| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
– 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These
accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this
note and elsewhere in the accompanying consolidated financial statements and notes. (a) Basis of Presentation The
accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP. (b) Use of Estimates and Assumptions The
preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the years presented. Significant accounting estimates in
the period include the allowance for doubtful accounts on accounts and other receivables, impairment loss on inventories, assumptions
used in assessing right-of-use assets and impairment of long-lived assets, and deferred tax valuation allowance. (c) Risks and uncertainties The
main operations of our Company are located in Singapore. Accordingly, our Company’s business, financial condition, and results
of operations may be influenced by political, economic, and legal environments in Singapore, as well as by the general state of the economy
in Singapore. Our Company’s results may be adversely affected by changes in the political, regulatory and social conditions in
Singapore. Although our Company has not experienced losses from these situations and believes that it is in compliance with existing
laws and regulations including its organization and structure disclosed in Note 1, such experience may not be indicative of future results. Our
Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters,
extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt our Company’s
operations. (d) Foreign Currency Translation and Transaction Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The
accompanying consolidated financial statements are presented in the S$, which is the reporting currency of our Company. In addition,
our Company is operating in Singapore, maintain their books and record in their local currency, S$, which is a functional currency as
being the primary currency of the economic environment in which their operations are conducted. In translating the financial statements
of our Company’s subsidiary from their functional currency into our Company’s reporting currency of Singapore dollars, consolidated
balance sheet accounts are translated using the closing exchange rate in effect at the balance sheet date and income and expense accounts
are translated using an average exchange rate prevailing during the reporting period. Translation gains and losses are recognized in
the consolidated statements of loss and comprehensive loss as other comprehensive income or loss. The
value of foreign currencies including, the US Dollar, may fluctuate against the Singapore Dollar. Any significant variations of the aforementioned
currencies relative to the Singapore Dollar may materially affect our Company’s financial condition in terms of reporting in S$.
The following table outlines the currency exchange rates that were used in preparing the accompanying consolidated financial statements: SCHEDULE
OF EXCHANGE CURRENCY RATES
June 30, 2023 June 30, 2024
S$ to US$ Year End 1.3523 1.3552
S$ to US$ Average Rate 1.3642 1.3482 Translation
gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency
are translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred. Translations
of the balance sheets, statements of loss /comprehensive loss and statements of cash flows from S$ into US$ as of and
for the year ended June 30, 2024 are solely for the convenience of the reader and were calculated at the rate of US$ 1.3552 1 (e) Cash and Cash Equivalents Cash
and cash equivalents consist primarily of cash in readily available checking and saving accounts. Cash equivalents consist of highly
liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying
amounts approximate fair value due to the short maturities of these instruments. Our Company maintains most of its bank accounts in Singapore. (f) Accounts Receivable Accounts
receivable include trade accounts due from customers in the sale of food catering. Accounts
receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms. Our Company
seeks to maintain strict control over its outstanding receivables to minimize credit risk. Overdue balances are reviewed regularly by
senior management. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate and provides
allowance when necessary. The allowance is based on management’s best estimates of specific losses on individual customer exposures,
as well as the historical trends of collections. Account balances are charged off against the allowance after all means of collection
have been exhausted and the likelihood of collection is not probable. Our Company’s management continues to evaluate the reasonableness
of the valuation allowance policy and update it if necessary. Our
Company does not hold any collateral or other credit enhancements overs its accounts receivable balances. (g) Inventories Inventory
is stated at the lower of cost and market value, cost being determined on a first in first out cost basis. Market value of our finished
goods inventory is determined based on its estimated net realizable value, which is generally the selling price less normally predictable
costs of disposal and transportation. Our Company records adjustments to its inventory for estimated obsolescence or diminution in net
realizable value equal to the difference between the cost of the inventory and the estimated net realizable value. At the point of loss
recognition, a new cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the
restoration or increase in that newly established cost basis. (h) Property and Equipment, net Property
and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated
on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking
into account their estimated residual values: SCHEDULE
OF EXPECTED USEFUL LIVES
Expected
useful life
Renovation 5
Furniture
& Fittings 3
Office Equipment 5
Machinery
and equipment 5
Motor
vehicles 5 Expenditure
for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation
are removed from the accounts and any resulting gain or loss is recognized in the Results of operations. (i) Deferred Offering Cost The Company complies with the requirement of the ASC 340-10-S99-1 and SEC
Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering.” Deferred offering costs consist of
underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the Company’s
proposed initial public offering. Deferred offering costs will be charged to shareholders’ equity upon the completion of the proposed
initial public offering. Should the proposed initial public offering prove to be unsuccessful, these deferred costs, as well as additional
expenses to be incurred, will be charged to operations. As of June 30, 2024, the Company capitalized $1.4 million of deferred offering
costs. Such costs will be deferred until the closing of the proposed initial public offering, at which time the deferred costs will be
offset against the offering proceeds. (j) Impairment of Long-Lived Assets In
accordance with the provisions of ASC Topic 360, Impairment or Disposal of Long-Lived Assets (k) Provisions Provisions
are recognized when our Company has a present obligation, legal or constructive, as a result of a previous event, if it is probable that
our Company will be required to settle the obligation and a reliable estimate can be made of the obligation. The amount recognized is
the best estimate of the expenditure required to settle the present obligation at the end of the reporting period, taking into account
the risks and uncertainties surrounding the obligations. Provisions are reviewed at the end of each reporting period and adjusted to
reflect the current best estimate of the expected future cash flows. (l) Trade and other payables Trade
and other payables are initially measured at amortized cost, using effective interest method. (m) Revenue Recognition Our
Company receives certain portion of its non-interest income from contracts with customers, which are accounted for in accordance with
ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ASC
606-10 provided the following overview of how revenue is recognized from our Company’s contracts with customers: Our Company recognizes
revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which our Company
expects to be entitled in exchange for those goods or services.
Step
1: Identify
the contract(s) with a customer.
Step
2: Identify
the performance obligations in the contract.
Step
3: Determine
the transaction price – The transaction price is the amount of consideration in a contract to which an entity expects to be
entitled in exchange for transferring promised goods or services to a customer.
Step
4: Allocate
the transaction price to the performance obligations in the contract – Any entity typically allocates the transaction price
to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in
the contract.
Step
5: Recognize
revenue when (or as) the entity satisfies a performance obligation – An entity recognizes revenue when (or as) it satisfies
a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of
that good or service). The amount of revenue recognized is the amount allocated to the satisfied performance obligation. A performance
obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for
promises to transfer service to a customer). Majority
of our Company’s income is derived from contracts with customers in the sale of products, and as such, the revenue recognized depicts
the transfer of promised goods or services to its customers in an amount that reflects the consideration to which the entity expects
to be entitled in exchange for those goods or services. Our Company considers the terms of the contract and all relevant facts and circumstances
when applying this guidance. Our Company’s revenue recognition policies are in compliance with ASC 606 and currently generates
its revenue from the following main sources as follows: Revenue
from food catering services provided Revenue
from food catering services includes supply of budget prepared meals, the operation of food stall and buffet catering services which
consist of a single performance obligation that our Company satisfies at a point in time and are recognized upon the delivery and acceptance
of the meals sold to the customers. Our Company recognizes food catering services revenue when the following events have occurred: (a)
our Company has transferred physical ordered possession of the food (b) our Company has a present right to payment (c) the customer has
legal rights to the food ordered upon delivery, and (d) the customer bears significant risks and rewards of ownership of the products. Our
Company records its revenues on food catering services provided, net of good & service taxes (“GST”) upon delivery of
food ordered and the risk of loss of food ordered are fully transferred to the customers. The Company is subject to GST which is levied
on the majority of the products at the rate of 8 For
the years ended June 30, 2023 and 2024, the total amount of GST collected from customers and remitted to government authorities was S$ 389,421 400,794 As
of June 30, 2023 and 2024, the GST payable to government authorities was S$ 10,614 12,368 In
certain circumstances, the Company receives advances from customers as prepayment on meals and services ordered and these are included
in “Accounts payable, accruals and other current liabilities” as “Deposits received”. Revenue is recognized at
a point in time where the customer simultaneously receives and consumes the benefits provided by the Company. The
income from ancillary delivery services is recognized upon the delivery and acceptance of the meals sold to the customers. (n) Cost of revenue Cost
of revenue mainly consists of raw material costs, labor costs, packaging material costs and delivery & freight cost. (o) General and administrative expenses General
and administrative expenses mainly consist of staff cost, depreciation, office supplies and upkeep expenses, travelling and entertainment,
legal and professional fees, property and related expenses, other miscellaneous administrative expenses. (p) Operating leases Upon
and hereafter the adoption of ASC 842 on January 1, 2019: Our
Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)
assets, operating lease liability, and operating lease liability, non-current in our Company’s consolidated balance sheets. ROU
assets represent our Company’s right to use an underlying asset for the lease term and lease liabilities represent our Company’s
obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date
based on the present value of lease payments over the lease term. When determining the lease term, our Company includes options to extend
or terminate the lease when it is reasonably certain that it will exercise that option, if any. As our Company’s leases do not
provide an implicit rate, our Company used an incremental borrowing rate based on the information available at commencement date in determining
the present value of lease payments. Our Company has elected to adopt the following lease policies in conjunction with the adoption of
ASU 2016-02: (i) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain
to exercise, our Company elected not to apply ASC 842 recognition requirements; and (ii) our Company elected to apply the package of
practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or
contains a lease, (b) the lease classification applied to existing leases, and (c) initial direct costs. (q) Government Grants A
government grant or subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the
conditions attached to the grant; and (b) the grant will be received. When our Company receives government grant or subsidies but
the conditions attached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other
payables and accrued expenses, and other long-term liability. The classification of short-term or long-term liabilities is dependent
on the management’s expectation of when the conditions attached to the grant can be fulfilled. For the years ended June 30,
2022, 2023, and 2024, our Company received government subsidies of S$ 169,675 22,270 29,305 (r) Comprehensive Loss ASC
Topic 220, Comprehensive Income (s) Income Taxes Income
taxes are determined in accordance with the provisions of ASC Topic 740, Income Taxes ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the
financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax
positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood For
the years ended June 30, 2024 and 2023, our Company did no no Our
Company is subject to tax in local and foreign jurisdiction. As a result of its business activities, our Company files tax returns that
are subject to examination by the relevant tax authorities. (t) Related Parties Our
Company follows the ASC 850-10, Related Party Pursuant
to section 850-10-20 the related parties include: a) affiliates of our Company; b) entities for which investments in their equity securities
would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15,
to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing
trusts that are managed by or under the trusteeship of management; d) principal owners of our Company; e) management of our Company;
f) other parties with which our Company may deal if one party controls or can significantly influence the management or operating policies
of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and
g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership
interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting
parties might be prevented from fully pursuing its own separate interests. The
consolidated financial statements shall include disclosure of material related party transactions, other than compensation arrangements,
expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated
in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include:
a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal
amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary
to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of
the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that
used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not
otherwise apparent, the terms and manner of settlement. (u) Commitments and Contingencies Our
Company follows the ASC 450-20, Commitments to report accounting for contingencies If
the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability
can be estimated, then the estimated liability would be accrued in our Company’s financial statements. If the assessment indicates
that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then
the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss
contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.
Management does not believe, based upon information available at this time that these matters will have a material adverse effect on
our Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not
materially and adversely affect our Company’s business, financial position, and results of operations or cash flows. (v) Concentration of Credit Risk Financial
instruments that potentially subject our Company to credit risk consist of cash equivalents, restricted cash, accounts receivable. Cash
equivalents are maintained with high credit quality institutions, the composition and maturities of which are regularly monitored by
management. For
accounts receivable, our Company determines, on a continuing basis, the allowance for doubtful accounts are based on the estimated realizable
value. Our Company identifies credit risk on a customer-by-customer basis. The information is monitored regularly by management. Concentration
of credit risk arises when a group of customers having similar characteristics such that their ability to meet their obligations is expected
to be affected similarly by changes in economic conditions. (w) Exchange Rate Risk The
reporting currency of our Company is S$, to date the majority of the revenues and costs are denominated in S$ and a significant portion
of the assets and liabilities are denominated in S$. As a result, our Company is exposed to foreign exchange risk as its revenues and
results of operations may be affected by fluctuations in the exchange rate between US$ and S$. If S$ depreciates against US$, the value
of S$ revenues and assets as expressed in US$ financial statements will decline. Our Company does not hold any derivative or other financial
instruments that expose to substantial market risk. (x) Liquidity Risk Liquidity
risk is the risk that our Company will not be able to meet its financial obligations as they become due. Our Company’s policy is
to ensure that it has sufficient cash to meet its liabilities when they become due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to our Company’s reputation. A key risk in managing liquidity is the degree of
uncertainty in the cash flow projections. If future cash flows are fairly uncertain, the liquidity risk increases. (y) Fair Value Measurement Our
Company follows the guidance of the ASC Topic 820-10, Fair Value Measurement and Disclosure
● Level
1
● Level
2 :
● Level
3 The
carrying value of our Company’s financial instruments: cash and cash equivalents, restricted cash, accounts receivable, loans receivable,
amount due to a related party, accounts payable, escrow liabilities, income tax payable, amount due to a related party, other payables
and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments. Management
believes, based on the current market prices or interest rates for similar debt instruments, the fair value of note payable approximate
the carrying amount. Our Company accounts for loans receivable at cost, subject to impairment testing. Our Company obtains a third-party
valuation based upon loan level data including note rate, type and term of the underlying loans. Our
Company’s non-marketable equity securities are investments in privately held companies, which are without readily determinable
market values and are classified as Level 3, due to the absence of quoted market prices, the inherent lack of liquidity and the fact
that inputs used to measure fair value are unobservable and require management’s judgment. Fair
value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates
are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.
Changes in assumptions could significantly affect the estimates. (z) Recently Issued Accounting Pronouncements Our Company does not believe other recently issued
but not yet effective accounting standards, if currently adopted, would have a material effect on our Company’s consolidated balance
sheets, statements of income and comprehensive income and statements of cash flows. |
