For personal use only For personal use only Breaking
(New)
Grounds
The
year under
review has been an
eventful one, and we look forward
to this coming year when
we are hopeful that your
company can transform to
a producer.
Asaplus Resources Limited Annual Report 2013
01
For personal use only “
The resource estimate
calculated based on a
cut off figure of 30% Fe
and in compliance with
current JORC standards
has now increased from
1,527,500 tonnes as
of 21 August 2012 (the
date of the Company's
prospectus for its IPO)
to 3,480,700 tonnes,
all in the inferred
category. This represents
a significant 127%
increase.
”
02
Asaplus Resources Limited Annual Report 2013
For personal use only Chairman’s Statement
Dear Shareholders
It is my privilege to present to you the first annual report of your Company, Asaplus Resources Limited. This inaugural
annual report covers the period from 24 April 2012, the date it was incorporated, to 31 March 2013. Please study it
carefully as it sets out your Company's business developments, its financial results for the period and its financial position
as of the 31 March 2013.
As you will agree with me, the most significant milestone during the period under review was the Company's listing on
the Australian Securities Exchange (ASX) on 19 November 2012. The listing on the ASX marks only the beginning of the
Company's development and there is still more that needs to be done. In this respect, I am pleased to report that there
has been good progress.
During this period, the Company:
(a) completed detailed geological mapping of 2 km2 of the main iron ore body area on 1:2,000 scale map;
(b) carried out geomagnetic survey on the entire 5.60 km2 tenement area of the Silverstone Project and interpreted the
results thereof. Based on the results of the geomagnetic survey, the Company was able to identify areas where
further drilling should be focused on.
(c) completed drilling of twelve drill holes with total drill depth of 1,190.50 metres; and
(d) completed five cross section maps based on general test reports to determine the extent of the ore bodies.
With these exploration works, the resource estimate calculated based on a cut off figure of 30% Fe and in compliance
with current JORC standards has now increased from 1,527,500 tonnes as of 21 August 2012 (the date of the
Company's prospectus for its IPO) to 3,480,700 tonnes, all in the inferred category. This represents a significant 127%
increase.
Your directors are cautiously optimistic that the Company will be able to obtain the requisite production and mining
permits to commence commercial production this coming year.
The Company's first annual general meeting will be held at the time, date and place set out in the Notice of Annual
General Meeting sent to you earlier. I strongly encourage you to exercise your rights as a shareholder and attend this
meeting to play an active role in the affairs of your company. I look forward to meeting you there.
Yours faithfully
Ir Che Mohamed Hussein Bin Mohamed Shariff
Chairman
Asaplus Resources Limited Annual Report 2013
03003
For personal use only
Board of Directors
The business and working experience of each Director is summarised below:
Ir Che Mohamed Hussein Bin Mohamed Shariff (appointed 1 August 2012)
Hussein is a professional engineer educated in the United Kingdom. He studied
at Loughborough University of Technology under a Malaysian government
scholarship, and graduated with a BSc (Hons) degree in Civil Engineering. He is
currently a member of both the Institute of Engineers Malaysia and the Board of
Engineers Malaysia. Hussein has a distinguished career in public service having
served in various positions in the state economic development corporation
of a Malaysian state where his recent postings have been senior positions at
the highest levels of management. Therefore, he brings with him more than
30 years’ experience in property development, construction and technical
management, including managing a state-owned large-scale granite quarry.
The Board elected to appoint Hussein as Chairman because his experience
and qualification give him an effective combination of technical, engineering,
management and leadership skills to discharge his duties as Chairman.
LAU Eng Foo (Andy) (appointed 1 August 2012)
Andy is the founder of and driving force behind a successful group of
companies in Malaysia specialising in civil engineering construction, earthwork,
and granite and iron ore extraction contracting. He has been involved in these
lines of business since the early 1970’s. Andy has relinquished a major portion
of the day-to-day management role in the Malaysian companies to fully focus
on his role as the Company’s Executive Director to spearhead the Company’s’
business in China. As Managing Director, Andy will provide the entrepreneurial
drive and strategic direction for the Company.
Dominic LIM Kian Gam (appointed 1 August 2012)
Dominic is the Head of Loan Syndication and Distribution at Oversea-Chinese
Banking Corporation Limited (“OCBC Bank”). Dominic has been in the banking
industry for more than 20 years and has extensive knowledge of banking
matters in the Asia-Pacific region. He has extensive experience in a wide array
of lending products, ranging from structured financing and debt securitization
to project and leveraged financing, and encompassing all industries and
sectors. Prior to joining OCBC Bank, he was with several international
investment and commercial banks.
Dominic is a business graduate from the National University of Singapore
and has a MSc degree in Finance from Zicklin School of Business, Baruch
College, a constituent college of City University of New York. Dominic is a
member of Beta Gamma Sigma Society, an international honour society for
business students, graduates and scholars founded in 1913 at the University of
Wisconsin in the United States.
04
004
Asaplus Resources Limited Annual Report 2013
For personal use only Senior Management
The day-to-day management of the Group’s business is tasked to LAU Eng Foo (Andy) who is the Company’s
Managing Director. He is supported by a small core management team of very experienced personnel comprising:
QIU Changsheng
General Manager of China Operations
Changsheng is a qualified forestry engineer who graduated from Fujian College of Forestry. He joined the provincial
civil service of Fujian Province in 1983. He served in various positions culminating in his appointment as Director of the
Forestry Bureau of Datian County. During his 30-year career in the Fujian Province provincial civil service, Changsheng
has established a good network of contacts at all levels and at all government departments in Fujian Province, and is
thoroughly familiar with the workings, procedures and working culture of the various provincial government departments.
As General Manager, Changsheng is primarily responsible for all local regulatory compliance and licensing matters. He is
also the Group’s primary point of contact with all government departments, including the Land and Resource Department
which is the local authority responsible for renewals of exploration licences and issuance of mining permits.
HONG Xusheng
Controller & Deputy General Manager
Xusheng’s principal role as Controller & Deputy General Manager is to be responsible for the efficient functioning of the
Group’s day-to-day operations and activities. He also supervises the finance departments of the Company's subsidiaries
and is responsible for their financial management function. He assists the Executive Director and General Manager in
business development and on new projects to be undertaken by the Group.
Xusheng graduated from Xiamen Polytechnic of Automotive Technology. His professional experience is in international
trade having spent a large portion of his working career at Xiamen International Trade Group Corporation, a large state-
owned international import-export corporation dealing in a wide range of products including chemicals, agricultural
commodities, minerals and metals.
LOY Wei Choo, Joseph
Geological Manager
Joseph, who graduated with a BSc (Hons) degree majoring in geology and chemistry from the University of Malaya,
is a former government geologist. He had worked in the Singapore government service for 11 years. As a geologist
attached to the then Public Works Department, Joseph and another colleague were credited as being instrumental in
the preparation of the professionally acclaimed 1976 monograph Geology of the Republic of Singapore. After leaving
government service, Joseph developed and managed a number of granite quarries in Malaysia, and acted as a
geological consultant to a number of exploration companies and mine owners in Malaysia and Indonesia.
As the Group’s Geological Manager, Joseph will oversee and be responsible for the implementation of the Group’s
planned geological exploration programme. He will work closely with accredited PRC geologists for PRC licensing
purposes. After the Company’s listing on ASX, he has been working with the Company’s independent geologist to meet
the Company’s reporting obligations under the Listing Rules.
Asaplus Resources Limited Annual Report 2013
05005
For personal use only Corporate Governance
The primary responsibility of the Board is to represent and advance Shareholders’ interests and to protect the interests of
all stakeholders. To fulfil this role the Board is responsible for the overall corporate governance of the Company, including
its strategic direction, establishing goals for management and monitoring the achievement of these goals.
The responsibilities of the Board include:
(1) Protection and enhancement of Shareholder value;
(2) Formulation, review and approval of the objectives and strategic direction of the Company;
(3) Approving all significant business transactions, including acquisitions, divestments and capital expenditure;
(4) Monitoring the financial performance of the Company by reviewing and approving budgets and results;
(5) Ensuring that adequate internal control systems and procedures exist and that compliance with these systems
and procedures is maintained;
Identification of significant business risks and ensuring that such risks are adequately managed;
(6)
(7) Reviewing the performance and remuneration of executive directors and key staff;
(8) Establishment and maintenance of appropriate ethical standards; and
(9) Evaluating and adopting, as appropriate, ASX Corporate Governance Council’s Corporate Governance
As of the date of this annual report, the Board comprise of two independent non-executive directorsnamely Che
Mohamed Hussein Bin Mohamed Shariff and Dominic Lim Kian Gam, and one executive director, Lau Eng Foo (Andy).
Che Mohamed Hussein Bin Mohamed Shariff acts as chair of the Board.
At present, the Board does not have a fixed number of meetings it will hold per annum. The Board meets as frequently
as may be required to deal with matters arising. A record of the directors' attendance at Board meetings (either in person
or by telecommunication means) held during the period under review is set out below:
Director
Date appointed
Held after date appointed
Attended
Che Mohamed Hussein Bin Mohamed Shariff
1 August 2012
Dominic Lim Kian Gam
Lau Eng Foo (Andy)
1 August 2012
1 August 2012
4
4
4
4
4
4
Number of Meetings
As the Company is listed on ASX, it is subject to the continuous disclosure obligations under the ASX Listing Rules, the
Australian Corporations Act and the Singapore Companies Act. Subject to the exceptions outlined below, the Company
has adopted ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations to
determine an appropriate system of control and accountability to best fit its business and operations commensurate with
these guidelines.
Full copies of the Company's corporate governance policies are available for viewing or downloads on the Company’s
website (www. asaplusresources.com).
As the Company’s activities develop in size, nature and scope, the implementation of additional corporate governance
structures will be given further consideration.
The Board sets out below its “if not, why not” report in relation to those matters of corporate governance where the
Company’s practices depart from the recommendations.
06
006
Asaplus Resources Limited Annual Report 2013
For personal use only
Recommendation
Reference
ASX Guideline
Disclosure of
departure
2.4
A nomination committee
3.2
A diversity policy
4.1, 4.2, 4.3
An audit committee
Corporate Governance
Explanation for departure
The Board considers that the Company is not currently of a has
not been established size to justify the formation of a nomination
committee. The Board as a whole undertakes the process of
reviewing the skill base and experience of existing Directors to
enable identification or attributes required in new Directors.
Where appropriate, independent consultants will be engaged to
identify possible new candidates for the Board.
The Board supports workplace diversity but considers that the
has not been established Company is not of a size or maturity to
justify a formal diversity policy. The Company has only recently
been incorporated. The Board’s priority has been to ensure that
its members have the appropriate level of experience and skills to
manage the Company at its early stages of operation rather than
focussing on gender and other diversity factors.
The Board considers that the Company is not of a size, nor are
has not been established its financial affairs of such complexity,
to justify the formation of an audit committee. The Board as a
whole undertakes the selection and proper application of
policies, the integrity of financial reporting, the identification and
management of risk and review of the operation of the internal
control systems. When performing the role of an audit committee
or when the Board meets as the audit committee it will be
chaired by Dominic LIM Kian Gam who has a Bachelor's degree
in business and a MSc degree in finance and has relevant
financial expertise.
8.1
A remuneration committee The Board considers that the Company is not currently of a
has not been established size, nor are its affairs of such
complexity, to justify the formation of a remuneration committee.
The Board as a whole is responsible for the remuneration
arrangements for Directors and executives of the Company and
considers it more appropriate to set aside time at Board
meetings each year to specifically address matters that would
ordinarily fall to a remuneration committee.
All members of the Board were appointed on 1 August 2012 by the then directors in addition to the then existing
directors. Directors, other than one managing director, appointed under this provision of the Company's constitution
hold office only until the next annual general meeting. Lau Eng Foo (Andy) is a managing director of the Company and
is therefore not subject to re-election. Accordingly, Che Mohamed Hussein Bin Mohamed Shariff and Dominic Lim Kian
Gam will retire at the annual general meeting to be held on 29 June 2013 and, being eligible, offers themselves for re-
election.
Asaplus Resources Limited Annual Report 2013
007
07
For personal use only
Directors’ Report
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period Ended 31 March 2013
The Directors submit to the members the audited consolidated financial statements of the Group and the statement of
financial position of the Company for the financial period from 24 April 2012 (date of incorporation) to 31 March 2013.
1 DIRECTORS
The Directors of the Company in office at the date of this report are:
Name
Particulars
Ir Che Mohamed Hussein Bin Mohamed Shariff
Independent Non-executive Director, Chairman (appointed 1 August 2012)
LAU Eng Foo (Andy)
Dominic LIM Kian Gam
Executive Director (appointed 1 August 2012)
Independent Non-executive Director (appointed 1 August 2012)
2 ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE SHARES OR DEBENTURES
During and at the end of the financial period, neither the Company nor any of its subsidiaries was a party to any
arrangement of which the object was to enable the Directors to acquire benefits through the acquisition of shares in
or debentures of the Company or any other corporate body, other than as disclosed in this report.
3 DIRECTORS’ INTERESTS IN SHARES
None of the Directors who held office at the end of the financial period had any interests in the shares of the
Company or its related corporation, except as follows:
Holdings registered in the
name of Director or nominee
Holdings in which Director is
deemed to have an interest
As at date of appointment
01.08.2012
As at
31.03.2013
As at date of appointment
01.08.2012
As at
31.03.2013
Ir Che Mohamed Hussein
LAU Eng Foo (Andy)
Dominic LIM Kian Gam
4 SHARE OPTIONS
-
-
-
-
-
-
-
39,000,000
-
39,000,000
-
-
During the financial period, no options were granted to take up unissued shares of the Company and no shares
were issued by virtue of the exercise of options to take up unissued shares of the Company. At the end of the
financial period, there were no unissued shares of the Company under option.
5 DIRECTORS’ CONTRACTUAL BENEFITS
Expect as disclosed in the financial statements, since the date of incorporation, no Director of the Company has
received or become entitled to receive a benefit by reason of a contract made by the Company or a related
corporation with a firm of which the Director is a member, or what company in which the Company has a substantial
financial interest.
6 AUDITORS
The independent auditor, MGI SINGAPORE PAC, Certified Public Accountants, has expressed its willingness to
accept the re-appointment.
On behalf of the Directors
LAU Eng Foo (Andy)
Executive Director
Ir Che Mohamed Hussein Bin Mohamed Shariff
Independent Non-executive Chairman
08
008
Asaplus Resources Limited Annual Report 2013
For personal use only
Financial Contents
010
Statement by Directors
011
Independent Auditor’s Report
012
Statement of Financial Position
013
Consolidatd Statement of Comprehensive Income
014
Consolidated Statement of Changes in Equity
015
Consolidatd Statement of Cash Flows
016
Notes to the Financial Statements
046
Analysis of Shareholdings
Asaplus Resources Limited Annual Report 2013
09
For personal use only Statement By Directors
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period Ended 31 March 2013
In the opinion of the Directors:
(a)
the accompanying statements of financial position, consolidated statement of comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows, together with notes thereon, are
drawn up so as to give a true and fair view of the state of affairs of the Company and of the Group as at 31 March
2013 and of the results of the business, changes in equity and cash flows of the Group for the financial period from
24 April 2012 (date of incorporation) to 31 March 2013; 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.
On behalf of the Directors
LAU Eng Foo (Andy)
Executive Director
Ir Che Mohamed Hussein Bin Mohamed Shariff
Independent Non-executive Chairman
010
Asaplus Resources Limited Annual Report 2013
For personal use only
Independent Auditor’s Report
To The Members Of Asaplus Resources Limited
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Asaplus Resources Limited (“the Company”) and its
subsidiaries (“the Group”), which comprise the statements of financial position of the Group and the Company as at
31 March 2013, the consolidated statement of comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows of the Group for the financial period from 24 April 2012 (date of incorporation) to
31 March 2013, and a summary of significant accounting policies and other explanatory information.
MANAGEMENT’S RESPONSIBILITy FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with
International Financial Reporting Standards (“IFRS”) and for such internal controls as management determines are
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
AUDITOR’S RESPONSIBILITy
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal controls relevant to the entity’s preparation of financial statements that give a true and fair view 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 entity’s internal controls. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OPINION
In our opinion, the consolidated financial statements of the Group and the statement of financial position of the Company
give a true and fair view of the state of affairs of the Group and of the Company as at 31 March 2013, and the results,
changes in equity and cash flows of the Group for the financial period from 24 April 2012 (date of incorporation) to
31 March 2013 in accordance with International Financial Reporting Standards.
MGI SINGAPORE PAC
Certified Public Accountant
Singapore
Asaplus Resources Limited Annual Report 2013
011
For personal use only Statement Of Financial Position
Asaplus Resources Limited And Its Subsidiaries
As At 31 March 2013
ASSETS
Current Assets
Cash and cash equivalents
Amount due from subsidiaries
Other receivables
Non-Current Assets
Plant and equipment
Exploration and evaluation assets
Goodwill
Investment in subsidiaries
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Other payables
Amount due to subsidiary
TOTAL LIABILITIES (CUrrENT)
NET ASSETS
EQUITY
Share capital
Loss for the financial period
Foreign currency translation reserve
TOTAL EQUITY
The Company
31.3.2013
$
Note
The Group
31.3.2013
$
5
6
7
8
9
10
11
12
6
13
1,603
3,211,516
742,816
3,955,935
-
-
-
10,000,291
10,000,291
2,179,984
-
758,086
2,938,070
95,044
672,432
9,988,661
-
10,756,137
13,956,226
13,694,207
108,378
26,000
111,733
-
134,378
111,733
13,821,848
13,582,474
14,057,100
(235,252)
-
14,057,100
(435,688)
(38,278)
13,821,848
13,582,474
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
012
Asaplus Resources Limited Annual Report 2013
For personal use only
Consolidatd Statement Of Comprehensive Income
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation To 31 March 2013)
Revenue
Cost of sales
Gross profit
Other income
Administrative expenses
Loss before tax
Income tax expense
Loss for the financial period attributable to members
of the parent entity
Exchange differences on translation foreign controlled entities
Total Comprehensive (Expense) For The Financial Period
Attributable To The Parent Entity
Loss Per Share
Basic Loss Per Share (cents)
Diluted Loss Per Share (cents)
Period from 24.04.12
to 31.3.2013
$
Note
-
-
40,360
(476,048)
(435,688)
-
(435,688)
(38,279)
(474,626)
(0.63)
(0.63)
-
14
15
17
18
18
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Asaplus Resources Limited Annual Report 2013
013
For personal use only
Consolidated Statement Of Changes In Equity
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation To 31 March 2013)
Note
Share
capital
$
2
At 24.04.2012
(Date of incorporation)
Issue of share
14,564,998
Capital raising cost
13
(507,900)
Foreign
currency
translation
reserve
$
Loss for
the period
$
-
-
-
-
-
-
Total equity
$
2
14,564,998
(507,900)
Total comprehensive
expense for the period
-
(435,688)
(38,938)
(474,626)
Balance at 31.03.2013
13
14,057,100
(435,688)
(38,938)
13,582,474
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
014
Asaplus Resources Limited Annual Report 2013
For personal use only
Consolidatd Statement Of Cash Flows
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
Note
$
Period from 24.04.12
to 31.3.2013
Cash flow from operating activities
Loss before taxation
Adjustments for:
Depreciation of plant and equipment
Unrealised foreign exchange loss
Operating cash flow before movements in working capital
(Increase) in other receivables
Increase in other payables
Net cash (used in) operating activities
Cash flows from investing activities
Exploration expenditure
Purchases of plant and equipment
Net cash inflow from acquisition of subsidiaries
Net cash (used in) investing activities
Cash flow from financing activities
Proceeds from issuance of shares
Capital raising cost
Net cash from financing activities
Net increase in cash and bank balances
Cash and cash equivalents at the beginning of the period
8
8
13
(435,688)
7,725
(37,719)
(466,341)
(758,086)
111,733
(1,112,694)
(672,432)
(103,329)
11,339
(764,422)
4,565,000
(507,900)
4,057,100
2,179,984
-
Cash and cash equivalents at the end of the period
5
2,179,984
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Asaplus Resources Limited Annual Report 2013
015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
1. CORPORATE INFORMATION
Asaplus Resources Limited is the Group’s ultimate parent company. The Company was incorporated under the laws
of Singapore as a public company limited by shares on 24 April 2012 and was registered as a foreign company
in Australia on 22 June 2012.
The Company was listed on the Australian Securities Exchange on 16 November 2012. The registered office of the
Company in Singapore is located at 21 Bukit Batok Crescent, #15-74 WCEgA Tower, Singapore 658065.
The principal activities of the Company are the exploration, mining and marketing of iron ore.
The Company has not commenced trading since it was incorporated on 24 April 2012 to the date of this report.
The financial statements of the Company and of the Group for the period ended 31 March 2013 were authorised for
issue in accordance with a resolution of the Directors on the date of the Statement by Directors.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation
The financial statements are prepared in accordance with IFRSs, which collective term includes all applicable
individual International Financial Reporting Standards and Interpretations approved by the IASB, and all
applicable individual International Accounting Standards (“IASs”) and Interpretations as originated by the
Board of the International Accounting Standards Committee and adopted by the IASB. The financial
statements have been prepared under the historical cost convention, except as disclosed in the accounting
policies below.
The financial statements are presented in Australian Dollars which is the Company’s functional currency. All
financial information is presented in Australian Dollars, unless otherwise stated.
Significant accounting estimates and judgments
The preparation of the financial statements in conformity with IFRS requires the use of judgments, estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the financial period. Although these estimates are based on management’s best knowledge of current
events and actions, actual results may differ from those estimates.
The critical accounting estimates and assumptions used or areas involving a high degree of judgment are
described below.
016
Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.1 Basis of preparation (Cont’d)
Critical assumptions used and accounting estimates in applying accounting policies
Depreciation of plant and equipment
The cost of plant and equipment is depreciated on a straight-line basis over their economic useful lives
estimated to be within 3-5 years, net of residual value. These are common life expectancies applied in the
industry. The carrying amount of the plant and equipment at 31 March 2013 was $95,044 (note 8). Changes
in the expected level of usage and technological developments could impact the economic useful lives and
the residual values of these assets, therefore future depreciation could be revised.
Carrying value of non-current assets
Non-current assets are carried at cost less accumulated depreciation. These carrying amounts are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amounts may not
be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to
sell and value-in-use. No impairment indicators existed at 31 March 2013 and therefore an impairment test
was not performed.
Exploration and evaluation expenditure
The Group has capitalize expenditure relating to exploration and evaluation of the Silverstone Project located
on the west side of the Dai Yun mountains in Datian County, Fujian Province in the PRC. The Group has
assessed that the capitalized expenditure will be recoverable through the projects successful development.
Such capitalized expenditure at reporting date is $ 672,432 (note 9).
Impairment of goodwill
The goodwill comprises the value of exploration licence to the Silverstone Iron Ore project held by Datian
Silverstone Mining Co., Ltd.
Goodwill is tested for impairment annually and at other times when such indicators exist. This requires
management to estimate the expected future cash flows of the cash-generating unit to which goodwill is
allocated and to apply a suitable discount rate in order to determine the present value of those cash flows.
The future cash flows are most sensitive to budgeted gross margins, growth rates estimated and discount
rate used. If the expectation is different from the estimation, such difference will impact the carrying value of
goodwill.
2.2 Adoption of new and amended IFRSs
The Company has adopted all the new and revised standards and interpretations of FRS (INT FRS) that are
effective for financial periods beginning on or after 24 April 2012. The adoption of these standards and
interpretations did not have any effect on the financial performance or position of the Company and the
Group.
Asaplus Resources Limited Annual Report 2013
017
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.3
IFRS not yet effective
The IASB has issued a number of new and revised IAS and IFRS which were relevant to the Company and
the Group. The Company and the Group have not early adopted the following IAS and IFRS that have been
issued but are not yet effective.
reference
Description
Amendments to IAS 1
Amendments to IAS 19
Amendments to IFRS 1
Amendment to IFRS 7
Amendment to IFRSs
10,11and 12
IFRS10
FRS 12
FRS 13
IAS 27 (revised 2011)
IAS 28 (revised 2011)
IFRIC 20
Amendments to IAS 32
IFRS 9
FRS 11
Financial statement presentation regarding
other comprehensive income
Employee benefits
First time adoption on government loans
Financial instruments: Disclosures on asset
and liability offsetting
Transition guidance
Consolidated financial statements
Disclosure of interests in other entities
Fair value measurements
Separate financial statements
Associates and joint ventures
Stripping costs in the production phase of a surface mine
Financial instruments: Presentation on asset
and liability offsetting
Financial instrument
Joint arrangements
Effective for
annual periods
beginning on
or after
1 July 2012
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2014
1 January 2015
1 January 2013
There are no other IFRSs, IAS or IFRIC interpretations that are not yet effective that would be expected to
have a material impact on the Company and the Group, except for the amendments to IAS 1.
The nature of the impending change in accounting policy on adoption of the amendments to IAS 1 is
described below.
Amendments to IAS 1 Presentation of Items of Other Comprehensive Income
The amendments to IAS 1 Presentation of Items of Other Comprehensive Income (OCI) are effective for
financial periods beginning on or after 1 July 2012.
The amendments to IAS 1 changes the grouping of items presented in OCI. Items that could be classified to
profit or loss at a future point in time would be presented separately from items which will never be
reclassified. As the amendments only affects the presentation of items that already recognized in OCI, the
Group does not expect any impact on its financial position or performance upon adoption of this standard.
018
Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies
Consolidation
The financial statements of the Group include the financial statements of the Company and its subsidiaries
made up to the end of the financial period. Information on the Company’s subsidiaries is given in Note11.
Subsidiaries are entities (including special purpose entities) over which the Company has power to govern the
financial and operating policies so as to obtain benefits from its activities, generally accompanied by a
shareholding giving rise to a majority of the voting rights. The existence and effect of potential voting rights
that are currently exercisable or convertible are considered when assessing whether the Company controls
another entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They
are de-consolidated from the date on which control ceases.
In preparing the consolidated financial statements, transactions, balances and unrealised gains on
transactions between group entities are eliminated. Unrealised losses are also eliminated but are considered
an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interests are that part of the net results of operations and of net assets of a subsidiary
attributable to the interests which 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 balance sheet. 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.
Acquisition of businesses
The acquisition method of accounting is used to account for business combinations by the Group.
The consideration transferred for the acquisition of a subsidiary comprises the fair value of the assets
transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred
also includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing
equity interest in the subsidiary.
Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are,
with limited exceptions, measured initially at their fair values at the acquisition date.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
The excess 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 the fair value of the net
identifiable assets acquired is recorded as goodwill. Please refer to the paragraph “Intangible assets -
Goodwill” for the subsequent accounting policy on goodwill.
Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities. The existence and effect
of potential voting rights that are currently exercisable or convertible are considered when assessing whether
there is control.
In the Company’s statement of financial position, subsidiaries are carried at cost less any impairment loss
unless the subsidiary is held for sale or included in a disposal group.
Intangible assets
Intangible assets are accounted for using the cost model with the exception of goodwill. Capitalised costs are
amortised on a straight-line basis over their estimated useful lives for those considered as finite useful lives.
After initial recognition, they are carried at cost less accumulated amortisation and accumulated impairment
losses, if any. In addition, they are subject to annual impairment testing. Indefinite life intangibles are not
amortised but are subject to annual impairment testing.
Intangible assets are written off where, in the opinion of the Directors, no further future economic benefits are
expected to arise.
Goodwill
Goodwill arising on an acquisition of a subsidiary is subject to impairment testing.
goodwill is tested for impairment at least annually, irrespective of whether there is any indication that they are
impaired. All other assets are tested for impairment whenever there are indications that the asset’s carrying
amount may not be recoverable.
For the purpose of assessing impairment, where an asset does not generate cash inflows largely independent
from those of other assets, the recoverable amount is determined for the smallest group of assets that
generate cash inflow independently (i.e. a CGU). As a result, some assets are tested individually for
impairment and some are tested at CGU level. Goodwill in particular is allocated to those CGUs that are
expected to benefit from synergies of the related business combination and represent the lowest level within
the Group at which the goodwill is monitored for internal management purposes.
An impairment loss is recognised for CGUs, to which goodwill has been allocated, are credited initially to the
carrying amount of goodwill. Any remaining impairment loss is charged pro rata to the other assets in the
CGU, except that the carrying value of an asset will not be reduced below the higher of its individual fair value
less cost to sell, or value-inuse, if determinable.
An impairment loss is recognised as an expense immediately for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market
conditions less costs to sell, and value-in-use. In assessing value-in-use, the estimated future cash flows are
discounted to its present value using a pre-tax discount rate that reflects current market assessment of time
value of money and the risk specific to the asset.
020
Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Goodwill (Cont’d)
An impairment loss on goodwill is not reversed in subsequent periods whilst an impairment loss on other
assets is reversed if there has been a favourable change in the estimates used to determine the asset’s
recoverable amount and only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised.
Impairment losses recognised in an interim period in respect of goodwill is not reversed in a subsequent
period.
Exploration and evaluation costs
Exploration and evaluation costs relate to Exploration Licence in relation to the Silverstone Project acquired
and exploration and evaluation expenditures capitalized in the Silverstone Project that is at the exploration
stage.
Exploration and evaluation assets are initially recognised at cost. Subsequent to initial recognition, they are
stated at cost less any accumulated impairment losses.
Exploration and evaluation expenditures comprises costs which are directly attributable to acquisition,
surveying, geological, geochemical and geophysical, exploratory drilling; land maintenance, sampling, and
assessing technical feasibility and commercial viability in relation to the Silverstone Project.
The carrying amount of the exploration and evaluation assets is reviewed annually and adjusted for impairment
in accordance with IAS 36 “Impairment of Assets” whenever one of the following events or changes in facts
and circumstances indicate that the carrying amount may not be recoverable (the list is not exhaustive):
the period for which the Group has the right to explore in the specific area has expired during the
(a)
period or will expire in the near future, and is not expected to be recovered;
(b) substantive expenditure on further exploration for and evaluation of mineral resources in the specific
area is neither budgeted nor planned;
(c) exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resources and the group has decided to discontinue such
activities in the specific area; or
(d) sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the
carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful
development or by sale.
An impairment loss is recognised in the profit or loss whenever the carrying amount of an asset exceeds its
recoverable amount.
Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if
any. Depreciation is computed utilising the straight-line method to write off the cost of these assets over their
estimated useful lives as follows:
Computer
Office equipment
Furniture and fittings
Motor vehicle
Years
3
3
5
4
The cost of plant and equipment includes expenditure that is directly attributable to the acquisition of the items.
Dismantlement, removal or restoration costs are included as part of the cost of plant and equipment if the
obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring or using the
asset.
Subsequent expenditure relating to plant and equipment that have been recognised is added to the carrying
amount of the asset when it is probable that future economic benefits, in excess of the standard of performance
of the asset before the expenditure was made, will flow to the Group and the cost can be reliably measured.
Other subsequent expenditure is recognised as an expense during the financial peirod in which it is incurred.
For acquisitions and disposals during the financial period, depreciation is provided from the month of
acquisition and to the month before disposal. Fully depreciated plant and equipment are retained in the books
of accounts until they are no longer in use.
Depreciation methods and useful lives are reviewed, and adjusted as appropriate, at each reporting date as a
change in estimates.
Financial assets
Financial assets, other than hedging instruments, can be divided into the following categories: financial assets
at fair value through the profit or loss, held-to-maturity investments, loans and receivables and available-for-
sale financial assets. Financial assets are assigned to the different categories by management on initial
recognition, depending on the purpose for which the assets were acquired. The designation of financial assets
is re-evaluated and classification may be changed at the reporting date with the exception that the designation
of financial assets at fair value through the profit or loss is not revocable.
All financial assets are recognised on their trade date - the date on which the Company and the Group commit
to purchase or sell the asset. Financial assets are initially recognised at fair value, plus directly attributable
transaction costs except for financial assets at fair value through the profit or loss, which are recognised at fair
value.
Derecognition of financial assets occurs when the rights to receive cash flows from the investments expire or
are transferred and substantially all of the risks and rewards of ownership have been transferred. An assessment
for impairment is undertaken at least at the end of each reporting period whether or not there is objective
evidence that a financial asset or a group of financial assets is impaired.
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Financial assets (Cont’d)
Non-compounding interest and other cash flows resulting from holding financial assets are recognised in the
profit or loss when received, regardless of how the related carrying amount of financial assets is measured.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor
with no intention of trading the receivables. They are included in current assets, except for maturities greater
than 12 months after the end of reporting period. These are classified as non-current assets.
Loans and receivables include trade and other receivables. They are subsequently measured at amortised
cost using the effective interest method, less provision for impairment. If there is objective evidence that the
asset has been impaired, the financial asset is measured at the present value of the estimated future cash
flows discounted at the original effective interest rate.
Impairment losses are reversed in subsequent periods when an increase in the asset’s recoverable amount
can be related objectively to an event occurring after the impairment was recognised, subject to a restriction
that the carrying amount of the asset at the date the impairment is reversed does not exceed what the
amortised cost would have been had the impairment not been recognised. The impairment or write back is
recognised in the profit or loss.
Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that do not qualify for inclusion in
any of the other categories of financial assets. They are included in non-current assets unless management
intends to dispose of the investment within 12 months of the end of reporting period.
All financial assets within this category are subsequently measured at fair value with changes in value
recognised in equity, net of any effects arising from income taxes, until the financial assets is disposed of or is
determined to be impaired, at which time the cumulative gains or losses previously recognised in equity is
included in the profit or loss for the period.
When a decline in the fair value of an available-for-sale financial asset has been recognised directly in equity
and there is objective evidence that the asset is impaired, the cumulative loss that had been recognised
directly in equity shall be removed from the equity and recognised in the profit or loss even though the
financial asset has not been derecognised.
The amount of the cumulative loss that is removed from equity and recognised in the profit or loss shall be the
difference between the acquisition cost (net of any principal repayment and amortisation) and current fair
value, less any impairment loss on that financial asset previously recognised in the profit or loss.
Impairment losses recognised in the profit or loss for equity investments classified as available-for-sale are not
subsequently reversed through the profit or loss.
Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Available-for-sale financial assets (Cont’d)
Objective evidence of impairment of individual financial assets includes observable data that comes to the
attention of the Group about one or more of the following loss events:
v
v
v
v
significant financial difficulty or probable bankruptcy of the investee;
a breach of contract;
changes in the political or legal environment affecting the investee’s business;
changes in the investee’s condition evidenced by changes in factors such as liquidity, credit ratings,
profitability, cash flows, debt/equity ratio and level of dividend payments; and
v whether there has been a significant or prolonged decline in the fair value below cost.
Determination of fair value
The fair values of quoted financial assets are based on current bid prices. If the market for a financial asset is
not active, the Group establishes fair value by using valuation techniques. These include the use of recent
arm’s-length transactions, reference to other instruments that are substantially the same, discounted cash
flow analysis, and option pricing models, making maximum use of market inputs. Where fair value of unquoted
instruments cannot be measured reliably, fair value is determined by the transaction price.
Cash and cash equivalents
Cash and cash equivalents include cash at bank and balances on hand, demand deposits with banks and
highly liquid investments with original maturities of 3 months or less which are readily convertible to cash and
which are subject to an insignificant risk of changes in value.
Share capital and treasury shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary
shares are deducted against the share capital account.
Financial liabilities
The Group’s financial liabilities include provisions and other payables.
Financial liabilities are recognised when the Group becomes a party to the contractual agreements of the
instrument. All interest-related charges are recognised as an expense in “finance cost” in the profit or loss.
Financial liabilities are derecognised if the Group’s obligations specified in the contract expire or are
discharged or cancelled.
Other payables
Other payables are initially measured at fair value, and subsequently measured at amortised costs, using the
effective interest method.
Provisions and contingent liabilities
Provisions are recognised when the Company and the Group have a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
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Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Provisions and contingent liabilities (Cont’d)
The Directors review the provisions annually and where in their opinion, the provision is inadequate or
excessive, due adjustment is made.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of
economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence
or non-occurrence of one or more future uncertain events not wholly within the control of the Group are also
disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.
Contingent liabilities are not recognised in the statement of financial position of the Group, except for
contingent liabilities assumed in a business combination that are present obligations and which the fair values
can be reliably measured. Contingent liabilities are recognised in the course of the allocation of the purchase
price to the assets and liabilities acquired in a business combination. They are initially measured at fair
value at the date of acquisition and subsequently measured at the higher of the amount that would be
recognised in a comparable provision as described above and the amount initially recognised less any
accumulated amortisaton, if appropriate.
Income tax
Current income tax
Current income tax assets and liabilities for the current periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the end of the reporting period, in the countries where the
company operates and generates taxable income.
Current income taxes are recognised in the profit or loss except to the extent that the tax related to items
recognised outside profit or loss, either in other comprehensive income or directly in equity. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred income tax is provided using the liability method on temporary differences at the end of the reporting
period between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes.
Deferred tax liabilities are recognised for all temporary differences, except:
v Where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss; and
In respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
v
Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Deferred tax (Cont’d)
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses can be utilities except:
v Where the deferred income tax asset relating to the deductible temporary difference arises from the
v
initial recognition of an asset or liability in the transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
In respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future and taxable profit will be available against which the
temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at the end of the reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
deferred income tax assets to be utilised. Unrecognised deferred tax assets are reassessed at the end of the
reporting period and are recognised to the extent that is has become probable that future taxable profit will
allow the deferred tax asset to be utilized. Unrecognised deferred tax assets are reassessed at the end of
each reporting period and are recognised to the extent that it has become probable that future taxable profit
will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on the tax rates (and tax laws) that have been
enacted or substantively enacted at the end of each reporting period.
Deferred income tax relating to items recognised outside profit or loss is recognised outside profit or loss.
Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity and deferred tax arising from a business combination is adjusted against goodwill
on acquisition.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to
set off current income tax assets against current income tax liabilities and the deferred income taxes relate to
the same taxable entity and the same taxation authority.
Employee benefits
Defined contribution plan
Retirement benefits to employees are provided through defined contribution plans, as provided by the laws of
the countries in which it has operations. The Singapore incorporated companies in the Group contribute
to the Central Provident Fund (“CPF”). Such contribution are charges as an expense as the contributions are
paid or become payable.
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Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Defined contribution plan (Cont’d)
The employees of the group’s subsidiaries which operate in the PRC are required to participate in a central
pension scheme operated by the local municipal government. These subsidiaries are required to contribute a
certain percentage of its payroll costs to the central pension scheme.
These contributions are charged to the profit or loss in the period to which the contributions relate. The
Group’s obligations under these plans are limited to the fixed percentage contributions payable.
Key management personnel
Key management personnel are those persons having the authority and responsibility for planning, directing
and controlling the activities of the entity. Directors and certain general managers are considered key
management personnel.
Related parties
For the purpose of these financial statements, a party is considered to be related to the Group if:
(a)
the party has the ability, directly or indirectly through one or more intermediaries, to control the Group or
exercise significant influence over the Group in making financial and operating policy decisions, or has
joint control over the Group;
the Group and the party are subject to common control;
the party is an associate of the Group or a joint venture in which the Group is a venturer;
the party is a member of key management personnel of the Group or the Group’s parent, or a close
family member of such an individual, or is an entity under the control, joint control or significant influence
of such individuals;
the party is a close family member of a party referred to in (a) or is an entity under the control, joint
control or significant influence of such individuals; or
the party is a post-employment benefit plan which is for the benefit of employees of the Group or of any
entity that is a related party of the Group.
(b)
(c)
(d)
(e)
(f)
Close family members of an individual are those family members who may be expected to influence, or be
influenced by, that individual in their dealings with the entity.
Impairment non-financial assets
The carrying amounts of the Company’s and the Group’s non-financial assets subject to impairment are
reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any
such indication exists, the asset’s recoverable amount is estimated.
If it is not possible to estimate the recoverable amount of the individual asset, then the recoverable amount of
the cashgenerating unit to which the assets belong will be identified.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units). As a result, some assets are tested individually for
impairment and some are tested at cash-generating unit level. Goodwill is allocated to those cash-generating
units that are expected to benefit from synergies of the related business combination and represent the lowest
level within the company at which management controls the related cash flows.
Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Impairment non-financial assets (Cont’d)
Individual assets or cash-generating units that include goodwill and other intangible assets with an indefinite
useful life or those not yet available for use are tested for impairment at least annually. All other individual
assets or cashgenerating units are tested for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the assets or cash-generating units’ carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market
conditions less costs to sell and value-in-use, based on an internal discounted cash flow evaluation.
Impairment losses recognised for cashgenerating units, to which goodwill has been allocated, are credited
initially to the carrying amount of goodwill. Any remaining impairment loss is charged pro rata to the other
assets in the cash-generating unit. With the exception of goodwill, all assets are subsequently reassessed for
indications that an impairment loss previously recognised may no longer exist.
Any impairment loss is charged to the profit or loss unless it reverses a previous revaluation in which case it is
charged to equity.
With the exception of goodwill, an impairment loss is
v
reversed if there has been a change in the estimates used to determine the recoverable amount or when
there is an indication that the impairment loss recognised for the asset no longer exists or decreases.
v An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been determined if no impairment loss had been recognised.
v A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading
revaluation surplus. However, to the extent that an impairment loss on the same revalued asset was
previously recognised as an expense in the profit or loss, a reversal of that impairment loss is recognised
as income in the profit or loss.
An impairment loss in respect of goodwill is not reversed, even if it relates to impairment loss recognised in an
interim period that would have been reduced or avoided had the impairment assessment been made at a
subsequent reporting or end of reporting period.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts
receivable for goods and services provided in the normal course of business, net of discounts and sales
related taxes.
Interest income is recognised on a time-apportioned basis using the effective interest rate method.
Functional currencies
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 of
the group and the Company are presented in Australian Dollars, which is also the functional currency of the
Company.
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Asaplus Resources Limited Annual Report 2013
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Impairment non-financial assets (Cont’d)
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 translation differences
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 end of reporting period are recognised in the
profit or loss.
Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at
the date when the fair values are determined.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the date of the transactions.
Group entities
The results and financial position of all the entities within the Group that have a functional currency different
from the presentation currency are translated into the presentation currency as follows:
(i)
(ii)
(iii) All resulting currency translation differences are recognised in other comprehensive income and
Assets and liabilities are translated at the closing exchange rates at the end of reporting period;
Income and expenses are translated at average exchange rates; and
accumulated in the currency translation 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 end of reporting period.
3. RESTRUCTURING EXERCISE
The Group was formed through a restructuring exercise (the “Restructuring Exercise”) to streamline and rationalise
its corporate and shareholding structure in preparation for the listing of the Group on the Australian Securities
Exchange. Pursuant to the Restructuring Exercise:
(1) Yong Heng Investment Limited (“Yong Heng”) incorporated Yinzhou Consulting Co., Limited (“Yinzhou”) in
China as a wholly-owned subsidiary with a paid up share capital of RMB100,000 on 18 June 2012;
(2) Yinzhou acquired Datian Huixiang Investments Consulting Co., Limited (“DHIC”) at an acquisition cost of
RMB100,000 which was paid in full in accordance with the terms of the agreement dated 26 June 2012. On
completion of this agreement, DHIC became a wholly-owned subsidiary of Yinzhou, a wholly-owned subsidiary
of Yong Heng.
(3) DHIC acquired Datian Silverstone Mining Co., Limited (“DSM”) at an acquisition cost of RMB10,000 which
(4)
was paid in full in accordance with the terms of the agreement dated 6 July 2012. On completion of this
agreement, DSM became an indirect wholly-owned subsidiary of Yong Heng.
The Company acquired South Mongyol Mines Limited (“SMML”), which owns the entire share capital of Yong
Heng, at an acquisition cost of A$10,000,000 which was paid in full in accordance with the terms of the
agreement dated 19 July 2012 as varied by a supplemental agreement dated 10 August 2012. On completion
of this agreement, Yong Heng became an indirect wholly-owned subsidiary of the Company.
Asaplus Resources Limited Annual Report 2013
029
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
3. RESTRUCTURING EXERCISE (Cont’d)
(5) SMML transferred its 100% interest in the share capital of Yong Heng to the Company on 30 July 2012. On
(6)
completion of this transfer, Yong Heng became a wholly-owned subsidiary of the Company.
The Company disposed its entire interest in SMML to Madam Emelinda Bosaito Consigo (an unrelated third
party) for a consideration of US$1,000 which was paid in full on completion of the disposal on 31 July 2012.
On completion of this transfer, SMML cease to become a related company of the Company. The consideration
equals the fair value of the net assets acquired by the Company, there is no gain or loss arising on the
disposal of SMML.
4. SEGMENT INFORMATION
The Group operates predominantly in one business segment and one geographical segment being the mining
industry in Fujian Province in the PRC.
No revenue from this activity has been earned to date as the principle project of the Group is still in the exploration
and evaluation stage.
5. CASH AND CASH EQUIVALENTS
Cash and cash at bank
Short-term fixed deposits
The Company
2013
$
1,603
-
1,603
The Group
2013
$
1,263,784
916,200
2,179,984
Short term deposits have an average maturity of 3 months from the end of the financial period with the weighted
average effective interest rates of 0.74% per annum.
Cash and cash equivalents are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
Hong Kong Dollar
Singapore Dollar
The Company
2013
$
1,368
-
-
235
1,603
The Group
2013
$
2,049
2,177,614
86
235
2,179,984
The Chinese Renminbi is not freely convertible into other foreign currencies. Under the PRC’s Foreign Exchange
Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange Regulations, the
Group is permitted to exchange RMB for foreign currencies through banks that are authorised to conduct foreign
exchange business.
030
Asaplus Resources Limited Annual Report 2013
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
6. AMOUNTS DUE FROM/TO SUBSIDIARIES
The amounts due from/to subsidiaries are non-trade in nature, interest-free, unsecured, repayable on demand and
denominated in Chinese Renminbi.
7. OTHER RECEIVABLES
Other receivables*
Other receivables – related party**
Prepayment – related party
Prepayment – third parties
The Company
2013
$
The Group
2013
$
679,012
22,162
41,642
-
742,819
679,012
22,162
41,642
15,270
758,086
* Other receivables are advances made to a third party as a refundable deposit and advances for expenditures
to procure a specific oilfield project located in Inner Mongolia in the PRC (the “Oilfield Project”). They are non-
trade in nature, interest free and refundable in full in the event the Oilfield Project is not secured on or before
30 September 2013.
** Other receivables from related party are interest-free, unsecured and repayable on demand.
Other receivables are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
Singapore Dollar
The Company
2013
$
The Group
2013
$
701,174
41,642
-
742,816
701,174
41,642
15,270
758,086
Asaplus Resources Limited Annual Report 2013
031
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
8. PLANT AND EQUIPMENT
The Group
Computer
Office
Equipment
$
Furniture
and Fittings
$
Motor
vehicle
$
Total
$
-
396
(1)
395
-
33
-
33
-
7,789
(46)
7,743
-
246
(1)
245
-
91,742
(538)
91,204
-
103,329
(605)
102,724
-
7,266
(43)
7,223
-
7,725
(45)
7,680
$
-
3,402
(20)
3,382
-
180
(1)
179
3,203
362
7,498
83,981
95,044
COST:
As at 24.04.2012
(date of incorporation)
Additions
Exchange realignment
As at 31.03.2013
ACCUMULATED DEPrECIATION:
As at 24.04.2012
(date of incorporation)
Depreciation for the period
Exchange realignment
As at 31.03.2013
NET BOOK VALUE:
As at 31.03.2013
9. EXPLORATION AND EVALUATION ASSETS
Exploration and evaluation assets
The Group
2013
$
672,432
Exploration and evaluation assets comprise the cost of obtained Exploration Licence in relation to the Silverstone
Project and related cost of search for mineral resources, the determination of technical feasibility and the
assessment of the commercial viability of an identified resource.
032
Asaplus Resources Limited Annual Report 2013
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
10. GOODWILL
As part of the Restructuring Exercised detailed in Note 3 above, the Company acquired the entire issued capital of
Yong Heng for a total consideration of A$10,000,000 satisfied in full by the issue of 45,000,000 shares in the
Company's issued and paid-up share capital. On completion of the Restructuring Exercise, Yong Heng became a
wholly owned subsidiary of the Company.
At acquisition date
$
Consideration(1)
Net assets at fair value in Yong Heng at acquisition date
Goodwill
(1) The consideration for acquisition of Yong Heng and its subsidiaries is calculated as follows:
The cost of investment in SMML on 19 July 2012
Nominal HK$10,000 consideration the Company paid for the transfer of the
entire share capital of Yong Heng
Proceeds of sale of SMML to unrelated third party for US$1,000
Net cash flow from the acquisition of Yong Heng and its subsidiaries is calculated as follows:
Consideration for the investment in Yong Heng and its subsidiaries
Consideration satisfied by issue of shares
Cash and cash at bank of Yong Heng and its subsidiaries
10,000,291
(11,630)
9,988,661
$
10,000,000
1,229
(938)
10,000,291
$
10,000,291
(10,000,000)
11,048
11,339
Asaplus Resources Limited Annual Report 2013
033
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
11. INVESTMENT IN SUBSIDIARIES
The consolidated financial statements include the financial statements of Asaplus Resouces Limited and its
subsidiaries listed in the following table.
Name of entity
Held by the Company
Yong Heng Investment Limited
Held by Yong Heng
Yinzhou Consulting Co., Ltd
Held by Yinzhou
Datian Huixiang Investments
Consulting Co., Ltd
China
China
Held by DHIC
Datian Silverstone Mining Co., Ltd
China
Country of
incorporation/
principal place
of business
Cost of
investment
2013
Percentage
of equity
held
$
Principal activities
2013
Hong Kong
10,000,291
100%
Investment holding
100%
Consulting service
100%
100%
Investment
consulting service
the exploration,
mining and
marketing of iron ore
Note: All subsidiaries of the Company are audited by MGI Singapore PAC for consolidation account purposes.
No individual auditor’s report for those subsidiaries is issued.
10,000,291
12. OTHER PAyABLES
Other payables–related parties *
Accruals
The Company
2013
$
The Group
2013
$
31,048
77,330
33,792
77,941
108,378
111,733
* Other payables due to related parties are non-trade in nature, unsecured, interest-free and repayable on deman.
Other payables are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
Singapore Dollar
034
Asaplus Resources Limited Annual Report 2013
The Company
2013
$
The Group
2013
$
30,738
-
77,640
33,481
612
77,640
108,378
111,733
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
13. SHARE CAPITAL
Date
Number
Issued
$
Issue
Price
$
Total share
price
$
May 2012
Seed capital
18,500,000
0.0054
100,000
Jul 2012
Issued to Vendors as consideration
for the acquisition of the subsidiaries
45,000,0000
0.222
10,000,000
Jul 2012
Issued to Parties not connected to
Vendors or their associates
14,500,000
0.17
2,465,000
Sep 2012
Issued under Asaplus prospectus
Capital raising fee*
10,000,000
0.20
88,000,000
2,000,000
(507,900)
14,057,100
* The captial raising fee is expenses paid to legal, accounting and other professional adviser for issuing shares.
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to
participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up
on shares held.
At the shareholders’ meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder or its proxy, attorney or representative has one vote on a show of hands.
14. OTHER INCOME
Interest income
15. LOSS BEFORE INCOME TAX
Loss before tax has been arrived at after charging (crediting)
Interest income
Provision for director fee (note 16)
Employee benefit expense (note 16)
Initial listing fee and pro-rata annual listing fee
Depreciation of plant and equipment (note 8)
The Group
2013
$
40,360
The Group
2013
$
(40,360)
77,330
138,317
70,444
7,725
Asaplus Resources Limited Annual Report 2013
035
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
16. EMPLOyEE BENEFITS EXPENSE
Employee benefit expense (including key management personnel)
Salaries and bonus
Other benefits
Directors’ fee (Provision)
17. INCOME TAX EXPENSE/ (BENEFIT)
Current tax for the financial period
The Group
2013
$
59,013
1,974
77,330
138,317
The Group
2013
$
-
Provision for enterprise income tax of the subsidiaries operating in the People’s Republic of China (the “PRC”) is
made in accordance with the Income Tax Law of the PRC concerning Foreign Investment Enterprises and Foreign
Enterprises and various local income tax laws.
Taxation has been provided at the appropriate tax rates prevailing in Singapore, Hong Kong and the PRC in which
the Group operates on the estimated assessable profits for the financial period. These rates generally range from
16.50% to 30% for the reporting period.
The reconciliation of income tax expense applicable to the loss before income tax at the relevant statutory income
tax rates to the income tax expense for the reporting period is as follows:
Loss before income tax
Tax at applicable tax rates
Tax effect of non-taxable revenue
Tax effect of non-deductible expenses
The Group
2013
$
(435,688)
(90,063)
(10,010)
100,073
-
The Group has not commenced business and has not earned its first dollar of business receipt since the date of
incorporation.
No deferred tax has been provided, as the Group did not have any significant temporary differences which gave rise
to a deferred tax asset or liability at the reporting date.
036
Asaplus Resources Limited Annual Report 2013
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
18. LOSS PER SHARE
The Group
The loss per share is calculated based on the consolidated losses attributable to owners of the parent divided by
the weighted average number of shares on issue of shares during the financial period.
The following table reflects the profit or loss and share data used in the computation of basic and diluted loss per
share from continuing operations for the financial period ended 31 March 2013:
Weighted average number of ordinary shares for the purpose of calculating
basic loss per share
Effect of dilutive potential ordinary shares:
Share options
Weighted average number of ordinary shares for the purpose of calculating
diluted loss per share
Loss figures are calculated as follows:
Loss for the purpose of calculating basic and diluted loss per share
19. DIVIDENDS
During the current financial period no dividend was proposed declared or paid.
20. FOREIGN EXCHANGE RATES
The Group
2013
$
68,958,333
-
68,958,333
The Group
2013
$
(435,688)
The principal closing foreign exchange rates used (expressed on the basis of one unit of foreign currency to AUD
equivalent) for the translation of foreign currency balances at the statement of financial position date are as follows:
Chinese Renminbi
Hong Kong Dollar
Singapore Dollar
The Group
2013
$
0.1527
0.1236
0.7733
Asaplus Resources Limited Annual Report 2013
037
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
21. AUDITORS’ REMUNERATION
Audit Services – MGI Singapore PAC
22. RELATED PARTy TRANSACTIONS
The Group
2013
$
7,000
The group has entered into a related party transaction with an entity in which a director of the Company's
subsidiary has an interest in. The following amount is the transaction with the related party based upon commercial
arm's length terms and conditions:
Business process outsourcing fee paid to a company in which a director of the Company's
subsidiary has interest, details which are set out in the prospectus dated 21 August 2012
The above transaction between related parties are on normal commercial terms.
The Group
2013
$
24,508
Save as disclosed herein, the Group has no other related party transaction with its Directors, key management, or
with entities which its Directors and/or key management have significant financial interest.
038
Asaplus Resources Limited Annual Report 2013
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
23. INTERESTS OF KEy MANAGEMENT PERSONNEL (KMP)
KMP Remuneration
The total of remuneration paid to KMP of the Company and the Group during the year are as follows:
Short-term employee benefits:
v Salaries and bonus
v
Directors’ fee (Provision)
The Group
2013
$
23,040
77,330
100,370
KMP Shareholdings
The number of ordinary shares in Asaplus Resources Limited held by each KMP of the Group during the financial
period is as follows:
The Group
Ir Che Mohamed Hussein1
LAU Eng Foo (Andy)2
Qiu Changsheng
Hong Xusheng2
Loy Wei Choo, Joseph
Liqin Lin
Balance at date Disposed during Acquired during
of incorporation
Balance at
the period end of period
the period
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,520,000
-
-
-
-
-
3,520,000
Note 1 - An adult and financially independent son of Ir Che Mohamed Hussein, namely Mr Mohamed Lylia Anwar,
owns 880,000 Shares for his own benefit. Ir Che Mohamed Hussein does not have any interest,
pecuniary or otherwise, in these shares held by Mr Mohamed lylia Anwar. Mr Mohamed Lylia Anwar have
entered into an escrow arrangement to restrict dealings in these 880,000 Shares owned by him for a
period of two years from Quotation Date.
Note 2 - LAU Eng Foo (Andy) has a deemed interest in the 39,000,000 Shares held by Asaplus International
Limited by virtue of his 37.5% shareholding in Asaplus International Limited. The other shareholders of
Asaplus International Limited are Mr HONG Xusheng (25%) and Madam TAN Wil Lian³ (37.5%). LAU Eng
Foo (Andy) is also a director of Asaplus International Limited, the other being Mr HONG Xusheng.
Asaplus Resources Limited Annual Report 2013
039
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
23. INTERESTS OF KEy MANAGEMENT PERSONNEL (KMP) (Cont’d)
KMP’s Contractual Benefits
The Company has agreed to grant and issue 3,000,000 new shares to the following key personnel if a mining permit
to commence commercial iron ore production at the Silverstone Project is granted to Datian Silverstone Mining Co.,
Ltd before 29 July 2015.
LAU Eng Foo (Andy)
Qiu Changsheng
Hong Xusheng
Loy Wei Choo, Joseph
There have been no loans to KMP.
24. CONTINGENCIES
No. of Performance
Shares
1,200,000
1,000,000
450,000
350,000
3,000,000
There are not contingent liabilities as at the date of these financial statements.
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company and the Group are exposed to financial risks arising from its operations and use of financial
instruments.The key financial risks included credit risk, liquidity risk, interest rate risk, foreign currency risk and
market price risk. The Company’s and the Group’s overall risk management programme focuses on the
unpredictability of financial markets and seeks to minimise adverse effects from the unpredictability of financial
markets on the Company’s and the Group’s financial performance.
Risk management is carried out by the Finance Division under policies approved by the Board of Directors. The
Finance Division identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating
units. The Board provides written principles for overall risk management, as well as written policies covering
specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative and non-derivative
financial instruments and investing excess liquidity.
040
Asaplus Resources Limited Annual Report 2013
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)
Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the Group
to incur a financial loss. The Group’s exposure to credit risk arises primarily from cash and cash equivalents and
other receivables. For other receivables, the Company and the Group adopt the policy of dealing only with high
credit quality counterparties.
The Company’s and the Group’s objective is to seek continual growth while minimising losses incurred due to
increased credit risk exposure.
Cash, cash equivalents and term deposits are held with reputable financial institutions.
Credit exposure to an individual counterparty is restricted by credit limits that are approved by the management
based on ongoing credit evaluation. The counterparty’s payment profile and credit exposure are continuously
monitored at the entity level by the respective management.
Exposure to credit risk
The maximum exposure to credit risk for each class of the Company’s and the Group’s financial instruments are as
following:
Cash and cash equivalents
Term deposits with average maturity over 3 months
Other receivables
Amount due from subsidiaries
The Company
2013
$
1,603
-
742,816
3,211,516
3,955,935
The Group
2013
$
1,263,784
916,200
758,086
-
2,938,070
Liquidity risk
Liquidity risk is the risk that the Company or the Group will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may
result from an inability to sell a financial asset quickly at close to its fair value.
The Company’s and the Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of
financial assets and liabilities. The Company and the Group manage liquidity risk by monitoring forecast cash flows.
As at the financial period end the Group has cash and cash equivalent of $2,179,984.
Asaplus Resources Limited Annual Report 2013
041
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)
Liquidity risk (Cont’d)
The table below analyses the maturity profile of the Company’s and the Group’s financial liabilities based on
contractual undiscounted cash flows:
The Group
Other payables-related parties
Accrued expenses
The Company
Other payables-related parties
Accrued expenses
Amount due to subsidiary
Less than
1 year
2013
$
33,507
77,941
111,442
Less than
1 year
2013
$
30,757
77,330
26,000
134,087
Between
2-5 years
2013
$
-
-
-
Between
2-5 years
2013
$
-
-
-
-
Over
5 years
2013
$
-
-
-
Over
5 years
2013
$
-
-
-
-
Total
2013
$
33,507
77,941
111,442
Total
2013
$
30,757
77,330
26,000
134,087
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of the Group’s and the Company’s financial
instruments will fluctuate because of changes in market interest rates.
The Company’s and the Group’s exposure to interest rate risk arises primarily from fixed deposits with average
maturity within 3 months.
The Group manages its interest rate risk by continuously monitoring available interest rates while maintaining an
overriding position of security whereby the majority of term deposits are held with reputable financial institutions.
042
Asaplus Resources Limited Annual Report 2013
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)
Interest rate risk – Cont’d
The Group
Weighted
average
effective
interest rate
2013
$
Fixed interest
rate with average
maturing within
3 months
2013
$
Non-interest
bearing
2013
$
Total
2013
$
FINANCIAL ASSETS:
Cash and cash eqivalents
Other receivables
Total Financial Assets
FINANCIAL LIABILITIES:
Other payables
Total Financial Liabilities
0.74%
-
-
-
-
916,200
-
916,200
1,263,784
758,086
2,179,984
758,086
2,021,870
2,938,070
-
-
111,733
111,733
111,733
111,733
Sensitivity analysis
The following table shows the movements in profit due to higher/lower interest rate income from variable from fixed
deposits with average maturity within 3 months held with reputable financial institutions in China.
The Group
If rMB interest rate higher
1% (100 basis points)
2013
$
If rMB interest rate
lower 1% (100 basis points)
2013
$
Interest income
9,216
(9,216)
Asaplus Resources Limited Annual Report 2013
043
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)
Foreign currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange
rates. Currency risk arises when transactions are denominated in foreign currencies.
The Group is not exposed to any significant foreign currency risk because the Group has not commenced trade
activity since the date of incorporation. The main operation for The Group is exploration activity relating to the
Silverstone Project in China which is not exposed any significant foreign currency risk.
Market price risk
Given that the Group does not have any available-for-sale financial assets, the Group is not exposed any significant
market prick risk.
26. CAPITAL RISK MANAGEMENT
The Group’s objectives when managing capital are:
v
v
v
v
to safeguard the Group’s ability to continue as a going concern;
to support the Group’s stability and growth;
to provide capital for the purpose of strengthening the Group’s risk management capability; and
to provide an adequate return to shareholders.
The Group actively and regularly reviews and manages its capital structure to ensure optimal capital structure and
shareholders’ returns, taking into consideration the future capital requirements of the Group and capital efficiency.
The Group does not have any borrowings as at the financial period end.
The Group currently does not adopt any formal dividend policy.
Management reviews its capital management approach on an on-going basis and believes that this approach, given
the relative size of the Group, is reasonable.
27. COMMITMENTS
Annual expenditure for Exploration Licence
The current term of the exploration licence relating to Silverstone project is for the period from 22 May 2012 to 22
May 2013. The Project shall be examined, approved, registered, and licensed by competent authority under the
People’s Government of Fujian Province directly, which is the Fujian Land and Resources Department.
The exploration licenses are required to pay exploration right usage fee. The standard for the exploration usage fees
are as follows:
(1) RMB100 per square kilometre per year for the first three years; and
(2) RMB100 per square kilometre shall be added per year starting from the fourth year. However, the highest
amount shall not exceed RMB500 per square kilometre per year.
044
Asaplus Resources Limited Annual Report 2013
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
27. COMMITMENTS (Cont’d)
Annual expenditure for Exploration Licence (Cont’d)
The exploration licenses shall invest a minimum expenditure for exploration from the date of issuance of the
exploration licence according to the following schedule:
(1) RMB2, 000 per square kilometre per year for the first years of exploration;
(2) RMB5, 000 per square kilometre for the second year of exploration; and
(3) RMB10, 000 per square kilometre each year thereafter, starting from the third year of exploration.
In order to maintain the Exploration Licence of the Silverstone Project, Datian Silverstone Mining Co., Limited is
committed to fulfil the minimum annual expenditures in accordance with the requirements of Fujian Land and
Resources Department above, for the next financial year as set out below:
Exploration right usage fee
Minimum expenditure for exploration
28. FAIR VALUE ESTIMATION
2013
$
430
8,602
9,032
All financial assets and liabilities are carried at amounts not materially different from their fair values as at the
reporting date.
29. COMPARATIVE FIGURES
This is the first reporting period for Asaplus Resources Limited as a consolidated entity. Consequently, no
comparative information has been disclosed.
30. SUBSEQUENT EVENT - O/S (renewed Exploration Licence)
At the date of report, Datian Silverstone Mining Co., Ltd, subsidiary of the Company, is applying for an extension of
the Exploration Licence in relation to the Silverstone Project.
Asaplus Resources Limited Annual Report 2013
045
For personal use only
Analysis of Shareholdings
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
NUMBER OF SECURITy HOLDERS AND SECURITIES ON ISSUE
As of 30 May 2013, the Company has issued 88,000,000 CHESS Depositary Interests (CDIs) over 88,000,000 fully paid
ordinary shares in the Company's share capital. Of these, 24,500,000 CDIs are quoted on ASX and held by 434 CHI-
holders. The balance 63,500,000 CDIs which are unquoted and are subject to escrow arrangements expiring
18 November 2014, are held by 27 CDI-holders.
As incentive for key management personnel, the Company had agreed to grant and issue 3,000,000 new Shares to be
credited as being fully paid (the “Performance Shares”) to the following key personnel upon and only upon attainment of
the a mining permit to commence commercial iron ore production at the Silverstone Project is granted, to the following
key management personnel:
Name
Position
Number of Performance Shares
Lau Eng Foo (Andy)
Qiu Changsheng
Hong Xusheng
Loy Wei Choo (Joseph)
Managing Director & Group CEO
General Manager
Controller & Deputy General Manager
Geological Manager
Total
1,200,000
1,000,000
450,000
350,000
3,000,000
As of 30 May 2013, no Performance Share has been issued.
There is no other class of shares or securities issued by the Company.
Voting Rights
Under the Company's constitution, a CDI-holder may either:
(a) give CDN voting instructions in relation to the number of CDIs he or she holds; or
(b)
requests CDN to appoint him or her or another person he or she nominates as CDN's proxy to attend the general
meeting as CDN's proxy in relation to the number of CDIs he or she holds.
At a general meeting, on a show of hands, a CDI holder present in person or by proxy has one vote and, upon a poll,
each CDI shall have one vote.
046
Asaplus Resources Limited Annual Report 2013
For personal use only
Analysis of Shareholdings
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
Distribution of CDI-holders
The distribution of CDI-holders as of 30 May 2013 are as follows:
Holding
Number of Holders
%
Number of Shares
1 – 1,000 CDIs
1,001 – 5,000 CDIs
5,001 – 10,000 CDIs
10,001 – 100,000 CDIs
100,001 CDIs and above
1
1
261
150
(1)
47
460
0.22
0.22
56.74
32.61
10.21
100.00
(1) Includes 27 CDI-holders holding 63,500,000 unquoted and escrowed CDIs
Substantial Shareholders
Substantial Shareholders of the Company as of 30 May 2013 are as follows:
1
4,000
2,620,000
4,782,000
80,593,999
%
0.00
0.00
2.98
5.44
91.58
88,000,000
100.00
Name
Asaplus International Limited
Lau Eng Foo (Andy)(2)
Hong Xusheng(2)
Tan Wil Lian(2)
Ding Poi Bor
(2) Deemed interested in the CDIs held by Asaplus International Limited
Number of CDIs
Directly Held
Deemed Interested
39,000,000
4,400,000
39,000,000
39,000,000
39,000,000
Asaplus Resources Limited Annual Report 2013
047
For personal use only
Analysis of Shareholdings
Asaplus Resources Limited And Its Subsidiaries
For The Financial Period From 24 April 2012 (Date Of Incorporation) To 31 March 2013
TWENTy LARGEST SHAREHOLDERS
rank
Name
1
2
3
4
5
6
7
8
9
10
11
11
11
11
11
12
13
13
13
14
15
15
16
17
17
17
17
18
18
19
19
19
20
Asaplus International Limited
Ding Poi Bor
Lu Bo
Liqin Lin
Boon Thuan Kee
Jiansheng Qiu
Qun Liu
Irene Chua Paik See
Seong Kung Mah
Boon Thuan Kee
Lu Liu
Sinny United Sdn Bhd
Zamri Bin Abd Hamid
Kok Kin Ting
Kok Fi John Ho
Too Seong Ling
Mohamed Iylia Anwar & Bin Che Mohamed Hussein
Jiacheng Li
Dandong Li
Chushui Fang
Liru Huang
Jiyu Zheng
HSBS Custody Nominees (Australia) Limited
Hoe Thean Sun
Gap Seng Lo
Julie Lim Wan Wah
Soon Chin Chye
Mingguo Hong
Lizhen Hong
Yunhong Li
Xiangzhou Lin
Jinling Huang
Wei Choo Loy
30 May 13
39,000,000
4,400,000
4,165,000
3,520,000
3,344,000
1,936,000
1,760,000
1,700,000
1,370,000
1,347,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
970,000
880,000
880,000
880,000
704,000
528,000
528,000
520,000
500,000
500,000
500,000
500,000
440,000
440,000
352,000
352,000
352,000
330,000
44.32%
5.00%
4.73%
4.00%
3.80%
2.20%
2.00%
1.93%
1.56%
1.53%
1.14%
1.14%
1.14%
1.14%
1.14%
1.10%
1.00%
1.00%
1.00%
0.80%
0.60%
0.60%
0.59%
0.57%
0.57%
0.57%
0.57%
0.50%
0.50%
0.40%
0.40%
0.40%
0.38%
Total
Balance of register
77,698,000
10,302,000
88.29%
11.71%
Security Holding Queries
All queries relating to holdings of CDIs issued by the Company should be addressed to the Company's share registry at
the following address:
Link Market Services Limited
Ground Floor, 178 St Georges Terrace
Perth WA 6000
048
Asaplus Resources Limited Annual Report 2013
For personal use only
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