A N N U A L R E P O R T 2 0 1 6
Balance Sheet
Non-current assets
The increase in the Group’s non-current assets of approximately S$2.9
million or 10.2% was mainly due to:
a. additions of plant and equipment, capitalisation of renovation costs
for the Group’s new and existing retail outlets, and capitalisation
of construction and renovation cost incurred for the Group’s New
Factory. This was partially offset by depreciation expenses and fixed
assets written off for FY2016; and
b. an increase in intangible assets following the purchase of a new
enterprise resource planning software and a club membership;
partially offset by
c. a decrease in long term deposits largely because of reclassification of
long term lease deposits to short term lease deposits, in accordance
with the respective lease tenures, offset by additional lease deposits
paid to secure new outlets.
Current assets
The decrease in the Group’s current assets of approximately S$490,000 or
2.1% was mainly due to:
a. a decrease in deposits of approximately S$290,000 mainly due to
the refund of deposits for closed outlets, offset by reclassification of
lease deposits from long term to short term in accordance with the
lease tenures; and
b. a decrease of approximately S$740,000 in cash and bank balances
mainly due to the purchase of property, plant and equipment, the
repayment of bank loans and finance leases, and the dividends
paid during FY2016, partially offset by cash inflow from operating
activities, and proceeds from bank loan for the construction and
renovation of the New Factory.
The decrease in current assets was partially offset by an increase in
inventories largely attributable to higher purchases of raw materials
at more favourable bulk prices, and an increase in prepayment due to
advance payments for equipment purchase.
Current liabilities
The increase in the Group’s current liabilities of approximately S$973,000
or 9.8% was mainly due to:
a. an increase in trade and other payables of S$1.7 million due to an
increase in period-end billings by our trade suppliers and contractors;
partially offset by
b. a decrease in provision for taxation of S$812,000 mainly due to tax
payment made during FY2016, and lower current tax provision for
the current financial year.
Non-current liabilities
The Group’s non-current liabilities increased by approximately S$115,000
or 1.3% mainly due to increase in deferred tax provision for FY2016, offset
by the repayment of bank loans and finance lease during the year.
Net working capital
As at 31 March 2016, the Group had a positive net working capital of
approximately S$12.2 million as compared with approximately S$13.7
million as at 31 March 2015.
Cash flow
For FY2016, the Group generated an operating profit before working
capital changes of approximately S$10.6 million. Net cash generated
from operating activities, inclusive of working capital changes, amounted
to approximately S$10.6 million in FY2016.
