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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Asia Wealth Group Holdings Ltd | AQSE:AWLP | Aquis Stock Exchange | Ordinary Share | VGG0540E1097 | Ordinary shares |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 17.50 | 5.00 | 20.00 | 17.50 | 12.50 | 17.50 | 0.00 | 15:29:37 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMAWLP
FOR IMMEDIATE RELEASE
30 October 2020
Asia Wealth Group Holdings Limited
("Asia Wealth" or the "Company")
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHSED 31 AUGUST 2020
The Board is pleased to report the unaudited interim results of Asia Wealth
Group Holdings Limited ("Accounts") for the period from 1 March 2020 to 31
August 2020. These Accounts have been prepared under IFRS and will shortly be
available via the Company's website, www.asiawealthgroup.com.
Chairman's Statement
Financial Highlights
The highlights for the six months ended 31 August 2020 include:
* Consolidated revenue of US$894,083 (2019: US$797,019)
* Gross profit for Meyer Group of US$421,669 (representing a gross margin of
47%) (2019: US$326,518 and 42%)
* Cash at bank and on hand of US$0.9m at 31 August 2020 (2019:$0.7m).
The Group reports a profit after tax of US$0.106 million on sales of US$0.894
million for the six months ended 31 August 2020. These sales were principally
generated by the Company's wholly owned subsidiary, Meyer Asset Management
Ltd., BVI. This improvement in profitability was principally caused by revenue
increase.
Cash balance has increased by US$225,682 and net assets by US$107,600,
respectively, since 1st March 2020.
The Board has taken and is continuing to forge new revenue generating
relationships, as well as expanding revenue creating opportunities, in both new
avenues and existing. We continue to seek alliances and partnerships with firms
in the same and new sectors.
Asia Wealth continues to seek investment opportunities in the Asia region and
is currently engaged in multiple discussions on various potential
acquisitions. The Directors continue to run the business in a cost-effective
manner.
The Accounts have not been audited or reviewed by the Company's auditors.
The Directors of the Company accept responsibility for the content of this
announcement.
Richard Cayne
Executive Chairman
Contacts:
Richard Cayne (Executive Chairman)
Asia Wealth Group Holdings Limited, +66 2 2611 2561
www.asiawealthgroup.com
Guy Miller (Corporate Advisers)
Peterhouse Capital Limited, +44 20 7220 9795
EXTRACTS ARE SET OUT BELOW:
ASIA WEALTH GROUP HOLDINGS LIMITED
Consolidated Statement of Financial Position
At 31 August 2020
Expressed in U.S. Dollars
Note 31-Aug-20 31-Aug-19
Non-current assets
Fixed assets 3 4,363 10,233
Investment property 4 350,498 377,809
354,861 388,042
Current assets
Cash and cash equivalents 897,696 725,940
Trade receivables 113,354 227,525
Financial assets at fair value 5 228,979 230,302
through profit or loss
Loans and other receivables 6 709,264 647,426
Prepaid tax 1,421 1,321
Prepayments and other assets 90,222 83,742
2,040,936 1,916,256
Total assets $ 2,395,797 $ 2,304,298
Equity
Share capital 8 913,496 913,496
Treasury Shares 8 (318,162) (318,162)
Consolidation reserve 405,997 405,997
Translation reserve 30,594 32,209
Retained earnings 157,032 86,633
Total equity 1,188,957 1,120,173
Non-current liabilities
Liabilities under finance lease 9 - -
agreements
Current liabilities
Trade payables 1,116,497 1,064,832
Due to related parties 7 4,335 3,419
Liabilities under finance lease 9 - 4,796
agreements
Other payables and accrued expenses 86,008 111,078
1,206,840 1,184,125
Total liabilities 1,206,840 1,184,125
Total equity and liabilities $ 2,395,797 $ 2,304,298
ASIA WEALTH GROUP HOLDINGS LIMITED
Consolidated Statement of Comprehensive Income
For the half year ended 31 August 2020
Expressed in U.S. Dollars
Note Mar - Aug Mar - Aug
2020 2019
Revenue
Commission income 888,586 780,283
Rental income 4 5,497 16,736
Revenue 894,083 797,019
Expenses
Commission expense 473,844 455,983
Professional fees 7 128,918 144,529
Directors' fees 7 172,101 152,245
Impairment expense 3,083 -
Travel and entertainment 6,123 40,788
Office expenses 29,727 29,467
Wages and salaries 32,939 32,977
Depreciation 3, 4 12,500 17,776
Rent 7,795 9,109
Marketing expenses 3,497 2,830
Other expenses 5,169 5,594
875,696 891,298
Net profit/(loss) from operations 18,387 (94,279)
Other income/(expenses)
Foreign exchange gain/(loss) 30,275 18,402
Interest Income 39,428 38,799
Other income 17,798 310
87,501 57,511
Net profit/(loss) before finance 105,888 (36,768)
costs
Finance costs
Interest expense 60 460
Net profit/(loss) before taxation 105,828 (37,228)
Taxation 10 - -
Total comprehensive income/(loss) $ 105,828 $ (37,228)
ASIA WEALTH GROUP HOLDINGS LIMITED
Consolidated Statement of Changes in Equity
For the half year ended 31 August 2020
Expressed in U.S. Dollars
31-Aug-20
Share Capital Treasury Consolidation Translation Retained Equity
Shares Reserve Reserve Earnings
Number US$
Balances at beginning of 1 Mar 11,433,433 913,496 (318,162) 405,997 28,822 51,204 1,081,357
2020
Translation differences - - - 1,772 - 1,772
Total comprehensive income - - - - 105,828 105,828
Balances at end of 31 Aug 2020 11,433,433 913,496 (318,162) 405,997 30,594 157,032 1,188,957
31-Aug-19
Share Capital Treasury Consolidation Translation Retained Equity
Shares Reserve Reserve Earnings
Number US$
Balances at beginning of 1 Mar 11,433,433 913,496 (318,162) 405,997 29,325 123,861 1,154,517
2019
Translation differences - - - 2,884 - 2,884
Total comprehensive income/ - - - - (37,228) (37,228)
(loss)
Balances at end of 31 Aug 2019 11,433,433 913,496 (318,162) 405,997 32,209 86,633 1,120,173
ASIA WEALTH GROUP HOLDINGS LIMITED
Consolidated Statement of Cash Flows
For the half year ended 31 August 2020
Expressed in U.S. Dollars
Mar - Aug Mar - Aug
2020 2019
Operating activities
Total comprehensive income/(Loss) 105,828 (37,228)
Add back Depreciation 12,500 18,941
Receivables 67,098 (69,498)
Loan and Other Receivable (38,638) (24,408)
Prepayments and other assets 3,267 5,070
Payables 114,765 (250,466)
Liabilities Under Finance Lease - (4,539)
Agreements
Deferred Revenue (2,702) (14,890)
Other Payables and Accrued Expenses (31,018) 30,811
Cash flows from/(used in) operating 231,100 (346,207)
activities
Investing activities
Acquisition of fixed assets (11,966) (15,636)
Investments 4,738 714
Change in equity 1,817 2,884
Cash flows from/(used in) investing (5,411) (12,038)
activities
Financing activities
Net advances from related party (7) 305
Cash flows from/(used in) financing (7) 305
activities
Net increase/(decrease) in cash and 225,682 (357,940)
cash equivalents
Cash and cash equivalents at beginning 672,014 1,083,880
of year
Cash and cash equivalents at end of $ 897,696 $ 725,940
period
Cash and cash equivalents comprise
cash at bank.
ASIA WEALTH GROUP HOLDINGS LIMITED
Notes to and forming part of the Consolidated Financial Statements
For the half year ended 31 August 2020
Expressed in U.S. Dollars
1) GENERAL INFORMATION
Asia Wealth Group Holdings Limited (the "Parent Company") was incorporated in
the British Virgin Islands on 7 October 2010 under the BVI Business Companies
Act, 2004. The liability of the shareholders is limited by shares. The Parent
Company maintains its registered office in the British Virgin Islands. The
consolidated financial statements were authorised for issue by the Board of
Directors on 31 October 2020.
The principal activity of the Parent Company and its subsidiaries (the "Group")
is to provide wealth management advisory services to Asian-based high net worth
individuals and corporations.
The Parent Company's shares were listed on the PLUS Stock Exchange based in
London, United Kingdom. In June 2012, ICAP Plc, an interdealer broker based in
London, United Kingdom, bought PLUS Stock Exchange and rebranded and relaunched
it as ICAP Securities & Derivatives Exchange ("ISDX"). On 30 December 2016,
ISDX was renamed NEX Exchange. The Parent Company's shares were automatically
admitted to NEX Exchange.
The Parent Company has the following subsidiaries as at 31 August 2020 and 31
August 2019:
Incorporation Country of Functional Ownership
Date Incorporation Currency Interest
2020 2019
Meyer Asset Management 2000 British US Dollars 100.00% 100.00%
Ltd. ("Meyer BVI") Virgin
Islands
Meyer International 2010 Thailand Thailand 49.00% 49.00%
Limited ("Meyer Thailand") Baht
Prime RE Limited ("Prime 2016 Thailand Thailand 49.00% 49.00%
RE") Baht
On 13 June 2012, Meyer BVI was licensed to provide investment business services
under Section 3 of the Securities and Investment Business Act, 2010 of the
British Virgin Islands.
On 23 September 2016, Meyer Thailand acquired 51.00% of Prime RE.
On 20 October 2016, 51.00% of Meyer Thailand, owned beneficially via a trust
agreement in favour of Meyer BVI, was acquired by Prime RE.
The Parent Company is the indirect owner of 51.00% of the outstanding shares of
Prime RE and Meyer Thailand, and accordingly the Parent Company has accounted
for them as wholly owned subsidiaries.
2) SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in the preparation of the Group's
consolidated financial statements are set out below.
a) Statement of compliance
The consolidated financial statements of the Group have been prepared in
accordance with International Financial Reporting Standards ("IFRSs") and
interpretations issued by the IFRS Interpretations Committee ("IFRS IC")
applicable to companies reporting under IFRSs. The financial statements comply
with IFRSs as issued by the International Accounting Standards Board ("IASB").
b) Basis of preparation
The consolidated financial statements have been prepared on the basis of
historical costs and do not take into account increases in the market value of
assets except financial assets at fair value through profit or loss.
The Group's financial records and statements are maintained and presented in
U.S. Dollars, rounded to the nearest dollar.
The accounting policies have been consistently applied by the Group and are
consistent with those used in the previous year.
There are no new, revised or amended IFRSs or IFRS IC interpretations that are
effective for the first time for the financial period beginning 1 March 2020
that would be expected to have a material impact on the Group's consolidated
financial statements.
c) Use of estimates
The preparation of consolidated financial statements in conformity with IFRSs
requires management to make judgments, estimates and assumptions that affect
the application of policies and the reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making the judgments about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period
of the revision and future periods if the revision affects both current and
future periods.
d) Investment in subsidiaries
Basis of consolidation
The consolidated financial statements include the financial statements of the
Parent Company and its subsidiaries for the six months ended 31 August 2020.
Details of the Group are set out in note 1.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
d) Investment in subsidiaries (Cont'd)
Basis of consolidation (Cont'd)
Subsidiaries are enterprises controlled by the Parent Company. Control is
achieved when the Parent Company is exposed or has rights to variable returns
from its involvement with the investee and has the ability to affect those
returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Parent Company. Assets, liabilities, income and expenses of
a subsidiary acquired or disposed of during the year are included or excluded
in the consolidated financial statements from the date the Parent Company gains
control or until the date the Parent Company ceases to control the subsidiary.
Non-controlling interests pertain to the equity in a subsidiary not
attributable, directly or indirectly to the Parent Company. Any equity
instruments issued by a subsidiary that are not owned by the Parent Company are
non-controlling interests including preferred shares and options under
share-based transactions.
Non-controlling interests represent the portion of profit or loss and net
assets in subsidiaries not wholly-owned and are presented in the consolidated
statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of financial position, separately from the Parent
Company's equity.
Losses within a subsidiary are attributed to the non-controlling interests even
if that results in a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control,
is accounted for as an equity transaction. Any difference between the amount
by which the non-controlling interests are adjusted and the fair value of the
consideration paid or received is recognised directly in equity as an "equity
reserve" and attributed to the owners of the Group.
Where necessary, adjustments are made to the financial statements of the
subsidiary to bring the accounting policies used in line with those used by the
Parent Company.
All intra-group transactions, balances, income and expenses are eliminated in
consolidation. Unrealised losses are eliminated in the same way as unrealised
gains, but only to the extent that there is no evidence of impairment.
Acquisitions
The acquisition method of accounting is used to account for business
combinations by the Group.
The consideration transferred for the acquisition of a subsidiary or business
comprises the fair value of the assets transferred, the liabilities incurred
and the equity interests issued by the Group. The consideration transferred
also includes the fair value of any contingent consideration arrangement and
the fair value of any pre-existing equity interest in the subsidiary.
Acquisition-related costs are expensed as incurred.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
d) Investment in subsidiaries (Cont'd)
Acquisitions (Cont'd)
Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are, with limited exceptions, measured initially at
their fair values at the acquisition date.
On an acquisition-by-acquisition basis, the Group recognises any
non-controlling interest in the acquiree at the date of acquisition either at
fair value or at the non-controlling interest's proportionate share of the
acquiree's net identifiable assets.
The excess of (i) the consideration transferred, the amount of any
non-controlling interest in the acquiree and the acquisition-date fair value of
any previous equity interest in the acquiree over the (ii) fair value of the
net identifiable assets acquired is recorded as goodwill.
Where settlement of any part of cash consideration is deferred, the amounts
payable in the future are discounted to their present value as at the date of
exchange. The discount rate used is the entity's incremental borrowing rate,
being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial
liability. Amounts classified as a financial liability are subsequently
remeasured to fair value with changes in fair value recognised in profit or
loss.
If the business combination is achieved in stages, the acquisition date
carrying value of the acquirer's previously held equity interest in the
acquiree is remeasured to fair value at the acquisition date. Any gains or
losses arising from such remeasurement are recognised in profit or loss.
e) Fixed assets
Fixed assets are stated at historical cost less accumulated depreciation and
impairment loss, if any. Depreciation is charged to the consolidated statement
of comprehensive income on a straight line basis over the estimated useful
lives of the fixed assets.
The annual rates of depreciation in use are as follows:
Leasehold improvements 20%
Office equipment 20-33%
Vehicles 20%
Subsequent costs are included in the asset's carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. The carrying amount of any component accounted
for as a separate asset is derecognised when replaced. All other repairs and
maintenance are charged to profit or loss during the reporting period in which
they are incurred.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
f) Investment property
Investment property is property held either to earn rental income or capital
appreciation or for both, but not for sale in the ordinary course of business,
use in the production or supply of goods or services or for administrative
purposes. Investment property is initially measured at cost and subsequently at
cost less any accumulated depreciation and impairment losses (refer to
accounting policy (o)), if any, with any change therein recognised in the
consolidated statement of comprehensive income.
Investment property comprises condominium units.
Cost includes expenditure that is directly attributable to the acquisition of
investment property. The cost of self-constructed investment property includes
the cost of materials and direct labour, any other costs directly attributable
to bringing the investment property to a working condition for its intended use
and capitalised borrowing costs.
Any gain or loss on disposal of an investment property (calculated as the
difference between the net proceeds from disposal and the carrying amount of
the item) is recognised in the consolidated statement of comprehensive income.
When an investment property that was previously classified as property, plant
and equipment is sold, any related amount included in the revaluation reserve
is transferred to retained earnings.
When the use of property changes such that it is reclassified as fixed assets,
its fair value at the date of reclassification becomes its cost for subsequent
accounting.
Depreciable investment property is stated at cost less accumulated
depreciation. Depreciation is charged to the consolidated statement of
comprehensive income on a straight-line basis over the estimated useful lives
of the investment property.
The annual rate of depreciation in use for condominium units is 5%.
Subsequent expenditure incurred is capitalised only when it increases the
future economic benefits embodied in that property. All other expenditure is
recognised in the consolidated statement of comprehensive income when it is
incurred.
g) Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows,
cash includes current deposits with banks and other short-term highly liquid
investments with original maturities of three months or less that are readily
convertible to known amounts of cash, are subject to an insignificant risk of
changes in value, and bank overdrafts.
h) Financial assets measured at fair value through profit or loss
("FVTPL")
A financial asset is measured at fair value through profit or loss or other if;
i) its contractual terms do not give rise to cash flows on specified dates
that are solely payments of principal and interest ("SPPI") on the principal
amount outstanding; or
ii) it is not held within a business model whose objective is either to
collect contractual cash flows, or to both collect contractual cash flows and
sell; or
2) SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
h) Financial assets measured at fair value through profit or loss
("FVTPL") (Cont'd)
iii) at initial recognition, it is irrevocably designated as measured at
fair value through profit or loss when doing so eliminates or significantly
reduces a measurement or recognition inconsistency that would otherwise arise
from measuring assets or liabilities or recognising the gains and losses on
them on different bases.
The Group recognises financial assets measured at FVTPL when it becomes a party
to the contractual provisions of an instrument. The Group's financial assets
measured at FVTPL comprise investment in fund.
Financial assets measured at FVTPL are recorded in the consolidated statement
of financial position at fair value. All transaction costs for such
instruments are recognised directly in profit or loss.
Subsequent to initial recognition, all financial assets measured at FVTPL are
measured at fair value. Gains and losses arising from changes in the fair
value are presented in the consolidated statement of comprehensive income
within other net changes in fair value of financial assets and liabilities at
fair value through profit or loss in the period in which they arise.
i) Financial assets at amortised cost
Financial assets at amortised cost comprise cash and cash equivalents, trade
receivables and loans and other receivables. Financial assets are recognised
initially at fair value plus transaction costs that are directly attributable
to its acquisition. These financial assets are held for collection of
contractual cash flows representing solely payments of principal and interest,
if any, and therefore are measured subsequently at amortised cost using the
effective interest method. Any gain or loss arising on derecognition is
recognised directly in profit or loss and presented in other gains/(losses)
together with foreign exchange gains and losses. Impairment losses are
presented as a separate line item in the consolidated statement of
comprehensive income.
Regular way purchases and sales are recognised on the trade-date, the date on
which the Group commits to purchase or sell the asset. Financial assets are
derecognised when the rights to receive cash flows from the financial assets
have expired or have been transferred and the Group has transferred
substantially all the risks and rewards of ownership.
The Group applies the general approach permitted by IFRS 9, "Financial
Instruments" ("IFRS 9") which requires expected credit losses ("ECL") to be
recognised based on the full three-stage model as follows:
* Stage 1: Items that have not deteriorated significantly in credit quality
since initial recognition. A loss allowance equal to 12-month ECL is
recognised and interest income is calculated on the gross carrying amount
of the financial asset.
* Stage 2: Items that have deteriorated significantly in credit quality since
initial recognition but do not have objective evidence of a credit loss
event. A loss allowance equal to lifetime ECL is recognised but interest
income is still calculated on the gross carrying amount of the asset.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
i) Financial assets at amortised cost (Cont'd)
* Stage 3: Items that have objective evidence of impairment at the reporting
date. A loss allowance equal to lifetime ECL is recognised and interest
income is calculated on the net carrying amount.
The Group considers a receivable in default when contractual payments are over
365 days past due. However, in certain cases, the Group may also consider a
receivable to be in default when internal and external information indicates
that the Group is unlikely to receive the outstanding contractual amounts in
full before taking into account any credit enhancements held by the Group. A
receivable is written off when there is no reasonable expectation of recovering
the contractual cash flows.
Receivables for which an impairment provision is recognised, are written off
against the provision, when there is no expectation of recovering additional
cash.
Impairment losses are presented as a separate line item in the consolidated
statement of comprehensive income.
See note 13(b).
j) Financial liabilities at amortised cost
Financial liabilities are non-derivative contractual obligations to deliver
cash or another financial asset to another entity and comprise trade payables,
due to director and other payables and accrued expenses.
These financial liabilities are initially recognised at fair value on the date
the Group becomes a party to the contractual provisions of an instrument and
are subsequently measured at amortised cost using the effective interest
method.
Financial liabilities are derecognised when the obligation specified in a
contract is discharged, cancelled or expired.
k) Leases
Leases of equipment where the Group assumes substantially all the benefits and
risks of ownership are classified as finance leases. Finance leases are
capitalised at the estimated present value of the underlying lease payments.
Each lease payment is allocated between the liability and finance charges so as
to achieve a constant rate on the finance balance outstanding. The
corresponding rental obligations, net of finance charges, are recorded as
long-term liabilities. The finance charge is taken to the consolidated
statement of comprehensive income over the lease period. Assets acquired under
finance lease agreements are depreciated over their useful lives.
Leases of assets under which all the risks and rewards of ownership are
effectively retained by the lessor are classified as operating leases.
Payments made under operating leases are charged to the consolidated statement
of comprehensive income on a straight line basis over the term of the lease.
When an operating lease is terminated before the lease term has expired, any
penalty is recognised as an expense in the period in which the termination
takes place.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
l) Share capital, treasury shares and retained earnings/accumulated
deficit
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of ordinary shares are recognised as a deduction from
equity.
Where any Group company purchases the Parent Company's equity instruments, for
example as the result of a share buy-back or a share-based payment plan, the
consideration paid, including any directly attributable incremental costs (net
of income taxes) is deducted from equity attributable to the owners of the
Group as treasury shares until the shares are cancelled or reissued. Where such
ordinary shares are subsequently reissued, any consideration received, net of
any directly attributable incremental transaction costs and the related income
tax effects, is included in equity attributable to the owners of the Group.
Retained earnings/accumulated deficit represent the cumulative balance of
periodic net income/loss, dividend distributions and prior period adjustments.
m) Share-based payment
The Group entered into a series of equity-settled, share-based payment
transactions, under which the Group received services from a third party as
consideration for equity instruments (shares, options or warrants) of the
Group.
For non-vesting share-based payments, the fair value of the service received in
exchange for the shares is recognised as an expense immediately with a
corresponding credit to share capital.
For share-based payments with vesting periods, the service received is
recognised as an expense by reference to the fair value of the share options
granted or warrants issued. The total expense is recognised over the vesting
period, which is the period over which all of the specified vesting conditions
are to be satisfied with a corresponding credit to the share capital reserve.
n) Revenue and expense recognition
In relation to the rendering of professional services, the Group recognises fee
income as time is expended and costs are incurred, provided the amount of
consideration to be received is reasonably determinable and there is reasonable
expectation of its ultimate collection.
Rental income arising from operating leases on investment property is
recognised in the consolidated statement of comprehensive income on a straight
line basis over the term of the lease.
Interest income is recognised in the consolidated statement of comprehensive
income as it accrues.
All expenses are recognised in the consolidated statement of comprehensive
income on the accrual basis.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
o) Impairment
The carrying amounts of the Group's assets are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such
indication exists, the asset's recoverable amount is estimated. The
recoverable amount is estimated as the greater of an asset's net selling price
or value in use. An impairment loss is recognised in the consolidated
statement of comprehensive income whenever the carrying amount of an asset or
its cash-generating unit exceeds its recoverable amount.
If in a subsequent period, the amount of an impairment loss decreases and the
decrease can be linked objectively to an event occurring after the write-down,
the write-down is reversed through the consolidated statement of comprehensive
income.
An impairment is reversed only to the extent that the asset's carrying amount
does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.
p) Offsetting
Financial assets and liabilities are offset and the net amount is reported in
the consolidated statement of financial position whenever the Group has a
legally enforceable right to set off the recognised amounts and the
transactions are intended to be settled on a net basis.
q) Foreign currency
Functional and presentation currency
The subsidiaries' functional currencies are disclosed in note 1 to the
financial statements. The consolidated financial statements are presented in
U.S. Dollars, rounded off to the nearest dollar.
Transactions and balances
Transactions in foreign currencies are converted at the foreign currency
exchange rate ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated at the foreign
currency closing exchange rate ruling at the reporting date. Foreign currency
exchange differences arising on conversion or translation and realised gains
and losses on disposals or settlements of monetary assets and liabilities are
recognised in the consolidated statements of income and comprehensive income.
Non-monetary assets and liabilities denominated in foreign currencies that are
measured at fair value are translated at the foreign currency exchange rates
ruling at the dates that the values were determined. Foreign currency exchange
differences relating to investments are included in net realised/unrealised
gain/(loss) on investments. All other foreign currency exchange differences
relating to monetary items, including cash and cash equivalents, are presented
in the consolidated statements of income and comprehensive income.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
q) Foreign currency (Cont'd)
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair
value adjustments arising on acquisition, are translated into U.S. Dollars at
the exchange rates ruling at the reporting date. The income and expenses of
foreign operations are translated into U.S. Dollars at the average rate. The
net differences arising from translation and remeasurement of foreign
operations are recognised as other comprehensive income and accumulated in a
separate reserve within equity. The cumulative amount is reclassified to
profit and loss when the foreign operation is disposed of.
None of the foreign operations has the currency of a hyperinflationary economy.
Translation reserve
Assets and liabilities of the Group's non-U.S. Dollar functional currency
subsidiaries are translated into U.S. Dollars at the closing exchange rates at
the reporting date. Revenues and expenses are translated at the average
exchange rates for the year. All cumulative differences from the translation
of the equity of foreign subsidiaries resulting from changes in exchange rates
are included in a separate caption within equity without affecting income.
r) Related parties
Related parties are individuals and entities where the individual or entity has
the ability, directly or indirectly, to control the other party or exercise
significant influence over the other party in making financial and operating
decisions.
s) Segment reporting
The Group's operating businesses are organised and managed separately according
to geographical area, with each segment representing a strategic business unit
that serves a different market. Financial information on business segments is
presented in note 12 of the consolidated financial statements.
t) Taxation
Taxation on net profit before taxation for the year comprises both current and
deferred tax.
Current tax is the expected income tax payable on the taxable income for the
year, using tax rates enacted or substantially enacted at the reporting date
and any adjustment to tax payable in respect of previous years in the countries
where the Parent Company and its subsidiaries operate and generate taxable
income.
2) SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
t) Taxation (Cont'd)
The Group accounts for income taxes in accordance with IAS 12, "Income Taxes,"
which requires that a deferred tax liability be recognised for all taxable
temporary differences and a deferred tax asset be recognised for an
enterprise's deductible temporary differences, operating losses, and tax credit
carryforwards. A deferred tax asset or liability is measured using the
marginal tax rate that is expected to apply to the last dollars of taxable
income in future years. The effects of enacted changes in tax laws or rates
are recognised in the period that includes the enactment date.
u) Amended and newly issued accounting standards not yet adopted
A number of new standards, amendments to standards and interpretations are
effective for annual periods beginning after 1 March 2019, and have not been
adopted early in preparing these consolidated financial statements. None of
these are expected to have a significant effect on the consolidated financial
statements of the Group.
3) FIXED ASSETS
Leasehold Office Vehicles Total
improvement equipment
Cost:
At 29 February 2020 20,281 41,123 55,392 116,796
Disposal - - - -
Additions - 975 - 975
At 31 August 2020 20,281 42,098 55,392 117,771
Depreciation:
At 29 February 2020 20,281 36,295 55,278 111,854
Disposal - - - -
Charge for 1 March - 31 August - 1,504 50 1,554
2020
At 31 August 2020 20,281 37,799 55,328 113,408
Net book value:
At 31 August 2020 $ $ $ $
- 4,299 64 4,363
At 29 February 2020 $ $ $ $
- 4,828 114 4,942
As at 31 August 2020, the Group had fixed assets with a net book value of $0
(2019 : $4,342)under a finance lease agreement (refer to note 9).
4) INVESTMENT PROPERTY
Condominium units
Cost:
At 29 February 2020 427,967
Translation reserve 7,479
At 31 August 2020 435,446
Depreciation:
At 29 February 2020 72,731
Translation reserve 1,271
Charge for 1 March - 31 August 10,946
2020
At 31 August 2020 84,948
Net book value:
At 31 August 2020 $ 350,498
At 29 February 2020 $ 355,236
Investment property comprises condominium units at The Prime 11 Condominium in
Bangkok, Thailand. Management's estimate of the market value of the investment
property at half year end was $350,498 (2019: $377,809).
Rental income arising from the investment properties during the half year
amounted to $5,497 (2019: $16,736).
5) FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
31-Aug-20 31-Aug-19
Investment in fund 228,979 230,302
Investment in private equity
- -
$ 228,979 $ 230,302
Investment in Phillip Investment Fund
The investment in Phillip Investment Fund in Singapore comprises 310,608.32
(2019: 310,608.32) units in Phillip Money Market Fund. The amount of investment
recognised in the consolidated statement of financial position is $228,979
(2019: $230,302).
Investment in Ray Alliance Financial Advisers Pte Ltd
On 12 June 2012, the Parent Company acquired a 15% equity interest in Ray
Alliance Financial Advisers Pte Ltd ("Ray Alliance") for a consideration of
322,000 shares issued at GBP0.70 per share. The Parent Company also issued
16,100 shares at GBP0.60 per share in consideration for the advisory services
provided during the transaction. The total cost of the investment amounted to
$318,162.
5) FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Cont'd)
Investment in Ray Alliance Financial Advisers Pte Ltd (Cont'd)
In June 2016, it came to the attention of the Group that the 45,000 ordinary
shares in Ray Alliance owned by the Parent Company had been transferred without
any authorisation by the Parent Company to the two other shareholders of Ray
Alliance. At that stage it was not known how the transfer was done without the
authorisation or consent of the Parent Company. Under the circumstances, the
Parent Company considered the unauthorised transfer to be wrongful and entirely
without legal basis.
The Parent Company engaged a Singapore law firm and took legal advice on the
matter. The Parent Company considered various options including taking legal
action against the appropriate parties. Through its solicitors, the Parent
Company made a demand to the two other shareholders to immediately transfer
back to the Parent Company the said 45,000 ordinary shares in Ray Alliance.
On 26 September 2018, the Parent Company entered into a Settlement Agreement
with the appropriate parties and agreed to settle on a full and final basis all
claims, disputes and differences with regard to the unauthorised transfer of
shares in Ray Alliance.
The following was agreed by the parties under the Settlement Agreement:
a) the Group consented and ratified the transfer of Ray Alliance Shares;
b) return of 322,000 shares of the Parent Company previously issued as
consideration for the Ray Alliance shares;
c) payment of SGD 350,000 to the Parent Company for claims on costs and
damages.
Treasury shares recognised by the Group for the return of the Parent Company's
shares amounted to $318,162 (2019: $318,162).
6) LOAN RECEIVABLE
On 8 February 2019, Meyer BVI entered into a Loan Agreement with MVT
Development Ltd. amounting to THB 16,000,000. The loan earns interest at a rate
of 15% per annum. The loan is secured and is guaranteed with a property in
Bangkok, Thailand.
The loan was due on 8 February 2020. However, MVT Development Ltd. was not able
to repay the loan on the due date. Meyer BVI and MVT Development Ltd. are
currently in negotiations over the repayment terms.
Interest income during the half year amounted to $38,197 (2019: $38,781), of
which $101,576 was outstanding as at half year end (2019: $24,246).
7) RELATED PARTY TRANSACTIONS
The Group was charged $21,746 (2019: $19,081) in accounting fees by
Administration Outsourcing Co., Ltd, a company related by way of common
directorship, of which $3,554 (2019: $3,769) remained outstanding as at half
year end.
7) RELATED PARTY TRANSACTIONS (Cont'd)
During the half year, the Group incurred directors' fees, inclusive of school
fees and accommodation allowance, amounting to $172,101 (2019: $152,245).
As at 31 August 2020, due to director amounted to $4,335 (2019: $3,419). The
amount due is unsecured, interest-free and repayable on demand.
8) SHARE CAPITAL AND TREASURY SHARES
Authorised
The Parent Company is authorised to issue an unlimited number of no par value
shares of a single class.
Issued and fully paid: 31-Aug-20 31-Aug-19
11,433,433 (2019: 11,433,433) shares of no par $ $
value per share. 913,496 913,496
Each share in the Parent Company confers upon the shareholder:
a) the right to one vote on any resolution of shareholders;
b) the right to an equal share in any dividend paid by the Parent Company;
and
c) the right to an equal share in the distribution of the surplus assets
of the Parent Company on its liquidation.
Treasury Shares
As discussed in note 5, the Parent Company acquired treasury shares of 322,000
(2019: 322,000) amounting to $318,162 (2019: $318,162). This resulted from the
Settlement Agreement entered into by the Parent Company on 26 September 2018
relating to the unauthorised transfer of Ray Alliance shares.
9) LEASES
31-Aug-20 31-Aug-19
Liabilities under finance lease agreement:
Less than 1 year - 4,796
1 to 5 years - -
Total - 4,796
Less: Deferred interest - (324)
- 4,472
Less: Current portion net of short term deferred - (4,472)
interest
Net $ $
- -
10) TAXATION
There is no mainstream taxation in the British Virgin Islands. The Parent
Company and Meyer BVI are not subject to any forms of taxation in the British
Virgin Islands, including income, capital gains and withholding taxes.
Meyer Thailand and Prime RE are subject to Thailand graduated statutory income
tax at a rate of 0-15% (2019: 0-15%) on profit before tax.
The current tax expense included in the consolidated statement of comprehensive
income was $nil (2019 : $nil).
The Group had no deferred tax assets or liabilities as at the reporting date.
11) EARNINGS PER SHARE
a) Basic
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Parent Company by the weighted average number of shares
in issue during the year excluding treasury shares.
31-Aug-20 31-Aug-19
Earnings attributable to equity holders of the $ $
Parent Company 105,828 (37,228)
Weighted average number of shares in issue 11,433,433 11,433,433
Adjusted for weighted average number of:
- treasury shares (322,000) (322,000)
Weighted average number of shares in issue and 11,111,433 11,111,433
for basic earnings for share
Basic earnings per share $ $
0.00952 (0.00335)
b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average
number of shares outstanding to assume conversion of all dilutive potential
shares. As at 31 August 2020 and 2019, the Parent Company had no share warrants
or share options as potential dilutive shares. For the share options and
warrants, if any, a calculation is done to determine the number of shares that
could have been acquired at fair value based on the monetary value of the
subscription rights attached to outstanding share options and warrants. The
number of shares calculated is compared with the number of shares that would
have been issued assuming the exercise of the share options and warrants.
11) EARNINGS PER SHARE (Cont'd)
31-Aug-20 31-Aug-19
Earnings attributable to equity holders of the $ $
Parent Company 105,828 (37,228)
Weighted average number of shares in issue and 11,111,433 11,111,433
for diluted earnings for share
Diluted earnings per share $ $
0.00952 (0.00335)
12) SEGMENTAL INFORMATION
The Group has three reportable segments based on geographical areas where the
Group operates and these were as follows:
British Virgin Islands ("BVI") - where the Parent Company and Meyer BVI are
domiciled. The Parent Company serves as the investment holding company of the
Group and Meyer BVI provides wealth management and advisory services.
Thailand - where Meyer Thailand is domiciled and provides marketing and
economic consulting services to the Group and where Prime RE is domiciled and
provides property rental services.
The reportable segmental revenue, other profit and loss disclosures, assets and
liabilities were as follows:
Revenue
31-Aug-20 31-Aug-19
Total Inter-segment Revenue Total Inter-segment Revenue
segment revenue from segment revenue from
revenue external revenue external
customers customers
BVI 883,596 - 883,596 780,283 - 780,283
Thailand 108,137 (97,650) 10,487 138,126 (121,390) 16,736
Total $991,733 $(97,650) $894,083 $918,409 $(121,390) $797,019
The revenue between segments is carried out at arm's length. Revenues from two
customers of the BVI segment represent approximately 60% (2019: 74%) of the
Group's total revenues.
12) SEGMENTAL INFORMATION (Cont'd)
Other profit and loss disclosures
31-Aug-20 31-Aug-19
Commission Depreciation Income tax Commission Depreciation Income tax
expense expense
BVI 471,964 732 - 454,075 371 -
Thailand 1,880 11,768 - 1,908 17,405 -
Total $473,844 $12,500 $- $455,983 $17,776 $-
Assets
31-Aug-20 31-Aug-19
Total Total
Assets Assets
BVI 1,920,799 1,795,151
Thailand 474,998 509,147
Total $2,395,797 $2,304,298
Intersegment assets amounting to $873,850 (2019: $944,653) were already
eliminated in the total assets per segment above.
Liabilities
31-Aug-20 31-Aug-19
Total Total
Liabilities Liabilities
BVI 1,133,073 1,112,543
Thailand 73,767 71,582
Total $1,206,840 $1,184,125
Intersegment liabilities amounting to $748,174 (2019: $818,000) were already
eliminated in the total liabilities per segment above.
13) FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS
Financial assets of the Group include cash and cash equivalents, trade
receivables, loans and other receivables and financial assets at fair value
through profit or loss. Financial liabilities include trade payables, due to
director and other payables and accrued expenses.
The Group has exposure to a variety of financial risks that are associated with
these financial instruments. The most important types of financial risk to
which the Group is exposed are market risk, credit risk and liquidity risk.
The Group's overall risk management program is established to identify and
analyse this risk, to set appropriate risk limits and controls, and to monitor
risks and adherence to limits in an effort to minimise potential adverse
effects on the Group's financial performance.
13) FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS (Cont'd)
a) Market risk
Market risk represents the potential loss that can be caused by a change in the
market value of the Group's financial instruments. The Group's exposure to
market risk is determined by a number of factors which include interest rate
risk and currency risk.
Interest rate risk
The financial instruments exposed to interest rate risk comprise cash and cash
equivalents.
The Group is exposed to interest rate cash flow risk on cash and cash
equivalents, which earn interest at floating interest rates that are reset as
market rates change. The Group is exposed to interest rate risk to the extent
that these interest rates may fluctuate.
A sensitivity analysis was performed with respect to the interest-bearing
financial instruments with exposure to fluctuations in interest rates and
management noted that there would be no material effect to shareholders' equity
or net income for the year.
Currency risk
The Group may invest in financial instruments and enter into transactions
denominated in currencies other than its functional currency. Consequently,
the Group is exposed to risk that the exchange rate of its currency relative to
other foreign currencies may change in a manner that has an adverse affect on
the value of that portion of the Group's assets or liabilities denominated in
currencies other than the U.S. Dollar.
The Group's total net exposure to fluctuations in foreign currency exchange
rates at the reporting date stated in U.S. Dollars was as follows:
31-Aug-20 31-Aug-19
Fair value % of net Fair value % of net
assets assets
Assets
Thailand Baht $907,087 76.29% $952,041 84.99%
Japanese Yen $645,666 54.31% $420,491 37.54%
Singaporean Dollar $228,979 19.26% $230,302 20.56%
Euro $88,071 7.41% $149,179 13.32%
United Kingdom $36,347 3.06% $60,688 5.42%
Pound
$ 160.32% $ 161.82%
1,906,151 1,812,701
The table below summarises the sensitivity of the net assets to changes in
foreign exchange movements at 31 August 2020. The analysis is based on the
assumption that the relevant foreign exchange rate increased/decreased against
the U.S. Dollar by the percentages disclosed in the table below, with all other
variables held constant. This represents management's best estimate of a
reasonable possible shift in the foreign exchange rates, having regard to
historical volatility of those rates.
13) FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS (Cont'd)
a) Market risk (Cont'd)
31-Aug-20 31-Aug-19
Possible Possible Possible Possible
shift in shift in shift in shift in
rate amount rate amount
Thailand Baht 2.32% $21,044 3.13% $29,799
Japanese Yen 2.58% $16,658 4.00% $16,820
Singaporean Dollar 1.49% $3,412 5.44% $12,528
Euro 1.20% $1,057 2.91% $4,341
United Kingdom 3.04% $1,105 6.27% $3,805
Pound
$ $
43,276 67,293
b) Credit risk
Credit risk represents the accounting loss that would be recognised at the
reporting date if financial instrument counterparties failed to perform as
contracted.
As at 31 August 2020 and 2019, the Group's financial assets exposed to credit
risk amounted to the following:
31-Aug-20 31-Aug-19
Cash and cash equivalents 897,696 725,940
Trade receivables 113,354 227,525
Financial assets at fair value through 228,979 230,302
profit or loss
Loans and other receivables 709,264 647,426
$1,949,293 $1,831,193
i) Risk management
The extent of the Group's exposure to credit risk in respect of these financial
assets approximates their carrying values as recorded in the Group's
consolidated statement of financial position.
The Group invests all its available cash and cash equivalents in several
banks. The Group is exposed to credit risk to the extent that these banks may
be unable to repay amounts owed. To manage the level of credit risk, the Group
attempts to deal with banks of good credit standing, whenever possible.
13) FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS (Cont'd)
b) Credit risk (Cont'd)
i) Risk management (Cont'd)
The Group's exposure to credit risk is influenced mainly by the individual
characteristics of each customer. To reduce exposure to credit risk, the Group
may perform ongoing credit evaluations on the financial condition of its
customers, but generally does not require collateral. The Group has
significant exposure to a small number of customers, the two largest owing
$34,699 (2019: $156,320) as at year end, which represents 28% (2019: 67%) of
gross trade receivables. The Group is exposed to credit-related losses in the
event of non-performance by these customers. The exposure to credit risk is
reduced as these customers have a good working relationship with the Group and
management does not expect any significant customer to fail to meet its
obligations.
The Group is exposed to credit risk with respect to its investments.
Bankruptcy or insolvency of the investee companies may cause the Group's rights
to the security to be delayed or become limited.
The ageing of the Group's gross trade receivables as at half year end is as
follows:
31-Aug-20 31-Aug-19
1 - 90 days 111,075 114,613
Over 90 days 10,851 120,002
Allowance for doubtful (8,572) (7,090)
$113,354 $227,525
ii) Security
For some trade receivables, the Group may obtain security in the form of
guarantees, deeds of undertaking or letters of credit which can be called upon
if the counterparty is in default under the terms of their agreement.
iii) Impairment of financial assets
The Group applies the IFRS 9 general approach to measuring ECL based on the
full three-stage model.
The Group determined the ECL based on probability-weighted outcome, the time
value of money and reasonable and supportable information that is available
without undue cost or effort at the reporting date about past events, current
conditions and forecast of future economic conditions. The assessment also
considered borrower specific information.
To measure the expected credit losses, trade receivables have been grouped
based on shared credit risk characteristics and the days past due.
13) FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS (Cont'd)
b) Credit risk (Cont'd)
iii) Impairment of financial assets (Cont'd)
The expected loss rates are based on the payment profiles of revenues over a
period of 36 months before 31 August 2020 and 2019 respectively and the
corresponding historical credit losses experienced within this period. The
historical loss rates are adjusted to reflect current and forward-looking
information on macroeconomic factors affecting the ability of the customers to
settle the receivables.
On that basis, the loss allowance as at 31 August 2020 and 2019 was determined
as follows:
Expected
Balance at Credit Loss Allowance at
31-Aug-20 Loss Rate 31-Aug-20
Trade $113,354 7.56% $8,572
receivables
Expected
Balance at Credit Loss Allowance at
31-Aug-19 Loss Rate 31-Aug-19
Trade $227,525 3.12%
receivables 7,090
The closing loss allowances for trade receivables as at 31 August 2020 and 2019
reconcile to the opening loss allowances as follows:
31-Aug-20 31-Aug-19
Opening balance 7,090 7,179
Increase/(decrease) in loss allowance 1,482 (89)
Closing balance $8,572 $7,090
Trade receivables are written off when there is no reasonable expectation of
recovery. Indicators that there is no reasonable expectation of recovery
include, amongst others, the failure of a debtor to engage in a repayment plan
with the Group, and a failure to make contractual payments for a period of
greater than 365 days past due.
Impairment losses on trade receivables are presented as net impairment losses
within operating profit. Subsequent recoveries of amounts previously written
off are credited against the same line item.
While cash and cash equivalents and loans and other receivables are also
subject to the impairment requirements of IFRS 9, the identified impairment
loss was immaterial.
13) FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS (Cont'd)
c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they fall due. The Group's approach to managing
liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the
Group's reputation. Typically, the Group ensures that it has sufficient cash
on demand to meet expected operational needs as they arise.
All of the Group's financial liabilities are expected to be settled within a
year from the reporting date.
14) FAIR VALUE INFORMATION
The Group's financial assets at fair value through profit or loss comprise an
investment in a fund.
For certain of the Group's financial instruments, not carried at fair value,
including cash and cash equivalents, trade receivables, loans and other
receivables, trade payables and other payables and accrued expenses, the
carrying amounts approximate fair value due to the immediate or short-term
nature of these financial instruments. The carrying value of the amount due to
director approximates its fair value, since such amount is repayable on demand.
The fair value hierarchy has the following levels:
* Level 1 inputs are quoted prices (unadjusted) in active markets for
identical assets or liabilities that the entity can access at the
measurement date.
* Level 2 inputs are inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly or
indirectly.
* Level 3 inputs are unobservable inputs for the asset or liability.
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
of input that is significant to the fair value measurement in its entirety.
For this purpose, the significance of an input is assessed against the fair
value measurement in its entirety. If a fair value measurement uses observable
inputs that require significant adjustment based on unobservable inputs, that
measurement is a Level 3 measurement. Assessing the significance of a
particular input to the fair value measurement in its entirety requires
judgment, considering factors specific to the asset or liability.
The determination of what constitutes 'observable' requires significant
judgment by the Group. The Group considers observable data to be that market
data that is readily available, regularly distributed or updated, reliable and
verifiable, not proprietary, and provided by independent sources that are
actively involved in the relevant market.
Investments whose values are based on quoted market prices in active markets
are therefore classified within Level 1.
Financial instruments that trade in markets that are not considered to be
active but are valued based on quoted market prices, dealer quotations or
alternative pricing sources supported by observable inputs are classified
within Level 2 and for the Group includes the investment in fund. As Level 2
investments include positions that are not traded in active markets and/or are
subject to transfer restrictions, valuations may be adjusted to reflect
illiquidity and/or non-transferability, which are generally based on available
market information.
14) FAIR VALUE INFORMATION (Cont'd)
Investments classified within Level 3 have significant unobservable inputs, as
they trade infrequently.
The Group did not hold any investments under the Levels 1 and 3 hierarchies as
at 31 August 2020 and 2019.
There were no significant investments transferred between Levels 1, 2 and 3.
15) CAPITAL RISK MANAGEMENT
The Group's objectives when managing capital are:
* to safeguard the Group's ability to continue as a going concern; and
* to provide adequate returns to its shareholders.
In order to maintain or balance its overall capital structure to meet its
objectives, the Group is continually monitoring the level of share issuance and
any dividend declaration and distributions to shareholders in the future.
16) SUBSEQUENT EVENTS
Corona virus (COVID-19) pandemic
The Group is carefully managing the coronavirus situation and during the
closedown, had in place processes to protect personnel, including working from
home and restricted travel arrangements. The Group continues to engage with
customers in the most optimal way during this period. Supplies for our
solutions are unaffected and the Group continues to be extremely vigilant. At
this time, the Group has not assumed any financial impact to its outlook and it
will continue to analyse potential implications and implement governmental
guidelines as the situation evolves.
END
(END) Dow Jones Newswires
October 30, 2020 03:00 ET (07:00 GMT)
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