COMPANY INFORMATION - MobilityOne · Dato’ Hussian @ Rizal bin A. Rahman ... AND BROKER London...

Company Information 2 Chairman’s Statement 3 Report of the Directors 5 Board of Directors 9 Report of the Independent Auditors 10 Consolidated Income Statement 12 Consolidated Statement of Comprehensive Income 13 Consolidated Statement of Changes in Equity 14 Consolidated Statement of Financial Position 16 Company Statement of Financial Position 18 Consolidated Statement of Cash Flows 19 Company Statement of Cash Flows 20 Notes to the Financial Statements 21

Notice of Annual General Meeting 66

Form of Proxy

2

DIRECTORS Dato’Dr.WanAzmibinAriffin(Non-ExecutiveChairman) Dato’[email protected](ChiefExecutiveOfficer) DerrickChiaKahWai(TechnicalDirector) SeahBoonChin(Non-ExecutiveDirector) Dato’ShamsirbinOmar(Non-ExecutiveDirector;deceasedon7.5.2013)

SECRETARY TMFChannelIslandsLimited 28-30TheParade St Helier Jersey JE1 1EQ Channel Islands

REGISTERED 28-30TheParadeOFFICE St Helier Jersey JE1 1EQ Channel Islands

BUSINESS 2-3,Incubator2ADDRESS TechnologyParkMalaysia BukitJalil,57000KualaLumpur Malaysia Tel:+60389963600

AUDITORS JeffreysHenryLLP Finsgate5-7CranwoodStreet LondonEC1V9EE United Kingdom

NOMINATED AllenbyCapitalLimitedADVISER 3 St. Helen’s PlaceAND BROKER LondonEC3A6AB United Kingdom

COMPANY INFORMATION

3

CHAIRMAN’S STATEMENT

INTRODUCTION

MobilityOneLimited'sorganisationstructureisdepictedbelow:

OPERATIONS REVIEW

TheDirectorsarepleasedtopresenttheauditedconsolidatedfinancialstatementsforMobilityOneLimitedfor the year ended 31 December 2012.

In2012,eventhoughtheGroupreporteda35.8%growthinrevenue,itrecordedalossmainlyduetohigheradministrationexpensesfromitsexistingoperationsinMalaysia,IndonesiaandCambodiaaswellasthecostsofsettingupanew95%-ownedsubsidiaryinthePhilippines,namelyMobilityOnePhilippinesInc.

Likepreviousyears,mostrevenuewasgeneratedfromtheGroup’sexistingmobilephoneprepaidairtimereloadbusinessviaitsbankingchannels(suchasmobilebanking, internetbankingandATMs)anditselectronicdatacaptureterminalbasethroughoutMalaysia.TheGroup’sinternationalremittanceservicesin Malaysia did not grow in 2012 at the expected rate and the number of outlets remains at 6.

ThebusinessesinCambodiaandIndonesiadidnotprovideasignificantcontributiontotheGroup’soverallrevenuein2012.Nevertheless,tocontinuetoexpandtheGroup’soverseasoperations,theGrouphasincorporatedanewsubsidiaryinthePhilippines.Thissubsidiarywillfocusonelectronicpaymentservicesand it has initiated several tests andpilotswith several financial institutions and telecommunicationscompanies in the Philippines.

RESULTS

Forthefinancialyearended31December2012,therevenueoftheGroupgrewby35.8%(2011revenue:£31.9million).ThisincreasewasmainlygeneratedbytheGroup’sexistingmobilephoneprepaidairtimereloadbusiness.However,theGrouprecordedanetlossof£0.27million(2011profitaftertax:£0.01million).Thisloss was due to higher administration expenses from its existing mobile phone prepaid airtime reload business andinternationalremittancebusinessinMalaysia,theexpensesincurredinCambodiaandIndonesia,andofthe set up costs of a newly incorporated subsidiary in the Philippines which has yet to generate any revenue.

4

Asat31December2012,theGrouphadcashandcashequivalentsof£1.13million(31December2012:cashandcashequivalentsof£1.15million).Asat31December212,thesecuredloansandborrowingswere£2.33million(31December2011:£3.01million).Duringtheyear,theCompanyraised£105,000fromasubscriptionfromDatukYahayabinMatGhani,anexistingshareholder,theproceedsofwhichwereusedforworkingcapitalpurposes.Inaddition,Dato’HussianA.Rahman(CEO)andLMS,acompanyinwhichDato’HussianA.Rahman(CEO)isadirectorandmajorshareholder,agreedtoconvertoutstandingloansanddirectorfeestotallingapproximately£340,000intonewequitywhichhasassistedinreducingthe Group’s borrowings.

CURRENT TRADING AND OUTLOOK

For2013,theDirectorsexpecttheGrouptodeliveranimprovedperformancefromitsexistingareasofexpertise,notablytheDirectorsexpect:

(i) themobilephoneprepaidairtimereloadsbusinesstocontinuetogrow; (ii) theinternationalremittancebusinesstocontributeahigherrevenuethroughtheopeningofnewoutlets, whichissubjecttothecentralbankofMalaysia’sapproval;and

(iii) amaidencontributionfromthePhilippinesmarketviaMobilityOnePhilippinesInc.

Notwithstanding that the Group has invested in research and development to develop and grow the existing businesses,theGrouphasnotbeenabletodeliversignificantlevelsofprofitabilityoverthelastfewyears.Assuch,theGroupisalsocurrentlyexploringotherbusinessareastodiversifytherevenuestreamandtoreduce the Group’s dependency on its existing businesses.

................................................... Dato’ Dr. Wan Azmi bin AriffinChairman

Date:26June2013

CHAIRMAN’S STATEMENT (CONTINUED)

5

TheDirectorspresenttheirreportwiththefinancialstatementsoftheCompanyandtheGroupfortheyearended 31 December 2012.

PRINCIPAL ACTIVITY

TheprincipalactivityoftheGroupintheyearunderreviewwasinthebusinessofprovidinge-commerceinfrastructure payment solutions and platforms.

KEY PERFORMANCE INDICATORS

Year ended Year ended 31.12.2012 31.12.2011 £ £

Revenue43,261,999 31,860,274Operating(loss)/profit (106,312) 179,651(Loss)/profitbeforetax (269,005) 28,802Net(loss)/profitfortheyear (270,789) 1,218

KEYS RISKS AND UNCERTANTIES

Operational risks

TheGroupisnotinsulatedfromgeneralbusinessriskaswellascertainrisksinherentintheindustryinwhichtheGroupoperates.Thismayincludetechnologicalchanges,unfavourablechangesinGovernmentandinternationalpolicies,theintroductionofnewandsuperiortechnologyorproductsandservicesbycompetitorsandchangesinthegeneraleconomic,businessandcreditconditions.

Dependency on Distributorships Agreements

TheGroupreliesonvarioustelecommunicationcompaniestoprovidethetelecommunicationproducts.Hencethe Group’s business may be materially and adversely affected if one or more of these telecommunication companiescutorreducedrasticallythesupplyoftheirproducts.TheGrouphasdistributorshipagreementswithtelecommunicationcompaniessuchasDiGiTelecommunicationsSdn.Bhd.,Celcom(M)BerhadandMaxisCommunicationBerhad,whicharesubjecttoperiodicrenewal.

Rapid technological changes/product changes in the e-commerce industry

Theabilitytokeeppacewithrapidtechnologicaldevelopmentinthee-commerceindustrywillaffecttheGroup’srevenuesandprofits.Thee-commerceindustryischaracterisedbyrapidtechnologicalchangesduetochangingmarkettrends,evolvingindustrystandards,newtechnologiesandemergingcompetition.Future success will be dependent upon the Group’s ability to enhance its existing technology solutions and introduce new products and services to respond to the constantly changing technological environment. Thetimelydevelopmentofnewandenhancedservicesorproductsisacomplexanduncertainprocess.

REPORT OF THE DIRECTORS For the year ended 31 December 2012

6

Demand of products and services

TheGroup’sfutureresultsdependontheoveralldemandforitsproductsandservices.Uncertaintyintheeconomic environment may cause some business to curtail or eliminate spending on payment technology. Inaddition,theGroupmayexperiencehesitancyonthepartofexistingandpotentialcustomerstocommitto continuing with its new services.

REVIEW OF BUSINESS

TheresultsfortheyearandfinancialpositionoftheCompanyandtheGroupareasshownintheChairman’sstatement. RESULTS AND DIVIDENDS

Theconsolidatedtotalcomprehensivelossfortheyearended31December2012is£337,898(2011:loss£77,877)whichhasbeentransferredtoreserves.Nodividendswillbedistributedfortheyearended31December 2012.

DIRECTORS

TheDirectorsduringtheyearunderreviewwere:

Dato’Dr.WanAzmibinAriffin(Non-ExecutiveChairman)Dato’[email protected](ChiefExecutiveOfficer)DerrickChiaKahWai(TechnicalDirector)SeahBoonChin(Non-ExecutiveDirector)Dato’ShamsirbinOmar(Non-ExecutiveDirector;deceasedon7.5.2013)

Dato’Dr.WanAzmibinAriffinandDato’Hussian@RizalbinA.Rahmanwhoareeligibleofferthemselvesforre-electionattheforthcomingAnnualGeneralMeeting.

ThebeneficialinterestsoftheDirectorsholdingofficeat31December2012intheordinarysharesoftheCompany,wereasfollows:

Ordinary 2.5p shares Dato’Dr.WanAzmibinAriffinDato’ Hussian @ Rizal bin A. RahmanDerrick Chia Kah WaiSeah Boon ChinDato’ShamsirbinOmar

TheDirectorsheldnoshareoptionsasat31December2012.Theoptionswhichwerepreviouslygrantedon5July2007atanexercisepriceof12.5pexpiredon4July2012.

Interest at 31.12.12

Nil40,385,724

NilNil

9,131,677

% of issued capital

Nil38.0

NilNil8.6

REPORT OF THE DIRECTORS (CONTINUED)

For the year ended 31 December 2012

7

SUBSTANTIAL SHAREHOLDERS

Asat14June2013,theCompanyhadbeennotifiedofthefollowingbeneficialinterestsin3%ormoreoftheissuedsharecapitalpursuanttoPartVIofArticle110oftheCompanies(Jersey)Law1991:

Ordinary 2.5p shares

Dato’ Hussian @ Rizal bin A. RahmanThornbeamLimitedDatuk Yahaya bin Mat Ghani Dato’ShamsirbinOmarPerbadanan Nasional Berhad

PUBLICATION OF ACCOUNTS ON COMPANY WEBSITE

FinancialstatementsarepublishedontheCompany’swebsite.ThemaintenanceandintegrityofthewebsiteistheresponsibilityoftheDirectors.TheDirectors’responsibilityalsoextendstothefinancialstatementscontained therein.

INDEMNITY OF OFFICERS

TheGroupdoesnothavetheinsurancecoveragainstlegalactionboughtagainstitsDirectorsandofficers. GROUP'S POLICY ON PAYMENT OF CREDITORS

It is the Group’s normal practice to make payments to suppliers in accordance with agreed terms provided that the supplier has performed in accordance with the relevant terms and conditions.

EMPLOYEE INVOLVEMENT

TheGroupplacesconsiderablevalueontheinvolvementoftheemployeesandhascontinuedtokeeptheminformedonmattersaffectingtheGroup.Thisisachievedthroughformalandinformalmeetings.

GOING CONCERN

ThesefinancialstatementshavebeenpreparedontheassumptionthattheGroupisagoingconcern.FurtherinformationisgiveninNote2ofthefinancialstatements.

Number of ordinary shares

40,385,72416,048,92213,500,0009,131,6774,690,000

% of issued capital

37.9915.1012.70

8.594.41



8

STATEMENT OF DIRECTORS' RESPONSIBILITIES

TheDirectorsareresponsibleforpreparingthefinancialstatements inaccordancewithapplicable lawand regulations.

CompanylawrequirestheDirectorstopreparefinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorshaveelectedtopreparethefinancialstatementsinaccordancewithInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnion.ThefinancialstatementsarerequiredbylawtogiveatrueandfairviewofthestateofaffairsoftheCompanyandtheGroupandoftheprofitorlossoftheGroupforthatperiod.Inpreparingthesefinancialstatements,theDirectorsarerequiredto:

- selectsuitableaccountingpoliciesandthenapplythemconsistently;- makejudgmentsandestimatesthatarereasonableandprudent;- preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethat theCompanywillcontinueinbusinessfortheforeseeablefuture;and- statethatthefinancialstatementscomplywithInternationalFinancialReportingStandards(IFRS)as adopted by the European Union.

TheDirectors are responsible for keepingproper accounting recordswhich disclosewith reasonableaccuracyatanytimethefinancialpositionoftheCompanyandtheGroupandtoenablethemtoensurethatthefinancialstatementscomplywithArticle110oftheCompanies(Jersey)Law1991.Theyarealsoresponsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

SofarastheDirectorsareaware,thereisnorelevantauditinformation(asdefinedbySection234ZAofArticle110oftheCompanies(Jersey)Law1991)ofwhichtheGroup'sauditorsareunaware,andeachDirector has taken all the steps that he ought to have taken as a Director in order to make himself aware ofanyrelevantauditinformationandtoestablishthattheGroup'sauditorsareawareofthatinformation.

AUDITORS

JeffreysHenryLLPhaveexpressedtheirwillingnesstocontinueinoffice.AresolutionproposingthatJeffreysHenryLLPbere-appointedwillbeputtotheforthcomingAnnualGeneralMeeting.

ON BEHALF OF THE BOARD:

................................................................Dato’ Hussian @ Rizal bin A. RahmanChiefExecutiveOfficer

Date:26June2013



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Dato’ Dr. Wan Azmi bin Ariffin (Non-Executive Chairman)

Dato’Dr.WanAzmibinAriffin,aMalaysianaged69,istheNon-ExecutiveChairmanoftheCompany.Hebeganhiscareerasateacherforsecondaryschoolsfrom1965to1977andlaterbecameauniversitylecturerfrom1979to1981.Sincethen,hehasbeenactiveintheMalaysianpolitics.HeobtainedhisBachelorDegree in Geography from Universiti Sains Malaysia and a Master’s Degree in Economic Development andaPhDinPoliticalEconomicsfromMcGillUniversity,Canada.

Dato’ Hussian @ Rizal bin A. Rahman (Chief Executive Officer)

Dato’[email protected],aMalaysianaged51,istheChiefExecutiveOfficeroftheGroup.HehasextensiveexperienceintheITandtelecommunicationsindustriesinMalaysiaandisresponsibleforthedevelopmentoftheGroup’soverallmanagement,particularlyinsettingtheGroup’sbusinessdirectionandstrategies.HeiscurrentlyaNon-ExecutiveDirectorofAsiaMediaGroupBerhadandTFPSolutionsBerhadwhicharelistedontheMainMarketandACEMarketofBursaMalaysiaSecuritiesBerhad(MalaysiaStockExchange)respectively.HeobtainedacertifiedMasterofBusinessAdministrationfromtheOxfordAssociationofManagement,England.

Derrick Chia Kah Wai (Technical Director)

DerrickChiaKahWai,aMalaysianaged42,istheTechnicalDirectoroftheGroup.Hebeganhiscareerasaprogrammerin1994,hethenjoinedGHLSystemsBerhadinJanuary1998asaSoftwareEngineerandwas promoted to Software Development Manager in December 1999. He obtained his Bachelor Degree in Commerce,majoringinManagementInformationSystemfromUniversityofBritishColumbia,Canada.HejoinedtheGroupinMay2005andisresponsiblefortheGroup’sR&Dteamwhichincludethearchitecturaldesign of its technology platform.

Seah Boon Chin (Non-Executive Director)

SeahBoonChin, aMalaysianaged41, has steppeddownas theCorporateFinanceDirector on15November2012andremainontheBoardasaNon-ExecutiveDirectoroftheCompany.HebeganhiscareerasaseniorofficerwithChungKhiawBank(Malaysia)Bhd.(nowUnitedOverseasBank(Malaysia)Berhad)from1995to1996.From1997toJanuary2007,heworkedintheCorporateFinanceDepartmentofestablishedfinancialinstitutionsinMalaysiaandSingaporeincludingCIMBInvestmentBankBerhad,AffinInvestmentBankBerhadandPublicInvestmentBankBerhad.HeiscurrentlytheHeadofCorporateFinancewithTASecuritiesHoldingsBerhadinMalaysiaandaNon-ExecutiveDirectorofAllAsiaAssetCapitalLimited,whichislistedonAIMoftheLondonStockExchange.HeobtainedhisBachelorDegreeinCommerce(Honours)withDistinctionfromMcMasterUniversity,Canada.

BOARD OF DIRECTORS

10

WehaveauditedthefinancialstatementsofMobilityOneLimitedfortheyearended31December2012whichcomprisetheConsolidatedIncomeStatement,ConsolidatedStatementofComprehensiveIncome,ConsolidatedStatementofChangesinEquity,ConsolidatedStatementofFinancialPosition,CompanyStatementofFinancialPosition,ConsolidatedStatementofCashFlows,CompanyStatementofCashFlowsandtherelatednotes.ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEuropeanUnionand,asregardstheparentcompanyfinancialstatements,asappliedinaccordancewiththeprovisionsoftheCompanies(Jersey)Law1991.

This report ismadesolely to theCompany'smembers,asabody, inaccordancewithArticle113AoftheCompanies(Jersey)Law1991.OurauditworkhasbeenundertakensothatwemightstatetotheCompany'smembersthosematterswearerequiredtostatetotheminanauditors'reportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany'smembersasabody,forourauditwork,forthisreport,orfortheopinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

AsexplainedmorefullyintheDirectors’ResponsibilitiesStatementsetoutonpages5,thedirectorsareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.OurresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).Thosestandardsrequireusto comply with the Auditing Practices Board’s Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

Anauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:whethertheaccountingpoliciesareappropriateto the group’s and the parent company’s circumstances and have been consistently applied and adequately disclosed;thereasonablenessofsignificantaccountingestimatesmadebythedirectors;andtheoverallpresentationofthefinancialstatements.

Inaddition,wereadallthefinancialandnon-financialinformationintheChairman’sStatement,CorporateGovernanceReportandDirectors’Reportto identifymaterial inconsistencieswiththeauditedfinancialstatements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

OPINION ON THE FINANCIAL STATEMENTS

Inouropinion:

- thefinancialstatementsgiveatrueandfairviewofthestateofaffairsoftheGroupasat31December2012andofthelossoftheGroupfortheyearthenended;

- thegroupfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadoptedby

theEuropeanUnion;and

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MOBILITYONE LIMITED

11

- theparentcompanyfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadopted by the European Union and as applied in accordance with the provisions of the Companies (Jersey)Law1991;and

- thefinancialstatementshavebeenpreparedinaccordancewiththerequirementoftheCompanies

(Jersey)Law1991.

OPINION ON OTHER MATTERS

InouropiniontheinformationgivenintheReportoftheDirectorsforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

WehavenothingtoreportinrespectofthefollowingmatterswhereCompanies(Jersey)Law1991requiresustoreporttoyouif,inouropinion:

- adequateaccountingrecordshavenotbeenkeptbytheParentCompany,orreturnsadequateforaudithavenotbeenreceivedfrombranchesnotvisitedbyus;or

- thefinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns;or- certaindisclosuresofDirectors'remunerationspecifiedbylawarenotmade;or- wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

Sanjay ParmarSenior Statutory AuditorForandonbehalfofJeffreysHenryLLP

Finsgate5-7CranwoodStreetLondonEC1V9EEUnited Kingdom

Date:26June2013

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MOBILITYONE LIMITED (CONTINUED)

12

CONSOLIDATED INCOME STATEMENTFor the year ended 31 December 2012

CONTINUING OPERATIONS

RevenueCost of sales

GROSS PROFIT

OtheroperatingincomeAdministration expensesOtheroperatingexpenses

OPERATING (LOSS)/PROFIT

Finance costs

PROFIT/(LOSS) BEFORE TAX

Tax

(LOSS)/PROFIT FOR THE YEAR

Attributableto:OwnersoftheparentNon-controllinginterest

EARNING PER SHARE

Basicearningspershare(pence)Dilutedearningspershare(pence)

2011£

31,860,274(29,464,977)

2,395,297

142,262(1,856,629)(501,279)

179,651

(150,849)

28,802

(27,584)

1,218

(1,341)2,5591,218

(0.001)(0.001)

2012£

43,261,999(40,499,071)

2,762,928

95,840(2,471,778)(493,302)

(106,312)

(162,693)

(269,005)

(1,784)

(270,789)

(259,650)(11,139)

(270,789)

(0.267)(0.267)

Note

6

7

8

10

Thenotesformpartofthesefinancialstatements

13

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012

(LOSS)/PROFIT FOR THE YEAR

OTHER COMPREHENSIVE LOSS:

Foreign currency translation

TOTAL COMPREHENSIVE LOSS

Totalcomprehensivelossattributableto:OwnersoftheparentNon-controllinginterests

2011£

1,218

(76,536)

(75,318)

(77,877)2,559

(75,318)

2012£

(270,789)

(78,248)

(349,037)

(337,898)(11,139)

(349,037)


14


As at 1 January 2011

Comprehensive (loss)/income

(Loss)/profitfortheyearForeign currency translationTotalcomprehensive(loss)/

income for the year

As at 31 December 2011

Share premium

£

782,234

--

-

782,234

Total£

3,160,714

(1,341)(76,536)

(77,877)

3,082,837

Total£

3,160,245

1,218(76,059)

(74,841)

3,085,404

Foreign currency

translation reserve

£

985,244

-(76,536)

(76,536)

908,708

Share capital

£

2,339,374

--

-

2,339,374

Retained earnings

£

(1,655,089)

(1,341)-

(1,341)

(1,656,430)

Minority Interest

£

(469)

2,559477

3,036

2,567

Reverseacquisition

reserve£

708,951

--

-

708,951

Non-Distributable Distributable

CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the year ended 31 December 2012

15

Share capital is the amount subscribed for shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of the respective shares net of share issue expenses.

ThereverseacquisitionreserverelatestotheadjustmentrequiredbyaccountingforthereverseacquisitioninaccordancewithIFRS3.

TheCompany’sassetsandliabilitiesstatedintheStatementofFinancialPositionweretranslatedintoPoundSterling(£)usingtheclosingrate as at the Statement of Financial Position date and the Income Statements were translated into £ using the average rate for that period. All resulting exchange differences are taken to the foreign currency translation reserve within equity.

Retained earnings represent the cumulative earnings of the Group attributable to equity shareholders.


As at 1 January 2012

Comprehensive lossLossfortheyearForeign currency translation

Totalcomprehensivelossforthe year

Transactions with ownersIssuance of sharesAcquisition of subsidiary

company

Totaltransactionswithowners for the year

At 31 December 2012

Share premium

£

782,234

--

-

127,238

-

127,238

909,472

Total£

3,082,837

(259,650)(78,248)

(337,898)

445,334

-

445,334

3,190,273

Total£

3,085,404

(270,789)(78,435)

(349,224)

445,334

6,402

451,736

3,187,916

Foreign currency

translation reserve

£

908,708

-(78,248)

(78,248)

-

-

-

830,460

Share capital

£

2,339,374

--

-

318,096

-

318,096

2,657,470

Retained earnings

£

(1,656,430)

(259,650)-

(259,650)

-

-

-

(1,916,080)

Minority Interest

£

2,567

(11,139)(187)

(11,326)

-

6,402

6,402

(2,357)

Reverseacquisition

reserve£

708,951

--

-

-

-

-

708,951

Non-Distributable Distributable

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)


16


CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 31 December 2012

ASSETSNon-current assetsIntangible assetsProperty,plantandequipment

Current assetsInventoriesTradeandotherreceivablesCash and cash equivalentsTaxrecoverable

LIABILITIESCurrent liabilitiesTradeandotherpayablesAmount due to DirectorsLoansandborrowings–securedTaxpayable

NET CURRENT ASSETS/(LIABILITIES)

Totalassetslesscurrentliabilities

Non-current liabilityLoansandborrowings–secured

NET ASSETS

2011£

2,641,303860,429

3,501,732

1,021,5791,641,3521,154,665

11,1253,828,721

910,518217,097

3,009,04326,517

4,163,175

(334,454)

3,167,278

81,874

3,085,404

2012£

2,196,305682,808

2,879,113

879,2801,267,3551,130,315

13,4013,290,351

495,26569,731

2,328,26623,903

2,917,165

373,186

3,252,299

64,383

3,187,916

Note

1112

141516

171819

19

17


CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

As at 31 December 2012

SHAREHOLDERS’ EQUITY

Equity attributable to owners of the parent:Called up share capitalShare premiumReverse acquisition reserveForeign currency translation reserveRetained earnings

Shareholders’ equityNon-controllinginterests

TOTAL EQUITY

2011£

2,339,374782,234708,951908,708

(1,656,430)

3,082,8372,567

3,085,404

2012£

2,657,470909,472708,951830,460

(1,916,080)

3,190,273(2,357)

3,187,916

Note

2122232829

18


COMPANY STATEMENT OF FINANCIAL POSITIONAs at 31 December 2011

ASSETSNon-current assetInvestment in subsidiary companies

Current assetsTradeandotherreceivablesCash and cash equivalents

Current liabilitiesTradeandotherpayablesAmount due to Directors

NET CURRENT ASSETS

NET ASSETS

SHAREHOLDERS’ EQUITY

Equity attributable to owners of the parent:Called up share capitalShare premiumRetained earnings

TOTAL EQUITY

2011£

2,040,930

985,5432,073

987,616

32,852153,853186,705

800,911

2,841,841

2,339,374782,234(279,767)

2,841,841

2012£

2,040,930

1,104,6222,067

1,106,689

38,73638,25476,990

1,029,699

3,070,629

2,657,470909,472(496,313)

3,070,629

Note

13

1516

1718

212222

19


CONSOLIDATED STATEMENT OF CASH FLOWSFor the year ended 31 December 2012

Cash flow from operating activitiesCashgeneratedfrom/(depletedin)operations Interest paid Interest received Taxpaid

Netcashgeneratedfrom/(usedin)operatingactivities

Cash flow from investing activities Purchaseofproperty,plantandequipment Proceeds from disposal of short term investments Proceedsfromdisposalofproperty,plantandequipment Additions to development costs

Net cash used in investing activities

Cash flows from financing activities (Repayment)/drawdownofshorttermborrowings Repaymentoffinanceleasepayables Proceeds from issuance of shares

Netcash(usedin)/generatedfromfinancingactivities

Increase/(decrease) in cash and cash equivalents

Effect of foreign exchange rate changes

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

2011£

(28,695)(150,849)18,816(8,947)

(169,675)

(56,716)1,7335,382

(351,997)

(401,598)

372,703(14,948)

-

357,755

(213,518)

24,373

732,436

543,291

2012£

763,963(162,693)26,574(4,276)

623,568

(13,554)---

(13,554)

(292,559)(15,821)105,000

(203,380)

406,634

(65,610)

543,291

884,315

Note

24

12

11

16

20


COMPANY STATEMENT OF CASH FLOWSFor the year ended 31 December 2012

Cash flow from operating activitiesCash depleted in operations

Cash flow from financing activitiesProceeds from issuance of shares

Decrease in cash and cash equivalents

Effect of foreign exchange rate changes

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

2011£

-

-

-

(9)

2,082

2,073

2012£

(105,000)

105,000

-

(6)

2,073

2,067

Note

24

16

21

1. GENERAL INFORMATION

TheprincipalactivityoftheCompanyisinvestmentholding.TheprincipalactivitiesofthesubsidiarycompaniesaresetoutinNote13tothefinancialstatements.Therewerenosignificantchangesinthenatureoftheseactivitiesduringtheyear.

TheCompanyis incorporatedinJersey,TheChannelIslandsundertheCompanies(Jersey)Law1991andis listedonAIM.Theregisteredofficeislocatedat28-30TheParade,StHelier,JerseyJE11EQ,ChannelIslands.Theconsolidatedfinancialstatementsfortheyearended31December2012comprisetheresultsoftheCompanyanditssubsidiarycompaniesundertakings.TheCompany’ssharesaretradedonAIMoftheLondonStockExchange.

MobilityOneLimitedistheholdingcompanyofanestablishedgroupofcompanies(“Group”)basedinMalaysiawhichisinthebusinessofprovidinge-commerceinfrastructurepaymentsolutionsandplatformsthroughtheirproprietarytechnologysolutions,whicharemarketedunderthebrandsMoCSandABOSSE.

TheGrouphasdevelopedanend-to-ende-commercesolutionwhichconnectsvariousserviceprovidersacrossseveralindustriessuchasbanking,telecommunicationandtransportationthroughmultipledistributiondevicessuchasEDCterminals,shortmessagingservices,AutomatedTellerMachineandInternetbanking.

TheGroup’stechnologyplatformisflexible,scalableandhasbeendesignedtofacilitatecash,debitcardandcreditcardtransactions(according to thedevice) frommultipledeviceswhilecontrollingandmonitoring thedistributionofdifferentproducts and services.

2. ACCOUNTING POLICIES

Basis of preparation ThesefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSsandIFRICinterpretations)issuedbytheInternationalAccountingStandardsBoard(IASB),asadoptedbytheEuropeanUnion,andwiththosepartsof theCompanies(Jersey)Law1991applicabletocompaniespreparingtheirfinancialstatementsunderIFRS.Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention.

Going Concern

TheGroup’sbusinessactivities,togetherwiththefactorslikelytoaffectitsfuturedevelopment,performanceandposition,aresetoutinChairman’sstatementonpage2.ThefinancialpositionoftheGroup,itscashflows,liquiditypositionandborrowingfacilitiesaredescribedinthefinancialstatementsandassociatednotes.Inaddition,Note3tothefinancialstatementsincludestheGroup’sobjectives,policiesandprocessesformanagingitscapital;itsfinancialriskmanagementobjectives;detailsofitsfinancialinstrumentsandhedgingactivities;anditsexposurestocreditriskandliquidityrisk.

InordertoassessthegoingconcernoftheGroup,theDirectorshavepreparedcashflowforecastsforcompanieswithintheGroup.ThesecashflowforecastsshowtheGroupexpectanincreaseinrevenueandwillhavesufficientheadroomoveravailablebankingfacilities.TheGrouphasobtainedbankingfacilitiessufficienttofacilitatethegrowthforecast infutureperiods. No matters have been drawn to the Directors’ attention to suggest that future renewals may not be forthcoming on acceptable terms.

Inaddition,ashareholderhasalsoundertakentoprovidesupporttoenablethegrouptomeetitsdebtsasandwhentheyfall due.

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 December 2012

22

2. ACCOUNTING POLICIES (Continued)

Going Concern (continued)

Aftermakingenquiries,theDirectorshaveareasonableexpectationthattheGrouphasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Accordingly,theycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.

Thefinancialstatementdoesnotincludeanyadjustmentsthatwouldresultiftheforecastwerenotachievedandshareholdersupport was withdrawn.

Estimation uncertainty and critical judgements

Thesignificantareasofestimationuncertaintyandcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountrecognisedinthefinancialstatementsareasfollows:

(i) Acquisitionofsubsidiarycompanies

Intangible assets acquired have been accounted for in accordance with IFRS 3 ‘Business Combinations’ and IAS 38 ‘IntangibleAssets’.Thekeyassumptionsaretheidentifiableintangibleassetsacquired,forecastfuturecashflowsandthediscountrate.ThecarryingamountsoftheGroup’sintangibleassetsasat31December2012aredisclosedinNote11tothefinancialstatements.

(ii) Depreciationofproperty,plantandequipment

Thecostsofproperty,plantandequipmentoftheGrouparedepreciatedonastraight-linebasisovertheusefullivesoftheassets.Managementestimatestheusefullivesoftheproperty,plantandequipmenttobewithin3to10years.Thesearecommonlifeexpectanciesappliedintheindustry.Changesintheexpectedlevelofusageandtechnologicaldevelopmentscouldimpacttheeconomicusefullivesandtheresidualvaluesoftheseassets,thereforefuturedepreciationchargescouldberevised.ThecarryingamountsoftheGroup’sproperty,plantandequipmentasat31December2012aredisclosedinNote12tothefinancialstatements.

(iii) Amortisationofintangibleassets

Software is amortised over its estimated useful life. Management estimated the useful life of this asset to be within 10 years. Changes in the expected level of usage and technological development could impact the economic useful life therefore future amortisation could be revised.

TheGroupdetermineswhethergoodwillisimpairedatleastonanannualbasis.Thisrequiresanestimationofthevalue-in-useofthecashgeneratingunits(“CGU”)towhichgoodwillisallocated.Estimatingavalue-in-useamountrequiresmanagementtomakeanestimationoftheexpectedfuturecashflowsfromtheCGUandalsotochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.

Theresearchanddevelopmentcostsareamortisedonastraight-linebasisoverthelifespanofthedevelopedassets.Management estimated the useful life of these assets to be within 5 years. Changes in the technological developments couldimpacttheeconomicusefullifeandtheresidualvaluesoftheseassets,thereforefutureamortisationchargescould be revised.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)


23


Estimation uncertainty and critical judgements (continued)

(iii) Amortisationofintangibleassets(continued)

ThecarryingamountsoftheGroup’sintangibleassetsasat31December2012aredisclosedinNote11tothefinancialstatements.

However,iftheprojectedsalesdonotmaterialisethereisariskthatthevalueoftheintangibleassetsshownabovewould be impaired.

(iv) Impairmentofgoodwillonconsolidation

TheGroup'scashflowprojectionsincludeestimatesofsales.However,iftheprojectedsalesdonotmaterialisethereis a risk that the value of goodwill would be impaired.

TheDirectorshavecarriedoutadetailedimpairmentreviewinrespectofgoodwill.TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired,byconsideringthenetpresentvalueofdiscountedcashflowsforecastswhichhavebeendiscountedat8.5%.ThecashflowprojectionsarebasedontheassumptionthattheGroupcanrealiseprojectedsales.Aprudentapproachhasbeenappliedwithnoresidualvaluebeingfactored.Attheperiodend,basedontheseassumptionstherewasnoindicationofimpairmentofthevalueofgoodwillorofdevelopment costs.

ThecarryingamountoftheGroup’sgoodwillonconsolidationasat31December2012isdisclosedintheNote11tothefinancialstatements.

(v) Incometaxes

TheGrouphasexposuretoincometaxesinnumerousjurisdictions.Therearecertaintransactionsandcomputationforwhich theultimate taxdetermination isuncertainduring theordinarycourseofbusiness.Significant judgementis involved especially in determining tax base allowances and deductibility of certain expenses in determining the Group-wideprovisionforincometaxes.TheGrouprecognisesliabilitiesforexpectedtaxissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuch determination is made.

(vi) Contingentliabilities

Whereitisnotprobablethatanoutflowofeconomicbenefitswillberequired,ortheamountcannotbeestimatedreliably,theobligationisdisclosedasacontingentliability,unlesstheprobabilityofoutflowofeconomicbenefitsisremote.Possibleobligations,whoseexistencewillonlybeconfirmedbytheoccurrenceornon-occurrenceofoneormorefutureeventsarealsodisclosedascontingentliabilitiesunlesstheprobabilityofoutflowofeconomicbenefitsisremote.

TheDirectorsareoftheopinionthatnoprovisionisrequiredinrespectofthecontingentliabilitiesasdisclosedinNote27asitisnotprobablethatfuturesacrificeofeconomicbenefitswillberequiredortheamountisnotcapableofreliablemeasurement.



24


IFRS AND IAS UPDATE FOR 31 DECEMBER 2012 ACCOUNTS

Changes in accounting policies and disclosures

TheGrouphasadoptedthefollowingnewandamendedIFRSandIFRICinterpretationsasof1January2012:

• IFRS7(amendment)“FinancialInstruments:Disclosures”–additionaldisclosuresretransfersoffinancialassets,effective forreportingperiodsbeginningafter1July2011;and

TheimpactofadoptingtheaboveamendmentshadnomaterialimpactonthefinancialstatementsoftheGroup.

Standards, interpretations and amendments to published standards that are not yet effective

Thefollowingstandards,amendmentsandinterpretationsapplicabletotheGroupareinissuebutarenotyeteffectiveand havenotbeenearlyadoptedinthesefinancialstatements.Theymayresultinconsequentialchangestotheaccounting policiesandothernotedisclosures.Wedonotexpecttheimpactofsuchchangesonthefinancialstatementstobematerial. Theseareoutlinedinthetablebelow:



Reference

Amendments to IAS34,IAS32,IAS16,IAS1,IFRS 1

Amendments to IFRS7

IFRS 9

IFRS 10

Title

Amendments resulting from Annual Improvements2009-2011 Cycle

Amendments related to the offsetting of assets and liabilities

Financial Instruments

Consolidated Financial Statements

Summary

Amendments resulting from Annual Improvements2009-2011 Cycle

Guidance on offsetting offinancialassetsandfinancialliabilities

Revised standard for accountingforfinancialinstruments

ReplacesIAS27section that addressed accounting for consolidatedfinancialstatements. Establishes a single control model applicable to all entities

Application date of standard

Annual periods beginning on or after 1 January 2013

Annual periods beginning on or after 1 January 2013

Periods commencing on or after 1 January 2015


Application date of Group

1 January 2013

1 January 2013

1 January 2015

1 January 2013

25


Basis of consolidation

TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandentitiescontrolledbytheCompany(itssubsidiarycompanies)madeupto31Decembereachyear.ControlisachievedwheretheCompanyhasthepowertogovernthefinancialandoperatingpoliciesofaninvesteeentitysoastoobtainbenefitsfromitsactivities.

Transactions,balancesandunrealisedgainsontransactionsbetweenGroupcompaniesareeliminated.Unrealisedlossesare also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of its subsidiary companieshavebeenchanged(wherenecessary)toensureconsistencywiththepoliciesadoptedbytheGroup.

(i) Subsidiarycompanies

SubsidiarycompaniesareentitiesoverwhichtheGrouphastheabilitytocontrolthefinancialandoperatingpoliciessoastoobtainbenefitsfromtheiractivities.Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableor convertible are considered when assessing whether the Group has such power over another entity.

IntheCompany’sseparatefinancialstatements,investmentsinsubsidiarycompaniesarestatedatcostlessimpairmentlosses.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedinprofitorloss.



Reference

IFRS 12

IFRS 13

Amendments to IAS 1

Amendments to IAS 19

IAS27(revised)

Title

Disclosure of Interests in OtherEntities

FairValueMeasurement

Presentation of Financial Statements

EmployeeBenefits

Separate Financial Statements

Summary

Increases disclosure requirements in relation to an entity’s interestsinsubsidiaries,jointarrangements,associates and structured entities

Guidance on how to measure fair value when fair value is required or permitted

Presentation of items within other comprehensive income

Revised standard for accounting for employee benefits

Revised standard following issuance of IFRS 10 and IFRS 12

Application date of standard



Periods commencing on or after 1 July 2012



Application date of Group

1 January 2013

1 January 2013

1 January 2013

1 January 2013

1 January 2013

26


Basis of consolidation (continued) (ii) Basisofconsolidation

On22June2007MobilityOneLimitedacquiredtheentireissuedsharecapitalofMobilityOneSdn.Bhd.bywayofashareforshareexchange,underIFRSthistransactionmeetsthecriteriaofaReverseAcquisition.Theconsolidatedaccountshave therefore been presented under the Reverse Acquisition Accounting principles of IFRS 3 and show comparatives forMobilityOneSdn.Bhd..Forfinancialreportingpurposes,MobilityOneSdn.Bhd.(thelegalsubsidiarycompany)istheacquirerandMobilityOneLimited(thelegalparentcompany)istheacquiree.

NogoodwillhasbeenrecordedandthedifferencebetweentheparentCompany’scostofinvestmentandMobilityOneSdn. Bhd.’s share capital and share premium is presented as a reverse acquisition reserve within equity on consolidation.

TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandallentitiescontrolledbyitaftereliminatinginternaltransactions.ControlisachievedwheretheGrouphasthepowertogovernthefinancialandoperatingpoliciesofaGroupundertakingsoastoobtaineconomicbenefitsfromitsactivities.Undertakings’resultsareadjusted,whereappropriate,toconformtoGroupaccountingpolicies.

Subsidiarycompaniesareconsolidatedfromthedateofacquisition,beingthedateonwhichtheGroupobtainscontrol,andcontinuetobeconsolidateduntilthedatethatsuchcontrolceases.Inpreparingtheconsolidatedfinancialstatements,intra-groupbalances,transactionsandunrealisedgainsorlossesareeliminatedinfull.Uniformaccountingpoliciesareadoptedintheconsolidatedfinancialstatementsforliketransactionsandeventsinsimilarcircumstances.

Thesharecapitalintheconsolidatedstatementofchangesinequityforboththecurrentandcomparativeperiodusesahistoric exchange rate to determine the equity value.

AspermittedbyandinaccordancewithArticle110oftheCompanies(Jersey)Law1991,aseparateincomestatementofMobilityOneLimited,isnotpresented.

Revenue recognition

RevenueisrecognisedwhenitisprobablethateconomicbenefitsassociatedwiththetransactionwillflowtotheGroupandthe amount of the revenue can be measured reliably.

(i) Revenuefromtradingactivities

RevenueinrespectofusingtheGroup’se-Channelplatformarisesfromthesalesofprepaidcredit,salescommissions received and fees per transaction charged to customers. Revenue for sales of prepaid credit is deferred until such time as the products and services are delivered to end users. Sales commissions and transaction fees are received from various product and services providers and are recognised when the services are rendered and transactions are completed.



27


Basis of consolidation (continued)

(i) Revenuefromtradingactivities(continued)

Revenuefromsolutionsalesandconsultancycomprisesalesofsoftwaresolutions,hardwareequipment,consultancy feesandmaintenanceand support services. For sales of hardwareequipment, revenue is recognisedwhen the significantrisksassociatedwiththeequipmentaretransferredtocustomersortheexpiryoftherightofreturn.Forall otherrelatedsales,revenueisrecognisedupondeliverytocustomersandovertheperiodinwhichservicesareexpected to be provided to customers.

Revenue from remittance comprises transaction service fees charged to customers/senders.Transaction feesare received from senders and are recognised when the services are rendered and transactions are completed.

(ii) Interestincome

Interest income is recognised on a time proportion basis that takes into account the effective yield on the asset.

(iii) Rentalincome

Rental income is recognised on an accrual basis.

Employee benefits

(i) Shorttermemployeebenefits

Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasanexpenseintheperiodinwhichtheassociated services are rendered by employees of the Group. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensationabsences.Shorttermnon-accumulatingcompensatedabsencessuchassickandmedical leavearerecognised when the absences occur.

Theexpectedcostofaccumulatingcompensatedabsencesismeasuredastheadditionalamountexpectedtobepaidas a result of the unused entitlement that has accumulated at the Statement of Financial Position date.

(ii) Definedcontributionplans

Asrequiredbylaw,companiesinMalaysiamakecontributionstothestatepensionscheme,theEmployeesProvidentFund(“EPF”).Suchcontributionsarerecognisedasanexpenseintheincomestatementintheperiodtowhichtheyrelate.Theothersubsidiarycompaniesalsomakecontributiontotheirrespectivecountries’statutorypensionschemes.

Finance leases

Assetsfinancedbyleasingarrangements,whichgiverightsapproximatingtoownership,aretreatedasiftheyhadbeenpurchased outright and are capitalised and depreciated over the shorter of the estimated useful life of the assets and the periodoftheleases.Thecapitalelementoffuturerentalsistreatedasaliabilityandtheinterestelementischargedagainstprofitsinproportiontothebalancesoutstanding.Therentalcostsofallotherleasedassetsarechargedagainstprofitsonastraight-linebasisovertheleaseterm.



28


Operating leases

Leases inwhichasignificantportionof therisksandrewardsofownershipareretainedby the lessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofincentivesreceivedfromthelessor)arechargedtotheincome statement.

Functional currency translation

(i) Functionalandpresentationcurrency

ItemsincludedinthefinancialstatementsofeachoftheGroup’sentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(thefunctionalcurrency).ThefunctionalcurrencyoftheGroupisRinggitMalaysia(RM).TheconsolidatedfinancialstatementsarepresentedinPoundSterling(£),whichistheCompany’spresentational currency as this is the currency used in the country in which the entity is listed.

AssetsandliabilitiesaretranslatedintoPoundSterling(£)atforeignexchangeratesrulingattheStatementofFinancialPositiondate.ResultsandcashflowsaretranslatedintoPoundSterling(£)usingaverageratesofexchangefortheperiod.

(ii) Transactionsandbalances

Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from thetranslationatyear-endexchangeratesofmonetaryassetsand liabilitiesdenominated in foreigncurrenciesarerecognised in the income statement.

Thefinancialinformationsetoutbelowhasbeentranslatedatthefollowingrates:

Exchange rate (RM: £) At Statement of Financial Average for Position date year Year ended 31 December 2012 4.94 4.91 Year ended 31 December 2011 4.90 4.91



29


Taxation

Taxationontheincomestatementforthefinancialperiodcomprisescurrentanddeferredtax.Currenttaxistheexpectedamountoftaxespayableinrespectofthetaxableprofitforthefinancialperiodandismeasuredusingthetaxratesthathavebeen enacted at the Statement of Financial Position date.

Deferred tax is recognised on the liability method for all temporary differences between the carrying amount of an asset or liability in the Statement of Financial Position and its tax base at the Statement of Financial Position date. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhich thedeductible temporarydifferences,unused tax lossesandunused taxcreditscanbeutilised. Deferred tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial recognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realisedortheliabilityissettled,basedonthetaxratesthathavebeenenactedorsubstantivelyenactedbytheStatementofFinancialPositiondate.ThecarryingamountofadeferredtaxassetisreviewedateachStatementofFinancialPositiondateandisreducedtotheextentthatitbecomesprobablethatsufficientfuturetaxableprofitwillbeavailable.

Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity, inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillornegativegoodwill.

Intangible assets

(i) Researchanddevelopmentcosts

All research costs are recognised in the income statement as incurred.

ExpenditureincurredonprojectstodevelopnewproductsiscapitalisedanddeferredonlywhentheGroupcandemonstratethe technical feasibilityofcompleting the intangibleassetso that itwillbeavailable foruseorsale, its intention tocompleteanditsabilitytouseorselltheasset,howtheassetwillgeneratefutureeconomicbenefits,theavailabilityofresourcestocompletetheprojectandtheabilitytomeasurereliablytheexpenditureduringthedevelopment.Productdevelopment expenditures which do not meet these criteria are expensed when incurred.

Developmentcosts,consideredtohavefiniteusefullives,arestatedatcostlessanyimpairmentlossesandareamortisedthroughotheroperatingexpensesintheincomestatementusingthestraight-linebasisoverthecommerciallivesoftheunderlyingproductsnotexceedingfiveyears.Impairmentisassessedwheneverthereisanindicationofimpairmentand the amortisation period and method are also reviewed at least at each Statement of Financial Position date.

(ii) Goodwillonconsolidation

Goodwillacquiredinabusinesscombinationisinitiallymeasuredatcost,representingtheexcessofthepurchasepriceovertheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilities.



30


Intangible assets (continued)

(ii) Goodwillonconsolidation(continued)

Following the initial recognition,goodwill ismeasuredatcost lessaccumulated impairment losses.Goodwill isnotamortisedbutinstead,itisreviewedforimpairmentannuallyormorefrequentwhenthereisobjectiveevidencethatthecarryingvaluemaybeimpaired,inaccordancewiththeaccountingpolicydisclosedinimpairmentofassets.

Gains or losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

(iii) Software

Softwarewhichformsanintegralpartoftherelatedhardwareiscapitalisedwiththathardwareandincludedwithinproperty,plant and equipment. Software which are not an integral part of the related hardware are capitalised as intangible assets.

Acquired computer software licenses are capitalised on the basis of the costs incurred to acquired and bring to use the specificsoftware.Thesecostsareamortisedovertheirestimatedusefullifeof10years.

Impairment of assets

Thecarryingamountsofassetsarereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.

Ifanysuchindicationexiststhentheasset’srecoverableamountisestimated.Forgoodwillthathasanindefiniteusefullife, recoverableamountisestimatedateachreportingdateormorefrequentlywhenindicationsofimpairmentareidentified.

Animpairment lossisrecognisedif thecarryingamountofanassetor itscash-generatingunitexceedsitsrecoverable amountunlesstheassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossisrecogniseddirectlyagainst any revaluation surplus for the asset to the extent that the impairment loss does not exceed the amount in the revaluation surplusforthatsameasset.Acash-generatingunitisthesmallestidentifiableassetgroupthatgeneratescashflowsthat are largely independent from other assets and groups. Impairment losses are recognised in the income statement in the periodinwhichitarises.Impairmentlossesrecognisedinrespectofcash-generatingunitsareallocatedfirsttoreducethe carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (groupofunits)onaproratabasis.

Therecoverableamountofanassetorcash-generatingunitisthegreaterofitsvalueinuseanditsfairvaluelesscoststo sell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscount ratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.

Impairment loss on goodwill is not reversed in a subsequent period. An impairment loss for an asset other than goodwill is reversedif,andonlyif,therehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethe last impairment losswas recognised.The carryingamount of anasset other thangoodwill is increased to its revised recoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(net ofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Areversalofimpairment lossforanassetotherthangoodwillisrecognisedintheincomestatementunlesstheassetiscarriedatrevaluedamount, inwhichcase,suchreversalistreatedasarevaluationincrease.



31

2. ACCOUNTING POLICIES (Continued) Property, plant and equipment (continued)

(i) Recognitionandmeasurement

Property,plantandequipmentarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses.

Cost includesexpendituresthataredirectlyattributable to theacquisitionof theasset.Thecostofself-constructedassets includes thecostofmaterialsanddirect labour,anyothercostsdirectlyattributable tobringing theasset toworkingconditionforitsintendeduse,andthecostsofdismantlingandremovingtheitemsandrestoringthesiteonwhich they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

Thecostofproperty,plantandequipmentrecognisedasaresultofabusinesscombinationisbasedonfairvalueatacquisitiondate.Thefairvalueofpropertyistheestimatedamountforwhichapropertycouldbeexchangedonthedateof valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein thepartieshadeachactedknowledgeably,prudentlyandwithoutcompulsion.Thefairvalueofotheritemsofplantandequipment is based on the quoted market prices for similar items.

Whensignificantpartsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitems(majorcomponents)ofproperty,plantandequipment.

(ii) Subsequentcosts

Thecostofreplacingpartofanitemofproperty,plantandequipmentisrecognisedinthecarryingamountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthepartwillflowtotheGroupanditscostcanbemeasuredreliably.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedintheincomestatement as incurred.

(iii)Depreciation

Depreciationisrecognisedintheincomestatementonastraight-linebasisovertheestimatedusefullivesofproperty,plantandequipment.Leasedassetsaredepreciatedovertheshorteroftheleasetermandtheirusefullives.Property,plant and equipment under construction are not depreciated until the assets are ready for their intended use.

Theestimatedusefullivesforthecurrentandcomparativeperiodsareasfollows:

Motor vehicles 5 yearsElectronic Data Capture equipment 10 yearsComputer equipment 3 to 5 yearsComputer software 10 yearsFurnitureandfittings 10yearsOfficeequipment 10yearsRenovation 10 years

Thedepreciableamountisdeterminedafterdeductingtheresidualvalue.



32

2. ACCOUNTING POLICIES (Continued) Property, plant and equipment (continued)

(iii)Depreciation(continued)

Depreciationmethods,usefullivesandresidualvaluesarereassessedateachfinancialperiodend.

Upondisposalofanasset,thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetsischargedorcreditedtotheincomestatement.Ondisposalofarevaluedasset,theattributablerevaluationsurplusremaining in the revaluation reserve is transferred to the distribution reserve.

Investments

Investments in subsidiary companies are stated at cost less any provision for impairment.

Inventories

Inventoriesarevaluedatthelowerofcostandnetrealisablevalueandaredeterminedonthefirst-in-first-outmethod,aftermaking due allowance for obsolete and slow moving items. Net realisable value is based on estimated selling price in the ordinary course of business less the costs of completion and selling expenses.

Trade and other receivables

Tradeandotherreceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredattheircostwhenthecontractualrighttoreceivecashorotherfinancialassetsfromanotherentityisestablished.

AprovisionfordoubtfuldebtsismadewhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisationanddefaultordelinquencyinpaymentsareconsideredindicatorsthatatrade and other receivables are impaired

Cash and cash equivalents

Cashandcashequivalentsincludecashinhand,depositsheldatcallwithbanks,othershort-termhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlesswhichhaveaninsignificantriskofchangesinvalueandbankoverdrafts.ForthepurposeofStatementofCashFlows,cashandcashequivalentsarepresentednetofbankoverdrafts.

Trade and other payables

Tradeandotherpayablesarerecognisedinitiallyatfairvalueoftheconsiderationtobepaidinthefutureforgoodsandservices received.



33


Borrowing costs

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets,whichareassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,arecapitalisedaspartofthecostofthoseassets,untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.

Whentheborrowingsaremadespecificallyforthepurposeofobtainingaqualifyingasset,theamountofborrowingcostseligible for capitalisation is the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of funds drawndown from those borrowings. Whentheborrowingsaremadegenerally,andusedforthepurposeofobtainingaqualifyingasset,theborrowingcostseligible for capitalisation are determined by applying a capitalisation rate which is weighted on the borrowing costs applicable totheGroup’sborrowingsthatareoutstandingduringthefinancialperiod,otherthanborrowingsmadespecificallyforthepurpose of acquiring another qualifying asset.

Borrowingcostswhicharenoteligibleforcapitalisationarerecognisedasanexpenseintheprofitorlossintheperiodinwhich they are incurred.

Equity instruments

InstrumentsthatevidencearesidualinterestintheassetsoftheGroupafterdeductingallofitsliabilitiesareclassifiedasequity instruments. Issued equity instruments are recorded at proceeds received net of direct issue costs.

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofnewsharesoroptionsareshowninequityasadeduction,netofvalueaddedtax,fromtheproceeds.

Financial instruments

FinancialinstrumentscarriedontheStatementofFinancialPositionincludecashandbankbalances,deposits,investments,receivables,payablesandborrowings.FinancialinstrumentsarerecognisedintheStatementofFinancialPositionwhenthe Group has become a party to the contractual provisions of the instrument.

Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement.Interest,dividendsandgainsandlossesrelatingtoafinancialinstrumentclassifiedasaliability,arereportedasanexpenseor income.Distributions toholdersoffinancial instrumentsclassifiedasequityarechargeddirectly toequity.Financialinstruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.

TheparticularrecognitionmethodadoptedforfinancialinstrumentsrecognisedontheStatementofFinancialPositionisdisclosed in the individual accounting policy statements associated with each item.

Share based payments Charges for employees services received in exchange for share based payments have been made for all options granted

inaccordancewithIFRS2“ShareBasedPayments”optionsgrantedundertheGroup’semployeeshareschemeareequitysettled.ThefairvalueofsuchoptionshasbeencalculatedusingaBlack-scholesmodel,baseduponpubliclyavailablemarketdata,andischargedtotheprofitorlossoverthevestingperiod.



34

3. FINANCIAL INSTRUMENTS

(a) Financial risk management objectives and policies

TheGroupandtheCompany’sfinancialriskmanagementpolicyistoensurethatadequatefinancialresourcesareavailableforthedevelopmentoftheGroupandoftheCompany’soperationswhilstmanagingitsfinancialrisks,includinginterestraterisk,creditrisk,foreigncurrencyexchangerisk,liquidityandcashflowriskandcapitalrisk.TheGroupandtheCompanyoperateswithinclearlydefinedguidelinesthatareapprovedbytheBoardandtheGroup’spolicyisnotto engage in speculative transactions.

(b) Interest rate risk

Cashflowinterestrateriskistheriskthatthefuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.Fairvalueinterestrateriskistheriskthatthevalueofafinancialinstrumentwillfluctuateduetochangesinmarketinterestrates.AstheGrouphasnosignificantinterest-bearingfinancialassets,theGroup’sincomeandoperatingcashflowsaresubstantiallyindependentofchangesinmarketinterestrates.

TheGroup’sinterestrateriskarisesprimarilyfrominterest-bearingborrowings.BorrowingsatfloatingratesexposetheGrouptocashflowinterestraterisk.BorrowingsobtainedatfixedratesexposetheGrouptofairvalueinterestraterisk.



35

3.

FIN

AN

CIA

L IN

STR

UM

ENTS

(Con

tinue

d)

Thefollowingtablessetoutthecarryingam

ounts,theeffectiveinterestra

tesasattheStatementofF

inancialPositiondateandtheremaining

maturitiesoftheGroup’sfinancialinstrumentsthatareexposedtointerestraterisk:

At 3

1 D

ecem

ber 2

012

Fixedrate:

Fixe

d de

posi

tFi

nanc

e le

ases

Floatingrate:

Bank

ove

rdra

ftBa

nker

s’ a

ccep

tanc

eLetterofcredits

Trustreceipts

At 3

1 D

ecem

ber 2

011

Fixedrate:

Fixe

d de

posi

tFi

nanc

e le

ases

Floatingrate:

BankOverdraft

Bank

ers’

acc

epta

nce

Letterofcredits

Trustreceipts

Tota

l £

793,358

(81,115)

(246,000)

(1,717,929)

(324,909)

(22,696)

705,208

(97,745)

(611,374)

(1,345,941)

(595,189)

(440,668)

4-5

year

s £ -(6,850) - - - - -

(13,163) - - - -

2-3

year

s £ -(18,749) - - - - -

(17,906) - - - -

With

in1

year £

793,358

(16,732)

(246,000)

(1,717,929)

(324,909)

(22,696)

705,208

(15,871)

(611,374)

(1,345,941)

(595,189)

(440,668)

Mor

e th

an5

year

s £ -(8,003) - - - - -

(14,992) - - - -

3-4

year

s £ -(13,040) - - - - -

(18,924) - - - -

1-2

year

s £ -(17,741) - - - - -

(16,889) - - - -

Effe

ctiv

eIn

tere

st R

ate %

2.98

3.08

8.60

7.09

1.22

8.60

2.92

3.08

8.20

7.58

1.57

6.58

Not

e

16 20 19 19 19 19 16 20 19 19 19 19



36

3. FINANCIAL INSTRUMENTS (Continued)

(b) Interest rate risk (continued)

Sensitivity analysis for interest rate risk

TheinterestrateprofileoftheGroup’ssignificantinterest-bearingfinancialinstruments,basedoncarryingamountsasattheendofthereportingperiodwas:

Floating rate instruments Financialliabilities(Note19)

Interest rate risk sensitivity analysis

(i) Fairvaluesensitivityanalysisforfixedrateinstruments

TheGroupdoesnotaccountforanyfixedratefinancialassetsandliabilitiesatfairvaluethroughprofitorloss,andthe Companydoesnotdesignatederivativesashedginginstrumentsunderafairvaluehedgedaccountingmodel.Therefore, achangeininterestratesattheendofthereportingperiodwouldnotaffectprofitorloss.

(ii) Cashflowsensitivityanalysisforvariablerateinstruments

Achangeof100basispoints(bp)ininterestratesattheendofthereportingperiodwouldhaveincreased/ (decreased)post-taxprofitbytheamountsshownbelow.Thisanalysisassumesthatallothervariables,in particularforeigncurrencyrates,remainedconstant.

2012 Floating rate instruments

2011 Floating rate instruments

2011£

2,993,172

2012£

2,311,534

Group

100 bpDecrease

£

17,337

22,449

100 bpIncrease

£

(17,337)

(22,449)

GroupProfit or Loss



37


(c) Credit risk

TheGroup’sandtheCompany’sexposuretocreditriskarisesmainlyfromreceivables.Receivablesaremonitoredonanongoing basis via management reporting procedure and action is taken to recover debts when due. At each Statement ofFinancialPositiondate,therewasnosignificantconcentrationofcreditrisk.ThemaximumexposuretocreditriskfortheGroupandtheCompanyisthecarryingamountofthefinancialassetsshownintheStatementofFinancialPosition.

(d) Foreign currency exchange risk

TheGroupandtheCompanyisexposedtoforeigncurrencyriskonsales,purchasesandborrowingsthataredenominatedinacurrenciesotherthanthefunctionalcurrenciesoftheGroupentitiesprimarilyRinggitMalaysia(“RM”)andIndonesiaRuppiah(“IDR”).ThecurrencygivingrisetothisriskisprimarilyUSdollars.TheGroupandtheCompanymaintainsanatural hedge that minimises the foreign exchange exposure by matching foreign currency income with foreign currency costs.

TheGroupdoesnotconsideritnecessarytoenterintoforeignexchangecontractsinmanagingitsforeignexchangeriskresultingfromcashflowsfromtransactionsdenominatedinforeigncurrency,giventhenatureofthebusinessforthe time being.

ThenetunhedgedfinancialassetsandliabilitiesoftheGroupcompaniesthatarenotdenominatedintheirfunctionalcurrenciesareasfollows:

Net Financial Assets/(Liabilities) Held in Non-Functional Currencies Ringgit Malaysia US Dollars Total £ £ £

Group At 31 December 2012 Tradereceivables - 106,857 106,857 Cashandbankbalances 381 29,650 30,031 Otherpayables (4,752) - (4,752)

(4,371) 136,507 132,136 At 31 December 2011 Tradereceivables - 63,636 63,636 Cashandbankbalances 387 112,637 113,024 Otherpayables (1,228) - (1,228) (841) 176,273 175,432 Company At 31 December 2012 Cashandbankbalances 381 - 381 At 31 December 2011 Cashandbankbalances 387 - 387



38


(d) Foreign currency exchange risk (continued)

Sensitivity analysis for foreign currency risk

Thefollowingtabledetailsthesensitivityanalysistoareasonablypossiblechangeintheforeigncurrencyasattheendofthereportingdate,withallothervariablesheldconstant:

Group Effectonprofitaftertax:

United States Dollar -Strengthenedby5% -Weakenedby5%

Ringgit Malaysia -Strengthenedby5% -Weakenedby5%

Company Effectonprofitaftertax:

Ringgit Malaysia -Strengthenedby5% -Weakenedby5%

(e) Liquidity and cash flow risks

TheGroupand theCompanyseeks toachieveaflexibleandcosteffectiveborrowingstructure toensure that theprojectednetborrowingneedsarecoveredbyavailablecommittedfacilities.Debtmaturitiesarestructured insucha way to ensure that the amount of debt maturing in any one year is within the Group’s and the Company’s ability to repayand/orrefinance.

TheGroupandtheCompanyalsomaintainsacertainlevelofcashandcashconvertibleinvestmentstomeetitsworkingcapital requirements.

2011Increase/

(Decrease)£

8,964(8,964)

(42)42

19(19)

2012Increase/

(Decrease)£

6,825(6,825)

(219)219

19(19)



39


(e) Liquidity and cash flow risks (continued)

ThetablebelowsummarisesthematurityprofileoftheGroup’sandtheCompany’sliabilitiesatthereportingdatebasedon contractual undiscounted repayment obligations.

2012

GroupFinancial liabilitiesTradeandotherpayablesAmount due to DirectorsLoansandborrowings

Totalundiscountedfinancialliabilities

2011GroupFinancial liabilitiesTradeandotherpayablesAmount due to DirectorsLoansandborrowings


2012CompanyFinancial liabilitiesTradeandotherpayablesAmount due to Directors


2011CompanyFinancial liabilitiesTradeandotherpayablesAmount due to Directors


Total£

495,26569,731

2,392,649

2,957,645

910,518217,097

3,090,917

4,218,532

38,73638,254

76,990

32,852153,853

186,705

On demand over five

year£

--

8,003

8,003

--

14,992

14,992

--

-

--

-

On demand one to five

year£

--

56,380

56,380

--

66,882

66,882

--

-

--

-

On demand or within one

year£

495,26569,731

2,328,266

2,893,262

910,518217,097

3,009,043

4,136,658

38,73638,254

76,990

32,852153,853

186,705



40


(f) Fair Values

ThecarryingamountsoffinancialassetsandliabilitiesoftheGroupatthereportingdateapproximatedtheirfairvalueexceptassetoutbelow:

Financialleaseliabilities(Note19)

Thecarryingamountsoffinancialassetsandfinancialliabilitiesotherthantheabovearereasonableapproximationoffair value due to their short term nature.

Thecarryingamountsofthecurrentportionofborrowingisreasonableapproximationoffairvalueduetotheinsignificantimpact of discounting.

(g) Capital risk

TheGroup’sandtheCompany’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sandtheCompany’sabilitytocontinueasagoingconcerninordertoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.Inordertomaintainoradjustthecapitalstructure,theGroupandtheCompanymayadjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issue new shares or sell assets to reduce debt.

Group

Fair value£

62,460

Carrying amount

£

64,383



41

4. EMPLOYEES AND DIRECTORS

EMPLOYEESWages,salariesandbonusesSocial security contributionContributiontodefinedcontributionplanOtherstaffrelatedexpenses

Less:Capitalisedindevelopmentcosts(Note11)

DIRECTORSFeesWages,salariesandbonusesSocial security contributionContributiontodefinedcontributionplan

TotalremunerationLess:Capitalisedindevelopmentcosts(Note11)

Thenumberofemployees(excludingDirectors)oftheGroupandoftheCompanyattheendofthefinancialyearwere73(2011:73)andNil(2011:Nil)respectively.

Group2011

£

514,5785,16449,15225,150594,044(246,005)

348,039

115,50098,949

25311,247

225,949(59,959)

165,990

2012£

547,9594,83751,94739,088643,831

-

643,831

106,06886,513

1548,907

201,642-

201,642



42

4. EMPLOYEES AND DIRECTORS (Continued)

ThedetailsofremunerationreceivedandreceivablesbytheDirectorsoftheGroupduringthefinancialyearareasfollows:

Group 2012

Company’sDirectors: KjetilLanglandBohn Dato’ Hussian @ Rizal bin A. Rahman Derrick Chia Kah Wai Seah Boon Chin Dato’Dr.WanAzmibinAriffin Dato’ShamsirbinOmar

Subsidiarycompanies’Directors: TengkuMuhainiBintiSultan Hj.AhmadShah MohdAlaidinBinZainalAbidin PratomoEdhiTjahjono

Group 2011

Company’sDirectors: KjetilLanglandBohn Dato’ Hussian @ Rizal bin A. Rahman Derrick Chia Kah Wai Seah Boon Chin Dato’Dr.WanAzmibinAriffin Dato’ShamsirbinOmar

Subsidiarycompanies’Directors: TengkuMuhainiBintiSultan Hj.AhmadShah MohdAlaidinBinZainalAbidin PratomoEdhiTjahjono

Total£

1,66669,088

58,41527,2757,2667,266

7,329

21,5951,742

201,642

10,00069,098

58,52827,5357,3387,338

7,951

33,2124,949

225,949

Social security

contribution£

--

126---

-

28-

154

--

126---

-

127-

253

Salaries£

-36,690

27,681---

-

20,4001,608

86,379

-36,695

27,717---

-

29,5882,910

96,910

Defined contribution

plan£

-4,398

3,342---

-

1,167-

8,907

-4,403

3,347---

-

3,497-

11,247

Bonuses£

--

----

-

-134

134

--

----

-

-2,039

2,039

Fees£

1,66628,000

27,26627,2757,2667,266

7,329

--

106,068

10,00028,000

27,33827,5357,3387,338

7,951

--

115,500



43

5. OPERATING SEGMENTS

TheinformationreportedtotheGroup’schiefoperatingdecisionmakertomakedecisionsaboutresourcestobeallocatedandforassessingtheirperformanceisbasedonthenatureoftheproductsandservices,andhasthreereportableoperatingsegmentsasfollows:-

(a) Telecommnicationservicesandelectroniccommencesolutions (b) Hardware (c) Remittanceservices

Exceptasabove,nootheroperatingsegmenthasbeenaggregatedtoformtheabovereportableoperatingsegments.

Measurement of Reportable Segments

Segment information is prepared in conformity with the accounting policies adopted for preparing and presenting the consolidatedfinancialstatements.

No segment assets and capital expenditure are presented as they are mostly unallocated items which comprise corporate

assets and liabilities.

NogeographicalsegmentinformationispresentedastheGroupmainlytradesandprovidesservicesinonlyoneregion-theFar East.



44

5. OPERATING SEGMENTS (Continued)

Group2012

Segmentrevenue:Sales to external customersInter-segmentsales

LossbeforetaxTax

Lossfortheyear

Group2011Segmentrevenue:Sales to external customersInter-segmentsales

ProfitbeforetaxTax

Profitfortheyear

6. FINANCE COSTS

Bankers’ acceptance interest Termloansinterest Finance lease interest Bank guarantee interest Bank overdraft Letterofcreditinterest Trustreceiptinterest

Total£

43,261,999-

43,261,999

(269,005)(1,784)

(270,789)

31,860,274-

31,860,274

28,802(27,584)

1,218

Remittance Services

£

80,975-

80,975

103,095-

103,095

Telecommunication services and

electronic commence

solutions£

41,233,87669,438

41,303,314

29,264,14987,151

29,351,300

Elimination£

-(69,438)

(69,438)

-(87,151)

(87,151)

Hardware£

1,947,148-

1,947,148

2,493,030-

2,493,030

Group2011

£

91,6151,3776,1484,8336,4037,53732,936

150,849

2012£

108,880-

5,0362,20516,3685,62124,583

162,693



45

7. (LOSS)/PROFIT BEFORE TAX

The(loss)/profitbeforetaxisstatedaftercharging/(crediting):

Auditors’ remuneration Auditors’remunerationunder/(over)providedEmployeebenefitsexpense(excludingDirectors’remuneration)Directors’ remuneration DepreciationRental of premises and equipmentRental of motor vehiclesAmortisation of intangible assets Amortisation of development costs Property,plantandequipmentwrittenoffImpairment loss on development costsBad debts written offInterest incomeRental incomeProfitondisposalofproperty,plantandequipmentGain on foreign exchange-realised-unrealized

Includedintheauditors’remunerationfortheGroupisanamountof£11,000(2011:£10,000)inrespectoftheCompany.

2011£

19,547(1,585)

348,039165,990182,77880,4862,982

176,302143,252

-63,69531,096(18,816)(3,229)(3,146)

(80,730)-

2012£

21,308648

643,831201,642174,46292,1691,642

170,655162,6879,69064,382

-(26,574)(3,122)

-

(56,264)(8,230)

Note

44

12

11111211

Group



46

8. TAX

Current tax expense:Jersey corporation tax for the yearForeign tax

(Over)/underprovisioninprioryear:Foreign tax

A reconciliation of income tax expense applicable to loss before tax at the statutory income tax rate to income tax expense attheeffectiveincometaxrateoftheGroupisasfollows:

(Loss)/profitbeforetax

TaxationatMalaysianstatutorytaxrateof25%(2011:25%)Effect of different tax rates in other countriesEffect of expenses not deductible for taxEffect of utilisation of previous unrecognised unabsorbed capital allowanceDeferred tax not recognised in respect of current year’s tax losses and unabsorded capital allowancesTemporarydifferencesinrespectofproperty,plantandequipmentnotrecognised(Over)/underprovisionoftaxexpenseinprioryear

Taxexpensefortheyear

Thedirectsubsidiarycompany,MobilityOneSdn.Bhd.,wasgrantedPioneerStatusbytherelevantauthoritiesforanadditionalperiodoffiveyearseffectivefrom26April2010to25April2015.

Group

2011£

28,802

7,2013,65688,179

(162,968)62,782

28,64787

27,584

2012£

(269,005)

(67,252)(10,933)29,260(68,901)74,279

51,062(5,731)

1,784

Group

2011£

-27,497

87

27,584

2012£

-7,515

(5,731)

1,784



47

8. TAX (Continued)

Asat31December2012,theunrecogniseddeferredtaxassetsoftheGroupareasfollows:

Unabsorbed tax lossesUnabsorbed capital allowancesTaxabletemporarydifferences

Thepotential net deferred tax assets amounting to £81,438 (2011: £73,311) hasnot been recognised in the financialstatementsbecauseitisnotprobablethatfuturetaxableprofitwillbeavailableagainstwhichthesubsidiarycompanycanutilisethebenefits.

TheavailabilityoftheunusedtaxlossesandunabsorbedcapitalallowancesforoffsettingagainstfuturetaxableprofitsofthesubsidiarycompanyissubjecttonosubstantialchangesinshareholdingsofthesubsidiarycompanyunderSection44(5A)and(5B)ofIncomeTaxAct,1967.

9. LOSS OF COMPANY

TheprofitorlossoftheCompanyisnotpresentedaspartofthesefinancialstatements.TheCompany’slossforthefinancialyearwas£216,546(2011:£269,622).

10. EARNINGS PER SHARE

Consolidatedlossfortheyearattributabletoowners(£)

Issued ordinary shares at 1 JanuaryEffect of ordinary shares issued during the period

Weighted average number of shares at 31 December

Fully diluted weighted average number of shares at 31 December

Basicearningspershare(pence)Dilutedearningspershare(pence)

Thebasicearningspershareiscalculatedbydividingthelossof£259,650(2011:lossof£1,341)attributabletoordinaryshareholdersbytheweightedaveragenumberofordinarysharesoutstandingduringtheyear,whichis97,130,651(2011:93,574,951).

Thedilutedearningspershareiscalculatedusingtheweightedaveragenumberofsharesadjustedtoassumetheconversionofalldilutivepotentialordinaryshares.Fortheyearended31December2012,thedilutedearningspershareisequivalentto the basic earnings per share as the exercise price of the share options is above the current market price.

2011£

(1,341)

93,574,951-

93,574,951

93,574,951

(0.001)(0.001)

2012£

(259,650)

93,574,9513,555,700

97,130,651

97,130,651

(0.267)(0.267)

Group

2011£

38,76634,701(156)

73,311

2012£

46,94634,696(204)

81,438

Group



48

11. INTANGIBLE ASSETS

GROUP31 December 2012

COSTAt 1 January 2012AdditionsAcquired of subsidiary companyForeign exchange differences

At 31 December 2012

ACCUMULATED AMORTISATION AND IMPAIRMENT LOSSAt 1 January 2012Amortisation charge for the periodImpairment loss for the periodForeign exchange differences

At 31 December 2012

NET CARRYING AMOUNTAt 31 December 2012

GROUP31 December 2011

COSTAt 1 January 2011ReclassificationfrominventoriesAdditionsForeign exchange differences

At 31 December 2011

ACCUMULATED AMORTISATION AND IMPAIRMENT LOSSAt 1 January 2011Amortisation charge for the periodImpairment loss for the periodForeign exchange differences

At 31 December 2011

NET CARRYING AMOUNTAt 31 December 2011

Total£

3,738,436-

6,342(78,602)

3,666,176

1,097,133333,34264,382(24,986)

1,469,871

2,196,305

Development Costs

£

1,070,239--

(9,917)

1,060,322

426,834162,68764,382(5,347)

648,556

411,766

Goodwill on consolidation

£

1,395,866-

6,342(12,935)

1,389,273

----

-

1,389,273

Software£

1,272,331--

(55,750)

1,216,581

670,299170,655

-(19,639)

821,315

395,266

Total£

2,962,943499,065351,997(75,569)

3,738,436

730,437319,55463,695(16,553)

1,097,133

2,641,303

Development Costs

£

734,772-

351,997(16,530)

1,070,239

224,759143,25263,695(4,872)

426,834

643,405


£

1,429,292--

(33,426)

1,395,866

----

-

1,395,866

Software£

798,879499,065

-(25,613)

1,272,331

505,678176,302

-(11,681)

670,299

602,032



49

11. INTANGIBLE ASSETS (Continued)

Includedindevelopmentcostsincurredduringthefinancialyearare:-

Employeebenefitsexpenses(Note4)Directors’remuneration(Note4)Rental of premises

TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired,byconsideringthenetpresentvalueofdiscountedcashflowsforecasts.Ifanindicationexistsanimpairmentreviewiscarriedout.Attheyearend,therewasnoindicationofimpairmentofthevalueofgoodwillonconsolidationorofdevelopmentcosts.


(a) Impairmenttestingforgoodwillonconsolidation

Goodwill on consolidation has been allocated for impairment testing purposes to the individual entities which is also the cash-generatingunits(“CGU”)identified.

(b) Keyassumptionsusedtodeterminerecoverableamount

TherecoverableamountofaCGUisdeterminedbasedonvalueinusecalculationsusingcashflowprojectionsbased onfinancialbudgetsapprovedbytheDirectorscoveringa5yearsperiod.Theprojectionsarebasedontheassumption thattheGroupcanrealiseprojectedsales.Aprudentapproachhasbeenappliedwithnoresidualvaluebeingfactored intothesecalculations.Iftheprojectedsalesdonotmaterialisethereisariskthatthetotalvalueoftheintangibleassets shownabovewouldbeimpaired.Apre-taxdiscountrateof8.50%perannumwasappliedtothecashflowprojections, aftertakingintoconsiderationtheGroup’scostofborrowings,theexpectedrateofreturnandvariousrisksrelatingto the CGU.

Duringthefinancialyear,theGroupdidnotrecogniseanyimpairmentlossinrespectofthegoodwillonconsolidation. AsignificantproportionofgoodwillonconsolidationrelatestotheacquisitionofNetossSdn.Bhd.whichisaCGUand hasacarryingamountof£1,379,710(2011:£1,395,866).It'srecoverableamounthasbeendeterminedbasedonvalue inuseusingcashflowprojectionsandkeyassumptionsasdescribedin(b)above.

Development costs

Developmentcostswillnotbeamortisediftheproductisstillinitsdevelopmentphase.Theamortisationofthedevelopmentcostsisover5yearsperiod,whichintheopinionoftheDirectorsisadequate.

2011£

246,00559,95925,687

2012£

---

Group



50

12.

PRO

PER

TY, P

LAN

T A

ND

EQ

UIP

MEN

T

Gro

up

31 D

ecem

ber 2

012

Cos

tAt

1 J

anua

ry 2

012

Addi

tions

Reclassification

Dis

posa

lsW

ritte

n of

fFo

reig

n ex

chan

ge d

iffer

ence

s

At 3

1 D

ecem

ber 2

012

DEP

REC

IATI

ON

At 1

Jan

uary

201

2D

epre

ciat

ion

char

ge fo

r the

pe

riod

Reclassification

Dis

posa

lsW

ritte

n of

fFo

reig

n ex

chan

ge d

iffer

ence

s

At 3

1 D

ecem

ber 2

012

NET

CA

RRY

ING

AM

OU

NT

At 3

1 D

ecem

ber 2

012

Tota

l £

1,664,732

13,554- -

(19,380)

(15,496)

1,643,410

804,303

174,462 - -

(9,690)

(8,473)

960,602

682,808

Offi

ce

equi

pmen

t £

331,336

1,630 - - -

(318)

32,648

16,811

3,183 - - -

(176)

19,818

12,830

Com

pute

r so

ftwar

e £

742,548

1,323

(523) - -

(6,960)

736,388

300,578

73,975

(172) - -

(3,243)

371,138

365,250

Elec

tron

ic

Dat

a C

aptu

re

equi

pmen

t £

417,360

1,447 - - -

(3,878)

414,929

188,257

41,921

- - -(2,003)

228,175

186,754

Ren

ovat

ion £

49,817- - - -

(462)

49,355

24,063

4,966 - - -

(251)

28,778

20,577

Furn

iture

an

d fit

tings £

77,446 987 - - -

(724)

77,709

36,780

7,791 - - -

(390)

44,181

33,528

Com

pute

r eq

uipm

ent £

196,637

8,167

523 - -

(1,887)

203,440

167,147

14,499 172 - -

(1,642)

180,176

23,264

Mot

orVe

hicl

es £

149,588 - - -

(19,380)

(1,267)

128,941

70,667

28,127

- -(9,690)

(768)

88,336

40,605



51

12.

PRO

PER

TY, P

LAN

T A

ND

EQ

UIP

MEN

T (C

ontin

ued)

Gro

up

31 D

ecem

ber 2

011

Cos

tAt

1 J

anua

ry 2

011

Addi

tions

Dis

posa

lsFo

reig

n ex

chan

ge d

iffer

ence

s

At 3

1 D

ecem

ber 2

011

DEP

REC

IATI

ON

At 1

Jan

uary

201

1D

epre

ciat

ion

char

ge fo

r the

pe

riod

Dis

posa

lsFo

reig

n ex

chan

ge d

iffer

ence

s

At 3

1 D

ecem

ber 2

011

NET

CA

RRY

ING

AM

OU

NT

At 3

1 D

ecem

ber 2

011

Tota

l £

1,648,751

56,716

(2,283)

(38,452)

1,664,732

636,107

182,778

(47)

(14,535)

804,303

860,429

Offi

ce

equi

pmen

t £

32,047 38-

(749)

31,336

14,006

3,126 -

(321)

16,811

14,525

Com

pute

r so

ftwar

e £

759,475

829 -

(17,756)

742,548

231,774

74,087

-(5,283)

300,578

441,970

Elec

tron

ic

Dat

a C

aptu

re

equi

pmen

t £

386,876

41,741

(2,283)

(8,974)

417,360

151,939

39,845 (47)

(3,480)

188,257

229,103

Ren

ovat

ion £

50,090 897 -

(1,170)

49,817

19,569

4,940 -

(446)

24,063

25,754

Furn

iture

an

d fit

tings £

77,519

1,737 -

(1,810)

77,446

29,792

7,671 -

(683)

36,780

40,666

Com

pute

r eq

uipm

ent £

189,574

11,474-

(4,411)

196,637

147,219

23,328

-(3,400)

167,147

29,490

Mot

orVe

hicl

es £

153,170 - -

(3,582)

149,588

41,808

29,781

-(922)

70,667

78,921



52

12. PROPERTY, PLANT AND EQUIPMENT (Continued)

(a) Cashpaymentsof£13,554(2011:£56,716)weremadebytheGrouptopurchaseproperty,plantandequipment.

(b) Includedinproperty,plantandequipmentoftheGrouparemotorvehicleswithnetcarryingamountsof£40,605(2011:£78,921)heldunderfinanceleasesarrangements.

13. INVESTMENT IN SUBSIDIARY COMPANIES

COSTAt1January/31December

2011£

2,040,930

2012£

2,040,930

Company

Name of Subsidiary Company

MobilityOneSdn.Bhd.

Direct subsidiary companies ofMobilityOneSdn.Bhd.

Netoss Sdn. Bhd.*

Pay Station Sdn. Bhd.*

PT.MobilityOneIndonesia*

MobilityOnePhilippines,Inc**

Country of incorporation

Malaysia

Malaysia

Malaysia

Indonesia

Philippines

EffectiveOwnership Interest

2012 2011 (%) (%) 100 100

100 100 100 100

95 95

95 -

Principal Activities

Provision of e-Channel products andservices,technologymanagedservicesand solution sales and consultancy

Provision of solution sales and services

Dormant

Provision of e-Channel products andservices,technologymanagedservicesand solution sales and consultancy

ProvisionofITsystemsandsolutionsandto establish amulti-channel electronicservice bureau

* AuditedbyRogerYue,Tan&Associates ** AuditedbyfirmofauditorsotherthanRogerYue,Tan&Associates



53

13. INVESTMENT IN SUBSIDIARY COMPANIES (Continued)

(a) Acquisitionofsubsidiarycompany

Duringthefinancialyear,thesubsidiarycompany,MobilityOneSdn.Bhd.acquired95%equityinterestinMobilityOnePhilippines,Inc,acompanyincorporatedinPhilippinesforatotalconsiderationof£126,832(equivalenttoRM626,802).

(b) TheacquisitionhadthefollowingeffectontheGroup’sfinancialresultsforthefinancialyear:

Revenue Operatingloss Lossfortheyear

(c) TheacquisitionhadthefollowingeffectonthefinancialpositionoftheGroupasattheendoftheyear:

Property,plantandequipment Tradeandotherreceivables Cash and bank balances Taxrecoverable Tradeandotherpayables

Group’s share of net assets

(d) Thefairvalueofassetsacquiredandliabilitiesassumedfromtheacquisitionofthesubsidiarycompanyisasfollows:

Cash and bank balances

Group’s share of net assets Less:Non-controllinginterests Goodwill arising on consolidation Costofacquisitionsatisfiedbycashpaid Cash and cash equivalents of subsidiary company acquired

NetcashoutflowtotheGroup

2012£

-(4,106)(4,106)

2012£

650315

128,04461

(5,177)

123,893

2012£

126,832

126,832(6,342)6,342

126,832(126,832)

-



54

14. INVENTORIES

At Cost: Air timeHardware

15. TRADE AND OTHER RECEIVABLES

Tradereceivables-Thirdparties

Otherreceivables-Deposits-Prepayments-Sundryreceivables-Amountduefromsubsidiarycompany

Totaltradeandotherreceivables

(a) TheGroup’sandtheCompany’snormaltradecredittermsrangefrom30to60days(2011:30to60days).Othercredit terms are assessed and approved on a case to case basis.

Ageing analysis Anageinganalysisoftradereceivablesthatareneitherindividuallynorcollectivelyconsideredtobeimpairedisasfollows:

Neither past due nor impaired

1-2monthspastdue 3-12monthspastdue

2011£

751,383270,196

1,021,579

2012£

690,688188,592

879,280

Group

2011£

928,712

42,51178,725121,236

1,049,948

2012£

485,889

130,19267,195197,387

683,276

Group

2011£

-

---

985,543985,543

985,543

2011£

1,049,948

288,2249,131

294,049-

591,404

1,641,352

2012£

-

---

1,104,6221,104,622

1,104,622

2012£

683,276

207,87010,467365,742

-584,079

1,267,355

CompanyGroup



55

15. TRADE AND OTHER RECEIVABLES (Continued)

Receivables that were neither past due nor impaired relate to a wide range of customers for whom there was no recent history of default.

Receivables that were past due but not impaired relate to a number of independent customers that have a good track recordwiththeGroup.Basedonpastexperience,managementbelievesthatnoimpairmentallowanceisnecessaryin respectofthesebalancesastherehasnotbeenasignificantchangeincreditqualityandthebalancesarestillconsidered fully recoverable.

(b) Relatedpartybalances

Theamountduefromsubsidiarycompaniesisunsecured,non-interestbearingandisrepayableondemand.

16. CASH AND CASH EQUIVALENTS

Cash in hand and at banksFixed deposits with licensed bank

Cash and bank balancesLess:Bankoverdraft(Note19)

Cash and cash equivalents

(a) TheabovefixeddepositshavebeenpledgedtolicensedbanksassecuritiesforcreditfacilitiesgrantedtotheGroupas disclosedinNote19tothefinancialstatements.

(b) TheGroup’seffectiveinterestratesandmaturitiesofdepositsare2.98%(2011:2.92%)and1monthto12months(2011: 1monthto12months)respectively.

2011£

2,073-

2,073-

2,073

2012£

2,067-

2,067-

2,067

Company2011

£

449,457705,208

1,154,665(611,374)

543,291

2012£

336,957793,358

1,130,315(246,000)

884,315

Group



56

17. TRADE AND OTHER PAYABLES

Tradepayables-Thirdparties

Otherpayables-Deposits-Accruals-Sundrypayables

TotaltradeandotherpayablesAdd:AmountduetoDirectors(Note18)Add:Loansandborrowings(Note19)

Totalfinancialliabilitiescarriedatamortisedcost

(a) TheGroup’snormaltradecredittermsrangefrom30to90days(2011:30to90days).

(b) Otherpayablesarenon-interestbearing.Otherpayablesarenormallysettledonanaveragetermsof60days(2011: 60days).

18. AMOUNT DUE TO DIRECTORS

Theseareunsecured,interestfreeandrepayableondemand.

2011£

-

-14,90117,95132,852

32,852153,853

-

186,705

2011£

455,953

48,63338,301367,631454,565

910,518217,097

3,090,917

4,218,532

2012£

-

-14,10124,63538,736

38,73638,254

-

76,990

2012£

311,860

46,31335,730101,362183,405

495,26569,731

2,392,649

2,957,645

CompanyGroup



57

19. FINANCIAL LIABILITIES – LOANS AND BORROWINGS

Non-CurrentSecured:Financeleasepayables(Note20)

CurrentSecured:Bankers’ acceptanceBankoverdraft(Note16)Financeleasepayables(Note20)LetterofcreditsTrustreceipts

Total BorrowingsSecured:Bankers’ acceptanceBankoverdraft(Note16)Financeleasepayables(Note20)LetterofcreditsTrustreceipts

Thebankers’acceptance,bankoverdraft,letterofcreditsandtrustreceiptsaresecuredbythefollowing:

(a) pledgedoffixeddepositsofasubsidiarycompany(Note16);(b) personalguaranteebyaDirector;and(c) corporateguaranteebytheCompany.

Group2011

£

81,874

1,345,941611,37415,871595,189440,668

3,009,043

1,345,941611,37497,745595,189440,668

3,090,917

2012£

64,383

1,717,929246,00016,732324,90922,696

2,328,266

1,717,929246,00081,115

324,90922,696

2,392,649



58

19. FINANCIAL LIABILITIES – LOANS AND BORROWINGS (Continued)

TheeffectiveinterestratesoftheGroupfortheabovefacilitiesotherthanfinanceleasesareasfollows:

Bankers’ acceptanceBank overdraftLetterofcreditsTrustreceipts

Thematurityofborrowings(excludingfinanceleases)isasfollows:

Within one year

OtherinformationonfinancialrisksofborrowingsaredisclosedinNote3.

2011%

7.588.201.576.58

2012%

7.098.601.228.60

Group

2011£

2,993,172

2012£

2,311,534

Group



59

20. FINANCE LEASE PAYABLES

Minimumleasepayments: Not later than 1 year Laterthan1yearbutnotlaterthan2years Laterthan2yearsbutnotlaterthan5years Laterthan5years

Less:Futurefinancecharges

Presentvalueoffinanceleaseliabilities

Presentvalueoffinanceleasepayments: Not later than 1 year Laterthan1yearbutnotlaterthan2years Laterthan2yearsbutnotlaterthan5years Laterthan5years

Analysedas:Duewithin12months(Note19)Dueafter12months(Note19)

TheGrouphasfinanceleasecontractsforcertainmotorvehiclesasdisclosedonNote12(b).

OtherinformationonfinancialrisksoffinanceleasepayablesaredisclosedinNote3.

2011£

20,92320,92356,05815,823113,727(15,982)

97,745

15,87116,88949,99314,992

97,745

15,87181,874

97,745

2012£

20,72920,72942,2478,23991,944(10,829)

81,115

16,73217,74138,6398,003

81,115

16,73264,383

81,115

Group



60

21. CALLED UP SHARE CAPITAL

Authorised in MobilityOne Limited

At1January/31December

Issued and fully paid in MobilityOne Limited

At 1 January Issuance of shares

At 31 December

On21September2012,theCompanyissuedatotalof12,723,829ordinarysharesof2.5pencepershareatanissuepriceof3.5pencepershare.Accordingly,asaresultoftheaboveissuanceofshares,theissuedsharecapitaloftheCompanyincreasedto106,298,780ordinarysharesof2.5penceeach.Theordinarysharesissuedduringthefinancialyearisbywayof:

(i) 3,000,000ordinarysharesof2.5pencepershareatanissuepriceof3.5pencepershareissuedtoathirdpartyindividual forgeneralworkingcapitalpurposes;(ii) 2,200,000ordinarysharesof2.5pencepershareataconversionprice3.5pencepershareissuedtoaDirectorto converttheoutstandingDirector’sfeeintonewshares;and(iii) 7,523,829ordinarysharesof2.5pencepershareataconversionprice3.5pencepersharetoarelatedpartytoconvert aloangiventotheGroupbytherelatedpartyintonewshares.ThesesharesweresubsequentlytransferredtoaDirector duringthefinancialyear.

2011£

10,000,000

2,339,374-

2,339,374

2012£

10,000,000

2,339,374318,096

2,657,470

Amount2011

400,000,000

93,574,951-

93,574,951

2012

400,000,000

93,574,95112,723,829

106,298,780

Number of ordinary shares of £0.025 each



61

22. COMPANY EQUITY INSTRUMENT

At 1 January 2012Issuance of sharesLossfortheyear

At 31 December 2012

At 1 January 2011Lossfortheyear

At 31 December 2011

23. REVERSE ACQUISITION RESERVE

TheacquisitionofMobilityOneSdn.Bhd.byMobilityOneLimited,whichwasaffectedthroughashareexchange,wascompletedon5July2007andresultedinMobilityOneSdn.Bhd.becomingawhollyownedsubsidiaryofMobilityOneLimited.Pursuanttoashareswapagreementdated22June2007theentireissuedandpaid-upsharecapitalofMobilityOneSdn.Bhd.wastransferredtoMobilityOneLimitedbyitsowners.Theconsiderationtotheownerswasthetransferof178,800,024existingordinarysharesandtheallotmentandissuancebyMobilityOneLimitedtotheownersof81,637,200ordinarysharesof2.5peach.Theacquisitionwascompletedon5July2007.TotalcostofinvestmentbyMobilityOneLimitedis£2,040,930,thedifferencebetweencostofinvestmentandMobilityOneSdn.Bhd.sharecapitalof£708,951hasbeentreatedasareverseacquisition reserve.

Share premium

£

782,234127,238

-

909,472

782,234-

782,234

Share capital£

2,339,374318,096

-

2,657,470

2,339,374-

2,339,374

Total£

2,841,841445,334(216,546)

3,070,629

3,111,463(269,622)

2,841,841

Retained earnings

£

(279,767)-

(216,546)

(496,313)

(10,145)(269,622)

(279,767)



62

24. RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM OPERATIONS

GROUPCash flow from operating activities

(Loss)/profitbeforetaxAdjustmentsfor:Profitondisposalofproperty,plantandequipmentGainonforeignexchange–unrealizedDepreciationAmortisation of intangible assetsAmortisation of development costsProperty,plantandequipmentwrittenoffImpairment loss on development costsBad debts written offInterest expensesInterest income

Operatingprofitbeforeworkingcapitalchanges

Decrease/(increase)ininventoriesDecrease/(increase)inreceivablesDecrease in amount due to DirectorsDecrease in payables

Cashgeneratedfrom/(depletedin)operations

COMPANYCash flow from operating activities

LossbeforetaxAdjustmentsfor:Lossonforeignexchange-unrealised

Operatinglossbeforeworkingcapitalchanges

Increase in payables(Decrease)/increaseinamountduetoDirectorsDecrease in amount due from subsidiary company

Cash depleted in operations

2011£

28,802

(3,146)-

182,778176,302143,252

-63,69531,096150,849(18,816)

754,812

(198,040)(441,704)(21,447)(122,316)

(28,695)

(269,622)

36,869

(232,753)

4,58659,750168,417

-

2012£

(269,005)

-(8,230)

174,462170,655162,6879,69064,382

-162,693(26,574)

440,760

133,651362,990(70,132)(103,306)

763,963

(216,546)

6,406

(210,140)

5,884(38,599)137,855

(105,000)



63

25. RELATED PARTY TRANSACTIONS

Duringtheyear,MobilityOneSdn.Bhd.receivedadvancesNil(2011:£167,657)fromLMSTechnologyDistributionSdn.Bhd.,acompanywhichisrelatedtoaDirector.

AttheStatementofFinancialPositiondate,theGroupowedtheDirectors£69,731(2011:£217,097),theCompanyowedtheDirectors£38,254(2011:£153,853),MobilityOneSdn.Bhd.owedtheCompany£1,104,622(2011:£985,543),NetossSdn.Bhd.owedMobilityOneSdn.Bhd.£360,540(2011:£317,052),PayStationSdn.Bhd.owedMobilityOneSdn.Bhd.£3,820(2011:£3,366)andPT.MobilityOneIndonesiaowedMobilityOneSdn.Bhd.£609,976(2011:£614,261),MobilityOneSdn.Bhd.owedLMSTechnologyDistributionSdn.Bhd.Nil(2011:£299,961),OneTranzactSdn.Bhd.,acompanywithcommonDirectors,owedMobilityOneSdn.Bhd.£4,138(2011:£3,155),LMSTechnologyDistributionSdn.Bhd.owedP.T.MobilityOneIndonesia£106,680(2011:£111,418)andNetossSdn.Bhd.owedLMSDigitalSdn.Bhd.,acompanyrelatedtoaDirector,£21,955(2011:£13,582)andLMSTechnologyDistributionSdn.Bhd.£4,372(2011:£2,179).Theamountsowingtoorfromthe subsidiary companies and related parties are repayable on demand and are interest free.

Duringthefinancialyear,MobilityOneSdn.Bhd.settledtheliabilitiesonbehalfofLMSTechnologyDistributionSdn.Bhd.andOneTranzactSdn.Bhd.£299,015(2011:Nil)and£1,018(2011:£2,742)respectively.NetossSdn.Bhd.paidLMSDigitalSdn.Bhd.andLMSTechnologyDistributionSdn.Bhd.£8,551(2011:£8,562)and£2,227(2011:£734)respectivelyonexpensesincurred.PT.MobilityOneIndonesiapaidLMSTechnologyDistributionSdn.Bhd.£61,104(2011:Nil)forpurchasesduringthefinancialyear.ServicesrenderedbyNetossSdn.Bhd.toMobilityOneSdn.Bhd.duringthefinancialyearisamountingto£69,438(2011:£87,155).

26. ULTIMATE CONTROLLING PARTY

IntheopinionoftheDirectors,thereisnoultimatecontrollingpartyintheCompanyfortheyearended31December2012.

27. CONTINGENT LIABILITIES

Saveasdisclosedbelow,theGrouphasnocontingentliabilitiesarisinginrespectoflegalclaimsarisingfromtheordinarycourse of business and it is not anticipated that any material liabilities will arise from the contingent liabilities other than those provided for.

Limit of guaranteesCorporate guarantee given to a licensed bank by the Company for credit facilities granted to a subsidiary company

Amount utilisedBanker’s guarantee in favour of third parties

2011£

4,186,920

356,552

2012£

4,148,118

373,482

Group



64

28. FOREIGN CURRENCY TRANSLATION RESERVE

Thesubsidiarycompanies’assetsandliabilitiesstatedintheStatementofFinancialPositionweretranslatedintoSterlingPound(£)usingtheclosingrateasattheStatementofFinancialPositiondateandtheIncomeStatementsweretranslatedinto £ using the average rate for that period. All resulting exchange differences are taken to the foreign currency translation reserve within equity.

As at 1 JanuaryCurrency translation differences during the year

As at 31 December

Theforeigncurrencytranslationreserveisusedtorecordexchangedifferencesarisingfromthetranslationofthefinancialstatements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It is also used to record the exchange differences arising from monetary items which form part of the Group’s net investment inforeignoperations,wherethemonetaryitemisdenominatedineitherthefunctionalcurrencyofthereportingentityortheforeign operation.

29. RETAINED EARNINGS

Retained earnings represents the cumulative earnings of the Group attributable to equity shareholders.

As at 1 JanuaryLossfortheyear

As at 31 December

2011£

985,244(76,536)

908,708

2012£

908,708(78,248)

830,460

2011£

(1,655,089)(1,341)

(1,656,430)

2012£

(1,656,430)(259,650)

(1,916,080)

Group



65

30. SHARE BASED PAYMENTS

Duringtheyearended31December2007theGroupgrantedshareoptionsof7,416,558sharesat12.5p2,000,000eachtoDato’[email protected],SeahBoonChinandDerrickChiaKahWaiand1,416,558toHBCorporate.Nocharge has been made for the share based payments as it is not considered to be material.

Thedetailsoftheshareoptionsareasfollows:

OutstandingatbeginningofyearExpired

Balance carried forward

ThefairvaluesoftheoptionsgrantedhavebeencalculatedusingBlack-Scholesmodelassumingtheinputsshownbelow:

Grantdate 5July2007Share price at grant date 12.5pExercise price 12.5pOptionlifeinyears 5yearsRiskfreerate 4.40%Expectedvolatility 40%Expecteddividendyield 0%Fair value of options 2p

No options have been exercised during the period and the options expired on 4 July 2012.

2011

12.5p-

12.5p

2012

12.5p-

12.5p

Exercise price2011

7,416,558-

7,416,558

2012

7,416,558(7,416,558)

-

NumberCompany



66

NOTICEISHEREBYGIVENTHATanAnnualGeneralMeetingofMOBILITYONE LIMITED (“Company”) will be held at 9.00 a.m.Malaysiatimeon26July2013atMalaysianPetroleumClub,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,Malaysia,andforthepurposeofconsideringand,ifthoughtfit,adoptingthefollowingresolutions,atthemeeting,orofanyadjournmentthereof:

ORDINARY RESOLUTIONS

1. THATtheCompany'saccountsandreportsoftheDirectorsandAuditorsfortheyearended31December2012beadopted.

2. THATDato'Dr.WanAzmibinAriffinisre-electedasaDirector.

3. THATDato'[email protected].

4. THATJeffreysHenryLLPofFinsgate,5-7CranwoodStreet,EC1V9EELondon,UnitedKingdombereappointedasAuditors oftheCompany(inaccordancewithArticle33oftheArticlesofAssociationoftheCompany)toholdofficeuntiltheconclusion of the next general meeting.

5. THATtheDirectorsbeauthorisedtofixtheremunerationoftheAuditors.

6. THATpursuant toArticles2.3and2.4(c)of theCompany'sArticlesofAssociation, theBoardofDirectorshavegeneral authoritytoissueuptoandincluding31,889,634ordinarysharesof2.5peachinthesharecapitaloftheCompanyattheir solediscretionwithoutreferencetppre-emptionrights,forcashbywayofgeneralmandate.

BY ORDER OF THE BOARD

Dato’ Dr. Wan Azmi bin Ariffin Chairman

Dated:28June2013

Notes:1. AmemberoftheCompanyentitledtoattendandvoteattheabovementionedmeetingisentitledtoappointaproxytoattendand,onapoll,

tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.AproxyneednotbeamemberoftheCompany.Amembermay appoint more than one proxy to attend on the same occasion.

2. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority(ifany)underwhichitissigned,oranotariallycertifiedcopyofsuchpowerorauthority,shallbedepositedwiththeCompany’sregistrars,ComputershareInvestorServices(Jersey)Limited,QueenswayHouse,HilgroveStreet,StHelier,JerseyJE11ES,ChannelIslands,oratsuchotherplaceasisspecifiedforthatpurposeinthenoticeofthe meeting or in the instrument of proxy issued by the Company at least 24 hours before the time appointed for holding the meeting or adjournedmeetingatwhichthepersonnamedintheinstrumentproposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,theinstrumentofproxyshallnotbetreatedasvalid.

3. Completion of the instrument appointing a proxy does not preclude a member from subsequently attending and voting at the meeting in personifhe/shesowishes.

4. Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesoftheHoldersstandintheregisterof members of the Company.

5. AspermittedbyRegulation40(1)oftheCompanies(UncertificatedSecurities)(Jersey)Order1999,onlypersonsenteredontheregisterofmembersoftheCompanynotlaterthan48hoursbeforethetimeappointedforthemeetingareentitledtoattendand/orvoteatthemeetingin respect of the number of shares registered in their name at that time. Changes to entries on the register of members after that time will bedisregardedindeterminingtherightsofanypersontoattendand/orvoteatthemeeting.

NOTICE OF ANNUAL GENERAL MEETING

Notes:1. AmemberoftheCompanyentitledtoattendandvoteattheabovementionedmeetingisentitledtoappointaproxytoattendand,onapoll,

tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.AproxyneednotbeamemberoftheCompany.Amembermay appoint more than one proxy to attend on the same occasion.

2. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority(ifany)underwhichitissigned,oranotariallycertifiedcopyofsuchpowerorauthority,shallbedepositedwiththeCompany’sregistrars,ComputershareInvestorServices(Jersey)Limited,QueenswayHouse,HilgroveStreet,StHelier,JerseyJE11ES,ChannelIslands,oratsuchotherplaceasisspecifiedforthatpurposeinthenoticeofthe meeting or in the instrument of proxy issued by the Company at least 24 hours before the time appointed for holding the meeting or adjournedmeetingatwhichthepersonnamedintheinstrumentproposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,theinstrumentofproxyshallnotbetreatedasvalid.

3. Completion of the instrument appointing a proxy does not preclude a member from subsequently attending and voting at the meeting in personifhe/shesowishes.

4. Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesoftheHoldersstandintheregisterof members of the Company.

5. AspermittedbyRegulation40(1)oftheCompanies(UncertificatedSecurities)(Jersey)Order1999,onlypersonsenteredontheregisterofmembersoftheCompanynotlaterthan48hoursbeforethetimeappointedforthemeetingareentitledtoattendand/orvoteatthemeetingin respect of the number of shares registered in their name at that time. Changes to entries on the register of members after that time will bedisregardedindeterminingtherightsofanypersontoattendand/orvoteatthemeeting.

FOR AGAINST WITHHOLDORDINARY RESOLUTIONS

1. THATtheCompany'saccountsandreportsoftheDirectorsandAuditorsfortheyearended 31 December 2012 be adopted.

2. THATDato'Dr.WanAzmibinAriffinisre-electedasaDirector.

3. THATDato'[email protected].

4. THATJeffreysHenryLLPofFinsgate,5-7CranwoodStreet,EC1V9EELondon,UnitedKingdombereappointedasAuditorsoftheCompany(inaccordancewithArticle 33of theArticles ofAssociation of theCompany) to hold officeuntil theconclusion of the next general meeting.

5. THATtheDirectorsbeauthorisedtofixtheremunerationoftheAuditors.

6. THATpursuanttoArticles2.3and2.4(c)oftheCompany'sArticlesofAssociation,theBoardofDirectorshavegeneralauthoritytoissueuptoandincluding31,889,634ordinary shares of 2.5p each in the share capital of the Company at their sole discretionwithoutreferencetppre-emptionrights,forcashbywayofgeneralmandate.

If by an individual:

Signed:....................................................................................

Dated:.............................................................................2013

If for and on behalf of a corporation:

Signed by: .................................................................................

for and on behalf of: ...................................................................

Position: ....................................................................................

Dated:.............................................................................2013

I/We:(fullname)……………………………………………………………………………………………...............................................

of:(address)…………………………………………………………………………………………………................................................

beingamemberofMobilityOneLimited,doherebyappoint:(fullname)…………………………………...........................................

orfailinghim:(fullname)……………………………………………………………………………………................................................

orfailinghimtheChairmanoftheMeetingasmy/ourproxytoattendtheAnnualGeneralMeetingofMobilityOneLimitedtobe

heldatMalaysianPetroleumClub,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,

Malaysiaon26July2013at9.00a.m.Malaysiatimeoranyadjournmentthereof.

Please indicate by marking “X” in the respective box. If no indication is given, your proxy will have discretion to vote or to abstain (including on any other matter which may properly come before the meeting as he/she thinks fit).

I/Werequestsuchproxytovoteasindictedbelow:

THEN FOLD HERE

FIRST FOLD HERE

AFFIXSTAMP

COMPANY'S REGISTRARSMOBILTYONE LIMITEDQUEENSWAY HOUSEHILGROVE STREET, ST. HELIERJERSEY JE1 1ESCHANNEL ISLANDS

FOLD THIS FLAP FOR SEALING

REGISTERED OFFICE

MobilityOneLimited28-30TheParadeSt HelierJersey JE1 1EQChannel Islands

BUSINESS ADDRESS

MobilityOneSdnBhd2-3,Incubator2TechnologyParkMalaysia,BukitJalil57000KualaLumpurMalaysia

Tel:+6(03)89963600Fax:+6(03)89963601

COMPANY INFORMATION - MobilityOne · Dato’ Hussian @ Rizal bin A. Rahman ... AND BROKER London...

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Transcript of COMPANY INFORMATION - MobilityOne · Dato’ Hussian @ Rizal bin A. Rahman ... AND BROKER London...