Asia Wealth Group Holdings Ltd - Interim Results to 31 August 2018
Announcement provided by
Asia Wealth Group Holdings Ltd · AWLP09/10/2018 08:00
FOR IMMEDIATE RELEASE
("
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED
The Board is pleased to report the unaudited interim results of
Chairman’s Statement
Financial Highlights
The highlights for the six months ended
-- Consolidated revenue of US$1,240,960 (2017: US$1,146,815 )
-- Gross profit for Meyer Group of US$541,350 (representing a gross margin
of 44%) (2017: US$433,858 and 38%)
-- Cash at bank and on hand of approximately US$1.4m at 31 August 2018
(2017:$1.2m ).
The Group reports a profit after tax of approximately
Cash balance has increased by
The Board is continuing to forge new revenue generating relationships, as well as expanding revenue creating opportunities, in both new and existing avenues. We continue to seek alliances and partnerships with firms in the same and new sectors.
The accounts have not been audited or reviewed by the Company’s auditors.
The Directors of the Company accept responsibility for the content of this announcement.
Executive Chairman
Contacts:
EXTRACTS ARE SET OUT BELOW:
Consolidated Statement of Financial Position
At
All amounts stated in
Note 31-Aug-18 31-Aug-17
Non-current assets
Fixed assets 3 18,591 26,813
Investment in property 4 373,981 389,135
392,572 415,948
Current assets
Cash and cash equivalents 1,387,633 1,168,212
Trade receivables 201,902 241,404
Loans and other receivables 94,970 115,348
Due from related party - 18,619
Prepayments and other assets 97,047 105,550
Available-for-sale investment 318,162 359,926
2,099,714 2,009,059
Total assets $ 2,492,286 $ 2,425,007
Equity
Share capital 5 913,496 913,496
Share-based payment reserve 6 - -
Consolidation reserve 405,997 405,997
Translation reserve 25,839 1,512
Accumulated deficit (70,068) (127,339)
Total equity 1,275,264 1,193,666
Non-current liabilities
Liabilities under finance lease agreement 7 4,485 13,267
Current liabilities
Trade payables 1,136,351 1,115,220
Due to related parties 1,177 29,082
Liabilities under finance lease agreement 7 8,970 8,845
Deferred revenue 2,609 2,572
Other payables and accrued expenses 63,430 62,355
1,212,537 1,218,074
Total liabilities 1,217,022 1,231,341
Total equity and liabilities $ 2,492,286 $ 2,425,007
Consolidated Statement of Comprehensive Income
For the half year ended
All amounts stated in
Note Mar – Aug 2018 Mar – Aug 2017
Revenue 1,240,960 1,146,815
Expenses
Commission 685,743 695,430
Professional fees 141,863 138,923
Wages and salaries 20,423 13,392
Directors’ fees 8 146,607 101,478
Impairment expense 5,372 -
Travel and entertainment 33,625 27,591
Office expenses 21,117 22,186
Rent 8,518 8,252
Marketing expenses 4,029 5,637
Communication 2,352 2,311
Depreciation 3,4 16,575 16,196
Bank charges 5,778 4,975
Sundry expenses 10,594 16,015
1,102,596 1,052,386
Net profit/(loss) from operations 138,364 94,429
Other income/(expense)
Foreign exchange gain/(loss) (72,477) 63,924
Interest Income 199 4,812
Investment income - -
(72,278) 68,736
Net profit/(loss) before finance cost 66,086 163,165
Finance cost
Interest expense (424) (721)
Net profit/(loss) before taxation 65,662 162,444
Taxation 9 - -
Total comprehensive income (loss) $ 65,662 $ 162,444
Consolidated Statement of Changes in Equity
For the half year ended
All amounts stated in
31-Aug-18 Share Capital Share-based Consolidation Translation Retained Non-Controlling Equity Payment Reserve Reserve Earnings interest Reserve Number US$ Balances at 11,433,433 913,496 - 405,997 28,725 (135,730) - 1,212,488 beginning of 1 Mar 2018 Translation - - - - (2,886) - - (2,886) differences Total - - - - - 65,662 - 65,662 comprehensive income Balances at 11,433,433 913,496 - 405,997 25,839 (70,068) - 1,275,264 end of 31 Aug 2018 31-Aug-17 Share Capital Share-based Consolidation Translation Retained Non-Controlling Equity Payment Reserve Reserve Earnings interest Reserve Number US$ Balances at 11,433,433 913,496 10,708 405,997 (9,317) (372,081) (17,552) 931,251 beginning of 1 Mar 2017 Share-based - - (10,708) - - 10,708 - - payment expired Disposal of - - - - - 71,590 17,552 89,142 subsidiary Translation - - - - 10,829 - - 10,829 differences Total - - - - - 162,444 - 162,444 comprehensive income Balances at 11,433,433 913,496 - 405,997 1,512 (127,339) - 1,193,666 end of 31 Aug 2017
Consolidated Statement of Cash Flows
For the half year ended
All amounts stated in
Mar – Aug 2018 Mar – Aug 2017
Operating activities
Total comprehensive income/(Loss) 65,662 162,444
Add back Depreciation 16,575 16,196
Receivables 26,675 (26,363)
Loan and Other Receivable 327 17,698
Prepayments and other assets 5,475 (9,198)
Payables (58,241) 187,266
Liabilities Under Finance Lease (5,230) (3,150)
Agreements
Deferred Revenue (108) 614
Other Payables and Accrued Expenses (19,977) (35,042)
Cash flows from operating activities 31,158 310,465
Investing activities
Acquisition of fixed assets (10,036) (11,312)
Investments 26,362 (50,653)
Change in equity (2,886) 99,971
Cash flows from investing activities 13,440 38,006
Financing activities
Net advances from related party (3,620) (49,406)
Cash flows from financing activities (3,620) (49,406)
Net increase/(decrease) in cash and cash 40,978 299,065
equivalents
Cash and cash equivalents at beginning 1,346,655 869,147
of year
Cash and cash equivalents at end of $ 1,387,633 $ 1,168,212
period
Cash and cash equivalents comprise cash at bank.
1) GENERAL INFORMATION
The principal activity of the Parent Company and its subsidiaries (the "Group") is to provide wealth management advisory services to Asian-based high net worth individuals and corporations.
Incorporation Country of Functional Ownership
Date Incorporation Currency Interest
2018 2017
Meyer Asset Management 2000 British US Dollars 100 .00% 100.00%
Ltd. Virgin
Islands
("Meyer BVI")
Meyer International 2010 Thailand Thailand Baht 49 .00% 49.00%
Limited
("Meyer Thailand")
Prime RE Limited 2016 Thailand Thailand Baht 49 .00% 49.00%
("Prime RE")
BTS Property Holdings 2014 Thailand Thailand Baht -% -%
Limited
("BTS
Property")
On
On
On
Effective
2) SIGNIFICANTACCOUNTING POLICIES
The significant accounting policies adopted in the preparation of the Group's consolidated financial statements are set out below.
2) SIGNIFICANTACCOUNTING POLICIES (Cont'd)
a) Statement of compliance
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards ("IFRSs") and interpretations issued by the IFRS Interpretations Committee ("IFRS IC") applicable to companies reporting under IFRSs. The financial statements comply with IFRSs as issued by the
b) Basis of preparation
The consolidated financial statements have been prepared on the basis of historical costs and do not take into account increases in the market value of assets.
The accounting policies have been applied consistently by the Group and are consistent with those used in the previous year.
There are no new, revised or amended IFRSs or IFRS IC interpretations that are effective for the first time for the financial period beginning on
c) Use of estimates
The preparation of consolidated financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
Critical accounting estimates and judgments
Depreciation
Management regularly reviews the estimated useful lives and residual values of the Group's fixed assets and will revise rates of depreciation where useful lives and residual values previously estimated have changed.
Fair value of investment property
Fair values, where possible, are based on open market values, being the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm's length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. However, due to a lack of liquidity in the market, and the fact that no similar transactions have recently taken place, it was not possible to calculate the current market price of the investment property in this way.
2) SIGNIFICANTACCOUNTING POLICIES (Cont'd)
c) Use of estimates (Cont'd)
Leases
In determining whether a lease is to be classified as an operating lease or a finance lease, management is required to use their judgment as to whether the significant risks and rewards of ownership of the leased asset have been transferred or not.
d) Investment in subsidiaries
Basis of consolidation
The consolidated financial statements include the financial statements of the Parent Company and its subsidiaries for the six month ended
Subsidiaries are enterprises controlled by the
Non-controlling interests pertain to the equity in a subsidiary not attributable, directly or indirectly to the
Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries not wholly-owned and are presented separately in the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of financial position, separately from the Parent Company’s equity.
Losses within a subsidiary are attributed to the non-controlling interests even if that results in a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity as an “equity reserve” and attributed to the owners of the Group.
Where necessary, adjustments are made to the financial statements of the subsidiary to bring the accounting policies used in line with those used by the Parent Company.
All intra-group transactions, balances, income and expenses are eliminated in consolidation. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
d) Investment in subsidiaries (Cont’d)
Acquisitions
The acquisition method of accounting is used to account for business combinations by the Group.
The consideration transferred for the acquisition of a subsidiary or business comprises the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred also includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary.
Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.
On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.
The excess of (i) the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the (ii) fair value of the net identifiable assets acquired is recorded as goodwill.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in profit or loss.
e) Fixed assets
Items of fixed assets are stated at cost less accumulated depreciation. Depreciation is charged to the consolidated statement of comprehensive income on a straight-line basis over the estimated useful lives of fixed assets.
Subsequent expenditure incurred to replace a component of a fixed asset is capitalised only when it increases the future economic benefits embodied in the item of a fixed asset. All other expenditure is recognised in the consolidated statement of comprehensive income when it is incurred.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
e) Fixed assets (Cont’d)
The annual rates of depreciation in use are as follows:
Leasehold improvements 20%
Office equipment 20-33%
Vehicles 20%
f) Investment property
Investment property is property held either to earn rental income or capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property is initially measured at cost and subsequently at cost less any accumulated depreciation and impairment losses (refer to accounting policy (p)), if any, with any change therein recognised in the consolidated statement of comprehensive income.
Investment property comprises condominium units.
Cost includes expenditure that is directly attributable to the acquisition of investment property. The cost of self-constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs.
Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in the consolidated statement of comprehensive income. When an investment property that was previously classified as property, plant and equipment is sold, any related amount included in the revaluation reserve is transferred to retained earnings.
When the use of property changes such that it is reclassified as fixed assets, its fair value at the date of reclassification becomes its cost for subsequent accounting.
Depreciable investment property is stated at cost less accumulated depreciation. Depreciation is charged to the consolidated statement of comprehensive income on a straight-line basis over the estimated useful lives of the investment property.
The annual rate of depreciation in use for condominium units is 5%.
Subsequent expenditure incurred is capitalised only when it increases the future economic benefits embodied in that property. All other expenditure is recognised in the consolidated statement of comprehensive income when it is incurred.
g) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash includes current deposits with banks and other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in value, and bank overdrafts.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
h) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets that are classified as loans and receivables comprise trade receivables, loans and other receivables and due from related party.
Originated loans and receivables are recognised on the day that they are transferred to the Group.
Financial assets classified as loans and receivables are carried at amortised cost using the effective interest method, less impairment losses, if any.
Financial assets are derecognised when the rights to receive cash flows have expired or the Group has transferred substantially all risks and rewards of ownership.
Trade receivables are recognised initially at fair value and are subsequently recorded at fair value reduced by any appropriate allowances for estimated irrecoverable amounts. A provision for impairment of trade receivables is established when there is evidence that the Group will not be able to collect amounts due.
The Group primarily uses the specific identification method to determine if a receivable is impaired. The carrying amount of the receivable is reduced through the use of an allowance account, and the amount of the loss is recognised in the consolidated statement of comprehensive income.
The Group determines its allowance by considering a number of factors, including the length of time a trade receivable is past due, the Group’s previous loss history, the customer’s current ability to pay its obligation to the Group, and the condition of the general economy and the industry as a whole. The Group writes off trade receivables when they become uncollectible. Actual bad debts, when determined, reduce the allowance, the adequacy of which management then reassesses. The Group writes off accounts after a determination by management that the amounts at issue are no longer likely to be collected, following the exercise of reasonable collection efforts and upon management’s determination that the costs of pursuing the collection outweigh the likelihood of recovery.
i) Available-for-sale (“AFS”) investments
AFS investments are carried at fair value. Gains and losses arising from changes in the fair value are recognised as other comprehensive income. When securities classified as AFS are sold or impaired, the accumulated fair value adjustments recognised in other comprehensive income are included in the consolidated statement of comprehensive income as gains and losses from investment securities.
AFS are presented as non-current assets unless they mature, or the Group intends to dispose of them within twelve (12) months from the end of the reporting period.
j) Associates
Associates are those enterprises in which the Group has significant influence, but not control, over the financial and operating policies. The consolidated financial statements include the Group’s share of the total recognised gains and losses of associates on an equity accounted basis, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses exceeds the carrying amount of the associate, the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred obligations in respect of the associate.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
k) Share capital and accumulated deficit
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity.
Accumulated deficit represent the cumulative balance of periodic net income/loss, dividend distributions and prior period adjustments.
l) Share-based payment
The Group entered into a series of equity-settled, share-based payment transactions, under which the Group received services from a third party as consideration for equity instruments (shares, options or warrants) of the Group.
For non-vesting share-based payments, the fair value of the service received in exchange for the shares is recognised as an expense immediately with a corresponding credit to share capital.
For share-based payments with vesting periods, the service received is recognised as an expense by reference to the fair value of the share options granted or warrants issued. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied with a corresponding credit to the share capital reserve.
m) Foreign currency
Functional and presentation currency
The subsidiaries’ functional currencies are disclosed in note 1 to the financial statements. The consolidated financial statements are presented in
Transactions and balances
Transactions in foreign currencies are converted at the foreign currency exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the foreign currency closing exchange rate ruling at the reporting date. Foreign currency exchange differences arising on conversion or translation and realised gains and losses on disposals or settlements of monetary assets and liabilities are recognised in the consolidated statements of income and comprehensive income. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated at the foreign currency exchange rates ruling at the dates that the values were determined. Foreign currency exchange differences relating to investments are included in net realised/unrealised gain/(loss) on investments. All other foreign currency exchange differences relating to monetary items, including cash and cash equivalents, are presented in the consolidated statements of income and comprehensive income.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into
2) SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
m) Foreign currency (Cont’d)
None of the foreign operations has the currency of a hyperinflationary economy.
Translation reserve
Assets and liabilities of the Group’s non-
n) Leases
Leases of equipment where the Group assumes substantially all the benefits and risks of ownership are classified as finance leases. Finance leases are capitalised at the estimated present value of the underlying lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are recorded as long-term liabilities. The finance charge is taken to the consolidated statement of comprehensive income over the lease period. Assets acquired under finance lease agreements are depreciated over their useful lives.
Leases of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the consolidated statement of comprehensive income on a straight line basis over the term of the lease. When an operating lease is terminated before the lease term has expired, any penalty is recognised as an expense in the period in which the termination takes place.
o) Financial liabilities
Financial liabilities are non-derivative contractual obligations to deliver cash or another financial asset to another entity and comprise trade payables, due to related parties, liabilities under finance lease agreements and other payables and accrued expenses.
These financial liabilities are recognised initially at fair value less any directly attributable transaction costs and subsequently carried at amortised cost using the effective interest method.
Financial liabilities are derecognised when the obligation specified in a contract is discharged, cancelled or expired.
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. The recoverable amount is estimated as the greater of an asset’s net selling price or value in use. An impairment loss is recognised in the consolidated statement of comprehensive income whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.
If in a subsequent period, the amount of an impairment loss decreases and the decrease can be linked objectively to an event occurring after the write-down, the write-down is reversed through the consolidated statement of comprehensive income.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
p) Impairment
An impairment is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
q) Revenue and expense recognition
In relation to the rendering of professional services, the Group recognises fee income as time is expended and costs are incurred, provided the amount of consideration to be received is reasonably determinable and there is reasonable expectation of its ultimate collection.
Rental income arising from operating leases on investment property is recognised in the consolidated statement of comprehensive income on a straight line basis over the term of the lease.
Interest income is recognised in the consolidated statement of comprehensive income as it accrues.
All expenses are recognised in the consolidated statement of comprehensive income on the accrual basis.
r) Offsetting
Financial assets and liabilities are offset and the net amount is reported in the consolidated statement of financial position whenever the Group has a legally enforceable right to set off the recognised amounts and the transactions are intended to be settled on a net basis.
s) Segment reporting
The Group’s operating businesses are organised and managed separately according to geographical area, with each segment representing a strategic business unit that serves a different market. Financial information on business segments is presented in note 14 of the consolidated financial statements.
t) Taxation
Taxation on net profit before taxation for the year comprises both current and deferred tax.
Current tax is the expected income tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date and any adjustment to tax payable in respect of previous years in the countries where the Parent Company and its subsidiaries operate and generate taxable income.
The Group accounts for income taxes in accordance with IAS 12, “Income Taxes,” which requires that a deferred tax liability be recognised for all taxable temporary differences and a deferred tax asset be recognised for an enterprise’s deductible temporary differences, operating losses, and tax credit carryforwards. A deferred tax asset or liability is measured using the marginal tax rate that is expected to apply to the last dollars of taxable income in future years. The effects of enacted changes in tax laws or rates are recognised in the period that includes the enactment date.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
u) Related parties
Related parties are individuals and companies where the individual or company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions.
v) Amended and newly issued accounting standards
A number of new standards, amendments to existing standards and interpretations are effective for annual periods beginning after
3) FIXED ASSETS
Leasehold Office equipment Vehicles Total
improvement
Cost:
At 28 February 2018 20,281 36,832 55,392 112,505
Translation reserve (1,543) (6,251) (5,844) (13,638)
Disposal - - - -
Additions - - - -
At 31 August 2018 18,738 30,581 49,548 98,867
Depreciation:
At 28 February 2018 20,281 31,617 35,477 87,375
Translation reserve (1,543) (6,663) (5,051) (13,257)
Disposal - - - -
Charge for 1 March – - 1,163 4,995 6,158
31 August 2018
At 31 August 2018 18,738 26,117 35,421 80,276
Net book value:
At 31 August 2018 $- $4,464 $14,127 $18,591
At 28 February 2018 $- $5,215 $19,915 $25,130
As at
4) INVESTMENT PROPERTY
Condominium units
Cost:
At 28 February 2018 430,398
Translation reserve (17,143)
At 31 August 2018 413,255
Depreciation:
At 28 February 2018 30,055
Translation reserve (1,197)
Charge for 1 March – 31 August 2018 10,416
At 31 August 2018 39,274
Net book value:
At 31 August 2018 $ 373,981
At 28 February 2018 $ 400,343
Investment property comprises condominium units at The Prime 11 Condominium in
5) SHARE CAPITAL
Authorised
Issued and fully paid:31-Aug-18 31-Aug-17 11,433,433 (2016: 11,433,433) shares of no par value per$913,496 $913,496 share.
Each share in the Parent Company confers upon the shareholder:
(a) the right to one vote on any resolution of shareholders;
(b) the right to an equal share in any dividend paid by the Parent Company; and
(c) the right to an equal share in the distribution of the surplus assets of the Parent Company on its liquidation
6) SHARE-BASED PAYMENTS
Options
All share options were expired
Grant Date Expired date Exercise Price 31-Aug-18 31-Aug-17 1/Oct/2012 27/May/2017 £0.60 - - 1/Jul/2013 1/Jul/2016 £0.60 - - 31/Jul/2013 30/Jul/2017 £0.60 - -
7) LEASES
31-Aug-18 31-Aug-17
Liabilities under finance lease agreement:
Less than 1 year 8,970 8,845
1 to 5 years 4,485 13,267
Total 13,455 22,112
Less: Deferred interest (1,086) (2,070)
12,369 20,042
Less: Current portion net of short term deferred interest (8,187) (7,847)
Net $4,182 $12,195
8) RELATED PARTY TRANSACTIONS
During the half year, the Group paid director’s fees amounting to
9) TAXATION
There is no mainstream taxation in the
Meyer Thailand, and Prime RE are subject to
The current tax expense included in the consolidated statement of comprehensive income was $nil (20 17: $nil).
The Group had no deferred tax assets or liabilities as at the reporting date.
10) SEGMENTAL INFORMATION
The Group has three reportable segments based on geographical areas where the Group operates and these were as follows:
The reportable segmental revenue, other profit and loss disclosures and assets were as follows:
10) SEGMENTAL INFORMATION (Cont’d)
Revenue
31-Aug-18 31-Aug-17
Total Inter-segment Revenue Total Inter-segment Revenue
segment revenue from segment revenue from
revenue external revenue external
customers customers
BVI 1,225,309 - 1,225,309 1,127,464 - 1,127,464
Thailand 125,988 (110,337) 15,651 125,187 (105,836) 19,351
Total $1,351,297 $(110,337) $1,240,960 $1,252,651 $(105,836) $1,146,815
The revenue between segments is carried out at arm’s length.
Other profit and loss disclosures
31-Aug-18 31-Aug-17
Commission Depreciation Income tax Commission Depreciation Income tax
expense expense
BVI 683,959 428 - 693,671 383 -
Thailand 1,784 16,147 - 1,759 15,813 -
Total $685,743 $16,575 $- $695,430 $16,196 $-
Assets
31-Aug-18 31-Aug-17
Total Assets Total Assets
BVI 1,981,851 1,820,514
Thailand 510,435 604,493
Total $2,492,286 $2,425,007
Intersegment assets amounting to
Liabilities
31-Aug-18 31-Aug-17
Total Liabilities Total Liabilities
BVI 1,152,427 1,135,247
Thailand 64,595 96,094
Total $1,217,022 $1,231,341
Intersegment Liabilities amounting to
11) FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS
Financial assets of the Group include cash and cash equivalents, trade receivables, loans and other receivables, due from related party and available-for-sale investment. Financial liabilities include trade payables, due to related parties and other payables and accrued expenses.
a) Market risk
Market risk represents the potential loss that can be caused by a change in the market value of the Group's financial instruments. The Group's exposure to market risk is determined by a number of factors which include interest rate risk.
Interest rate risk
The financial instruments exposed to interest rate risk comprise cash and cash equivalents.
The Group is exposed to interest rate cash flow risk on cash and cash equivalents, which earn interest at floating interest rates that are reset as market rates change. The Group is exposed to interest rate risk to the extent that these interest rates may fluctuate.
A sensitivity analysis was performed with respect to the interest-bearing financial instruments with exposure to fluctuations in interest rates and management noted that there would be no material effect to shareholders' equity or net income for the year.
b) Credit risk
Credit risk represents the accounting loss that would be recognised at the reporting date if financial instrument counterparties failed to perform as contracted.
As at
31-Aug-18 31-Aug-17
Cash and cash equivalents 1,387,633 1,168,212
Trade receivables 201,902 241,404
Loans and other receivables 94,970 115,348
Due from related party - 18,619
Available-for-sale investment 318,162 359,926
$2,002,667 $1,903,509
The ageing of the Group’s trade receivables as at
31-Aug-18 31-Aug-17
Gross Impairment Gross Impairment
1 – 90 days 145,951 - 166,195 -
91 – 180 days 55,951 - 75,209 -
$201,902 - $241,404 -
The Group invests all its available cash and cash equivalents in several banks. The Group is exposed to credit risk to the extent that these banks may be unable to repay amounts owed. To manage the level of credit risk, the Group attempts to deal with banks of good credit standing, whenever possible.
11) FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS (Cont’d)
The Group has two significant customers which expose it to credit risk, though the exposure to credit risk is reduced as these customers have a good working relationship with the Group. To reduce exposure to credit risk, the Group may perform ongoing credit evaluations on the financial condition of its customers, but generally does not require collateral.
The Group invests all its available cash and cash equivalents in several banks. The Group is exposed to credit risk to the extent that these banks may be unable to repay amounts owed. To manage the level of credit risk, the Group attempts to deal with banks of good credit standing, whenever possible.
The Group has two significant customers which expose it to credit risk, though the exposure to credit risk is reduced as these customers have a good working relationship with the Group. To reduce exposure to credit risk, the Group may perform ongoing credit evaluations on the financial condition of its customers, but generally does not require collateral.
The Group is exposed to credit risk with respect to its investments. Bankruptcy or insolvency of the investee companies may cause the Group's rights to the security to be delayed or limited.
The extent of the Group's exposure to credit risk in respect of these financial assets approximates their carrying values.
c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation. Typically, the Group ensures that it has sufficient cash on demand to meet expected operational needs as they arise. The Group invests all its available cash and cash equivalents in several banks. The Group is exposed to credit risk to the extent that these banks may be unable to repay amounts owed. To manage the level of credit risk, the Group attempts to deal with banks of good credit standing, whenever possible.
The Group has two significant customers which expose it to credit risk, though the exposure to credit risk is reduced as these customers have a good working relationship with the Group. To reduce exposure to credit risk, the Group may perform ongoing credit evaluations on the financial condition of its customers, but generally does not require collateral.
The Group is exposed to credit risk with respect to its investments. Bankruptcy or insolvency of the investee companies may cause the Group's rights to the security to be delayed or limited.
The extent of the Group's exposure to credit risk in respect of these financial assets approximates their carrying values.
c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation. Typically, the Group ensures that it has sufficient cash on demand to meet expected operational needs as they arise.The Group is exposed to credit risk with respect to its investments. Bankruptcy or insolvency of the investee companies may cause the Group's rights to the security to be delayed or limited.
The extent of the Group's exposure to credit risk in respect of these financial assets approximates their carrying values.
c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation. Typically, the Group ensures that it has sufficient cash on demand to meet expected operational needs as they arise.
12) FAIR VALUE INFORMATION
The Group's investment at the reporting date comprises an investment in the unlisted ordinary shares of
For certain of the Group's financial instruments, not carried at fair value, including cash and cash equivalents, trade receivables, loans and other receivables, due to/from related parties, trade payables and other payables and accrued expenses, the carrying amounts approximate fair value due to the immediate or short-term nature of these financial instruments.
The fair value hierarchy has the following levels:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for the asset or liability.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level of input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.
The determination of what constitutes 'observable' requires significant judgment by the Group. The Group considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.
Investments whose values are based on quoted market prices in active markets are therefore classified within Level 1.
12) FAIR VALUE INFORMATION (Cont’d)
Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. As Level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non transferability, which are generally based on available market information.
Investments classified within Level 3 have significant unobservable inputs, as they trade infrequently. The Group's Level 3 investment comprises an investment in unlisted shares valued at cost, since there was no information to estimate their fair values. The Group believes that the value stated as at
The following table analyses within the fair value hierarchy the Group's financial assets (by class) measured at fair value at the reporting date:
31-Aug-18 31-Aug-17
Level 3
Available-for-sale investment 318,162 359,926
$318,162 $359,926
The Group did not hold any investments under the Level 1 and Level 2 hierarchies as at
There were no significant investments transferred between Levels 1, 2 and 3.
13) CAPITAL RISK MANAGEMENT
The Group's objectives when managing capital are:
• to safeguard the Group's ability to continue as a going concern; and
• to provide adequate returns to its shareholders.
In order to maintain or balance its overall capital structure to meet its objectives, the Group is continually monitoring the level of share issuance and any dividend declaration and distributions to shareholders in the future.
14) COMPARATIVE INFORMATION
Certain comparative figures have been reclassified to conform with the current year’s presentation.
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