – (5,271) 107,676 – – – – – – 3,256,473 316,871 9 14,550 (40,147) 3,547,756 981 1,887,730 741,518 2,262,558 2,078,941 68,649 813,971 7,854,348 Properties – Land develop- ment and buildings (2) $’000 Properties – Land $’000 Properties – Leasehold land Plant and equipment $’000 $’000 Pipelines $’000 Others $’000 Assets under construction $’000 Total $’000 981 – – – – 981 2,818,369 – (1,507) 37,907 (2,681) 2,852,088 353,237 – – 60,021 – 413,258 3,580,413 171,684 – 148,315 (33,270) 3,867,142 2,557,956 – – 76,637 (9,532) 2,625,061 170,885 4,296 – 4,274 (14,240) 165,215 311,549 495,778 – (327,154) – 480,173 9,793,390 671,758 (1,507) – (59,723) 10,403,918 – – – – – – – 869,460 64,192 (746) – 3 (1,516) 931,393 69,200 7,507 – – – – 76,707
 1,373,591 185,417 (1,026) 958 (12) (30,984) 1,527,944 586,540 42,019 (4,987) 857 9 (4,545) 619,893 100,791 13,578 – – – (13,833) 100,536 – – – – – – – 2,999,582 312,713 (6,759) 1,815 – (50,878) 3,256,473 981 1,920,695 336,551 2,339,198 2,005,168 64,679 480,173 7,147,445 Group and Board 31 March 2017 Beginning of Additions Adjustments Transfers Disposals
 Beginning of Depreciation charge Adjustments Impairment Transfers Disposals
$587.4 million).
These relate to the water purchase agreements with private entities for the supply of desalinated water and NEWater to the Group under the Design-Build-Own-Operate arrangements.
The Group has recognised these Design-
32 Financial Report 2017/2018 Financial Report 2017/2018 33 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND
 ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 14.
Investment in subsidiaries 15.
Trade and other payables Equity investments at cost The Group had the following subsidiaries as at 31 March 2018 and 2017: BOARD 31 March 2018 31 March 2017 $’000 $’000 100 100 Name PUB Consultants Private Limited ("PUBC") (3) Singapore International Water Week (3) Proportion of ordinary shares directly held by parent Proportion of ordinary shares directly held by the Group Principal activities Country of business/ incorporation 2018 2017 2018 2017 Note 14(a) Singapore 100% 100% 100% 100% Note 14(b) Singapore 100% 100% 100% 100%
100% 100% 100% (a) PUBC was incorporated on 2 August 1991.
Its principal activity is to serve as the commercial arm of the Board and play the facilitative role in assisting the Board to achieve its roles to grow the Singapore water industry and to develop Singapore into a Global Hydrohub.

PUBC harnesses the Board's operational experience and resources to support the Singapore-based companies in their overseas ventures in water related projects.

(b) SIPL was incorporated on 24 September 2007.


Its principal activity is to organise the Singapore International Water Week ("SIWW"), a water event that serves as a global platform to share and co-create innovative water solutions.

Stakeholders from the global water industry gather at SIWW to share business opportunities and showcase the latest water technologies.
SIWW is part of the strategic programme of the Singapore Government to grow the water industry in Singapore and develop water technologies and solutions.
GROUP BOARD Note 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’000 Trade and other payables to: – non-related parties – government (4) – subsidiaries Customer deposits Total trade and other payables carried at amortised cost Less: Net Goods and Services Tax payables Accruals Borrowings Finance lease payables Borrowings Finance lease payables amortised cost 111,986 39,970 – 151,956 81,846 233,802 (3,351) 230,451 181,966 400,000 31,261 843,678 113,788 24,335 – 138,123 82,858 220,981 – 220,981 156,773 – 29,562 407,316 111,330 39,970 – 151,300 81,846 233,146 (3,351) 229,795 181,937 400,000 31,261 842,993 112,305 24,335 15 136,655 82,858 219,513 – 219,513 156,773 – 29,562 405,848
 1,000,000 598,059 1,400,000 629,320 1,000,000 598,059 1,400,000 629,320 16 19 17 19 17 27(f) 2,441,737 2,436,636 2,441,052 2,435,168
2,435,168 Trade and other payables and other liabilities are unsecured and are short-term in nature.
Trade payables are normally settled on credit terms of 21-30 days (2017: 21 – 30 days).
34 Financial Report 2017/2018 Financial Report 2017/2018 35 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 16.
Other liabilities 16.
Other liabilities (continued) GROUP BOARD (a) Provision for pension (continued) Accruals Provision for pension (a) Provision for pension Note 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’000 16(a) 181,966 12,755 194,721 156,773 13,733 170,506 181,937 12,755 194,692 156,773 13,733 170,506
employees upon their retirement.
2001, which is to be borne by the government, is excluded from the amount stated above.
Current service cost Interest expense Re-measurement loss/(gain) Liability extinguished on settlement GROUP AND BOARD Note 31 March 2018 31 March 2017 5(c) 7 $’000 13,733 242 238 87 (1,545) 12,755 $’000 14,584 278 230 (145) (1,214) 13,733
 (i) All pensionable employees will retire at age of 62 years (2017: 62 years).
(ii) Pensionable employees are entitled to select one of the following state-managed pension schemes upon retirement: (c) Lump sum gratuity payment upon retirement (iii) The discount rate for the pension obligation is 2.05% (2017: 1.80%) per annum, which is based on the market yields on the Government bonds.
(iv) The Board’s average share of pension obligation is estimated at a factor of 0.66 (2017: 0.66).
date, assuming all other assumptions were held constant is: Discount rate Retirement age Ratio of PUB and MEWR shares of pension Change in assumption 31 March 2018 31 March 2017 $’000 $’000 5.0% (5.0)% 1.6% (1.6)% 5.0% (5.0)% (57) 58 (152) 150 481 (481) (62) 62 (165) 163
 521 (521) As at 31 March 2018, the average duration of the pension obligation is 5.0 years (2017: 5.4 years).
17.
Finance lease payables Minimum lease payments due – Not later than one year
 Later than one year Total GROUP AND BOARD 31 March 2018 31 March 2017 $’000 $’000 63,976 256,080 626,646 946,702 (317,382) 629,320 63,976 256,080 690,622 1,010,678 (351,796) 658,882 GROUP AND BOARD 31 March 2018 31 March 2017 $’000 31,261 144,388 453,671 598,059 $’000 29,562 136,443 492,877 629,320 629,320 658,882 36 Financial Report 2017/2018 Financial Report 2017/2018 37 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 17.
Finance lease payables (continued) 20.
Provision for asset restoration obligations
leases are in relation to the Group’s water purchase agreements under Design- Build-Own-Operate arrangement as set out in Note 13.
A provision of $12.3 million (2017: $12.6 million) was made to recognise the Board's asset restoration obligations.

The provision was estimated based on the latest available demolition costs of comparable assets and discounted at the market government bond yield rate ranging from 2.05% to 2.76% (2017: 1.76% to 2.47%) which is commensurate with the estimated number of years to restoration.

18.
Deferred income Deferred income pertains to: (i) Operating lease income received in advance in respect of 6 land leases with periods ranging from 20 to 30 years (ii) Amounts received from government bodies and private developers towards the capital outlay for the provision of
21.
Share capital Group and Board 31 March 2018 31 March 2017 No.
of ordinary shares Amount $’000 1,000 1,000 1 1 19.
Borrowings Bonds Bonds Total borrowings GROUP AND BOARD 31 March 2018 31 March 2017 $’000 $’000 400,000 – 1,000,000 1,400,000 1,400,000 1,400,000 GROUP AND BOARD Currency Tenure (years) Interest rate (% per annum) Issue date Maturity date 31 March 2018 31 March 2017 Singapore Dollar Singapore Dollar Singapore Dollar Singapore Dollar 12 15 12 20 3.900 3.520 3.012 3.620 31/08/2006 26/10/2005 12/07/2010 12/10/2007 31/08/2018 26/10/2020 12/07/2022 12/10/2027 Fair value of non-current borrowings Bonds $’000 $’000 400,000 300,000 400,000 300,000 1,400,000 400,000 300,000 400,000 300,000 1,400,000 GROUP AND BOARD 31 March 2018 31 March 2017 $’000 $’000 1,046,027
 1,482,662 All issued ordinary shares are fully paid.
There is no par value for these ordinary shares.

The shares are held by the Minister for Finance, a body corporate incorporated by the Minister for Finance (Incorporation Act (Chapter 183, 1985 Revised Edition)) and who is a shareholder of the Board.

The shares do not carry any voting rights.
The holder of ordinary shares is entitled to receive dividends as and when declared annually, in accordance with Finance 31 March 2018 and 31 March 2017 as the net income after government grants and after contribution to government consolidated fund and taxation will be utilised for capital expenditure.
22.

Capital account The capital account comprises the accumulated transfers from retained earnings which had been utilised for the Board’s property, plant and equipment such as plants and pipelines.

It also includes the amounts paid by government bodies and private developers towards the capital outlay for the provision of utility facilities completed before 1998.
The movement of the capital account represents the retained earnings set aside for the year to meet the Board's capital commitments in accordance with Section 14 of the Public Utilities Act (Chapter 261).
GROUP AND BOARD 31 March 2018 31 March 2017 $’000 6,000 $’000 6,000
(2017: $6.0
(2017: $6.0 million) as at the reporting date.
38 Financial Report 2017/2018 Financial Report 2017/2018 39 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 25.
Related party transactions
with related parties.
The Board supplies water and provides used water services to all entities in Singapore which also includes its subsidiaries and Government agencies (comprising Ministries, Organs of State and other Statutory Boards).

These transactions are conducted in the ordinary course of business.
(b) Key management personnel compensation Key management personnel compensation is as follows: GROUP BOARD 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000 $’000 $’000 9,596 428 10,024 8,558 387 8,945 9,587 427 10,014 8,531 384 8,915 Wages, salaries and Employer’s contribution to CPF (c) Board members' compensation Board members' compensation is as follows: Board Members' allowance GROUP BOARD 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 278 2 280 $’000 236 – 236 $’000 274 2 276 $’000 236 – 236 24.
Net liabilities of trust funds Totalisator Board for the construction of assets owned by the Government as set out in Note 2.19.
The funds remaining as at the reporting date are as follows: Ministry of Environment and Water Resources Singapore Totalisator Board The funds are accounted for as follows: Receipts: – funds received – interest income – liquidated damages – recovery of development expenditure Amount returned to Government Expenditure: – development expenditure – Goods and Services Tax Represented by: Assets: – cash at bank – sundry receivables Liabilities: – sundry creditors and others – tender deposits Net liabilities of trust funds GROUP AND BOARD 31 March 2018 31 March 2017 $’000 (61,174) 1,995 (59,179) $’000 (53,117) 714 (52,403) GROUP AND BOARD 31 March 2018 31 March 2017 $’000 (52,403) 595,013 698 5,435 1,363 602,509 (296) 549,810 (569,680) (39,309) (608,989) (59,179) 33,891 369 34,260 (93,375) (64) (93,439) (59,179) $’000 (36,939) 585,458 468 418 667 587,011 – 550,072 (563,920) (38,555) (602,475) (52,403) 22,563 320 22,883 (74,991) (295) (75,286) (52,403) The assets and liabilities of the trust funds are excluded from the assets and liabilities of the Group and the Board.
40 Financial Report 2017/2018 Financial Report 2017/2018 41 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 26.
Commitments (a) Operating lease commitments – where the Group is a lessee The Group leases a number of government-owned assets from the government under non-cancellable operating lease agreements.

As at reporting date, non-cancellable operating leases contracted for at the reporting date but not recognised as liabilities are as follows: 27.
Financial risk management (continued) (a) Market risk (i) Foreign currency risk The Group's exposure to foreign currency risk arises from its foreign currency contracts for purchase of goods and services and its operations in Malaysia.
The Group's exposures to foreign currencies at the reporting date are as follows: Not later than one year GROUP AND BOARD 31 March 2018 31 March 2017 $’000 11,940 6,411 18,351 $’000 14,384 3,693 18,077
 ended 31 March 2018.
(b) Capital commitments follows: Development projects belonging to the Board Development projects belonging to the Government (funded by trust fund) GROUP AND BOARD 31 March 2018 31 March 2017 $’000 $’000 1,318,481 3,612,459 4,930,940 1,589,488 1,354,207 2,943,695 27.
Financial risk management Financial risk factors The Group is exposed to foreign currency risk, interest rate risk, credit risk and liquidity risk.

The board members have overall responsibility for the establishment and oversight of the Group’s risk management framework.
performance of the Group.
the risks.
Group At 31 March 2018 Financial assets Cash and cash equivalents Trade and other receivables Financial liabilities Trade and other payables At 31 March 2017 Financial assets Cash and cash equivalents Trade and other receivables Financial liabilities Trade and other payables USD $’000 MYR $’000 16 – 16 (81) (65) 17 – 17 (32) (15) 23,908 397 24,305 (5,169) 19,136 10,217 378 10,595 (811) 9,784 42 Financial Report 2017/2018 Financial Report 2017/2018 43 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 27.
Financial risk management (continued) (a) Market risk (continued) (i) Foreign currency risk (continued) The Board’s exposures to foreign currencies at the reporting date are as follows: 27.
Financial risk management (continued) (a) Market risk (continued) (i) Foreign currency risk (continued) Sensitivity analysis USD $’000 MYR $’000 If the USD and MYR strengthen/weaken against the SGD by 5% with all other variables including tax rate being as follows: Board At 31 March 2018 Financial assets Cash and cash equivalents Trade and other receivables Financial liabilities Trade and other payables
 At 31 March 2017 Financial assets Cash and cash equivalents Trade and other receivables Financial liabilities Trade and other payables
 – – – (81) (81) – – – (32) (32) 23,908 397 24,305 (5,169) 19,136 10,217 378 10,595 (811) 9,784 Increase/(Decrease) 31 March 2018 31 March 2017 Net income (after government grants before contribution to government Net income (after government grants before contribution to government 4 (4) (957) 957 5 (5) (957) 957 1 (1) (489) 489 2 (2) (489) 489 Group USD against SGD – Strengthened – Weakened MYR against SGD – Strengthened – Weakened Board USD against SGD – Strengthened – Weakened MYR against SGD – Strengthened – Weakened This analysis is based on foreign currency exchange rate variances that
 the Group considered to be reasonably possible at the end of the reporting period.
44 Financial Report 2017/2018 Financial Report 2017/2018 45 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 27.
Financial risk management (continued) (a) Market risk (continued) (ii) Interest rate risk of changes in market interest rates.
The Group's exposure to interest rate risk relates mainly to the cash with AGD which refers to cash managed by the Accountant- General's Department under the Centralised Liquidity Management as set out in the Accountant- General's Circular No.

4/2009 Centralised Liquidity Management for Statutory Boards and Ministries.
The the deposits are placed and are expected to move in tandem with market interest rate movements.
Effective interest rate per annum Carrying amount Note 31 March 2018 31 March 2017 31 March 2018 31 March 2017 %
 % $’000 $’000 Group Fixed deposits Variable-rate instruments Cash (including cash with AGD) Board Fixed deposits Variable-rate instruments Cash (including cash with AGD) 9 9 9 9 3.27 3.25 21,367 9,220 1.23 1.37 492,071 513,438 674,081 683,301 3.27 3.25 21,367 9,220 1.23 1.37 490,786 512,153 671,761 680,981 27.
Financial risk management (continued) (a) Market risk (continued) (ii) Interest rate risk (continued) Sensitivity analysis An increase/decrease of 50 basis point ("bps") in the interest rates at the reporting date would have increased/ decreased the net income (after government grants before contribution to government consolidated fund and taxation) by the amounts shown below: Increase/(Decrease) 31 March 2018 31 March 2017 Net income (after government grants before contribution to government Net income (after government grants before contribution to government $’000 $’000 Group Variable-rate instruments Cash (including cash with AGD) – Increase – Decrease Board Variable-rate instruments Cash (including cash with AGD) – Increase – Decrease 2,460 (2,460) 2,454 (2,454) 3,370 (3,370) 3,359 (3,359) This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
(b) Credit risk obligations.
The Group's exposure to credit risk arises mainly from trade and other receivables.

Cash which mainly comprised of cash managed by Accountant- General's Department under the Centralised Liquidity Management are placed in Singapore dollar deposits with banks (and cash is made available to the Board upon request) while foreign currency deposits (these are denominated in Malaysian Ringgit) are placed with licensed commercial banks in Malaysia.
For trade receivables, the Group has policies in place to ensure that customers maintain deposits with the Group.
The Group establishes an allowance account that represents its estimate of incurred losses in respect of trade and
46 Financial Report 2017/2018 Financial Report 2017/2018 47 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES
PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 27.
Financial risk management (continued) (b) Credit risk (continued) Excessive risk concentration 27.

Financial risk management (continued) (b) Credit risk (continued) Financial assets that are past due and/or impaired (continued) There is no concentration of credit risk relating to trade receivables due to the large customer base.
Exposure to credit risk maximum exposure to credit risk.
Financial assets that are past due and/or impaired The carrying amount of trade receivables determined to be impaired and the movement in the related allowance for impairment are as follows: Group 31 March 2018 Current Past due < 3 months Past due 3 to 6 months Past due over 6 months 31 March 2017 Current Past due < 3 months Past due 3 to 6 months Past due over 6 months Board 31 March 2018 Current Past due < 3 months Past due 3 to 6 months Past due over 6 months 31 March 2017 Current Past due < 3 months Past due 3 to 6 months Past due over 6 months Gross receivables Allowance (collective) Allowance (individual) Total allowance Net receivables $’000 $’000 $’000 $’000 $’000 99,462 – – – 99,462 15,534 1,312 3,183 119,491 (1,239) (620) – (1,859) (327) (310) (3,085) (3,722) (1,566) (930) (3,085) 13,968 382 98 (5,581) 113,910 73,615 – – – 73,615 13,097 1,184 3,101 90,997 (1,206) (604) – (1,810) (284) (210) (3,101) (3,595) (1,490) (814) (3,101) (5,405) 11,607 370 – 85,592 96,526 – – – 96,526 14,593 1,312 3,091 115,522 (1,239) (620) – (1,859) (327) (310) (3,085) (3,722) (1,566) (930) (3,085) 13,027 382 6 (5,581) 109,941 70,219 – – – 70,219 13,022 1,100 3,101 87,442 (1,206) (604) – (1,810) (284) (210) (3,101) (3,595) (1,490) (814) (3,101) (5,405) 11,532 286 – 82,037 Allowance made Allowance utilised
 Written back GROUP BOARD 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 (5,405) (1,114) 938 – (5,581) $’000 (5,557) (970) 1,058 64 (5,405) $’000 (5,405) (1,114) 938 – (5,581) $’000 (5,493) (970) 1,058 – (5,405) The carrying amount of sundry receivables individually determined to be impaired and the movement in the related
 allowance for impairment are as follows: Group and Board 31 March 2018 Current Past due < 3 months Past due 3 to 6 months Past due over 6 months 31 March 2017 Current Past due < 3 months Past due 3 to 6 months Past due over 6 months Gross receivables $’000 Allowance (individual) $’000 Net receivables $’000 70,420 290 1,939 210 72,859 70,479 46 – 196 70,721 – 70,420 – (1,937) (209) (2,146) – – – (13) (13) 290 2 1 70,713 70,479 46 – 183 70,708 48 Financial Report 2017/2018 Financial Report 2017/2018 49 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 27.
Financial risk management (continued) (b) Credit risk (continued) Financial assets that are past due and/or impaired (continued) 27.
Financial risk management (continued) (c) Liquidity risk (continued) Allowance made Allowance utilised GROUP AND BOARD 31 March 2018 31 March 2017 $’000 (13) (2,143) 10 (2,146) $’000 (17) – 4 (13)
 and 31 March 2017.
(c) Liquidity risk The Group's exposure to liquidity risk is minimal as it adopts prudent liquidity risk management by regularly reviewing
approved and funded by the Government are based on forecasted payment schedule.
Group At 31 March 2018 Trade and other payables Accruals Finance lease payables Borrowings At 31 March 2017 Trade and other payables Accruals Finance lease payables Borrowings Less than 1 year $’000 Between 1 and 5 years $’000 Over 5 years $’000 230,451 181,966 63,976 439,964 220,981 156,773 63,976 49,068 – – 256,080 399,621 – – 256,080 825,358 – – 626,646 749,242 – – 690,622 763,469 Board At 31 March 2018 Trade and other payables Accruals Finance lease payables Borrowings At 31 March 2017 Trade and other payables Accruals Finance lease payables Borrowings (d) Capital management Less than 1 year $’000 Between 1 and 5 years $’000 Over 5 years $’000 229,795 181,937 63,976 439,964 219,513 156,773 63,976 49,068 – – 256,080 399,621 – – 256,080 825,358 – – 626,646 749,242 – – 690,622 763,469
its share capital, retained earnings, capital account
 and borrowings.
2018 and 31 March 2017.
The Group is not subject to any externally imposed capital requirements.
(e) Fair value measurements The Group categorises fair value measurements using a fair value hierarchy that is dependent on the valuation inputs used as follows: Level 1 – Quoted prices (unadjusted) in active market for identical assets or liabilities that the Group can access at the measurement date, Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and Level 3 – Unobservable inputs for the asset or liability.
Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the same level 50 Financial Report 2017/2018 Financial Report 2017/2018 51 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS
 27.
Financial risk management (continued) (e) Fair value measurements (continued) The following table shows an analysis of the Group’s and Board’s assets and liabilities not measured at fair value as at the reporting date but for which fair value is disclosed: Level 1 $’000 Level 2 $’000 Level 3 $’000 Total $’000 Group and Board 31 March 2018 Borrowings 31 March 2017 Borrowings Determination of fair value – – 1,449,147 1,482,662 – – 1,449,147 1,482,662 The fair values of the assets and liabilities, for disclosure purposes, are calculated based on prices at reporting date obtained from Bloomberg (2017: Thomson Reuters).
reasonable approximation of fair value GROUP AND BOARD Note Carrying amount $’000 Fair value $’000 Group and Board 31 March 2018 Borrowings 31 March 2017 Borrowings 19 1,400,000 1,482,662 (f) Financial instruments by category
 GROUP BOARD 31 March 2018 31 March 2017 31 March 2018 31 March 2017 $’000 $’000
 $’000 $’000 Loans and receivables 714,495 848,691 709,890 842,829 Financial liabilities at amortised cost 2,441,737 2,436,636 2,441,052 2,435,168 28.
New or revised accounting standards and interpretations Below are the mandatory standards, amendments and interpretations to existing standards that have been published, and are relevant for the Group’s accounting periods beginning on or after 1 April 2018 and which the Group has not early adopted: (a) SB-FRS 109 Financial instruments (effective for annual periods beginning on or after 1 January 2018)
irrevocable option at inception to present changes in fair value in OCI (FVOCI).
Gains and losses realised on the sale retained earnings.
except for the recognition of fair changes arising from changes in own credit risk.
For liabilities designed at fair value SB-FRS 109 relaxes the requirements for hedge effectiveness by replacing the bright line hedge effectiveness tests.
It requires an economic relationship between the hedged item and hedging instrument and for the ‘hedged ratio’ to be the same as the one management actually use for risk management purposes.
There is also now a new expected credit losses model that replaces the incurred loss impairment model used in SB- contract assets under SB-FRS 115 , lease receivables, loan commitments and
 The new standard also introduces expanded disclosure requirements and changes in presentation.
– Trade and other receivables (b) SB-FRS 115 Revenue from contracts with customers (effective for annual periods beginning on or after 1 January 2018) SB-FRS 115 replaces SB-FRS 11 , SB-FRS 18 , and related interpretations.
Revenue is recognised when a customer obtains control of a good or service.
A customer obtains control when it has that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that
 recognises revenue in accordance with that core principle by applying the following steps: • • • • Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract
 19 1,400,000 1,449,147
 .
52 Financial Report 2017/2018 Financial Report 2017/2018 53 PUBLIC UTILITIES BOARD AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS 28.
New or revised accounting standards and interpretations (continued) (b) SB-FRS 115 Revenue from contracts with customers (effective for annual periods beginning on or after 1 January 2018) (continued) SB-FRS 115 also includes a cohesive set of disclosure requirements that will result in an entity providing users of
(c) SB-FRS 116 Leases (effective for annual periods beginning on or after 1 January 2019) SB-FRS 116 will result in almost all leases being recognised on the balance sheet, as the distinction between operating liability to pay rentals are recognised.
The only exceptions are short-term and low-value leases.
The accounting for Some of the commitments may be covered by the exception for short-term and low-value leases and some commitments may relate to arrangements that will not qualify as leases under SB-FRS 116.
The new standard also introduces expanded disclosure requirements and changes in presentation.
The Group is currently assessing the extent of the commitments as at the reporting date that will result in the 29.
Segment reporting The Group’s chief operating decision-maker comprises the senior management.

The Group has only one reportable operating segment as it operates in the water industry as one business segment in the provision of water and related facilities for the public and majority of its activities are located in Singapore.

The reportable segment is reviewed regularly by the chief operating decision-maker.
54 Financial Report 2017/2018