Examine and report the performance and financial position of Kitchen Culture (A company in Singapore). Your report should include a full analysis and preliminary conclusion to be used in an investment decision. Obtain the two most recent annual reports of Kitchen Culture that include the financial statements for the financial periods ended 30 June 2019 (FY2019), 30 June 2018 (FY2018) and 30 June 2017 (FY2017) respectively, and any other relevant materials of Kitchen Culture to start helping him to analyse and draft the report. All information, data and documents should be obtained from reliable sources like the Singapore Exchange website.

(a) Analyse and discuss the profitability; liquidity and efficiency; and solvency of Kitchen Culture. (35 marks) (b) Appraise whether Kitchen Culture is a good investment option and state your preliminary conclusion. Besides the quantitative data, you should also use qualitative information to support your preliminary conclusion. (15 marks)

Financial Statements from 2017 - 2019

1st and 2nd picture is 2017, 3rd and 4th picture is 2018, 5th and 6th picture is 2019

STATEMENTS OF FINANCIAL POSITION FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2017 Group 30 June 31 December 2017 2015 S$ S$ Company 30 June 31 December 2017 2015 S$ S$ Note 9,539 21,767 5 6 7 8 3,257.939 11.139.910 1,841,741 10,760,610 4,520,289 4,090.881 755,017 10,149,234 1,679,287 9,364,369 89,374 22,037,281 1,114,564 258,825 4,529,828 4,112,648 27,000,200 1,687,517 276,883 9 10 11 6 12 1,500,005 1,500,005 728,865 342,926 2,445,180 24,482,461 674,385 350,582 2.989,367 29.989,567 1,500,005 6,029,833 1,500,005 5,612,653 13 14 16 17 477,267 Assets Cash and cash equivalents Trade receivables Other receivables Inventories Tax recoverable Current assets Property, plant and equipment Investment property Subsidiary corporations Trade receivables Deferred tax assets Non-current assets Total assets Liabilities Trade payables Other payables Finance lease liabilities Borrowings Income tax payable Current liabilities Finance lease liabilities Borrowings Non-current liabilities Total liabilities Equity Share capital Translation reserve (Accumulated losses)/Retained earnings Capital and reserves attributable to equity holders of the Company Non-controlling interests Total equity Total liabilities and equity 297,931 375,000 7,196,421 9,838,534 48,093 3,889,551 4,429 20,977,028 110,460 3,125,000 3,235,460 24,212,488 7,646,581 2.353,435 58,058 8,414,731 4,429 18,477.234 114,563 4,250,000 4,364,563 22.841,797 852, 267 297,931 16 17 375,000 375,000 1,227,267 297,931 18 19 6,231,259 6,231,259 404,263 6,231,259 374,915 6,231,259 (6,195,765) 734,090 (1,428,693) (916,537) 4,802,566 5,314,722 439,757 (169,784) 269,973 24,482,461 7,340.264 (192,494) 7,147,770 29.989,567 4,802,566 6,029,833 5,314,722 5,612,653 KITCHEN CULTURE HOLDINGS LTD. ANNUAL REPORT 2016/2017 49 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2017 Note 20 Group For the financial For the financial period from year from 1 January 2016 to 1 January 2015 to 30 June 2017 31 December 2015 (18 months) (12 months) S$ S$ 49,551,428 26,609,899 (34,894,726) (13,945,575) 14,656,702 12,664,324 247,063 1,071,963 (10,027,887) (9,143,014) (561,197) (5,098,375) (9.900,683) (5,159,140) (5,586,002) (5,664,242) (1,331,746) (835,220) (6,917,748) (6.499,462) 452,433 (6,917,748) (6,047,029) 21 22 24 Revenue Cost of sales Gross profit Other income Selling and distribution expenses Other operating expenses General and administrative expenses Loss from operations Finance cost Loss before income tax Income tax credit Net loss Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Exchange differences transferred to profit or loss upon remeasurement of investment Other comprehensive income, net of tax Total comprehensive loss Net (loss)/profit attributable to: Equity holders of the Company Non-controlling interests 39,951 316,809 39,951 (6,877,797) (11,014) 305,795 (5,741,234) (6,929,855) 12,107 (6,917,748) (5,344,324) (702.705) (6,047,029) Total comprehensive (loss)/income attributable to: Equity holders of the Company Non-controlling interests (6,900,507) 22,710 (6,877,797) (5,058,092) (683,142) (5,741,234) Loss per share attributable to equity holders of the Company (cents per share) Basic and diluted 25 (6.9) (5.3) STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2018 Group Company Note 2017 2018 2018 $ 2017 $ S $ 5 2,692 9,539 6 7 8,752,843 4,520,289 8 321,821 5,597,816 2,025,242 7,281,897 38,223 15,264,999 615,442 246,002 755,017 10,149,234 1,679,287 9,364,369 89,374 22,037,281 1,114,564 258,825 8,755,535 4,529,828 9 10 11 1,500,005 1,500,005 6 12 618,250 337,337 1,817,031 17,082,030 728,865 342,926 2,445,180 24,482,461 1,500,005 10,255,540 1,500,005 6,029,833 13 14 3,005,535 477,267 Assets Cash and cash equivalents Trade receivables Other receivables Inventories Tax recoverable Current assets Property, plant and equipment Investment property Subsidiary corporations Trade receivables Deferred tax assets Non-current assets Total assets Liabilities Trade payables Other payables Finance lease liabilities Borrowings Income tax payable Current liabilities Finance lease liabilities Borrowings Non-current liabilities Total liabilities Equity Share capital Translation reserve Accumulated losses Capital and reserves attributable to equity holders of the Company Non-controlling interests Total equity Total liabilities and equity 16 17 375,000 375,000 5,602,123 8,291,859 42,889 3,450,655 4,429 17,391,955 141,651 1,000,000 1,141,651 18,533,606 7,196,421 9,838,534 48,093 3,889,551 4,429 20,977,028 110,460 3,125,000 3,235,460 24,212,488 3,380,535 852,267 16 17 375,000 375,000 1,227,267 3,380,535 18 8,731,259 6,231,259 19 8,731,259 189,862 (10,221,783) 6,231,259 404,263 (6,195,765) (1,856,254) (1,428,693) 439,757 6,875,005 4,802,566 (1,300,662) (150,914) (1,451,576) 17,082,030 (169,784) 269,973 6,875,005 4,802,566 24,482,461 10,255,540 6,029,833 48 KITCHEN CULTURE HOLDINGS LTD. 2017/18 ANNUAL REPORT CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018 Note 20 Group For the financial For the financial year from period from 1 July 2017 to 1 January 2016 to 30 June 2018 30 June 2017 (12 months) (18 months) $ 14,388,410 49,551,428 (8,111,158) (34,894,726) 6,277,252 14,656,702 485,264 247,063 (4,510,422) (10,027,887) (779,893) (561,197) (4,785,056) (9,900,683) (3,312,855) (5,586,002) (701,702) (1,331,746) (4,014,557) (6,917,748) 21 22 Revenue Cost of sales Gross profit Other income Selling and distribution expenses Other operating expenses General and administrative expenses Loss from operations Finance cost Loss before income tax Income tax expense Net loss Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Other comprehensive (loss)/income, net of tax Total comprehensive loss Net (loss)/income attributable to: Equity holders of the Company Non-controlling interests 24 (4,014,557) (6,917,748) 39,951 (206,992) (206,992) (4,221,549) 39,951 (6,877,797) (4,026,018) 11,461 (4,014,557) (6,929,855) 12,107 (6,917,748) Total comprehensive (loss)/income attributable to: Equity holders of the Company Non-controlling interests (4,240,419) 18,870 (4,221,549) (6,900,507) 22,710 (6,877,797) Loss per share attributable to equity holders of the Company (cents per share) Basic and diluted 25 (4.0) (6.9) 3 2018/19 ANNUAL REPORT STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2019 30 June 2019 $ 1 July 2017 Note 5 6 7 19 8 Assets Cash and cash equivalents Trade receivables Other receivables Contract assets Inventories Tax recoverable Current assets Property, plant and equipment Investment property Trade receivables Deferred tax assets Non-current assets Total assets 333,677 3,681,898 1,308,897 790,067 6,897,834 4,211 13,016,584 Group 30 June 2018 $ (Restated) 321,821 4,304,248 2,025,242 1,293,568 7,281,897 38,223 15,264,999 755,017 9,031, 131 1,679,287 1,118,103 9,364,369 89,374 22,037,281 9 10 6 12 405,490 233,225 130,599 615,442 246,002 618,250 337,337 1,817,031 17,082,030 1,114,564 258,825 728,865 342,926 2,445,180 24,482,461 769,314 13,785,898 13 14 19 15 16 2,166,068 8,717,107 4,212,571 54,407 1,208,036 20.419 16,378,608 1,825,806 8,291,859 3,776,317 42,889 3,450,655 4,429 17,391,955 2,779,022 10,088,534 4,417,399 48,093 3,639,551 4,429 20,977,028 15 16 Liabilities Trade payables Other payables Contract liabilities Finance lease liabilities Borrowings Income tax payable Current liabilities Finance lease liabilities Borrowings Non-current liabilities Total liabilities Equity Share capital Translation reserve Accumulated losses Capital and reserves attributable to equity holders of the Company Non-controlling interests Total (capital deficit)/equity Total liabilities and equity 134,715 2,600,000 2,734,715 19,113,323 141,651 1,000,000 1,141,651 18,533,606 110,460 3,125,000 3,235,460 24.212,488 17 18 8,731,259 288,961 (13,946,536) 8,731,259 40,267 (10,072,188) 6,231,259 254,668 (6,046,170) 439,757 (4,926,316) (401,109) (1,300,662) (150,914) (169,784) (5,327,425) 269,973 (1,451,576) 17,082,030 13,785,898 24.482.461 37 2018/19 ANNUAL REPORT CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019 Note Group 2019 $ 2018 19 20 Revenue Cost of sales Gross profit Other income Selling and distribution expenses Other operating expenses General and administrative expenses Loss from operations Finance cost Loss before income tax Income tax expense Net loss 11,050,616 (6,280, 105) 4,770,511 279,288 (2,855,584) (825,262) (4.722,514) (3,353,561) (432,094) (3,785,655) (337,290) (4.122,945) 14,388,410 (8,111,158) 6,277,252 485,264 (4,510,422) (779,893) (4,785,056) (3,312,855) (701,702) (4,014,557) 21 23 (4,014,557) Other comprehensive income (loss): Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Other comprehensive incomel(loss), net of tax Total comprehensive loss 247,096 247,096 (3,875,849) (206,992) (206,992) (4,221,549) Net (loss)income attributable to: Equity holders of the Company Non-controlling interests (3,874,348) (248,597) (4,122,945) (4,026,018) 11,461 (4.014,557) Total comprehensive (loss)/income attributable to: Equity holders of the Company Non-controlling interests (3,625,654) (250, 195) (3,875,849) (4,240,419) 18,870 (4,221,549) Loss per share attributable to equity holders of the Company (cents per share) Basic and diluted 24 (3.3) (4.0)