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For personal use only Contents
2
4
5
7
9
Chairman’s Statement
Board of Directors
Corporate Governance
Directors’ Report
Statement by Directors
10
Independent Auditor’s Report
12
Statement of Financial Position
13
Consolidated Statement of Comprehensive Income
14
Consolidated Statement of Changes in Equity
15
Consolidatd Statement of Cash Flows
16
Notes to the Financial Statements
50
Shareholding Analysis
For personal use only
ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2015
Asaplus Resources Limited Annual Report 2015 1
For personal use only Chairman’s Statement
Dear Shareholders
I am pleased to present to you the third annual report of the Asaplus Resources Limited (the “Company”) and its
subsidiaries (collectively, the “Group”). This annual report covers the Group's activities and financial report for the financial
year commencing 1 April 2014 and ended 31 March 2015.
Activities During the Financial Year Under Review
During the financial year under review, demand for iron ore both globally and domestically in China where the Group's
Silverstone Project is located continued to soften. This resulted in prices for iron ore deteriorating significantly from the
levels prevailing at the time the Group acquired the Silverstone Project. For this reason, the Board has taken the painful
decision to keep in abeyance its application for a mining permit for the Silverstone Project. The Board will continuously
monitor economic developments to consider whether, and if so, when to reactivate the aforesaid application for the mining
permit.
During the financial year under review, to defray administration and other expenses, the Group carried out trading of
minerals and non-agricultural commodities on a limited scale. The Group's revenue reported in the financial statements
represents revenue and income arising from these limited-scale trading activities.
The Group also explored other investment opportunities, particularly in the natural resources sector, to utilize the Group's
funds. One of these was the proposal to acquire a majority interest in the Qiaoxia Mine located in the vicinity of the
Silverstone Project. However, the proposal to acquire the Qiaoxia Mine was subsequently aborted due to the outcome
of legal due diligence being unsatisfactory. Notwithstanding the above outcome, the Group will continue to explore other
investment opportunities, particularly in the natural resources sector, to deploy the Group's funds.
Mining Tenement of the Group
The Group currently has one tenement namely the Silverstone Project, a 4.83 km2 tenement located on the west side of
the Dai Yun mountains in Datian County, Fujian Province in the People's Republic of China. The current resource estimate
of the Silverstone Project is 3,480,700 tonnes at an average grade of 41.83% in the Inferred Category.
During the financial year under review, the Group did not acquire nor dispose of any mining or prospecting tenement.
Information in this Annual Report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr Peter Peebles who is a member of the Australasian Institute of Mining and Metallurgy and a
member of the Australian Institute of Geoscientists. Mr Peebles is employed by Darlington Geological Services Pty Ltd. Mr
Peebles has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Peebles' report is set out in the
Company's announcement on 13 May 2013.
Share Buy-back
In the financial year under review, the Company did not carry out any buy-back of its shares. As of the date of this Annual
Report, the Company has not sought shareholders' approval for the buy-back of its shares.
2
Asaplus Resources Limited Annual Report 2015
For personal use only Chairman’s Statement
Moving Forward
The Group is in the process of assessing a potential acquisition of the mining permit of an existing tenement. This
assessment is already in an advance stage, and I am cautiously optimistic that the Group would be successful in acquiring
this mining permit. The Company will make announcements in relation to that possible acquisition should the assessment
reach significant milestones. If this possible acquisition is completed, the Group will then either scale down or discontinue
its limited-scale trading of minerals and non-agricultural commodities.
The Company's third 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 look seeing you there.
Yours faithfully
Ir Che Mohamed Hussein Bin Mohamed Shariff
Chairman
Asaplus Resources Limited Annual Report 2015 3
For personal use only Board of Directors
Ir Che Mohamed Hussein Bin Mohamed Shariff
Dominic LIM Kian Gam
LAU Eng Foo (Andy)
IR CHE MOHAMED HUSSEIN BIN
MOHAMED SHARIFF
Independent Director, Non-Executive Chairman
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.
DOMINIC LIM KIAN GAM
Independent Non-executive Director
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.
LAU ENG FOO (ANDY)
Managing Director
Andy the founder of and driving force behind of 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 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.
4
Asaplus Resources Limited Annual Report 2015
For personal use only Corporate Governance
The ASX Corporate Governance Council Principles and Recommendations (the “Principles and Recommendations”)
Second Edition currently applies to the Company for the financial year under review as set out in this Annual Report. The
Company will apply the Third Edition of the Principles and Recommendations for the financial year which commenced 1
April 2015.
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:
(a) Protection and enhancement of Shareholder value;
(b) Formulation, review and approval of the objectives and strategic direction of the Company;
(c) Approving all significant business transactions, including acquisitions, divestments and capital expenditure;
(d) Monitoring the financial performance of the Company by reviewing and approving budgets and results;
(e) 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;
(f)
(g) Reviewing the performance and remuneration of executive directors and key staff;
(h) Establishment and maintenance of appropriate ethical standards; and
(i) 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 directors, namely 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
Held during the financial year
Attended
Che Mohamed Hussein Bin Mohamed Shariff
Dominic Lim Kian Gam
Lau Eng Foo (Andy)
6
6
6
6
6
6
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.
Asaplus Resources Limited Annual Report 2015 5
For personal use only
Corporate Governance
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 depart from the recommendations.
Recommendation
Reference
ASX Guideline
Disclosure of departure
Explanation for departure
2.4
3.2
A nomination committee
has not been established
A diversity policy has not
been established
4.1, 4.2, 4.3
An audit committee has not
been established
8.1
A remuneration committee
has not been established
The Board considers that the Company is not currently of
a 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 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
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 accounting 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.
The Board considers that the Company is not currently of a
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.
6
Asaplus Resources Limited Annual Report 2015
For personal use only
Directors’ Report
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
The Directors submit to the members the audited consolidated financial statements of the Group and the statement of
financial position of the Group and the Company for the financial year ended 31 March 2015.
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
LAU Eng Foo (Andy)
Dominic LIM Kian Gam
(Independent Non-executive Director, Chairman)
(Executive Director)
(Independent Non-executive Director)
2
3
ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE SHARES OR DEBENTURES
During and at the end of the financial year, the Company was not 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 body corporate, other than as disclosed in this report.
DIRECTORS’ INTERESTS IN SHARES
None of the Directors who held office at the end of the financial year 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 01.04.14 As at 31.03.2015
As at 01.04.14
As at 31.03.2015
LAU Eng Foo (Andy)
-
-
39,000,000
39,000,000
4
SHARE OPTIONS
During the financial year, 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
year, there were no unissued shares of the Company under option.
Asaplus Resources Limited Annual Report 2015 7
For personal use only
Directors’ Report
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
5
DIRECTORS’ CONTRACTUAL BENEFITS
Except 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 with a company in which the Director has a substantial financial
interest.
6
AUDITOR
MGI SINGAPORE PAC have expressed their willingness to accept re-appointment as auditor.
On behalf of the Board of Directors
LAU Eng Foo (Andy)
Executive Director
Ir Che Mohamed Hussein Bin Mohamed Shariff
Independent Non-executive Chairman
Dated: 12 June 2015
8
Asaplus Resources Limited Annual Report 2015
For personal use only
Statement By Directors
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
We, LAU Eng Foo (Andy) and IrChe Mohamed Hussein Bin Mohamed Shariff, being two of the directors of Asaplus
Resources Limited, do hereby state that, in the opinion of the directors,
a)
the accompanying financial statements set out in the following sections of the financial statements:
l Statements of Financial Position
l Consolidated Statements of Comprehensive Income
l Consolidated Statement of Changes in Equity
l Consolidated Statement of Cash Flows
l Notes, comprising a summary of significant accounting policies and other explanatory notes are drawn up so as to
give a true and fair view of the state of affairs of the Group and of the Company as at 31 March 2015 and of the results,
of the business changes in equity and cash flows of the Group for the financial year then ended, on that date, and
(b) at the date of this statement there are reasonable grounds to believe that the Group 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
Dated: 12 June 2015
Asaplus Resources Limited Annual Report 2015 9
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 subsidi-
aries (“the Group”), which comprise the statements of financial position of the Group and the Company as at 31 March
2015, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows of the Group for the year then ended, 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 the
provisions of the Singapore Companies Act, Chapter 50 (the "Act") and Singapore Financial Reporting Standards, and for
devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets
are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they
are recorded as necessary to permit the preparation of true and fair profit and loss accounts and balance sheets and to
maintain accountability of assets.
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 Singapore 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 mate-
rial 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 control. 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.
10
Asaplus Resources Limited Annual Report 2015
For personal use only Independent Auditor’s Report
To The Members Of Asaplus Resources Limited
QUALIFIED OPINION
Without qualifying our opinion, we draw attention to Note 6 to the financial statements. The Company did not make any
adjustment for impairment of exploration and evaluation assets, the basis for not doing so and the likely impact in the event
the Company's application for the Mining Permit is rejected by the relevant authorities.
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 2015, and the results,
changes in equity and cash flows of the Group for the financial year then ended in accordance with Singapore Financial
Reporting Standards.
REPORT ON OTHER LEgAL AND REgULATOR y REQUIREmENTS
In our opinion, except for the basis of the qualified opinion, the accounting and other records required by the Act to be kept
by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept
in accordance with the provisions of the Act.
MGI SINGAPORE PAC
Chartered Accountants and
Public Accountant of Singapore
Singapore, 12 June 2015
Asaplus Resources Limited Annual Report 2015 11
For personal use only Statement Of Financial Position
Asaplus Resources Limited And Its Subsidiaries
As At 31 March 2015
ASSETS
Current Assets
Cash and bank balances
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
Equity
Share capital
Accumulated loss
Foreign currency translation reserve
Non-controlling interest
Total Equity
LiAbiLiTiES
Current Liabilities
Other payables
Provision for tax
Amount due to subsidiary
31.3.2015
$
The Company
31.3.2014
$
31.3.2015
$
The Group
31.3.2014
$
Note
3
4
5
7
6
8
9
10
11
4
810
3,397,432
260,799
1,208
3,433,136
304,623
984,105
-
1,518,844
1,105,287
-
1,539,439
3,659,041
3,738,967
2,502,949
2,644,726
-
-
-
10,001,719
10,001,719
-
-
-
10,001,719
10,001,719
199,253
1,334,466
-
-
1,553,719
228,156
951,229
9,988,661
-
11,168,046
13,660,760
13,740,686
4,036,668
13,812,772
14,057,100
(594,540)
-
-
14,057,100
(476,981)
-
-
14,057,100
(11,362,239)
1,043,130
(8,394)
14,057,100
(912,083)
393,717
-
13,462,560
13,580,119
13,729,597
13,538,734
136,967
-
61,233
117,754
-
42,813
307,071
-
-
264,366
9,672
-
Total Liabilities/current liabilities
198,200
160,567
307,071
274,038
ToTAL EquiTy And LiAbiLiTiES
13,660,760
13,740,686
4,036,668
13,812,772
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
12
Asaplus Resources Limited Annual Report 2015
For personal use only
Consolidatd Statement Of Comprehensive Income
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
Revenue
Cost of sales
Gross profit
Other income
Selling and distribution expenses
Administrative expenses
Other expenses
Loss before tax
Income tax expense
Loss for the financial year
Impairment of Goodwill
Exchange differences on translation of foreign
controlled entities
Total Comprehensive loss for the financial year
Attributable to:
Non-controlling interests
Owners of the Company
Loss Per Share (Cents)
Basic Loss Per Share
Diluted Loss Per Share
Note
12
13
14
16
2015
$
2014
$
2,504,846
(2,396,715)
3,134,817
(2,986,420)
108,131
148,397
4,513
-
(407,501)
(209,795)
(504,652)
(10,684)
(515,336)
22,179
(65,399)
(362,699)
(199,710)
(457,232)
(19,163)
(476,395)
(9,988,661)
-
-
(10,467,997)
432,655
(43,740)
(17,841)
-
(10,450,156)
(43,740)
17
17
(0.12)
(0.12)
(0.54)
(0.54)
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Asaplus Resources Limited Annual Report 2015 13
For personal use only
Consolidated Statement Of Changes In Equity
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2015
Note
Accumulated
losses
attributable to
Share Owners of the
Company
capital
Foreign
currency
Non-
translation Controlling
Interest
reserve
At 1.04.2014
14,057,100
(912,083)
393,717
$
$
$
$
-
Total
equity
$
13,538,734
Loss for the year
Other comprehensive
income for the year
Non-Controlling interest
-
-
-
(10,432,315)
-
(17,841)
(10,450,156)
-
-
649,413
-
649,413
-
(8,394)
(8,394)
Balance at 31.03.2015
10
14,057,100
(11,344,398)
1,043,130
(17,841)
3,729,597
Total
equity
$
13,582,474
(476,395)
432,655
13,538,734
2014
Note
Share
capital
Accumulated
loss
Foreign
currency
Non-
translation Controlling
Interest
reserve
$
$
$
At 1.04.2013
14,057,100
(435,688)
(38,938)
Loss for the year
Other comprehensive
income for the year
-
-
(476,395)
-
-
432,655
Balance at 31.03.2014
10
14,057,100
(912,083)
393,717
$
-
-
-
-
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
14
Asaplus Resources Limited Annual Report 2015
For personal use only
Consolidatd Statement Of Cash Flows
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
Cash flow from operating activities
Loss before taxation
Adjustments for:
Depreciation of plant and equipment
Impairment of Goodwill
Unrealised foreign exchange gain
Operating cash flow before working capital changes
Decrease/(Increase) in other receivables
Increase in other payables
Cash from operations
Tax paid
Net cash generated from/(used in) operating activities
Cash flows from investing activities
Exploration expenditure
Purchase of plant and equipment
Net cash (used in) investing activities
Note
2015
$
2014
$
(10,457,313)
(457,232)
7
8
7
67,275
9,988,661
609,806
208,429
20,594
42,704
271,728
(9,672)
28,568
-
417,915
(10,749)
(781,353)
152,633
(639,469)
(9,491)
262,055
(648,960)
(383,237)
-
(278,797)
(146,940)
(383,237)
(425,737)
Net (decrease) in cash and bank balances
(121,182)
(1,074,697)
Cash and bank balances at the beginning of the year
1,105,287
2,179,984
Cash and bank balances at the end of the year
3
984,105
1,105,287
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Asaplus Resources Limited Annual Report 2015 15
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
1. CORPORATE INFORmATION
The financial statements of the Company and of the Group for the year ended 31 March 2015 were authorised for
issue in accordance with a resolution of the Directors on the date of the Statement by Directors.
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
2. SIgNIFICANT ACCOUNTINg POLICIES
2.1 basis of preparation
The financial statements have been prepared in accordance with the provisions of the Singapore Companies
Act, Chapter 50 (the “act”) and Singapore Financial Reporting Standards (“FRS”) including Interpretations
of Financial Reporting Standards (“INT FRS”) and are 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.
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 2015 was $ 199,253 (2014:$ 228,156). 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.
16
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES ( Cont’d)
2.1 basis of preparation (Cont’d)
Critical assumptions used and accounting estimates in applying accounting policies
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 2015 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 People’s Republic of
China (“PRC”).The Group has assessed that the capitalized expenditure will be recoverable through the
project’s successful development. Such capitalised expenditure at
is $1,334,466
(2014:$ $951,229).
reporting date
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 FRSs
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 1 April 2013. The adoption of these standards and
interpretations did not have any effect on the financial performance or position of the Company and the Group
except as discussed below:
Asaplus Resources Limited Annual Report 2015 17
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES ( Cont’d)
2.3 FRS not yet effective
Reference
Description
Effective date
(annual periods
beginning on or after)
Revised FRS 27
Revised FRS 28
FRS 110
FRS 111
FRS 112
Amendments to FRS 32
Separate Financial Statements
Investments in Associates and Joint Ventures
Consolidated Financial Statement
Joint Arrangements
Disclosure of Interests in Other Entities
Offsetting Financial Assets and Financial Liabilities
1 January 2014
1 January 2014
1 January 2014
1 January 2014
1 January 2014
1 January 2014
Except for FRS 111, Revised FRS 28 and FRS 112, the directors expect that the adoption of the other standards
above will have no material impact on the financial statements in the period of initial application. The nature
of the impending changes in accounting policy on adoption of FRS 111, Revised FRS 28 and FRS 112 are
described below.
FRS 111 Joint Arrangements and Revised FRS 28 Investments in Associates and Joint Ventures
FRS 111 Joint Arrangements and Revised FRS 28 Investments in Associates and Joint Ventures are effective
for financial periods beginning on or after 1 January 2014.
FRS 111 classifies joint arrangements either as joint operations or joint ventures. Joint operations is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the assets and
obligations for the liabilities of the arrangement whereas joint venture is a joint arrangement whereby the parties
that have join t control of the arrangement have rights to the net assets of the arrangement.
FRS 111 requires the determination of joint arrangement’s classification to be based on the parties’ rights and
obligations under the arrangement, with the existence of a Separate legal vehicle no longer being the key factor.
FRS 111 disallows proportionate consolidation and requires joint ventures to be accounted for using the equity
method. The revised FRS 28 was amended to describe the application of equity method to investments in joint
ventures in addition to associates.
The Company currently applies proportionate consolidation for its joint ventures. Upon adoption of FRS 111, the
Company expects the change to equity accounting for these joint ventures will result in decrease in total assets
and total liabilities.
FRS 112 Disclosure of Interests in Other Entities
FRS 112 Disclosure of interests in Other Entities is effective for financial periods beginning on or after 1 January
2014.
FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interests in other
entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles.
FRS 112 requires an entity to disclose information that helps users of its financial statements. As this is a
disclosure standard, it will have no impact to the financial position and financial performance of the Company
when applied in 2014.
18
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
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 Note9.
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 2015 19
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
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-in-use, 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.
20
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
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 favorable 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 assets
Exploration and evaluation assets 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 assets 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):
(a)
the period for which the Group has the right to explore in the specific area has expired during the 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 income statement whenever the carrying amount of an asset exceeds
its recoverable amount.
Asaplus Resources Limited Annual Report 2015 21
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
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 utilizing 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 vehicles
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 period in which it is incurred.
For acquisitions and disposals during the financial period, depreciation is provided from the month of acquisition
tithe 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.
22
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
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.
Asaplus Resources Limited Annual Report 2015 23
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES ( Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Available-for-sale financial assets (Cont’d)
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.
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:
significant financial difficulty or probable bankruptcy of the investee;
l
l a breach of contract;
l changes in the political or legal environment affecting the investee’s business;
l 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
l 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.
24
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES ( Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Financial liabilities
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Group becomes a party to the contractual provisions
of the financial instrument. The Group determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value
through profit or loss, directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
i)
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading. ˚ Financial
liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This
category includes derivative financial instruments entered into by the Group that are not designated as
hedging instruments in hedge relationships. Separated embedded derivatives are also classified as held
for trading unless they are designated as effective hedging instruments.
Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair value.
Any gains or losses arising from changes in fair value of the financial liabilities are recognised in profit or loss.
The Group has not designated any financial liabilities upon initial recognition at fair value through profit or loss.
ii) Financial liabilities at amortised cost
After initial recognition, financial liabilities that are not carried at fair value through profit or loss are
subsequently measured at amortised cost using the effective interest method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.
De-recognition
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-
recognition of the original liability and the recognition of a new liability, and the difference in the respective
carrying amounts is recognised in profit or loss.
Asaplus Resources Limited Annual Report 2015 25
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES ( Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
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.
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.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets
not act fair value through profit or loss, directly attributable transaction costs.
26
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES ( Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
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:
l 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.
l
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:
l Where the deferred income tax asset relating to the deductible temporary difference arises from the 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.
l
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.
Asaplus Resources Limited Annual Report 2015 27
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES ( Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Deferred tax (Cont’d)
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 charged as an expense as the contributions are paid or
become payable.
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)
28
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES ( Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Related parties (Cont’d)
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 of 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 cash-generating 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.
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 cash-generating 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 cash-generating 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.
Asaplus Resources Limited Annual Report 2015 29
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES (Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
Impairment of non-financial assets (Cont’d)
With the exception of goodwill, an impairment loss is
l
l
l
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.
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.
A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading re
valuation 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.
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.
30
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
2. SIgNIFICANT ACCOUNTINg POLICIES ( Cont’d)
2.4 Summary of significant accounting policies (Cont’d)
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 accumulated
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
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. CASH AND BANK BALANCES
Cash and cash at bank
810
1,208
984,105 1,105,287
The Company
2014
$
2015
$
The Group
2014
$
2015
$
Short-term deposits have an average maturity of 3 months from the end of the financial period with the weighted
average effective interest rate of 0.74%.
Cash and bank balances are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
Hong Kong Dollar
Singapore Dollar
The Company
2014
$
2015
$
810
-
-
-
810
1,081
-
-
127
1,208
The Group
2014
$
2015
$
1,406
976,099
6,406
194
213,308
889,207
2,645
127
984,105 1,105,287
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.
Asaplus Resources Limited Annual Report 2015 31
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
4. AmOUNTS DUE FROm/TO SUBSIDIARIES
The amounts due from/to subsidiaries are non-trade, interest-free, unsecured, repayable on demand and denomi
nated in Chinese Renminbi.
5. OTHER RECEIVABLES
Other receivables-third parties
Prepayment – related parties
Prepayment – third parties
The Company
2014
$
2015
$
The Group
2014
$
2015
$
248,885
-
11,914
248,885
43,824
11,914
375,911
-
1,142,934
248,885
50,840
1,239,714
260,799
304,623
1,518,845
1,539,439
Other receivables are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
Singapore Dollar
6.
EXPLORATION AND EVALUATION ASSETS
The Company
2014
$
2015
$
The Group
2014
$
2015
$
248,885
11,914
-
260,799
-
43,824
248,885
1,269,960
-
260,799
1,234,816
43,824
260,799
304,623
1,518,845
1,539,439
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 in the Silverstone Project.
The Group
Balance at beginning of the period
l
l
Expenditure incurred in the year
Foreign exchange differences
Total exploration and evaluation assets
2015
$
2014
$
951,229
177,918
-
672,432
177,918
100,879
1,334,466
951,229
32
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
6. EXPLORATION AND EVALUATION ASSETS (Cont'd)
As disclosed in Note 2, the carrying amount of the exploration and evaluation assets is reviewed annually and adjusted
for impairment in accordance with IAS 36 “Impairment of Assets”. In particular, the Company considered whether one
of the following events or changes in facts and circumstances (each an “Adverse Event”) has occurred which indicate
that the carrying amount may not be recoverable:
(a)
the period for which the Group has the right to explore in the Silverstone Project has expired during the period
or will expire in the near future, and is not expected to be recovered;
substantive expenditure on further exploration for and evaluation of mineral resources in the Sliverstone Project
is neither budgeted nor planned;
exploration for and evaluation of mineral resources in the Silverstone Project have not led to the discovery
of commercially viable quantities of mineral resources and the Group has decided to discontinue such activities
in the Silverstone Project; or
sufficient data exists to indicate that, although a development in the Silverstone Project 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.
(b)
(c)
(d)
As of balance sheet date, the current planned exploration works for iron ore in the Silverstone Project has been
completed, and the detailed exploration report for iron ore resources at the Silverstone Project (the “Detailed
Exploration Report”) has been submitted to the Fujian Provincial Land and Resources Assessment Field Investigation
Centre (the “Field Investigation Centre”) which is an integral and important part of the application for the Mining Permit.
The Field Investigation Centre completed detailed on-site assessment of the contents reported in the Detailed
Exploration Report, and had provided the Company with feedback and comments thereon. Based on their feedback
and comments, the Company carried out some minor additional works and made amendments to the Detailed
Exploration Report. The Company submitted the amended Detailed Exploration Report (incorporating the feedback
and comments received) for final approval.
While the Company has not received final approval from the Field Investigation Centre, or the Mining Permit, the
Company has not made any adjustment for impairment of exploration and mining asset because the application for
the Mining Permit is still pending with the relevant authorities and that an Adverse Event has not occurred. If however,
the Company's application for the Mining Permit is rejected by the relevant authorities, then the exploration and
evaluation assets may have to be fully impaired.
Asaplus Resources Limited Annual Report 2015 33
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
Computer
$
Office
Equipment
$
Furniture
and Fittings
$
Motor
vehicle
$
Total
$
3,382
1,112
508
5,002
1,045
6,047
179
1,530
35
1,744
1,684
595
4,023
2,032
3,258
395
2,146
69
2,610
545
3,155
33
596
8
637
879
253
1,769
1,386
1,973
7,743
-
1,152
8,895
1,856
10,751
245
1,678
44
1,967
1,792
657
4,416
6,334
6,928
91,204
143,682
14,300
102,724
146,940
16,029
249,186
265,693
51,996
55,442
301,182
321,135
7,223
24,764
1,202
33,189
62,919
15,566
7,680
28,568
1,289
37,537
67,274
17,071
111,674
121,882
137,511
199,253
215,997
228,156
7. PLANT AND EQUIPmENT
The Group
COST:
As at 31.03.2013
Additions
Currency realignment
As at 31.03.2014
Additions
Currency realignment
As at 31.03.2015
ACCUMULATED DEPRECIATION:
As at 31.03.2013
Depreciation for the year
Currency realignment
As at 31.03.2014
Depreciation for the year
Currency realignment
As at 31.03.2015
CARRYING VALUE:
As at 31.03.2015
As at 31.03.2014
34
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
8. gOODWILL
Goodwill
Impairment during the financial year
2015
$
9,988,661
(9,988,661)
-
2014
$
9,988,661
-
9,988,661
The goodwill comprises the value of Exploration Licence to the Silverstone Project held by Datian Silverstone Mining
Co., Ltd, which is a wholly-owned subsidiary within the Yong Heng Group.
Goodwill is allocated to cash-generating units which are based on the Group’s reporting segments:
Mining
2015
$
2014
$
-
9,988,661
As disclosed in Note 2 above, goodwill is tested for impairment at least annually, irrespective of whether there is any
indication that they are impaired. In considering whether to make any provision for impairment of goodwill, the
Company had considered the detailed factors set out in Note 6 above.
The application for the Mining Permit is still pending with the relevant authorities and that an Adverse Event has not
occurred. However, because there is no certainty as to whether and if so, when the Company’s application for the
Mining Permit will be approved, the Company has decided to fully impair goodwill during this current financial year.
9.
INVESTmENT IN SUBSIDIARIES
The Company
2015
$
2014
$
Unquoted equity investments, at cost
10,001,719
10,001,7191
Asaplus Resources Limited Annual Report 2015 35
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
9.
INVESTmENT IN SUBSIDIARIES (Cont’d)
The consolidated financial statements include the financial statements of Asaplus Resouces Limited and its subsidiaries
listed in the following table.
Name of subsidiary
Country of
Principal
incorporation
activities and business
Effective
equity held
by the Group
2014
%
2015
%
Cost of investment
by the Company
2014
$
2015
$
Held by the Company
Yong Heng Investment
Limited (“Yong Heng”)
Asaplus Ventures
Limited (“Ventures”)
Held by Ventures
Xiamen RongyaoXuhui
Investment Consulting
Co., Ltd
Held by Yong Heng
Yinzhou Consulting Co.,
Ltd (“Yinzhou”)
Held by Yinzhou
Datian Huixiang
Investments Consulting
Co., Ltd (“DHIC”)
Held through DHIC
Datian Silverstone
Mining Co., Ltd (“DSM”)
Investment
holding
Consulting
services
Consulting
services
Consulting
services
Consulting
services
Exploration,
mining and
marketing of
iron ore
Held by DHIC
Yinzhou Mining Co., Ltd * Exploration,
mining and
marketing of
iron ore
Hong Kong
100
100 10,000,291
10,000,291
Hong Kong 100
100
1,428
1,428
China
100
100
China
100
100
China
100
100
China
100
100
China
51
-
-
-
-
-
-
-
-
-
-
-
*On 21 August 2014, the Group’s subsidiary Company, Datian Huixiang Investments Consuting Co., Ltd acquired a 51% equity in Yinzhou Mining Co.,
Ltd. Upon acquisition, Yinzhou Mining Co., Ltd became a subsidiary of the Group, but was deregistered subsequent to the financial year end.
The subsidiaries of the Company are audited by MGI Singapore PAC.
10,001,719
10,001,719
36
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
10. SHARE CAPITAL
2015
Number of shares
The Group
2014
$ Number of shares
$
Issued and fully paid:
88,000,000
14,057,100
88,000,000 14,057,100
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.
11. OTHER PAyABLES
Amount due to directors*
Amount due to a related party
Other payables-third parties
Accruals
The Company
2014
$
2015
$
23,330
29,250
15,555
68,832
38,885
-
-
78,869
The Group
2014
$
2015
$
23,330
29,250
185,659
68,832
91,505
-
93,992
78,869
136,967
117,754
307,071
264,366
*Amounts due to directors and related parties are non-trade in nature, unsecured, interest-free and repayable on demand.
Other payables are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
The Company
2014
$
2015
$
121,402
15,555
136,967
117,754
-
117,754
The Group
2014
$
2015
$
121,402
185,669
117,754
146,612
307,071
264,366
Asaplus Resources Limited Annual Report 2015 37
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
12. REVENUE
Sale of goods
Consulting services
The Group
2015
$
2014
$
2,504,652
36,194
3,060,461
74,356
2,540,846
3,134,817
The revenue represent the invoiced value of goods sold and consulting services provided, net of discounts and sales
taxes.
13. OTHER INCOmE
Gain on foreign exchange
Interest incom
Sundry income
14. LOSS BEFORE INCOmE TAX
Loss before tax has been arrived at after charging:
Employee benefit expense (note 15)
Depreciation of plant and equipment
15. EmPLOyEE BENEFITS EXPENSE
Employee benefit expense (including key management personnel)
•
•
•
Salaries and bonus
Other benefits
Directors’ fee
The Group
2015
$
529
3,583
401
4,513
2014
$
21
15,810
6,348
22,179
The Group
2015
$
2014
$
205,262
67,274
205,530
28,568
The Group
2015
$
2014
$
179,606
25,656
-
205,262
140,145
15,645
49,740
205,530
38
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
16. INCOmE TAX EXPENSE
Current tax for the financial period
The Group
2015
$
2014
$
10,684
19,163
Provision for enterprise income tax of the subsidiaries operating in 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 year. These rates generally range from 16.50%
to 25% for the reporting year.
The reconciliation of income tax expense applicable to the loss before income tax at applicable income tax rates to
the income tax expense for the reporting year is as follows:
Loss before income tax
Tax at applicable tax rates
Tax effect of non-taxable revenue
Tax effect of non-deductible expenses
Deferred tax asset not recognised
Tax for the financial period
The Group
2015
$
2014
$
(504,652)
(457,232)
(89,207)
-
15,519
94,042
(94,558)
(1,564)
19,632
95,653
10,684
19,163
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.
Asaplus Resources Limited Annual Report 2015 39
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
17. 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 year.
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 year ended 31 March:
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:
The Group
2015
$
2014
$
88,000,000
88,000,000
-
-
88,000,000
88,000,000
The Group
2015
$
2014
$
Loss for the purpose of calculating basic and diluted loss per share
(10,450,156)
(476,395)
18. DIVIDEND
During the current financial year, no dividend was proposed declared or paid.
19. FOREIgN EXCHANgE RATES
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:
The Group
2015
$
0.2120
0.1677
0.9461
2014
$
0.1754
0.1393
0.8582
Chinese Renminbi
Hong Kong Dollar
Singapore Dollar
40
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
20. AUDITORS’ REmUNERATION
Audit Services
21. RELATED PARTy TRANSACTIONS
The Group
2015
$
2014
$
24,000
17,164
The Group has entered into a related party transaction with an entity in which a director of the Company's subsidi
ary 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
The above transaction between related parties is on normal commercial terms.
The Group
2015
$
2014
$
43,824
70,223
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.
Asaplus Resources Limited Annual Report 2015 41
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
22. SEgmENT REPORTINg
The Group identifies its operating segments based on the regular internal financial information reported tithe executive
Directors for their daecisions about resources allocation to the Group’s business components and for their review
of the performance of those components. The business components in the internal financial information reported to
the executive Directors are determined following the Group’s major products and services. The Group has identified
the following reportable segments:
l Mining - exploration and mining of iron ore.
l
Trading and consulting service - trading of copper strips and providing consulting services.
(a)
Segment results, assets and liabilities
From 01.04.2014 to 31.03.2015
Revenue
From external customers
From other segments
Segment revenues
Segment operating (loss)/profit before
tax
Segment assets
Segment liabilities
From 01.04.2013 to 31.03.2014
Revenue
From external customers
From other segments
Segment revenues
Segment operating (loss)/profit before
tax
Segment assets
Segment liabilities
Trading and
consulting
service
$
2,540,846
-
2,540,846
Mining
$
-
-
-
Others
$
-
-
-
Total
$
2,540,846
-
2,540,846
(271,502)
(75,518)
(121,632)
(468,652)
1,565,821
3,777,962
1,981,883
7,325,666
106,345
2,473,627
1,690,244
4,270,216
Trading and
consulting
service
$
3,134,817
-
3,134,817
Mining
$
-
-
-
Others
$
-
-
-
Total
$
3,134,817
-
3,134,817
(280,690)
82,909
(259,451)
(457,232)
11,466,778
2,768,127
17,232,276
31,467,181
1,643,016
68,035
2,948,785
4,659,836
l Others relate to the corporate activities of the Company as well as the other operating segments that are not reportable.
42
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
22. SEgmENT REPORTINg (Cont’d)
(b) Reconciliations of reportable segment profit or loss, assets and liabilities to its
consolidated financial statement:
(Loss) before taxation
Reportable segment loss before taxation
Unallocated income
Assets
Segment assets
Elimination of inter-segment assets
Consolidated assets
Liabilities
Segment liabilities
Elimination of inter-segment liabilities
Consolidated liabilities
2015
$
(468,652)
-
(468,652)
2015
$
2014
$
(457,232
-
(457,232)
2014
$
22,335,677
(15,010,011)
31,467,181
(17,654,409)
7,325,666
13,812,772
2015
$
2014
$
9,291,56
(5,021,350)
4,270,216
4,659,836
(4,385,798)
274,038
Asaplus Resources Limited Annual Report 2015 43
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
23. INTERESTS OF KEy mANAgEmENT PERSONNEL (KmP)
KMP Remuneration
The total remuneration paid to KMP of the Company and the Group during
the year is as follows:
Short-term employee benefits:
Salaries and bonus
l
The Group
2015
$
2014
$
40,841
38,234
KMP Shareholdings
The number of ordinary shares in Asaplus Resources Limited held by each KMP of the Group
during the financial year is as follows:
The Group
IrChe Mohamed Hussein¹
LAU Eng Foo (Andy)²
Dominic Lim Kian Gam
Hong Xusheng²
Balance as at
01.04.2014
Disposed
during the
year
Acquired
during the
year
Balance
as at
31.03.2015
-
39,000,000
-
39,000,000
-
-
-
-
-
-
-
-
-
39,000,000
-
39,000,000
Note 1: An adult and financially independent son of IrChe Mohamed Hussein, namely Mr Mohamed Lylia Anwar,
owns 880,000 Shares for his own benefit. IrChe Mohamed Hussein does not have any interest, pecuniary or
otherwise, in these shares held by Mr Mohamed lylia Anwar. Mr Mohamed Lylia Anwar has 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 Lian (37.5%). LAU Eng Foo (Andy)
is also a director of Asaplus International Limited, the other being Mr HONG Xusheng.
44
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
23. INTERESTS OF KEy mANAgEmENT PERSONNEL (KmP) (Cont’d)
KMP’s Contractual Benefits
The Company has allocated 3,000,000 new shares to be issued to the following key personnel, if and only if a mining
permit to commence commercial iron ore production at the Silverstone Project is granted to Datian Silverstone Mining
Co., Ltd on or before 29 July 2015.
No. of
Performance Shares
1,200,000
450,000
350,000
2,000,000
1,000,000
3,000,000
LAU Eng Foo (Andy)
Hong Xushen
Loy Wei Choo, Joseph
To other employees at directors’ discretion
Other KMP Transactions
For details of other transactions with KMP, refer to note 21.
There have been no loans to KMP.
24. CONTINgENCIES
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 Fi
nance 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.
Asaplus Resources Limited Annual Report 2015 45
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
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 areas following:
Cash and cash equivalents
Other receivables
Amount due from subsidiaries
The Company
The Group
2015
$
810
260,799
3,397,432
2014
$
1,208
304,623
3,433,136
2015
$
2014
$
984,105
1,518,845
-
1,105,287
1,539,439
-
3,659,041
3,738,967
2,502,950
2,644,726
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 year end the Group has cash and bank balances of $984,105 (2014: $1,105,287).
46
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
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 2015
Other payables
Accrued expenses
The Group - 2014
Other payables
Accrued expenses
Less than 1 year
$
Between 2-5 years Over 5 years
$
$
Total
$
185,659
68,832
254,491
-
-
-
-
-
-
Less than 1 year
$
Between 2-5 years Over 5 years
$
$
93,992
78,869
172,861
-
-
-
-
-
-
185,659
68,832
254,491
Total
$
93,992
78,869
172,861
The Company 2015
Less than 1 year
$
Between 2-5 years Over 5 years
$
$
Total
$
Other payables
Accrued expenses
Amount due to subsidiary
38,885
78,869
3,397,432
3,515,186
-
-
-
-
-
-
-
-
38,885
78,869
3,397,432
3,515,186
The Company 2014
Less than 1 year
$
Between 2-5 years Over 5 years
$
$
Other payables
Accrued expenses
Amount due to subsidiary
15,555
68,832
61,233
145,620
-
-
-
-
-
-
-
-
Total
$
15,555
68,832
61,233
145,620
Asaplus Resources Limited Annual Report 2015 47
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
25. FINANCIAL RISK mANAgEmENT OBJECTIVES AND POLICIES (Cont’d)
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.
The Group - 2015
Weighted average
effective
interest rate
2015
$
Fixed interest rate
with average maturity
within 3 months
2015
$
Non-interest
bearing
2015
$
Total
2015
$
Financial Assets:
Cash and bank balances
Other receivables
Total Financial Assets
Financial Liabilities:
Other payables
Total Financial Liabilities
The Group - 2014
Financial Assets:
Cash and bank balances
Other receivables
Total Financial Assets
Financial Liabilities:
Other payables
Provision for tax
Total Financial Liabilities
0.74%
-
-
-
-
-
-
-
-
-
984,105
1,518,844
984,105
1,518,844
2,502,949
2,502,949
307,071
307,071
307,071
307,071
Weighted average
effective
interest rate
2014
$
Fixed interest rate
with average maturity
within 3 months
2014
$
Non-interest
bearing
2014
$
Total
2014
$
0.74%
-
-
-
-
-
-
-
-
-
-
-
1,105,287
1,539,439
1,105,287
1,539,439
2,644,726
2,644,726
264,366
9,672
264,366
9,672
274,038
274,038
48
Asaplus Resources Limited Annual Report 2015
For personal use only
Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
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 to any significant
market price risk.
26. CAPITAL RISK mANAgEmENT
The Group’s objectives when managing capital are:
l
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.
l
l
l
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 year 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. FAIR VALUE ESTImATION
All financial assets and liabilities are carried at amounts not materially different from their fair values as at the reporting
date.
28. SUBSEQUENT EVENT
The subsidiary, YinZhou Mining Co. Ltd was deregistered after the financial year end (Note 9).
Asaplus Resources Limited Annual Report 2015 49
For personal use only
Shareholding Analysis
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
NUmBER OF SECURITy HOLDERS AND SECURITIES ON ISSUE
As of 25 June 2015, 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 held by 411 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)
Hong Xusheng
Loy Wei Choo (Joseph)
Managing Director & Group CEO
Controller & Deputy General Manager
Geological Manager
To be allotted to employees as determined by the Directors
TOTAL
1,200,000
450,000
350,000
2,000,000
1,000,000
3,000,000
As of 26 June 2015, no Performance Share has been issued. If the Performance Shares are not issued on or before 29 July
2015, no Performance Share may be 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.
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
222
138
49
411
0.24
0.24
54.01
33.58
11.92
100.00
1
4,000
2,220,000
4,333,000
81,442,999
88,000,000
%
0.00
0.00
2.52
4.92
92.55
100.00
50
Asaplus Resources Limited Annual Report 2015
For personal use only
Shareholding Analysis
Asaplus Resources Limited And Its Subsidiaries
For The Financial Year Ended 31 March 2015
Substantial Shareholders
Substantial Shareholders of the Company as of 30 May 2013 are as follows:
Name
Asaplus International Limited
Lau Eng Foo (Andy)(1)
Hong Xusheng(1)
Tan Wil Lian(1)
Boon Thua Kee
Ding Poi Bor
(1) Deemed interested in the CDIs held by Asaplus International Limited
Twenty Largest Shareholders
Name of CDI-holder
1
2
3
4
5
6
7
8
9
10
11
15
18
19
20
Asaplus International Limited
Boon Thuan Kee
Ding Poi Bor
Liqin Lin
Lu Bo
Sinny United Sdn Bhd
Jiansheng Qiu
Qun Liu
Irene Chua Paik See
Seong Kung Mah
Zambri Bin Abd Hamid
Liu Lu
Kok Kin Ting
Kok Fi John Ho
Jiacheng Li
Mohamed Iylia Anwar Bin Che Mohamed Hussein
Dandong Li
Fidus Custodians Limited
Too Seong Ling
Lim Khey Jian
Balance of Register
Security Holding Queries
Number of CDIs
Directly Held
Deemed Interested
39,000,000
-
-
-
4,691,000
4,400,000
-
39,000,000
39,000,000
39,000,000
-
-
No. of CDIs
39,000,000
4,691,000
4,400,000
3,520,000
2,589,143
2,000,000
1,936,000
1,760,000
1,700,000
1,370,000
1,000,000
1,000,000
1,000,000
1,000,000
880,000
880,000
880,000
785,000
730,000
704,142
71,825,285
16,174,715
88,000,000
%
44.32
5.33
5.00
4.00
2.94
2.27
2.20
2.00
1.93
1.56
1.14
1.14
1.14
1.14
1.00
1.00
1.00
0.89
0.82
0.80
81.62
18.3
100.00
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
Level 4 Central Park
152 St Georges Terrace
Perth WA 6000
Asaplus Resources Limited Annual Report 2015 51
For personal use only
ASAPLUS RESOURCES LIMITED
ARBN 158 717 492 ASX Code AJY
21 Bukit Batok Crescent #15-74
WCEGA Tower
Singapore 658065
www.asaplusresources.com
52
Asaplus Resources Limited Annual Report 2015
For personal use only For personal use only AsAplus ResouRces limited
21 Bukit Batok Crescent #15-74
WCEGA Tower
Singapore 658065
www.asaplusresources.com
For personal use only