TIDMALR
RNS Number : 0644T
Alternative Energy Limited
29 May 2009
For immediate release 29 May 2009
ALTERNATIVE ENERGY LIMITED
Interim Results for period to 28th February 2009
Chairman's Statement
The six months from 1st September 2008 to 28th February 2009, the period covered
by this report, was a period of great activity both for the global financial
community and for your Company, Alternative Energy Limited ("AEL").
Against a background of deepening concern and financial turmoil which has
impacted on all market sectors across the world, AEL has been quietly and
consistently following its process, through the good efforts of its research
team, of reviewing and testing alternative energy technologies in which the
Company is interested. This has been done in accordance with the Company's
investment policies with a view to achieving the Company's investment goals and
achieving an acquisition which will provide substantial and tangible shareholder
value.
In particular, the Company has been considering the merits of a system of micro
power generation based upon a domestic and commercial roofing system as an
integrated solution to power generation needs.
The drive to develop renewable energy sources as a solution to the world's
energy and environmental problems is as strong as ever, and the reinforcement of
the importance of renewable energy by the recently elected American President,
Barack Obama, only confirms that the principles upon which AEL were founded are
still sound and strong.
The current results reflect the Company's stability. Whilst the Company is still
expending funds in its research which result in losses, it is expected that the
fruits of such research will lead to a transaction in the short or medium term,
and the value for money of the Company's research expenditure can be considered
in the light of the much larger sums expended by larger companies in this
sector. The Company still has substantial cash resources and will be continuing
to use these prudently.
The board also felt confident enough during the course of the last six months to
repurchase from shareholders shares amounting in total to US$1.2 million, which
further accounts for the reduction in the Company's cash during the period. This
has enabled the Company's shares to remain steady in the market and avoid the
dramatic falls suffered by most other companies.
The Company is now actively seeking to conclude an acquisition within the next
six months and to benefit from the opportunities of the current, fast changing,
markets.
For further information, please contact:
Alternative Energy Limited
Dr Eric Goh, Director Tel:+65 6873 7782
Richard Lascelles, Director Tel: +44 (0) 20 7408 1067
Beaumont Cornish Limited
Roland Cornish Tel: +44 (0) 20 7628 3396
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | | Group | | Group | | Group |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | | Unaudited | | Unaudited | | Audited |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | Note | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | | US$ | | US$ | | US$ |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Assets | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Non-current assets | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Plant and equipment | 3 | 263,105 | | 157,355 | | 157,984 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Intangible assets | 4 | 805,719 | | 464,726 | | 643,019 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Total non-current assets | | 1,068,824 | | 622,081 | | 801,003 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Current assets | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Cash and cash equivalents | 5 | 3,095,755 | | 7,003,863 | | 5,914,760 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Other receivables | 6 | 80,910 | | 78,575 | | 149,830 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Total current assets | | 3,176,665 | | 7,082,438 | | 6,064,590 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Total assets | | 4,245,489 | | 7,704,519 | | 6,865,593 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Equity and liabilities | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Capital and reserves | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Issued capital | 7 | 7,605,006 | | 7,916,392 | | 7,916,392 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Treasury shares | 7 | (1,200,000) | | - | | - |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Accumulated losses | | (2,211,979) | | (398,998) | | (1,269,762) |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Foreign currency translation | 8 | - | | 6,572 | | 5,621 |
| reserve | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Total equity | | 4,193,027 | | 7,523,966 | | 6,652,251 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Current liabilities | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Other payables and accruals | 9 | 22,400 | | 180,553 | | 181,284 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Provisions | 10 | 30,062 | | - | | 32,058 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Total current liabilities | | 52,462 | | 180,553 | | 213,342 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| | | | | | | |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
| Total equity and liabilities | | 4,245,489 | | 7,704,519 | | 6,865,593 |
+---------------------------------+-------+------------------+--+-------------------+--+-------------+
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED CONDENSED INCOME STATEMENT
+--------------------------------------+--------+-------------+----+------------+
| | | Group | | Group |
+--------------------------------------+--------+-------------+----+------------+
| | | 1.9.2008 to | | 1.9.2007 |
| | | | | to |
+--------------------------------------+--------+-------------+----+------------+
| | | 28.2.2009 | | 29.2.2008 |
+--------------------------------------+--------+-------------+----+------------+
| | | Unaudited | | Unaudited |
+--------------------------------------+--------+-------------+----+------------+
| | Note | US$ | | US$ |
+--------------------------------------+--------+-------------+----+------------+
| | | | | |
+--------------------------------------+--------+-------------+----+------------+
| Administrative expenses | | (330,881) | | - |
+--------------------------------------+--------+-------------+----+------------+
| Other expenses | | (660,240) | | (493,730) |
+--------------------------------------+--------+-------------+----+------------+
| Finance income | | 29,368 | | 124,681 |
+--------------------------------------+--------+-------------+----+------------+
| Finance cost | | (1,094) | | - |
+--------------------------------------+--------+-------------+----+------------+
| Loss before income tax | 11 | (962,847) | | (369,049) |
+--------------------------------------+--------+-------------+----+------------+
| Income tax | 12 | (115) | | - |
+--------------------------------------+--------+-------------+----+------------+
| Net loss for the financial period | | (962,962) | | (369,049) |
+--------------------------------------+--------+-------------+----+------------+
| | | | | |
+--------------------------------------+--------+-------------+----+------------+
| Attributable to: | | | | |
+--------------------------------------+--------+-------------+----+------------+
| Equity holders of the Company | | (962,962) | | (369,049) |
+--------------------------------------+--------+-------------+----+------------+
| | | | | |
+--------------------------------------+--------+-------------+----+------------+
| | | | | |
+--------------------------------------+--------+-------------+----+------------+
| | | | | |
+--------------------------------------+--------+-------------+----+------------+
| Loss per share (US$ cents) | | US$ cent | | US$ cent |
+--------------------------------------+--------+-------------+----+------------+
| Basic and diluted loss per share | 13 | # | | # |
+--------------------------------------+--------+-------------+----+------------+
#denotes a figure which is less than US$0.01
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
+------------------------------+------+-------------+--------------+---------------+-------------+
| | | Attributable to the equity holders of |
| | | the parent |
+------------------------------+------+----------------------------------------------------------+
| |Note | Issued | Foreign | Accumulated | Total |
| | | capital | currency | losses | |
| | | | translation | | |
| | | | reserve | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| | | US$ | US$ | US$ | US$ |
+------------------------------+------+-------------+--------------+---------------+-------------+
| | | Unaudited | Unaudited | Unaudited | Unaudited |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Group | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| As at 1 September 2007 | | 3,604,496 | - | (29,949) | 3,574,547 |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Foreign currency translation | | - | 6,572 | - | 6,572 |
| differences | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Net income recognised | | - | 6,572 | - | 6,572 |
| directly in equity | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Loss for the financial | | - | - | (369,049) | (369,049) |
| period | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Total recognised income and | | - | 6,572 | (369,049) | (362,477) |
| (expenses) for the financial | | | | | |
| period | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Issue of shares | 7 | 4,341,663 | - | - | 4,341,663 |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Issue expenses | 7 | (29,767) | - | - | (29,767) |
+------------------------------+------+-------------+--------------+---------------+-------------+
| As at 29 February 2008 | | 7,916,392 | 6,572 | (398,998) | 7,523,966 |
+------------------------------+------+-------------+--------------+---------------+-------------+
| | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| | | Issued | Foreign | Accumulated | Total |
| | | capital | currency | losses | |
| | | | translation | | |
| | | | reserve | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| | | | US$ | US$ | US$ |
| | | US$ | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| | | Unaudited | Unaudited | Unaudited | Unaudited |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Group | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| As at 1 September 2008 | | 7,916,392 | 5,621 | (1,269,762) | 6,652,251 |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Foreign currency translation | | 30,000 | (5,621) | 20,745 | 45,124 |
| differences | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Net income and | | 30,000 | (5,621) | 20,745 | 45,124 |
| (expenses) | | | | | |
| recognised directly | | | | | |
| in equity | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Loss for the financial | | - | - | (962,962) | (962,962) |
| period | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Total recognised income and | | 30,000 | (5,621) | (942,217) | (917,838) |
| (expenses) for the financial | | | | | |
| period | | | | | |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Share buy-back | 7 | (1,200,000) | - | - | (1,200,000) |
+------------------------------+------+-------------+--------------+---------------+-------------+
| Issue expenses | 7 | (341,386) | - | - | (341,386) |
+------------------------------+------+-------------+--------------+---------------+-------------+
| As at 28 February 2009 | | 6,405,006 | - | (2,211,979) | (4,193,027) |
+------------------------------+------+-------------+--------------+---------------+-------------+
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
+--------------------------------------------------+-------------+--+-----------+
| | Group | | Group |
+--------------------------------------------------+-------------+--+-----------+
| | 1.9.2008 | | 1.9.2007 |
| | to | | to |
| | 28.2.2009 | | 29.2.2008 |
+--------------------------------------------------+-------------+--+-----------+
| | Unaudited | | Unaudited |
+--------------------------------------------------+-------------+--+-----------+
| | US$ | | US$ |
+--------------------------------------------------+-------------+--+-----------+
| | | | |
+--------------------------------------------------+-------------+--+-----------+
| Cash flows from operating activities | | | |
+--------------------------------------------------+-------------+--+-----------+
| Loss before income tax | (962,847) | | (369,049) |
+--------------------------------------------------+-------------+--+-----------+
| Adjustments for: | | | |
+--------------------------------------------------+-------------+--+-----------+
| Amortisation of intangible assets | 5,551 | | - |
+--------------------------------------------------+-------------+--+-----------+
| Depreciation of plant and equipment | 59,622 | | 8,883 |
+--------------------------------------------------+-------------+--+-----------+
| Finance income | (29,368) | | (124,681) |
+--------------------------------------------------+-------------+--+-----------+
| Finance cost | 1,094 | | - |
+--------------------------------------------------+-------------+--+-----------+
| Provision for reinstatement cost | (1,320) | | - |
+--------------------------------------------------+-------------+--+-----------+
| Provision for unutilised leave | (676) | | - |
+--------------------------------------------------+-------------+--+-----------+
| Operating cash outflow before working capital | (927,944) | | (484,847) |
| changes | | | |
+--------------------------------------------------+-------------+--+-----------+
| | | | |
+--------------------------------------------------+-------------+--+-----------+
| Changes in working capital: | | | |
+--------------------------------------------------+-------------+--+-----------+
| Other receivables | 68,920 | | (20,798) |
+--------------------------------------------------+-------------+--+-----------+
| Other payables and accruals | (158,884) | | (284,488) |
+--------------------------------------------------+-------------+--+-----------+
| Net cash used in operations | (1,017,908) | | (790,133) |
+--------------------------------------------------+-------------+--+-----------+
| Interest paid | (1,094) | | - |
+--------------------------------------------------+-------------+--+-----------+
| Income tax paid | (115) | | - |
+--------------------------------------------------+-------------+--+-----------+
| Net cash used in operating activities | (1,019,117) | | (790,133) |
+--------------------------------------------------+-------------+--+-----------+
| | | | |
+--------------------------------------------------+-------------+--+-----------+
| Cash flows from investing activities | | | |
+--------------------------------------------------+-------------+--+-----------+
| Acquisition of subsidiary, net of cash acquired | - | | 36,575 |
+--------------------------------------------------+-------------+--+-----------+
| Addition of intangible assets | (168,251) | | - |
+--------------------------------------------------+-------------+--+-----------+
| Pledged fixed deposits | (84,894) | | - |
+--------------------------------------------------+-------------+--+-----------+
| Interest received | 29,368 | | 124,681 |
+--------------------------------------------------+-------------+--+-----------+
| Purchase of plant and equipment | (164,743) | | (159,225) |
+--------------------------------------------------+-------------+--+-----------+
| Net cash (used in)/generated from investing | (388,520) | | 2,031 |
| activities | | | |
+--------------------------------------------------+-------------+--+-----------+
| | | | |
+--------------------------------------------------+-------------+--+-----------+
| Cash flows from financing activities | | | |
+--------------------------------------------------+-------------+--+-----------+
| Purchase of treasury shares | (1,200,000) | | - |
+--------------------------------------------------+-------------+--+-----------+
| Issue expenses | (311,386) | | - |
+--------------------------------------------------+-------------+--+-----------+
| Proceeds from issue of shares, net of issue | - | | 1,286,897 |
| costs | | | |
+--------------------------------------------------+-------------+--+-----------+
| Net cash (used in)/generated from financing | (1,511,386) | | 1,286,897 |
| activities | | | |
+--------------------------------------------------+-------------+--+-----------+
| | | | |
+--------------------------------------------------+-------------+--+-----------+
| Effect of foreign exchange rate changes | 15,124 | | 6,572 |
+--------------------------------------------------+-------------+--+-----------+
| | | | |
+--------------------------------------------------+-------------+--+-----------+
| Net (decrease)/increase in cash and cash | (2,903,899) | | 505,367 |
| equivalents | | | |
+--------------------------------------------------+-------------+--+-----------+
| Cash and cash equivalents at the beginning of | 5,914,760 | | 6,498,496 |
| the financial period | | | |
+--------------------------------------------------+-------------+--+-----------+
| Cash and cash equivalents at the end of the | 3,010,861 | | 7,003,863 |
| financial period (Note 5) | | | |
+--------------------------------------------------+-------------+--+-----------+
ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2008 TO 28 FEBRUARY 2009
1. General
The Company was incorporated in Singapore on 26 December 2006 under the name of
Alternative Energy Pte. Ltd. On 11 July 2007 the Company was converted into a
public limited company and changed its name to Alternative Energy Limited (the
"Company"). The Company is domiciled in Singapore.
On 12 October 2007, the Company was successfully admitted to trading on AIM, a
market operated by the London Stock Exchange.
The principal activity of the Company is the holding of investments. The
registered office of the Company is at 1 Science Park Road, #02-09, The
Capricorn, Singapore Science Park II, Singapore 117528.
The principal activity of the Company's wholly-owned subsidiaries, Renewable
Power Pte Ltd and Alternative Energy Technology Pte Ltd, company incorporated in
Singapore, are that of research and development of renewable energies for
household consumers and holding of trademarks and intellectual properties
respectively.
The interim unaudited financial statements of the Company and its subsidiary
(the "Group") for the financial period ended 28 February 2009 were authorised
for issue by the Board of Directors on 29 May 2009.
2. Basis of preparation
These unaudited interim consolidated condensed financial statements of the Group
are for the six months ended 28 February 2009. They are prepared in accordance
with International Accounting Standard 34, Interim Financial Reporting.
This condensed interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this condensed
report is to be read in conjunction with the Annual Report for the year ended 31
August 2008 and any public announcements made by the Group during the interim
reporting period.
The unaudited condensed interim financial statements for the six months ended 28
February 2009 do not constitute statutory accounts and have been drawn up using
accounting policies and presentation expected to be adopted in the Group's full
financial statements for the year ended 31 August 2009, which are not expected
to be significantly different to those set out in note 2 to the Group's audited
financial statements for the year ended 31 August 2008.
The financial information for the year ended 31 August 2008 has been extracted
from the statutory accounts for that period. The auditors' report for the year
ended 31 August 2008 was unqualified and did not include references to any
matters to which the auditors drew attention by way of emphasis without
qualifying their report.
The financial information for the 6 months ended 28 February 2008 has been
extracted from the interim results released to 28 February 2008.
3. Plant and equipment
+-----------------------+------------+------------+-------------+------------+
| | Renovation | Computers | Machinery, | Total |
| | | | office | |
| | | | equipment, | |
| | | | furniture | |
| | | | and | |
| | | | fittings | |
+-----------------------+------------+------------+-------------+------------+
| Group | US$ | US$ | US$ | US$ |
+-----------------------+------------+------------+-------------+------------+
| Unaudited | | | | |
+-----------------------+------------+------------+-------------+------------+
| 28 February 2009 | | | | |
+-----------------------+------------+------------+-------------+------------+
| Cost | | | | |
+-----------------------+------------+------------+-------------+------------+
| As at 1 September | 117,788 | 39,824 | 44,413 | 202,025 |
| 2008 | | | | |
+-----------------------+------------+------------+-------------+------------+
| Additions | - | 13,942 | 150,801 | 164,743 |
+-----------------------+------------+------------+-------------+------------+
| As at 28 February | 117,788 | 53,766 | 195,214 | 366,768 |
| 2009 | | | | |
+-----------------------+------------+------------+-------------+------------+
| | | | | |
+-----------------------+------------+------------+-------------+------------+
| Accumulated | | | | |
| depreciation | | | | |
+-----------------------+------------+------------+-------------+------------+
| As at 1 September | 28,621 | 7,478 | 7,942 | 44,041 |
| 2008 | | | | |
+-----------------------+------------+------------+-------------+------------+
| Depreciation charge | | | | |
| for the | | | | |
+-----------------------+------------+------------+-------------+------------+
| period | 20,688 | 7,775 | 31,159 | 59,622 |
+-----------------------+------------+------------+-------------+------------+
| As at 28 February | 49,309 | 15,253 | 39,101 | 103,663 |
| 2009 | | | | |
+-----------------------+------------+------------+-------------+------------+
| | | | | |
+-----------------------+------------+------------+-------------+------------+
| Net book value | | | | |
+-----------------------+------------+------------+-------------+------------+
| As at 28 February | 68,479 | 38,513 | 156,113 | 263,105 |
| 2009 | | | | |
+-----------------------+------------+------------+-------------+------------+
| | | | | |
+-----------------------+------------+------------+-------------+------------+
| | | | | |
+-----------------------+------------+------------+-------------+------------+
| Unaudited | | | | |
+-----------------------+------------+------------+-------------+------------+
| 29 February 2008 | | | | |
+-----------------------+------------+------------+-------------+------------+
| Cost | | | | |
+-----------------------+------------+------------+-------------+------------+
| As at 1 September | - | - | - | - |
| 2007 | | | | |
+-----------------------+------------+------------+-------------+------------+
| Acquisition of | - | 4,787 | 2,226 | 7,013 |
| subsidiary | | | | |
+-----------------------+------------+------------+-------------+------------+
| Additions | 94,246 | 40,047 | 24,932 | 159,225 |
+-----------------------+------------+------------+-------------+------------+
| As at 29 February | 94,246 | 44,834 | 27,158 | 166,238 |
| 2008 | | | | |
+-----------------------+------------+------------+-------------+------------+
| | | | | |
+-----------------------+------------+------------+-------------+------------+
| Accumulated | | | | |
| depreciation | | | | |
+-----------------------+------------+------------+-------------+------------+
| As at 1 September | - | - | - | - |
| 2007 | | | | |
+-----------------------+------------+------------+-------------+------------+
| Depreciation charge | | | | |
| for the | | | | |
+-----------------------+------------+------------+-------------+------------+
| period | 4,768 | 2,849 | 1,266 | 8,883 |
+-----------------------+------------+------------+-------------+------------+
| As at 29 February | 4,768 | 2,849 | 1,266 | 8,883 |
| 2008 | | | | |
+-----------------------+------------+------------+-------------+------------+
| | | | | |
+-----------------------+------------+------------+-------------+------------+
| Net book value | | | | |
+-----------------------+------------+------------+-------------+------------+
| As at 29 February | 89,478 | 41,985 | 25,892 | 157,355 |
| 2008 | | | | |
+-----------------------+------------+------------+-------------+------------+
3. Plant and equipment (Continued)
+-----------------------+------------+------------+------------+------------+
| | Renovation | Computers | Machinery, | Total |
| | | | office | |
| | | | equipment, | |
| | | | furniture | |
| | | | and | |
| | | | fittings | |
+-----------------------+------------+------------+------------+------------+
| Group | US$ | US$ | US$ | US$ |
+-----------------------+------------+------------+------------+------------+
| Audited | | | | |
+-----------------------+------------+------------+------------+------------+
| 31 August 2008 | | | | |
+-----------------------+------------+------------+------------+------------+
| Cost | | | | |
+-----------------------+------------+------------+------------+------------+
| As at incorporation | - | - | - | - |
| and 1 September 2007 | | | | |
+-----------------------+------------+------------+------------+------------+
| Arising from | - | 4,687 | 2,226 | 6,913 |
| acquisition of a | | | | |
| subsidiary | | | | |
+-----------------------+------------+------------+------------+------------+
| Additions | 118,091 | 35,097 | 42,237 | 195,425 |
+-----------------------+------------+------------+------------+------------+
| Foreign currency | (303) | 40 | (50) | (313) |
| translation | | | | |
| difference | | | | |
+-----------------------+------------+------------+------------+------------+
| As at 31 August 2008 | 117,788 | 39,824 | 44,413 | 202,025 |
+-----------------------+------------+------------+------------+------------+
| | | | | |
+-----------------------+------------+------------+------------+------------+
| Accumulated | | | | |
| depreciation | | | | |
+-----------------------+------------+------------+------------+------------+
| As at incorporation | - | - | - | - |
| and 1 September 2007 | | | | |
+-----------------------+------------+------------+------------+------------+
| Depreciation charge | 28,695 | 7,495 | 7,962 | 44,152 |
| for the period | | | | |
+-----------------------+------------+------------+------------+------------+
| Foreign currency | (74) | (17) | (20) | (111) |
| translation | | | | |
| difference | | | | |
+-----------------------+------------+------------+------------+------------+
| As at 31 August 2008 | 28,621 | 7,478 | 7,942 | 44,041 |
+-----------------------+------------+------------+------------+------------+
| | | | | |
+-----------------------+------------+------------+------------+------------+
| Net book value | | | | |
+-----------------------+------------+------------+------------+------------+
| As at 31 August 2008 | 89,167 | 32,346 | 36,471 | 157,984 |
+-----------------------+------------+------------+------------+------------+
4. Intangible assets
Group
+--------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Unaudited | Goodwill | | Computer | | Patents | | Trademarks | | Total |
| | | | software | | | | | | |
+--------------------+----------+--+----------+--+---------+--+------------+--+---------+
| 28 February | | | | | | | | | |
| 2009 | | | | | | | | | |
+--------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Cost | US$ | | US$ | | US$ | | US$ | | US$ |
+--------------------+----------+--+----------+--+---------+--+------------+--+---------+
| As at 1 | 464,726 | | 30,351 | | 57,626 | | 95,712 | | 648,415 |
| September 2008 | | | | | | | | | |
+--------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Additions | - | | 4,748 | | 98,974 | | 64,529 | | 168,251 |
+--------------------+----------+--+----------+--+---------+--+------------+--+---------+
| As at 28 | 464,726 | | 35,099 | | 156,600 | | 160,241 | | 816,666 |
| February 2009 | | | | | | | | | |
+--------------------+----------+--+----------+--+---------+--+------------+--+---------+
+--------------------+---------+--+--------+--+--------+--+----------+--+---------+
| Accumulated | | | | | | | | |
| amortisation | | | | | | | | |
+------------------------------+--+--------+--+--------+--+----------+--+---------+
| As at 1 September | - | | 5,396 | | - | | - | | 5,396 |
| 2008 | | | | | | | | | |
+--------------------+---------+--+--------+--+--------+--+----------+--+---------+
| Amortisation for | - | | 5,551 | | - | | - | | 5,551 |
| the period | | | | | | | | | |
+--------------------+---------+--+--------+--+--------+--+----------+--+---------+
| As at 28 | - | | 10,947 | | - | | - | | 10,947 |
| February2009 | | | | | | | | | |
+--------------------+---------+--+--------+--+--------+--+----------+--+---------+
+--------------------+---------+--+--------+--+---------+--+----------+--+---------+
| Net book value | | | | | | | | |
+------------------------------+--+--------+--+---------+--+----------+--+---------+
| As at 28 February | 464,726 | | 24,152 | | 156,600 | | 160,241 | | 805,719 |
| 2009 | | | | | | | | | |
+--------------------+---------+--+--------+--+---------+--+----------+--+---------+
4. Intangible assets (Continued)
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| | Goodwill | | Computer | | Patents | | Trademarks | | Total |
| | | | software | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Group | US$ | | US$ | | US$ | | US$ | | US$ |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Unaudited | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| 29 February | | | | | | | | | |
| 2008 | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| As at | - | | - | | - | | - | | - |
| incorporation | | | | | | | | | |
| and 1 | | | | | | | | | |
| September | | | | | | | | | |
| 2007 | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Arising from | 464,726 | | - | | - | | - | | 464,726 |
| acquisition | | | | | | | | | |
| of a | | | | | | | | | |
| subsidiary | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| As at 29 | 464,726 | | - | | - | | - | | 464,726 |
| February | | | | | | | | | |
| 2008 | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Accumulated amortisation | | | | | | | | |
+------------------------------+--+----------+--+---------+--+------------+--+---------+
| As at | - | | - | | - | | - | | - |
| incorporation | | | | | | | | | |
| and 1 | | | | | | | | | |
| September | | | | | | | | | |
| 2007 | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Amortisation | - | | - | | - | | - | | - |
| for the year | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| As at 29 | - | | - | | - | | - | | - |
| February | | | | | | | | | |
| 2008 | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Net book | | | | | | | | | |
| value | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| As at 29 | 464,726 | | - | | - | | - | | 464,726 |
| February | | | | | | | | | |
| 2008 | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Audited | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| 31 August | | | | | | | | | |
| 2008 | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Cost | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| As at | - | | - | | - | | - | | - |
| incorporation | | | | | | | | | |
| and 1 | | | | | | | | | |
| September | | | | | | | | | |
| 2007 | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Additions | - | | 30,327 | | 57,626 | | 95,712 | | 183,665 |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Arising from | 464,726 | | 100 | | - | | - | | 464,826 |
| acquisition | | | | | | | | | |
| of a | | | | | | | | | |
| subsidiary | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| Foreign | - | | (76) | | - | | - | | (76) |
| currency | | | | | | | | | |
| translation | | | | | | | | | |
| difference | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
| As at 31 | | | 30,351 | | 57,626 | | 95,712 | | 648,415 |
| August 2008 | | | | | | | | | |
+-------------------+----------+--+----------+--+---------+--+------------+--+---------+
+------------------+---------+--+----------+--+--------+--+----------+--+---------+
| Accumulated amortisation | | | | | | | | |
+----------------------------+--+----------+--+--------+--+----------+--+---------+
| As at | - | | - | | - | | - | | - |
| incorporation | | | | | | | | | |
| and1 September | | | | | | | | | |
| 2007 | | | | | | | | | |
+------------------+---------+--+----------+--+--------+--+----------+--+---------+
| Amortisation for | - | | 5,410 | | - | | - | | 5,410 |
| the year | | | | | | | | | |
+------------------+---------+--+----------+--+--------+--+----------+--+---------+
| Foreign currency | - | | (14) | | - | | - | | (14) |
| translation | | | | | | | | | |
| difference | | | | | | | | | |
+------------------+---------+--+----------+--+--------+--+----------+--+---------+
| As at 31 August | - | | 5,396 | | - | | - | | 5,396 |
| 2008 | | | | | | | | | |
+------------------+---------+--+----------+--+--------+--+----------+--+---------+
| | | | | | | | | |
+----------------------------+--+----------+--+--------+--+----------+--+---------+
| Net book value | | | | | | | | |
+----------------------------+--+----------+--+--------+--+----------+--+---------+
| As at 31 August | 464,726 | | 24,955 | | 57,626 | | 95,712 | | 643,019 |
| 2008 | | | | | | | | | |
+------------------+---------+--+----------+--+--------+--+----------+--+---------+
4. Intangible assets (Continued)
Goodwill represents the excess of the cost of a business combination over the
interest in the fair value of identifiable assets, liabilities and contingent
liabilities acquired. Cost comprises the fair values of assets given,
liabilities assumed and equity instruments issued plus any direct costs of
acquisition.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is
allocated to cash generating units and is not amortised but is tested annually
for impairment or more frequently if events or changes in circumstances indicate
that it might be impaired.
As at 28 February 2009, the management has assessed and determined that the
goodwill is not impaired. Such assessment and determination require the
management to make judgements, estimates and assumptions. These estimates and
associated assumptions are continually evaluated and are based on historical
experience and other factors including expectations of future events or changes
in circumstances. Actual results may differ from these estimates.
Included in the patents is an amount of approximately US$1 being the cost of the
option to purchase certain patents from a related party (the "vendor"). In
October 2008, the Company has engaged an independent professional valuer to
value certain patents to be purchased from the vendor. Based on the discounted
cash flow method of valuation, the independent professional valuer has valued
these patents to be at approximately US$33 million. Having considered the
valuation performed by the professional valuer, the Company and the vendor have
agreed to fix the purchase consideration for the purchase of these patents at
US$20 million. This purchase consideration shall be fully settled by the issue
of new ordinary shares of the Company on formula agreed between the Company and
the vendor. At the date of the unaudited financial statements, the proposed
purchase has not been completed.
5.Cash and cash equivalents
+----------------------------------+------------+--+-----------+--+-----------+
| | Group | | Group | | Group |
+----------------------------------+------------+--+-----------+--+-----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------------+------------+--+-----------+--+-----------+
| | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+----------------------------------+------------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ |
+----------------------------------+------------+--+-----------+--+-----------+
| | | | | | |
+----------------------------------+------------+--+-----------+--+-----------+
| Cash on hand and bank balances | 510,257 | | 878,696 | | 1,241,323 |
+----------------------------------+------------+--+-----------+--+-----------+
| Fixed deposits | 2,585,498 | | 6,125,167 | | 4,673,437 |
+----------------------------------+------------+--+-----------+--+-----------+
| Cash and bank balances | 3,095,755 | | 7,003,863 | | 5,914,760 |
+----------------------------------+------------+--+-----------+--+-----------+
| Less: fixed deposits pledged to | (84,894) | | - | | (85,773) |
| a bank | | | | | |
+----------------------------------+------------+--+-----------+--+-----------+
| Cash and cash | 3,010,861 | | 7,003,863 | | 5,828,987 |
| equivalents as per | | | | | |
| consolidated cash flow | | | | | |
| statements | | | | | |
+----------------------------------+------------+--+-----------+--+-----------+
Fixed deposits are placed with the bank, with original maturing periods of not
more than 90 days. Interest rate ranges from 0.875% to 3.27% (29.2.2008: 1.5% to
4.4% and 31.8.2008: 0.825% to 4.4%) per annum.
5.Cash and cash equivalents (Continued)
Cash and cash equivalents are denominated in the following currencies:
+----------------------------------+------------+--+-----------+--+-----------+
| | Group | | Group | | Group |
+----------------------------------+------------+--+-----------+--+-----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------------+------------+--+-----------+--+-----------+
| | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+----------------------------------+------------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ |
+----------------------------------+------------+--+-----------+--+-----------+
| | | | | | |
+----------------------------------+------------+--+-----------+--+-----------+
| Singapore dollar | 236,630 | | 144,978 | | 330,749 |
+----------------------------------+------------+--+-----------+--+-----------+
| United States dollar | 2,859,125 | | 6,858,885 | | 5,584,011 |
+----------------------------------+------------+--+-----------+--+-----------+
| | 3,095,755 | | 7,003,863 | | 5,914,760 |
+----------------------------------+------------+--+-----------+--+-----------+
The Group's fixed deposits of US$84,894 (29.2.2008: Nil and 31.8.2008:
US$85,773) are pledged to a bank for credit card facility granted to a
subsidiary company.
6. Other receivables
+----------------------------------+------------+--+-----------+--+-----------+
| | Group | | Group | | Group |
+----------------------------------+------------+--+-----------+--+-----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------------+------------+--+-----------+--+-----------+
| | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+----------------------------------+------------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ |
+----------------------------------+------------+--+-----------+--+-----------+
| | | | | | |
+----------------------------------+------------+--+-----------+--+-----------+
| Other receivables | 16,907 | | 24,711 | | 2,417 |
+----------------------------------+------------+--+-----------+--+-----------+
| Deposits | 57,797 | | 47,385 | | 143,295 |
+----------------------------------+------------+--+-----------+--+-----------+
| Prepayments | 6,206 | | 6,479 | | 4,118 |
+----------------------------------+------------+--+-----------+--+-----------+
| | 80,910 | | 78,575 | | 149,830 |
+----------------------------------+------------+--+-----------+--+-----------+
None of these receivables are past due or impaired as at 28 February 2009.
Other receivables are denominated in the following currencies:
+----------------------------------+------------+--+-----------+--+-----------+
| | Group | | Group | | Group |
+----------------------------------+------------+--+-----------+--+-----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------------+------------+--+-----------+--+-----------+
| | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+----------------------------------+------------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ |
+----------------------------------+------------+--+-----------+--+-----------+
| | | | | | |
+----------------------------------+------------+--+-----------+--+-----------+
| Singapore dollar | 80,910 | | 61,070 | | 149,830 |
+----------------------------------+------------+--+-----------+--+-----------+
| United States dollar | - | | 17,505 | | - |
+----------------------------------+------------+--+-----------+--+-----------+
| | 80,910 | | 78,575 | | 149,830 |
+----------------------------------+------------+--+-----------+--+-----------+
7.Issued capital and treasury shares
(a) Issued capital
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| | Group | | Group | | Group | | Group | | Group | | Group |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| | Unaudited | | Unaudited | | Audited | | Unaudited | | Unaudited | | Audited |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| | 28.2.2009 | | 29.2.2008 | | 31.8.2008 | | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| | Number of ordinary shares | | US$ | | US$ | | US$ |
+-----------------------+-----------------------------------------------------+--+-----------+--+------------+--+-----------+
| Issued and | | | | | | | | | | | |
| fully-paid: | | | | | | | | | | | |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| | | | | | | | | | | | |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| Balance at | 1,183,092,564 | | 570,445,035 | | 570,445,035 | | 7,916,392 | | 3,604,496 | | 3,604,496 |
| beginning of | | | | | | | | | | | |
| financial | | | | | | | | | | | |
| period/years | | | | | | | | | | | |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| Issue of new | - | | 603,235,765 | | 603,235,765 | | - | | 3,941,663 | | 3,941,663 |
| shares | | | | | | | | | | | |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| Exchange | - | | - | | - | | 30,000 | | - | | - |
| difference | | | | | | | | | | | |
| arising | | | | | | | | | | | |
| from | | | | | | | | | | | |
| consideration | | | | | | | | | | | |
| paid in | | | | | | | | | | | |
| non-US$ from | | | | | | | | | | | |
| prior period | | | | | | | | | | | |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| Issue of | - | | 9,411,764 | | 9,411,764 | | - | | 400,000 | | 400,000 |
| new | | | | | | | | | | | |
| ordinary | | | | | | | | | | | |
| shares to | | | | | | | | | | | |
| acquire | | | | | | | | | | | |
| subsidiary | | | | | | | | | | | |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| Less: share issue | - | | - | | - | | (341,386) | | (29,767) | | (29,767) |
| expenses | | | | | | | | | | | |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
| Balance at | 1,183,092,564 | | 1,183,092,564 | | 1,183,092,564 | | 7,605,006 | | 7,916,392 | | 7,916,392 |
| end of | | | | | | | | | | | |
| financial | | | | | | | | | | | |
| period/years | | | | | | | | | | | |
+-----------------------+---------------+--+---------------+--+---------------+--+-----------+--+------------+--+-----------+
The Company has one class of ordinary shares. All issued ordinary shares are
fully paid and carry one vote per ordinary share and also carry a right to
dividends. There is no par value for these ordinary shares.
All newly issued shares of the Company shall rank pari-passu in all respects
with the then existing issued shares.
(b) Treasury shares
+---------------------+------------+--+-----------+--+-----------+--+-----------+--+-----------+--+-----------+
| | Group | | Group | | Group | | Group | | Group | | Group |
+---------------------+------------+--+-----------+--+-----------+--+-----------+--+-----------+--+-----------+
| | Unaudited | | Unaudited | | Audited | | Unaudited | | Unaudited | | Audited |
+---------------------+------------+--+-----------+--+-----------+--+-----------+--+-----------+--+-----------+
| | 28.2.2009 | | 29.2.2008 | | 31.8.2008 | | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+---------------------+------------+--+-----------+--+-----------+--+-----------+--+-----------+--+-----------+
| | Number of ordinary shares | | US$ | | US$ | | US$ |
+---------------------+------------------------------------------+--+-----------+--+-----------+--+-----------+
| Issued and | | | | | | | | | | | |
| fully-paid: | | | | | | | | | | | |
+---------------------+------------+--+-----------+--+-----------+--+-----------+--+-----------+--+-----------+
| | | | | | | | | | | | |
+---------------------+------------+--+-----------+--+-----------+--+-----------+--+-----------+--+-----------+
| Balance at | - | | - | | - | | - | | - | | - |
| beginning of | | | | | | | | | | | |
| financial period | | | | | | | | | | | |
+---------------------+------------+--+-----------+--+-----------+--+-----------+--+-----------+--+-----------+
| Purchase during the | 40,042,966 | | - | | - | | 1,200,000 | | - | | - |
| financial period | | | | | | | | | | | |
+---------------------+------------+--+-----------+--+-----------+--+-----------+--+-----------+--+-----------+
| Balance at end of | 40,042,966 | | - | | - | | 1,200,000 | | - | | - |
| financial period | | | | | | | | | | | |
+---------------------+------------+--+-----------+--+-----------+--+-----------+--+-----------+--+-----------+
The Company acquired 40,042,966 of its own shares from its shareholders through
off-market purchases at an average price of US$0.03 per share. The Company paid
US$1,200,000 in cash to acquire the said shares. This amount was deducted from
issued share capital within the shareholders' equity. The shares brought back
are held as treasury shares.
8.Foreign currency translation reserve
The foreign currency translation reserve comprises all foreign exchange
differences arising from the translation of the unaudited financial statements
of the Group's subsidiary whose functional currency is other than United States
dollar. This reserve is non-distributable.
On 1 September 2008, the subsidiary company changed its functional currency as
the management has determined that the functional currency of the subsidiary is
the United States Dollar. In the opinion of management, the US dollar is
representative of the primary economic environment in which the subsidiary
operates and it reflects the economic substance of the underlying events and
circumstances relevant to the subsidiary. In accordance with International
Accounting Standards this change in functional currency of the subsidiary has
been accounted for prospectively by translating all items using the Singapore
Dollar/US dollar exchange spot rate on that date. In the subsidiary company
accounts the resulting translated amounts for non monetary items at this date
have been treated as their historic cost.
9.Other payables and accruals
+----------------------------------+------------+--+-----------+--+-----------+
| | Group | | Group | | Group |
+----------------------------------+------------+--+-----------+--+-----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------------+------------+--+-----------+--+-----------+
| | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+----------------------------------+------------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ |
+----------------------------------+------------+--+-----------+--+-----------+
| | | | | | |
+----------------------------------+------------+--+-----------+--+-----------+
| Other payables | 10,699 | | 5,017 | | 1,133 |
+----------------------------------+------------+--+-----------+--+-----------+
| Accruals | 10,462 | | 111,871 | | 113,661 |
+----------------------------------+------------+--+-----------+--+-----------+
| Provision for directors' fees | - | | 33,333 | | - |
+----------------------------------+------------+--+-----------+--+-----------+
| Amount due to a director | 1,239 | | 30,332 | | 66,490 |
+----------------------------------+------------+--+-----------+--+-----------+
| | 22,400 | | 180,553 | | 181,284 |
+----------------------------------+------------+--+-----------+--+-----------+
Amount due to a director is due to Christopher Nightingale and is interest-free,
unsecured and repayable on demand.
Other payables and accruals are denominated in the following currencies:
+----------------------------------+------------+--+-----------+--+-----------+
| | Group | | Group | | Group |
+----------------------------------+------------+--+-----------+--+-----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------------+------------+--+-----------+--+-----------+
| | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+----------------------------------+------------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ |
+----------------------------------+------------+--+-----------+--+-----------+
| | | | | | |
+----------------------------------+------------+--+-----------+--+-----------+
| British pound | - | | 99,296 | | 10,264 |
+----------------------------------+------------+--+-----------+--+-----------+
| Singapore dollar | 21,161 | | 47,924 | | 104,530 |
+----------------------------------+------------+--+-----------+--+-----------+
| United States dollar | 1,239 | | 33,333 | | 66,490 |
+----------------------------------+------------+--+-----------+--+-----------+
| | 22,400 | | 180,553 | | 181,284 |
+----------------------------------+------------+--+-----------+--+-----------+
10.Provisions
+----------------------------------+------------+--+-----------+--+-----------+
| | Group | | Group | | Group |
+----------------------------------+------------+--+-----------+--+-----------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------------+------------+--+-----------+--+-----------+
| | 28.2.2009 | | 29.2.2008 | | 31.8.2008 |
+----------------------------------+------------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ |
+----------------------------------+------------+--+-----------+--+-----------+
| | | | | | |
+----------------------------------+------------+--+-----------+--+-----------+
| Provision for unutilised leave | 10,187 | | - | | 10,863 |
+----------------------------------+------------+--+-----------+--+-----------+
| Provision for reinstatement cost | 19,875 | | - | | 21,195 |
+----------------------------------+------------+--+-----------+--+-----------+
| | 30,062 | | - | | 32,058 |
+----------------------------------+------------+--+-----------+--+-----------+
Provision for unutilised leave represents employee entitlements to annual leave
as a result of services rendered by employees up to the balance sheet date.
Provision for reinstatement cost is relation to the obligation for
dismantlement, removal or restoration of office premises.
Movements in the provisions are as follows:
+--------------------------------+------------+--+---------------+--+-----------+
| | Provision | | Provision | | Total |
| | for | | for | | |
| | unutilised | | reinstatement | | |
| | leave | | cost | | |
+--------------------------------+------------+--+---------------+--+-----------+
| | US$ | | US$ | | US$ |
+--------------------------------+------------+--+---------------+--+-----------+
| Unaudited | | | | | |
+--------------------------------+------------+--+---------------+--+-----------+
| 28.2.2009 | | | | | |
+--------------------------------+------------+--+---------------+--+-----------+
| Balance at beginning of | 10,863 | | 21,195 | | 32,058 |
| financial period | | | | | |
+--------------------------------+------------+--+---------------+--+-----------+
| Provision utilised during | (676) | | (1,320) | | (1,996) |
| the financial year | | | | | |
+--------------------------------+------------+--+---------------+--+-----------+
| Balance at end of | 10,187 | | 19,875 | | 30,062 |
| financial period | | | | | |
+--------------------------------+------------+--+---------------+--+-----------+
+--------------------------------+----------+--+-------------+--+-----------+
| Unaudited | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
| 29.2.2008 | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
| Balance at beginning of | - | | - | | - |
| financial year | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
| Provision during the financial | - | | - | | - |
| year | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
| Balance at end of financial | - | | - | | - |
| year | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
+--------------------------------+----------+--+-------------+--+-----------+
| Audited | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
| 31.8.2008 | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
| Balance at beginning of | - | | - | | - |
| financial year | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
| Provision during the financial | 10,863 | | 21,195 | | 32,058 |
| year | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
| Balance at end of financial | 10,863 | | 21,195 | | 32,058 |
| year | | | | | |
+--------------------------------+----------+--+-------------+--+-----------+
11. Loss before income tax
In addition to the information disclosed elsewhere in the unaudited financial
statements, the Group's loss before income tax is arrived at after charging the
following:
+---------------------------------------+--------------+----+--------------+
| | Group | | Group |
+---------------------------------------+--------------+----+--------------+
| | 1.9.2008 to | | 1.9.2007 to |
+---------------------------------------+--------------+----+--------------+
| | 28.2.2009 | | 29.2.2008 |
+---------------------------------------+--------------+----+--------------+
| | Unaudited | | Unaudited |
+---------------------------------------+--------------+----+--------------+
| | US$ | | US$ |
+---------------------------------------+--------------+----+--------------+
| Staff costs | | | |
+---------------------------------------+--------------+----+--------------+
| -Directors' remuneration other than | 127,412 | | 33,333 |
| fees | | | |
+---------------------------------------+--------------+----+--------------+
| -Employee benefits expense | 176,340 | | - |
+---------------------------------------+--------------+----+--------------+
| Amortisation of intangible assets | 5,551 | | - |
+---------------------------------------+--------------+----+--------------+
| Depreciation of plant and equipment | 59,622 | | 8,444 |
+---------------------------------------+--------------+----+--------------+
| Office rental | 59,276 | | 49,203 |
+---------------------------------------+--------------+----+--------------+
| Equipment rental | 1,096 | | - |
+---------------------------------------+--------------+----+--------------+
| Foreign currency exchange loss, net | 46,002 | | 22,213 |
+---------------------------------------+--------------+----+--------------+
| Research and development costs | 13,405 | | 2,528 |
| expensed off | | | |
+---------------------------------------+--------------+----+--------------+
| Professional fees | 142,598 | | 236,336 |
+---------------------------------------+--------------+----+--------------+
| Provision for reinstatement cost | - | | 9,428 |
+---------------------------------------+--------------+----+--------------+
12.Income tax
+---------------------------------------+--------------+----+--------------+
| | Group | | Group |
+---------------------------------------+--------------+----+--------------+
| | 1.9.2008 to | | 1.9.2007 to |
+---------------------------------------+--------------+----+--------------+
| | 28.2.2009 | | 29.2.2008 |
+---------------------------------------+--------------+----+--------------+
| | Unaudited | | Unaudited |
+---------------------------------------+--------------+----+--------------+
| | US$ | | US$ |
+---------------------------------------+--------------+----+--------------+
| Current income tax | | | |
+---------------------------------------+--------------+----+--------------+
| - under provision in prior year | (115) | | - |
+---------------------------------------+--------------+----+--------------+
The income tax expense has been determined by applying the Singapore income tax
rate of 17% (2008:18%) to loss before income tax and total charge for the
financial period/year can be reconciled to accounting loss as follows:
+---------------------------------------+--------------+----+--------------+
| | Group | | Group |
+---------------------------------------+--------------+----+--------------+
| | 1.9.2008 to | | 1.9.2007 to |
+---------------------------------------+--------------+----+--------------+
| | 28.2.2009 | | 29.2.2008 |
+---------------------------------------+--------------+----+--------------+
| | Unaudited | | Unaudited |
+---------------------------------------+--------------+----+--------------+
| | US$ | | US$ |
+---------------------------------------+--------------+----+--------------+
| Reconciliation of effective tax rate | | | |
+---------------------------------------+--------------+----+--------------+
| | | | |
+---------------------------------------+--------------+----+--------------+
| Loss for the financial period | (962,847) | | (369,049) |
+---------------------------------------+--------------+----+--------------+
| | | | |
+---------------------------------------+--------------+----+--------------+
| Tax calculated at statutory rate of | (163,684) | | (66,429) |
| 17% (2008:18%) | | | |
+---------------------------------------+--------------+----+--------------+
| Effect of changes in tax rate | 7,899 | | - |
+---------------------------------------+--------------+----+--------------+
| Under provision in prior period | (115) | | - |
+---------------------------------------+--------------+----+--------------+
| Expenses not deductible for tax | 155,785 | | 66,429 |
| purposes | | | |
+---------------------------------------+--------------+----+--------------+
| | (115) | | - |
+---------------------------------------+--------------+----+--------------+
12.Income tax (Continued)
There is no deferred tax impact on these financial statements arising during the
period.
13. Basic and diluted loss per share
* Basic loss per share
Basic loss per share is calculated by dividing the Group's loss attributable to
equity holders by the weighted average number of ordinary shares in issue during
the financial period.
The loss per share is calculated as follows:
+-------------------------------------------+---------------+--+---------------+
| | Group | | Group |
+-------------------------------------------+---------------+--+---------------+
| | 1.9.2008 | | 1.9.2007 |
| | to | | to |
+-------------------------------------------+---------------+--+---------------+
| | 28.2.2009 | | 29.2.2008 |
+-------------------------------------------+---------------+--+---------------+
| | Unaudited | | Unaudited |
+-------------------------------------------+---------------+--+---------------+
| | | | |
+-------------------------------------------+---------------+--+---------------+
| Net loss attributable to equity holders | US$962,962 | | US$369,049 |
| of the Company | | | |
+-------------------------------------------+---------------+--+---------------+
| | | | |
+-------------------------------------------+---------------+--+---------------+
| Weighted average number of ordinary | 1,145,188,489 | | 1,053,184,580 |
| shares | | | |
+-------------------------------------------+---------------+--+---------------+
| | | | |
+-------------------------------------------+---------------+--+---------------+
| Basic loss per share | # | | # |
+-------------------------------------------+---------------+--+---------------+
# denotes a figure which is less than US$0.01
b. Diluted loss per share
There are no potentially dilutive shares in issue.
14.Acquisition of a subsidiary
On 30 October 2007, the Company entered into a sale and purchase agreement with
Dr Goh Swee Ming (the "vendor") pursuant to which the vendor sold his
shareholding interest of 100% in Renewable Power Pte Ltd, a company incorporated
in Singapore, to the Company for a consideration of US$400,000 which was fully
paid or satisfied by way of the issuance of 9,411,764 new ordinary shares in the
Company at the issue price of US$0.0425 per ordinary share (the "consideration
shares"). The US$0.0425 price is based on the market price of the share as at 30
October 2007.
The allotted and issued consideration shares rank pari passu in all respects
with the then existing ordinary shares of the Company save that they will not
rank for any dividends, rights, allotments or any distribution, the record date
of which falls before the date of issue of the consideration shares. The
consideration shares represented approximately 0.79% of the enlarged issued
share capital of the Company upon the completion of this acquisition.
In the prior period the acquired company did not contribute any revenue but did
contribute a net loss of approximately US$290,140 to the consolidated income
statement for the financial period ended 29 February 2008, since acquisition
date. If the acquisition had occurred on 1 September 2007, the Group's revenue
would remain the same whilst the Group's net loss for the financial period ended
29 February 2008 would have been US$369,049.
Subsequent to the above transactions, Dr Goh Swee Ming became a Director of the
Company on 13 November 2007.
14.Acquisition of a subsidiary (Continued)
The carrying amount and fair value of identifiable assets and liabilities of
Renewable Power Pte Ltd as at the date of acquisition and the net cash inflow on
acquisition were as follows:
+--------------------------------------------+-------------+---+-------------+
| | Carrying | | Fair value |
| | amount | | recognised |
| | before | | on |
| | combination | | acquisition |
+--------------------------------------------+-------------+---+-------------+
| | US$ | | |
| | | | US$ |
+--------------------------------------------+-------------+---+-------------+
| | | | |
+--------------------------------------------+-------------+---+-------------+
| Plant and equipment | 6,913 | | 6,913 |
+--------------------------------------------+-------------+---+-------------+
| Intangible asset - computer software | 100 | | 100 |
+--------------------------------------------+-------------+---+-------------+
| Cash and bank balances | 36,575 | | 36,575 |
+--------------------------------------------+-------------+---+-------------+
| Current assets (other than cash and bank | 57,777 | | 57,777 |
| balances) | | | |
+--------------------------------------------+-------------+---+-------------+
| Current liabilities | (166,091) | | (166,091) |
+--------------------------------------------+-------------+---+-------------+
| Total net liabilities | (64,726) | | (64,726) |
+--------------------------------------------+-------------+---+-------------+
| Goodwill (Note 4) | | | 464,726 |
+--------------------------------------------+-------------+---+-------------+
| Total purchase consideration | | | 400,000 |
+--------------------------------------------+-------------+---+-------------+
The purchase consideration is fully settled by the issuance of 9,411,764
ordinary shares of the Company.
+--------------------------------------------+---------------+----------------------------------------+
| | | |
+--------------------------------------------+---------------+----------------------------------------+
| | | US$ |
+--------------------------------------------+---------------+----------------------------------------+
| | | |
+--------------------------------------------+---------------+----------------------------------------+
| Consideration paid by cash | | - |
+--------------------------------------------+---------------+----------------------------------------+
| Cash acquired | | 36,575 |
+--------------------------------------------+---------------+----------------------------------------+
| Net cash inflow on acquisition of | | 36,575 |
| subsidiary | | |
+--------------------------------------------+---------------+----------------------------------------+
Goodwill is attributable to the acquisition of subsidiary which is expected to
provide future economic benefits in excess of the normal return generated from
the acquired net identifiable assets.
15. Related parties transactions
For the purposes of these unaudited financial statements, parties are considered
to be related to the Group if the Group has the ability, directly or indirectly,
to control the party or exercise significant influence over the party in making
financial and operating decisions, or vice versa, or where the Group and the
party are subject to common control or common significant influence. Related
parties may be individuals or other entities.
15. Related parties transactions (Continued)
Compensation of directors and key management personnel
The remuneration of directors during the financial period was as follows:
+----------------------------------------------+------------+--+------------+
| | Group | | Group |
+----------------------------------------------+------------+--+------------+
| | Unaudited | | Audited |
+----------------------------------------------+------------+--+------------+
| | 28.2.2009 | | 29.2.2008 |
+----------------------------------------------+------------+--+------------+
| | US$ | | US$ |
+----------------------------------------------+------------+--+------------+
| | | | |
+----------------------------------------------+------------+--+------------+
| Remuneration | 60,446 | | 46,138 |
+----------------------------------------------+------------+--+------------+
| Post-employment benefits - CPF contribution | 3,893 | | 2,578 |
+----------------------------------------------+------------+--+------------+
| Short-term benefits | 3,073 | | 815 |
+----------------------------------------------+------------+--+------------+
| Consultancy fee paid | 60,000 | | - |
+----------------------------------------------+------------+--+------------+
| | 127,412 | | 49,531 |
+----------------------------------------------+------------+--+------------+
The remuneration of Directors is determined by the Remuneration Committee having
regard to the performance of individuals and market trends. The remuneration
disclosed above includes only the Directors as there is no personnel other than
Directors who are considered to be a member of key management of the Group.
16. Operating lease commitments
At the balance sheet date, the commitments in respect of non-cancellable
operating leases of office premises and equipment were as follows:
+----------------------------------------------+-----------+---+-----------+
| | Group | | Group |
+----------------------------------------------+-----------+---+-----------+
| | Unaudited | | Audited |
+----------------------------------------------+-----------+---+-----------+
| | 28.2.2009 | | 29.2.2008 |
+----------------------------------------------+-----------+---+-----------+
| | US$ | | US$ |
+----------------------------------------------+-----------+---+-----------+
| | | | |
+----------------------------------------------+-----------+---+-----------+
| Future minimum lease payments payable: | | | |
+----------------------------------------------+-----------+---+-----------+
| Within one financial year | 76,775 | | 117,274 |
+----------------------------------------------+-----------+---+-----------+
| In second to fifth financial year inclusive | 6,380 | | 87,955 |
+----------------------------------------------+-----------+---+-----------+
| | 83,155 | | 205,229 |
+----------------------------------------------+-----------+---+-----------+
The above operating lease commitments are based on existing rates. The lease
agreement provides for a periodic revision of such rates in the future.
The Group has an option to renew the lease for another 1 year after the expiry
of the current lease term.
17.Segment reporting
No segment reporting is presented as the Group is principally engaged in a
single business segment of dealing with household and industrial clean energy in
Singapore.
18. Comparative figures
The comparative figures for the 6 months ended 29 February 2008 have not been
audited.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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