Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698079185711.pdf (Singapore)
Sentosa Development Corporation ANNUAL REPORT 2017/2018 CONTENT PAGE Sentosa Development Corporation ANNUAL REPORT 2017/2018 Organisational Overview About SDC Vision, Mission, & Star Values Board & Management Team Joint Chairman-CEO Message Year in Review Significant Milestones New Offerings in The State of Fun Significant Events & Programmes Community Engagement & Sustainability Efforts Organisational Excellence Organisational Transformation Award-Winning Offerings Environmental Awards Guest Satisfaction Awards Security Award 04 05 07 09 12 16 21 28 34 34 36 37 39 ORGANISATIONAL OVERVIEW 03 Sentosa Annual Report 2017/2018 ABOUT SDC Sentosa Development Corporation SDC was established on 1 September 1972 as a Statutory Board under the Ministry of Trade and Industry.
Its charter since inception has been to oversee the development, management, marketing and promotion of the island of Sentosa as a resort destination for locals and tourists.

Sentosa is a unique leisure and lifestyle destination with an exciting array of themed attractions, award-winning spa retreats, lush rainforests, golden sandy beaches, resort accommodations, world-renowned championship golf courses, exclusive waterfront residences, and a deep-water yachting marina.
This makes Sentosa a unique and vibrant island resort that can appeal to both leisure and business visitors.

Sentosa is also home to Singapore’s first integrated resort, Resorts World Sentosa (RWS).

RWS operates South East Asia’s first Universal Studios theme park, and the S.E.A.

Aquarium, one of the largest aquariums in the world.
Sentosa Cove Resort Management Sentosa Cove Resort Management Pte Ltd (SCRM) is responsible for the management of Sentosa Cove, which has evolved into an internationally prestigious residential and commercial waterfront district.

It is home to the ONE°15 Marina Club, W Singapore - Sentosa Cove, and Quayside Isle, a lifestyle destination that offers a selection of specially-curated new-to-market restaurants, dining concepts from established groups, and specialty retail stores.
Sentosa Golf Club Reputed as one of Asia’s most exclusive golf clubs, Sentosa Golf Club (SGC) is a brand synonymous with allure and prestige.

As one of the most established golf clubs in Singapore, SGC has some 1,500 members, many of whom are prominent personalities.

The Club manages two award-winning 18- hole, par-72 championship golf courses on the island; The Serapong and The New Tanjong.
SGC hosts the SMBC Singapore Open, where international star players and world-class golf professionals from Asia, Europe and the USA compete for the prize purse of Singapore’s national tournament.

It is also home to the HSBC Women’s World Championship, a marquee women’s golf event that has been dubbed as ‘Asia’s Major’.
One Faber Group Mount Faber Leisure Group Pte Ltd (One Faber Group) operates a suite of leisure and lifestyle services including attractions, guided tour experiences, management of event venues, souvenirs and lifestyle merchandise, as well as F&B operations.

The company’s portfolio includes the Singapore Cable Car, Wings of Time, Sentosa Merlion, Faber Peak Singapore, Spuds & Aprons, Dusk Restaurant & Bar, Good Old Days, Show Bites, FUN Shop, Cable Car Gift Shop, and Faber Licence.
Spanning the hilltop at Mount Faber and Sentosa, One Faber Group’s products are linked by the Singapore Cable Car Sky Network of six stations on two main lines – the Mount Faber Line that connects mainland Singapore to Sentosa, and the Sentosa Line that provides a connection to the island’s western end at Siloso Point.
04 Sentosa Annual Report 2017/2018 VISION, MISSION & STAR VALUES VISION To be the world’s favourite leisure and lifestyle resort destination MISSION To create the Sentosa Experience through outstanding service and unique offerings 05 05 Sentosa Annual Report 2017/2018 VISION, MISSION & STAR VALUES STAR VALUES Sentosa continually strives to enhance its level of service to offer our guests a memorable experience in The State of Fun.
The Sentosa STAR values reflect our commitment to providing service from the heart.

SERVICE Serve from the heart & enjoy it!

TEAMWORK Care for one another & build trust and respect.

ACTING WITH INTEGRITY Be professional & honest.

RESULTS ORIENTED Be innovative & decisive to make things happen.
We recognise that in order for a resort island like Sentosa to be successful, every component in the service chain is crucial - Be it the need to invigorate our people to provide the best service, to constantly innovate our products in the face of increasing competition both locally and regionally, or the need to improve our processes both internally and for guests.
The Sentosa STAR Values reflect that commitment we have made to our guests and frontline staff, known as the island’s service ambassadors, who are always encouraged to go the extra mile for guests.
Sentosa Annual Report 2017/2018 06 Sentosa Annual Report 2017/2018 BOARD MEMBERS (As at 31 March 2018) MOSES LEE Chairman, Sentosa Development Corporation DAVID HENG Advisory Senior Director, Temasek International Pte Ltd EUGENE HO Travel & Transportation Industry Leader, Deloitte South East Asia & Managing Director, Deloitte Consulting Singapore EUGENE LEONG Chief Executive Officer, Early Childhood Development Agency DIANA EE-TAN Chairman, Mount Faber Leisure Group Pte Ltd KOH-LIM WEN GIN Board Member, National Parks Board / Independent Director, Keppel Land Ltd LIM JOO BOON Chairman, Singapore Turf Club KEITH MAGNUS Chief Executive Officer & Executive Director, Evercore Asia (Singapore) Pte Ltd* NGIAM SHIH CHUN Deputy Secretary (Industry), Ministry of Trade and Industry** QUEK SWEE KUAN Chief Executive Officer, Sentosa Development Corporation RITA SOH Managing Director, RDC Architects Pte Ltd RONNY TAN President, Sentosa Golf Club * Completion of term on 31 March 2018.
** Completion of term on 31 January 2018.
LIONEL YEO Chief Executive, Singapore Tourism Board 07 Sentosa Annual Report 2017/2018 SENIOR EXECUTIVE TEAM (SET) MEMBERS (As at 31 March 2018) QUEK SWEE KUAN Chief Executive Officer JACQUELINE TAN Assistant Chief Executive CHIN SAK HIN Assistant Chief Executive & Chief Financial Officer LYNETTE ANG Chief Marketing Officer CHAN MUN WEI Divisional Director, Corporate Planning CHUA SIEW HWI Divisional Director, Finance ANDREW H JOHNSTON General Manager, Sentosa Golf Club THERESA LOW General Counsel KOH PIAK HUAT Divisional Director, Island Operations SOH KENG TAAN Chief Information Officer MARY GERMAINE TAN Divisional Director, Human Resources & Administration WONG SHEAU FONG Divisional Director, Architecture & Land Planning 08 Sentosa Annual Report 2017/2018 JOINT CHAIRMAN - CEO MESSAGE The next stage of growth SDC embarked on several key initiatives in FY2017/18 as part of our continued efforts to realise our vision to become the world’s favourite leisure and lifestyle resort destination.
Playing a crucial role in shaping the island’s future will be the Sentosa 2030 Masterplan, which we have begun charting with a multi-disciplinary consultancy team and relevant stakeholders, as part of the Greater Southern Waterfront precinct.

This is an exciting journey that will take Sentosa to 2030 and beyond.
As part of the Masterplan, SDC will strengthen leisure experiences through the curation of world-class attractions, improving transport connectivity, and enhancing our popular beaches, all the while ensuring efficient land usage, and environmental sustainability.

These efforts also include the revamp of Sentosa’s main north-south pedestrian thoroughfare.

With design work currently in progress, development works are set to begin next year, and will be completed by 2021.
Guests can look forward to scenic views and wider vistas, better accessibility to the beaches, and other fun features like photo points while strolling through the island.

We are firmly committed to providing our guests, both locals and tourists, stakeholders and residents with unique day-to- night leisure experiences.
Laying strong foundations for fun In the nearer term, we continue to lay strong foundations for Sentosa’s growth, by collaborating with our island partners and other corporate partners to bring fun to a new level.

Last year, thrill-seekers got an adrenaline rush, with the arrival of the exhilarating AJ Hackett Sentosa Bungy Jump and Skyline Luge Sentosa’s two new tracks.
Marvel superhero fans meanwhile celebrated the launch of the Marvel 4D Experience at Madame Tussauds Singapore, which comes with the Marvel 4D cinema – the first of its kind in Asia!

We also curated a slew of iconic and new events that showcased Sentosa’s prized beach assets to give our guests unique and enjoyable experiences.
09 Sentosa Annual Report 2017/2018 JOINT CHAIRMAN - CEO MESSAGE Our commitment to social responsibility Underpinning all our initiatives is our commitment to social and environmental responsibility.

This financial year saw the return of our signature community outreach programme, Sentosa Gives, for the seventh year.

With the support of our island partners and staff volunteers, we brought 1,500 underprivileged children from 29 social services organisations into Sentosa for a day of fun.
We are also mindful of our responsibility towards environmental conservation.

One of our various efforts was our participation in World Water Day, through a mesmerising blue light-up of our island.

We also commemorated the third International Year of the Reef with non-profit conservation group, Our Singapore Reefs, and marine community platform, Celebrating Singapore Shores.

We are honoured that our environmental conservation efforts have been recognised at various platforms.
The Marina Industries Association has re-certified Sentosa Cove as being Fish Friendly and a Clean Marina, and we clinched the Skyrise Greenery Award - Special Award (Public Infrastructure) for our Sentosa Express’ vertical greenwall system!
Note of Appreciation It has been a fulfilling year, and on behalf of the Board and Management, we would like to take this opportunity to thank our former board members, Keith Magnus and Ngiam Shih Chun, for the invaluable contributions made during their tenure on the Board.
With Sentosa being named the Best Singapore Destination by TripZilla, and our ranking at the top spot among all Attractions in the Customer Satisfaction Index of Singapore for the second consecutive year, we would also like to express our gratitude to all Sentosians who have worked hard to entrench The State of Fun’s position as the leisure destination of choice!
10 Our golden beaches hosted Southeast Asia’s biggest sand festival – Sentosa Sandsation, which featured larger-than-life sand sculptures, as well as the inaugural Siloso GrillFest and its array of barbequed delights during Feast at Sentosa, a campaign that showcased the island’s diverse dining experiences.

Palawan Beach was transformed into an outdoor playground of mega inflatables and installations, giving the young and young-at-heart Mega Fun during the school holidays.
The area was also the scene of much photo-taking in March, when more than 300 cute inflatables featuring characters from the wildly popular cartoon, We Bare Bears, made the beach their home.

And when the sun went down, we continued to have fun with hugely popular events such as the year- end Siloso Beach Party and ZoukOut, as well as fresh offerings like Bright Nights at Sentosa, which featured photo-worthy light installations during Pop Up Nights.
Pop Up Nights was in fact shortlisted as a Finalist in the 2018 Singapore Tourism Awards category of Best Marketing Idea!

Over at Sentosa Cove Village, we welcomed more than 14,000 guests during the Singapore Yacht Show, while the Sentosa Golf Club continued to be the choice venue for the world’s best golfers, with Sergio Garcia and Michelle Wie winning the coveted SMBC Singapore Open and HSBC Women’s World Championship titles respectively.
Enhancing our connections with guests Apart from enhancing our leisure offerings, we have improved our technology and transport solutions to make the guest experience even more enjoyable.

Our refreshed MySentosa App now comes with a GPS-enabled map with turn-by-turn directions, a customisable itinerary, facts about Sentosa’s attractions, and the option to beat the queue by purchasing tickets on-the-go.
For guests who are more inclined to go off the beaten track, they can do so by trying out the Interactive Trails that allow them to win attractive prizes along the way.

At the back end, the app allows us to gain insights on our guests’ preferences and journeys, which enables us to further improve visitors’ experience.

We have also improved inter- and intra-island connectivity.
For a start, we have upgraded the Sentosa Express signalling system to allow an increase in train frequency and passenger capacity.

SBS Transit’s Bus Service 123 was also extended into Sentosa to directly connect central Singapore to Sentosa, and the Sentosa Gateway Tunnel was opened to improve vehicular traffic flow out of Sentosa.
Together with the Ministry of Transport and ST Engineering Land Systems, we will soon pilot an autonomous mobility-on-demand service which will enhance intra-island connectivity for our guests.

Sentosa Annual Report 2017/2018 YEAR IN REVIEW 11 Sentosa Annual Report 2017/2018 With the diverse array of unique leisure experiences and exciting developments in Sentosa, the island welcomed 19.1 million guests in FY2017/18.
Fun is set to reach even greater heights in the coming years as SDC continues to build on past successes!

Shaping Sentosa’s Future Guests can look forward to scenic views and wider vistas, better accessibility to the beaches, and other fun features like photo points while strolling through the island, when the rejuvenation of Sentosa’s main north-south pedestrian thoroughfare is completed by 2021.
Spanning some 12 hectares, the thoroughfare along Sentosa’s spine is the key link between various transport nodes and attractions, bringing guests from Resorts World Sentosa all the way to the island’s golden, sandy beaches.

Expect a brand new experience with more intuitive wayfinding, enhanced accessibility, and wider vistas alongside refreshed design elements that are unique, fun, and interactive.
The redevelopment of the north-south pedestrian thoroughfare is a key near-term project that will pave the way for the island’s next phase of growth.

With Sentosa marking the milestone of its 45th anniversary last year, SDC has also embarked on developing the Sentosa 2030 Masterplan.
The Masterplan will reinforce The State of Fun’s position as a world-class leisure destination by enhancing the attractiveness of our various offerings and transport connectivity, while ensuring the efficient use of land and environmental sustainability.

Entering Sentosa is Now as Easy as (Bus) 123!

It is now even easier to access Sentosa, following the extension of SBS Transit’s Bus 123 into the island’s Beach Station transport hub since July 2017.
Connecting guests directly to The State of Fun from multiple points in central Singapore, including major MRT stations, Bus 123’s passengers need only pay the prevailing distance-based fare for these bus rides.

Bus 123 adds to the myriad of travel options for guests visiting Sentosa, who can also choose to hop on the Sentosa Express, stroll in for free, cycle, drive or even fly in via the cable car.

Once on the island, guests enjoy free rides on the Sentosa Express, Beach Trams and Sentosa Buses.
12 Sentosa Annual Report 2017/2018SIGNIFICANT MILESTONES A Smoother Journey As part of various collaborations with partners to ensure smooth traffic flow around Sentosa, the Sentosa Gateway Tunnel was opened by the Land Transport Authority in April 2017.

The tunnel is a one-way route that connects outbound traffic from Sentosa directly to Keppel Road and Lower Delta Road.

With its opening, guests, residents and stakeholders now enjoy smoother journeys as they exit the island.
Resorts World Sentosa Remains at the Top Attesting to its top position in the region, Resorts World Sentosa was named the Best Integrated Resort in Asia Pacific for the seventh consecutive year at the 28th TTG Travel Awards in 2017.

In the TripAdvisor Travellers’ Choice awards, Universal Studios Singapore was also ranked as Asia’s best amusement park for the fourth year running, while Adventure Cove Waterpark was voted among the Top 10 Waterparks in Asia for the third year in a row.
Universal Studios Singapore’s marquee event, Halloween Horror Nights, clinched the Best Leisure Event award at Singapore Tourism Awards 2017 for the third consecutive year.

13 Sentosa Annual Report 2017/2018SIGNIFICANT MILESTONES Siloso Beach Resort Strengthens Commitment to Sustainability Siloso Beach Resort’s (SBR) environmental credentials received a further boost when it was conferred the Asia Responsible Entrepreneurship Award (Green Leadership Category) in June 2017.
The award adds another feather in the cap for SBR, which has kept Sentosa’s flag flying high with various environmental awards and certifications recognising the hotel’s efforts to preserve its surroundings and the natural habitat.

As part of its community outreach, SBR has also signed a Memorandum of Understanding with the Institute of Technical Education to strengthen their collaboration on sustainability projects.
Mega Adventure Park Displays Mega Excellence Mega Adventure Park has received its fifth consecutive TripAdvisor 2017 Certificate of Excellence award, which celebrates businesses that have consistently delivered exceptional customer service.

14 Sentosa Annual Report 2017/2018SIGNIFICANT MILESTONES ONE°15 Marina Club Celebrates a Decade of Making Waves ONE°15 Marina Club commemorated its 10th anniversary on 10 September 2017 with a carnival that attracted close to 2,000 guests.
Marking the milestone, guests were treated to a variety of activities, including yacht rides, a six-metre-tall water blob tower, pool floats and loungers, balloon sculpting, and a bouncy castle.

Accompanying the carnival, too, was a marketplace packed with an exciting range of food, fashion, and artisanal products.

15 Sentosa Annual Report 2017/2018SIGNIFICANT MILESTONES Eat, Play, Explore and Indulge at Sentosa and Faber Peak Singapore with the diverse array of unique leisure offerings!
Eat Dusk Restaurant & Bar Debuts at Faber Peak Singapore Singapore’s dining scene reached new heights in December 2017 with the launch of One Faber Group’s Dusk Restaurant & Bar.

Located 100 metres above sea level at Faber Peak Singapore, Dusk Restaurant & Bar is surrounded by lush rainforest and offers a view of splendid sunsets.
While there, guests can savour food created by Executive Chef Kenny Yeo, who has over 30 years of French culinary experience, as well as modern European tapas and a curated selection of wines and signature cocktails.
Eat 16 Panamericana Sizzles at Sentosa Golf Club to life the With a strong focus on quality produce, Panamericana brings rich diversity of cultures and cuisines found in the 14 countries along the sprawling 50,000km of the Pan-American Highway, which stretches through the North, Central and South Americas.
Located in the lush surroundings of Sentosa Golf Club, the 6,000 sq ft restaurant began welcoming diners in April 2018 with its bright open space and rustic “colonial chic” vibe, as well as a breezy terrace and garden with sweeping panoramic views.
Sentosa Annual Report 2017/2018NEW OFFERINGS IN THE STATE OF FUN Eat Play TEPPAN by Chef Yonemura Wows Diners at Resorts World Sentosa The diverse array of dining options in Sentosa continued to expand with the unveiling of TEPPAN by Chef Yonemura at Resorts World Sentosa in December 2017.
Headlined by Celebrity Chef Masayasu Yonemura who is renowned for his innovative French-Japanese cuisine at his iconic Michelin-starred restaurant in Kyoto, TEPPAN by Chef Yonemura wows diners with a brand new three-in-one theatrical dining concept that combines the artistry and showmanship of teppanyaki, cocktail mixology and flambé desserts.
AJ Hackett Sentosa Thrills Adrenaline Seekers With the opening of AJ Hackett Sentosa in November 2017, Sentosa has become one of the rare destinations in the region to offer thrill-seekers a combination of adrenaline-pumping activities like bungy jumping and duo giant swings.
Home to Singapore’s first and only bungy tower, which stands at 50 metre-tall along Siloso Beach, AJ Hackett Sentosa also allows guests to experience height without the need for a harness – just walk on its 42 metre -long Skybridge with see-through sections.

Plus, with the al-fresco AJ’s Bar and Beach Dining, AJ Hackett Sentosa offers a unique F&B experience and a variety of food including tapas, mains, and drinks.
AJ’s Bar and Beach Dining further comes with a chill-out area on the ground floor where guests can grab a pint and cheer their friends on as they take the plunge from up above.

17 Sentosa Annual Report 2017/2018NEW OFFERINGS IN THE STATE OF FUN Play Play New Tracks at Skyline Luge Sentosa Rolled out in October 2017, Skyline Luge Sentosa’s two new tracks and a second Skyride have become the scene of more excitement in The State of Fun.
In addition to the first two Jungle and Dragon trails, guests can now dive into fresh hairpin corners and exciting slopes as they zoom down the 658 metre-long Expedition and 638 metre-long Kupu Kupu (which means butterfly in Malay).

Spanning 315 metres and suspended up to 16 metres above ground, the new Skyride also offers riders a bird’s eye view of Sentosa.
Madame Tussauds Singapore Offers New Star-Studded Experiences Madame Tussauds Singapore has launched three new exciting experiences that will leave fans starry-eyed: the International Indian Film Academy (IIFA) Experience, Virtual Reality (VR) Racing Experience, and Marvel 4D Experience.

• The IIFA Experience was created in collaboration with the IIFA, and its launch in April 2017 saw Bollywood legend Anil Kapoor unveiling his own wax figure in Sentosa.
Bollywood fans can now immerse themselves in the glitzy atmosphere of the iconic awards ceremony and join their favourite stars at the special zone.

Not only can guests walk the green carpet and accept an award on stage, they can even dance to the beat in front of a screen, in augmented reality!

• Introduced in July 2017, the VR Racing Experience features two life-size racing cars, which come with VR Head Mounted Display technology and a motion seat system that offers an exhilarating race experience.
Thanks to its realism, fans and racing aficionados are now able to see the race through the eyes of their favourite Formula One stars!

• The immersive Marvel 4D Experience is now home to Marvel’s beloved Super Heroes!

Launched in December 2017, the experience introduces Spider-Man, Iron Man and Captain America within highly interactive and innovative sets.
It also includes Asia’s first Marvel 4D movie, which transports guests into the heart of an action-packed feature, where the heroes take on the cunning Doctor Doom in Singapore.
18 Sentosa Annual Report 2017/2018NEW OFFERINGS IN THE STATE OF FUN Play Reality Gets Augmented at Trick Eye Museum Singapore With the launch of its new Augmented Reality (AR) application in May 2017, Trick Eye Museum Singapore became the first three dimensional art museum in the country to fully integrate its visitor experience with AR technology.

Art exhibits viewed through the “TrickEye-Singapore” app now come alive with AR graphics, animation and sound effects.
Not only are visitors able to take photos with amazing 3D optical illusions, they also have the added option of making videos while interacting with AR characters!

19 Sentosa Annual Report 2017/2018NEW OFFERINGS IN THE STATE OF FUN Explore Explore Revamped Maritime Experiential Museum Opens Resorts World Sentosa has unveiled the newly-refurbished Maritime Experiential Museum.
Welcoming guests since December 2017, the revamped museum features brand new interactive hands-on exhibits and multi-media edutainment content across 15 thematic and immersive galleries.

Singapore’s History Comes to Life at Surrender Chambers The revamped Surrender Chambers at Fort Siloso reopened with a refreshed exhibition in June 2017, marking the 75th anniversary of the fall of Singapore during World War II.
Among various highlights, the refreshed exhibition features interactive story-telling through enhanced graphics, visual and audio elements integrated with the iconic waxworks of Japanese and British soldiers at the surrender ceremony in 1942.

Admission to the Surrender Chambers – and Fort Siloso – is now free!
20 Sentosa Annual Report 2017/2018NEW OFFERINGS IN THE STATE OF FUN Eat Eat Feast at Sentosa with The Inaugural Siloso Grillfest Siloso Grillfest, Singapore’s only beachside food street, hit Sentosa’s shores in April 2017, offering some 1km worth of food and beverage stalls along Siloso Beach, including Singapore’s longest brick BBQ pit.

Guests enjoyed a spread of classic and contemporary BBQ creations and international cuisine from various F&B operators based within and beyond Sentosa.
With live music performances to boot, Siloso Grillfest delighted guests over two weekends.

It was the key event in the inaugural Feast at Sentosa campaign that highlighted the island’s array of F&B offerings.
Resorts World Sentosa Presents RWS Street Eats, The GREAT Food Festival and MICHELIN Guide Street Food Festival By seamlessly integrating food and entertainment, Resorts World Sentosa (RWS) pioneered a gourmet visitor experience with three successful lifestyle events: MICHELIN Guide Street Food Festival, RWS Street Eats and The GREAT Food Festival in April, August and September 2017 respectively.
Featuring an array of award-winning cuisines from celebrity chefs in RWS and around the world, as well as street food from renowned hawkers in Southeast Asia, the events attracted more than 120,000 guests, distinguishing RWS as a leading dining destination in the Asia Pacific.
21 Sentosa Annual Report 2017/2018SIGNIFICANT EVENTS & PROGRAMMES Play Play Having Mega Fun at Sentosa The family-friendly Palawan Beach was transformed into an outdoor playground of mega inflatables and installations as Sentosa celebrated the June 2017 school holidays!
Part of the Mega Fun at Sentosa campaign, guests thoroughly enjoyed themselves by bouncing on giant inflatables, diving into a mega ball pool with more than 200,000 balls, wandering through an inflatable maze, as well as challenging themselves on the traversing wall and balancing beam while having lots of water fun – all for free!
FunFest with We Bare Bears During the March 2018 school holidays, both the young and young-at-heart got up close and personal with the wildly popular characters from Cartoon Network’s We Bare Bears!

A sea of more than 300 We Bare Bears inflatables and a 50-feet tall “Bearstack” welcomed guests, filling up the entire stretch of Palawan Beach next to mega inflatables and installations in another edition of Sentosa FunFest.
22 Sentosa Annual Report 2017/2018SIGNIFICANT EVENTS & PROGRAMMES Play Play Party On at Siloso Beach Despite a downpour, over 13,000 revellers partied into the night and ushered in 2018 at the 11th Siloso Beach Party, amid an enthralling display of fireworks, awe-inspiring pyrotechnics, and 12 hours of non-stop dance hits and entertainment.
Meanwhile, the annual ZoukOut returned for the 17th year from 8 to 9 December 2017 and attracted over 40,000 partygoers, who danced to the tunes of world-renowned DJs including Marshmello, Axwell Ingrosso, and Flume.

Ola Beach Club Hosts Inaugural JetSurf SEA Launch Party Ola Beach Club and JetSurf Southeast Asia jointly hosted Singapore’s first-ever motorised surfboard race in August 2017.
With the world’s JetSurf heavyweights pitted against each other in a grueling sea circuit to clinch the coveted championship, Lukas Zahorsky from Czech Republic emerged victorious.

The celebrations culminated at a rave party powered by renowned headliner DJ Showtek from Holland, along with an exciting line-up featuring DJ Otto Knows of Sweden, EDM sensation Djivy of Korea, and popular local band 53A.
23 Sentosa Annual Report 2017/2018SIGNIFICANT EVENTS & PROGRAMMES Explore Explore Southeast Asia’s Largest Sand Festival Hits Sentosa’s Shores The State of Fun welcomed Southeast Asia’s biggest sand festival, Sandsational Fun at Sentosa, over a three-week period in September 2017.

Its anchor event, Sentosa Sandsation 2017, featured more than 30 intricately-carved and larger-than-life sand sculptures of some five metres in height.
Spread across 2,400 square metres on Siloso Beach, the exhibition comprised three zones showcasing different experiences, including uniquely Singaporean sand sculptures.

Sentosa Sandsation 2017 also hosted 14 world-renowned sand masters from 13 nations, who competed against each other to create sand works around the theme of ‘Imagination’.

Portugal’s Pedro Mira was crowned the winner of the Sentosa International Sand Sculpting Championship, clinching the Golden Shovel Award and cash prize of USD 5,000.
Meanwhile, Togo’s Bob Atisso and Poland’s Wiaczeslaw Borecki were presented with the Silver Shovel Award (USD 2,500) and the Bronze Shovel Award (USD 1,500) respectively.

Singapore Yacht Show 2017 Attracts 14,000 The seventh edition of the Singapore Yacht Show in April 2017 welcomed more than 14,000 visitors, highlighting Sentosa’s and Asia’s growing importance in the global yachting and boating industry.
Over a four-day period, Asia’s leading yacht and luxury show at ONE°15 Marina Club featured the world’s finest superyachts and international yacht brands.

It also treated guests to a glamorous programme of supercar parades, fashion shows, yacht parties, gourmet food stalls and an array of pop-up bars.
24 Sentosa Annual Report 2017/2018SIGNIFICANT EVENTS & PROGRAMMES Explore Indulge World’s Top Golfers Descend on Sentosa Golf Club Golfing enthusiasts were in for several treats over the year as Sentosa Golf Club became the battlefield for the prestigious SMBC Singapore Open 2018, HSBC Women’s Championship 2018 and first-ever Women’s Amateur Asia- Pacific Golf Championship titles.
• Held in January 2018, the SMBC Singapore Open boasted a stellar field including reigning Masters champion Sergio Garcia from Spain, South Africa’s Louis Oosthuizen, Japan’s Ryo Ishikawa and the United States of America’s Pat Perez.

Sergio Garcia eventually emerged victorious with an exquisite final round 68 to win the prestigious title by a comfortable five strokes.

The SMBC Singapore Open was played at the Serapong course, ranked No.
79 among the World’s 100 Greatest Golf Courses by Golf Digest in 2018.

• Sentosa Golf Club was also the scene of the first-ever Women’s Amateur Asia Pacific golf championship in February 2018.

Held on the New Tanjong course, the tournament saw 15-year-old Thai player, Atthaya Thitikul, secure a dramatic victory by winning a four-way playoff.

An emerging golfing star, Atthaya is the youngest player to have won on the Ladies European Tour.
As the winner, Atthaya was invited to play in the HSBC Women’s Championship 2018, the ANA Inspiration and the Ricoh Women’s British Open.

• The HSBC Women’s World Championship 2018 in March 2018 featured all of the world’s top-ten ranked players including China’s Feng Shanshan, South Korea’s Park Inbee and Ryu So Yeon, United States of America’s Lexi Thompson and Michelle Wie.

Michelle Wie eventually put up a sensational performance to win the title at the New Tanjong course.
25 Natural Treasures of Sentosa With 40 hectares of protected nature areas, more than 20 heritage trees, over 100 recorded bird species, and a variety of walking and cycling trails on the island, Sentosa is a haven for nature lovers.

To bring guests closer to the island’s hidden gems, a slew of free nature activities was launched over the year, including the inaugural Siloso Headland Intertidal Programme.
The guided programme explores Tanjong Rimau – one of Singapore’s last remaining coastal cliffs and rocky shores.

Home to corals, seagrass and a wide variety of marine wildlife, Tanjong Rimau also boasts beautiful landscapes with an original and age- old rock outcrop.
Sentosa Annual Report 2017/2018SIGNIFICANT EVENTS & PROGRAMMES Indulge Indulge Sentosa Hosts Singapore’s First South East Asian Beach Volleyball Championships Sports fans had even more to look forward to in September 2017 when Singapore hosted the South East Asian Beach Volleyball Championships for the first time at Palawan Beach.

The tournament saw a total of 30 teams, comprising both women’s and men’s pairs from eight countries, vying for the coveted gold medal.
Indonesia eventually pulled off stunning victories in the final showdowns to make a clean sweep of both the men’s and women’s titles.

Singapore Fashion Awards 2017 at W Singapore - Sentosa Cove W Singapore - Sentosa Cove and the Textile and Fashion Federation jointly hosted the Singapore Fashion Awards 2017 in November 2017.
With a diverse range of creative fashion heavyweights, the Singapore Fashion Awards was not only a platform to acknowledge the accomplishments and hard work of local talents, but also a purposeful step in placing Singapore on the fashion global map.
26 Sentosa Annual Report 2017/2018SIGNIFICANT EVENTS & PROGRAMMES Indulge Tanjong Beach Club Hosts Singapore’s First-Ever Silent Cinema The inaugural Peroni Sunset Cinema on Tanjong Beach, the first-ever open-air silent cinema event in Singapore, was a truly memorable experience for guests in May 2017.

Apart from an Instagram-worthy tropical beach setting, the unique movie experience came complete with award-winning films, DJs, coastal cuisine and sunset drinks.
27 Sentosa Annual Report 2017/2018SIGNIFICANT EVENTS & PROGRAMMES Sentosa Gives 2018 More than 1,500 underprivileged children and their families enjoyed a fun-filled Sentosa Experience in March 2018, following the launch of Sentosa Gives 2018, SDC’s signature community outreach programme.
Into its seventh year, Sentosa Gives 2018 treated beneficiaries from 29 social service organisations to a fun day out at some of Sentosa’s most popular attractions, including KidZania Singapore, Madame Tussauds Singapore and Skyline Luge Sentosa, accompanied by over 100 hosts from SDC and island business partners.
Hair for Hope 2017 Standing in solidarity with childhood cancer patients and their families, SDC once again participated in Hair for Hope, the Children’s Cancer Foundation’s signature head-shaving event that raises funds and awareness of childhood cancer.

Thanks to the generous efforts of staff, SDC raised $17,376 for Hair for Hope 2017 in July 2017.
28 Sentosa Annual Report 2017/2018COMMUNITY ENGAGEMENT& SUSTAINABILITY EFFORTS S.E.L.F Programme Over the year, more than 300 Sentosians, island partners and non-governmental organisations such as the Public Hygiene Council and International Coastal Cleanup Singapore, participated in SDC litter-free initiative, the Sentosa Embraces Litter Free (S.E.L.F) programme.
The regular programme aims to cultivate a strong sense of environmental ownership and culture of keeping Sentosa litter-free amongst stakeholders, as part of the ‘Keep Clean, Singapore!’ movement.

Held in June 2017, September 2017, and March 2018, the voluntary S.E.L.F programme saw staff going out of the office and making the effort to pick litter at Siloso Beach, Imbiah Nature Trails, and Tanjong Rimau.
World Water Day To mark World Water Day on 22 March 2018, the island’s iconic landmarks such as the Sentosa Merlion, Sentosa Gateway Towers, Resorts World Sentosa and Sentosa Boardwalk were lit up in blue as a show of Sentosa’s commitment towards water sustainability and its support for water conservation.

The United Nations has designated 22 March as World Water Day to focus global attention on the importance of water, a critical resource that should be cherished and protected.
29 Sentosa Annual Report 2017/2018COMMUNITY ENGAGEMENT& SUSTAINABILITY EFFORTS Protecting Endangered Hawksbill Turtles SDC is proud to have played a key role in contributing to the world’s population of endangered Hawksbill turtles, following the discovery of a nest at Tanjong Beach in November 2017.
In line with SDC’s commitment to environmental sustainability, various measures were put in place to ensure the safety of the Hawksbill turtle nest, to protect the eggs from natural predators like monitor lizards and crabs.

SDC further worked closely with the National Parks Board to monitor the eggs daily during their incubation period.

In January 2018, 111 endangered hawksbill turtles emerged from the nest and made their way into the waters!
The Fun Odyssea: Sentosa Celebrates the International Year of the Reef To raise awareness for marine conservation and to encourage such efforts, 26 marine interest groups, conservation and research organisations including Our Singapore Reefs and Celebrating Singapore Shores linked up with SDC to jointly celebrate the third International Year of the Reef in Sentosa.
Held at the Palawan Pirate Ship from 17 to 18 March 2018, The Fun Odyssea was a free celebratory event that offered insights into Singapore’s shores, marine biodiversity and environmental issues through hands-on activities, interactive booths, and movie screenings.

The opening ceremony was graced by Guest-of-Honour, Mr Andrew Tan, Chief Executive of Maritime and Port Authority of Singapore.
Guests at the event also had the chance to sign up for the free guided intertidal tours to the unique Siloso Headland, which is home to corals, seagrass, and a wide variety of marine life.

30 Sentosa Annual Report 2017/2018COMMUNITY ENGAGEMENT& SUSTAINABILITY EFFORTS Ensuring Guests’ Safety and Wellbeing With some 19 million tourists and locals visiting Sentosa annually, the safety and wellbeing of guests is of paramount importance to SDC.
As such, over the past year, SDC continued to work closely with various state agencies and its island partners to ensure that the island stands ready to respond to any emergency.

• To reinforce the importance of bringing businesses in the community together during emergencies and to boost incident preparedness and response during peacetime, SDC, the Singapore Police Force and Singapore Civil Defence Force participated in Exercise Heartbeat in January 2018.
The exercise involved more than 200 people from the various agencies responding to a simulated attack at KidZania Singapore.

Ensuring Guests’ Safety and Wellbeing • Exercise Heartbeat was an example of SDC’s collaborations with various government agencies to enhance the island’s resilience against emergencies, in line with the national SGSecure movement that sensitises, trains, and mobilises the community to prevent and respond to threats.
SDC’s participation in such exercises are part of the Sentosa Resilience Framework, which was introduced in 2011 to continuously strengthen the island’s emergency preparedness through structured drills and training for staff of SDC, island partners, and other stakeholders.
(continues on next page) 31 Sentosa Annual Report 2017/2018COMMUNITY ENGAGEMENT& SUSTAINABILITY EFFORTS Ensuring Guests’ Safety and Wellbeing • The seventh edition of SDC’s annual crisis management exercise, Exercise Merlion, was held in September 2017 as part of continuous efforts to strengthen SDC’s incident preparedness under the Sentosa Resilience Framework.
The exercise involved all levels of the organisation including senior management, who underwent drills to validate robust frameworks and skills on crisis management.

The exercise also saw the participation of state agencies and major island partners.
Sentosa Golf Club Contributes to Charity and Sustainability As one of the most established golf clubs in Singapore, Sentosa Golf Club (SGC) has continued to play an active role in supporting the disadvantaged and contributing to environmental sustainability over the past year.

• SGC raised a total of $200,000 for the beneficiaries of Arc Children’s Centre and Assisi Hospice in a charity fundraising drive organised in conjunction with the opening of the New Tanjong course.
The funds were presented to the two charities in May 2017, following a fundraising effort that encompasses several activities.

These included the sale of charity golf games, auction of limited edition golfing paraphernalia, as well as donations from corporate partners, with the objective of garnering support for the patients under the care of the two charity organisations.
• SGC’s year-long golf sustainability effort #KEEPITGREEN kicked off in January 2018 to raise awareness among young people in Singapore and Asia to the need for sustainable practices in golf.

In conjunction with the Singapore Golf Association, SGC also donated a free round of golf to local youngsters for every ‘Green in Regulation’ that Asian Tour No.

1 golfer, Gavin Green, hit throughout the week of the SMBC Singapore Open 2018.
32 Sentosa Annual Report 2017/2018COMMUNITY ENGAGEMENT& SUSTAINABILITY EFFORTS ORGANISATIONAL EXCELLENCE 33 Sentosa Annual Report 2017/2018 Organisational Transformation to Achieve Greater Excellence As part of continued efforts to realise the vision for Sentosa to become the world’s favourite leisure and lifestyle resort destination, SDC re-organised and established stronger synergies across its different corporate and business functions with effect from 1 April 2017, sharpening its focus on corporate strategies, enhancing guest experiences and welcoming more guests to Sentosa.
The re-organisation has brought about the formation of a new Corporate and Marketing Group (CMG) comprising the Finance, Corporate Planning, Legal, Information Technology, Human Resources and Administration Divisions, as well as the Sentosa Golf Club.
The CMG also includes a new integrated Marketing Division that has brought together SDC’s branding, communications, business promotion, guest services, sales & marketing, as well as events & programming functions, which will together collaborate with island partners to provide a more streamlined, guest-centric approach in promoting the various offerings across Sentosa.
Besides the CMG, SDC’s Island Investment, Property & Projects Development, as well as Island Operations Divisions, have been grouped together under the new Infrastructure, Investment and Island Operations Group (III), which also includes Sentosa Cove Resort Management.

The formation of III has paved the way for SDC to achieve higher planning and operational efficiencies, thereby bringing greater value to Sentosa’s guests and partners.
At the same time, SDC’s commercial activities have been consolidated under the One Faber Group (1FG).

Operating as an autonomous entity reporting to its own Board of Directors, 1FG manages Faber Peak Singapore, the Singapore Cable Car Sky Network, Sentosa Merlion, Wings of Time, membership programme Faber Licence, as well as retail and F&B businesses at Mount Faber and Sentosa.
Sentosa Bags Tripzilla Excellence Awards 2017 Sentosa has scored multiple wins at the prestigious TripZilla Excellence Awards 2017.

Not only was Sentosa named the Best Singapore Destination, two attractions on the island - AJ Hackett Sentosa and Butterfly Park & Insect Kingdom - were named Best New Attraction and Best Nature Encounter respectively, while the Amara Sanctuary Resort Sentosa hotel was named Best For Staycation.
The prestigious TripZilla Excellence Awards honours the industry’s best travel companies and organisations for service excellence, outstanding business practices, and for bringing innovative travel to consumers.

34 Sentosa Annual Report 2017/2018ORGANISATIONALTRANSFORMATIONAWARD-WINNINGOFFERINGS Sentosa Cove Gets Recognised With 5 Golds Sentosa Golf Club on a winning streak Sentosa Cove has once again been accredited as a 5-Gold Anchor facility by the Marina Industries Association of Australia.
This prestigious distinction marks yet another milestone for the 117-hectare waterfront residential precinct since it first achieved the accolade in 2011 as the world’s first 5-Gold Anchor Residential Canal Estate Marina.

Sentosa Golf Club has continued its winning ways by scooping up several wins in FY2017/18, reinforcing its top status among golf aficionados.
• The Serapong course was ranked 79th among the World’s 100 Greatest Golf Courses by Golf Digest in 2018, and it remains the only Singapore golf course that has clinched a position in the prestigious ranking’s history.

• In a rare double accolade for Sentosa Golf Club’s golf courses, The Serapong and the New Tanjong have also been placed at 1st and 2nd spots in the 2017 Singapore Golf Course Rankings by Golf Digest.
(continues on next page) 35 Sentosa Annual Report 2017/2018AWARD-WINNINGOFFERINGS Sentosa Golf Club on a winning streak • Sentosa Golf Club scooped a major win at the Asian Tour’s Annual Awards with the Serapong course, which was named Best Course of the Year for the 2017 season.

• Sentosa Golf Club was named the Best Golf Course in Singapore for the 11th consecutive year at the 2017 Asian Golf Awards.
Sentosa Express Wins Skyrise Greenery Award The Sentosa Express has clinched the Special Award (Public Infrastructure) at the 2017 Skyrise Greenery Awards.

Conferred by the National Parks Board, the award recognises the innovative vertical greenwall system that is incorporated into the pillars of the Sentosa Express train track along the Sentosa Gateway.
The vertical greenwall reduces the urban heat effect and blends in seamlessly with Sentosa’s lush greenery and tropical environment, while also enhancing the biodiversity of the island.
36 Sentosa Annual Report 2017/2018AWARD-WINNINGOFFERINGSENVIRONMENTALAWARDS Best Happy Toilet of 2017 Topping the Customer Satisfaction Index of Singapore Once Again Among the 42 winners in the ninth edition of the Let’s Observe Ourselves (LOO) Awards, the Sentosa Beach Station restroom was a cut above the rest – it has been accorded the status of Best Happy Toilet of the Year 2017 by the Restroom Association of Singapore (RAS).
Apart from SDC’s cleaning regime, Sentosa’s restrooms are also built with green design and features in mind, which include the integration of indoor plants, cross-ventilation, half-flushes, accessibility installations, as well as child-friendly cubicles.

Currently, seven toilets at the Beach Station, Imbiah Station, Imbiah Lookout, Wings of Time, and Palawan Kidz City are certified Happy Toilets.
In 2017, SDC further improved on hygiene and the guest experience in restrooms by introducing new features such as an ozonated water mechanism that not only minimises water usage, but also removes odour and acts as a natural disinfectant.

HEPA filtration hand dryers have also been introduced to reduce the usage of liquid hand soap, while achieving even better hygiene.
Sentosa has clinched the top spot at the Customer Satisfaction Index of Singapore (CSISG) for the second consecutive year, garnering a total of 74.9 points and surpassing the previous year’s score of 74.3.

Released in November 2017, this result marks Sentosa’s best performance in the Attractions sub-sector of the CSISG and is testament to the dedication and commitment of Sentosa’s staff in serving its guests.
37 Sentosa Annual Report 2017/2018ENVIRONMENTALAWARDSGUEST SATISFACTION AWARDS Excellent Service Awards 2017 Organised by the Association of Singapore Attractions and SPRING Singapore, the Excellent Service Award (EXSA) is a national accolade that recognises individuals who have delivered quality service their respective sectors, and to honour their commitment towards service excellence.
A total of 133 staff from SDC were awarded the EXSA in 2017, including one Super Star winner, as well as 42 Silver, 51 Gold and 39 Star award recipients.

Mark Anthony Alejo from One Faber Group was our Super Star award winner.

in Sentosa Goes the Extra Mile for Guests To acknowledge Sentosians who have gone the extra mile to wow and delight Sentosa’s guests, a total of 21 staff from SDC, One Faber Group (1FG) and other island partners were recognised at SDC’s seventh CEO STAR Awards in September 2018.
Among the recipients were 11 staff from SDC, 1FG, KidZania Singapore, Shangri-La’s Rasa Sentosa Resort & Spa, and iFly Singapore, who were recognised in the Service STAR Individual & Team categories for their outstanding guest service.

Another 10 staff from SDC, 1FG, Amara Sanctuary Resort Sentosa, and ONE°15 Marina Club received awards in the Safety & Security category for playing an integral part in making Sentosa safe and secure.
38 Sentosa Annual Report 2017/2018GUEST SATISFACTION AWARDS Going the Extra Mile Service (GEMS) Award and Commendation Award The Ministry of Trade and Industry organises the GEMS and Commendation Awards annually, to recognise officers within the ministry and its statutory boards who have consistently achieved outstanding service standards in serving both internal and external guests.

Pravina Nair D/O Revindran, Lead Ticketing Host, was one of 21 recipients who received the GEMS Commendation Award.
Sentosa Conferred Gold Award for Keeping Island Safe SDC has received the Gold TOPSIS (Threat-Oriented Person Screening Integrated System) Organisational Award for its efforts in effective implementation of security measures on the island.

The Gold Award is the highest accolade that the Ministry of Home Affairs (MHA) confers for outstanding contributions to TOPSIS implementations, which is a border-security programme that was first conceptualised in 2007 and developed by MHA.
In 2014, SDC became the first non-checkpoint partner of the TOPSIS programme, which trains SDC’s ground service staff to identify any suspicious persons, items or behaviour during their work.

39 Sentosa Annual Report 2017/2018GUEST SATISFACTION AWARDSSECURITYAWARDS Sentosa Development Corporation 39 Artillery Avenue, Sentosa Singapore 099958 Copyright © 2018 Sentosa 2017/18 Annual Report.

All Rights Reserved.
Sentosa Development Corporation FINANCIAL REPORT 2017/2018 Sentosa Development Corporation and its subsidiaries Index Sentosa Development Corporation FINANCIAL REPORT 2017/2018 Independent auditor's report Statement of financial position Statement of comprehensive income Statement of changes in equity Statement of cash flow Notes to the financial statements Page 1 4 6 8 10 12 Sentosa Development Corporation and its subsidiaries Independent auditor's report For the financial year ended 31 March 2018 Independent auditor’s report to the Member of Sentosa Development Corporation Report on the audit of the financial statements Opinion We have audited the financial statements of Sentosa Development Corporation (the “Corporation”) and its subsidiaries (collectively, the “Group”), which comprise the statement of financial position of the Group and Corporation as at 31 March 2018, statements of comprehensive income of the Group and Corporation, statements of changes in equity of the Group and Corporation and the consolidated statement of cash flows of the Group for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements of the Group, the statement of comprehensive income, statement of financial position and the statement of changes in equity of the Corporation are properly drawn up in accordance with the provisions of the Sentosa Development Corporation Act, Chapter 291 (the Act) and Singapore Statutory Board Financial Reporting Standards in Singapore (SB-FRSs) so as to present fairly, in all material respects, the state of affairs of the Group and the Corporation as at 31 March 2018 and the results and changes in equity of the Group and the Corporation and cash flows of the Group for the year ended on that date.
Basis for opinion We conducted our audit in accordance with Singapore Standards on Auditing (SSAs).

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of management and those charged with governance for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the provisions of the Act and SB-FRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
A statutory board is constituted based on its Act and its dissolution requires Parliament’s approval.

In preparing the financial 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.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
- 1 - 1 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Independent auditor's report For the financial year ended 31 March 2018 Independent auditor’s report to the Member of Sentosa Development Corporation Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit.

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

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 evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision 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 audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
- 2 - 2 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Independent auditor's report For the financial year ended 31 March 2018 Independent auditor’s report to the Member of Sentosa Development Corporation Report on other legal and regulatory requirements In our opinion: (a) (b) The accounting and other records required by the Act to be kept by the Corporation have been properly kept in accordance with the provisions of the Act.
The accounting and other records of those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the Singapore Companies Act, Chapter 50.
Ernst & Young LLP Public Accountants and Chartered Accountants Singapore 20 June 2018 - 3 - 3 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Statement of financial position As at 31 March 2018 Group Corporation Note 2018 $’000 2017 $’000 2018 $’000 2017 $’000 Non-current assets Property, plant and equipment Land premium Right of use of asset Investments in subsidiaries Investments in joint ventures Accrued income Current assets Inventories Trade and other receivables Prepayments Investments Financial derivatives at fair value Cash and cash equivalents 793,845 48,706 472 – 13,753 31,907 812,077 50,632 570 – 12,964 25,731 733,230 48,706 472 41,108 – 31,907 749,651 50,632 570 41,108 – Total assets 2,126,297 2,105,403 2,044,845 2,044,247 Current liabilities Trade and other payables Financial derivatives at fair value Provisions Deferred capital grants Deferred membership fees Deferred lease income Provision for contribution to Consolidated Fund Income tax payables Non-current liabilities Other payables Provisions Deferred capital grants Deferred membership fees Deferred lease income Deferred tax liabilities 18 87,381 93,455 135,961 153,752 13 19 20 21(a) 21(b) 22 18 19 20 21(a) 21(b) 23 647 14,587 566 6,208 1,139 9,549 1,857 714 14,636 566 6,056 1,146 2,404 726 647 14,587 566 6,208 1,139 9,549 – 714 14,636 566 6,056 1,146 2,404 – 121,934 119,703 168,657 179,274 1,466 1,604 11,342 52,653 42,647 817 500 34,458 11,211 57,580 43,779 921 966 1,466 11,342 52,653 42,647 – – 34,320 11,211 57,580 43,779 – 110,529 148,449 109,074 146,890 Total liabilities 232,463 268,152 277,731 326,164 - 4 - 4 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Statement of financial position As at 31 March 2018 Group Corporation Note 2018 $’000 2017 $’000 2018 $’000 2017 $’000 Equity attributable to owner of the Corporation Capital account 15 14,731 14,571 14,731 14,571 FUNDS AND RESERVES Accumulated surplus - General fund - Restricted fund - Revaluation reserve 16 16 17 1,853,108 9,819 16,176 1,800,630 5,874 16,176 1,742,564 9,819 – 1,697,638 5,874 – Total equity 1,893,834 1,837,251 1,767,114 1,718,083 Total equity and liabilities 2,126,297 2,105,403 2,044,845 2,044,247 Moses Lee Chairman 20 June 2018 Quek Swee Kuan Chief Executive Officer/ Board Member The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
- 5 - 5 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Statement of comprehensive income For the financial year ended 31 March 2018 Group Note General Fund 2018 $’000 2017 $’000 Restricted Fund 2017 2018 $’000 $’000 TOTAL 2018 $’000 2017 $’000 Income Admission fees and packages Rental and hiring of facilities Interest income Investment income Other revenue Write back of provision of Cove infrastructure 24 25 26 19 112,210 47,383 2,137 28,310 55,835 107,818 44,623 21,719 11,945 47,810 – – 98 – 9,689 – – 89 – 8,594 112,210 47,383 2,235 28,310 65,524 107,818 44,623 21,808 11,945 56,404 28,900 24,500 – – 28,900 24,500 274,775 258,415 9,787 8,683 284,562 267,098 Expenditure Cost of sale for admission fees and packages Staff costs Depreciation of property, plant and equipment Amortisation of land premium Amortisation of rights of use of an asset Repairs and maintenance Publicity and promotion Inventories used General and administrative 27 30,552 85,448 33,925 79,122 – 1,004 – 948 30,552 86,452 33,925 80,070 60,918 57,578 1,926 1,926 98 23,334 15,862 15,524 100 22,467 12,039 12,491 – – – 2,152 – – – – – 2,274 – – 60,918 57,578 1,926 1,926 98 25,486 15,862 15,524 100 24,741 12,039 12,491 expenses 28 32,189 27,441 3,063 3,045 35,252 30,486 265,851 247,089 6,219 6,267 272,070 253,356 Surplus before Government Grants from operations Deferred capital grants amortised Share of results of a joint venture, net of tax Operating grants Surplus before taxation and contribution to Consolidated Fund Income tax (expense)/credit Contribution to Consolidated 29 8,924 11,326 3,568 2,416 12,492 13,742 566 566 789 53,741 985 54,469 – – – – – – 566 566 789 53,741 985 54,469 64,020 (1,840) 67,346 159 3,568 – 2,416 – 67,588 (1,840) 69,762 159 Fund (8,943) (1,529) (606) (875) (9,549) (2,404) Surplus for the year, net of taxation and contribution to Consolidated Fund from operations Net surplus for the year, representing total comprehensive income for the year 53,237 65,976 2,962 1,541 56,199 67,517
 53,237 65,976 2,962 1,541 56,199 67,517 - 6 - 6 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Statement of comprehensive income For the financial year ended 31 March 2018 Corporation Note General Fund 2018 $’000 2017 $’000 Restricted Fund 2017 2018 $’000 $’000 TOTAL 2018 $’000 2017 $’000 Income Admission fees and packages Rental and hiring of facilities Interest income Investment income Other revenue Write back of provision of Cove infrastructure 24 25 26 19 84,598 52,971 1,631 28,310 38,243 90,325 47,572 21,374 11,945 31,783 – – 98 – 9,689 – – 89 – 8,594 84,598 52,971 1,729 28,310 47,932 90,325 47,572 21,463 11,945 40,377 28,900 24,500 – – 28,900 24,500 234,653 227,499 9,787 8,683 244,440 236,182 Expenditure Cost of sale for admission fees and packages Staff costs Depreciation of property, plant and equipment Amortisation of land premium Amortisation of rights of use of an asset Repairs and maintenance Publicity and promotion Inventories used General and administrative 27 42,254 67,738 38,596 64,633 – 1,004 – 948 42,254 68,742 38,596 65,581 53,624 50,631 1,926 1,926 98 20,895 13,908 7,688 100 20,803 10,378 7,471 – – – 2,152 – – – – – 2,274 – – 53,624 50,631 1,926 1,926 98 23,047 13,908 7,688 100 23,077 10,378 7,471 expenses 28 26,201 31,286 3,063 3,045 29,264 34,331 234,332 225,824 6,219 6,267 240,551 232,091 Surplus before Government Grants from operations Deferred capital grants amortised Operating grants Surplus before taxation and contribution to Consolidated Fund Contribution to Consolidated Fund Surplus for the year, net of taxation and contribution to Consolidated Fund from operations Net surplus for the year, representing total comprehensive income for the year 321 1,675 3,568 2,416 3,889 4,091 566 53,741 566 54,469 – – – – 566 53,741 566 54,469 54,628 56,710 3,568 2,416 58,196 59,126 (8,943) (1,529) (606) (875) (9,549) (2,404) 45,685 55,181 2,962 1,541 48,647 56,722 45,685 55,181 2,962 1,541 48,647 56,722 The
 accompanying accounting policies and explanatory notes form an integral part of the financial statements.
- 7 - 7 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Statement of changes in equity For the financial year ended 31 March 2018 Group At 1 April 2016 Surplus for the year Sinking fund Total comprehensive income for the year Return of funds to the Government Capital contributed by the Government Capital account (Note 15) $’000 General fund Restricted funds $’000 $’000 Accumulated surplus (Note 16) $’000 Revaluation reserve (Note 17) $’000 Total equity $’000 14,128 2,802,854 3,539 2,806,393 16,176 2,836,697 – – – 65,976 – 1,541 794 67,517 794 65,976 2,335 68,311 – 443 (1,068,200) – – – (1,068,200) – – – – – – 67,517 794 68,311 (1,068,200) 443 At 31 March 2017 14,571 1,800,630 5,874 1,806,504 16,176 1,837,251 At 1 April 2017 Surplus for the year Sinking fund Total comprehensive income for the year Dividend paid to the Government Capital contributed by the Government 14,571 1,800,630 5,874 1,806,504 16,176 1,837,251 – – – – 160 53,237 – 2,962 983 56,199 983 53,237 3,945 57,182 (759) – – – (759) – – – – – – 56,199 983 57,182 (759) 160 At 31 March 2018 14,731 1,853,108 9,819 1,862,927 16,176 1,893,834 - 8 - 8 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Statement of changes in equity For the financial year ended 31 March 2018 Corporation At 1 April 2016 Surplus for the year Sinking fund Total comprehensive income for the year Return of funds to the Government Capital contributed by the Government Capital account (Note 15) $’000 General fund Restricted funds $’000 $’000 Accumulated surplus (Note 16) $’000 Total equity $’000 14,128 2,710,657 3,539 2,714,196 2,728,324 – – – 55,181 – 1,541 794 56,722 794 56,722 794 55,181 2,335 57,516 57,516 – 443 (1,068,200) – – – (1,068,200) – (1,068,200) 443 At 31 March 2017 14,571 1,697,638 5,874 1,703,512 1,718,083 At 1 April 2017 Surplus for the year Sinking fund Total comprehensive income for the year Dividend paid to the Government Capital contributed by the Government 14,571 1,697,638 5,874 1,703,512 1,718,083 – – – – 160 45,685 – 45,685 (759) – 2,962 983 48,647 983 48,647 983 3,945 49,630 49,630 – – (759) – (759) 160 At 31 March 2018 14,731 1,742,564 9,819 1,752,383 1,767,114 The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
- 9 - 9 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Statement of cash flows For the financial year ended 31 March 2018 Group Note 2018 $’000 2017 $’000 Cash flows from operating activities Surplus before taxation and contribution to Consolidated Fund Adjustments for: Interest income Dividend income Depreciation of property, plant and equipment Amortisation of land premium Amortisation of rights of use of an asset Land held for sale written-off Loss on disposal/write-off of property, plant and equipment Write back of doubtful debts Unrealised fair value loss/(gain) on investment Amortisation of deferred membership Amortisation of deferred lease income Share of results of a joint venture Write back of provision of Cove infrastructure Amortisation of deferred capital grants Net fair value loss/(gain) on derivatives 4 5 6 28 25 21(a) 21(b) 8 20 67,588 69,762 (27,858) (4,749) 60,918 1,926 98 – 4,836 (283) 26,975 (7,685) (1,139) (789) (28,900) (566) 838 (33,686) (2,699) 57,562 1,926 100 3,028 5,004 – (5,958) (6,742) (1,146) (985) (24,500) (566) (4,364) Operating profit before working capital changes 91,210 56,736 Changes in working capital Increase in inventories Decrease in trade and other receivables and prepayments Increase in accrued income Decrease in trade and other payables Decrease in provision Cash generated from operating activities Net tax (paid)/refund Contribution to consolidated fund Membership fees received Net increase in cash of Sentosa Cove Residential Fund 21(a) (3,585) 11,522 (6,176) (4,608) (4,003) 84,360 (813) (2,404) 2,910 (1,516) (714) 10,562 (6,267) (2,677) (9,089) 48,551 105 – 2,533 (763) Net cash generated from operating activities 82,537 50,426 Investing activities Interest received Dividends received Purchase of property, plant and equipment Purchase of investments Proceeds from sale of investments Proceeds from disposal of property, plant and equipment Net cash used in investing activities 27,858 4,749 (47,536) (754,886) 687,893 14 33,686 2,699
 (66,328) (1,348,419) 415,727 23 (81,908) (962,612) - 10 - 10 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Statement of cash flow For the financial year ended 31 March 2018 Note 2018 $’000 2017 $’000 Cash flows from financing activities Proceeds from capital contributed by the Government Return of funds to the Government Dividend paid to the Government Net cash from/(used in) financing activities 857 – (759) 443 (1,068,200) – 98 (1,067,757) Net increase/(decrease) in cash and cash equivalents 727 (1,979,943) Cash and cash equivalents at the beginning of the financial year 196,835 2,176,778 Cash and cash equivalents at the end of the financial year 14 197,562 196,835 The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
- 11 - 11 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 1.

Domicile and activities Sentosa Development Corporation (the "Corporation") is a corporation established under the Sentosa Development Corporation Act, Chapter 291 (the "Act"), under the purview of the Ministry of Trade and Industry ("MTI").
As a statutory board, the Corporation is subject to the directions of the MTI and is required to implement policies and policy changes as determined by its supervisory ministry and other Government ministries such as the Ministry of Finance from time to time.

The address of the Corporation's registered office and place of business is at 39 Artillery Avenue, Sentosa, Singapore 099958.
The Corporation's primary function is to control and administer Sentosa Island and encourage the development of services, facilities and amenities on Sentosa Island for tourists and the public.

There have been no significant changes in the nature of this function during the financial year.

The Corporation has a division, Sentosa Golf Club (the "Club"), a proprietary club registered with the Registrar of Societies under the Societies Act (Chapter 311).
The proprietor of the Club is Sentosa Development Corporation.

The principal activities of the Club are to provide and maintain a clubhouse and facilities for golf and other recreational activities for its members.

There have been no significant changes in the nature of these activities during the financial year.

Transactions of the Club are accounted for as part of the Corporation's accounts.
The financial statements of the Corporation as at and for the year ended 31 March 2018 comprise the Corporation and its subsidiaries (together referred to as the "Group") and the Group's interest in joint ventures.

2.

Summary of significant accounting policies 2.1 Statement of compliance The financial statements have been prepared in accordance with the provisions of the Act and Statutory Board Financial Reporting Standards ("SB-FRS").
The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below.

The financial statements are presented in Singapore Dollars (SGD or $) and all values in the tables are rounded to the nearest thousand ($’000), except when otherwise indicated.
2.2 Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial year except in the current financial year, the Group has adopted all the new and revised standards which are effective for annual financial periods beginning on or after 1 April 2017.

The adoption of these standards did not have any effect on the financial performance or position of the Group.
- 12 - 12 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.
Summary of significant accounting policies (cont'd) 2.3 Standards issued but not yet effective The Group has not adopted the following standards applicable to the Group that have been issued but not yet effective: Description Effective for annual periods beginning on or after SB-FRS 115 Revenue from Contracts with Customers SB-FRS 109 Financial Instruments SB-FRS 116 Leases Amendments to SB-FRS 28: Long-term Interests in Associates and Joint Ventures INT SB-FRS 123 Uncertainty over Income Tax Treatments Amendments to SB-FRS 110 & SB-FRS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 1 January 2018 1 January 2018 1 January 2019 1 January 2019 1 January 2019 Date to be determined** ** The mandatory effective date of this Amendment had been revised from 1 January 2016 to a date to be determined by the ASC in December 2015 via Amendments to Effective Date of Amendments to SB-FRS 110 and SB-FRS 28 Except for SB-FRS 115, SB-FRS 109 and SB-FRS 116, the management expect that the adoption of the other standards above will have no material impact on the financial statements in the period of initial application.
The nature of the impending changes in accounting policy on adoption of SB-FRS 115, SB-FRS 109 and SB-FRS 116 are described below.

SB-FRS 115 Revenue from Contracts with Customers SB-FRS 115 establishes a five-step model to account for revenue arising from contracts with customers, and introduces new contract cost guidance.
Under SB-FRS 115, revenue is recognised at an amount that reflects the consideration which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard is effective for annual period beginning on or after 1 January 2018.

The Group’s revenue include sales of admission tickets and packages, rental and hiring of facilities, golf club membership income and sales of merchandise and food and beverage.
The Group has performed a preliminary impact assessment of adopting SB-FRS 115 based on currently available information.

For sales of admission tickets and packages, management has assessed that it is acting as an agent to sell admission tickets and packages on behalf of island partners.

Therefore, the revenue from sales of admission tickets and packages will be recognised on a net basis.
On adoption of SB-FRS 115, the Group expects to record an adjustment to reduce revenue and cost of sales respectively.

For the other streams of revenue, management does not expect any significant impact upon adoption.
This assessment may be subject to changes arising from ongoing analysis until the Group adopts SB-FRS 115 in 2018 - 13 - 13 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.
Summary of significant accounting policies (cont'd) 2.3 Standards issued but not yet effective (cont’d) SB-FRS 109 Financial Instruments SB-FRS 109 introduces new requirements for classification and measurement of financial assets, impairment of financial assets and hedge accounting, and is effective for annual periods beginning on or after 1 January 2018.

Financial assets are classified according to their contractual cash flow characteristics and the business model under which they are held.
The impairment requirements in SB-FRS 109 are based on an expected credit loss model and replace the SB-FRS 39 incurred loss model.

The Group plans to adopt the new standard on the required effective date without restating prior periods’ information and recognises any difference between the previous carrying amount and the carrying amount at the beginning of the annual reporting period at the date of initial application in the opening retained earnings.
The Group has performed a preliminary impact assessment of adopting SB-FRS 109 based on currently available information.

This assessment may be subject to changes arising from ongoing analysis, until the Group adopts SB-FRS 109 in 2018.

(a) Classification and measurement The Group intends to continue to measure its debt instruments and equity securities at fair value through profit or loss when it applies SB-FRS 109.

The Group does not expect any significant impact to arise from this.
(b) Impairment SB-FRS 109 requires the Group and the Corporation to record expected credit losses on its trade receivables, either on a 12-month or lifetime basis.

The Group expects to apply the simplified approach and record lifetime expected losses on all trade receivables.

Upon application of the expected credit loss model, the Group does not expect any significant impact arising from this.
SB-FRS 116 Leases SB-FRS 116 requires lessees to recognise most leases on balance sheets to reflect the rights to use the leased assets and the associated obligations for lease payments as well as the corresponding interest expense and depreciation charges.

The standard includes two recognition exemption for lessees – leases of ‘low value’ assets and short-term leases.

The new leases standard is effective for annual periods beginning on or after 1 January 2019.
The Group is currently assessing the impact of the new standard and plans to adopt the new standard on the required effective date.

- 14 - 14 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.
Summary of significant accounting policies (cont'd) 2.4 Basis of consolidation The consolidated financial statements comprise the financial statements of the Corporation and its subsidiaries as at the end of the reporting period.

The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Corporation.

Consistent accounting policies are applied to like transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions and dividends are eliminated in full.

Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
If the Group loses control over a subsidiary, it: - De-recognises the assets (including goodwill) and liabilities of the subsidiary at their carrying amounts at the date when control is lost; - De-recognises the carrying amount of any non-controlling interest; - De-recognises the cumulative translation differences recorded in equity; - Recognises the fair value of the consideration received; - Recognises the fair value of any investment retained; - Recognises any surplus or deficit in profit or loss; - Re-classifies the Group’s share of components previously recognised in other comprehensive income to profit or loss or retained earnings, as appropriate.
2.5 Functional and foreign currency (a) Functional currency The management has determined the currency of the primary economic environment in which the Group operates i.e.

functional currency, to be SGD.

Sales prices and major costs of providing goods and services including major operating expenses are primarily influenced by fluctuations in SGD.
(b) Foreign currency transactions Transactions in foreign currencies are measured in the functional currency of the Group and are recorded on initial recognition in the functional currency at exchange rates approximating those ruling at the transaction dates.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the end of the reporting period.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of the reporting period are recognised in profit or loss.
- 15 - 15 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.

Summary of significant accounting policies (cont'd) 2.6 Property, plant and equipment All items of property, plant and equipment are initially recorded at cost.

Subsequent to recognition, property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
The cost includes the cost of replacing part of the property, plant and equipment that are directly attributable to the acquisition, construction or production of a qualifying property, plant and equipment.
Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: Leasehold land and improvements to land - 10 to 103 years or over remaining lease terms ranging from 48 to 61 years Buildings, attractions, facilities and renovations - 3 to 50 years Plant and machinery, operating equipment and other assets, comprising: (i) (ii) (iii) (iv) Plant and machinery (including cable car system) Transportation assets Furniture and fittings Computer equipment - - - - 3 to 50 years 4 to 50 years 1 to 27 years 3 to 10 years The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each financial year- end, and adjusted prospectively, if appropriate.

An item of property, plant and equipment is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal.

Any gain or loss on de-recognition of the asset is included in profit or loss in the year the asset is de-recognised.
2.7 Land premium Leases of land under which the lessor has not transferred all the risks and benefits of ownership are classified as operating leases.

Land premium for land use rights is stated at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation is charged to the profit or loss on a straight- line basis over the lease term.

2.8 Right of use asset Right of use asset relates to the rights to the use of the floating sea barriers.

This is stated losses.


at cost Amortisation is charged to the profit or loss on a straight-line basis over the useful life of 8 years.

less accumulated amortisation and any accumulated impairment - 16 - 16 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.
Summary of significant accounting policies (cont'd) 2.9 Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired.

If any such indication exists, or when an annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs of disposal and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets.

Where the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
Impairment losses of continuing operations are recognised in profit or loss.

A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised.

If that is the case, the carrying amount of the asset is increased to its recoverable amount.
That increase cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised previously.

Such reversal is recognised in profit or loss unless the asset is measured at revalued amount, in which case the reversal is treated as a revaluation increase.

2.10 Subsidiaries A subsidiary is an investee that is controlled by the Group.
The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

In the Group’s separate financial statements, investments in subsidiaries are accounted for at cost less impairment losses.
2.11 Joint ventures A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.

Investments in joint ventures are accounted for using the equity method (equity-accounted investees) and are recognised initially at cost which includes transaction costs.
The consolidated financial statements include the Group's share of the profit or loss and other comprehensive income of the equity-accounted investees, after adjustments to align the accounting policies of the equity-accounted investees with those of the Group, from the date that joint control commences until the date that joint control ceases.
When the Group's share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, together with any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation to fund the investee's operations or has made payments on behalf of the investee.
- 17 - 17 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.

Summary of significant accounting policies (cont'd) 2.11 Joint ventures (cont’d) An impairment loss in respect of joint venture is measured by comparing the recoverable amount of the investment with its carrying amount.

An impairment loss is recognised in profit or loss.
An impairment loss is reversed if there has been a favourable change in the estimates used to determine the recoverable amount.

2.12 Financial instruments (a) Financial assets Initial recognition and measurement Financial assets are recognised when, and only when, the Group becomes a party to the contractual provisions of the financial instrument.

The Group determines the classification of its financial assets at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs.

Subsequent measurement Loan and receivables Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less impairment.

Gains and losses are recognised in profit or loss when the loans and receivables are de-recognised or impaired, and through the amortisation process.
Financial assets and financial liabilities at fair value through profit or loss which are held for trading Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term.

This category includes derivative financial instruments entered into by the Group.

Derivatives, including separated embedded derivatives are also classified as held for trading.
Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value.

Any gains or losses arising from changes in fair value of the financial assets are recognised in profit or loss.

Net gains or net losses on financial assets at fair value through profit or loss include exchange differences, interest and dividend income.
Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not measured at fair value with changes in fair value recognised in profit or loss.

These embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss.
Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required - 18 - 18 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.
Summary of significant accounting policies (cont'd) 2.12 Financial instruments (cont’d) (a) Financial assets (cont’d) Subsequent measurement (cont’d) Regular way purchases and sales of financial assets All regular way purchases and sales of financial assets are recognised or de- recognised on the trade date i.e.

the date that the Group commits to purchase or sell the asset.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace concerned.

De-recognition A financial asset is de-recognised where the contractual right to receive cash flows from the asset has expired.
On de-recognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that has been recognised in other comprehensive income is recognised in profit or loss.

(b) Financial liabilities Initial recognition and measurement Financial liabilities are recognised when, and only when, the Group becomes a party to the contractual provisions of the financial instrument.
The Group determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs.
Subsequent measurement Financial liabilities at amortised cost After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method.

Gains and losses are recognised in profit or loss when the liabilities are de- recognised, and through the amortisation process.
De-recognition A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.
- 19 - 19 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.

Summary of significant accounting policies (cont'd) 2.13 Impairment of financial assets The Group assesses at each reporting date whether there is any objective evidence that a financial asset is impaired.
Financial assets carried at amortised cost For financial assets carried at amortised cost, the Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant.
If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment.

Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be recognised are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate.

The carrying amount of the asset is reduced through the use of an allowance account.

The impairment loss is recognised in profit or loss.
When the asset becomes uncollectible, the carrying amount of impaired financial assets is reduced directly or if an amount was charged to the allowance account, the amounts charged to the allowance account are written off against the carrying value of the financial asset.
To determine whether there is objective evidence that an impairment loss on financial assets has been incurred, the Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date.

The amount of reversal is recognised in profit or loss.
- 20 - 20 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.

Summary of significant accounting policies (cont'd) 2.14 Hedge accounting The Group applies hedge accounting for certain hedging relationships which qualify for hedge accounting.

Fair value hedges The change in the fair value of a hedging derivative is recognised in profit or loss in finance costs.
The change in the fair value of the hedged item attributable to the risk hedged is recorded as a part of the carrying value of the hedged item and is also recognised in profit or loss.

For fair value hedges relating to items carried at amortised cost, the adjustment to carrying value is amortised through profit or loss over the remaining term of the hedge using the effective interest rate method.
Effective interest rate amortisation may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged.

If the hedged item is de- recognised, the unamortised fair value is recognised immediately in profit or loss.
When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.
2.15 Cash and cash equivalents Cash and cash equivalents comprise cash on hand, cash held with banks and Accountant- General's Department ("AGD"), and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.
For the purpose of the consolidated statement of cash flow, cash and cash equivalents are presented net of cash and cash equivalents held on behalf of the Government-related specific funds, which form an integral part of the Group's cash management.

2.16 Inventories Inventories are stated at the lower of cost and net realisable value.
Costs incurred in bringing the inventories to their present location and condition are accounted for as follows: - Merchandise: cost is determined on a weighted average basis - Food and beverage and consumables and spare parts: cost is determined based on a first-in first-out basis Where necessary, allowance is provided for damaged, obsolete and slow moving items to adjust the carrying value of inventories to the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

- 21 - 21 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.
Summary of significant accounting policies (cont'd) 2.17 Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be estimated reliably.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.
If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability.

When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
2.18 Restricted fund The Sentosa Development Corporation Act (the "Act") provides that the Corporation shall establish a maintenance fund and levy a maintenance fee on the Sentosa Cove owners, for the purposes of managing and maintaining the Sentosa Cove resort area and of providing and maintaining the infrastructure and other facilities and services for the use of persons living and working in the resort area.
The amounts in the Sentosa Cove Residential Fund relate to maintenance contribution received from the Sentosa Cove residents less the expenditure incurred for the residential precinct to date, are restricted to be used for the specified purpose provided under the Act.

The income and expenditure relating to these that are subject to legal or grantor/donor imposed stipulation are accounted for under Restricted Fund in the Group’s and Corporation’s statement of comprehensive income.
2.19 Provision for contribution to consolidated fund The Corporation is required to make contribution to the Consolidated Fund in accordance with the Statutory Corporations (Contributions to Consolidation Funds) Act, Chapter 319A.

The provision is based on guidelines specified by the Ministry of Finance.

It is computed based on a percentage pegged at the prevailing corporate tax rate for the year of assessment on the net surplus of the Corporation and after deducting prior year's accumulated deficits.
Contribution is provided for on an accrual basis.

The Corporation is allowed to carry forward its deficits to offset against its future surplus.

The deficits have no expiry date.

The benefits associated with the deficits are recognised as deferred income tax asset to the extent that realisation of the related benefits through future surplus are probable.
- 22 - 22 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.

Summary of significant accounting policies (cont'd) 2.20 Deferred membership fees Deferred membership fee comprises club membership fee and term membership fee.
Club membership fee refers to the lump sum payment made by members for the ordinary membership which is amortised and recognised as income on a straight-line basis over the lease term of the land occupied by the Club.

The lease term of the land occupied by the Club is 30 years (the “Existing Lease”).

In 2015, the lease term of the land occupied by the Club for Tanjong Golf Course and Serapong Golf Course was extended to 2040 and 2030 respectively (the “Extended Lease”).
Additional club membership fee collected for the Extended Lease will commence amortisation upon expiry of the Existing Lease and will be amortised on a straight-line basis over the Extended Lease period.

Term membership fee refers to the yearly membership fee paid by members in advance and it is amortised and recognised as income on a straight-line basis over a year.
2.21 Deferred lease income Deferred lease income is service income and development fee in respect of long-term leases, which is amortised and recognised as income on the basis so as to match the related costs.

2.22 Government grants Capital grant Government grants are recognised initially as deferred income at fair value when there is reasonable assurance that the grants will be received and the Group will comply with the conditions associated with the grant.
These grants are then recognised on profit or loss as other income on a systematic basis over the useful life of the asset.

Government grants for the establishment of the Corporation are taken to the capital account.

Government grants and contributions for the purchase of depreciable property, plant and equipment are taken to the deferred capital grants account.
The deferred capital grants are recognised in the profit or loss over the periods necessary to match the depreciation and gain or loss on disposal of the property, plant and equipment purchased with the grants.

Operating grant Government grant shall be recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate.
2.23 Capital Capital contributed by the Government is recognised in the capital account.

Incremental costs directly attributable to the capital are recognised as a deduction from the capital, net of any tax effects.

- 23 - 23 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.
Summary of significant accounting policies (cont'd) 2.24 Employee benefits (a) Defined contribution plans The Group makes contributions to the Central Provident Fund scheme in Singapore, a defined contribution pension scheme.

Contributions to defined contribution pension schemes are recognised as an expense in the period in which the related service is performed.
(b) Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.
2.25 Leases (a) As lessee Finance leases which transfer to the Group substantially all the risks and rewards incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments.

Any initial direct costs are also added to the amount capitalised.
Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.

Finance charges are charged to profit or loss.

Contingent rents, if any, are charged as expenses in the periods in which they are incurred.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term.

Operating lease payments are recognised as an expense in profit or loss on a straight-line basis over the lease term.

The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight-line basis.
(b) As lessor Leases in which the Group does not transfer substantially all the risks and rewards of ownership of the asset are classified as operating leases.

Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same bases as rental income.

The accounting policy for rental income is set out in Note 2.26(b).

Contingent rents are recognised as revenue in the period in which they are earned.
- 24 - 24 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.

Summary of significant accounting policies (cont'd) 2.26 Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is made.
Revenue is measured at the fair value of consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty.

(a) Admission fees and packages Income from admission fees and packages is recognised on sale and presentation of admission tickets and packages, net of discount.

(b) Rental and hiring of facilities Rental income is recognised on a straight-line basis over the terms of the lease.
Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

Lease income from operating leases is recognised on a straight-line basis over the lease terms on ongoing leases.

The aggregate costs of incentives provided to lessees are recognised as a reduction of rental income over the lease terms on a straight-line basis.
(c) Club income Membership income comprises of the following: (i) Amortisation of the club membership fee and recognised on a straight-line basis over the remaining lease term of the land occupied by the Club; (ii) Term membership fees are amortised over a year; (iii) (iv) (v) Transfer fees on club membership that are recognised on approval of transfer; and Upon sale of a corporate membership, nominee registration fees for two nominees are recognised on acceptance of the first nominee by the General Committee of the Club or upon the expiration of three months from admission of the Club Member, whichever is earlier.
Upon a change of corporate nominee, nominee fees are recognised on approval of admission of the General Committee.

the corporate nominee by (vi) Members’ subscription income from subscription fees is recognised on an accrual basis.

Golfing income comprises of income from green fees and fees from other social facilities provided by the Club that are recognised when services have been rendered, and accepted by customers.
- 25 - 25 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.

Summary of significant accounting policies (cont'd) 2.26 Revenue (cont’d) (d) Sales of merchandise Revenue from sale of merchandise is recognised upon the transfer of significant risks and rewards of ownership of the goods to the customer, net of trade discounts.
Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the consideration due, associated costs or the possible return of goods.

(e) Service, development, project management fees and headquarter support cost recovery Service, development, project management fees and headquarter support cost recovery are recognised as revenue when services are rendered, and accepted by customers or related parties.
(f) Food and beverage Revenue from sale of food and beverage is recognised upon sales made to customers, net of discounts.

(g) Interest income Interest income is recognised using the effective interest method.

(h) Sponsorship income Sponsorship income from public entities and private third parties are recognised at fair value as income as and when it is reasonably certain that they will be received and conditions for receipt have been met.
(i) Maintenance fund contributions Maintenance fund contributions are recognised on an accrual basis.

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

(k) Consent fee income Consent fee income is recognised for the transfer of ownership for lease for which agreements have been concluded.
- 26 - 26 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.

Summary of significant accounting policies (cont'd) 2.27 Taxes Sentosa Development Corporation is a tax-exempted institution under the provisions of the Income Tax Act (Chapter 134, 2008 Revised Edition).

The subsidiaries of the Corporation are subject to local tax legislation.
(a) Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities.

The tax rate and tax law used to compute the amount are those that are enacted or substantively enacted at the end of the reporting period.
Current income taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss, either in other comprehensive income or directly in equity.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
(b) Deferred tax Deferred tax is provided using the liability method on temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary differences, except where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised except where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

Unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rate that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rate (and tax law) that have been enacted or substantively enacted at the end of each reporting period.

- 27 - 27 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 2.
Summary of significant accounting policies (cont'd) 2.27 Taxes (cont’d) (b) Deferred tax (cont’d) Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss.

Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition.
(c) Sales tax Revenues, expenses and assets are recognised net of the amount of sales tax except: - Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and - Receivables and payables that are stated with the amount of sales tax included.
2.28 Share capital and share issuance expenses Proceeds from issuance of ordinary shares are recognised as share capital in equity.

Incremental costs directly attributable to the issuance of ordinary shares are deducted against share capital.
2.29 Contingencies A contingent liability is: (a) A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or (b) A present obligation that arises from past events but is not recognised because: (i) It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (ii) The amount of the obligation cannot be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group.

Contingent liabilities and assets are not recognised on the statement of balance sheet of the Group, except for contingent liabilities assumed in a business combination that are present obligations and which the fair values can be reliably determined.
- 28 - 28 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 3.

Significant accounting judgements and estimates The preparation of the Group’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of each reporting period.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in the future periods.
3.1 Judgement made in applying accounting policies There are no areas of critical judgement in applying accounting policies and that have the most significant effect on the amounts recognised in the financial statements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period.
3.2 Key sources of estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period are discussed below.

The Group based its assumptions and estimates on parameters available when the financial statements were prepared.

Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group.
Such changes are reflected in the assumptions when they occur.

The preparation of the financial statements in conformity with SB-FRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

(a) Useful life of property, plant and equipment The cost of property, plant and equipment is depreciated on a straight line basis over their estimated useful lives.

Management estimates the useful lives of these property, plant and equipment to be within 3 to 103 years (2017: 3 to 103 years).
Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.

The carrying amounts of the Group’s and the Corporation’s property, plant and equipment as at 31 March 2018 are disclosed in Note 4 to the financial statements.
- 29 - 29 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 3.

Significant accounting judgements and estimates (cont’d) 3.2 Key sources of estimation uncertainty (cont’d) (b) Impairment of loans and receivables The Group assesses at the end of each reporting period whether there is any objective evidence that a financial asset is impaired.
Factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments are objective evidence of impairment.

In determining whether there is objective evidence of impairment, the Group considers whether there is observable data indicating that there have been significant changes in the debtor’s payment ability the or whether technological, market, economic or legal environment in which the debtor operates in.
there have been significant changes with adverse effect in Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based on historical loss experience for assets with similar credit risk characteristics.

The carrying amount of the Group’s loans and receivables at the end of the reporting period is disclosed in Note 11 to the financial statements.
(c) Provision for Cove infrastructure There is a present, legal and constructive obligation for the provision of infrastructure and amenities to purchasers of the Sentosa Cove’s land, for which management expects to incur the expenditure.

In determining the provision, assumptions and estimates are made in relation to the expected cost for incurring the infrastructure expenditure.

This includes assessing the scope of the projects to be performed.
The provision amount for the projects is estimated based on the latest available information from awarded tender prices and quotations.

Past bids for similar projects are used as a basis for determining the provision for projects which have not commenced.

In the past financial year, management has performed a detailed review of the Cove infrastructure requirements through consultancy and feasibility studies.

Consequently, certain projects are no longer needed or have significant scope reductions.
Provision previously made for those projects which are no longer required have been written back.

The carrying amount of the provision as the end of the reporting period is disclosed in Note 19 to the financial statements.

- 30 - 30 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 4.
Property, plant and equipment Group Cost At 1 April 2016 Additions Disposals/written-off Transfers As at 31 March 2017 and 1 April 2017 Additions Disposals/written off Transfers As at 31 March 2018 At 1 April 2016 Charge for the year Disposals/written off As at 31 March 2017 and 1 April 2017 Charge for the year Disposals/written off As at 31 March 2018 Net book values As at 31 March 2017 As at 31 March 2018 Leasehold land and improvements to land $’000 Buildings, attractions, facilities and renovations $’000 Development projects-in- progress $’000 Plant and machinery, operating equipment and other assets $’000 479,046 626 (354) 32,287 511,605 6,685 (131) 1,006 519,165 191,807 7,190 (324) 198,673 12,829 (7) 211,495 544,623 2,221 (3,843) 13,707 556,708 3,272 (3,155) 884 557,709 191,380 26,807 (2,321) 215,866 21,620 (1,413) 236,073 47,509 53,309 (542) (56,598) 43,678 9,864 (2,113) (20,444) 30,985 – – – – – – – Total $’000 1,344,899 66,328 (12,703) – 1,398,524 47,536 (8,445) – 273,721 10,172 (7,964) 10,604 286,533 27,715 (3,046) 18,554 329,756 1,437,615 153,374 23,565 (5,031) 171,908 26,469 (2,175) 196,202 536,561 57,562 (7,676) 586,447 60,918 (3,595) 643,770 312,932 340,842 307,670 321,636 43,678 30,985 114,625 812,077 133,554 793,845 Included in the cost of property, plant and equipment was an amount of $500,000 (2017: $500,000) related to costs for dismantling removal, and restoration of the property, plant and equipment, which was provided for as reinstatement costs.
- 31 - 31 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 4.
Property, plant and equipment (cont’d) Corporation Cost At 1 April 2016 Additions Disposals/written-off Transfers As at 31 March 2017 and 1 April 2017 Additions Disposals/written-off Transfers As at 31 March 2018 At 1 April 2016 Charge for the year Disposals/written off As at 31 March 2017 and 1 April 2017 Charge for the year Disposals/written-off Leasehold land and improvements to land $’000 Buildings, attractions, facilities and renovations $’000 Development projects-in- progress $’000 Plant and machinery, operating equipment and other assets $’000 452,724 444 (32) 32,287 485,423 6,481 (602) 571 491,873 186,025 6,230 (2) 192,253 11,905 (95) 476,092 757 (3,747) 13,707 486,809 2,059 (1,870) 237 487,235 166,598 21,605 (2,260) 185,943 16,263 (416) 47,237 52,537 – (56,598) 43,176 7,876 (1,346) (18,839) 30,867 – – – – – – – Total $’000 1,245,843 63,158 (10,631) – 1,298,370 44,136 (9,609) – 269,790 9,420 (6,852) 10,604 282,962 27,720 (5,791) 18,031 322,922 1,332,897 151,739 22,779 (3,995) 170,523 25,456 (2,165) 504,362 50,614 (6,257) 548,719 53,624 (2,676) 193,814 599,667 As at 31 March 2018 204,063 201,790 Net book values As at 31 March 2017 As at 31 March 2018 293,170 300,866 287,810 285,445 43,176 30,867 112,439 129,108 749,651 733,230 - 32 - 32 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 5.
Land premium Cost At 1 April and 31 March Accumulated amortisation At 1 April Charge for the year At 31 March Group and Corporation 2018 $’000 2017 $’000 68,096 68,096 17,464 1,926 19,390 15,538 1,926 17,464 Net carrying amount 48,706 50,632 The cost of land premium for Sentosa Golf Club is capitalised in accordance with accounting policy in Note 2.7 and represents the amounts paid to Singapore Land Authority for the current and renewed lease term of the golf course land.
In 2015, the Club extended its land lease period of the Tanjong Golf Course and Serapong Golf Course for 19 years and 9 years respectively for $41,613,000.

Amortisation of the additional land premium for the lease extension will commence from calendar year 2022 upon commencement of the lease renewal period.

6.
6.

Right of use asset Cost At 1 April and 31 March Accumulated amortisation At 1 April Charge for the year At 31 March Net carrying amount Group and Corporation 2018 $’000 2017 $’000 794 794 224 98 322 472 124 100 224 570 - 33 - 33 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 7.
Investments in subsidiaries Corporation 2018 $’000 2017 $’000 Unquoted equity shares, at cost 41,108 41,108 Details of the subsidiaries are as follows: Name Principal activities Country of incorporation/ place of business Percentage of ownership held by the Group 2018 % 2017 % Held by the Corporation Sentosa Leisure Holdings Pte Ltd (“SLH”)@ Currently in voluntary liquidation Singapore 100 100 Mount Faber Leisure Group Pte Ltd* Sentosa Leisure Management Pte Ltd * Sentosa Cove Resort Management Pte Ltd * Operation of the cable car system, wholesaler and retailer of merchandise, food and beverage services, marketing of panel advertisements, travel and tour agent and provision of private coach hire services An agent of Sentosa Development Corporation to carry on any business which its ultimate holding corporation is authorised to carrying on including but not limited to sales, ticketing, marketing, operations and attractions operator Estate and community management, including property and facility management of common properties within Sentosa Cove Singapore 100 100 Singapore 100 100 Singapore 100 100 @ * Sentosa Leisure Holdings Pte Ltd was dissolved on 15 April 2018 Audited by Ernst & Young LLP, Singapore - 34 - 34 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 8.
Investments in joint ventures Unquoted shares, at cost Share of post-acquisition profits (net of tax) Group 2018 $’000 6,340 7,413 2017 $’000 6,340 6,624 13,753 12,964 There are no contingent liabilities relating to the Group's interest in its joint ventures.

In 2018 and 2017, the Group did not receive any dividend from its investments in joint ventures.
Details of the joint ventures are as follows: Name Held by subsidiary DCP (Sentosa) Pte Ltd * Principal activities Country of incorporation/ place of business Percentage of ownership held by the Group 2018 % 2017 % Singapore 20 20 Construction, development and operation of a district cooling plant supplying chilled water for air- conditioning needs at Sentosa * Audited by PricewaterhouseCoopers LLP, Singapore Resort World Singapore the Group’s subsidiary, Sentosa Leisure Management Pte Ltd (“SLM”), has 80% and 20% share respectively in DCP (Sentosa) Pte Ltd (“DCP”).
(“RWS”) and Based on the joint venture agreement, the quorum of shareholders and directors meeting can only be achieved with the presence of at least one director/representative each from SLM and RWS.

Furthermore, SLM and RWS has equal rights in determining DCP’s business and its conduct.

Accordingly DCP is accounted for as a joint venture.
- 35 - 35 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 8.
Investments in joint ventures (cont’d) The following table summarises the financial information of the joint venture: Revenue Expenses Total profit Current assets Non-current assets Current liabilities Non-current liabilities Net assets 2018 $’000 18,445 (14,501) 2017 $’000 19,937 (15,009) 3,944 4,928 22,840 56,832 (3,661) (7,273) 15,583 59,652 (3,478) (6,937) 68,738 64,820 Group’s interest in net assets of joint venture at beginning of year Share of total profit 12,964 789 11,979 985 Carrying amount of interest in joint venture at end of the year 13,753 12,964 9.
Accrued income Accrued income relates to recognition of guaranteed annual payments which is expected to be received in subsequent periods from tenants on long term leases.

10.
Inventories Consumables and spare parts Merchandise Food and beverage products Attraction tickets Group Corporation 2018 $’000 4,652 1,298 301 1,334 7,585 2017 $’000 1,026 1,310 504 1,160 4,000 2018 $’000 4,652 – 134 293 5,079 2017 $’000 917 – 109 1,160 2,186 Statement of comprehensive income: Inventories recognised as an expense in cost of sales Inventories recognised as part of inventories used 30,552 15,524 33,925 42,254 38,596 12,491 7,688 7,471 - 36 - 36 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 11.
Trade and other receivables Current Trade receivables Other receivables Investment receivables Deposits Amounts due from subsidiaries (trade) Amounts due from subsidiaries (non-trade) Total trade and other receivables Add: Cash and cash equivalents Group Corporation 2018 $’000 21,016 8,770 8,873 484 – – 2017 $’000 24,338 16,886 8,275 537 – – 2018 $’000 16,723 6,020 8,873 114 2017 $’000 20,088 14,731 8,275 196 247 287 8,570 4,549 39,143 50,036 40,547 48,126 (Note 14) 206,168 204,425 160,053 182,009 Total loans and receivables 245,311 254,461 200,600 230,135 Trade receivables Trade receivables are non-interest bearing, and are generally on 30 days' credit terms.
They are recognised at their original invoiced amounts which represent their fair values on initial recognition.

Included in trade receivables of the Corporation and the Group is an amount of $Nil (2017: $652,000) relating to receivables for expenses incurred for the maintenance of offshore islands on behalf of the Government.

All trade receivables are denominated in Singapore dollar.
Investment receivables Investment receivables includes interests and dividends receivables from the investments in equities and bonds and the outstanding amounts for the bonds and equities sold at year end.

Amounts due from subsidiaries (trade and non-trade) Amounts due from subsidiaries are unsecured, non-interest bearing, repayable on demand and are to be settled in cash.
- 37 - 37 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 11.

Trade and other receivables (cont’d) Receivables that are past due but not impaired The Group has trade receivables amounting to $1,531,000 (2017: $3,444,000) that are past due at the end of the reporting period but not impaired.
The Corporation has trade receivables amounting to $1,328,000 (2017: $2,580,000) that are past due at the end of the reporting period but not impaired.
These receivables are unsecured and the analysis of their aging at the end of the reporting period is as follows: 20133 Group Past due less than 30 days Past due 30-60 days Past due 61-90 days Past due more than 90 days Corporation Past due less than 30 days Past due 30-60 days Past due 61-90 days Past due more than 90 days 2018 $’000 2017 $’000 1,326 132 73 – 1,531 1,266 37 25 – 1,328 1,504 529 108 1,303 3,444 806 488 71 1,215 2,580 - 38 - 38 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 11.
Trade and other receivables (cont’d) Receivables that are impaired The Group’s and Corporation’s trade receivables that are impaired at the end of the reporting period and the movement of the allowance accounts used to record the impairment are as follows: Trade receivables – nominal amounts Less: allowance for doubtful debt Group Corporation 2018 $'000 2017 $'000 2018 $'000 2017 $'000 3,107 3,392 2,972 3,240 (3,107) (3,392) (2,972) (3,240) – – – – At 1 April Provided during the year Reversal during the year Utilised during the year 3,392 46 (329) (2) 3,324 107 (39) – 3,240 3 (271) – 3,248 13 (21) – At 31 March 3,107 3,392 2,972 3,240 Trade receivables that are individually determined to be impaired at the end of the reporting period relate to debtors that are in significant financial difficulties and have defaulted on payments.
These receivables are not secured by any collateral or credit enhancements.

Investment receivables denominated in foreign currencies at 31 March are as follows: United States Dollars Euros British Pounds Japanese Yen Others Group and Corporation 2018 $’000 5,373 621 735 85 582 2017 $’000 4,889 480 612 112 784 - 39 - 39 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 12.
Investments Quoted investments At fair value Singapore government bonds Other government bonds Corporate bonds Equity securities Group and Corporation 2018 $’000 2017 $’000 127,955 111,144 539,891 199,678 115,009 130,099 510,555 182,987 978,668 938,650 These investments are managed by external investment managers appointed by the Corporation and are held with an appointed external custodian.
The fair values of Singapore government bonds, other government bonds, corporate bonds and equity securities are based on the last closing bid market prices on the last market day of the financial year.
Investments at fair value through income or expenditure denominated in foreign currencies at 31 March are as follows: United States Dollars Euros Hong Kong Dollars British Pounds Japanese Yen Others Group and Corporation 2018 $’000 508,539 66,446 36,693 31,519 15,125 84,288 2017 $’000 517,767 47,436 36,989 27,501 17,088 67,993 - 40 - 40 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 13.
Financial derivatives at fair value Group and Corporation 2018 2017 Notional amount $’000 Assets Liabilities $’000 $’000 Notional amount $’000 Assets Liabilities $’000 $’000 13,375 353 (9) 30,402 144 (14) 808,865 3,820 (638) 986,029 4,934 (700) 822,240 4,173 (647) 1,016,431 5,078 (714) Futures contracts Forward foreign exchange contracts Futures contracts are entered into for efficient portfolio management of the investment portfolio.
Foreign exchange forward contracts are entered into for hedging purposes to manage currency risk of the investment portfolio.

The notional amount is the value of the underlying futures and foreign exchange forward contracts.
Financial derivatives denominated in foreign currencies as at 31 March are as follow: United States dollars Others Group and Corporation 2018 $’000 1,235 2 2017 $’000 399 (348) - 41 - 41 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 14.
Cash and cash equivalents Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 9,557 25,128 22,467 42,110 8,258 25,128 22,075 42,110 171,483 137,969 126,667 115,945 – 1,879 – 1,879 206,168 204,425 160,053 182,009 – (500) – (500) Cash at bank and on hand Cash placed with custodian Deposits placed with Accountant-General’s Department (“AGD”) Fixed deposits with financial institutions Less: Cash held on behalf of a statutory board Less: Cash of Sentosa Cove Residential Fund (8,606) (7,090) (8,606) (7,090) 197,562 196,835 151,447 174,419 Fixed deposits placed with financial institutions and deposits placed with the AGD mature in varying periods of between 1 day to 1 year (2017: 1 day to 1 year), depending on the immediate cash requirements of the Corporation and the Group, and earn interest income at the respective fixed deposit rates.
Included in the cash and cash equivalents of the Group and Corporation is an amount of $Nil (2017: $500,000) held on behalf of a statutory board for the maintenance of the Southern Islands.

The weighted average effective interest rate of cash and cash equivalents held by the Group and Corporation is 1.23% (2017: 1.37%) per annum.
Cash and cash equivalent denominated in foreign currencies as at 31 March are as follow: Group 2018 $’000 2017 $’000 Corporation 2018 $’000 2017 $’000 Japanese Yen United States Dollar Others 1,056 16,809 2,093 20,610 29,285 3,026 1,056 16,809 2,093 20,610 29,285 3,026 - 42 - 42 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 15.
Capital account The capital account represents government grants given to the Corporation for its establishment, and capital contributed by the Government.

At 1 April Capital contributed by the Government At 31 March Capital management Group and Corporation 2018 $’000 14,571 160 14,731 2017 $’000 14,128 443 14,571 The Group manages its capital in accordance with the Capital Management Framework formulated by the Ministry of Finance.
Under this Framework, the Group is required to draw on its accumulated surpluses, existing equity, debt or additional equity contribution from the Government.

The Group defines capital as capital contributed by Government and accumulated surplus.

The Group's approach to capital management remains unchanged from the financial year ended 31 March 2017.

16.

Accumulated surplus (a) General Fund Income and expenditure of the Group are generally accounted for under the General Fund in the profit or loss.
(b) Restricted Fund The restricted fund refers to the net funds held in the Sentosa Cove Residential Fund.

The accounting policy for the Restricted Fund is disclosed in Note 2.18.
The assets and liabilities of the restricted fund is as follows: Trade and other receivables Cash and cash equivalents Trade and other payables Provision for contribution to Consolidated Fund Net assets Group and Corporation 2018 $’000 4,004 8,606 12,610 2,184 607 2,791 9,819 2017 $’000 1,847 7,090 8,937 2,188 875 3,063 5,874 - 43 - 43 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 17.
Revaluation reserve Revaluation reserve represents the impact of fair value adjustment on the land and buildings acquired in respect of the acquisition of a subsidiary in prior years.

18.
Trade and other payables Group 2018 $’000 2017 $’000 Corporation 2018 $’000 2017 $’000 7,378 44,035 4,842 – 17,560 1,532 7,466 4,533 35 – – 11,649 43,214 5,533 328 18,042 1,300 4,623 7,738 1,028 – – 4,719 29,991 4,822 – 14,323 1,179 5,879 4,533 35 2 9,829 32,757 5,407 328 15,345 675 2,926 7,738 1,028 936 70,478 76,783 87,381 93,455 135,961 153,752 1,466 500 966 – 88,847 93,955 136,927 153,752 (34) (500) (2,128) (1,028) (500) (2,737) (34) – (1,200) (1,028) – (1,075) 86,185 89,690 135,693 151,649 Current Trade payables Accrued operating expenses Deposits Accruals for property tax Advance receipts Liability for short-term compensating absences Other payables Investment payables Changes in fair value of firm commitments Amounts due to subsidiaries (trade) Amounts due to subsidiaries (non-trade) Non-current Other payables Total Less: Changes in fair value of firm commitments Less: Other payables Less: GST payables Total financial liabilities carried at amortised cost Trade payables These amounts are non-interest bearing.
Trade payables are normally settled on 30-days terms.

All trade payables are denominated in SGD.

Investment payables Investment payables includes management fees payable to the fund managers and the outstanding amounts for the bonds and equities purchased at year end.

Changes in fair value of firm commitment The firm commitment as of 31 March 2018 was JPY251,952,000 which is equivalent to S$3,102,000 (2017: JPY1,756,033,000 equivalent to S$22,026,000).
- 44 - 44 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 18.

Trade and other payables (cont’d) Amount due to subsidiaries (trade and non-trade) These amounts are unsecured, non-interest bearing, repayable on demand and are to be settled in cash.

Investment payables denominated in foreign currencies at 31 March are as follows: United States Dollars Others 19.
Provisions Group and Corporation 2018 $’000 1,835 245 2017 $’000 4,110 1,027 Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 At 1 April Provision arose during the financial year Provision utilised during the year Write back of provision 49,094 82,683 48,956 82,545 21 – 21 – (4,024) (28,900) (9,089) (24,500) (4,024) (28,900) (9,089) (24,500) At 31 March 16,191 49,094 16,053 48,956 Comprises: Current Non-current Total 14,587 1,604 14,636 34,458 14,587 1,466 14,636 34,320 16,191 49,094 16,053 48,956 Provision represents legal and constructive obligation for the provision of certain infrastructure and amenities to purchasers of Sentosa Cove’s land, for which management expects to incur expenditure.
- 45 - 45 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 20.
Deferred capital grants At 1 April Amounts amortised Amounts received At 31 March Comprises Current Non-current Group and Corporation 2018 $’000 11,777 (566) 697 2017 $’000 12,343 (566) – 11,908 11,777 566 11,342 11,908 566 11,211 11,777 Total capital grants received since establishment 511,068 510,371 Deferred capital grants relate to grants received from the Government for the purchase of certain property, plant and equipment.
21(a) Deferred membership fee Club membership fee At 1 April Additions Credited to profit or loss At 31 March 2018 $'000 62,575 75 62,650 (4,999) 2017 $'000 66,880 118 66,998 (4,423) 57,651 62,575 The additions represent the members' contributions for the lease renewal in respect of Tanjong Golf Course and Serapong Golf Course and the redevelopment of Tanjong Golf Course.
- 46 - 46 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 21(a) Deferred membership fee (cont’d) Term membership fee At 1 April Additions Credited to profit or loss At 31 March Comprises: Current Non-current Total 21(b) Deferred lease income Deferred lease income At 1 April Amounts taken to profit or loss: - Lease income amortised (Note 24) At 31 March Comprises: Current Non-current Total 2018 $'000 1,061 2,835 3,896 (2,686) 2017 $'000 965 2,415 3,380 (2,319) 1,210 1,061 6,208 52,653 58,861 6,056 57,580 63,636 Group and Corporation 2018 $’000 2017 $’000 44,925 46,071 (1,139) (1,146) 43,786 44,925 1,139 42,647 43,786 1,146 43,779 44,925 Deferred lease income mainly comprises lease, service and development fees, and upfront premium received in respect of long-term leases.
- 47 - 47 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 22.

Provision for contribution to Consolidated Fund The Corporation is required to contribute to the Consolidated Fund in accordance with the Statutory Corporations (Contribution to Consolidated Fund) Act (Chapter 319A).
The Club has obtained written consent from the Ministry of Finance, that membership entrance fees recognised as income upfront prior to 1 April 1999 under the previous revenue recognition policy would not be subject to contribution, when these fees are deferred and recognised as income over the remaining lease term of the land under the current accounting policy.
Hence, the membership entrance fee income of $2,029,000 (2017: $2,029,000) resulting from the amortisation of deferred membership fee is not subject to contribution to Consolidated Fund.
Group and Corporation 2018 $’000 2017 $’000 Net surplus of the Corporation before contribution to Consolidated Fund Deferred membership fee on membership entrance Unutilised loss brought forward 58,196 (2,029) – 59,126 (2,029) (44,099) Net surplus subject to contribution to Consolidated Fund 56,167 12,998 Contribution to Consolidated Fund: Current year Prior years under provision Total 9,549 – 9,549 2,209 195 2,404 The contribution for the financial year under review is based on 17% of the net surplus, if any, of the Corporation.
- 48 - 48 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 23.

Deferred tax liabilities Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same tax authority.
The amounts determined after appropriate offsetting are included in the statement of financial position as follows: At 1 April 2016 $’000 Recognised in profit or loss $’000 At 31 March 2017 and 1 April 2017 $’000 Recognised in profit or loss $’000 At 31 March 2018 $’000 Group Deferred tax liabilities Property, plant and equipment (1,190) 269 (921) 104 (817) Deferred tax assets have not been recognised in respect of the following items: Group Unutilised tax losses 2018 $’000 2017 $’000 3,400 3,848 The unutilised tax losses and capital allowances relating to certain subsidiaries are subject to agreement by the tax authorities and compliance with the relevant provisions of Singapore Income Tax Act.
At the reporting date, the Group has not recognised deferred tax assets arising from unutilised tax losses that are available for offset against future taxable profits, for which no deferred tax asset is recognised, as it is not probable that taxable profits will be available against which the deferred tax assets can be utilised.

24.
24.

Rental and hiring of facilities Rental income Lease income amortised ((Note 21(b)) Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 46,244 43,477 51,832 46,426 1,139 1,146 1,139 1,146 47,383 44,623 52,971 47,572 - 49 - 49 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 25.
Investment income Dividend income Interest income Realised fair value gain/(loss) on investment Unrealised fair value (loss)/gain on investment Net foreign currency exchange (loss)/gain Other investment expenses Group and Corporation 2018 $’000 4,749 25,623 28,193 (26,975) (479) (2,801) 2017 $’000 2,699 11,878 (8,091) 5,958 587 (1,086) 28,310 11,945 26.
Other revenue Club income Sales of merchandise, net of discounts Headquarter support cost recovery Sponsorship income Food and beverage Maintenance fund contributions Others 27.
Staff costs Wages and salaries CPF contributions Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 26,510 22,979 26,510 22,979 9,118 8,472 – – – 486 16,171 10,564 2,675 – 928 12,346 8,594 3,085 3,209 285 5,060 10,564 2,304 1,787 412 3,414 8,594 3,191 65,524 56,404 47,932 40,377 Group Corporation 2018 $’000 71,930 14,522 2017 $’000 67,660 12,410 2018 $’000 61,105 7,637 2017 $’000 59,009 6,572 86,452 80,070 68,742 65,581 - 50 - 50 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 28.
General and administrative expenses The following items have been included expenses: in arriving at general and administrative Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 Property tax Utilities Land held for sale written off Investment related expenses Professional and consultancy fees Printing and stationery Travelling and transport Exchange loss/(gain) Changes in fair value of hedged firm commitment Changes in fair value of hedging instruments Loss on disposal of property, plant and equipment Operating lease expenses 5,459 4,523 – 3,162 2,517 1,607 2,478 259 (993) 993 4,836 920 2,949 4,827 3,028 1,934 3,812 1,671 1,626 (353) 697 (697) 5,004 772 4,890 3,371 – 3,162 2,828 1,392 2,401 251 (993) 993 4,038 197 4,415 3,935 3,028 1,934 3,359 1,516 1,459 (372) 697 (697) 4,669 101 - 51 - 51 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 29.
Income tax expense/(credit) The Corporation is a tax exempt institution under the provision of the Income Tax Act (Chapter 134, 2008 Revised Edition).

The subsidiaries of the Corporation are subject to tax under Singapore income tax legislation.
Current tax expense Current year Under/(over) provision in respect of prior years Deferred tax credit Current year Over provision in respect of prior years Total income tax expense/(credit) Reconciliation of effective tax rate Group 2018 $’000 2017 $’000 1,703 241 1,944 (104) – (104) 1,840 565 (455) 110 (269) – (269) (159) Surplus before income tax 67,588 69,762 Tax using Singapore tax rate at 17% Surplus not subject to tax Non-deductible expenses Income not subject to tax Effect of partial tax exemption and tax relief Deferred tax assets not recognised Benefits from previously unrecognised tax losses Under/(over) provision in respect of prior years Others 11,490 (9,893) 169 (100) (72) – (76) 241 81 11,860 (9,621) 27 (1,643) (55) 119 – (455) (391) 1,840 (159) - 52 - 52 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 30.
Commitments (a) Capital commitments Capital expenditure contracted for as at the end of the reporting period but not recognised in the financial statements is as follows: Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 Capital commitments in respect of property, plant and equipment 21,980 44,901 20,832 44,345 (b) Operating lease commitments - as lessor The Group leases land to certain hotels and other tenants for 3 to 92 (2017: 3 to 92) years under operating leases.
There are no restrictions placed upon the Group and the Corporation by entering into these leases.

Some leases has escalation clauses.

Lease income is based on a fixed lump sum payment, which is amortised over the lease period, a fixed monthly rental, and a variable rental payment based on a percentage of the tenant's revenue derived from using the leased land.
Lease income recognised in the profit or loss of the Group and the Corporation during the financial year amounted to $47,383,000 (2017: $44,623,000) and $52,971,000 (2017: $47,572,000) respectively, of which $15,010,000 (2017: $15,260,000) was related to the variable rental income received during the financial year.
At 31 March, the Group has commitments for future minimum lease receipts under non-cancellable operating leases as follows: Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 Within 1 year Within 2 to 5 years After 5 years 29,690 96,070 1,030,919 29,792 98,428 1,017,954 33,271 99,851 1,030,919 31,989 101,817 1,017,954 1,156,679 1,146,174 1,164,041 1,151,760 - 53 - 53 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 30.
Commitments (cont'd) (c) Operating lease commitments - as lessee The operating lease commitments mainly relate to the tenancy of the Group's premises.

The leases run for a period of 2 to 15 (2017: 2 to 15) years with an option to renew the leases after that date.

Within 1 year Within 2 to 5 years After 5 years Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 761 3,242 4,335 2,796 4,893 6,279 8,338 13,968 155 127 – 282 459 179 – 638 31.
Significant related party transactions (a) Compensation of key management personnel Key management personnel of the Group are those persons having the authority and responsibility for planning, directing and controlling the activities of the entity.
Key management personnel compensation comprises: Short-term employee benefits CPF contributions Board members’ fees Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 7,766 411 156 8,333 8,329 397 169 8,895 5,292 240 129 5,661 5,502 226 118 5,846 - 54 - 54 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 31.
Significant related party transactions (cont’d) (b) Other significant related party transactions During the financial year, other than those disclosed elsewhere in the financial statements, the following significant transactions were carried out by the Group and Corporation with its related parties in the normal course of business on terms agreed between the parties.
Group Corporation 2018 $’000 2017 $’000 2018 $’000 2017 $’000 Ministries and Statutory Boards Purchases and services paid to other ministries Purchases and services paid to other statutory boards Services rendered to other ministries Services rendered to other statutory board Subsidiaries Admission fee income from subsidiaries Rental income from subsidiaries Headquarter support fee income from subsidiaries Purchase of goods and services from subsidiaries Management fee expense paid to subsidiaries Joint ventures Rental income from joint venture Other related parties Services rendered by related parties Services rendered to related parties 3,184 2 3,184 2 2,613 2,063 2,476 1,842 21 892 225 4,228 14 868 225 4,200 – – – – – – – – – – 2,412 5,876 3,209 2,458 3,060 1,787 18,713 13,146 42,584 35,612 689 689 689 689 267 63 346 149 238 56 340 122 - 55 - 55 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 32.
Fair value of assets and liabilities (a) Fair value hierarchy The Group categorises fair value measurements using a fair value hierarchy that is dependent on the valuation inputs used as follows: - - - Level 1 – Quoted prices (unadjusted) in active market for identical assets or liabilities that the Group can access at the measurement date, Level 2 – Inputs other that quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and Level 3 – Unobservable inputs for the asset or liability.
Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
(b) Assets and liabilities measured at fair value The following table shows an analysis of each class of assets and liabilities measured at fair value at the end of reporting period: Group and Corporation Level 1 S$'000 Level 2 S$'000 Total S$'000 2018 Financial assets: Singapore government bonds Other government bonds Corporate bonds Equity securities Sub-Total Derivative financial instruments Futures Forward foreign exchange contracts Sub-Total Total Financial liabilities: Derivative financial instruments Futures Forward foreign exchange contracts Non derivative financial instruments Firm commitment Total 127,955 111,144 539,891 199,678 978,668 – – – – – 353 – 353 – 3,820 3,820 127,955 111,144 539,891 199,678 978,668 353 3,820 4,173 979,021 3,820 982,841 (9) – – (9) – (638) (34) (672) (9) (638) (34) (681) - 56 - 56 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 32.
Fair value of assets and liabilities (cont'd) (b) Assets and liabilities measured at fair value (cont'd) Group and Corporation Level 1 S$'000 Level 2 S$'000 Total S$'000 2017 Financial assets: Singapore government bonds Other government bonds Corporate bonds Equity securities Sub-Total Derivative financial instruments Futures Forward foreign exchange contracts Sub-Total Total Financial liabilities: Derivative financial instruments Futures Forward foreign exchange contracts Non derivative financial instruments Firm commitment Total (c) Level 2 fair value measurements 115,009 130,099 510,555 182,987 938,650 – – – – – 145 – 145 – 4,933 4,933 115,009 130,099 510,555 182,987 938,650 145 4,933 5,078 938,795 4,933 943,728 (14) – – (14) – (700) (14) (700) (1,028) (1,028) (1,728) (1,742) The following is a description of the valuation techniques and inputs used in the fair value measurement for assets and liabilities that are categorised within Level 2 of the fair value hierarchy: Derivatives Forward currency contracts are valued using a valuation technique with market observable inputs.
The most frequently applied valuation techniques include forward pricing using present value calculations.

The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and forward rate curves.

- 57 - 57 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 33.
Financial risk management objectives and policies Overview The Group is exposed to financial risks arising from its operations, investments and the use of financial instruments.

The key financial risks include credit risk, liquidity risk, interest rate risk, foreign currency risk and market risk.

The board of directors reviews and agrees policies and procedures for the management of these risks.
It has always been the Group's policy that no trading in derivatives for speculative purposes shall be undertaken.

The following sections provide details regarding the Group's exposure to the above- mentioned financial risks and the objectives, policies and processes for the management of these risks.

There has been no change to the Group’s exposure to these financial risks or the manner in which it manages and measures the risks.
(a) Credit risk Credit risk is the risk of loss that may arise from outstanding investment, financial instruments, trade and other receivables should a counterparty default on its obligations.

The major classes of financial assets of the Group are investments managed by professional fund managers, bank deposits, trade and other receivables.
The Group limits its credit risk exposure in respect of investments and financial instruments by investing in fixed income securities rated at least Investment Grade and specifying maximum exposure that can transacted with any one counterparty.

For trade and other receivables, the Group’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.

The Group trades only with recognised and creditworthy third parties.
It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures.

In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.

Hence, the Group does not expect to incur material credit losses.

Cash and fixed deposits are placed with government and reputable and regulated financial institutions.
For other financial assets, the Group minimises credit risk by dealing mainly with high credit rating counterparties.

Exposure to credit risk At the end of the reporting period, the Group’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the balance sheet.

At the reporting date, approximately 24% (2017: 32%) of the Group’s trade receivables were due from 5 (2017: 5) major customers located in Singapore.
Financial assets that are neither past due nor impaired Trade and other receivables that are neither past due nor impaired are with creditworthy debtors with good payment record with the Group.

Cash and cash equivalents that are neither past due nor impaired are placed with or entered into with reputable financial institutions or companies with high credit ratings and no history of default.
- 58 - 58 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 33.

Financial risk management objectives and policies (cont'd) (a) Credit risk (cont'd) Financial assets that are either past due or impaired Information regarding financial assets that are either past due or impaired is disclosed in Note 11 (Trade and other receivables).
(b) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds.

The Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of non-investment financial assets and liabilities.

In addition, the Group is also exposed to risk of insufficient liquidity in the market for its investments and financial instruments that may limit its ability to liquidate these investments at a reasonable fair value.
As part of its overall liquidity management, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group’s operations and mitigate the effects of fluctuations in cash flows.

SDC also limits exposure to only investments and financial instruments with sufficient market liquidity.
Analysis of financial instruments by remaining contractual maturities The table below summaries the expected contractual undiscounted cash outflows of financial liabilities, including interest payments.
Group Financial liabilities: Trade and other payables Firm commitment Total undiscounted financial liabilities Corporation Financial liabilities: Trade and other payables Firm commitment Total undiscounted financial liabilities 2018 $’000 One to five years One year or less Total One year or less 2017 $’000 One to five years Total 85,219 3,102 966 – 86,185 3,102 89,690 22,026 – – 89,690 22,026 88,321 966 89,287 111,716 – 111,716 2018 $’000 One to five years One year or less Total One year or less 2017 $’000 One to five years Total 134,727 3,102 966 – 135,693 3,102 151,649 22,026 – – 151,649 22,026 137,829 966 138,795 173,675 – 173,675 - 59 - 59 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 33.
Financial risk management objectives and policies (cont'd) (c) Interest rate risk (i) Investments Interest rate risk is the risk that the fair value or future cash flows of the Group's investments and financial instruments will fluctuate because of changes in market interest rates.

The Group is subjected to interest rate risk as it invests in Singapore government bonds, other government bonds and corporate bonds.
The Group manages its interest rate risk through having a diversified portfolio and limits the allowable deviations for duration, thus monitoring and controlling exposure risk.

The performance of the externally managed funds is regularly reviewed by the Internal Investment Team.

The sensitivity analysis below has been determined based on exposures to interest rate risks at the reporting date.
In respect of the floating rate bonds, a +/- 1% (2017: 1%) change in interest rate in a +/- S$623,000 (2017: S$568,000) as at March 2018 will result increase/decrease in interest income for the Group and Corporation.

This analysis was performed assuming all other variables remain constant.
(ii) Other Financial Assets and Financial Liabilities Interest rate risk is the risk that the fair value or future cash flows of the Group's non-investment financial instruments will fluctuate because of changes in market interest rates.

The Group's exposure to interest rate risk arises primarily from its deposits with the Accountant-General's Department.

The Group's policy is to obtain the most favourable interest rates available without increasing its interest rate exposure.
- 60 - 60 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 33.
Financial risk management objectives and policies (cont'd) (c) Interest rate risk (cont'd) (ii) Other Financial Assets and Financial Liabilities (cont'd) At the reporting date, if interest rates had been 25 (2017: 25) basis points higher/lower with all other variables held constant, the Group's and the Corporation's net surplus/(deficit) before contribution to Consolidated Fund would have been higher/lower by the amounts shown below.
2018 2017 25 basis point increase $’000 25 basis point decrease $’000 25 basis point increase $’000 25 basis point decrease $’000 Group Deposits placed with Accountant-General’s Department (Note 14) Fixed deposits (Note 14) Corporation Deposits placed with Accountant-General’s Department (Note 14) Fixed deposits (Note 14) 429 – 429 317 – 317 (429) – (429) (317) – (317) 345 5 350 290 5 295 (345) (5) (350) (290) (5) (295) - 61 - 61 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 33.
Financial risk management objectives and policies (cont'd) (d) Foreign currency risk (i) Investments The Group’s investments and financial instruments are held in various foreign currencies, including United States Dollars, Hong Kong Dollars and Japanese Yen, and therefore exposed to foreign exchange risk.

The Group manages its foreign currency exposure by hedging through currency forward contracts as stipulated in the Group’s foreign currency hedging policy.
The Group’s foreign currency exposure for investments and financial instruments as at end of each reporting period are as follows: Group Corporation 2018 $’000 48,794 36,693 8,060 86,595 2017 $’000 42,090 36,989 11,344 63,191 2018 $’000 48,794 36,693 8,060 86,595 2017 $’000 42,090 36,989 11,344 63,191 United States Dollars Hong Kong Dollars Japanese Yen Others The following table demonstrates the sensitivity of the Group’s surplus to a reasonably possible change in the United State Dollars, Hong Kong Dollars and Japanese Yen exchange rates against SGD with all other variables held constant.
SGD/USD SGD/HKD SGD/JPY - strengthened 1% - weakened 1% - strengthened 1% - weakened 1% - strengthened 1% - weakened 1% 2018 $’000 2017 $’000 488 (488) 367 (367) 8 (8) 421 (421) 370 (370) 110 (110) - 62 - 62 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 33.
Financial risk management objectives and policies (cont’d) (d) Foreign currency risk (cont’d) (ii) Other Financial Assets and Financial Liabilities The Group’s operation is not exposed to significant foreign exchange risk as most of its transactions are transacted in Singapore dollars.
At the end of each reporting period, the carrying amounts of non-investment financial assets and liabilities denominated in foreign currencies at 31 March are mainly in United States Dollars and Japanese Yen are as follows: Group Corporation Assets Liabilities Assets Liabilities 2018 $’000 2017 $’000 2018 $’000 2017 $’000 2018 $’000 2017 $’000 2018 $’000 2017 $’000 United States Dollars Japanese Yen Others 23,483 1,140 4,036 34,594 20,722 5,114 1,902 - 247 4,132 30 1,397 23,483 1,140 4,036 34,594 20,722 5,114 1,902 - 247 4,132 30 1,397 The following table demonstrates the sensitivity of the Group’s surplus to a reasonably possible change in the United State Dollars and Japanese Yen exchange rates against SGD with all other variables held constant.
SGD/USD SGD/JPY - strengthened 1% - weakened 1% - strengthened 1% - weakened 1% (e) Market price risk 2018 $’000 2017 $’000 216 (216) 11 (11) 305 (305) 207 (207) Market price risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes in market prices.

The Group is exposed to market price risk arising from its investments in quoted equity securities and bonds.
The Group manages its price risk through having a diversified portfolio and target weights, thus monitoring and controlling exposure risk.

The performance of the externally managed funds is regularly monitored by the Internal Investment Team and reported to the Management and the Board of Directors.

In respect of these investments, a +/- 2% (2017: 2%) change in investment value as at 31 March 2018 will (2017: S$18,773,000) increase/decrease in net surplus for the Group and Corporation.
This analysis has been performed with all other variables constant.

in a +/- S$19,573,000 result All the above sensitivity disclosures in this note has been disclosed in accordance with the requirements of SB-FRS 107.

In Management’s opinion, the sensitivity analysis is not fully representative of the risk considerations for its investments.

The Group’s investments are regularly assessed with a larger spectrum of risk considerations included in the long term asset allocation policy.
- 63 - 63 AnnualFinancial Statements 2017/2018 Sentosa Development Corporation and its subsidiaries Notes to the financial statements For the financial year ended 31 March 2018 34.

Capital management The Group manages its capital in accordance with the Capital Management Framework formulated by the Ministry of Finance.

Under this Framework, the Group is required to draw on its accumulated surpluses, existing equity, debt or additional equity contribution from the Government.
The Group defines capital as capital contributed by government and accumulated surplus.

The Group’s approach to capital management remains unchanged from the financial year ended 31 March 2017.

35.

Authorisation of financial statements for issue The financial statements for the financial year ended 31 March 2018 were authorised for issue in accordance with a resolution of the directors on 20 June 2018.

- 64 - 64 AnnualFinancial Statements 2017/2018