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CERTIFIED PUBLIC ACCOUNTANTSBONG KONG

Director

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MARCH 31, 2013

FINANClALSTATEMENTS

AND

REPORT

DEMOCRATIC ALLIANCE FOR THE BETTERMENT

ANDPROGRESS OF BONG KONG

I ff~ Filed I

YUEN Ching Bor, Stephen* YULai Fan

LUI( Tei, Lewis* ORChong Shing WilsonPANGCheungWai,ThomasPOONChun YuenQUAT, ElizabethSO OiKwanTAM Wing Fun, EricTAMYiu ChungTSUI Hung Ying

• WONG Kin PanWONGKine YuenWONGKwok Yan

• WONGTat Tung* YEUNGMan YuiYEUNGWai Foon

LAl Wing Ho, J~LAUKwok FanLEEWai King, Starry

• L1 Ka Leung PhilipLIKam Man, Tony

* LI Sai Wing• LOKwong ShingAndyLOYeeHangunKin

-I-

• Appointed on April 19,2013

CHAN Han PanCHANHok FungCHAN KokWah, BenCHANMan Ki,Maggie

* CHAN Pok Chi* CHAN SiuTongCHANWai DuneCHAN Yung, BraveCHENGWing Shun, VincentCHEUNGChing WanCHEUNGKwokKwanCHIANG Lai WanCHOWHo Ding, HoldenCHOYSoYuk

* CHULapWaiCHUNG Ka Man, JacquelineFUNGPui Cheung

* HOChun YinHUlWah Kit,MichaelHUNGKamlnHUNGLin ChamIP Ngo Tung, Chris

* 10 Chun WahKANChiHo

• KOO Yeung Pong

Central committee membersThe following persons arc the committee members of the Alliance during theyear and up to the date of this report:

(Listedin Alphabetical Order)

CHANHakKan

The results of the Alliance for the year ended March 31, 2013 and the state ofaffairs of the Alliance as at that date are set out in the financial statements onpages 5 to 27.

11412011to 31/312012

HK$1,086,693.27

10,449,955.7711,536,649.04

11412012to 31/312013

HKS959,618.32

11,536,649.0412,496,267.36

Surplus for the yearGeneral Fund brought forwardGeneral Fund carried forward

Financial results

Fixed assetsMovements in fixed assets during the year are set out in note 8 to the financialstatements .

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

The Central Committee members present herewith their annual report togetherwith the audited financial statements of Democratic Alliance for the Bettermentand Progress of Hong Kong (lithe Alliance") for the year ended March 31,2013.

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~±htcblf£~MDEMOCRATIC ALLIANCE FOR THE BETIERMENT AND PROGRESS OF BONG KONGtp~jld~1fReport of Central Committee

-2-

ChairmanTAM Yiu Chung ••*

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~~'=~-=:1f.+F.J=+J\BHong Kong, October 28,2013

*tp~A.$On behalf of the Central Committee

AuditorThe auditors, Messrs. Lau & Cho, Certified Public Accountants, nowretire and, being eligible, offer themselves for re-appointment.

DonationsDonations made by the Alliance during the year amounted to HKS56,000(2012: HK$97,000).

Committee members' interests in contractsApart from as disclosed in note 16 to these financial statements, nocontracts of significance in relation to the Alliance's operations to whichthe Alliance was a party and in which a Committee member of theAlliance had a material interest, whether directly or indirectly, subsistedat the end of the year or at any time during the year.

KWOK On Yin, AnnieLAM KwongYuLEE Kwun Yee KennyLEE Shui SingYEUNG TszHei

Resigned on April 19, 2013AU YEUNG Sei KwokCHANKamLamCHAN Kwok KaiCHAN Pal<Li, BernardCHAU Chuen HeungCHUNG Shu Kun, Christopher

Resigned on December 19,2012LAUKongWah

Central committee members (Continued)

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~.x.mm~iS;.MDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONGtp~~tni~t!JReport of Central Committee

(Continued)

-3-

(Continued)

Auditor's responsibilityOur responsibility is to express an opmion on these financialstatements based on our audit. This report is made solely to you, as abody, in accordance with Section 141of the Hong Kong CompaniesOrdinance and for no other purposes. We do not assumeresponsibilitytowards or accept liability to any other person for the contents of thisreport. We conducted our audit in accordance with Hong KongStandards on Auditing issued by the Hong Kong Institute of CertifiedPublic Accountants. Those standards require that we comply withethical requirements and plan and perform the audit to obtainreasonable assurance as to whether the financial statements are freefrommaterial misstatement.

Committee members' responsibility for the financial statementsThe Committee members are responsible for the preparation and thetrue and fair presentation of these financial statements in accordancewith Hong Kong Financial Reporting Standards issued by the HongKong Institute of Certified Public Accountants and the Hong KongCompanies Ordinance, and for such internal control as the committeemembers determine is necessary to enable the preparation of financialstatements that are free from material misstatement, whether due tofraud or error.

We have audited the financial statements of Democratic Alliance forthe Betterment and Progress of Hong Kong (litheAlliance") set out onpages 5 to 27, which comprise the statement of financialposition as atMarch 31, 2013, and the statement of comprehensive income andexpenditure, statement of changes in funds and statement of cashflows for the year then ended, and a summary of significantaccounting policies and other explanatory information.

INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF DEMOCRATIC ALLIANCE FOR

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

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17th Floor, Hing Yip Commercial Centre,272-284 Des Voeux Road Central, Hong Kong.Telephone (852) 2542 1968Facsimile (852)25410049CERTIFIED PUBLIC ACCOUI'ITANTS

Lau & Cho

-4-

HongKong, October 28, 2013

Lau& ChoCertified Public Accountants

OpinionIn our opinion, the financial statements give a true and fair view ofthe state of the Alliance's affairs as at March 31, 2013 and of its'surplus and cash flows for the year then ended in accordance withHong Kong Financial Reporting Standards and have been properlyprepared in accordance with the Hong KongCompaniesOrdinance.

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~{I',.mWi' ~{I'~.Pfi~~~;anti!mhE1E:5:T We believe that the audit evidence we have obtained is sufficient;f[J~.jjg~ilt{l',~*gt~Ji!Ji~£~. and appropriate to provide a basis for our audit opinion.

Auditor's responsibility (Continued)An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to theAlliance's preparation and true and fair presentation of the financialstatements in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Alliance's internal control. Anaudit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates madeby the committee members, as well as evaluating the overallpresentation of the financial statements.

INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF DEMOCRATIC ALLIANCE FORTHE BETI'ERMENf ANDPROGRESS OF HONG KONG

(Incorporated in Hong Kong and limited by guarantee)

(Continued)

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CERTIFIED PUBLIC ACCOUNTMTS

Lau & Cho

- 5 -

~9~27Ji(fJl!#tt~*Mlfti1!~ItIlHlH]} •The notes on pages 9 to 27 are an integral part of these financial statements.

~~U1it£QMDEMOCRATIC ALLIANCE FOR THE BETIERMENT ANDPROGRESS OF HONG KONG~itiit&AW~ili~STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE.~=.-=~=~=+-8k~~FOR THE YEAR ENDED MARCH 31,2013

IIf.ttt 2013 2012Note HKS HK$

l&A Income

*Am~l&A Donations received from members 67,163,230.00 76,221,520.00tt.l&~ Members' subscriptions 313,360.00 368,360.005i.$52iItIl&A Income from branch activities 8,345,862.31 7,766,658.89~Aft~§L&A Income from committee projects 1,024,722.20 392,245.20.~52iJhl&A Income from fund raising activities 30,344,900.00(.. ;tt:fI!!l&A Other income 46,712.21 414.94

!Il&A Total income _}9.?!.~.~~!!.~.~.7?_. ..- ...~~?!.~~!~-~~.:.~...

5i.tfi Expenditure

m~'&ff~5i.tfi Rental and administrative expenses 62,811,791.78 58,691,559.95

~~ft~§5i.tfi Committee project expenses 4,352,633.28 3,147,739.20

5i.$~51b5i.te Branch activities expenses 36,071,786.69 19,999,183.83

.h'tt~II.J3Z:te Fund raising activities expenses 1,151,018.80

~fi'&~11M!~1l Depreciation on equipment,!JT!i furniture and fixtures 1,382,866.75 1,314,951.68

±U~~!JT!i Depreciation on leasehold landand buildings 509,071.10 509,071.10

C. lI5i.tti Total expenditure ....~.9.~!~.72?~.~.~.4Q... ..-....~~?§.~~!.?~~:?.~...~LGltit Surplus for the year (6) 959,618.32 1,086,693.27

~IJr;1tffZ:i:OOl&~ Other comprehensive income for the_year

*SFll:i:OO~!!1i Total comprehensive income for the year 959,618.32 1,086,693.27

- 6-

~9~27j{(fJM!G±~*M~fi~~J&e$fit •The notes on pages 9 to 27 are an integral part of these financial statements.

WONG Kine Yuen Ji~i(Honorary Treasurer §S'8'J1ili

TAMYiu Chung •• *Chairman .=t.rm

~M~ 2013 2012Note HKS HKS

~F))i[IIJ.~ NOD-current assets~~'~fR.&a~ Property, plant and equipment (8) .........~9.~~i??!~?:.?p_...~..h_~h~~~.~.?!.?~.~:.~~_5Jit1bj(~ Current assetsm~.&;rtft!l:1t(~ Rental and sundry deposits 1,084,644.80 922,555.80;rttf!ti7!t&~lJi'&fj{Mtt Other receivable and prepayments 185,899.00 100,000.00~L&~m~1:f~lJi Amount due from a related

party (9) 1,200,000.00 800,000.00mfffj~ Cash at banks (11) 17,827,844.65 4,256,147.63C· JJl~ Cash inband (11) 19,596.30 21,899.00

20z317~84.75 611001602.43

5Jit1b:faM Current liabilities1!M~lJilitl7!M.m Accounts payable and accruals 237,322.98 228,200.00fflt&~:qj Receipts in advance 13,014,300.00Wffff:ll1: Bank borrowings (12) 15,219.80 18,289.63

1312661842.78 246,489.635JitIlJJlif~ Net current assets ............?~~?!.!.~~~-..~?.... -.- ..~.~~~~!.~}.~:.~Q_.JI~H Net assets 47,296,267.3 6 46,336,649.04

~~*~: Represented by:

$!~~ Total funds~11iii General fund (10) 12,496,267.36 11,536,649.04lIJH~~Jti Contributions to land and

buildings fund (10) 341800,000.00 3418001000.00

C 47,296,267.36 46,336,649.04

~=~-=~+~=+A8~~~~~~~~m~gApproved and authorised for issue by the Central Committee on October 28, 2013

~~umll.MDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONGJt!831~55l~STATEMENT OF FINANCIAL POSmON1n=~-=.~=.F.J='+-ElAS AT MARCH 31, 2013

.. 7..

~9It27J{~lIf1tt~*M~~~~U${jj.The notes on pages 9 to 27 are an integral part of these financial statements .

~m~~£~~ffl~mm*mM~0~~·The contributions to land and buildings fund are for the purchase of the Alliance's office premises.

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.Il~~~ltifilfi~ Contributions toGeneral land and buildings Hltifund fund Total fundsHKS OKS HKS~=~-~[!}~-BAt April 1, 2011 ._}.~.~~~.?2~.?:.??... ._~.~..&~~9.~:.Q.~... ......~.?~~?~??.?.:r!_..

*~lliiet- Surplus for the year 1,086,693.27 1,086,693.27

C- *1Flt~ftg~mi®:~ Other comprehensiveincome for the year

*1Fll~iml&~~g Total comprehensiveincome for the year .....).~~.~~!.~2.~:.~.?... ....... __ ............... 04•• __ .. ._....~.?g~~.~~.~.~:~Z...

~=~-=~=-~=+-BAt March 31, 2012 11,536,649.04 34,800,000.00 46,336,649.04

*~lliitit Surplus for the year 959,618.32 959,618.32

*~lf~f&~iii®:~ Other comprehensiveincome for the year

*1Fll~im~t!m Total comprehensiveincome for the year 959,618.32 959,618.32

1it=11-=:~=:J3=+-8 At March 31, 2013 12,496,267.36 34,800,000.00 47,296,267.36

~~~~!bil~MDEMOCRATIC ALLIANCE FOR THE BEITERMENT AND PROGRESS OF HONG KONGiIi;&:!AItJ~STATEMENT OF CHANGES INFUNDS.~=.-=~=~=+-8~~~FOR THE YEAR ENDED MARCH 31,2013

-8-

~9:¥27J{®U1ltt~*M5~~®~.~{5.t •The notes on pages 9 to 27 are an integral part of these financial statements.

~~il]l~jfg:mJllDEMOCRATIC ALLIANCE FOR THE BETTERMENT ANDPROGRESS OF HONG KONG~~~II:~STATEMENT OF CASH FLOWS.¥=~-=~=~=+-Bk~~FOR THE YEAR ENDED MARCH 31, 2013

Rtft 2013 2012Note BKS HKS

&Ifi~lbtimi:R Cash flows from operating activities*~lfj!~ Surplus for the year 959,618.32 1,086,693.27~Jl: Adjustments for:iffli Depreciation (8) 1,891,937.85 1,824,022.78fIJ,~l&A Interest received (348.71) (414.94)*ITtfmj(~HmZ Operating cash flowbefore movements in~"iJj.~iUt working capital changes 2,851 ).07.46 2,910,301.11

C~fftl[(JiZ:JttJD Increase inrental and sundry deposits (162,089.00) (68,984.40);ltUl&it~&fflN~ Increase inother receivable andt1ftJO prepayments (85,899.00) (100,000.00)

!1!M~lJi&ll!Mr<m Increase in accounts payable!11m and accruals 9,122.98 22,900.00

fflt&~lJifttJo / (~y) Increase I (Decrease) in receipts in advance 13,014,300.00 (2,012,932.90)

*13~~~'i'U~Z~3?i Net cash generated fromffri/x,,j,mi operating activities ."....!J.~~~.~!~~.~:.~... - .........?~.~.~~~.~:.~}.."

m:jl(~lfhtiU Cash flows from investing activitiesMA¥J.J~·~fm&H*-t Purchase of property, plant

and equipment (8) (1,654,527.00) (1,006,805.50)ffl'~T~M~WntxJf{ Advance to a related party (400,000.00) (200,000.00)~U,~l&A Interest received 348.71 414.94

* 13tQ:l1~iU!ZlJl3?i Net cash used inmlm'mi investing activities "...,,~~.!~.~~!.!.?~:.~~).._._'(~!.~9.~!~.?"~:.~_?),,

Jaji#;U~ZtiiUt Cash flows from financing activities

(. * 13~ji1,U§Zm3?imt!1)'mi Net cash used in financing activities ••••••••••••••• 0-_ ...................... _._ ......_...........................

~~&ti~iJf¥lJ Net increase / (decrease) in111m I (~y) ~tJl cash and cash equivalents 13,572,464.15 (455,106.75)

~fJJZti.& Cash and cash equivalents~~~{I¥J.J at beginning of the year 4,259,757.00 4,714,863.75

~~Z~ Cash and cash equivalentsti~m~ at end of the year (11) 17,832,221.15 4,259,757.00

- 9-

a) Basis of preparation of the flnancial statementsThe measurement basis used in the preparation of thefinancialstatementsis the historical cost

3. Summary of significant accounting policiesThe financial statements have been prepared in accordancewithall applicable Hong Kong Financial Reporting Standards("HKFRSs"),which includes all applicableindividualHongKongFinancialReportingStandards,HongKongAccountingStandards("HKASs") and interpretationsissuedby the HongKong Instituteof Certified Public Accountants ("HKICPA"), accountingprinciples generally accepted in Hong Kong and the disclosurerequirementsof the HongKong CompaniesOrdinance.

a) tI~~$*M~.U!l«lff.'l:~*~~$i~·

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The applicationof the above new and revisedHKFRSs in the currentyear has had no materialeffecton the Alliance'sfinancial performance and positions for the current and prior years and/or the disclosures set out in the financialstatements.

Disclosures- Transfers of FinancialAssetsDeferredTax: Recoveryof UnderlyingAssets

Amendmentsto HKFRS 7Amendmentsto HKAS 12

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2. Application of new and revised Hong Kong Financial Reporting StandardsIn the current year, the Alliance has applied the following new and revised HKFRSs issued by the Hong KongInstitute of CertifiedPublic Accountants.

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The principal activitiesof the Allianceare to acceptsubscriptionsand donations, to promote and encouragelearningand education,to take part in political affairs and to improve social welfare inHong Kong.

1. General informationThe Democratic Alliance for the Betterment and Progress ofHong Kong ("the Alliance") is a company limited by guaranteewith no share capital. The liability of each member is limited toan amount not exceeding HK$20. The address of its registeredoffice is 151F, SUP Tower, 83 King's Road, North Point, HongKong.

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~~m~iSlft~MDEMOCRATIC ALLIANCE FOR THE BETTERMENT ANDPROGRESS OF HONG KONGMHhm~NOTES TO THE FINANCIAL STATEMENTS.~=~-=~=~=+-B~~MFOR THE YEAR ENDEDMARCH 31, 2013

- 10-

e) Revenue recognitionIncome from donations is recognised when cash is receivedand includes all sums received up to the reporting date.

d) Retirement benefit costsPayments to the Mandatory Provident Fund Scheme arecharged as expenses when employees have renderedservice entitling them to the contributions.

c) Cash and cash equivalentsCash and cash equivalents include cash at bank and onhand, demand deposits with banks and other short-termhighly liquid investments with original maturities of threemonths or less that are readily convertible into knownamounts of cash and which are subject to an insignificantrisk of changes in value.

Over the lease term2.5% on straight-linebasis20% on reducingbalance basis20% on reducingbalance basis

Leasehold landBuildingsEquipmentFurniture and fixtures

Depreciation is provided to write off the cost of items ofproperty, plant and equipments over their estimated usefullives and after taking into account their estimated residualvalue, at the following rates per annum:

b) Property, plant and equipmentsProperty, plant and equipment are stated at cost lessaccumulated depreciation and accumulated impairmentlosses.

3. Summary of significant accounting policies (Continued)a) Basis of preparation of the financial statements

(Continued)The preparation of financial statements in conformity withHKFRSs requires the use of certain critical accountingestimates. It also requires management to exercise itsjudgement in the process of applying the Alliance'saccounting policies. The areas involving a higher degreeof judgement or complexity, or areas where assumptionsand estimates are significant to the financial statements, aredisclosed in Note 4.

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a) Ii~~$(.):mtfl1'ii'~M~~~~jm 'Mf%¥il~z~~~fFl:fj;S:=f~.~~&{i5~ • IDJ~ t :(£H!J'll"H~m:z~fIlrp ,m~~~fI~m~~JIT· ~&11Ut!FIJlTziBlII ' P.A&®~&{i5~tt1~~M~¥il~ffifg.m*ziS..mM~w~mtt4fbta.

~~ij!5i15bm.M.DEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONGM~fi*m~NOTES TO THE FINANCIAL STATEMENTS.~=*-=~=~=+-B~~~FOR THE YEAR ENDED MARCH 31,2013

- 11 -

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

(iii) a person identified in (a)(i) bas significantvoting power inthe entity.

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

(b) An entity is related to the Alliance if any of the followingconditions applies:(i) the entity is a post-employment benefit plan for the benefit

of employees of either the Alliance or an entity related tothe Alliance.

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

or has significant voting power in it; or

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

the Alliance if that person:

The Alliance as lesseeRentals payable under operating leases are charged to income andexpenditure account on a straight-line basis over the term of therelevant lease. Benefits received and receivable as an incentive toenter into an operating lease are recognised as a reduction of rentalexpense over the lease term on a straight-linebasis.

f) LeasesLeases of assets are classified as finance leases when the leasestransfer substantially all risks and rewards incidental to ownershipof the assets to the Alliance. All other leases are classified asoperating leases.

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

Revenue from activities and interest courses is recognised uponcompletion of services provided.

3. Summary of sign1ficant accounting policies (Continued)e) Revenue recognition (Continued)

Annual subscription fees are recognized on a straight-linebasis overthe subscription period.

g) IDHI.A.±(a) 3lO~.A.±~~""f7U~{*· ~A

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(iii) (a) ( i) lMTMt.A.±f;f~1lr1l!A1HH~~.fI •

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f) UI'm~~~~ •• ..tJffjm1:ffflm~~~~*$~JlI.!!ti&@J¥iQn:g*~KA. . ~~m~fHi7JJi~m~m~~ • M1r~figmf.0~7tJt~f!-ftm~ •

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3. ~~.tf-~~~(m)e) ~~(")

~ll*ft1£"'U~~WH~lI~$6i~A~·

~~Uftih~.MDEMOCRATIC ALLIANCE FORTlIE BETTERMENT ANDPROGRESS OF HONG KONGM~¥i~~NOTES TO THE FINANCIAL STATEMENTS.~=*-=~=~=+-8~~~FOR THE YEAR ENDED MARCH 31,2013

- 12-

Effective interest methodThe effective interest method is a method of calculating theamortised cost of a debt instrument and of allocating interestincome over the relevant period. The effective interest rate is therate that exactly discounts estimated future cash receipts (includingall fees on points paid or received that form an integral part of theeffective interest rate, transaction costs and other premiums ordiscounts) through the expected life of the debt instrument, or,where appropriate, a shorter period to the net carrying amount oninitial recognition.

Financial assetsThe Alliance's financial assets are classified as loans andreceivables. All regular way purchases or sales of financial assetsare recognised and derecognised on a trade date basis. Regularway purchases or sales are purchases or sales of financial assetsthat require delivery of assets within the time frame established byregulation or convention in the marketplace.

i) Financial instrumentsFinancial assets and financial liabilities are recognised when theAlliance becomes a party to the contractual provisions of theinstruments. Financial assets and financial liabilities are initiallymeasured at fair value. Transaction costs that are directlyattnbutable to the acquisition or issue of financial assets andfinancial liabilities (other than financial assets and financialliabilities at fair value through profit or loss) are added to ordeducted from the fair value of the financial assets or financialliabilities, as appropriate, on initial recognition. Transaction costsdirectly attributable to the acquisition of financial assets orfinancial liabilities at fair value through profit or loss arerecognised immediately in income and expenditure account

3. Summary of significant accounting policies (Continued)h) Borrowing costs

Borrowing costs that are directly attributable to the acquisition,construction or production of an asset that necessarily takes asubstantial period of time to get ready for its intended use or saleare capitalised as part of cost of that asset All other borrowingcosts are charged to the income and expenditure account in theyear in which they are incurred.

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~j:~~!bnMDEMOCRATIC ALLIANCE FOR THE BETTERMENT ANDPROGRESS OF HONG KONGM5¥i~m~NOTES TO THE FINANCIAL STATEMENTS.~=~-=~=~=+-B~~~FOR THE YEAR ENDED MARCH 31, 2013

- 13 -

For certain categories of financial asset, such as tradereceivables, assets that are assessed not to be impairedindividually are assessed for impairment on a collectivebasis. Objective evidence of impairment for a portfolio ofreceivables could include the Alliance's past experience ofcollecting payments, an increase in the number of delayedpayments in the portfolio past the credit period, as well asobservable changes in national or local economicconditions that correlate with default on receivables.

- default or delinquency in interest or principalpayments; or

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

- significant financial difficulty of the issuer or counterparty;or

Objective evidence of impairment could include:

impairment offinancial assetsFinancial assets are assessed for indicators of impairment atthe end of the reporting period. Financial assets are impairedwhere there is objective evidence that, as a result of one ormore events that occurred after the initial recognition of thefinancial asset, the estimated future cash flows of theinvestment have been affected.

Loans and receivablesLoans and receivables are non-derivative financial assets withfixed or determinable payments that are not quoted in an activemarket. At end of each reporting period subsequent to initialrecognition, loans and receivables (including othersreceivable, bank balances and cash) are carried at amortisedcost using the effective interest method, less any identifiedimpairment losses (see accounting policy on impairment offinancial assets below). .

3. Summary of significant accounting policies (Continued)i) Financial instruments (Continued)

Financial assets (Continued)Income is recognised on an effective interest basis for debtinstruments other than those financial assets classified asfinancial assets at fair value through profit or loss.

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~~m~mjl~MDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONGMlffil~u.tttNOTES TO THE FINANCIAL STATEMENTS~~=*-=~=~=+-8~~~FOR THE YEAR ENDED MARCH 31, 2013

- 14-

- - - -~:t~..~.......,:..Interest expense is recognised on an effective interestbasis.

Effective interest methodThe effective interest method is a method of calculating theamortised cost of a financial liability and of allocatinginterestexpense over the relevant period. The effectiveinterest rate isthe rate that exactly discounts estimated future cash paymentsthrough the expected life of the financial liability, or, whereappropriate, a shorterperiod.

The Alliance's financial liabilities (includingaccruals,receiptsin advance, .bank borrowings) are subsequentlymeasured atamortisedcost, using the effective interest ratemethod.

Financial liabilitiesFinancial liabilities issued by the Alliance are classifiedaccording to the substance of the contractual arrangementsentered into and the definitionsof a financialliability.

For financial assets measured at amortised cost, if, in asubsequentperiod, the amountof the impairmentloss decreasesand the decrease can be related objectively to an eventoccurring after the impairment was recognised, the previouslyrecognised impairment loss is reversed through income andexpenditure to the extent that the carrying amount of theinvestment at the date the impairment is reversed does notexceed what the amortised cost would have been had theimpairmentnot been recognised.

The carrying amount of the financial asset is reduced by theimpairment loss directly for all financial assets with theexception of trade receivables, where the carrying amount isreduced throughthe use of an allowanceaccount When a tradereceivable is considered uncollectible, it is writtenoff againstthe allowance account. Subsequent recoveries of amountspreviously written off are credited against the allowanceaccount. Changes in the carrying amount of the allowanceaccount are recognised in incomeand expenditureaccount

3. Summary of significant accounting policies (Continued)i) Financiallnstruments (Continued)

Financial assets (Continued)Impairment offinancial assets (Continued)For financialassets carried at amortisedcost, the amount of theimpairment is the difference between the asset's carryingamount and the present value of estimated future cash flows,discountedat the financialasset'soriginaleffectiveinterest rate.

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~'±'HfiZ~.MDEMOCRATIC ALLIANCE FOR THE BETTERMENT ANDPROGRESS OF HONG KONGM~¥i~IW~NOTES TO THE FINANCIAL STATEMENTS.~=.-=~=~=+-B~~~FOR THE YEAR ENDEDMARCH 31, 2013

- 15 -

Where an impairment loss subsequently reverses, the carryingamount of the asset is increased to the revised estimate of itsrecoverable amount, but SQthat the increased carrying amountdoes not exceed the carrying amount that would have beendetermined had no jmpairment loss been recognised for theasset in prior years. A reversal of an impairment loss isrecognised as income immediately.

j) Impairment of tangible assetsAt the end of the reporting period, the Alliance reviews thecarrying amounts of its tangible assets to determine whetherthere is any indication that those assets have suffered animpairment loss. If any such indication exists, the recoverableamount of the asset is estimated in order to determine the extentof the impairment loss, if any. If the recoverable amount of anasset is estimated to be less than its carrying amount, thecarrying amount of the asset is reduced tQ its recoverableamount, An impairment loss is recognised as an expenditureimmediately.

Financial liabilities are derecognised when the obligationspecified in the relevant contract is discharged, cancelled orexpired. The difference between the carrying amount of thefinancial liability derecognised and the consideration paid orpayable is recognised in income and expenditure account,

3. Summary of significant accounting policies (Continued)i) Financiallnstruments (Continued)

Financial liabilities (CQntinued)DerecQgnitiQnFinancial assets are derecognised when the rights to receivecash flows from the assets expire, or the financial assets aretransferred and the Alliance has transferred substantially all therisks and rewards of ownership of the financial assets. Onderecognition of a financial asset, the difference between theasset's carrying amount and the sum of the considerationreceived and receivable is recognised in income andexpenditure. If the Alliance retains substantially all the risksand rewards of ownership of the transferred assets (includingdiscounted trade receivables with insurance coverage anddiscounted bills), the Alliance continues tQ recognise thefinancial asset and recognise a collateralised borrowing forproceeds received.

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~U~1'Ul.MDEMOCRATIC ALLIANCE FOR THE BETTERMENT ANDPROGRESS OF HONG KONGMfSfi~lWttNOTES TO THE FINANCIAL STATEMENTS.~=~-=~=~=+-8~~MFOR THE YEAR ENDED MARCH 31, 2013

- 16-

5. Committee members' remunerationNo emoluments have been paid or are payable to the committeemembers for their services rendered during the year. (2012:Nil)

b) Impairment on property, plant and equipmentProperty, plant and equipment are reviewed forimpairment whenever events or changes in circumstancesindicate that the carrying amount may not be recoverable.The recoverable amounts are determined based on value­in-use calculations or market valuations. In determiningthe value in use, expected cash flows generated by theasset are discounted to their present values.

a) Useful lives of fixed assetsUseful lives of the Alliance's fixed assets are defined as theperiod over which they are expected to be available for useby the Alliance. This estimate is based on the historicalexperience of the actual useful lives of property, plant andequipment of similar nature and functions. Managementwill increase the depreciation chargewhereuseful lives areless than previously estimated lives, and it will write off orwrite down the assets that have been abandoned or sold.Actual economic lives may differ from estimated usefullives; and actual residual values may differ from estimatedresidual values. Periodic review could result in a change indepreciation lives and residual values and thereforedepreciation expense in future periods.

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

4. Critical accounting estimates and judgementEstimates and judgements are continually evaluated and arebased on historical experience and other factors, includingexpectations of future events that are believed to be reasonableunder the circumstances.

5.• M~jUJTI!lW~Mm-*~~tt)§l*-f~ M~J1!N~ ~LMl~ • (2012.1f.:.)

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c.

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~~.~~lft;.MDEMOCRATIC ALLIANCE FOR THE BETIERMENT AND PROGRESS OF HONG KONGM~¥i~m~NOTES TO THE FINANCIAL STATEMENTS.~=.-=~=~=+-B~~~FOR THE YEAR ENDED MARCH 31,2013

- 17-

8. Property, plant and equipment

±:ftk&.!¥ ~t;ULeasehold land NfJi Furniture !!ftand buUdings Equipment and fixtures Total

HKS HKS HKS HKSCost:AtApri11,2011 37,768,085.00 9,100,427.82 13,060,833.80 59,929,346.62Additions 771,561.10 235,244.40 1,006,805.50AtMarch 31, 2012 37,768,085.00 9,871,988.92 13,296,078.20 60,936,152.12Additions 1!117,931.00 536,596.00 1,654,527.00AtMarch 31, 2013 37z768,085.00 10,989,919.92 131832,674.20 62,590,679.12

Accumulated depredation:At April 1, 2011 2,036,284.40 7,536,815.26 9,056,493.44 18,629,593.10Charge for the year 509,071.10 467,034.73 847,916.95 1,824,022.78At March 31, 2012 2,545,355.50 8,003,849.99 9,904,410.39 20,453,615.88Charge for the year 509!071.10 597,213.99 785,652.76 1!891,937.85At March 31,2013 3,054!426.60 8,601!063.98 10,690,063.15 22,345,553.73

Net book value:AtMarch 31,2013 34!7131658.40 21388,855.94 31142,611.05 4012451125.39

AtMarch 31, 2012 3512221729.50 1!868,138.93 3Z391!667.81 40,482,536.24

7. TaxationThe Alliance is exempted from Hong Kong tax under Section 24(1) of the Hong Kong Inland'Revenue Ordinance.

2013 2012BKS HKS

Staff costs- Salaries, wages and other benefits 43,910,898.61 39,824,287.46- Provident funds contributions 3,337,594.17 3,058,832.87

47,248,492.78 42,883,120.33Audit fee 27,000.00 26,000.00Depreciation 1,891,937.85 1,824,022.78Operating lease rental for

land and buildings 4,136,092.68 3,873,942.78Interest income from banks (348.71)11 (414.94)1Total interest income (348.71) (414.94)

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

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6. *~~~tIt;;$:~1.fj'{tIt~ro~/(~A)~~llfi§ :

~~}@~tim~MDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF BONG KONGM5¥i~IWft!NOTES TO THE FINANCIAL STATEMENTS.¥=*-=~=~=+-S~~~FOR THE YEAR ENDED MARCH 31, 2013

- 18 -

( 10.U~ 10. Total funds KM~£~.00<& Contributions toGeneral land and buildings j!~<&fund fund Total fundsHKS HK$ HKS

m-=.-~Im~-B At April I, 2011 10,449,955.77 34,800,000.00 45,249,955.77*~ll~~ Surplus for the year 1,086,693.27 1,086,693.27

~=~-=~=~=+-El At March 31, 2012 11,536,649.04 34,800,000.00 46,336,649.04~ll~~ Surplus for the year 959,618.32 959,618.32m-=~-=~=J3=+-El At March 31, 2013 12,496,267.36 34,800,000.00 47,296,267.36

11. :mJ?i&ti~1Jf'J.J 11. Cash and cash equivalentsxflKUH'])IW:PD Bank currelll accounts with branches

2013 2012HKS HKS

J;l!lilJj1i:W DAB - Eastern 5,254.66 12.79m~1i:$ DAB - Southern 1,431.81 8,104.06!fl~~$ DAB - Central &Western 2,495.55 5,263.05

( $1i:$ DAB - Wan Chai 3,732.56Wii!1i:$ DAB - Kwun Tong 4,302.76 3,698.53i¥i*fllI1i:ffl! DAB - Wong Tai Sin 2,300.57 1,093.32.1LnlJa:$ DAB - Kowloon City 102,368.36 3,015.05~*~~W DAB - Sham Shui Po 82,130.57 35,017.36~~I!I1i:$ DAB - Yau Tsim Mong . 19,130.93 3,543.32~1t~$ DAB - Kwai Tsing 3,636.09 37.45~)VJ~~ DAB - Tsuen Wan 25,535.39 26,727.71ji;WJ~~ DAB - Yuen Long 419.85 4,273.84tt!:r~1i:$ DAB - Tuen Mun 422.27 1,012.26:1t;"l!i~$ DAB - Northern 25,151.205Ym~m DAB- Sha Tin 5,867.59 3,357.05*ijf~W DAB-Tai Po 3,262.23 4,932.09'fflj".(&JIflfI~1i:fflS DAB - Sai Kung & Tseung Kwan 0 2,946.52.Q~m DAB - Islands 49,954.34 7,299.72

_.._.~!.~~245~~.____..__~.~~!~~_?.:.~_~._

9. Amount due from a related partyThe amount due from Heungkong Business And Professional Services CentreLimited is unsecured, interest free and has no fixed terms of repayment, in whichWen Carson and Wong Kine Yuen have beneficial interests (At June 27, 2013,Wen Carson transferred his own shares to Cheung Kwok Kwan). The principalactivity of the related party is to assist the small and medium-sized entity andprofessional servicing entity into the PRC market.

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

8. M' ftifR&U#<iJ)±~lllm-ft~ P.).-&WJf.ij~~1!f(50~P..li.) •

9. .BIl&:IUI.:i5~lJlB!l&:ftl[IFfti$.IE~ tplC,\1'l1l&0 '5]i<lJi~*U~fiI! ' $e.@.&5$Hfrm~Zim~.~~~~~~~~'5]~~f;jZ.tl~(~2013~6~278 ' 5!Ut~"~~~~Z~f;j7~m~)·~~'lijZ~;U~DM!VJ~~rp/l':!e~&3~~flmUpg~$iI·

~~USilt~MDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONGMSfl~l!MttNOTES TO THE FINANCIAL STATEMENTS.~=.-=~=~=+-8~~MFOR THE YEAR ENDED MARCH 31, 2013

- 19-

2012BK$18,289.63

2013HK$15,219.80Overdraft repayable on demand

At 31 March 2013, interest-bearing bank overdraft was due for repayment asfollows:

18,289.6315,219.80Current liabilitiesUnsecured bank overdraft

2012HK$

2013HKS

12.Bank borrowingsThe analysis of the carrying amount of bank borrowing is as follows:

Cash inhandCash and cash equivalents in thestatement of financial position

Bank overdraftCash and cash equivalents in thestatement of cash flows

17,827,844.65 4,256,147.63

19,596.30 21,899.00

17,847,~0.95 4,278,046.63(15,219.80) (18,289.63)

17,832,221.15 4,259,757.00

Cash at banks

2012HK$

2,770,908.661,349,753.65

2013HK$

4,886,309.9912,629,289.13

Current accountsSavingsaccounts

11. Cash and cash equivalents (Continued)

:(£=~-=if.=F.l=+-8 'H.@,®~1'1~1i:$UWlfl1l3llJ""f :

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5Df!h~fi~1tUIfIZ~rr~1i:

12. ettfffittti&1'1m ~ (t:J lItiiIfim j} fITj(O~ :

ti1nM~~»l;&Zm~

;&~~fJl1o/.Ji&1'1m1i:ufm~5]itit~Zm~

.&m~~{J(1o/.J

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~3:l!~fi•• MDEMOCRATIC ALLIANCE FOR THE BETTERMENT ANDPROGRESS OF HONG KONGMH¥i~lWatNOTES TO THE FINANCIAL STATEMENTS.~=.-=~~~=+-B~~~FOR THE YEAR ENDED MARCH 31, 2013

- 20-

13. §*m.~HF 13. Operating lease arrangementsf'E~*mA As lessee:m-~W8'*~.mm./f'OJ~j)lj~ At the end of the reporting period, the Alliance had commitments~m~gtfIUim~:&11Uil~~Z* for future minimum lease payments for rented premises and*ft{tWl~ft~Z*it:fa:r"f : computer networks under non-cancellable operating leases which

fall due as follows:

2013 2012HK$ HK$

-~pg Within one year 3,262,656.00 2,526,154.001'..•. m=fF.¥~Hi fF.(§:I'5~J!¬ mfF.) Inthe second to fifth year(

inclusive 3,383,337.81 1,570,050.001ifF.~ After five years

6,645,993.81 4,096,204.00

14. :it!1lIJt. 14. Financial instruments*~~M~~M~.~?1Iijl[]l': The Alliance has classified its financial assets in the following

categories:

jtU1f!~Loans and ~nreceivables Total

HK$ HK$m--~-=~-El=+-B At March 31,2013~:&;:1tO:l1Z Rental and sundry deposits 1,084,644.80 1,084,644.80;K:Ul&lt~fflft~ Other receivable and prepayments 185,899.00 185,899.00JJ!l&~~~::iJ~lJi(mtt9) Amount due from a related

( party (note 9) 1,200,000.00 1,200,000.00JJ?:l1Z:&J].:l1Z~1fi~(~tt11) Cash and cash

equivalents (note 11) 17z8471440.95 17,8471440.9520,317,984.75 20z317,984.75

m--~--~=E!=+-B AtMarch 31.2012m:it!&;K:ftM~:l1Z Rental and sundry deposits 922,555.80 922,555.80;JftUt&~lJi&ffH1lilX Other receivable and prepayments 100,000.00 100,000.00~l&rm~::iJ~lJi(l!fttt9) Amount due from a related

party (note 9) 800,000.00 800,000.00m:it!&m:l1Z~{J(~(j!(ltt11) Cash and cash

equivalents (note 11) 4z278z046.63 4z2781046.636,100,602.43 6!100,602.43

BC~U~."MDEMOCRATIC ALLIANCE FOR THE BETTERMENT ANDPROGRESS OF HONG KONGM~fi~~~NOTES TO THE FINANCIAL STATEMENTS.~=*-=~=~=+-8k~~FOR THE YEAR ENDED MARCH 31,2013

- 21 -

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

Credit riskThe credit risk of the Alliance mainly arises from cash and cashequivalents and account receivables. Credit risk arises from thepossibility that the counterparty to a transaction is unwillingor unable tofulfill its obligation with the results that the Alliance thereby suffersfinancial loss. The exposures to these credit risks are closelymonitoredon an ongoing basis by established credit policies. In this regards, thecommittee members of the Alliance consider that the Alliance's creditrisk is adequately monitored.

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

categories:

M~~~:Ittl9M~:ftm

Financial liabilities ~~at amortised cost Total

HK$ HK$At March 31, 2013Accounts payable and accruals 237,322.98 237,322.98Receipts in advance 13,014,300.00 13,014,300.00Bank borrowings (note 12) 15,219.80 15,219.80

13,266,842.78 13,266,842.78

AtMarch 31, 2012Accounts payable and accruals 228,200.00 228,200.00Bank borrowings (note 12) 18,289.63 18,289.63

246,489.63 2461489.63

14. Financial instruments (Continued)The Alliance has classified its financial liabilities in the following

JJbt,&JJt~~{Jt¥lJ~ 1s~Jj.~*-f~ , 1'lSI~J:t}J~~mW ~flfZ~~fj.

w~.Ml.~*~M*:¥twj(Ji1.~±~*Elm~.&m~~{I¥JJ&L1!l&~Jfi·Wji(J!I.I!~:*EIffojti}J*ft6Rin~~~*tt~~*~M~:¥tM~m~ • ftaU,t~®W~~m ' ~~~1it&\j!i*~~DtmtJJjfu~~ •~lItiffi~ , *'~M~A~~*~~MZ1sJtJi1.~eJt7.}-:t~~•

*~M-~lIfFll!U~~I~FJT~1:.~±~Jl\~1H~i(.&t.~,mt!IIJj(~.&t.~.&m~~~(§.tc59Hi§.l.~ , 03JZm.;ffJ$~.&~~Hftl*M~) 0 *~MZ~MlJl\~~~3:~:(fm-~>1<mt:it~{f£ft*~MM~~~&~R~5DtE~fU~. 0(,

lG'-?l--Xg_=FI=±-Bl'.w.ftttlJt.&.w.MWmjKffffi~(mtt 12)

m--~-=~=FI=±-BF!ff~rji&ff!MJtmfflL&~rjiilHtm~(~1itt12)

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14. ~IUA(OO*~~~mMJfjt1Jf7HrHmr:

~~~}f!(b~.MDEMOCRATIC ALLIA1~CEFOR THE BETTERMENT AND PROGRESS OF HONG KONGM5¥i~m~NOTES TO THE FINANCIAL STATEMENTS.~=~-~~~~~+-B~~~FOR THE YEAR ENDED MARCH 31, 2013

- 22-

At March 31. 2013Accounts payableand accruals 237,322.98

Bank borrowings(note 12) 15,219.80

252,542.78

Not laterthan 1 year

HKS

itBI§--ip-&~~ i«ti~

.II4=-F'3¥1JW1 ¥IJ~ ~iiim.Later than1 year and

not later than More than Carrying5 years 5 years amountHKS HKS HKS

237,322.98

15,219.80252,542.78

Summary quantitative data:

Liquidity riskThe Alliance is exposed to liquidity risk on financial liabilities. The Alliance's policyis to regularly monitor current and expected liquidity requirements to ensure that itmaintains sufficient reserves of cash to meet its liquidity requirements in the short andlonger term.

At March 31, 2013, the Alliance has no concentration of risk and overdue receivablesand the maximum exposure to credit risk is represented by the carrying amount of eachfinancial asset.

Rental and sundry depositsOther receivable and prepaymentsAmount due from a related party (note 9)Cash and cash equivalents (note 11)

2013 2012HK$ HKS

1,084,644.80 922,555.80185,899.00 100,000.00

1,200,000.00 800,000.0017,847,440.95 4,278,046.6320z317,984.75 6z100z602.43

Summary quantitative data:

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

m-=¥-=if.=§=±-SI!f.Mtt:~MJ!tm

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iff6~~*~~z)]1tIlJjl(1EJj,~.1:~*i3M~~m'*~M(f-Ji6(~IU~:lEWJiii:~m~~mWJ!t-JmIbJl:az(tgm>J(,fzti*~1t:;E~m:azp)'~;E~WJ&f5[~~~jl(~K*'

~=$-=~=:~=:+-8, *~~~59:~.'*'Z~j(m~&E.~WJZ~t&tt'J!l;t&J!I!~&~f&Ll!l&ttzl&iID{lft~*~MSttM~x~ifiiiii~z-ll*mJ(JJ.l.~·

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mU~ftM~~ltU~~M~D!®:Ml~1.i~lli(fflrff9)m1E'&~~~{J~(mtt11)

~~U~ll.JlDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONGM~fi~~~NOTES TO THE FINANCIAL STATEMENTS.~=.-=~=~=+-8~~MFOR THE YEAR ENDED MARCH 31, 2013

- 23-

Summa~ quantitative data: 2013 2012BKS HKS

FIQating-rate financial ~setsCash at banks 12,629,289.13 1,349,753.65

Bank overdraft (18,289.63) (18,289.632Net interest-bearing assets 12,610,999.50 1,331,464.02

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

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

246,489.63246,489.6318,289.63 18,289.63

228,200.00228,200.00

At March 31. 2012Accounts payableand accruals

Bank borrowings(note 12)

Not laterthan 1year

HKS

iBiI-~@1.>m- m:llffi~

1i~P3JlJJO} JJJlOl JlMH!Later than1year and

not later than More than Carrying5 years S years amountHK$ BKS HKS

14. Financial instruments (Continued)Liquidity risk (Continued)Summary quantitative data:

}!,e,st;IUifi*IHj~at.8R.n~)tj~*tSf(~

*mMZi&~IHlHliH'~f.flI!tt.it~l!tJflJ$tt,@, ' ~m:l!l~1.>i}~mflJ$m~.(.

m:\§[!I.1!Jl/ffJ1!JiJJk*".'iUif;ji}.iJL{l flJ$.ti~·*mM~~m~ffi :I!lflJ$ fj\~ ~ ~ ~H3iflf.f~lt·

m-=¥t-=$=El=±=Bb!f1itlft.&}!.n.tJll ffl

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14. ~1itI:R (&I)~dl!Jl(81)iE.Ulii¥:

~j:il~t;lI'nllDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF BONG KONGJij5il~~ttNOTES TO THE FINANCIAL STATEMENTSa~=.-=~=~=+-8~~~FOR THE YEAR ENDED MARCH 31, 2013

- 24-

Fair valueThe committee members of the Alliance consider that the carryingamounts of fmancial assets and financial liabilities recorded atamortised cost in the financial statements approximate their fairvalues.

Foreign currency riskThe Alliance has no significant exposure to foreign currency risk assubstantially all of the Alliance's transactions are denominated inHong Kong dollars.

The analysis is prepared on the same basis for 2012.

The sensitivity analysis has been prepared with the assumption thatthe change in interest rates had occurred at the end of the reportingdate and had been applied to the exposure to interest rate risk forthe relevant financial instruments in existence at that date. Thechanges in interest rate represents management's assessment of areasonably possible change in interest rates at that date over theperiod until the next reporting date.

At March 31, 2012, if interest rates had been 100 basis pointshigherllower, with all other variables held constant, the Alliance'ssurplus for the year and general fund would have been HK$13,314higherllower.

14. Financial instruments (Continued)Market risk (Continued)Interest rate risk (Continued)Sensitivity analysisAt March 31, 2013, if interest rates had been 100 basis pointshigherllower, with all other variables held constant, the Alliance'ssurplus for the year and general fund would have been HK$48,680higherllower.

1}l!ZM:;;$:~M~ jl rl~~ftH~fIit*~.~ JiJG*~U~ Z.M~Jl ~&M3$~.ZJIll1M{~JJ&~1}SjZ{i~;s •

1fM9Jfg;;$:~M~*'¬ $$5}~~~tJ,~j(;~• ' ;;$:~M~;iJ(~Z5HiJJJ.~~~.

7HfT7JftH.f=~- =~.f§ f5J ~~~19·(

J:}1I!;~~JjHHfT J)~IDi~ flj$~!t:tJe~~5.B~~&e~t A~ Bff.:(£Z .f§1m 31i iiiI ~Z .fIJ$JJJ.~ • ~1j$J!fJJft~'i!fJfJiJ1~flj*~H~r-fil1F.!l~l:l8.ItWJrB,·g-llIFiJ~~!llJZt5H•

~=~-=1F=:~=-+-8':!mfJj~JUIJ:~Iff14- SIl'iT ' iffiftT~;l't {!g::f5Et~U~~ til::f J! ' ;;$:~~Z~~&?£~.j"ll[J/~Y~M13,314j(;•

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14. ~i!1IJt. <Of)rP~.iI.~(.)!!J$.!ll~(IX)ifl@lflzH1I~=~-.=~=-~=-+-8':!mfU*~ml:j,Sjl"""f~- SIl'iT ' iffiffi*-f;l't{!g::f :iE t:§~ ~tH~=1'"~ , ;;$:~MZi1~&£~.f!i1J[J/~Y~~48,6807C •

~~~~~jl.MDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONGMlf¥i~ffl~NOTES TO THE FINANCIAL STATEMENTS.~=~-=~=~=+-8~~~FOR THE YEAR ENDED MARCH 31, 2013

- 25 -

t.vf,ftM$5~~ , ~15.I!Jt~FfO~;ltftEJ!tiltr-Jm~&B:j1)llfEisll

=.1it1l.~=$--~~~M~¥&'f5'~J!tltr-J~Ir&iil~S -~~Ja'~~~iIM~mtr-JmUlI~~M~~*$J!Um9IJtJtL~;ljg~~ BM&~5Mt1~Rl

I'~M~¥&*~Jtu.z~nI'~M~¥i~$flUm7!)JfL~~~)iMl§¥&*~J{Um9~&1~H~MJ9.i¥&*~J!Um7~Z~n

~~fijl§¥i*~J{U~10~ ,~5iM~¥i*~fHlU~ll~&~~M~iH§$J!U~12~Z~n

17. B~~-f{fj-(§i'l!j*~)5{I1'5J~n.&ftl[~n~~M~¥&~~J{U*~M~1ftUI:1f.1*tf3~TE.~$i1tli{§l.fAj*§:'~tt-J~~JtU' {~n&~" • *15~M~~ffl~ , !*~JIt~~fttl ' ~n&~::f*ti*~MZ*~~~&M~~~m~~*~.·

Details of the balances with related parties are set out in note 9 to thesefinancial statements.

No emoluments have been paid or are payable to the committeemembers fortheir services rendered during the year. (2012: Nil)

...The chargewas agreedby both parties.

...in which Wong Kine Yuen has beneficial interests.

60,000.00 60,000.00========Rental expensespaid to Right ContactsEnterprises Limited ...

2013 2012HKS HKS

16. Related party transactionsSignificant related party transactions which took place during the yearbetween the Alliance and related parties are set out below:

There has been no change in the Alliance's capital management practices ascompared to prior year and the Alliance is not subject to any externallyimposed capital requirements.

15. Capital managementThe Alliance is a company limited by guarantee and has no share capital.TheAlliance considers its capital to be the total funds. The Alliance's primaryobjectives when managing its capital is to safeguard the Alliance's ability tocontinue as a going concern, so that it can continue to provide support andprotect the interest of its members.

;&n~~j]®~~Wf1i~1n' lltM~¥i~~ttl9 •

*~l!ifr:)~1i3t 11:5}l(;F!fI*~~M~~.zmliJi£•(2012: 1m)

m1ii. ffl3tfiTRightContacts Enterprises Limited ...

16. R~iI~Stllt~1J:.z~Mf01iJm~jj'~~(tgm*"M~:I5~~~~Uja]l' :

1irm*~ll~J:~lf*-mMx*~J1I!~.M!$.lftiJJ·*~.oo.::fjltf:EfaJ "~$j{*m~mm.~ .('

15. Ji*fi~*JmM:J!-M!)j~Im:*tr-J1ii*1i1l&i}EJo*~Mjl**)15{13~~~ •·*~M.zj1f*1fJ1l!§B9~~~t1i*~Mtreliit:f;ftl!ift, ~~*~HHI~3t:tl&1*~.J!U:U~•

~±um.~MDEMOCRATIC ALLIANCE FOR THE BETTERMENT ANDPROGRESS OF HONG KONGMf!*i~IW~NOTES TO THE FINANCIAL STATEMENTS.~=$-=~=~=+-B~~~FOR THE YEAR ENDED MARCH 31, 2013

- 26-

Annual Improvements to HKFRSs 2009-2011 Cycle'Disclosures - Offsetting Financial Assets and FinancialLiabilitiestMandatory Effective Date ofHKFRS 9 and TransitionDisclosures2Consolidated Financial Statements, Joint Arrangements andDisclosure of interests inOther Entities: TransitionGuidancel

Investment Entities3

Amendments to HKFRSsAmendments to HKFRS 7Amendments to HKFRS 9 and HKFRS 7Amendments to HKFRS 10,HKFRS 11 and HKFRS 12

Amendments to HKFRS 10, HKFRS 12and HKAS 27

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

(....

1~=*-=~-~-8~L~~~Z~~M~~·2~=~-n~-~-8~~OO~L~~M~~·3~=~-~~-~-8~Z~~~L~~M~~~·4~=~-=~~~-8~L~~~Z~~M~~·

0ftm~t:i:11i17tl1tfjg~iIDl&~~§4

{ijtfi~1J1~:tLMlffi~11ftllWif0EJ.&:~·it:ft:~trgN:1iI~MtJlJUA!~iIM!1ft1Jftrgm~~33F~~~.l:Z1IJl&@IliZ~~a4Ii:Ji(tJ~~~m $Jh't-Jf!J~px*1

~~~Mlffi!~13t1tiJ~~Fl1ft~fjg.ag'gm~~iil

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17. BU1t1ii§.i'l6*~~t!9~gr&!\!U~gr~~MBi~1§-$J{U(.)~):f!MBJ¥i*~~UmlO~' t.~~.m3~):f!Ml%¥i*~~U~12~&~~*H~JW~27~:z~n

~):f!~'f1i¥i,*~~U~9!Mi!i'~Mf%¥i*~~UmlO~~~Mi1i¥i*~~tlm 1151Jl~iliMi1ifR*~~tlm 12~i!i'iliM11i**~~Um13!M~ili*~t~~Uml!i'fZ~n~ili*gt$~U~ 19~(=~--l'F~n)~ili*~t$~tlm275dE(=~--l'F~m~):f!*~t$~tl~28~(=~--~~rJ)iI;}):f!'@1gt$~tlm32~Z~n~ili*~t~~llm36§d£:z~n~ili(5!J~M~¥IH~~~ ji1*)-~~~20M

~ili(~~M~fi!*M~~l!f)-fii~m21~

~:j:~~m~~MDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONGM~¥i~mfltNOTES TO THE FINANCIAL STATEMENTS.~=*-=~=~=+-8~~~FOR THE YEAR ENDED MARCH 31,2013

18. Approval of financial statementsThe financial statements on pages 5 to 27 were approved andauthorised for issue by the Central Committee of the Alliance onOctober 28,2013.

18.MDi~~1tt~tp~~~*~=~-=lf:+.FJ=+/\8m)l.&~mflJ~~51!i~~271!iZJt:f~fi~ •(

1Effectivefor annual periodsbeginningon or after January I, 2013.2 Effectivefor annual periodsbeginningon or after January I, 2015.3 Effective for annual periodsbeginningon or after January I, 2014...Effectivefor annual periodsbeginningon or after July 1,2012.

Consolidated Financial Statements'Joint Arrangements'Disclosure of Interests in Other Entities IFair value measurement'Presentation ofItems of Other Comprehensive Income"Employee BenefitslSeparate Financial Statements1Investments inAssociates and Joint VentureslOffs~tting Financial Assets and Financial Liabilities3Recoverable Amount Disclosures for Non-FinancialAssets"Stripping Costs in the Production Phase of a SurfaceMinelLevies"

HKFRS 10HKFRS 11HKFRS 12HKFRS 13Amendments to HKAS 1

HKAS 19 (as revised in 2011)HKAS 27 (as revised in 2011)HKAS 28 (as revised in 2011)Amendments to HKAS 32Amendments to HKAS 36HK(IFRIC)-Int 20HK(IFRIC)-Int 21

(

17. Issued but not yet effective of New and Revised Hong Kong Financial Reporting Standards (Continued)HKFRS 9 Financial Instruments2

~.:tB!5ftfilimMDEMOCRATIC ALLIANCE FOR THE BETTERMENT AND PROGRESS OF HONG KONGM~¥i~IIf1~NOTES TO THE FINANCIAL STATEMENTS.~=*-=~~~=+-8~~MFOR THE YEAR ENDED MARCH 31, 2013