8VIC Holdings Limited
FY2020 Annual Report
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1
CONTENTS
About 8VIC Holdings Limited
VI App
VI College
VI Community
Letter from the Chairman
Financial Highlights
Operating and Financial Review
Board of Directors
Key Management
Corporate Structure
Engaging our Team Members / Our Core Values
Remuneration Report
General Information
Directors’ Statement
Independent Auditors’ Report
Consolidated Statement of Financial Position - Group
Statement of Financial Position - Company
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Additional Information
1
2 - 3
4
5
6 - 7
8
9 - 13
14
15
16
17
18 - 20
21
22 - 23
24 - 29
30
31
32
33 - 34
35
36
37 - 85
86 - 87
PRELUDE
Since our major consolidation and leadership change in FY2019, we have
continued to push strongly ahead to revitalise our business, which has resulted
in our return to profitability in FY2020. This year, we have also rebranded our
business under the new “VI” icon.
The launch of our FinEduTech “VI” platform marks a significant paradigm
shift in several ways. We are no longer known as an offline education unit,
but instead recognised as an integrated, subscription-based platform for
investors who are seeking value investing knowledge.
In addition, the way we do business has also transformed entirely. We
have moved from a transactional based business model to one that is of a
recurring base; where customers are no longer one-time graduates of our
programmes, but instead retained as valued VI Community members who
have access to our suite of products and the ability to tap into lifelong, repeat
learning opportunities.
Also, we have fully restructured our operations internally to ensure our
processes are fully aligned to drive the growth of this new business model.
Our restructured teams are working with renewed specific focuses, whilst
also collaborating closely to ensure overall synergy.
With these new ways of working and grounded on a technology-focused
approach, today, we are extremely proud that 8VI connects a community of
value investors globally.
With our continued effort to bring value investing to the world, we will strive
to build upon the success of our robust FinEduTech business beyond 2020,
and explore new ways to scale our business for further growth.
2
About 8VIC Holdings Limited
Invest Smarter, Faster, Easier
8VIC Holdings Limited (“8VI”) is a Singapore-based FinEduTech company operating under the brand name VI.
Established in 2008, VI (read as “vee”) is the representation of our beliefs and roots in Value Investing and empowers
the average man-on-the-street to achieve sustainable wealth as part of their mission to make investments smarter,
faster and easier. At VI, we offer results-oriented and process-driven analysis powered by technology, as well as
promote investor education and knowledge exchange on a single platform.
VI App, a proprietary stock analysis tool developed
through 8BIT Global Pte Ltd (“8BIT”), crunches
traditional financial data and simplifies the complex
stock analysis and decision-making process
for
equity investors into easy-to-use visuals under a
comprehensive framework.
With numerous offices across the Asia Pacific region,
VI College supports a community of value investors
from 29 cities globally through its flagship “VI
Bootcamp” and other advanced programmes. As
the region’s leading FinEduTech provider, VI College
leverages the power of technology and transforms
the perception and application of value investing.
Key Markets
Supporting a community of value investors globally
Offices in 4 cities
Programmes conducted across 29 cities globally since 2008
SHANGHAI
TAIWAN
MALAYSIA
SINGAPORE
1
1
VI App
Smart stock analysis and screening tool
(formerly WealthPark)
We strive to help you build your wealth by investing smarter,
faster, and easier through a single platform.
Seize control of the stock market and get set for real
results as you connect with users within the VI Community
through the app’s Social Bubbles. VI App simplifies all
the key essential ratios which makes businesses easier
to understand, and identifies winning stocks across 25
stock exchanges, 4 continents and 42,000 companies to
compound your wealth.
With the VI App, you can be assured of deeper insights into
business models, accounting risk, intrinsic value, and easily
track your personal watchlist of stocks, gains and losses –
across multiple portfolios – in one place.
Key Benefits
Powered by
technology
Distils complex stock
analysis processes into easy-
to-use visuals with a
comprehensive framework
Unique and
practical features
Promotes investor
education and knowledge
exchange on a
single platform
Integrated offering
on a single app
Access VI College
and its offerings on
VI App as a
one-stop platform
2
VI App (Cont’d)
• VI Screener
o Search and screen companies with great potential that suit
your investment preference in seconds
• VI Watchlist
o Potential companies to watch, organised into one space,
with consolidated view of companies for easy monitoring,
and notifications when opportunities arise
• VI Portfolio
o Keeps a record of investment positions, allows tracking and
monitoring and shows portfolio performance at a glance
• VI Social Bubble
o Social media module for all users which encourages
exchange of investment opinions and ideas, aggregates
market sentiments and improves important information flow
• VI Analysis
o VI Risk Rating – Identifies high-risk stocks, corporate
governance issues or accounting treatments, vigorously
supported by backtesting
o VI Star Chart – Comprehensive snapshot of a company’s
performance based on profitability, financial health, growth,
assets and dividends
o VI Line – Smart algorithms to calculate intrinsic value of a
company, calculates Margin-of-Safety based on different
valuation methods and provides quick overview of valuation
vs price of companies
25
stock exchanges
42,000+
companies covered
3
VI College
Spreading Value Investing knowledge to the World
Established since 2008
Offices in Singapore, Malaysia,
Taiwan and Shanghai
Supporting a community of
value investors globally
FLAGSHIP PROGRAMMES
VI Bootcamp
An investment programme conducted in English and Mandarin designed to
impart fundamental knowledge in value investing with hands-on practical
learning to build your financial portfolio through intelligent stock investments
and passive income.
PJS
Value investing programme with a Shariah-compliant perspective and focus.
OTHER PROGRAMMES
VI OS+
Learn the mechanics of an option contract and how it behaves. Use it to
complement your value investing strategy by amplifying your returns and at
the same time reduce your risks.
ReWealth
Called “the most important financial class you will ever attend”; you deserve
to lead a life of financial abundance and joy, and it will not happen unless you
choose to fix your wealth container today.
Infinite Wealth
A holistic personal development and mentoring program - from business
strategies, stock investing, healthy living to personal relationships.
VI Summit
Since 2012, VI Summit is the largest gathering of value investors in Asia which
features renowned investors and fund managers, as well as some of the best
investing minds around the world.
EDUTAINMENT & OUTREACH
Money Money Home
A financial literacy programme about the importance of managing personal
and home finance in an easy-to-comprehend, light-hearted manner.
Bai Gu Jing
Jointly created by Money Money Home and VI, Bai Gu Jing is a new talk
show which shares insights on noteworthy listed companies around the world
using value investing methodology, bringing new investors into the world of
investing with an eye on superior business models, excellent management,
and optimal value and prices.
VI Talk
A series of live broadcasts which discusses stocks, handling investments,
improving business strategies and
returns amidst different market
circumstances.
Let’X Invest
An online content series which breaks down investment tips and tricks, and
empowers investors to enjoy wealth creation from the stock market.
4
VI Community
Value investors brought together by VI College and VI App
Our VI Community has been painstakingly built from the ground up over the last 12 years, drawing on our years of
experience as a financial education provider. Today, our community of value investors continues to scale on a healthy
upward path, totalling 30,000 app users and touching more than 100,000 lives.
The VI Community features a rich roster of engagement activities driven by both our retention and acquisition
teams. As part of the VI Community, our members actively foster collective intelligent decision-making as a result of
aggregation of market sentiment. The social interaction within the VI Community further drives a powerful network
effect whereby community-based content is generated and insights into investor behaviour are actively shared.
The VI Social Bubble social networking platform further empowers the VI Community’s interaction, fostering greater
engagement which is even more frequent and streamlined on a single platform. This feature also allows us to
track and monitor overall engagement and interaction levels, which in turn enables us to make the necessary
improvements to the VI App in order to serve our community even better.
Total user growth
rate: 183%*
Subscriber growth
rate: 195%*
Page view growth
rate: 404%*
* Last Twelve Months ending March 2020
5
Letter from the
Chairman
FY2020 has been a milestone year
in our strategic transformation, and
we have been relentlessly working to
develop our capabilities to pave the
foundation for our success in the last
12 months.
Clive Tan
Non-Executive Chairman
Dear shareholders
FY2020 has been a milestone year in our strategic
transformation, and we have been relentlessly working
to develop our capabilities to pave the foundation for
our success in the last 12 months.
While the team gained momentum and continued to
build on its efforts as outlined in the previous year, we
were cognisant of the opportunities and challenges that
await us with the coming of the 4th industrial revolution.
With that in mind, we have devoted 100% of our effort
and energy in delivering on our digital transformation
process that has been put in place since 2016.
Our goal has always been to create a long-term
for our
sustainable business which creates value
community, team members and shareholders. Riding on
the rise of digitalisation and technology, we launched
VI, our FinEduTech platform in January 2020, marking
a significant paradigm shift in the way we conduct our
business. We are no longer an offline education provider
but an integrated FinEduTech platform for investors
seeking knowledge through a variety of recurring
subscription products. We work to retain our customers
as long-term VI Community members who can tap into
our products for lifelong, repeat learning opportunities.
6
With FinTech as a key driver of growth and customer
experience while staying true to our principles in value
investing, we are committed to build on customer
experiences within the VI Community through our
acquisition and retention efforts, invest in continuous
technology development to build on and create new
features which will not only establish a recurring revenue
stream but also continue to pave the way forward for
our business. At the same time, we made the difficult
decision to wind down certain subsidiaries that could be
better served by using technology rather than a physical
presence, allowing us to further reduce our costs and
increase productivity.
Our financial technology tool, formerly known as
WealthPark, was rebranded as “VI App” and was
unveiled at our 9th Value Investing Summit in January
2020. Together with VI College, VI App supports our VI
Community and rounds off our FinEduTech ecosystem
which is set to drive the future of value investing around
the region and the world. This is an extremely positive
turn in the corner for us, as we move towards a business
platform which will lead us towards greater profitability
and scalability.
Letter from the Chairman (Cont’d)
“ FinTech will remain a key driver of growth and
customer experience for our business. We are
committed to build on experiences within the
VI Community through acquisition, retention, and
technology development, which will continue to
pave the way forward for our business.”
This year, I am pleased to welcome Mr Charles Mac as
a Non-Executive Director with effect from 23 May 2019.
Charles takes over from Mr Zane Lewis as part of our
ongoing effort to ensure regular Board renewals, and I am
confident that he will bring fresh new perspectives given
his extensive IT corporate experience and time spent
in the IT industry. Meanwhile, on behalf of the Board,
I would also like to thank Zane for his contributions to
the company and we wish him all the best in his future
endeavours.
As we continue to push ahead in this ‘new normal’
situation, we will concentrate on delivering our value
proposition to better serve a community of value
investors through technology-empowered investment
analysis and education. With the tireless, collective effort
of our team, I have confidence that we will be able to
raise the bar even higher and achieve results beyond the
ordinary by constantly moving towards individual and
group mastery.
Clive Tan
Non-Executive Chairman
During the year, the world faced an extraordinary
challenge with
the COVID-19 novel coronavirus
outbreak, which resulted in multi-country lockdowns
and disruptions to the majority of businesses and
the economy. Given the situation, we were able to
successfully execute a rapid transition plan in both
Malaysia and Singapore to continue serving the needs
of our new and existing customers and users across the
region by shifting our efforts and operations online.
Whilst our strategy had always been to transition our
offerings to an online platform gradually, we took steps
to accelerate and expand our online programmes to
accommodate offsite training curriculum amidst the
evolving COVID-19 landscape. Anchored on technology,
we can now reach out to even more customers and touch
more lives, while scaling our business exponentially
without an actual physical presence, and transcending
geographical borders.
We have also adapted successfully to new operational
practices as we move to digitalise our company by
changing existing working processes and to embrace
the new norm – such as holding our Annual General
Meeting virtually this year, for instance. Meanwhile, we
have also refocused our growth efforts to further cement
our position in core markets, particularly in markets that
are predominantly English, Chinese and Malay speaking.
With these developments, we are pleased to report that
we have returned to a healthy financial baseline and
profitability as a result of this paradigm shift. In FY2020,
we achieved healthy increases to our net profit, operating
profit margin and free cash flow. We also saw a significant
increase in our cash flow from operations despite a dip
in revenue. We attribute our financial turnaround this
year to the positive impact of transforming our business
model, continued prudent cost management, further
improvement in streamlining our marketing efforts and
managing our general overheads.
7
Financial Highlights
Year ended 31 March 2020
Revenue (S$’m)
Net Profit After Tax Attributable To
Equity Holders Of The Company (S$’m)
25
20
15
10
5
0
22.3
9.4*
12.9
10.9
FY2019 FY2020
* Digital and Marketing Segment
contribution prior to disposal
2
0
-2
-4
-6
1.1
-4.9
FY2019 FY2020
Earnings Per Share
(Singapore cents)
Cash and Cash Equivalents (S$’m)
2.64
5
0
-5
-10
-15
-11.57
7.4
4.7
8
6
4
2
0
FY2019 FY2020
FY2019 FY2020
Net Tangible Assets Per Security
(Singapore cents)
Free Cash Flow (S$’m)
20
15
10
5
0
11.0
9.3
6
4
0
-4
-6
4.2
-3.8
FY2019 FY2020
FY2019 FY2020
8
Operating and
Financial Review
It has been slightly over a year since
I was tasked to lead 8VI on a digital
transformation and development path in
order to overcome the traditional earning
challenges and operational limitations
in conventional education and training
businesses.
Ken Chee
CEO & Executive Director
It has been slightly over a year since I was tasked to lead
8VI on a digital transformation and development path
in order to overcome the traditional earning challenges
and operational limitations in conventional education
and training businesses.
our resources on expanding the FinEduTech business
in Asia-Pacific. Notwithstanding the sale, our revenue
stands at S$12.9 million, representing a decrease of
16%.
FY2020 has been a significant year for us and we are
now doing ever more with ever less. Not only have we
managed to successfully transform the business into an
integrated, value investing platform for investors seeking
knowledge through a variety of recurring subscription
products, we have also built a solid community (VI
Community) that offers lifelong learning opportunities.
In addition, with the collective effort of the team and
management, 8VI has also regained its footing to a
healthy financial position.
FY2020 in review
The Group recorded revenue of S$10.9 million in
FY2020 as compared to S$22.3 million in the previous
corresponding year (FY2019). This was mainly attributable
to the one-off contribution from the strategic disposal
of the Digital and Marketing Segment in FY2019,
which had contributed revenue of S$9.4 million in the
previous financial year prior to disposal, so as to focus
Meanwhile, we recorded net profit after tax attributable
to owners of the company of S$1.1 million, thereby
signifying a return to profitability over FY2019’s net loss
position. Cash flow from operations have increased
significantly to S$3.9 million inflow (FY2019: S$1.4
million outflow) while free cash flow stands at S$4.2
million inflow (FY2019: S$3.8 million outflow). This
was made possible with the improved performance of
the Financial Education segment which we attribute
to the resilience and determination of our team, who
have innovated continuously to meet the ever evolving
demands of today.
Operations review
We set out on a 3-year transformation plan in FY2019
to work towards a more integrated offering, based on
an 80% online, 20% offline model (80:20). In FY2020,
we have since developed further on our initial strategy
based on a few key areas of focus.
9
Operating and Financial Review (Cont’d)
Building a recurring revenue model with technology
Given that we are operating in the age of the 4th industrial
revolution, we recognised an inherent challenge to
remain relevant and to move towards an integrated
business model which comprises an 80% online, 20%
offline offering. Our VI App is the culmination of years
of contemplation, planning, investment and work.
Together with VI College, we have established a cohesive
ecosystem which is designed to make investments
Smarter, Faster and Easier and without borders.
Essentially, we work to transition and retain every “one-
off” course graduate persona into a thriving member
of our VI Community, benefitting from the continuous
support and repeat learning opportunities through
tiered subscription options.
Coupled with the integration of signature programs
with the subscription to our VI platform, we achieved a
massive breakthrough in the way our company grows and
generates high-quality recurring revenue and positive
cashflow. This is the result of our recurring “Software as
a Service” Approach where we leverage our software to
infuse new ideas, products and services, to ultimately
serve more customers.
with the community through various activities and
trending topics. The launch of VI Social Bubble within
VI App in early 2020 facilitates the opportunity for
investors and
direct knowledge exchange among
potentially companies. As we improve user experience
and incorporate aspects of artificial intelligence (AI) and
machine learning (ML) over time, we expect a marked
improvement in information flow to users, with VI Social
Bubble becoming a powerful aggregation of market
sentiments providing insights into investor behaviour.
Acquisition, retention, and technology development
at our core
Acquisition
Generating robust content is one of the core pillars of
our acquisition strategy. We plan and create content
which is deployed across various platforms to build
engagement and showcase continual, new additions to
our programmes such as the latest VI Talk live broadcasts.
These owned digital assets are critical as they can be
leveraged across languages, broaden our reach across
borders, drive organic traffic while reducing the reliance
on direct marketing, and build brand awareness and
loyalty. With our ecosystem in place, the assets can be
further amplified amongst the community and benefit
from the natural network effect. We measure our success
in acquisition rates based on monthly growth in users
and subscribers, as well as growth in Annual Recurring
Revenue (ARR).
Our digital transition was accelerated as a result of the
current COVID-19 situation, but we took this challenge
on by the horns. As our ecosystem moves into full swing,
the value investing know-how, ideas and experience are
channeled back into and exchanged within this growing,
thriving network. Eventually, we hope to empower the
average man-on-the-street to embark on their own
sustainable wealth journey through this collaborative,
collective network of like-minded value investors.
Our VI Community has been the cornerstone of 8VI’s
success, and the team has persisted with its efforts
through FY2020 to cultivate and engage meaningfully
10
Growth in users
183% growth in LTM,
9% growth in CMGR
LTM - Last Twelve Months
CMGR - Compounded Monthly Growth Rate
Operating and Financial Review (Cont’d)
Retention
We are also focused on building retention through a
customer-centric culture and mindset to bring entire
lifetime value. We believe in active engagement and
content building via our VI Social Bubble, providing
content and support in the form of VI Coaching Sessions
and VI Resources for flagship programme graduates,
as well as showcasing the potential and power of the
VI App and value investing so that the information is
relatable, easily understandable and ultimately results-
oriented.
Retention success rates are measured via broad
performance metrics such as the renewal rate for VI
App subscription, customer engagement which is data-
and analytics-driven, as well as increasing number of
average page views on our website which has increased
by 637% since FY2019. We also monitor the usage level
of VI Social Bubbles, which has been growing steadily
since implementation.
it can aggregate and reach out to other users who are
actively engaging or putting out content with regards
to the same type of information. Functions such as
these improve searchability and interaction around the
topics or tags of their interest. We are also invested in
continuously improving the robustness of our existing
proprietary VI Analysis e.g. VI Star Chart, a classification
algorithm which we built to enable easy discovery and
identification of the different classes of stocks.
Using machine learning to refine the distinctions in
the stock classifications, we were able to identify and
create new categories within the app to improve overall
user experience. Furthermore, we are building our own
backtesting and scenario testing methods to ensure that
we verify the reliability of the system, whilst exploring
the possibility of extrapolating this data to build future
predictive features.
Refining the
distinctions in stock
classification through
machine learning
Growth in average page views
404% increase since FY2019
Technology development
As we develop our technology, we continuously
build on existing and new features that enhance user
experience. For instance, we have incorporated a Smart
Tagging feature this year so that our users can benefit
from Smart Tag suggestions using machine learning-
based services while posting on our VI Social Bubble.
This could mean that users will be prompted with
relevant tags to include while crafting their post so that
11
We are also building AI and ML capabilities and making
investments in cloud facilities and machine processing so
as to achieve results-driven outcomes for our customers.
Ultimately, continuous technology development leads
to better investment and learning experiences, which
aligns with our main objective of enabling users to Invest
Smarter, Faster, Easier.
Cementing our position in core markets
In FY2020, we moved to cement our position in highly
successful and well-adapted English, Chinese and Malay
language-speaking markets, which resulted in the further
streamlining of our operations to Singapore, Malaysia,
Shanghai and Taiwan.
Operating and Financial Review (Cont’d)
In Singapore, we continued to see good traction for
programmes such as our flagship VI Bootcamp, VI OS+
and ReWealth and we have gained good momentum in
growing the number of programme participants.
expanded rapidly to accommodate the offsite training
curriculum, catering to the rise of new consumption
habits of graduates.
Malaysia remains a significant, addressable growth
market of focus as it continues to generate positive
growth, whilst our operations in Taiwan have stabilised in
FY2020 with a good team in place, and we are confident
this is headed in the right direction.
This year, while we expanded our efforts in mainland
China out of our base in Shanghai, our Thailand office –
which we started as an overseas testbed – has wrapped
up its operations in line with our strategy outlined above.
Programmes such as VI Bootcamp, Pelabur Jutawan
Syariah and Seminar Labur Saham Syariah continue
to be grow in popularity and takeup in Singapore and
Malaysia, whilst we have introduced more bite-sized
programmes such as VI OS+, an extension programme
for VI College graduates teaching them how to generate
cash flow and boost return on investments using options
strategies anchored on value investing principles. In
addition, we have also refined our ReWealth and VI REITs
programmes to ensure they are concise and tailored for
online adaption.
Refining our programmes
Embracing new ways of working
In 2020, we have seen a functional shift in our organisation
and new ways of operating through greater digitalisation
on all fronts. Essentially, we have also applied our 80:20
rule beyond our business model but also to the way we
work moving forward.
What this means is that our existing team members will
take on a 80% online, 20% offline working arrangement
while we explore remodeling our office in preparation
of this new era – such as looking at preparing our
infrastructure in view of a longer-term plan of a
potentially ‘touchless’ environment, and establishing
virtual broadcast studios in Singapore and Malaysia for
the production of digital content. We are also digitalising
across other formats such as eliminating printed name
cards, producing an interactive Annual Report this year,
and moving our Annual General Meeting online.
Whilst we put in place these hardware and software
improvements, we will also provide our team with the
necessary resources to take up courses and digital or
technology-related training to support their transition
and keep pace with our new business direction.
35,000 lives inspired to date
4,714 VI College graduates in FY2020
102 new VI College batches in FY2020
During the year, we have also refined our programmes
to cater to the diverse and growing needs of our
community.
Particularly in view of the evolving COVID-19 situation,
we have since undertaken a range of business continuity
measures beginning in the last quarter of FY2020 in
accordance to local directives in numerous regions
including Singapore and Malaysia. Our operations
and existing online services remain available and have
12
Operating and Financial Review (Cont’d)
Going forward, we anticipate that we will harness the
skillsets and experience of individuals in the area of
software and data engineering to meet our future
growth needs. Together, we will aim to work towards the
progressive automation of our operational processes
and application of data analytics on the backend to
optimise our business decisions.
Key to future growth: continuous innovation
As we look towards future growth, we will be digitalising
more programmes which were already in line to be
converted to online modules as part of our 80:20 strategy.
Technology will remain the bedrock of our journey as
we explore further innovation in the areas of machine
learning and AI. With this, we will mine insightful data
and create better experiences which we will deliver as a
value-added service.
Following the successful launch of online programmes
during the COVID-19 period, we will also continue to
innovate and expand our offerings and service levels
which are tailored to our users’ preferences, such as
‘bite-sized’ subscriptions and programmes which are
growing in popularity.
“We will sharpen and hone our competitive edge
in the area of value investing with our Investment
Intelligence as a Service (IIAAS) model – leveraging
AI, big data analytics and machine-learning, sharing
value investing knowledge and empowering smart
investment decisions. Ultimately, we will make
investing Smarter, Faster and Easier for our growing
VI community.”
Looking ahead
We have set in motion and put in place the right plans,
teams and growth strategies to see through a systematic
and measured expansion in the Asia-Pacific region. We
recognise that there will be difficult decisions to be made
in all businesses, and ours is no exception. It is important
not to lose the lesson from the learning experiences that
we have gone through. Meanwhile, we will continue to
manage our expenses prudently, and work to generate
better cash from operations as we refocus our efforts on
the FinEduTech segment in our core identified growth
markets.
Our team remains steadfast in its efforts, whilst staying
nimble to adapt and change. This year, we invite you
to join us on our digitalisation journey as we deliver our
FY2020 Annual Report in an interactive format for the
first time ever. Ultimately, we remain focused on making
investments Smarter, Faster and Easier, delivering
long-term value to our shareholders and our mission
and vision are unwavering – to empower the man-on-
the-street to create sustainable wealth and inspire 100
million lives, whilst we work to drive growth and build a
sustainable business.
Transforming more than
100,000 lives
in our VI Community
Ken Chee
CEO & Executive Director
13
Board of Directors
.profile {
name: Clive Tan;
title: Non-Executive
.profile {
name: Ken Chee;
title: Executive
.profile {
name: Pauline Teo;
title: Executive
.profile {
name: Charles Mac;
title: Non-Executive
Chairman;
Director & CEO;
Director;
Director;
Clive Tan
Non-Executive Chairman
Clive Tan was appointed Non-Executive Chairman
September 2015.
in
As co-founder and executive director of parent company,
8I Holdings Limited, Clive is familiar with the strategic
planning, business development, corporate policies and risk
management practices for the financial education and asset
management businesses.
Within 8VI, Clive advises on corporate governance, strategic
planning and overall direction of the Group.
Clive holds a Post-Graduate Diploma in Education from the
National Institute of Education and an Honours Degree in
Mechanical and Production Engineering from the Nanyang
Technological University. He also attended the University of
Technology, Sydney on an academic exchange programme.
He began his professional career in the public education
sector in Singapore.
Ken Chee
Executive Director & CEO
Ken Chee was appointed Executive Director & Chief Executive
Officer in January 2019. He is the co-founder of the Group and
sits on the board of parent company, 8I Holdings Ltd.
Currently CEO of 8VI, he is involved in driving the all-round
growth of the Group’s FinEduTech business under the VI
brand.
Ken has more than 20 years of professional experience across
business development, operations, strategy and marketing
from his past roles, including Quicken (Singapore) and Telekurs
Financial. Prior to his current appointment, Ken held executive
and management roles in 8I Holdings Ltd and was the originator
and key trainer of its financial education programmes.
Ken was awarded the Spirit of Enterprise, Honoree Award in
2005 by the President of Singapore for outstanding business
results. He is also a Young Presidents’ Organisation member
under the Singapore Chapter.
Ken graduated from the Singapore Polytechnic with a
Diploma in Banking and Financial Services, and the University
of Queensland with a Bachelors’ Degree
in Business
Administration. He also attended Columbia Business School in
New York and graduated from its Executive Program in Value
Investing.
Pauline Teo
Executive Director
Pauline Teo was appointed Executive Director in January 2018.
Under her leadership, VI College is currently the leading
Financial Education provider in Singapore and Malaysia, with
presence in Taiwan and mainland China. Pauline is involved
in the management and regional operations of the Company.
She is also one of the key speakers for the various programs,
seminars and coaching sessions that the Company undertakes.
She is based in Singapore and has more than 10 years’
experience working as a public servant, primarily in the field
of learning and development. During her days with Singapore
Ministry of Defence and Civil Service College, Pauline led
a team of course developers and had the full spectrum
of experience in training and development, ranging from
conducting learning-needs analysis to outcome evaluation.
Pauline graduated from the Nanyang Technological University
with a Master of Arts (Instructional Design and Methodology)
and holds a Bachelor in Business Studies.
Charles Mac
Non-Executive Director
in
Charles Mac was appointed Non-Executive Director
May 2019. Charles has more than 18 years of IT corporate
experience, of which 15 years in the SAP industry dealing with
multinational companies across the Asia Pacific Region. He has
held various leadership roles for large, global multinational
companies with extensive experience across Asia Pacific in
Team Management, Quality Management, Audits, Business
Development and Contract Deliveries.
Charles currently serves on the Board of Australian-listed
companies, 8I Holdings Limited and Ennox Group Limited
as a Non-Executive Director. Charles is an Australian citizen
and holds a Bachelor of Computing (Information System) from
Monash University.
14
Key Management
.profile {
name: Bernard Siah;
title: CTO,
.profile {
name: Gary Yeow;
title: Executive
8VI;
Director,
8VI, Malaysia;
.profile {
name: Juanna Chua;
title: Executive
Director,
8VI, China
.profile {
name: Will Huang ;
title: General
Manager,
8VI, Taiwan;
Bernard Siah
CTO, 8VI
Juanna Chua
Executive Director, 8VI China
Bernard currently leads the technology development at 8Bit
Global Pte Ltd (“8Bit”), leveraging the digital economy for
improved positioning and competitiveness. He has more than
10 years of experience as a technology specialist.
Bernard began his career in a start-up and led the R&D
and product development team. During this period, he
gained invaluable experience in building the R&D team and
developing processes to deliver products in the intelligent
CCTV industry. Eventually, he grew with the company through
its IPO in SGX. After his start-up experience, he joined a
marine company and continued to apply his vast experience
in product development to create a world-class system which
provides advance vessel performance monitoring services.
The entity was eventually acquired by a French company from
the growing LPG market.
Bernard graduated from the National University of Singapore
with a Bachelor of Computing (Technology Focus).
Gary Yeow
Executive Director, 8VI Malaysia
Gary Yeow is the Director of 8VI Malaysia Sdn Bhd. He has
been with the Group since May 2012.
Juanna Chua is the Executive Director of 8VI China and
manages the Company’s strategic objectives and plans within
the Chinese market. Previously, Juanna spent 9 years on
distribution and central store management with Shell Malaysia
Trading Sdn Bhd. She brings with her strong human capital
and operations knowledge.
She graduated with a Bachelor of Business Administration
(Honours) in Marketing from Universiti Tenaga Nasional.
Will Huang
General Manager, 8VI Taiwan
Will is the General Manager of 8VI Taiwan, where he leads the
office’s operations and strategy. As a leader, Will successfully
bridges technical and business aspects, while handling high-
level management and operations. He has been with the
Group since 2019.
Prior to this, Will created and headed an ODM/OEM unit at
Strongled LED Lighting Systems, a Taiwan-listed company and
leading manufacturer of LED lighting, where he led market
research and development, analysis of business model, team
establishment, resource evaluation and coordination, process
formulation and staff training.
the Group, Gary oversees
Within
the planning and
implementation of marketing, operations and business
development strategies across the regional markets and 8VI’s
overseas expansion activities.
Will has more than 6 years of experience across quality
engineering and customer service in multi-national companies.
He was also a key member in Strongled’s IPO team, handling
public relations and as a corporate spokesperson.
Gary brings over 30 years of business experience, where
prior to 8VI, Gary held the directorship of a building materials
wholesale and manufacturing business. Gary graduated from
Anglo-Chinese Secondary School in Sitiawan, Malaysia.
Will holds a Masters’ Degree in MSc. Management from the
University of Southampton, as well as a Bachelor of Geomatics
from the National Cheng-Kung University.
15
Corporate Structure
8VI Global
Pte. Ltd.
(100%)
8Bit Global
Pte. Ltd.
(51%)
8VI Malaysia
Sdn. Bhd.
(100%)
8VIC Taiwan
Co., Ltd.
(70%)
8VI China
Pte. Ltd.
(65%)
8VIC JooY Media
Sdn. Bhd.
(70%)
信益安（上海）
实业有限公司
(100%)
16
Engaging our Team Members
Beyond the digital transformation and increasing usage
of technology in our business operations, the Group
has also put in place several initiatives to continuously
engage with our team members and provide them
with the necessary resources to take up courses and
digital or technology-related training to upgrade their
skillsets to excel in the new phase of the Group’s digital
transformation.
Apart from just focusing on their operational efficacies
and core competencies, the Group also places great
emphasis on cultivating a strong team bond amongst
our supportive team members and establishing a
supportive, conducive and collaborative working
environment for our team members to grow alongside
the organisation.
CORE VALUES
We do what we think & say
We enjoy what we do
We take care of one another like family
We uphold the trust of our stakeholders
We work towards mastery without
invalidation of self & others
We are value-conscious for the price paid
We keep our hearts & minds open
We make it simple
17
Remuneration
Report
This
remuneration
report
set
out
information
about
the
remuneration
of
8VIC
Holdings
Limited’s
key
management
personnel
for
the
financial
year
ended
31
March
2020.
The
term
‘key
management
personnel’
refer
to
those
persons
having
authority
and
responsibility
for
planning,
directing,
controlling
the
activities
of
the
consolidated
entity,
directly
or
indirectly,
including
any
director
(whether
executive
or
otherwise)
of
the
consolidated
entity.
Remuneration
Policy
The
remuneration
policy
of
8VIC
Holdings
Limited
has
been
designed
to
align
director
and
executive
objectives
with
shareholder
and
business
objectives.
The
board
of
the
Company
believes
the
remuneration
policy
to
be
appropriate
and
effective
in
its
ability
to
attract
and
retain
the
best
executives
and
directors
to
run
and
manage
the
Company
and
Consolidated
Group,
as
well
as
create
goal
congruence
between
directors,
executives
and
shareholders.
All
remuneration
paid
to
directors
and
executives
is
valued
at
the
cost
to
the
Consolidated
Group
and
expensed.
The
names
and
positions
of
key
management
personnel
of
the
Company
and
of
the
Consolidated
Entity
who
have
held
office
during
the
financial
year
are:
Clive
Tan
Che
Koon
Chee
Kuan
Tat,
Ken
Pauline
Teo
Puay
Lin
Charles
Mac
Gary
Yeow
Hin
Lai
Bernard
Siah
Juanna
Chua
Will
Huang
Non-‐Executive
Chairman
Executive
Director
&
Chief
Executive
Officer
Executive
Director
Non-‐Executive
Director
Director,
Malaysia
subsidiary
Chief
Technology
Officer
Director,
China
subsidiary
General Manager,
Taiwan
subsidiary
Service
Agreements
Remuneration
and
other
terms
of
employment
for
the
Executive
Directors
and
other
Key
Management
Personnel
are
formalised
in
a
service
agreement.
For
Nona Executive
Directors,
these
terms
are
set
out
in
a
Letter
of
Appointment.
The
major
provisions
of
the
agreements
relating
to
Directors’
remuneration
as
at
date
of
this
report
are
set
out
below.
Name
Base
Salary(1)
Fees
Clive
Tan
Che
Koon
Chee
Kuan
Tat,
Ken
Pauline
Teo
Puay
Lin
Charles
Mac
S$nil
S$144,000
p.a.
S$144,000
p.a.
S$nil
S$43,200
p.a.
(2)
S$nil
S$nil
S$21,000
p.a.(2)
Term
of
Agreement
No
fixed
term
No
fixed
term
No
fixed
term
No
fixed
term
Notice
Period
N/A
N/A
N/A
N/A
(1)
Excluding
employer’s
Central
Provident
Fund
(CPF)
contribution
(2)
Non-‐executive
director
fee
of
the
Company
18
Remuneration
Report
(continued)
Details
of
Remuneration
A
breakdown
showing
the
level
and
mix
of
each
Director’s
and
Key
Management
Personnel’s
remuneration
for
the
financial
year
ended
31
March
2020
is
set
out
below:
Name
of
Directors
S$100,000
to
below
S$250,000
Chee
Kuan
Tat,
Ken
Pauline
Teo
Puay
Lin
Below
S$100,000
Clive
Tan
Che
Koon
Charles
Mac
Salary*
%
Bonus/Profit-‐
sharing
%
Directors’
Fee
%
Total
%
92
91
-‐
-‐
8
9
-‐
-‐
-‐
-‐
100
100
100
100
100
100
Name
of
Key
Management
Personnel
Designation
S$100,000
to
below
S$250,000
Gary
Yeow
Hin
Lai
Director,
8VI
Malaysia
Sdn
Bhd
Bernard
Siah
Chief
Technology
Officer
Below
S$100,000
Juanna
Chua
Director,
China
subsidiary
Will
Huang
General Manager,
Taiwan
subsidiary
* Salary
is
inclusive
of
fixed
allowance
and
CPF
contribution.
Salary*
%
Bonus/Profit-‐
sharing
%
Total
%
92
92
100
82
8
8
-‐
18
100
100
100
100
The
total
remuneration
of
each
Key
Management
Personnel
has
not
been
disclosed
in
dollar
terms
given
the
sensitivity
of
remuneration
matters
and
to
maintain
the
confidentiality
of
the
remuneration
packages
of
these
Key
Management
Personnel.
19
Remuneration
Report
(continued)
Details
of
Remuneration
(continued)
The
total
remuneration
of
the
top
five
key
executives
(who
are
not
directors
of
the
Company)
is
S$543,403
for
the
financial
year
ended
31
March
2020
(2019:
S$551,841).
There
were
no
terminations,
retirement
or
post-‐employment
benefits
granted
to
Directors
and
Key
Management
Personnel
other
than
the
standard
contractual
notice
period
termination
payment
in
lieu
of
service
for
the
financial
year
ended
31
March
2020.
No
employee
whose
remuneration
exceeded
S$50,000
during
the
financial
year
is
an
immediate
family
member
of
any
of
the
members
of
the
Board.
The
Company
did
not
provide
any
equity
compensation
to
Directors
or
executives
during
the
financial
year
ended
31
March
2020.
The
Company
also
reimburses
validly
incurred
business
expenses
of
Directors
and
Key
Management
Personnel.
Other
Information
There
were
no
loans
made
to
any
Key
Management
Personnel
during
the
financial
year
or
outstanding
at
financial
year
ended.
Apart
from
disclosed
elsewhere
in
this
report,
there
were
no
transactions
with
Key
Management
Personnel
during
the
financial
year.
During
the
financial
year,
the
Remuneration
Committee
reviewed
and
approved
the
Company’s
remuneration
policy.
Directors
Meetings
Since
the
beginning
of
the
financial
year,
four
meetings
of
directors
were
held.
Attendances
by
each
director
during
the
period
were
as
follows:
DIRECTORS
Clive
Tan
Che
Koon
Chee
Kuan
Tat,
Ken
Pauline
Teo
Puay
Lin
Charles
Mac
DIRECTORS'
MEETINGS
ELIGIBLE
TO
ATTEND
4
4
4
4
ATTENDED
4
4
3
4
Environmental
Issues
The
Company’s
operations
comply
with
all
relevant
environmental
laws
and
regulations,
and
have
not
been
subject
to
any
actions
by
environmental
regulators.
20
GENERAL INFORMATION
For the financial year ended 31 March 2020
Directors
Mr Clive Tan Che Koon (Non-Executive Chairman)
Ms Pauline Teo Puay Lin (Executive Director)
Mr Chee Kuan Tat, Ken (Executive Director)
Mr Charles Mac (Non-Executive Director)
Company Secretary (Singapore)
Ms Amanda Thum Sook Fun
Company Secretary (Australia)
Mr Louis Chua Chun Woei
Registered Office (Singapore)
Registered Office (Australia)
Principal place of business
Share registrar
Auditor
47 Scotts Road
#03-03/04 Goldbell Towers
Singapore 228233
SmallCap Corporate Pty Ltd
Suite 6, 295 Rokeby Road
Subiaco WA 6008
47 Scotts Road
#03-03/04 Goldbell Towers
Singapore 228233
Link Market Services Limited
Level 4, Central Park
152-158 St Georges Terrace
Perth WA 6000
KLP LLP
Public Accountants and
Chartered Accountants
13A MacKenzie Road
Singapore 228676
Partner in charge: Lim Yeong Seng
Stock exchange listing
8VIC Holdings Limited’s shares are listed on the Australian
Securities Exchange (ASX code: 8VI)
Website
www.8vicglobal.com
21
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2020
The directors are pleased to present their statement to the members together with the audited consolidated
financial statements of 8VIC Holdings Limited (the “Company”) and its subsidiaries (the “Group”) and the
statement of financial position and statement of changes in equity of the Company for the financial year ended
31 March 2020.
1.
Opinion of the directors
In the opinion of the directors,
(a)
the consolidated financial statements of the Group and the statement of financial position and
statement of changes in equity of the Company are drawn up so as to give a true and fair view of
the financial position of the Group and of the Company as at 31 March 2020 and the financial
performance, changes in equity and cash flows of the Group and changes in equity of the Company
for the year ended on that date, and
(b)
at the date of this statement, there are reasonable grounds to believe that the Company will be
able to pay its debts as and when they fall due.
2.
Directors
The directors of the Company in office at the date of this statement are:
Clive Tan Che Koon
Pauline Teo Puay Lin
Chee Kuan Tat, Ken
Charles Mac
3.
Arrangements to enable directors to acquire shares or debentures
Neither at the end of nor at any time during the financial year was the Company a party to any
arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to
acquire benefits by means of the acquisition of shares in, or debentures of the Company or any other
body corporate.
4.
Directors’ interests in shares or debentures
According to the register of directors’ shareholdings kept by the Company under section 164 of the
Singapore Companies Act, Chapter 50 (the “Act”), the directors of the Company who held office at the
end of the financial year had no interests in the shares or debentures of the Company and its related
corporations except as stated below:
22
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2020
4.
Directors’ interests in shares or debentures (continued)
Name of Directors
Ordinary shares of the Holding Company
(8I Holdings Limited)
Clive Tan Che Koon
Pauline Teo Puay Lin
Chee Kuan Tat, Ken
5.
Share options
Direct interest
At the
beginning of
financial year
At the end of
financial year
65,140,000
8,859,103
86,684,792
65,140,000
8,859,103
86,684,792
There were no share options granted during the financial year to subscribe for unissued shares of the
Company.
There were no shares issued during the financial year by virtue of the exercise of options to take up
unissued shares of the Company.
There were no unissued shares of the Company under option at the end of the financial year.
6.
Auditor
KLP LLP has expressed its willingness to accept re-appointment as auditor.
On behalf of the Board of Directors,
Chee Kuan Tat, Ken
Director
Singapore, 29 May 2020
Pauline Teo Puay Lin
Director
23
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
Independent Auditor's Report to the members of 8VIC Holdings Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of 8VIC Holdings Limited (the “Company”) and its subsidiaries (the
“Group”), which comprise the consolidated statement of financial position of the Group and the statement of
financial position of the Company as at 31 March 2020, and the consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows of the Group
and the statement of changes in equity of the Company for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements of the Group and the statement of financial
position of the Company are properly drawn up in accordance with the provisions of the Companies Act, Chapter
50 (the “Act”) and Financial Reporting Standards in Singapore (FRSs) so as to give a true and fair view of the
consolidated financial position of the Group and the financial position of the Company as at 31 March 2020 and
of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the
Group and changes in equity of the Company for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Group in accordance with the Accounting and Corporate
Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public Accountants and Accounting
Entities (ACRA Code) together with the ethical requirements that are relevant to our audit of the financial
statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have fulfilled our responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the accompanying financial statements.
24
Independent Auditor's Report to the members of 8VIC Holdings Limited
(continued)
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
How our audit addressed the key audit matter
In relation to the Group’s application of FRS 116, we:
1. obtained an understanding of the internal controls,
including the new processes and controls in relation
to the application of FRS 116;
2. obtained an understanding of the lease contracts
the
identified by management and assessed
appropriateness of management’s identification of
those contracts as leases based on contractual
agreements;
the
3. assessed the reasonableness of management’s
expectation of
lease period using our
understanding of the Group’s historical lease periods
for similar assets, importance of the leased asset to
the Group’s business and whether the cost of
obtaining replacement asset would be significant;
4. Assessed discount rates applied by the Group;
5. Tested the mathematical accuracy of the lease
calculations; and
6. Evaluated adequacy of the Group’s disclosure in
relation to leases including disclosure of associated
judgements and estimates.
We found the judgement applied by management in the
recognition of lease liabilities to be appropriate.
We also found the disclosure on the critical judgements
applied by management in the determination of the lease
term in Note 3.1(e)(f) to be reasonable.
Key audit matters (continued)
Key audit matter in the audit of the Group
Adoption of FRS 116 Leases
Refer to Note 3.1 (e)(f) (Critical judgements in applying
the entity’s accounting policies) and Note 16 (Lease
liabilities) to the financial statements.
The Group adopted FRS 116 Leases on 1 April 2019 and
elected to recognise right-of-use assets based on
amount equal to the lease liability, adjusted by the
amount of any prepaid and accrued lease payments
previously recognised. Comparative figures were not
restated.
lease
liabilities were
The
initially measured by
discounting the lease payments over the lease terms.
For leases with extension options, the Group applied
significant judgement in determining whether such
extension options should be reflected in measuring the
lease liabilities. As at 31 March 2020, the Group’s lease
liabilities amounting to S$1,214,512.
We focused on the adoption of FRS 116 in view of the
significant effort required to audit the lease liabilities
recognised due to the large volume of leases and
significant judgement applied in determining whether
the facts and circumstances created an economic
incentive for the Group to exercise the lease extension
option.
25
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
Independent Auditor's Report to the members of 8VIC Holdings Limited
(continued)
Key audit matters (continued)
Key audit matter in the audit of the Group
Impact of the disruption to the operations due to
Covid 19
Refer to Note 28
The spread of COVID-19 has severely impacted many
local economies around the globe. In many countries,
businesses are being forced to cease or limit operations
for long or indefinite periods of time. Measures taken
to contain the spread of the virus, including travel bans,
quarantines, social distancing, and closures of non-
essential services have triggered significant disruptions
to businesses worldwide, resulting in an economic
slowdown. Global stock markets have also experienced
great
significant weakening.
Governments and central banks have responded with
monetary and fiscal interventions to stabilise economic
conditions. As a result, these have impacted on the
Financial Education segments of the Group.
volatility and a
How our audit addressed the key audit matter
1. Considered the implications of COVID-19 when
obtaining an understanding of the Group and its
environment, in light of its objectives, strategies and
other business risks.
2. Discussed with management whether the impact of
the COVID-19 has been incorporated into their risk
assessment processes and how they have identified
and assessed the significance of the business risks
arising.
3.
Evaluated the assessment of management as to
whether risks from COVID-19 could be material.
4. Assessed the financial impact involving accounting
estimates prepared by the management including
significant assumptions used.
5. Considered the adequacy of the disclosures in the
Financial Education Segment
financial statements.
8VIC had shifted from offline trainings and programme
services to online services in mid-March 2020 in
Singapore and Malaysia. The offering of web-based
financial education programmes and training have
been expanded and community support was integrated
fully within VI App to reach a wider audience and meet
the evolving consumer habits. This temporary change
in business operation had not significantly affect the
financial performance of the financial education
business during the financial year.
6. Considered the impact of the COVID-19 events after
the reporting period if it requires adjustment to or
disclosure in the financial report and whether the
event impacts the appropriateness of the going
concern basis of accounting.
We found that the judgement applied, assessment made
and method and assumptions used by the management
were reasonable. We also found the disclosure in the
financial statements to be adequate and sufficient.
We considered the impact of COVID-19 to be a key
audit matter in view that the Group is in an industry
which is mainly affected by the COVID-19 namely,
education sector.
26
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
Independent Auditor's Report to the members of 8VIC Holdings Limited
(continued)
Other Information
Management is responsible for other information. The other information comprises the information included in
the annual report, but does not include the financial statements and our auditor’s report thereon. The annual
report is expected to be made available to us after the date of the auditor’s report.
Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required
to communicate the matter to those charged with governance and take appropriate actions in accordance with
SSAs.
Responsibilities of Management and Directors for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with the provisions of the Act and FRSs, and for devising and maintaining a system of internal
accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from
unauthorised use or disposition; and transactions are properly authorised and that they are recorded as
necessary to permit the preparation of true and fair financial statements and to maintain accountability of
assets.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
The directors’ responsibilities include overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
27
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
Independent Auditor's Report to the members of 8VIC Holdings Limited
(continued)
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
•
•
•
•
•
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
28
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
Independent Auditor's Report to the members of 8VIC Holdings Limited
(continued)
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the Company and by those
subsidiary corporations incorporated in Singapore of which we are the auditors have been properly kept in
accordance with the provisions of the Act.
The engagement partner on the audit resulting in this independent auditor’s report is Lim Yeong Seng.
KLP LLP
Public Accountants and
Chartered Accountants
Singapore, 29 May 2020
29
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - GROUP
As At 31 March 2020
SOFP
Assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments in associated companies
Financial assets, at FVOCI
Deferred tax assets
Current assets
Trade and other receivables
Current tax assets
Prepayment
Financial assets, at FVPL
Cash and cash equivalents
Total assets
Equity and liabilities
Equity attributable to owners of the Company
Share capital
Accumulated losses
Foreign currency translation reserve
Other reserves
Non-controlling interests
Total equity
Current liabilities
Trade and other payables
Unearned revenue
Lease liabilities
Provision for income tax
Non-current liabilities
Lease liabilities
Deferred tax liabilities
Group
Note
2020
S$
2019
S$
4
5
7
8
16
9
8
10
11
12
13
14
15
16
16
17
1,572,875
439,744
-
7,443
264,331
2,284,393
1,629,839
91,960
133,980
402,305
7,433,590
9,691,674
521,566
-
147,818
8,219
178,865
856,468
1,221,093
132,355
164,523
181,542
4,702,031
6,401,544
11,976,067
7,258,012
12,895,103
(3,438,606)
(61,801)
(4,490,583)
4,904,113
243,255
5,147,368
1,648,235
3,845,802
1,146,938
116,150
6,757,125
67,574
4,000
71,574
12,895,103
(4,510,653)
(66,857)
(4,546,552)
3,771,041
303,138
4,074,179
1,247,801
1,721,306
18,567
174,302
3,161,976
17,857
4,000
21,857
Total liabilities
6,828,699
3,183,833
Total equity and liabilities
11,976,067
7,258,012
The accompanying notes form an integral part of these financial statements.
30
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
STATEMENT OF FINANCIAL POSITION - COMPANY
As At 31 March 2020
Assets
Non-current assets
Investment in subsidiaries
Current assets
Trade and other receivables
Prepayment
Cash and cash equivalents
Total assets
Equity and liabilities
Equity attributable to owners
of the Company
Share capital
Accumulated losses
Total equity
Current liabilities
Trade and other payables
Unearned revenue
Total liabilities
Company
Note
2020
S$
2019
S$
6
9
10
11
14
15
2,568,393
2,568,393
587,747
10,093
288,525
886,365
2,290,443
2,290,443
122,259
27,269
1,422,314
1,571,842
3,454,758
3,862,285
77,423,174
(74,075,327)
3,347,847
77,423,174
(73,618,732)
3,804,442
90,811
16,100
106,911
57,843
-
57,843
Total equity and liabilities
3,454,758
3,862,285
SOCI
The accompanying notes form an integral part of these financial statements.
31
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the financial year ended 31 March 2020
Revenue
Cost of sales and services
Gross profit
Other income
Other items of expense
Administrative expenses
Marketing and other expenses
Finance costs
Impairment of goodwill
Note
2020
S$
2019
S$
18
19
10,859,351
(2,957,453)
7,901,898
22,291,337
(9,998,631)
12,292,706
236,121
351,233
(3,699,332)
(3,352,423)
(81,574)
-
(7,655,304)
(7,478,184)
(2,402)
(1,585,013)
Share of results of associated companies
(135,939)
(252,182)
Profit/(Loss) before tax
Income tax expense
Profit/(Loss) after tax
20
22
868,751
(89,330)
779,421
(4,329,146)
(386,518)
(4,715,664)
Other comprehensive income/(loss):
Items that may be reclassified subsequently
to profit or loss
Foreign currency translation
Cumulative translation differences in respect of net
assets of the subsidiary reclassified from equity to
profit or loss upon disposal of a subsidiary
Items that will not be reclassified subsequently to
profit or loss
Financial assets, at FVOCI
- Fair value losses – equity investments
Other comprehensive income/(loss), net of tax
Total comprehensive income/(loss) for the year
Total profit/(loss) after tax attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income/(loss) attributable to:
Owners of the Company
Non-controlling interests
40,922
(29,609)
-
40,922
(12,948)
(42,557)
(746)
40,176
819,597
1,072,047
(292,626)
779,421
1,076,357
(256,760)
819,597
-
(42,557)
(4,758,221)
(4,867,345)
151,681
(4,715,664)
(4,905,349)
147,128
(4,758,221)
Earnings per share (cents per share)
Basic
Diluted
23
2.64
2.64
(11.57)
(11.57)
The accompanying notes form an integral part of these financial statements.
32
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 March 2020
SOCE
Group
Balance as at 1 April 2018
Loss for the year
Foreign currency translation
Cumulative translation differences in respect of net
assets of the subsidiary reclassified from equity to
profit or loss upon disposal of a subsidiary
Total comprehensive (loss)/income for the year
Contributions by and distributions to owners
Dilution of subsidiary without change in control
Disposal of subsidiaries (Note 6)
Total transactions with owners in their capacity as
owners
Balance as at 31 March 2019
Accumulated
profits/
(losses)
S$
Foreign
currency
translation
reserve
S$
Share
capital
S$
Other
reserves
S$
Total equity
to owners of
the Company
S$
Non-
controlling
interest
S$
Total equity
S$
14,872,793
-
-
356,692
(4,867,345)
-
(28,853)
-
(25,056)
(4,533,629)
-
-
10,667,003
(4,867,345)
(25,056)
569,900
151,681
(4,553)
11,236,903
(4,715,664)
(29,609)
-
-
-
(4,867,345)
(12,948)
(38,004)
-
-
(12,948)
(4,905,349)
-
147,128
(12,948)
(4,758,221)
-
(1,977,690)
-
-
-
-
(12,923)
-
(12,923)
(1,977,690)
48,229
(462,119)
35,306
(2,439,809)
(1,977,690)
12,895,103
-
(4,510,653)
-
(66,857)
(12,923)
(4,546,552)
(1,990,613)
3,771,041
(413,890)
303,138
(2,404,503)
4,074,179
The accompanying notes form an integral part of these financial statements.
33
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 March 2020
Group
Balance as at 1 April 2019
Profit/(Loss) for the year
Other comprehensive income/(loss), net of tax
Total comprehensive income/(loss) for the year
Contributions by and distributions to owners
Dilution of non-controlling interest
Acquisition of subsidiaries
Total transactions with owners in their capacity as
owners
Balance as at 31 March 2020
Accumulated
profits/
(losses)
S$
Foreign
currency
translation
reserve
S$
Share
capital
S$
Other
reserves
S$
Total equity
to owners of
the Company
S$
Non-
controlling
interest
S$
Total equity
S$
12,895,103
-
-
-
(4,510,653)
1,072,047
-
1,072,047
(66,857)
-
5,056
5,056
(4,546,552)
-
(746)
(746)
3,771,041
1,072,047
4,310
1,076,357
303,138
(292,626)
35,866
(256,760)
4,074,179
779,421
40,176
819,597
-
-
-
-
-
-
56,715
-
56,715
-
(64,195)
261,072
(7,480)
261,072
-
12,895,103
-
(3,438,606)
-
(61,801)
56,715
(4,490,583)
56,715
4,904,113
196,877
243,255
253,592
5,147,368
The accompanying notes form an integral part of these financial statements.
34
STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 March 2020
Note
Share
capital
S$
Accumulated
losses
S$
Total
equity
S$
Company
Balance as at 1 April 2018
Total comprehensive loss for the year
Contributions by and distribution to owners
Disposal of subsidiaries
Total transactions with owners in their capacity
as owners
Balance as at 31 March 2019
79,400,864
-
(46,304,895)
(27,313,837)
33,095,969
(27,313,837)
11
(1,977,690)
-
(1,977,690)
(1,977,690)
77,423,174
(27,313,837)
(73,618,732)
(29,291,527)
3,804,442
Total comprehensive loss for the year
Balance as at 31 March 2020
-
77,423,174
(456,595)
(74,075,327)
(456,595)
3,347,847
The accompanying notes form an integral part of these financial statements.
35
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
CONSOLIDATED STATEMENT OF CASH FLOWS
For the financial year ended 31 March 2020
SOCF
Cash flows from operating activities
Profit/(Loss) before income tax
Adjustments for:
Amortisation of prepayment
Amortisation of software development expenditure
Depreciation of property, plant and equipment
Plant and equipment written off
Finance cost
Impairment of financial assets
Impairment of non-financial assets
Fair value loss in financial assets at FVPL
Gain on disposal of an associate
Impairment of goodwill
Interest income
Dividend income
Share of results of associated company
Unrealised exchange loss
Operating cash flow before changes in working capital
Working capital changes in:
Inventories
Trade and other receivables
Prepayment
Trade and other payables
Unearned revenue
Cash generated from/(used in) operating activities
Interest income
Dividend income
Income tax paid
Net cash generated from/(used in) operating activities
Cash flows from investing activities
Additions to property, plant and equipment
Additions to software development expenditure
Acquisition of subsidiaries, net of cash acquired
Disposal of subsidiaries, net of cash outflow
Disposal/(Investment) in associated companies
Dilution of non-controlling interest
Dilution of subsidiary without change in control
Investment in financial assets at FVPL
Loan to non-related party
Withdrawal of fixed deposits
Net cash generated from/(used in) investing activities
Cash flows from financing activity
Repayment of lease liabilities
Net cash used in financing activity
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of financial year
Effect of currency translation on cash and cash equivalents
Cash and cash equivalents at the end of financial year (Note 10)
2020
S$
2019
S$
868,751
(4,329,146)
-
97,967
1,694,801
-
81,574
74,635
-
4,392
(8,121)
-
(12,704)
(6,511)
135,939
34,959
2,965,682
-
(451,537)
45,936
132,933
1,408,402
4,101,416
12,704
6,511
(191,061)
3,929,570
(168,815)
(188,059)
936,828
-
20,000
(7,481)
-
(226,169)
(91,997)
-
274,307
50,000
-
567,356
38,499
2,402
958,070
305,000
-
-
1,585,013
(58,073)
(6,674)
252,182
29,637
(605,734)
(507,834)
(279,447)
337,830
220,521
(206,416)
(1,041,080)
58,073
6,674
(426,276)
(1,402,609)
(259,576)
-
-
(3,108,243)
(430,000)
-
40,983
-
-
1,311,280
(2,445,556)
(1,474,008)
(1,474,008)
(20,888)
(20,888)
2,729,869
4,702,031
1,690
7,433,590
(3,869,053)
8,569,179
1,905
4,702,031
The accompanying notes form an integral part of these financial statements.
36
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
These notes form an integral part and should be read in conjunction with the accompanying financial
statements.
1.
Corporate information
1.1 General
8VIC Holdings Limited (the “Company”) is a limited liability company incorporated and domiciled in
Singapore and is listed on the Australian Securities Exchange (ASX). The registered office and principal
place of business of the Company is located at 47 Scotts Road #03-03/04 Goldbell Towers, Singapore
228233.
The principal activities of the Company are investment holding and management consultancy services.
The immediate and ultimate holding company is 8I Holdings Limited, which is incorporated and domiciled
in Singapore and is listed on the Australian Securities Exchange (ASX).
The principal activities of the subsidiaries are disclosed in Note 6 to the financial statements.
2.
Summary of significant accounting policies
2.1
Basis of preparation
The consolidated financial statements of the Group and the statement of financial position and
statement of changes in equity of the Company have been prepared in accordance with Financial
Reporting Standards in Singapore (FRSs), under the historical cost convention, except as disclosed in the
accounting policies below.
The preparation of financial statements in conformity with FRSs requires management to exercise its
judgement in the process of applying the Group’s accounting policies. It also requires the use of certain
critical accounting estimates and assumptions. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the financial statements are
disclosed in Note 3.
The financial statements are presented in Singapore Dollars (S$).
Interpretations and amendments to published standards effective in 2019
On 1 April 2019, the Group has adopted the new or amended FRSs and Interpretations of FRSs (“INT
FRSs”) that are mandatory for application for the financial year. Changes to the Group’s accounting
policies have been made as required, in accordance with the transitional provisions in the respective FRSs
and INT FRSs.
The adoption of these new or amended FRSs and INT FRSs did not result in substantial changes to the
Group’s accounting policies and had no material effect on the amounts reported for the current or prior
financial years except for the adoption of FRS 116 Leases:
Adoption of FRS 116 Leases
When the Group is the lessee
Prior to the adoption of FRS 116, non-cancellable operating lease payments were not recognised as
liabilities in the statement of financial position. These payments were recognised as rental expenses over
the lease term on a straight-line basis.
37
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.1
Basis of preparation (continued)
Interpretations and amendments to published standards effective in 2019 (continued)
Adoption of FRS 116 Leases (continued)
i)
ii)
On initial application of FRS 116, the Group has elected to apply the following practical expedients:
For all contracts entered into before 1 April 2019 and that were previously identified as leases under FRS
17 Lease and INT FRS 104 Determining whether an Arrangement contains a Leases, the Group has not
reassessed if such contracts contain leases under FRS 116; and
On a lease-by-lease basis, the Group has:
a) applied a single discount rate to a portfolio of leases with reasonably similar characteristics;
b) relied on previous assessments on whether leases are onerous as an alternative to performing an
impairment review;
c) accounted for operating leases with a remaining lease term of less than 12 months as at 1 April 2019
as short-term leases;
d) excluded initial direct costs in the measurement of the right-of-use (“ROU”) asset at the date of initial
application; and
e) used hindsight in determining the lease term where the contract contains options to extend or
terminate the lease.
There were no onerous contracts as at 1 April 2019.
For leases previously classified as operating leases on 1 April 2019, the Group has applied the following
transition provisions:
i) On a lease-by-lease basis, the Group chose to measure its ROU assets at a carrying amount as if FRS
116 had been applied since the commencement of the lease but discounted using the incremental
borrowing rate at 1 April 2019.
ii) Recognised its lease liabilities by discounting the remaining lease payments as at 1 April 2019 using
the incremental borrowing rate for each individual lease or, if applicable, the incremental borrowing
rate for each portfolio of leases with reasonably similar characteristic.
iii) The difference between the carrying amounts of the ROU assets and lease liabilities as at 1 April 2019
is not significant. Comparative information is not restated.
iv) For leases previously classified as finance leases, the carrying amount of the leased asset and finance
lease liability as at 1 April 2019 are determined as the carrying amount of the ROU assets and lease
liabilities.
The effects of adoption of FRS 116 on the Group’s financial statements as at 1 April 2019 are as follows:
Property, plant and equipment
Lease liabilities
Increase
S$
2,497,157
2,497,157
38
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.1
Basis of preparation (continued)
Interpretations and amendments to published standards effective in 2019 (continued)
Adoption of FRS 116 Leases (continued)
An explanation of the differences between the operating lease commitments previously disclosed in the
Group’s financial statements as at 31 March 2019 and the lease liabilities recognised in the balance sheet
as at 1 April 2019 are as follows:
Operating lease commitment disclosed as at 31 March 2019
Add: Undisclosed operating lease commitment
Less: Discounting effect using weighted average incremental borrowing rate of 5%
Add: Finance lease liabilities recognised as at 31 March 2019
Lease liabilities recognised as at 1 April 2019
S$
2,350,443
254,004
2,604,447
(107,290)
36,424
2,533,581
2.2
Revenue recognition
Revenue is measured based on the consideration to which the Group expects to be entitled in exchange
for transferring promised goods or services to a customer, excluding amounts collected on behalf of third
parties.
Revenue is recognised when the Group satisfies a performance obligation by transferring a promised
good or service to the customer, which is when the customer obtains control of the good or service. A
performance obligation may be satisfied at a point in time or over time. The amount of revenue
recognised is the amount allocated to the satisfied performance obligation.
(a) Rendering of services
The Group provide program sales, events site rental income, digital production and advertising
income. Revenue is recognised when the services have been performed and rendered.
(b) Commission income
Commission income is recognised when the corresponding service is provided.
(c) Sale of goods
The Group delivered the goods to locations specified by its customers and the customers have
accepted the goods in accordance with the sales contract and the collectability of the related
receivables is reasonably assured. Revenue is recognised when the goods are passed to the
customers.
(d) Programme fees
This comprises of providing financial education and training services. Revenue is recognised when the
training has been conducted. The Company will record contractual liabilities for advance payment
made for the training. There is no change to timing of revenue recognition from FRS 115.
(e) Interest income
Interest income is recognised using the effective interest method.
(f) Dividend income
Dividend income is recognised when the right to receive payment is established. It is probable that
the economic benefits associated with the dividend will flow to the Group, and the amount of the
dividend can be reliably measured.
39
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.3 Government grants
Grants from the government are recognised as a receivable at their fair value when there is reasonable
assurance that the grant will be received and the Group will comply with all the attached conditions.
Government grants received are recognised as income over the periods necessary to match them with
the related costs which they are intended to compensate, on a systematic basis. Government grants
relating to expenses are shown separately as other income.
Government grants relating to assets are deducted against the carrying amount of the assets.
2.4 Group accounting
(a) Subsidiaries
(i)
Consolidation
Subsidiaries are all entities (including structured entities) over which the Group has control.
The Group controls an entity when the Group is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are deconsolidated from the date on that control ceases.
In preparing the consolidated financial statements, inter-companies transactions and balances
and unrealised gains on transactions between group entities are eliminated. Unrealised losses
are also eliminated unless the transaction provides evidence of an impairment indicator of the
transferred asset. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the Group.
Non-controlling interests comprise the portion of a subsidiary’s net results of operations and
its net assets, which is attributable to the interests that are not owned directly or indirectly by
the equity holders of the Company. They are shown separately in the consolidated statement
of comprehensive income, statement of changes in equity, and consolidated statement of
financial position. Total comprehensive income is attributed to the non-controlling interests
based on their respective interests in a subsidiary, even if this results in the non-controlling
interests having a deficit balance.
The acquisition method of accounting is used to account for business combinations entered
into by the Group.
(ii)
Acquisitions
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 any contingent consideration arrangement
and any pre-existing equity interest in the subsidiary measured at their fair values at the
acquisition date.
Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are, with limited exceptions, measured initially at their fair values at the
acquisition date.
40
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.4 Group accounting (continued)
(a) Subsidiaries (continued)
(ii)
Acquisitions (continued)
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 identifiable net assets.
The excess of (a) 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 (b) fair value of the identifiable net assets acquired is recorded as goodwill. Please
refer to the paragraph “Intangible assets – Goodwill on acquisitions” for the subsequent
accounting policy on goodwill.
(iii)
Disposals
When a change in the Group’s ownership interest in a subsidiary result in a loss of control over
the subsidiary, the assets and liabilities of the subsidiary including any goodwill are
derecognised. Amounts previously recognised in other comprehensive income in respect of
that entity are also reclassified to profit or loss or transferred directly to retained earnings if
required by a specific Standard.
Any retained equity interest in the entity is remeasured at fair value. The difference between
the carrying amount of the retained interest at the date when control is lost and its fair value
is recognised in profit or loss.
Please refer to the paragraph “Investments in subsidiaries and associated companies” for the
accounting policy on investments in subsidiaries in the separate financial statements of the
Company.
(b) Transactions with non-controlling interests
Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control over
the subsidiary are accounted for as transactions with equity owners of the Company. Any difference
between the change in the carrying amounts of the non-controlling interest and the fair value of the
consideration paid or received is recognised within equity attributable to the equity holders of the
Company.
(c) Associated companies
Associated companies are entities over which the Group has significant influence, but not control,
generally accompanied by a shareholding giving rise to voting rights of 20% and above but not
exceeding 50%.
Investments in associated companies is accounted for in the consolidated financial statements using
the equity method of accounting less impairment losses, if any.
41
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.4 Group accounting (continued)
(c) Associated companies (continued)
(i)
Acquisitions
Investments in associated companies is initially recognised at cost. The cost of an acquisition
is measured at the fair value of the assets given, equity instruments issued or liabilities
incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition.
Goodwill on associated companies represents the excess of the cost of acquisition of the
associated company over the Group’s share of the fair value of the identifiable net assets of
the associated company and is included in the carrying amount of the investments.
(ii)
Equity method of accounting
Under the equity method of accounting, the investments are initially recognised at cost and
adjusted thereafter to recognise Group’s share of its associated companies’ post-acquisition
profits or losses of the investee in profit or loss and its share of movements in other
comprehensive income of the investee’s other comprehensive income. Dividends received or
receivable from the associated companies are recognised as a reduction of the carrying
amount of the investments. When the Group’s share of losses in an associated company equals
to or exceeds its interest in the associated company, the Group does not recognise further
losses, unless it has legal or constructive obligations to make, or has made, payments on behalf
of the associated company. If the associated company subsequently reports profits, the Group
resumes recognising its share of those profits only after its share of the profits equals the share
of losses not recognised.
Unrealised gains on transactions between the Group and its associated companies are
eliminated to the extent of the Group's interest in the associated companies. Unrealised losses
are also eliminated unless the transactions provide evidence of impairment of the assets
transferred. The accounting policies of associated companies is changed where necessary to
ensure consistency with the accounting policies adopted by the Group.
(iii)
Disposals
Investments in associated companies is derecognised when the Group loses significant
influence. If the retained equity interest in the former associated company is a financial asset,
the retained equity interest is measured at fair value. The difference between the carrying
amount of the retained interest at the date when significant influence is lost, and its fair value
and any proceeds on partial disposal, is recognised in profit or loss.
Please refer to the paragraph “Investments in subsidiaries and associated companies” for the
accounting policy on investments in associated companies and in the separate financial
statements of the Company.
42
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.5
Property, plant and equipment
(a) Measurement
(i)
(ii)
Property, plant and equipment
Property, plant and equipment are initially recognised at cost and subsequently carried at cost
less accumulated depreciation and accumulated impairment losses.
Components of costs
The cost of an item of property, plant and equipment initially recognised includes its purchase
price and any cost that is directly attributable to bringing the asset to the location and
condition necessary for it to be capable of operating in the manner intended by management.
(b) Depreciation
Depreciation of property, plant and equipment is calculated using the straight-line method to allocate
their depreciable amounts over their estimated useful lives as follows:
Office premises
Office equipment
Furniture and fittings
Motor vehicles
Useful lives
1 to 3 years
1 to 3 years
3 years
5 years
The residual values, estimated useful lives and depreciation method of property, plant and equipment
are reviewed, and adjusted as appropriate, at each reporting date. The effects of any revision are
recognised in profit or loss when the changes arise.
(c) Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment that has already been recognised
is added to the carrying amount of the asset only when it is probable that future economic benefits
associated with the item will flow to the entity and the cost of the item can be measured reliably. All
other repair and maintenance expenses are recognised in profit or loss when incurred.
(d) Disposal
On disposal of an item of property, plant and equipment, the difference between the disposal
proceeds and its carrying amount is recognised in profit or loss within “other gains and (losses)”.
2.6
Intangible assets
(a) Goodwill
Goodwill on acquisitions of subsidiaries and businesses, represents the excess of (i) the sum of 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 (ii) the fair value of the
identifiable net assets acquired. Goodwill on subsidiaries is recognised separately as intangible assets
and carried at cost less accumulated impairment losses.
Goodwill on acquisitions of associated companies represents the excess of the cost of the acquisition
over the Group’s share of the fair value of the identifiable net assets acquired. Goodwill on associated
companies is included in the carrying amount of the investments.
43
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.6
Intangible assets (continued)
(a) Goodwill (continued)
Gains and losses on the disposal of subsidiaries and associated companies include the carrying
amount of goodwill relating to the entity sold.
(b) Development of software
Research costs are recognised as an expense when incurred. Costs directly attributable to the
development of computer software are capitalised as intangible assets only when technical feasibility
of the project is demonstrated, the Group has an intention and ability to complete and use the
software and the costs can be measured reliably. Such costs include purchases of materials and
services and payroll-related costs of employees directly involved in the project.
Following initial recognition of the development expenditure as an asset, the asset is carried at cost
less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset
begins when development is complete and the asset is available for use. It has a finite useful life and
is amortised over the period of expected future benefit (2 years) on a straight-line basis. Amortisation
is recorded in cost of sales. During the period of development, the asset is tested for impairment
annually.
2.7
Investments in subsidiaries and associated companies
Investments in subsidiaries and associated companies are carried at cost less accumulated impairment
losses in the Company’s statement of financial position. On disposal of such investments, the difference
between disposal proceeds and the carrying amounts of the investments are recognised in profit or loss.
2.8
Impairment of non-financial assets
(a) Goodwill
Goodwill recognised separately as an intangible asset is tested for impairment annually and whenever
there is indication that the goodwill may be impaired.
For the purpose of impairment testing of goodwill, goodwill is allocated to each of the Group’s cash-
generating-units (“CGU”) expected to benefit from synergies arising from the business combination.
An impairment loss is recognised when the carrying amount of a CGU, including the goodwill, exceeds
the recoverable amount of the CGU. The recoverable amount of a CGU is the higher of the CGU’s fair
value less cost to sell and value-in-use.
The total impairment loss of a CGU is allocated first to reduce the carrying amount of goodwill
allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying
amount of each asset in the CGU.
An impairment loss on goodwill is recognised as an expense and is not reversed in a subsequent
period.
44
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.8
Impairment of non-financial assets (continued)
(b) Intangible assets
Property, plant and equipment
Right-of-use assets
Investments in subsidiaries and associated companies
Intangible assets, property, plant and equipment, right-of-use assets and investments in subsidiaries
and associated companies are tested for impairment whenever there is any objective evidence or
indication that these assets may be impaired.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less
cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash inflows that are largely independent of those from other assets. If this is the case, the
recoverable amount is determined for the CGU to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an impairment
loss in profit or loss.
An impairment loss for an asset other than goodwill is reversed only if, there has been a change in
the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognised. The carrying amount of this asset is increased to its revised recoverable amount, provided
that this amount does not exceed the carrying amount that would have been determined (net of any
accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in
prior years.
A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss, unless
the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation
increase. However, to the extent that an impairment loss on the same revalued asset was previously
recognised as an expense, a reversal of that impairment is also recognised in profit or loss.
2.9
Financial assets
(a) Classification and measurement
The Group classifies its financial assets in the following measurement categories:
• Amortised cost;
• Fair value through other comprehensive income (FVOCI); and
• Fair value through profit or loss (FVPL).
The classification depends on the Group’s business model for managing the financial assets as well as
the contractual terms of the cash flows of the financial asset.
The Group reclassifies debt investments when and only when its business model for managing those
assets changes.
45
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.9
Financial assets (continued)
(a) Classification and measurement (continued)
At initial recognition
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs that are directly attributable
to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value
through profit or loss are expensed in profit or loss.
At subsequent measurement
(i)
Debt instruments
Debt instruments mainly comprise of cash and cash equivalents, trade and other receivables,
listed and unlisted debt securities.
There are three subsequent measurement categories, depending on the Group’s business
model for managing the asset and the contractual cash flow characteristics of the asset:
• Amortised cost: Debt instruments that are held for collection of contractual cash flows where
those cash flows represent solely payments of principal and interest are measured at
amortised cost. A gain or loss on a debt investment that is subsequently measured at
amortised cost and is not part of a hedging relationship is recognised in profit or loss when the
asset is derecognised or impaired. Interest income from these financial assets is included in
finance income using the effective interest rate method.
•
•
FVOCI: Debt instruments that are held for collection of contractual cash flows and for sale, and
where the assets’ cash flows represent solely payments of principal and interest, are classified
as FVOCI. Movements in fair values are recognised in Other Comprehensive Income (OCI) and
accumulated in fair value reserve, except for the recognition of impairment gains or losses,
interest income and foreign exchange gains and losses, which are recognised in profit and loss.
When the financial asset is derecognised, the cumulative gain or loss previously recognised in
OCI is reclassified from equity to profit or loss and presented in “other gains/(losses)”. Interest
income from these financial assets is recognised using the effective interest rate method and
presented in “interest income”.
FVPL: Debt instruments that are held for trading as well as those that do not meet the criteria
for classification as amortised cost or FVOCI are classified as FVPL. Movement in fair values
and interest income that is not part of a hedging relationship is recognised in profit or loss in
the period in which it arises and presented in “other gains/(losses)”.
(ii)
Equity instruments
The Group subsequently measures all its equity investments at their fair values. Equity
instruments are classified as FVPL with movements in their fair values recognised in profit or
loss in the period in which the changes arise and presented in “other gains/ (losses)”, except
where the Group has elected to classify the investments as FVOCI.
Movements in fair values of investments classified as FVOCI are presented as “fair value gains
and losses” in Other Comprehensive Income. Dividends from equity investments are
recognised in profit or loss as “dividend income”.
46
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.9
Financial assets (continued)
(b) Expected credit losses
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held
at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to receive, discounted at an approximation
of the original effective interest rate. The expected cash flows will include cash flows from the sale of
collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective
of timing of the default (a lifetime ECL).
For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime
ECLs at each reporting date. The Group has established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment which could affect debtors’ ability to pay.
For debt instruments at FVOCI, the Group applies the low credit risk simplification. At every reporting
date, the Group evaluates whether the debt instrument is considered to have low credit risk using all
reasonable and supportable information that is available without undue cost or effort. In making that
evaluation, the Company reassesses the internal credit rating of the debt instrument. In addition, the
Company considers that there has been a significant increase in credit risk when the contractual
payments are more than 90 days past due.
The Group considers a financial asset in default when contractual payments are 90 days past due.
However, in certain cases, the Group may also consider a financial asset to be default when internal
or 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 financial
asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
(c) Impairment
The Group assesses on a forward looking basis the expected credit losses associated with its debt
financial assets carried at amortised cost and FVOCI. The impairment methodology applied depends
on whether there has been a significant increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by the FRS 109, which
requires expected lifetime losses to be recognised from initial recognition of the receivables.
(d) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on 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 risks and rewards of
ownership.
47
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.9
Financial assets (continued)
(d) Recognition and derecognition (continued)
On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds
is recognised in profit or loss. Any amount previously recognised in other comprehensive income
relating to that asset is reclassified to profit or loss.
On disposal of an equity investment, the difference between the carrying amount and sales proceed
is recognised in profit or loss if there was no election made to recognise fair value changes in other
comprehensive income. If there was an election made, any difference between the carrying amount
and sales proceed amount would be recognised in other comprehensive income and transferred to
retained profits along with the amount previously recognised in other comprehensive income relating
to that asset.
2.10 Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount reported in the consolidated statement of
financial position when there is a legally enforceable right to offset and there is an intention to settle on
a net basis or realise the asset and settle the liability simultaneously.
2.11 Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Group prior to the
end of financial year which are unpaid. They are classified as current liabilities if payment is due within
one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented
as noncurrent liabilities.
Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost
using the effective interest method.
2.12 Fair value estimation of financial assets and liabilities
The fair values of financial instruments traded in active markets (such as exchange-traded and over-the-
counter securities and derivatives) are based on quoted market prices at the reporting date. The quoted
market prices used for financial assets are the current bid prices; the appropriate quoted market prices
used for financial liabilities are the current asking prices.
The fair values of financial instruments that are not traded in an active market are determined by using
valuation techniques. The Group uses a variety of methods and makes assumptions based on market
conditions that are existing at each reporting date. Where appropriate, quoted market prices or dealer
quotes for similar instruments are used. Valuation techniques, such as discounted cash flow analysis, are
also used to determine the fair values of the financial instruments.
48
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.13 Leases
The accounting policy for lease before 1 April 2019 are as follows:
(a) When the Group is the lessee
The Group leases motor vehicles under finance leases and office premises and event spaces under
operating leases from non-related parties.
•
Lessee - Finance leases
Leases where the Group assumes substantially all risks and rewards incidental to ownership of the
leased assets are classified as finance leases.
The leased assets and the corresponding lease liabilities (net of finance charges) under finance leases
are recognised on the consolidated statement of financial position as property, plant and equipment
and borrowings respectively, at the inception of the leases based on the lower of the fair value of the
leased assets and the present value of the minimum lease payments.
Each lease payment is apportioned between the finance expense and the reduction of the
outstanding lease liability. The finance expense is recognised in profit or loss on a basis that reflects
a constant periodic rate of interest on the finance lease liability.
•
Lessee - Operating leases
Leases where substantially all risks and rewards incidental to ownership are retained by the lessors
are classified as operating leases. Payments made under operating leases (net of any incentives
received from the lessors) are recognised in profit or loss on a straight-line basis over the period of
the lease.
Contingent rents are recognised as an expense in profit or loss when incurred.
(b) When the Group is the lessor:
The Group leases event rental space under operating leases to non-related parties.
•
Lessor - Operating leases
Leases of event rental spaces where the Group retains substantially all risks and rewards incidental
to ownership are classified as operating leases. Rental income from operating leases (net of any
incentives given to the lessees) is recognised in profit or loss on a straight-line basis over the lease
term.
Initial direct costs incurred by the Group in negotiating and arranging operating leases are added to
the carrying amount of the leased assets and recognised as an expense in profit or loss over the lease
term on the same basis as the lease income.
Contingent rents are recognised as income in profit or loss when earned.
49
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.13 Leases (continued)
The accounting policy for leases from 1 April 2019 are as follows:
(a) When the Group is the lessee:
At the inception of the contract, the Group assesses if the contract contains a lease. A contract
contains a lease if the contract convey the right to control the use of an identified asset for a period
of time in exchange for consideration. Reassessment is only required when the terms and conditions
of the contract are changed.
• Right-of-use assets
The Group recognised a right-of-use asset and lease liability at the date which the underlying asset is
available for use. Right-of use assets are measured at cost which comprises the initial measurement
of lease liabilities adjusted for any lease payments made at or before the commencement date and
lease incentive received. Any initial direct costs that would not have been incurred if the lease had
not been obtained are added to the carrying amount of the right-of-use assets.
These right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of
the lease term.
Right-of-use assets (except for those which meets the definition of an investment property) are
presented within “Property, plant and equipment”.
•
Lease liabilities
The initial measurement of lease liability is measured at the present value of the lease payments
discounted using the implicit rate in the lease, if the rate can be readily determined. If that rate cannot
be readily determined, the Group shall use its incremental borrowing rate.
Lease payments include the following:
- Fixed payment (including in-substance fixed payments), less any lease incentives receivables;
- Variable lease payment that are based on an index or rate, initially measured using the index or rate
as at the commencement date;
- Amount expected to be payable under residual value guarantees
- The exercise price of a purchase option if is reasonably certain to exercise the option; and
- Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that
option.
For contract that contain both lease and non-lease components, the Group allocates the
consideration to each lease component on the basis of the relative stand-alone price of the lease and
non-lease component. The Group has elected to not separate lease and non lease component for
property leases and account these as one single lease component.
Lease liability is measured at amortised cost using the effective interest method. Lease liability shall
be remeasured when:
- There is a change in future lease payments arising from changes in an index or rate;
- There is a changes in the Group’s assessment of whether it will exercise an extension option; or
- There are modification in the scope or the consideration of the lease that was not part of the original
term.
Lease liability is remeasured with a corresponding adjustment to the right-of-use asset, or is recorded
in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
50
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.13 Leases (continued)
(a) When the Group is the lessee (continued)
•
Short term and low value leases
The Group has elected to not recognised right-of-use assets and lease liabilities for short-term leases
that have lease terms of 12 months or less and leases of low value leases, except for sublease
arrangements. Lease payments relating to these leases are expensed to profit or loss on a straight-
line basis over the lease term.
(b) When the Group is the lessor
The accounting policy applicable to the Group as a lessor in the comparative period were the same
under FRS 16 except when the Group is an intermediate lessor.
In classifying a sublease, the Group as an intermediate lessor classifies the sublease as a finance or an
operating lease with reference to the right of-use asset arising from the head lease, rather than the
underlying asset.
When the sublease is assessed as a finance lease, the Group derecognises the right-of-use asset
relating to the head lease that it transfers to the sublessee and recognised the net investment in the
sublease within “Trade and other receivables”. Any differences between the right-of-use asset
derecognised and the net investment in sublease is recognised in profit or loss. Lease liability relating
to the head lease is retains in the balance sheet, which represents the lease payments owed to the
head lessor.
When the sublease is assessed as an operating lease, the Group recognise lease income from sublease
in profit or loss within “Other income”. The right-of-use asset relating to the head lease is not
derecognised.
For contract which contains lease and non-lease components, the Group allocates the consideration
based on a relative stand-alone selling price basis.
2.14
Income taxes
Current income tax for current and prior periods is recognised at the amount expected to be paid to or
recovered from the tax authorities, using the tax rates and tax laws that have been enacted or
substantively enacted at the end of reporting period. Management periodically evaluates positions taken
in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax
authorities.
Deferred income tax is recognised for all temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements except when the deferred income
tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a
business combination and affects neither accounting nor taxable profit or loss at the time of the
transaction.
A deferred income tax liability is recognised on temporary differences arising on investments in
subsidiaries and associated companies, except where the Group is able to control the timing of the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in
the foreseeable future.
51
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.14
Income taxes (continued)
A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will
be available against which the deductible temporary differences and tax losses can be utilised.
Deferred income tax is measured:
(i) at the tax rates that are expected to apply when the related deferred income tax asset is realised or
the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted by the end of the reporting period; and
(ii) based on the tax consequence that will follow from the manner in which the Group expects, at the
end of the reporting period, to recover or settle the carrying amounts of its assets and liabilities.
Current and deferred income taxes are recognised as income or expense in profit or loss, except to the
extent that the tax arises from a business combination or a transaction which is recognised directly in
equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition.
The Group accounts for investment tax credits (for example, productivity and innovative credit) similar
to accounting for other tax credits where deferred tax asset is recognised for unused tax credits to the
extent that it is probable that future taxable profit will be available against which the unused tax credit
can be utilised.
2.15 Provisions
Provisions are measured at the present value of the expenditure expected to be required to settle the
obligation using a pre-tax discount rate that reflects the current market assessment of the time value of
money and the risks specific to the obligation. The increase in the provision due to the passage of time is
recognised in the statement of comprehensive income as finance expense.
Changes in the estimated timing or amount of the expenditure or discount rate are recognised in profit
or loss when the changes arise.
2.16 Employee compensation
Employee benefits are recognised as an expense, unless the cost qualifies to be capitalised as an asset.
Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Group pays fixed
contributions into separate entities such as the Central Provident Fund on a mandatory, contractual or
voluntary basis. The Group has no further payment obligations once the contributions have been paid.
Short-term compensated absences
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is
made for the estimated liability for annual leave as a result of services rendered by employees up to the
reporting date.
Employee share plan
The Group maintained an incentive securities plan pursuant to which the Company can offer shares to
eligible employees to subscribe at a discounted price. The discounted value, based on the difference
between the issue price and the market price on the date of issuance, is recognised as expense in profit
or loss.
52
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.17 Currency translation
(a) Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the
currency of the primary economic environment in which the entity operates (“functional currency”).
The financial statements are presented in Singapore Dollars, which is the functional currency of the
Company.
(b) Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are translated into
the functional currency using the exchange rates at the dates of the transactions. Currency exchange
differences resulting from the settlement of such transactions and from the translation of monetary
assets and liabilities denominated in foreign currencies at the closing rates at the reporting date are
recognised in profit or loss.
(c) Translation of Group entities’ financial statements
The results and financial position of all the Group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency
are translated into the presentation currency as follows:
(i)
(ii)
(iii)
assets and liabilities are translated at the closing exchange rates at the reporting date;
income and expenses are translated at average exchange rates (unless the average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction
dates, in which case income and expenses are translated using the exchange rates at the dates
of the transactions); and
all resulting currency translation differences are recognised in other comprehensive income
and accumulated in the currency translation reserve. These currency translation differences
are reclassified to profit or loss on disposal or partial disposal of the entity giving rise to such
reserve.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated
as assets and liabilities of the foreign operations and translated at the closing rates at the
reporting date.
2.18 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
executive committee whose members are responsible for allocating resources and assessing
performance of the operating segments.
2.19 Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents
include cash at banks, cash on hand and deposits with financial institutions which are subject to an
insignificant risk of change in value.
53
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2.
Summary of significant accounting policies (continued)
2.20 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new
ordinary shares are deducted against the share capital account.
3.
Critical accounting estimates, assumptions and judgments
Estimates, assumptions and judgements are continually evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
3.1
Critical judgements in applying the entity’s accounting policies
(a)
Provision for expected credit losses of trade receivables
The Group uses a provision matrix to calculate ECLs for trade receivables. The provision rates are
based on days past due for groupings of various customer segments that have similar loss patterns.
The provision matrix is initially based on the Group’s historical observed default rates. The Group
will calibrate the matrix to adjust historical credit loss experience with forward-looking
information. At every reporting date, historical default rates are updated and changes in the
forward-looking estimates are analysed.
The assessment of the correlation between historical observed default rates, forecast economic
conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in
circumstances and of forecast economic conditions. The Group’s historical credit loss experience
and forecast of economic conditions may also not be representative of customer’s actual default
in the future. The information about the ECLs on the Group’s trade receivables is disclosed in Note
26.
The carrying amount of the Group’s trade receivables as at 31 March 2020 was S$318,298 (2019:
S$313,208).
(b)
Deferred tax assets
Deferred tax assets in respect of current and prior period accumulated tax losses are not (unless
related to overseas jurisdictions) recognised at balance sheet date as management has assessed
that it is not probable that sufficient taxable surplus will be available to allow all or part of the
deferred income tax asset to be utilised.
(c)
Useful lives of property, plant and equipment
The useful life of an item of property, plant and equipment is estimated at the time the asset is
acquired and is based on historical experience with similar assets and takes into account
anticipated technological or other changes. If changes occur more rapidly than anticipated or the
asset experiences unexpected level of wear and tear, the useful life will be adjusted accordingly.
The carrying amounts of the Group’s property, plant and equipment as at 31 March 2020 was
S$1,572,875 (2019: S$521,566).
54
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
3.
Critical accounting estimates, assumptions and judgments (continued)
3.1
Critical judgements in applying the entity’s accounting policies (continued)
(d)
Intangible assets
The Group estimates the useful lives to amortise intangible assets based on the future
performance of the assets acquired and management's judgement of the period over which
economic benefits will be derived from the assets. The estimated useful lives of intangible assets
are reviewed periodically, taking into consideration factors such as changes in technology. The
amount and timing of recorded expenses for any period would be affected by changes in the
estimates. A reduction in the estimated useful lives of the intangible assets would increase the
recorded expenses and decrease the non-current assets.
The cost of intangible asset is amortised on a straight-line basis over the assets' useful lives.
Directors estimate the useful lives of these intangible assets to be 2 years.
(e)
Determination of lease term of contracts with extension options
As at 31 March 2020, the Group’s lease liabilities, which are measured with reference to an
estimate of the lease term, amounted to S$1,214,512, of which none arose from extension
options. Extension option is included in the lease term if the lease is reasonably certain to be
extended. In determining the lease term, management considers all facts and circumstances that
create an economic incentive to exercise the extension option.
For leases of office premises, the following factors are considered to be most relevant:
• If any leasehold improvements are expected to have a significant remaining value, the Group
typically includes the extension option in lease liabilities;
• Otherwise, the Group considers other factors including its costs required to obtain replacement
assets, and business disruptions.
As at 31 March 2020, the Group did not include the extension option in the lease term for leases
of office premises as it is not certain that the extension options will be exercised.
(f)
Leases – estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its
incremental borrowing rate to measure lease liabilities. The incremental borrowing rate is the
rate of interest that the Group would have to pay to borrow over a similar term, and with a similar
security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a
similar economic environment. The incremental borrowing rate therefore reflects what the
Group ‘would have to pay’, which requires estimation when no observable rates are available or
when they need to be adjusted to reflect the terms and conditions of the lease. The Group
estimates the incremental borrowing rate using observable inputs (such as market interest rates)
when available and is required to make certain entity-specific estimates.
55
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
4.
Property, plant and equipment
Group
Cost
At 1 April 2018
Additions
Disposals
Written-off
Disposal of subsidiaries
Exchange differences
At 31 March 2019
Adoption of FRS116
Additions
Acquisition of subsidiaries
Exchange differences
At 31 March 2020
Accumulated depreciation
At 1 April 2018
Depreciation
Disposal
Written-off
Disposal of subsidiaries
Exchange differences
At 31 March 2019
Depreciation
Exchange differences
At 31 March 2020
Net carrying amount
At 31 March 2019
At 31 March 2020
Furniture and
fittings
S$
Office
equipment
S$
Motor
vehicles
S$
1,370,881
100,832
(10,893)
(46,896)
(241,735)
(4,877)
1,167,312
-
1,167,312
90,607
1,320
16,598
1,275,837
538,908
424,296
(908)
(22,284)
(176,258)
(9,063)
754,691
235,604
13,549
1,003,844
532,382
158,744
(11,685)
(47,358)
(252,167)
3,066
382,982
-
382,982
78,208
1,624
9,880
472,694
293,843
122,205
(9,980)
(33,471)
(60,369)
(1,746)
310,482
57,357
8,871
376,710
105,851
-
-
-
-
(1,723)
104,128
-
104,128
-
-
(345)
103,783
47,633
20,855
-
-
-
(805)
67,683
20,649
(116)
88,216
Office
premises
S$
-
-
-
-
-
-
-
2,497,157
2,497,157
70,928
-
8,693
2,576,778
-
-
-
-
-
-
-
1,381,191
6,256
1,387,447
Total
S$
2,009,114
259,576
(22,578)
(94,254)
(493,902)
(3,534)
1,654,422
2,497,157
4,151,579
239,743
2,944
34,826
4,429,092
880,384
567,356
(10,888)
(55,755)
(236,627)
(11,614)
1,132,856
1,694,801
28,560
2,856,217
412,621
271,993
72,500
95,984
36,445
15,567
-
521,566
1,189,331
1,572,875
(a)
The carrying amounts of motor vehicles held under finance leases are S$15,567 (2019: S$36,445) at the
end of reporting period. The hire purchase liabilities had been fully settled at end of financial year.
(b) Right-of-use assets acquired under leasing arrangements are presented as “office premises”.
56
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
4.
Property, plant and equipment (continued)
Company
Cost
At 1 April 2018
Additions
At 31 March 2019 and 2020
Accumulated depreciation
At 1 April 2018
Depreciation
Written off
At 31 March 2019 and 2020
Net carrying amount
At 31 March 2019 and 2020
5.
Intangible assets
Compositions:
Goodwill (a)
Trademark (b)
Software Development Expenditure (c)
(a) Goodwill
Cost
Beginning of financial year
Addition from acquisition of subsidiaries
Disposal of Digital and Marketing businesses
Impairment
End of financial year
Furniture
and fittings
S$
Office
equipment
S$
Total
S$
2,497
(2,497)
-
18,454
(18,454)
-
20,951
(20,951)
-
902
416
(1,318)
-
12,416
3,077
(15,493)
-
13,318
3,493
(16,811)
-
-
-
-
Group
2020
S$
2019
S$
9,305
-
430,439
439,744
-
-
-
-
Group
2020
S$
2019
S$
-
9,305
-
-
9,305
2,148,994
-
(563,981)
(1,585,013)
-
In previous financial year, an impairment loss was recognised to the carrying amount of goodwill based on
management assessment. The impairment loss of S$Nil (2019: S$1,585,013) has been recognised in
consolidated statement of comprehensive income.
(b) Trademark
Cost
Beginning of financial year
Additions
Disposal of Digital and Marketing businesses
End of financial year
Group
2020
S$
2019
S$
-
-
-
-
47,287
1,849
(49,136)
-
Trademarks relate to the brands that the Group has registered in Singapore.
57
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
5.
Intangible assets (continued)
(c) Software Development Expenditure
Cost
Beginning of financial year
Acquisition of subsidiaries
Additions
End of financial year
Accumulated amortisation
Beginning of financial year
Amortisation charged
End of financial year
Carrying amount
Group
2020
S$
2019
S$
-
340,347
188,059
528,406
-
97,967
97,967
430,439
(d) Amortisation expense included in the statement of comprehensive income is analysed as follows:
-
-
-
-
-
-
-
-
-
Group
2020
S$
2019
S$
97,967
Company
2020
S$
2019
S$
29,140,848
277,950
(26,850,405)
2,568,393
31,883,429
(2,742,581)
(26,850,405)
2,290,443
Administrative expenses
6.
Investment in subsidiaries
Shares, at cost
Addition/(Disposal) of subsidiaries
Less: Allowance for impairment losses
In previous financial year, the Company had provided an impairment loss of S$26,850,405 which was to write
down the carrying value of a subsidiary to its recoverable amount as the investment no longer represented by
net assets of the investee.
58
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
Proportion
of
ownership
interest
2020 2019
%
%
100
100
51
44.4*
100
100
70
90.6
100
100
60
100
70
70
90
100
65
-
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
6.
a)
Investment in subsidiaries (continued)
Composition of the Group
The Group has the following investment in subsidiaries.
Name
Held by the Company
8VI Global Pte. Ltd. (a)
(f.k.a 8VIC Global Pte. Limited)
Principal
place of
business
Principal activities
Singapore
Conducting business courses
8Bit Global Pte. Ltd. (a)
Singapore
Computer programming and data
processing and hosting
Held through 8VI Global Pte. Ltd.
8VIC Singapore Pte. Ltd. (a)
8VIC Malaysia Sdn. Bhd. (b)
8VIC Taiwan Co., Ltd. (d)
8VIC (Thailand) Co., Ltd. (d)
8VIC (Australia) Pty Ltd (d)
Value Investing College Pte. Ltd. (d)
8VI China Pte. Ltd. (a)
(f.k.a 8IH China Pte. Ltd.)
Held through 8VIC Malaysia Sdn Bhd
JooY Media Sdn Bhd (c)
Held through 8VI China Pte. Ltd.
8IH China (Shanghai) Co. Ltd (d)
Singapore Dormant
Conducting business courses
Malaysia
Conducting business courses
Taiwan
Dormant
Thailand
Australia
Dormant
Singapore Dormant
Singapore
Investment holdings
Malaysia
Agency and media
70
70
People’s
Republic of
China
Business and management consultancy
services
65
-
(a)
(b)
(c)
(d)
*
Audited by Group auditor, KLP LLP
Audited by Crowe Malaysia PLT
Audited by CWC & ENG PLT
No statutory audit required
The Group holds 44.4% ownership in 8Bit Global Pte. Ltd. in 2019 and account for it as an associated company
(Note 7).
Significant restrictions
Cash and short-term deposits of S$130,608 (2019: not applicable) are held in the People’s Republic of China and
are subject to local exchange control regulations. These local exchange control regulations provide for
restrictions on exporting capital from the country, other than through normal dividends.
b)
Interest in subsidiaries with material non-controlling interest (NCI)
The Group has the following subsidiary that has NCI that are material to the Group.
Principal
place of
business
Proportion of
ownership interest
held by non-
controlling interest
Name
8Bit Global Pte. Ltd.
Singapore
49%
59
Profit allocated
to NCI during the
reporting period
S$
65,763
Accumulated NCI
at the end of
reporting period
S$
192,348
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
6.
c)
Investment in subsidiaries (continued)
Summarised financial information about subsidiary with material NCI
Summarised financial information including goodwill on acquisition and consolidation adjustments but
before intercompany eliminations of subsidiaries with material non-controlling interests, from date of
acquisition, are as follows:
Summarised statement of financial position
Subsidiary with material NCI
2020
S$
2019
S$
Current
Assets
Liabilities
Net current assets
Net assets
Summarised statement of comprehensive income
Revenue
Loss before tax
Income tax expense
Total comprehensive expense for the year
Other summarised information
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows from financing activities
1,099,951
(1,137,843)
(37,892)
392,546
539,972
(134,209)
-
(134,209)
56,568
(188,059)
500,000
-
-
-
-
-
-
-
-
-
-
-
60
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
6.
Investment in subsidiaries (continued)
d)
Disposal of subsidiaries
On 1 October 2018, the Company completed the sale of four of its subsidiaries Digimatic Media
Private Limited, Digimatic Creatives Pte. Ltd., WEWE Media Group Pte. Ltd. and Webbynomics Pte.
Ltd. (together, “Digital and Marketing Businesses” or “Disposal Group”) for a consideration of
3,031,974 Company’s shares at A$0.66 per share (the “Consideration Share”).
Carrying amounts of assets and liabilities disposed
Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Plant and equipment
Financial assets, at FVOCI
Liabilities
Trade and other payables
Current income tax liabilities
Contractual liabilities
Deferred income tax liabilities
Carrying value of net assets
Effect of the disposal of Disposal Group on cash flow:
Disposal Group
S$
3,108,243
2,139,986
962,557
257,275
100,000
6,568,061
2,337,036
82,724
1,600,276
89,591
4,109,627
2,458,434
2019
S$
Consideration for 3,031,974 Company’s shares in the form of share buy back (a)
1,977,690
Carrying amount of assets and liabilities prior to disposal (b)
Less: Non-controlling interests
Less: Foreign currency translation reserve for Disposal Group
Carrying amount of assets and liabilities derecognised (c)
Impairment loss between consideration and carrying amount of tangible assets
and liabilities derecognised (d=a-c)
Net assets disposed of (per above) (e=b-d)
Total loss on disposal:
Impairment loss between consideration and carrying amount of tangible assets
and liabilities derecognised (per above) (d=a-c)
Goodwill derecognised (Note 5) (f)
Total loss upon disposal (g=d+f)
Cash and cash equivalents in Disposal Group disposed of
Net cash outflow on disposal
2,777,621
(462,119)
(18,625)
2,296,877
(319,187)
2,458,434
(319,187)
(563,981)
(883,168)
(3,108,243)
(3,108,243)
61
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
6.
Investment in subsidiaries (continued)
e) Acquisition of subsidiaries
On 1 November 2019, the Company acquired 44.4% of investment in 8Bit Global Pte. Ltd. (previously
an associated company, “8BG”) from its subsidiary, 8VI Global Pte. Ltd. On the same date, 8BG has
capital injection of S$500,000, of which the Company has injected S$257,950, which resulted in gain
of control with total equity interest of 51%, hence 8BG has changed from associated company to
subsidiary.
On 31 March 2020, the Group’s subsidiary company, 8VI Global Pte Ltd. acquired 65% equity interest
in 8VI China Pte. Ltd. from its holding company, 8I Holdings Limited.
The fair value of the identifiable assets and liabilities of acquired entities as at date of acquisition
were:
Property, plant and equipment
Software development expenditure
Trade and other receivables
Prepayment
Cash and cash equivalents
Trade and other payables
Unearned revenue
Total identifiable net assets at fair value
Less: Non-controlling interest
Goodwill from business acquisition
Consideration transferred
Effects on cash flows
Cash paid (as above)
Cash and cash equivalents in subsidiary acquired
Cash inflow on acquisition
Fair value
recognised on
acquisition
S$
2,944
340,347
27,355
15,396
1,220,278
1,606,320
(355,011)
(716,092)
(1,071,103)
535,217
(261,072)
9,305
283,450
(283,450)
1,220,278
936,828
Revenue and profit contribution
The acquired businesses contributed revenue of S$539,972 and net loss of S$134,209 to the Group
since date of acquisition till end of financial year. Had the businesses been acquired from 1 April 2019,
consolidated revenue and consolidated loss for the year ended 31 March 2020 would have been
S$1,462,421 and S$718,115.
62
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
7.
Investment in associated companies
8Bit Global Pte. Ltd.
At beginning of financial year
Investment in associated companies
Share of results of associated companies
Impairment loss
Disposal of associated company
At end of financial year
Group
2020
S$
2019
S$
-
147,818
147,818
-
(135,939)
-
(11,879)
-
-
430,000
(252,182)
(30,000)
-
147,818
Set out below is the associated company of the Group as at 31 March 2020, which, in the opinion of the
directors, is material to the Group. The associated company as listed below have share capital consisting
solely of ordinary shares, which is held directly by the Group; the country of incorporation is also its
principal place of business.
Name of entity
Held through 8VI Global Pte. Ltd.
8Bit Global Pte. Ltd.
Learnpod Pte. Ltd.
Place of business/
country of
incorporation
% of ownership
interest
2020
2019
Singapore
Singapore
51.0%*
30.0%
44.4%
30.0%
*
The Group holds 51% ownership in 8Bit Global Pte. Ltd. in FY2020 and account for it as a subsidiary
(Note 6).
8Bit Global Pte. Ltd. (“8BG”) is principally involved in computer programming and data processing and
hosting. There are no contingent liabilities relating to the Group’s interest in the associated company.
The Group had injected more capital into the associated company which is now a subsidiary of the Group
(Note 6(e)).
Set out below is the summarised financial information for 8BG.
Summarised statement of financial position
Current assets
Includes:
- Cash and cash equivalents
Current liabilities
Includes:
- Financial liabilities (excluding trade payables)
Non-current assets
Net assets
8BG
As at 31 March
2020
S$
-
-
-
-
-
-
2019
S$
479,332
289,972
(451,045)
(51,660)
304,637
332,924
63
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
7.
Investment in associated companies (continued)
Summarised statement of comprehensive income
Revenue and other income
Expenses
Includes:
- Amortisation
Loss before tax
Income tax credit
Loss after tax
8BG
April 2019
– Oct 2019
S$
Aug 2018
– Mar 2019
S$
416,529
310,242
(722,698)
(877,875)
(20,014)
(101,546)
(306,169)
(567,633)
-
1,557
(306,169)
(566,076)
The information above reflects the amounts presented in the financial statements of the associated
company (and not the Group’s share of those amounts).
Reconciliation of summarised financial information
Reconciliation of the summarised financial information presented, to the carrying amount of the Group’s
interest in the associated company, is as follows:
At beginning of financial year/date of acquisition
Loss for the period
At date of disposal/end of financial year
8BG
April 2019
– Oct 2019
S$
Aug 2018
– Mar 2019
S$
332,924
(306,169)
26,755
856,216
(523,292)
332,924
Carrying value - Interest in associated company (44.4%)
-
147,818
8.
Financial assets at FVPL and at FVOCI
Group
Company
2020
S$
2019
S$
2020
S$
2019
S$
Current – listed quoted equity securities
Financial assets, at FVPL
402,305
181,542
-
Non-current – listed quoted equity securities
Financial assets, at FVOCI
7,443
8,219
-
409,748
189,761
-
-
-
-
64
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
9.
Trade and other receivables
Group
Company
2020
S$
2019
S$
2020
S$
Trade receivables
- third parties
Less: Allowance for credit losses
(Note 26(b))
Trade receivables (net)
Other receivables
Amount due from subsidiaries
Deposits
GST receivables
455,835
390,275
(137,537)
318,298
339,006
-
926,883
45,652
1,629,839
(77,067)
313,208
191,925
-
715,960
-
1,221,093
-
-
-
40,671
547,076
-
-
587,747
2019
S$
12,000
-
12,000
24,571
85,688
-
-
122,259
Trade receivables are unsecured, non-interest bearing and are generally on 7 to 30 days terms (2019: 7
to 30 days).
Included in current deposits is a banker’s guarantee of S$190,000 (2019: S$190,000) as required by Global
Payments Asia Pacific (Hong Kong Holding) Limited in order to provide services in accordance to the
merchant agreement.
Related party balances
Amount due from subsidiaries are non-trade, unsecured, interest-free and with no fixed terms of
repayment.
10.
Cash and cash equivalents
Cash on hand
Cash at banks
Fixed deposits
Group
Company
2020
S$
45,814
4,377,776
3,010,000
7,433,590
2019
S$
5,306
2,954,525
1,742,200
4,702,031
2020
S$
-
288,525
-
288,525
2019
S$
-
1,422,314
-
1,422,314
Cash at banks earns interest at floating rates based on daily bank deposit rates. Fixed deposit had maturity
of one to three months and had a weighted average effective interest rates of 1.42% (2019: 0.20%) per
annum of the Group.
65
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
11.
Share capital
Group
Issued and fully paid ordinary shares
At beginning of financial year
Share buy back from disposal of
Digital and Marketing businesses (2)
At end of financial year
Company
Issued and fully paid ordinary shares
At beginning of financial year
Share buy back from disposal of
Digital and Marketing businesses (2)
At end of financial year
2020
2019
No. of shares(1)
S$
No. of shares(1)
S$
40,545,626
12,895,103
43,577,600
14,872,793
-
40,545,626
-
12,895,103
(3,031,974)
40,545,626
(1,977,690)
12,895,103
40,545,626
77,423,174
43,577,600
79,400,864
-
40,545,626
-
77,423,174
(3,031,974)
40,545,626
(1,977,690)
77,423,174
The holders of ordinary shares are entitled to receive dividends as and when declared by the Company.
All ordinary shares carry one vote per share without restrictions. The ordinary shares have no par value.
(1)
The equity structure (i.e. the number and types of equity instruments issued) reflect the equity
structure of the Company, being the legal parent, including the equity instruments issued by the
Company to effect the reverse acquisition.
(2) On 1 October 2018, the Company acquired 3,031,974 shares through disposal of subsidiaries. The
total fair value of the acquired shares was S$1,977,690 and this was presented as share buy back
from another shareholders.
12.
Foreign currency translation reserve
The foreign currency translation reserve represents exchange differences arising from the translation of
the financial statements of foreign operations whose functional currencies are different from that of the
Group’s presentation currency.
13.
Other reserves
Other reserves comprise of premium paid on acquisition of 49% non-controlling interest in 8VIC
Singapore Pte. Ltd. during the financial year ended 31 March 2017.
66
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
14.
Trade and other payables
Group
Company
2020
S$
2019
S$
2020
S$
2019
S$
to
holding
to
related
199,247
283,448
687,474
247,422
306,221
478,792
5,561
-
81,393
-
-
3,857
301,730
176,336
1,648,235
172,844
42,522
1,247,801
-
-
90,811
8,383
-
49,460
-
-
-
57,843
Trade payables
- third parties
Other payables
Accruals
Amount
company
Amount
companies
GST payable
due
due
Trade payables are non-interest bearing and are generally payable based on agreed terms between the
parties.
Amount due to holding company and related companies are non-trade, unsecured, interest-free and with
no fixed terms of repayment.
15.
Unearned revenue
Advances from customers
Deferred grant income
Group
Company
2020
S$
3,696,702
149,100
3,845,802
2019
S$
1,721,306
-
1,721,306
2020
S$
2019
S$
-
16,100
16,100
-
-
-
Advances from customers represent amount received from customers but not yet recognised to the profit
or loss as service has yet to be rendered as at reporting date.
16.
Lease liabilities
Current
Finance lease liabilities (i)
Lease liabilities (ii)
Non-current
Finance lease liabilities (i)
Lease liabilities (ii)
Group
2020
S$
2019
S$
-
1,146,938
1,146,938
-
67,574
67,574
18,567
-
18,567
17,857
-
17,857
Total
1,214,512
36,424
67
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
16.
Lease liabilities (continued)
(i) Finance lease liabilities
Minimum lease payments due
- Not later than one year
- Between one and five years
Less: Future finance charges
Present value of finance lease liabilities
Group
2020
S$
2019
S$
-
-
-
-
-
19,988
18,304
38,292
(1,868)
36,424
As at 31 March 2019, the Group leases motor vehicles from non-related parties under finance leases.
Finance lease liabilities were reclassified to lease liabilities on 1 April 2019 arising from the adoption
of FRS 116.The finance lease liabilities had been fully settled as at end of 31 March 2020.
(ii) Lease liabilities - The Group as a lessee
Nature of the Group’s leasing activities
The Group leases office premises for the purpose of running financial education programmes and
back office operations.
(a) Carrying amounts
ROU assets classified within property, plant and equipment
31 March 2020
S$
1 April 2019
S$
Office premises
1,189,331
2,497,157
(b) Depreciation charged during the financial year
2020
S$
1,381,191
80,429
Office premises
(c) Interest expense
Interest expense on lease liabilities
(d) There is no lease expense not capitalised in lease liabilities.
(e) Total income from subleasing ROU assets in 2020 was S$154,783.
(f) Total cash outflow for all the office leases in 2020 was S$1,436,440.
(g) Addition of ROU assets during the financial year 2020 was S$70,928.
68
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
16.
Lease liabilities (continued)
(ii) Lease liabilities - The Group as a lessee (continued)
(h) Reconciliation of lease liabilities arising from financing activities:
Beginning of financial year
Principal and interest payments
Non-cash changes
- Adoption of FRS 116
- Addition during the year
- Interest expense
- Foreign exchange movement
End of financial year
2020
S$
2019
S$
36,424
(1,474,008)
54,910
(20,888)
2,497,157
70,928
81,574
2,437
1,214,512
-
-
2,402
-
36,424
17.
Deferred income taxes
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current income tax assets against current income tax liabilities and when the deferred income taxes relate
to the same taxation authority.
The amounts, determined after appropriate offsetting, are shown on the balance sheet as follows:
Group
2020
S$
2019
S$
Company
2020
S$
2019
S$
Deferred tax assets:
- Accelerated tax depreciation
- Unearned revenue
Deferred tax liabilities:
- Accelerated tax depreciation
Net deferred tax assets:
2,373
261,958
264,331
(4,000)
260,331
(4,422)
183,287
178,865
(4,000)
174,865
-
-
-
-
-
The movement in net deferred income tax (assets)/liabilities is as follows:
Group
2020
S$
2019
S$
Company
2020
S$
2019
S$
Beginning of financial year
Tax (credited)/charged to
profit or loss
Disposal of subsidiaries
Currency translation differences
End of financial year
(174,865)
(123,415)
(86,058)
-
592
(260,331)
34,606
(89,591)
3,535
(174,865)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The Group has unrecognised tax losses of S$2,739,695 (2019: S$2,625,760) and capital allowances of
S$Nil (2019: S$147,067) at the balance sheet date which can be carried forward and used to offset
against future taxable income subject to meeting certain statutory requirements by those companies
with unrecognised tax losses and capital allowances in their respective countries of incorporation. The
tax losses and capital allowances have no expiry date.
69
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
18.
Revenue
Type of goods or services
Rendering of services
Sale of goods
Commission income
Programme fees
Timing of transfer of goods or services
At a point of time
Over time
19.
Other income
Dividend income
Fair value loss on financial assets at FVPL
Foreign exchange differences (net)
Gain on disposal of associated company
Interest income
PIC and other government grants
Rental income
Miscellaneous income
Group
2020
S$
2019
S$
634,069
-
-
10,225,282
10,859,351
1,177,481
2,466,802
2,338,728
16,308,326
22,291,337
10,319,379
539,972
10,859,351
22,291,337
-
22,291,337
Group
2020
S$
6,511
(4,392)
-
8,121
12,704
44,915
154,783
13,479
236,121
2019
S$
6,674
-
59,426
-
58,073
115,250
97,215
14,595
351,233
70
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
20.
Profit/(Loss) before tax
The following items have been included in arriving at profit/(loss) before tax:
Group
Advertising fee
Agency cost
Amortisation of software development expenditure
Amortisation of prepayment
Audit fee:
- Auditors of the Company
- Other auditors
Cost of goods sold - Ecommerce
Depreciation of property, plant and equipment
Foreign exchange differences (net)
Impairment of financial assets
Impairment of non-financial assets
IT expenses
Marketing expenses
Merchant charges
Office expenses
Online marketing expenses
Other COS
Professional fees
Program costs
Rental
Speakers fees
Software expenses
Travelling expenses
Employee benefits expense (Note 21)
21.
Employee benefits expense
Employee benefits expenses (including directors)
Salaries, fees and bonus
CPF Contributions
Commissions and other benefits
2020
S$
-
59,370
97,967
-
56,750
10,770
-
1,694,801
4,218
74,635
-
185,601
2,369,969
589,493
196,902
-
61,990
139,395
671,062
-
206,435
53,671
318,949
2,931,499
2019
S$
2,130,767
401,890
-
50,000
21,935
151,985
982,692
567,356
-
958,070
305,000
63,859
5,579,248
706,651
333,531
998,895
488,842
337,028
516,777
1,778,065
3,390,099
-
513,893
4,086,445
Group
2020
S$
2019
S$
2,225,176
294,258
412,065
2,931,499
3,282,145
344,935
459,365
4,086,445
71
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
22.
Income tax
The major components of income tax expenses recognised in profit or loss for the years ended 31 March
2020 and 2019 were:
Current income tax:
Current year
(Over)/Under provision in respect of prior years
Deferred income tax:
Current year
Group
2020
S$
2019
S$
184,706
(9,318)
175,388
204,945
146,967
351,912
(86,058)
34,606
Income tax expense recognised in profit or loss
89,330
386,518
Relationship between tax expenses and accounting profit/(loss)
A reconciliation between tax expenses and the product of accounting profit/(loss) multiplied by the
applicable corporate tax rate for the financial years ended 31 March 2020 and 2019 were as follows:
Profit/(Loss) before tax
Share of results of associated company, net of tax
Profit/(Loss) before tax and share of results of associated
Group
2020
S$
868,751
135,939
2019
S$
(4,329,146)
252,182
company
1,004,690
(4,076,964)
Income tax using the statutory tax rate of 17% (2019: 17%)
170,797
(693,085)
Tax effects of:
Non-deductible expenses
Income not subject to taxation
Tax exemptions
Deferred tax assets not recognised
Utilisation of previously unrecognised deferred tax assets
Effect of tax rates in foreign jurisdictions
(Over)/Under provision in respect of prior years
Income tax expense recognised in profit or loss
30,598
(13,902)
(32,425)
237,108
(307,815)
14,287
(9,318)
89,330
500,275
(80,069)
(16,575)
446,379
-
82,626
146,967
386,518
The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction.
72
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
22.
Income tax (continued)
Movement in current income tax liabilities/(assets):
Group
2020
S$
2019
S$
Company
2020
S$
2019
S$
Beginning of financial year
Income tax paid
Tax expense
(Over)/Under provision in respect of prior years
Disposal of subsidiaries
Currency translation differences
End of financial year
41,947
(191,061)
184,706
(9,318)
-
(2,084)
24,190
202,569
(426,276)
204,945
146,967
(82,724)
(3,534)
41,947
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23.
Earnings per share
Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the
Company by the weighted average number of ordinary shares outstanding during the financial year.
Group
2020
2019
Net profit/(loss) attributable to equity holders of the Company (S$)
1,072,047
(4,867,345)
Weighted average number of ordinary shares outstanding for basic
earnings per share
40,545,626
42,074,073
Basic earnings per share (Singapore cents per share)
2.64
(11.57)
24.
Significant related party transactions
In addition to the related party information disclosed elsewhere in the financial statements, the following
transactions with related parties took place at terms agreed between the parties during the financial
year:
Cost of lease sharing charged to related parties
Admin handling expenses charged by related parties
Consultancy expense charged by related parties
Compensation of key management personnel
Salaries, fees and bonus
CPF Contributions
Commissions and other benefits
Group
2020
S$
291,340
(185,000)
(24,000)
2019
S$
372,714
(96,600)
(24,368)
Group
2020
S$
2019
S$
712,193
62,947
-
775,140
858,831
32,963
12,419
904,213
73
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
25.
Operating lease commitments
Where the Group is a lessee
The Group have entered into commercial leases on rental of offices. The lease has average life of 3 years
with renewal option included in the contracts. There are no restrictions places upon the Group by
entering into these leases.
As at 31 March 2019, the future minimum rental payable under non-cancellable operating leases
contracted for but not recognised as liabilities, are as follows:
Not later than one year
Later than one year but not later than five years
Group
2019
S$
1,163,876
1,186,567
2,350,443
As disclosed in Note 2.1, the Group has adopted FRS 116 on 1 April 2019. These lease payments have
been recognised as ROU assets and lease liabilities on the balance sheet as at 31 March 2020, except for
short-term and low value leases.
Where the Group is a lessor
The Group lease out office to non-related parties under non-cancellable operating leases. The lessees
are required to pay fixed lease payments during the lease period.
The future minimum lease receivables under non-cancellable operating leases contracted for at the
balance sheet date but not recognised as receivables, are as follows:
Not later than one year
Group
2020
S$
2019
S$
69,750
69,750
The Group has not recognised leases receivables disclosed above as at 31 March 2020 as it is short term
lease contract.
74
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
26.
Financial risk management
Financial risk factors
The Group’s activities expose it to market risk (including currency risk, interest rate risk and price risk),
credit risk and liquidity risk. The Group’s overall risk management strategy seeks to minimise any adverse
effects from the unpredictability of financial markets on the group’s financial performance.
The Board of Directors reviews and agrees policies and procedures for the management of these risks,
which are executed by the Chief Financial Officer. The audit committee provides independent oversight
to the effectiveness of the risk management process.
(a) Market risk
(i) Currency risk
The Group operates in Asia with dominant operations in Singapore and Malaysia. Entities in the
Group regularly transact in currencies other than their respective functional currencies (“foreign
currencies”).
Currency risk arises within entities in the Group when transactions are denominated in foreign
currencies primarily Singapore Dollar (“SGD”), Malaysian Ringgit (“MYR”), Australian Dollar
(“AUD”), United States Dollar (“USD”), Chinese Renminbi (“RMB”), Japanese Yen (“JPY”), New
Taiwan Dollar (“NTD”) and Thailand Baht (“THB”).
In addition, the Group is exposed to currency translation risk on the net assets in foreign
operations. Currency exposure to the net assets of the Group’s foreign operations in Malaysia,
Taiwan and China are managed primarily through transactions denominated in the relevant
foreign currencies.
The Group’s currency exposure based on the information provided to key management is as
follows:
MYR
S$
USD
S$
AUD
S$
NTD
S$
THB
S$
RMB
S$
1,137,400
128,155
187,358
7,443
1,460,356
126,538
-
151,409
-
277,947
74,243
-
-
-
74,243
91,192
379,781
-
-
470,973
27,063
-
-
-
27,063
257,360
61,026
-
-
318,386
(245,077)
(222,140)
(467,217)
(10,851)
-
(10,851)
(5,561)
-
(5,561)
(27,280)
(107,918)
(135,198)
-
(32,122)
(32,122)
(9,485)
-
(9,485)
At 31 March 2020
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets, at FVPL
Financial assets, at FVOCI
Financial liabilities
Trade and other payables
Lease liabilities
Net financial
assets/(liabilities)
993,139
267,096
68,682
335,775
(5,059)
308,901
Currency exposure of
financial assets/
(liabilities) net of those
denominated in the
respective entities’
functional currencies
-
267,096
66,317
12,385
-
(4,216)
75
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
26.
Financial risk management (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
At 31 March 2019
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets, at FVPL
Financial assets, at FVOCI
Financial liabilities
Trade and other payables
Finance lease liabilities
MYR
S$
USD
S$
AUD
S$
NTD
S$
THB
S$
JPY
S$
574,697
92,064
181,542
8,219
856,522
179,682
-
-
-
179,682
37,800
-
-
-
37,800
715,072
207,652
-
-
922,724
52,463
-
-
-
52,463
19,187
55,624
-
-
74,811
(428,012)
(36,424)
(464,436)
-
-
-
-
-
-
(32,881)
-
(32,881)
(2,092)
-
(2,092)
-
-
-
Net financial assets
392,086
179,682
37,800
889,843
50,371
74,811
Currency exposure of
financial assets net of
those denominated in
the respective entities’
functional currencies
-
179,682
30,969
-
-
74,811
The Company’s currency exposure based on the information provided to key management is as
follows:
At 31 March 2020
Financial assets
Cash and cash equivalents
Financial liabilities
Trade and other payables
Net financial assets
USD
S$
AUD
S$
32,075
71,878
-
(5,561)
32,075
66,317
Currency exposure of financial assets net of those
denominated in the respective entities’ functional currencies
32,075
66,317
At 31 March 2019
Financial assets
Cash and cash equivalents
Amount due from subsidiaries
Financial liabilities
Trade and other payables
Net financial assets
171,365
-
171,365
30,969
30,118
61,087
(80)
(8,303)
171,285
52,784
Currency exposure of financial assets net of those
denominated in the respective entities’ functional currencies
171,285
52,784
76
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
26.
Financial risk management (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
If the AUD, USD, NTD, RMB and JPY change against the SGD by 8% (2019: 4%), 5% (2019: 3%), 7%
(2019: 2%), 3% (2019: 3%), 7% (2019: 2%) respectively with all other variables including tax rate
being held constant, the effects arising from the net financial asset that are exposed to currency
risk will be as follows:
Increase / (Decrease)
Profit after tax
Group
2020
S$
2019
S$
Company
2020
S$
2019
S$
4,403
(4,403)
1,028
(1,028)
4,403
(4,403)
1,752
(1,752)
11,084
(11,084)
4,474
(4,474)
1,331
(1,331)
7,108
(7,108)
720
(720)
(105)
105
-
-
-
-
-
-
1,242
(1,242)
-
-
-
-
-
-
-
-
-
-
-
-
AUD against SGD
- Strengthened
- Weakened
USD against SGD
- Strengthened
- Weakened
NTD against SGD
- Strengthened
- Weakened
RMB against SGD
- Strengthened
- Weakened
JPY against SGD
- Strengthened
- Weakened
77
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
26.
Financial risk management (continued)
(a) Market risk (continued)
(ii) Price risk
The Group is exposed to equity securities price risk arising from the investments held by the Group
which are classified either as financial assets, at FVPL or FVOCI. These securities are listed in
Singapore, Malaysia and the United States. To manage its price risk arising from investments in
equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in
accordance with the limits set by the Group.
If prices for equity securities listed in Singapore, Malaysia and the United States had changed by
17% (2019: 7%), 17% (2019: 7%) and 17% (2019: 7%) respectively with all other variables including
tax rate being held constant, the effects on profit after tax and other comprehensive income
would have been:
Increase / (Decrease)
Profit after tax
2020
2019
Profit after
tax
S$
Other
comprehensive
income
S$
Profit after
tax
S$
Other
comprehensive
income
S$
Group
Listed in Singapore
- increased by
- decreased by
Listed in Malaysia
- increased by
- decreased by
8,918
(8,918)
-
-
-
-
26,484
(26,484)
1,050
(1,050)
10,548
(10,548)
Listed in the United States
- increased by
- decreased by
21,364
(21,364)
-
-
-
-
-
-
-
-
-
-
(b) Credit risk
Credit exposure to an individual counterparty is restricted by credit limits that are approved by the
Board of Directors based on ongoing credit evaluations. The counterparty’s payment pattern and
credit exposure are continuously monitored at the entity level by the respective management and at
the Group level by the Executive Management.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor
failing to engage in a repayment plan with the Group. The Group categorises a loan or receivable for
write off when a debtor fails to make contractual payments greater than a year past due based on
historical collection trend. Where loans or receivables have been written off, the company continues
to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are
made, these are recognised in profit or loss.
The Group applies the simplified approach to providing for expected credit losses prescribed by FRS
109, which permits the use of the lifetime credit loss provision for all trade receivables.
78
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
26.
Financial risk management (continued)
(b) Credit risk (continued)
To measure the expected credit losses, trade receivables, have been grouped based on shared credit
risk characteristics and days past due. In calculating the expected credit loss rates, the Group
considers historical loss rates for each category of customers, and adjusts for forward-looking
macroeconomic data.
The Group and Company uses four categories of internal credit risk rating for its financial assets at
amortised costs. These four categories reflect the respective credit risk and how the loan loss
provision is determined for each of those categories.
A summary of assumptions underpinning the Group’s expected credit loss model is as follow:
Group and
Company’s category
of internal credit
rating
Performing
Underperforming
Non-performing
Write-off
Group and Company’s definition
of category
Customers have a low risk of default and a strong capacity
to meet contractual cash flows.
Loans for which there is a significant increase in credit risk.
As significant increase in credit risk is presumed if interest
and/or principal repayments are 30 days past due.
Interest and/or principal repayments are 60-365 days past
due.
Interest and/or principal repayments are 365 days past due
and there is no reasonable expectation of recovery.
Basis for
recognition of
expected credit loss
provision
12-month expected
credit losses
Lifetime expected
credit losses
Lifetime expected
credit losses
Asset is written off
Movements in credit loss allowance for trade receivables are set out as follows:
Balance at beginning of year
Charge for the year
Written off
Disposal of Digital and Marketing Businesses
Balance at end of year
Group
2020
S$
77,067
62,635
(2,165)
-
137,537
2019
S$
88,606
77,067
-
(88,606)
77,067
Company
2020
S$
2019
S$
-
-
-
-
-
-
-
-
-
-
The Group’s credit risk exposure in relation to trade receivables, under FRS 109 as at 31 March 2020
are set out in the provision matrix as follows:
2020
Expected loss rate
Gross carrying amount (S$)
Credit loss allowance (S$)
2019
Expected loss rate
Gross carrying amount (S$)
Credit loss allowance (S$)
Current
1-30 days
Past due
31-60
days
61-90
days
> 90 days
Total
0%
255,975
-
0%
26,221
-
5%
12,977
(714)
10%
26,488
(2,649)
100%
134,174
(134,174)
455,835
(137,537)
0%
174,425
-
0%
30,542
-
5%
62,003
(3,100)
10%
54,820
(5,482)
100%
68,485
(68,485)
390,275
(77,067)
79
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
26.
Financial risk management (continued)
(c) Liquidity risk
Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents and the
ability to close out market positions at a short notice. At the reporting date, assets held by the Group
and the Company for managing liquidity risk included cash and short term deposits as disclosed in
Note 10.
The table below analyses non-derivative financial liabilities of the Group and the Company into
relevant maturity groupings based on the remaining period from the reporting date to the contractual
maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.
Balances due within 12 months equal their carrying amounts as the impact of discounting is not
significant.
Group
At 31 March 2020
Trade and other payables
Lease liabilities
At 31 March 2019
Trade and other payables
Finance lease liabilities
Company
At 31 March 2020
Trade and other payables
At 31 March 2019
Trade and other payables
(d) Capital risk
One year or
less
S$
Two to five
years
S$
1,648,235
1,176,581
-
68,630
1,247,801
19,988
-
18,304
One year
or less
S$
90,811
57,843
Management controls the capital of the Group in order to maintain a good debt to equity ratio,
provide the shareholders with adequate returns and to ensure that the Group can fund its operations
and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by
financial assets.
There are no externally imposed capital requirements.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and
adjusting its capital structure in response to changes in these risks and in the market. These responses
include the management of debt levels, distributions to shareholders and share issues.
80
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
26.
Financial risk management (continued)
(e) Fair value measurements
The table below presents assets and liabilities measured and carried at fair value and classified by
level of the following fair value measurement hierarchy:
(i) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(ii) inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and
(iii) inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(Level 3).
Group
As at 31 March 2020
Financial assets:
Financial assets, at FVPL (quoted)
Financial assets, at FVOCI (quoted)
As at 31 March 2019
Financial assets:
Financial assets, at FVPL (quoted)
Financial assets, at FVOCI (quoted)
Level 1
S$
Level 2
S$
Level 3
S$
402,305
7,443
-
-
181,542
8,219
-
-
-
-
-
-
There were no transfers between levels 1 and 2 during the year.
The fair value of financial instruments traded in active markets (such as fair value through profit and
loss and financial assets through other comprehensive income) is based on quoted market prices at
the reporting date. The quoted market price used for financial assets held by the Group is the current
bid price. These instruments are included in Level 1.
The carrying amount less impairment provision of trade receivables and payables are assumed to
approximate their fair values.
(f) Financial instruments by category
Group
2020
S$
2019
S$
Company
2020
S$
2019
S$
Financial assets, at FVPL
Financial assets, at FVOCI
Financial assets at amortised cost
Financial liabilities at amortised cost
402,305
7,443
9,017,777
(2,686,411)
181,542
8,219
5,923,124
(1,241,703)
-
-
876,272
(90,811)
-
-
1,544,573
(57,843)
81
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
27.
Segment information
For management purposes, the Group is organised into geographical business units based on the
management reporting structure and organisational set-up, in line with the main business divisions
driving the growth of the Group. Geographically, management manages and monitors the business in
two primary geographic areas namely Singapore and Malaysia, where the Company and certain
subsidiaries operate. Based on the management reporting structure, management reviews the business
segments’ performance and to make strategic decisions.
The segment under the reporting model are as follows:
i.
ii.
iii.
Financial Education: involved in providing financial education in the discipline of value investing
and supporting a community of value investors from 29 cities globally under the “VI” brand.
Others: included fintech business and subsidiaries that provided financial education and training
in Taiwan, Thailand and China.
Disposal Group: involved in specialists and training academy; content creation, branding and
marketing solutions provider; and marketing and selling products via ecommerce platform.
Management monitors the operating results of its business units separately for the purpose of making
decisions about resource allocation and performance assessment. Segment performance is evaluated
based on operating profit or loss which in certain respects, as explained in the table below, is measured
differently from operating profit or loss in the consolidated financial statements.
82
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
27.
Segment information (continued)
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
Singapore
S$
Financial Education
Malaysia
S$
Total
S$
Others
Corporate
Adjustments
and
eliminations
Per
consolidated
financial
statements
S$
S$
S$
S$
6,884,651
389,704
7,274,355
3,215,983
69,816
3,285,799
10,100,634
459,520
10,560,154
758,717
-
758,717
-
216,000
216,000
-
(675,520)
(675,520)
10,859,351
-
10,859,351
31 March 2020
Revenue
External customers
Inter-segment
Results:
Depreciation and amortisation
Share of result of associated companies
Segment profit/(loss)
(1,209,919)
(135,939)
1,827,584
(286,248)
-
244,412
(1,496,167)
(135,939)
2,071,996
(296,601)
-
(861,872)
-
-
(430,703)
Assets:
Additions to plant and equipment
Additions to intangible assets
Segment asset
Liabilities:
Segment liabilities
25,797
-
7,013,434
67,814
-
1,924,349
93,611
-
8,937,783
75,204
197,364
1,877,826
-
-
1,160,458
(3,577,254)
(1,617,795)
(5,195,049)
(1,530,596)
(103,054)
-
-
-
-
-
-
-
(1,792,768)
(135,939)
779,421
168,815
197,364
11,976,067
(6,828,699)
83
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
27.
Segment information (continued)
31 March 2019
Revenue
External customers
Inter-segment
Results:
Depreciation and amortisation
Share of result of associated company
Impairment of goodwill
Segment (loss)/profit
Assets:
Investment in associated company
Additions to plant and equipment
Segment asset
Liabilities:
Segment liabilities
Education
S$
Disposal Group
S$
Corporate
S$
Adjustments
and
eliminations
S$
Per
consolidated
financial
statements
S$
12,751,656
-
12,751,656
9,383,252
282,541
9,665,793
156,429
-
156,429
-
(282,541)
(282,541)
22,291,337
-
22,291,337
(459,749)
(252,182)
-
(1,385,351)
147,818
178,924
5,686,506
(154,038)
-
-
343,473
(3,492)
-
-
(1,357,496)
-
-
(1,585,013)
(2,316,290)
-
80,652
-
-
-
1,571,506
(3,125,990)
-
(57,843)
(617,279)
(252,182)
(1,585,013)
(4,715,664)
147,818
259,576
7,258,012
(3,183,833)
-
-
-
-
Nature of adjustments and eliminations to arrive at amounts reported in the consolidated financial statements. Inter-segment revenues and
expenses are eliminated on consolidation.
84
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
28.
Events occurring after reporting date
On 3 April 2020, Singapore announced a stringent set of preventive measures collectively called a "circuit
breaker", to be applied from 7 April to 4 May, in response to the growing number of new cases. The circuit
breaker was extended to 1 June on 21 April following continued untraced transmission within the
community.
With the implementation of the circuit breaker in Singapore and the movement control order in Malaysia,
the Company’s financial education business transferred all its offline trainings and programmes in
Singapore and Malaysia online. This temporarily change in business operation had not significantly affect
the financial performance of the financial education business subsequent to the financial year to the date
of this report.
29.
New or revised accounting standards and interpretations
Amendments to FRS 3 Business Combination (effective for annual periods beginning on or after 1 January
2020)
The amendments provide new guidance on the assessment of whether an acquisition meets the
definition of a business under FRS 3. To be considered a business, an acquisition would have to include
an output and a substantive process that together significantly contribute to the ability to create outputs.
A framework is introduced to evaluate when an input and substantive process are present. To be a
business without outputs, there will now need to be an organised workforce.
The definition of the term ‘outputs’ is narrowed to focus on goods and services provided to customers,
generating investment income and other income, and it excludes returns in the form of lower costs and
other economic benefits.
It is also no longer necessary to assess whether market participants are capable of replacing missing
elements or integrating the acquired activities and assets.
Entities can apply a ‘concentration test’ that, if met, eliminates the need for further assessment. Under
this optional test, where substantially all of the fair value of gross assets acquired is concentrated in a
single asset (or a group of similar assets), the assets acquired would not represent a business.
These amendments are applied to business combinations and asset acquisitions with acquisition date on
or after 1 January 2020. Early application is permitted. The Group does not expect any significant impact
arising from applying these amendments.
30.
Authorisation of financial statements for issue
The financial statements for the financial year ended 31 March 2020 were authorised for issue by the
Board of Directors on the date of the Directors' Statement.
85
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
ADDITIONAL
INFORMATION
Shareholders
Information
as
at
26
June
2020
8VIC
Holdings
Limited
–
Ordinary
Shares
The
Company
has
ordinary
shares
on
issue.
These
are
listed
on
the
Australian
Securities
Exchange
under
ASX
code:
8VI.
Details
of
trading
activity
are
published
daily
by
electronic
information
vendors.
All
ordinary
shares
carry
one
vote
per
share
without
restriction.
Analysis
of
Shareholders
and
CDI
Holders*
Category
(size
of
holding)
1
–
1,000
1,001
–
5,000
5,001
–
10,000
10,001
–
100,000
100,001
–
and
over
Number
of
holders
698
351
29
58
18
1,154
Number
of
shares
311,633
745,567
221,854
1,855,735
37,410,837
40,545,626
%
of
issued
capital
0.77%
1.84%
0.55%
4.58%
92.26%
100.00%
The
number
of
investors
holding
less
than
a
marketable
parcel
of
1,250
8VI
shares
(based
on
a
share
price
of
A$0.40)
was
763.
They
hold
390,652
8VI
shares
in
total.
Twenty
Largest
Shareholders
and
CDI
Holders*
Low
Ming
Li
Registered
Holder
1. 8I
Holdings
Limited
2. Kao
Junyang
3. HSBC
Custody
Nominees
(Australia)
Limited
4. Seah
Weiming
5. 8
Investment
Pte
Ltd
6.
7. BNP
Paribas
Noms
Pty
Ltd
8. Citicorp
Nominees
Pty
Limited
9. Wong
Wai
Chuan
10. Chua
Chun
Woei
11. Yeow
Hin
Lai
12. Bernard
Siah
Wee
Boon
13. Goh
Siew
Bee
14. Tan
Teck
Yong
15. Tian
Dehua
16. Low
Chern
Hong
17. Joshua
Zhang
Yaolin
18. Chua
Teik
Gaik
19. J
P
Morgan
Nominees
Australia
Pty
Limited
20. Latha
Pillay
ALL
OTHER
SHAREHOLDERS
Total
Number
of
Shares
31,779,825
1,157,646
903,658
494,000
446,926
336,514
329,322
295,197
289,887
275,111
268,245
175,000
128,800
125,000
103,306
101,200
101,000
100,200
95,108
80,000
2,959,681
40,545,626
%
of
issued
capital
78.38%
2.86%
2.23%
1.22%
1.10%
0.83%
0.81%
0.73%
0.71%
0.68%
0.66%
0.43%
0.32%
0.31%
0.25%
0.25%
0.25%
0.25%
0.23%
0.20%
7.30%
100.00%
Notes
*
CDI
Holders
are
holder
of
CHESS
Depository
Interests
issued
by
CHESS
Depository
Nominees
Pty
Limited,
where
each
CDI
represents
a
beneficial
interest
in
one
ordinary
share.
86
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
ADDITIONAL
INFORMATION
Shareholders
Information
as
at
26
June
2020
(continued)
Substantial
Shareholders
and
CDI
Holders**
Name
8I
Holdings
subsidiaries
Limited
and
its
Direct
Interest
Shares
%
of
voting
power
Deemed
Interest
Shares
%
of
voting
power
32,226,751
79.48%
-‐
-‐
Notes
**
This
table
is
compiled
on
the
basis
that
each
holding
of
CDIs
is
a
separate
holding
and
accordingly,
the
holding
of
shares
by
CHESS
Depository
Nominees
Pty
Limited
is
ignored.
Current
On-‐Market
Buy-‐Back
(ASX
Listing
Rule
4.10.18)
There
is
no
current
on-‐market
buy-‐back
arrangement
for
the
Company.
Corporate
Governance
Statement
The
directors
of
8VIC
Holdings
Limited
support
and
adhere
to
the
principles
of
corporate
governance,
recognising
the
need
for
the
highest
standard
of
corporate
behaviour
and
accountability.
Please
refer
to
the
corporate
governance
statement
and
the
appendix
4G
released
to
ASX
and
posted
on
the
Company
website
at
www.8vicglobal.com.
The
directors
are
focused
on
fulfilling
their
responsibilities
individually,
and
as
a
Board,
for
the
benefit
of
all
the
Company’s
stakeholders.
That
involves
recognition
of,
and
a
need
to
adopt,
principles
of
good
corporate
governance.
The
Board
supports
the
guidelines
on
the
“Principles
of
Good
Corporate
Governance
and
Recommendations
–
3rd
Edition”
established
by
the
ASX
Corporate
Governance
Council.
Given
the
size
and
structure
of
the
Company,
the
nature
of
its
business
activities,
the
stage
of
its
development
and
the
cost
of
strict
and
detailed
compliance
with
all
of
the
recommendations,
it
has
adopted
a
range
of
modified
systems,
procedures
and
practices
which
enables
it
to
meet
the
principles
of
good
corporate
governance.
The
Company’s
practices
are
mainly
consistent
with
those
of
guidelines
and
where
do
not
correlate
with
the
recommendations
in
the
guidelines
the
Company
considers
that
its
adopted
practices
are
appropriate
to
it.
87
8VIC Holdings Limited and its Subsidiaries
Annual Report FY2020
8VIC Holdings Limited
(Incorporated in the Republic of Singapore)
Company Registration Number: 201505599H
ARBN 605 944 198
www.8vicglobal.com
Singapore
Goldbell Towers, 47 Scotts Road, #03-03/04, Singapore 228233
T: +65 6225 8480
Australia
C/- SmallCap Corporate Pty Ltd, Suite 6, 295 Rokeby Road, Subiaco WA, Australia, 6008
T: +61 8 6555 2950 F: +61 8 6166 0261