A N N U A L
R E P O RT
2016
For personal use only Contents
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Chairman’s Statement
Board of Directors
Corporate Governance
Directors’ Report
Statement by Directors
Independent Auditor’s Report
Statement of Financial Position
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidatd Statement of Cash Flows
Notes to the Financial Statements
Shareholding Analysis
For personal use only ASAPLUS RESOURCES LIMITED
ANNUAL REPORT 2016
Asaplus Resources Limited Annual Report 2016
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For personal use only Chairman’s Statement
"
FY2016 has been,
to saY the least, an
"
eventFul Year.
Dear Shareholders
I am pleased to present to you the fourth 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 2015 and ended 31 March 2016 (“FY2016”).
Activities During the Financial Year Under Review
FY2016 has been, to say the least, an eventful year for the Group.
Datian Hongji Mining Co., Limited (“DHM”), a subsidiary which is 80% indirectly owned the Company, acquired the mining
permit to extract iron and other ore at the Beikeng Mine (the “Beikeng Permit”). The Beikeng Mine is a 0.771 km2 recently
disused mine which produced iron and other mineral ores. It is located in Datian County, Fujian Province in the People’s
Republic of China. As of the date of this statement, there is no report on the Beikeng Mine which has been prepared under
the JORC Code.
After its acquisition, DHM managed to secure an extension of the Beikeng Permit and it is now valid until 4 February 2023.
I am pleased to inform you that re-development works at the Beikeng Mine had progressed well. To-date, re-development
works at the Beikeng Mine which DHM has completed includes:
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draining, widening and structural reinforcement to the existing work and access tunnels;
installation of the water-pumps, electrical and ventilation systems at the work and access tunnels;
completed refurbishment works to covert existing structures which the company had acquired under lease for use as
workers’ quarters and as explosives magazines; and
constructed access road to connect the production area to public municipal roads.
Asaplus Resources Limited Annual Report 2016
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Chairman’s Statement
Its said that a picture paints a thousand words. Therefore, I have attached in this statement photographs taken of the
development works which were being carried out at the Beikeng Mine.
Concurrent to carrying out re-development works at the mine site, DHM had also been preparing submission documents to
apply for a renewal of the Production Safety Permits. DHM will be able to commence commercial production at the Beikeng
Mine when the renewal of the Production Safety Permit is obtained. My fellow directors and management are cautiously
optimistic that, barring unforeseen circumstances, DHM can commence commercial production at the Beikeng Mine by
the first quarter of 2017.
Other Tenement of the Group
In addition to the Beikeng Mine, the Group also has one other tenement, namely the Silverstone Project, a 4.83 km2
tenement also located 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.
Save for the Beikeng Mine, during FY2016, 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 ‘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 FY2016, 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 and does not intend to do so at the forthcoming
annual general meeting.
Moving Forward
Moving forward, the Group, through DHM, will focus on bringing the Beikeng Mine to full commercial production. I
anticipate that the Company will need to carry out a fund-raising exercise to raise funds for DHM’s additional working capital
requirements. After commercial production commences and its sales channel is established, DHM will assess the feasibility
of constructing an on-site beneficiation plant.
The Company's fourth 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 2016
3
For personal use only Board of Directors
Ir Che Mohamed Hussein Bin Mohamed Shariff
Dominic LIM Kian Gam
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. He is currently the chief executive officer of the
state-owned property development company. 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.
LAU Eng Foo (Andy)
As Managing Director, Andy provides the entrepreneurial drive and strategic
direction for the Company.direction for the Company.
Asaplus Resources Limited Annual Report 2016
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Corporate Governance
The ASX Corporate Governance Council Principles and Recommendations Third Edition (the “Principles and
Recommendations”) currently applies to the Company for the financial year under review as set out in this Annual Report.
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)
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7
7
7
7
7
Number of Meetings
Asaplus Resources Limited Annual Report 2016
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Corporate Governance
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 set out in:
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the Asaplus Corporate Governance Statement 2016 (the “AJY CG Statement 2016”) which includes the Company’s
“if not, why not” report; and
Key to disclosures – Corporate Governance Principles and Recommendations in the form set out in Appendix 4G of
the ASX Listing Rules (the “AJY Appendix 4G 2016”),
the Company has adopted the 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, the AJY CG Statement 2016 and the AJY Appendix 4G 2016 are available for downloads
at the Company’s public documents repositary at the following URL:
http://mybiztrack.com/owncloud/index.php/s/i7ZFbwZhpyOwEMK
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 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Directors’ Report
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 2016.
1
OPINION OF THE DIRECTORS
In the opinion of the Directors,
i)
The financial statements are drawn up so as to give a true and fair view of the financial position of the Company
as at 31 March 2016 and the financial performance, changes in equity and cash flows of the Company and the
Group for the financial year ended on that date;
At the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they fall due.
ii)
2
DIRECTORS OF THE COMPANY
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)
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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
According to the register of directors’ shareholdings kept by the Company under section 164 of the Companies Act,
Cap. 50, the following directors who held office at the end of the financial year were interested in the shares of the
Company as follows:
Holdings registered in the
name of Director or nominee
Holdings in which Director is
deemed to have an interest
At 01.04.15 At 31.03.2016
At 01.04.15
At 31.03.2016
LAU Eng Foo (Andy)
-
-
39,000,000
39,000,000
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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 2016
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Directors’ Report
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
6
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.
7
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: 15 June 2016
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Statement By Directors
In the opinion of the directors:
(a)
the accompanying financial statements set out in the following sections of the financial statements:
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Consolidated Statement of Financial Position
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidated Cash Flows statement
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 Company and of the Group as at 31 March 2016
and of the results, of the business changes in equity and cash flows of the Company 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 Company will be able to pay its debts
as and when they fall due.
The Directors authorised these financial statements for issued on the date of this report.
On behalf of the Directors
LAU Eng Foo (Andy)
Executive Director
Ir Che Mohamed Hussein Bin Mohamed Shariff
Independent Non-executive Chairman
Dated: 15 June 2016
Asaplus Resources Limited Annual Report 2016
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Independent Auditor’s Report
To The Members Of Asaplus Resources Limited
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Asaplus Resources Limited (“the Company”) and its subsidiaries
(“the Group”), which comprise the statements of financial position of the Group and the Company as at 31 March 2016,
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 statements 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 material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls
relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal 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.
Asaplus Resources Limited Annual Report 2016
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Independent Auditor’s Report
To The Members Of Asaplus Resources Limited
OPINION
In our opinion, the consolidated financial statements of the Group and the statement of financial position of the Company
give a true and fair view of the state of affairs of the Group and of the Company as at 31 March 2016, 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 REGULATORY 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 have been properly kept in accordance with the provisions of the Act.
MGI SINGAPORE PAC
Chartered Accountants and
Public Accountant of Singapore
Singapore, 15 June 2016
Asaplus Resources Limited Annual Report 2016
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For personal use only Statement Of Financial Position
Asaplus Resources Limited And Its Subsidiaries As At 31 March 2016
ASSETS
Current Assets
Amount due from subsidiaries
Other receivables
Cash and bank balances
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
The Company
31.3.2015
$
31.3.2016
$
31.3.2016
$
The Group
31.3.2015
$
Note
8
9
7
11
10
12
13
14
3,228,917
260,799
44
3,397,432
260,799
810
-
1,875,364
216,254
-
1,518,844
984,105
3,489,760
3,659,041
2,091,618
2,502,949
-
-
-
10,001,719
10,001,719
-
-
-
10,001,719
10,001,719
105,112
816,160
-
-
921,272
199,253
1,334,466
-
-
1,533,719
13,491,479
13,660,760
3,012,890
4,036,668
14,057,100
(741,218)
-
-
14,057,100
(594,540)
-
-
14,057,100
(12,811,230)
981,140
(246,234)
14,057,100
(11,362,239)
1,043,130
(8,394)
Total Equity
13.315,882
13.462,560
1,980,776
3,729,597
LiAbiLiTiES
Current Liabilities
Other payables
Provision for tax
Amount due to subsidiary
15
8
45,240
-
130,357
136,967
-
61,233
1,032,114
-
-
307,071
-
-
Total Liabilities/current liabilities
175,597
198,200
1,032,114
307,071
ToTAL EquiTy ANd LiAbiLiTiES
13,491,479
13,660,760
3,012,890
4,036,668
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
Asaplus Resources Limited Annual Report 2016
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Consolidatd Statement Of Comprehensive Income
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Revenue
Cost of sales
Gross profit
Other income
Selling and distribution expenses
Administrative expenses
Other expenses
Impairment of evaluation asset
Impairment of Goodwill
Loss before tax
Income tax expense
Loss for the financial year
Note
16
2016
$
-
-
-
17
551,103
-
(402,226)
(308,680)
(1,281,397)
2015
$
2,540,846
(2,396,715)
144,131
4,513
-
(407,501)
(209,795)
-
-
(9,988,661)
18
20
(1,441,200)
(10,457,313)
(7,791)
(10,684)
(1,448,991)
(10,467,997)
Exchange differences on translation of foreign
controlled entities
-
649,413
Total Comprehensive loss for the financial year
(1,448,991)
(9,818,584)
Attributable to:
Non-controlling interests
Owners of the Company
Loss Per Share (Cents)
Basic Loss Per Share
Diluted Loss Per Share
-
(17,841)
(1,448,991)
(10,450,156)
21
21
(0.016)
(0.016)
(0.12)
(0.11)
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Asaplus Resources Limited Annual Report 2016
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Consolidated Statement Of Changes In Equity
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
2016
Accumulated
Losses
losses
attributable to
attributable to
owners of the Non-Controlling
interest
Company
Foreign
currency
translation
reserve
Non-
Controlling
interest
Share
capital
Total
equity
$
$
$
$
$
$
At 1.04.2015
14,057,100
(11,362,239)
17,841 1,043,130
(8,394)
3,747,438
(1,448,991)
(17,841)
(61,990)
-
(1,528,822)
Loss for the year
Other comprehensive
income for the year
Non-Controlling
interest (net)
-
-
-
Balance at 31.03.2016
14,057,100
(12,811,230)
-
-
-
-
-
-
-
-
(237,840)
(237,840)
981,140
(246,234)
1,980,776
Accumulated
Losses
losses
attributable to
attributable to
owners of the Non-Controlling
interest
Company
Foreign
currency
translation
reserve
Non-
Controlling
interest
Share
capital
Total
equity
2015
$
$
$
At 1.04.2014
14,057,100
(912,083)
393,717
Loss for the year
-
(10,450,156)
17,841
$
-
-
$
$
13,538,734
-
(10,432,315)
Other comprehensive
income for the year
Non-Controlling
interest
-
-
-
-
-
649,413
-
649,413
-
-
(8,394)
(8,394)
Balance at 31.03.2015
14,057,100
(11,362,239)
17,841 1,043,130
(8,394)
3,747,438
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Asaplus Resources Limited Annual Report 2016
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Consolidatd Statement Of Cash Flows
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Cash flow from operating activities
Loss before taxation
Adjustments for:
Depreciation of plant and equipment
Impairment of exploration and evaluation asset
Impairment of Goodwill
Foreign translation differences
Operating cash flow before working capital changes
(Increase)/Decrease in other receivables
Increase in other payables
Cash from operations
Tax paid
Note
11
10
12
2016
$
2015
$
(1,441,200)
(10,457,313)
51,204
1,281,397
-
(211,744)
(320,343)
(356,520)
725,043
48,180
(10,003)
67,275
9,988,661
609
208,429
20,594
42,704
271,728
(9,672)
Net cash generated from/(used in) operating activities
(38,177)
262,055
Cash flows from investing activities
Exploration expenditure
Purchase of plant and equipment
Loss on disposal of equipment
Net cash (used in) investing activities
11
(763,091)
3,105
(46,042)
(806,028)
(383,237)
-
(383,237)
Net (decrease) in cash and bank balances
(767,851)
(121,182)
Cash and bank balances at the beginning of the year
984,105
1,105,287
Cash and bank balances at the end of the year
7
216,254
984,105
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
1. CORPORATE INFORMATION
The financial statements of the Company and of the Group for the year ended 31 March 2016 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.
The Company had remained dormant since it was incorporated on 24 April 2012 till the date of this report.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 (a) basis of Preparation
The financial statements have been prepared in accordance with Singapore Financial Reporting Standards
(‘FRS”) and are prepared on the historical cost basis except as disclosed in the accounting policies below.
The financial statements of the Company are measured and presented in the currency of the primary economic
environment in which the entity operates (its functional currency). The financial statements of the Company
are presented in Australian Dollars which is the functional currency of the Company and the presentation
currency for the financial statements.
(b) Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year except in the current
financial year, the Company and the group has adopted all the new and revised standards that are effective
for annual periods beginning on or after 1 January 2016. The adoption of these standards did not have any
effect on the financial performance or position of the Company and the group.
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Standards issued but not yet effective
The Company adopted the following standards and interpretations that have been issued.
description
Amendments to FRS 1 Disclosure Initiatives
Amendments to FRS 16 and 38 Clarification of Acceptable Methods of
Depreciation and Amortisation
Amendments to FRS 19 Defined Benefits Plans: Employee Contributions
Amendments to FRS 27 Equity Method in Separate Financial Statements
FRS 109 Financial Instruments
Amendments to FRS 110 and 28 Sale or contribution of Assets between
Investor and its Associate or Joint Venture
Amendments to FRS 111 Accounting for Acquisitions of Interest in
Joint Operations
FRS 127 Disclosure Initiative Joint Arrangements
FRS 114 Regulatory Deferred Accounts
FRS 115 Revenue from Contracts with Customers
Improvements to FRSs (November 2014)
Effective for
annual periods
beginning on or after
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2018
1 January 2018
1 January 2018
1 January 2016
1 January 2016
1 January 2017
1 January 2016
The directors expect that the adoption of these standards and interpretations above will have no material impact
on the financial statements in the period of initial application.
2.2 Financial assets
The Company and the group assess at each reporting date whether there is any objective evidence that a
financial asset is impaired.
Financial Assets
Financial assets are recognised on the balance sheet when, and only when, the Company and the group
becomes a party to the contractual provisions of the financial instrument. The Company and the group
determines the classifications of its financial assets at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets
not at fair value through profit or loss, directly attributable transaction costs.
All regular purchases and sales of financial assets are recognised on the trade date i.e. the date that the
company commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of
financial assets that require delivery of assets within the period generally established by regulation or convention
in the marketplace concerned.
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
2. SUMMARY ACCOUNTING POLICIES (cont’d)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.2 Financial assets (cont’d)
Subsequent measurement
The subsequent measurement of financial assets depend on their classification as follows:
Loans and receivables
Nonderivative financial assets with fixed or determinable payments that are not quoted in an active
market are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are
measured at amortized cost using the effective interest method, less impairment. Gains and losses are recognised
in profit or loss when the loans and receivables are derecognized or impaired, and through the amortisation
process.
De-recognition
A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On
de-recognition of a financial asset in it entirety, the difference between the carrying amount and the sum of
the consideration received and any cumulative gain or loss that has been recognised in other comprehensive
income is recognised in the profit and loss.
Regular way purchase or sale of a financial asset
All regular way purchases and sales of financial assets are recognised or derecognised on the trade date i.e.,
the date the Company commits to purchase or sell the asset. Regular was purchases or sales are purchases of
sales of financial assets that require delivery of assets within the period generally established by regulation or
convention in the marketplace concerned.
2.3
impairment of financial assets
The Company and the group assess at each reporting date whether there is any objective evidence that a
financial asset is impaired.
(a) Financial assets carried at amortised cost
For financial assets carried at amortised cost, the Company and the group first assesses whether objective evidence
of impairment exists individually for financial assets that are individually significant, or collectively for financial
assets that are not individually significant. If the Company and the group determines that no objective evidence
of impairment exists for an individually assessed financial assets, whether significant or not, it includes the asset
in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment.
Assets that are individually assessed for impairment and for which impairment loss is, or continues to be
recognised are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been
incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the
present value of estimated future cash flows discounted at the asset’s carrying amount and the present value of
estimated future cash flows discounted at the financial asset’s original effective interest rate. If a loan has a
variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account. The impairment loss is
recognised in income statement.
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.3
impairment of financial assets (cont’d)
(a) Financial assets carried at amortised cost (cont’d)
When the asset becomes uncollectible, the carrying amount of impaired financial assets is reduced directly or if
an amount was charged to the allowance account are written off against the carrying value of the financial
asset.
To determine whether there is objective evidence that an impairment loss on financial asset has been incurred,
the Company and the group considers factors such as the probability of insolvency or significant financial
difficulties of the debtor and default or significant delay in payments.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment
loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the
reversal date. The amount of reversal is recognised in profit or loss.
Derecognition of financial assets
A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired.
On de-recognition of a financial asset in its entirety, the difference between the carrying amount and the sum
of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive
income is recognised in the profit and loss.
(b) Financial assets carried at cost
If there is objective evidence (such as significant adverse changes in the business environment where the issuer
operates, probability of insolvency or significant financial difficulties of the issuer) that an impairment loss on
financial assets carried at cost has been incurred, the amount of the loss is measured as the difference between
the asset’s carrying amount and the present value of estimated future cash flows discounted at the current
market of return for a similar financial asset. Such impairment losses are not reversed in subsequent periods.
Financial liabilities
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Company and the group becomes a party to the
contractual provisions of the financial instrument. The Company and 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:
Other financial liabilities
After initial recognition, other financial liabilities are subsequently measured at amortised cost using the effective
interest rate method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and
through the amortisation process.
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.3
impairment of financial assets (cont’d)
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.
The Company and the group assesses at each reporting date whether there is any objective evidence that a
financial asset is impaired.
(a) Financial assets carried at amortised cost
For financial assets carried at amortised cost, the Company and the group first assesses whether objective
evidence of impairment exists individually for financial assets that are individually significant, or collectively for
financial assets that are not individually significant. If the Company and the group determines that no objective
evidence of impairment exists for an individually assessed financial assets, whether significant or not, it includes
the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for
impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or
continues to be recognised are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been
incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the
present value of estimated future cash flows discounted at the financial asset’s original effective interest rate.
If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current
effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account.
The impairment loss is recognised in income statement.
When the asset becomes uncollectible, the carrying amount of impaired financial assets is reduced directly or if
an amount was charged to the allowance account, the amounts charged to the allowance account are written
off against the carrying value of the financial asset.
To determine whether there is objective evidence that an impairment loss on financial asset has been incurred,
the Company and the group considers factors such as the probability of insolvency or significant financial
difficulties of the debtor and default or significant delay in payments.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment
loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the
reversal date. The amount of reversal is recognised in profit or loss.
(b) Financial assets carried at cost
If there is objective evidence (such as significant adverse changes in the business.
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.4
impairment of non-financial assets (cont’d)
Environment where the issuer operates, probability of insolvency or significant financial difficulties of the issuer)
that an impairment loss on financial assets carried at cost has been incurred, the amount of the loss is measured
as the difference between the asset’s carrying amount and the present value of estimated future cash flows
discounted at the current market rate of return for a similar financial asset. Such impairment losses are not
reversed in subsequent periods.
The Company and the group assess at each reporting date whether there is indication that an asset has been
impaired. If any indication exists, or when an annual impairment testing for an asset is required, the Company
makes an estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s cash-generating unit’s fair value less costs to sell and
its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or group of assets. Where the carrying amount of an asset
or cash generating unit exceeds its recoverable amount, the asset is considered impaired and is written down
to its recoverable amount. In assessing the value in use, the estimated future cash inflows expected to be
generated by the asset are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset. In determining fair value less costs to see,
recent market transactions are taken into account, if available. If no such transactions can be identified, an
appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share
prices for publicly traded subsidiaries or other available fair value indicators.
The Company and the group bases its impairment calculation on detailed budgets and forecast calculations
which are prepared separately for the Company’s and the group’scash generating units to which the individual
assets are allocated. For longer periods, a long-term growth forecast calculations are generally covering a
period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash
flows after the fifth year.
Impairment losses of continuing operations are recognised in profit and loss in those expense categories
consistent with the function of the impaired asset, except for assets that are previously revalued where the
revaluation was taken to other comprehensive income up to the amount of any previous revaluation.
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
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.
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
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 Project acquired and exploration
and evaluation expenditures capitalized in the 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 FRS “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
(c)
neither budgeted nor planned;
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 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
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:
Years
3
3
5
4
Computer
Office equipment
Furniture and fittings
Motor vehicles
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.
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.4 Summary of significant accounting policies (cont’d)
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 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
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
l
l
l
l
l
significant financial difficulty or probable bankruptcy of the investee;
a breach of contract;
changes in the political or legal environment affecting the investee’s business;
changes in the investee’s condition evidenced by changes in factors such as liquidity, credit ratings,
profitability, cash flows, debt/equity ratio and level of dividend payments; and
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.
Revenue recognition
Revenue is recognised to the extend that it is probable that the economic benefits will flow to the company
and the revenue can be reliably measured regard less of when the payment is made. Revenue is measured
at fair value of consideration received or receivable and represent amounts receivable taking into account
contractually, defined terms of payment and excluding taxes and duty.
The Company remained dormant during the financial year and till date of the financial report.
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
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 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
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
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.
Contingencies
A contingent liability is:
(a) A possible obligation that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company and the group ; or
(b) A present obligation that arises from past events but is not recognised because:
i)
It is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or
ii) The amount of the obligation cannot be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Group.
Contingent liabilities and assets are not recognised on the balance sheet of the Company, except for contingent
liabilities assumed in a business combination that are present obligations and which the fair values can be
reliably determined.
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.4 Summary of significant accounting policies (cont’d)
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 and the group 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.
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
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.4 Summary of significant accounting policies (cont’d)
Deferred tax (cont’d)
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses
can be utilities except:
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.
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.
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.4 Summary of significant accounting policies (cont’d)
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)
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.
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.4 Summary of significant accounting policies (cont’d)
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.
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
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
revaluation surplus. However, to the extent that an impairment loss on the same revalued asset was
previously recognised as an expense in the profit or loss, a reversal of that impairment loss is recognised
as income in the profit or loss.
An impairment loss in respect of goodwill is not reversed, even if it relates to impairment loss recognised in an
interim period that would have been reduced or avoided had the impairment assessment been made at a
subsequent reporting or end of reporting period.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts
receivable for goods and services provided in the normal course of business, net of discounts and sales related
taxes.
Interest income is recognised on a time-apportioned basis using the effective interest rate method.
Functional currencies
Items included in the financial statements of each entity in the Group are measured using the currency of the
primary economic environment in which the entity operates (“functional currency”). The financial statements of
the Group and the Company are presented in Australian Dollars, which is also the functional currency of the
Company.
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.
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
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) Assets and liabilities are translated at the closing exchange rates at the end of reporting period;
ii)
iii) All resulting currency translation differences are recognised in other comprehensive income and accumulated
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. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of the financial statements in conformity with FRSs requires the management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.
3.1 Judgments made in applying accounting policies
There was no material judgement made by management in the process of applying the Company accounting
policies that have the most significant effect on the amounts recognized in the financial statements.
3.2 key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation, uncertainty at the statement
of financial position, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are discussed below.
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the process of applying the entity’s accounting policies, which are described in Note 2, management is required
to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on historical experience
and other factors that are considered relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the year in which the estimates is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affect both current and future periods.
Critical judgements in applying the company’s and groups accounting policies
Management is of the opinion that there are no critical judgements involved that have a significant effect on the
amounts recognised in the financial statements.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities and
the reported amounts of revenue and expenses within the next financial year, are discussed below.
i)
Income Taxes
Significant judgement is required in determining the capital allowances and deductibility of certain expenses
during the estimation of the provision for income taxes. There are many transactions and calculations for which
the ultimate tax determination is uncertain during the ordinary course of business. The company recognises
liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the
final tax outcome of these matters is different from the amounts that were initially recorded, such differences will
impact the income tax and deferred income tax provisions in the period in which such determination is made.
ii)
Significant accounting estimates and judgments
The preparation of the financial statements in conformity with SFRS 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.
iii) 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.
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (cont’d)
iv) Exploration and evaluation expenditure
The Group policy on capitalization of all future expenditure relating to exploration and evaluation of the Tenement
located in Beikeng Mine.
The Group has assessed that the capitalized expenditure will be recoverable through the project’s successful
development.
v)
Impairment of goodwill
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.
The critical accounting estimates and assumptions used or areas involving a high degree of judgment are described
below.
5. FINANCIAL INSTRUMENT, FINANCIAL RISKS AND CAPITAL RISKS ARRANGEMENT - RISK MANAGEMENT
(a) Financial risk management objective and policies
The Company’s and the group’s activities expose it to credit risks, market risks (including foreign currency
risks and interest rate risks). The Company’s overall risk management strategy seeks to minimise adverse
effects from the volatility of financial markets on the Group’s financial performance.
The Management is responsible for setting the objectives and underlying principles of financial risk management
for the Company. The Company’s and the groups management then establishes the detailed policies such as
risk identification and measurement, exposure limits, in accordance with the objectives and underlying principles
set.
There has been no change to the Company’s and the groups exposure to these financial risks or the manner in
which it manages and measures the risk.
Credit Risks
Credit risk refers to the risk that the counterparty will default on their obligations to pay the amounts owing to the
Company and the group, resulting in a loss to the Company and the group. The Company and the group seeks to
minimise the potential adverse effects on its performance by adopting stringent credit policy in extending credit terms
to customers and in the monitoring its credit risk.
The Company’s and the group’s credit policy states clearly the guidelines on extending credit terms to customers.
These include assessing and evaluating each customer’s credit worthiness. In certain instances, the Company would
also request for letters of credits or advance payments from its customers in order to mitigate its exposures to credit
risk.
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
5. FINANCIAL INSTRUMENT, FINANCIAL RISKS AND CAPITAL RISKS ARRANGEMENT - RISK
MANAGEMENT (cont’d)
Credit Risks (cont’d)
The carrying amount of financial assets recorded in the financial statements, grossed up for any allowances for losses,
represents the Company’s maximum exposure to credit risk.
Market risks
The Company and the group is exposed to any market risks.
Liquidity risk
The Company and the group ensures availability of funds through funding from it’s holding company. Due to the
dynamic nature of the underlying businesses, the Company’s financial control maintains flexibility in funding by
maintaining availability under sufficient balance of cash.
Foreign currency risk
l
l
The Company and the group is exposed to fluctuations in Australian dollars
The management minimises the risk with constant monitoring of these risks.
(b) Capital risk management policies and objectives
The Company’s and the group’s objective when managing capital are to safeguard the Company’s and the
group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or
adjust the capital structure, the Company and the group’s may return capital to shareholders, issue new shares,
and sell assets to reduce debt, or adjust the amount of dividends paid to shareholders.
6. SIGNIFICANT RELATED PARTY TRANSACTIONS
Related parties are entities with common direct or indirect shareholders and/or directors. Parties are considered to be
related if one party has the ability to control the other party in making financial and operating decisions.
(a)
In addition to the information disclosed elsewhere in the financial statements, related party transactions between
the company and related parties during the financial year were as follows:
Compensation of key management personnel
Director of the Company
Salaries and other short-term employee benefits
2016
$
27,726
2015
$
24,712
There are no other key management personnel other than Directors of the Company and it’s subsidiaries.
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
7. CASH AND BANK BALANCES
The Company
2015
$
2016
$
The Group
2015
$
2016
$
Cash and cash at bank
44
810
216,254
984,105
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
2015
$
2016
$
44
-
-
-
44
810
-
-
-
810
2016
$
44
215,761
449
-
216,254
The Group
2015
$
1,406
976,099
6,406
194
984,105
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 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
8. AMOUNTS DUE FROM/TO SUBSIDIARIES
The amounts due from/to subsidiaries are non-trade in nature, interest-free, unsecured, repayable only where funds
permit and denominated in Australian dollars.
9. OTHER RECEIVABLES
Other receivables-third parties
Prepayment – related parties
Prepayment – third parties
The Company
2015
$
2016
$
The Group
2015
$
2016
$
248,885
-
11,914
248,885
-
11,914
1,767,157
-
108,207
375,911
-
1,142,934
260,799
260,799
1,875,364
1,518,845
Other receivables are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
The Company
2015
$
2016
$
The Group
2015
$
2016
$
248,885
11,914
248,885
11,914
248,885
1,626,480
248,885
1,269,960
260,799
260,799
1,875,365
1,518,845
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
10. EXPLORATION AND EVALUATION ASSETS
Exploration and evaluation assets comprise the cost of obtained Exploration Licence in relation to the Beikeng Mine
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 Beikeng Mine.
The Group
Total exploration and evaluation assets
Balance at beginning of the period
l
l
l
Impairment of evaluation asset – Silverstone Project
Foreign exchange differences
Expenditure incurred in the year - Beikeng Mine
Balance at end of the period
2016
$
2015
$
1,334,466
(1,281,397)
(53,070)
816,161
951,229
-
-
177,918
816,160
1,334,466
As disclosed in Note 2, the carrying amount of the exploration and evaluation assets is reviewed annually and adjusted
for impairment.
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11. PLANT AND EQUIPMENT
The Group
CoST:
As at 31.03.2014
Additions
Currency realignment
As at 31.03.2015
Additions
Disposals
Currency realignment
As at 31.03.2016
ACCuMuLATEd dEPRECiATioN oN:
As at 31.03.2014
Depreciation for the year
Currency realignment
As at 31.03.2015
Depreciation for the year
Disposals
Currency realignment
As at 31.03.2016
CARRyiNG VALuE:
As at 31.03.2016
As at 31.03.2015
5,002
-
1,045
6,047
-
-
(285)
5,762
1,744
1,684
595
4,023
1,626
-
(228)
5,421
341
2,032
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
Computer
$
office
Equipment
$
Furniture
and Fittings
$
Motor
vehicle
$
Total
$
265,693
-
55,442
321,135
3,105
(123,636)
(1,055)
249,186
-
51,996
301,182
3,105
(123,636)
(11,295)
169,356
199,549
33,189
62,919
15,566
111,674
45,952
(73,439)
(4,603)
37,537
67,274
17,071
121,882
51,204
(73,439)
(5,210)
79,584
94,437
2,610
-
545
3,155
-
-
11,033
14,188
637
879
253
1,769
1,636
-
(123)
3,282
8,895
-
1,856
10,751
-
-
(508)
10,243
1,967
1,792
657
4,416
1,990
-
(256)
6,150
10,906
1,386
4,093
6,334
89,772
137,511
105,112
199,253
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
12. GOODWILL
Goodwill
Impairment during the financial year
Movements in provision for impairment are as follows:-
Balance at beginning of financial year
Impairment during the financial year
Balance at end of financial year
2016
$
-
-
-
2016
$
9,988,661
-
9,988,661
2015
$
9,988,661
(9,988,661)
-
2015
$
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.
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.
13. INVESTMENT IN SUBSIDIARIES
The Company
2016
$
2015
$
Unquoted equity investments, at cost
10,009
10,001,7191
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
13. INVESTMENT IN SUBSIDIARIES (cont’d)
The consolidated financial statements include the financial statements of Asaplus Resources Limited and its
subsidiaries listed in the following table.
Name of subsidiary
Principal
activities
Country of
incorporation
and business
Effective equity
held by the Group
2015
%
2016
%
Cost of investment
by the Company
2015
$
2016
$
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”)
Held by DHIC
Hong Ji Mining
Co., Ltd(b)
Yinzhou Mining
Co., Ltd(a)
Investment
holding
Consulting
services
Consulting
services
Consulting
services
Consulting
services
Exploration,
mining and
marketing of
iron ore
Exploration,
mining and
marketing of
iron ore
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
80
-
China
-
51
-
-
-
-
-
-
-
-
-
-
-
-
10,001,719
10,001,719
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
13. INVESTMENT IN SUBSIDIARIES (cont’d)
During the financial year, the Company's wholly owned subsidiary Datian Huixiang Investments Consulting Co., Ltd:
(a)
disposed of its 51% interest in Datian Yinzhou Mining Co., Ltd (“Yinzhou Mining”), a company registered in China
by way of deregistration of Yinzhou Mining. Yinzhou Mining was deregistered in April 2015.
registered a subsidiary company, Datian Hongji Mining Co., Ltd (“Hongji Mining”). The Group's has an 80% interest
in Hongji Mining, although it is the registered holder of 90% of its share capital. The Group holds the balance 10%
interest in Hongji Mining as bare custodian for a local partner, and will transfer the aforesaid 10% interest to the local
partner at nil consideration at any time it is requested to do so by the local partner.
(b)
The subsidiaries of the Company are audited by MGI Singapore PAC.
14. SHARE CAPITAL
The Group
2016
Number of shares
2015
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.
15. OTHER PAYABLES
Amount due to directors*
Amount due to a related party*
Other payables-third parties
Accruals
2016
$
23,330
-
-
21,910
45,240
The Company
2015
$
23,330
29,250
15,555
68,832
2016
$
23,330
-
986,874
21,910
The Group
2015
$
23,330
29,250
185,659
68,832
136,967
1,032,114
307,071
*Amounts are non-trade in nature, unsecured, interest-free and repayable on demand.
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
15. OTHER PAYABLES (cont’d)
Other payables are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
16. REVENUE
Sale of goods
Consulting services
2016
$
45,240
-
45,240
The Company
2015
$
121,402
15,555
136,967
The Group
2015
$
2016
$
1,032,114
-
121,402
185,669
1,032,114
307,071
The Group
2016
$
-
-
-
2015
$
2,504,652
36,194
2,540,846
The revenue represent the invoiced value of goods sold and consulting services provided, net of discounts and sales
taxes.
17. OTHER INCOME
Gain on foreign exchange, net
Interest income
Sundry income
18. LOSS BEFORE INCOME TAX
Loss before tax has been arrived at after charging:
Bad debts-non trade
Employee benefit expense (note 19)
Depreciation of plant and equipment (note 11)
Loss on deregistration of subsidiary
The Group
2016
$
549,651
1,532
-
551,103
2015
$
529
3,583
401
4,513
The Group
2016
$
2015
$
37,120
158,699
51,204
10,557
-
205,262
67,274
-
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
19. EMPLOYEE BENEFITS
Employee benefit expense (including key management personnel)
Salaries and bonus
Other benefits
20. INCOME TAX EXPENSE
Current year’s tax
Prior year’s tax
Current tax for the financial period
The Group
2016
$
2015
$
134,294
24,405
158,699
179,606
25,656
205,262
The Group
2016
$
-
7,791
7,791
2015
$
-
10,684
10,684
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
Prior year’s underprovision of tax
Tax effect of non-deductible expenses
Deferred tax asset not recognised
Tax for the financial period
The Group
20165
$
2015
$
(1,441,200)
(10,457,313
(354,532)
7,791
354,532
-
7,791
(2,586,372)
-
2,503,014
94,042
10,684
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 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
21. 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
2016
$
2015
$
88,000,000
88,000,000
-
3,000,000
88,000,000
91,000,000
The Group
2016
$
2015
$
Loss for the purpose of calculating basic and diluted loss per share
(1,448,991)
(10,450,156)
As at the date of the financial statement, none of the options were exercised during the financial year.
22. DIVIDEND
During the current financial year, no dividend was proposed declared or paid.
23. 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:
Chinese Renminbi
Hong Kong Dollar
Singapore Dollar
The Group
2016
$
0.2020
0.1682
-
2015
$
0.2120
0.1677
0.9461
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
24. AUDITORS’ REMUNERATION
Audit services
21. RELATED PARTY TRANSACTIONS
The Group
2016
$
2015
$
24,000
24,000
The Group has entered into a related party transaction with an entity in which a director of the Company's subsidiary
has an interest in. The following amount is the transaction with the related party based upon commercial arm's length
terms and conditions:
Business process outsourcing fee paid to a company in which a
director of the Company's subsidiary has interest
The Group
2016
$
2015
$
-
43,824
The above transaction between related parties is on normal commercial terms.
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.
26. SEGMENT REPORTING
The Group identifies its operating segments based on the regular internal financial information reported tithe executive
Directors for their decisions 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
l
Mining - exploration and mining of iron ore.
Trading and consulting service - trading of copper strips and providing consulting services.
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
26. SEGMENT REPORTING (cont’d)
(a) Segment results, assets and liabilities
2016
Mining
$
-
-
-
$
-
-
-
Trading and
consulting
service
$
-
-
-
others
Total
$
-
-
-
-
$
-
-
-
549,651
410,401
139,250
(1,118,641)
1,230,733
1,743,234
(177,779)
8,514,878
3,640,205
(144,780)
16,041,808
2,732,071
(1,441,200)
25,870,419
8,115,510
Trading and
consulting
service
$
2,540,846
-
2,540,846
others
$
-
-
-
Total
$
2,540,846
-
2,540,846
(10,260,163)
1,585,449
(75,518)
14,538,958
(121,632)
6,211,269
(10,457,313)
22,335,676
1,896,866
676,881
2,754,673
5,328,420
Revenue
From external customers
From other segments
Segment revenues
Effect on Segment operations-
foreign currency translation profit/(loss)
Segment other operating (loss)/profit
before tax
Segment assets
Segment liabilities
Revenue
From external customers
From other segments
Segment revenues
Segment operating (loss)/profit
before tax
Segment assets
Segment liabilities
2015
Mining
*Others relate to the corporate activities of the Company as well as the other operating segments that are not reportable.
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
26. SEGMENT REPORTING (cont’d)
(b) Reconciliations of reportable segment profit or loss, assets and liabilities to its consolidated
financial statement:
(Loss) before taxation
Reportable segments 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
2016
$
2015
$
(1,441,200)
-
(10,457,313)
-
(1,441,200)
(10,457,313)
2016
$
2015
$
24,870,419
(21.576,132)
22,335,676
(15,010,011)
3,294,287
7,325,665
2016
$
2015
$
8,115,510
(7,083,397)
5,328,420
(5,021,350)
1,032,113
3,070,070
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
27. INTERESTS OF KEY MANAGEMENT PERSONNEL (KMP) (cont’d)
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
01.04.2015
-
39,000,000
-
39,000,000
disposed
during the
year
Acquired
during the
year
-
-
-
-
-
-
-
-
balance
as at
31.03.2016
-
39,000,000
-
39,000,000
Note 1: An adult and financially independent son of IrChe Mohamed Hussein, namely Mr Mohamed LyliaAnwar,
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 WilLian (37.5%). LAU Eng Foo (Andy)
is also a director of Asaplus International Limited, the other being Mr HONG Xusheng.
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.
LAU Eng Foo (Andy)
Hong Xusheng
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.
No. of
Performance
Shares
1,200,000
450,000
350,000
2,000,000
1,000,000
3,000,000
Asaplus Resources Limited Annual Report 2016
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Notes To The Financial Statements
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
28. CONTINGENCIES
There are not contingent liabilities as at the date of these financial statements.
29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company and the Group are exposed to financial risks arising from its operations and use of financial instruments.
The key financial risks included credit risk, liquidity risk, interest rate risk, foreign currency risk and market price risk.
The Company’s and the Group’s overall risk management programme focuses on the unpredictability of financial
markets and seeks to minimise adverse effects from the unpredictability of financial markets on the Company’s and
the Group’s financial performance.
Risk management is carried out by the Finance Division under policies approved by the Board of Directors. The
Finance Division identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating
units. The Board provides written principles for overall risk management, as well as written policies covering specific
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative and non-derivative financial
instruments and investing excess liquidity.
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.
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.
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Notes To The Financial Statements
29. 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 and the Group’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.
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.
30. CAPITAL RISK MANAGEMENT
The Group’s objectives when managing capital are:
•
•
•
•
to safeguard the Group’s ability to continue as a going concern;
to support the Group’s stability and growth;
to provide capital for the purpose of strengthening the Group’s risk management capability; and
to provide an adequate return to shareholders.
The Group actively and regularly reviews and manages its capital structure to ensure optimal capital structure and
shareholders’ returns, taking into consideration the future capital requirements of the Group and capital efficiency. The
Group does not have any borrowings as at the financial 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.
Asaplus Resources Limited Annual Report 2016
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Shareholding Analysis
Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
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.
Prior to and as of the commencement of FY2016, 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 certain key personnel
upon and only upon attainment of a mining permit to commence commercial iron ore production at the Silverstone Project
is granted (the “Performance Milestone”). Under the terms of the agreement to issue the Performance Shares, if the
Performance Shares are not issued on or before 29 July 2015, no Performance Share may be issued. As the Performance
Milestone was not attained on or before 29 July 2015, the Performance Shares will no longer 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
221
137
51
0.24
0.24
53.77
33.33
12.41
411
100.00
1
4,000
2,210,000
4,219,000
81,566,999
88,000,000
%
0.00
0.00
2.51
4.79
92.69
100.00
Asaplus Resources Limited Annual Report 2016
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Asaplus Resources Limited And Its Subsidiaries For The Financial Year Ended 31 March 2016
Shareholding Analysis
Substantial Shareholders
Substantial Shareholders of the Company as of 3 August 2016 are as follows:
Name
Asaplus International Limited
Lau Eng Foo (Andy)(1)
Hong Xusheng(1)
Tan Wil Lian(1)
Wang Jianrong
Boon Thua Kee
(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.
12.
15.
18.
19.
20.
Asaplus International Limited
Boon Thuan Kee
Liqin Lin
Wang Jianrong
Ding Poi Bor
Sinny United Sdn Bhd
Jiansheng Qiu
Qun Liu
Irene Chua Paik See
Seong Kung Mah
Citicorp Nominees Pty Ltd
Zambri Bin Abd Hamid
Kok Kin Ting
Kok Fi John Ho
Jiacheng Li
Mohamed Iylia Anwar Bin Che Mohamed Hussein
Dandong Li
Lu Bo
Fidus Custodians Limited
Too Seong Ling
Balance of Register
Number of Cdis
directly Held
39,000,000
3,010,000
4,691,000
deemed interested
39,000,000
39,000,000
39,000,000
3,000,000
No. of Cdis
39,000,000
4,691,000
3,520,000
3,010,000
3,000,000
2,000,000
1,936,000
1,760,000
1,700,000
1,370,000
1,040,000
1,000,000
1,000,000
1,000,000
880,000
880,000
880,000
839,143
785,000
730,000
71,021,143
16,978,857
88,000,000
%
44.32
5.33
4.00
3.42
3.41
2.27
2.20
2.00
1.93
1.56
1.18
1.14
1.14
1.14
1.00
1.00
1.00
0.95
0.89
0.82
80.70
19.30
100.00
Security Holding Queries
All queries relating to holdings of CDIs issued by the Company should be addressed to the Company's share registry at
the following address:
Link Market Services Limited
Level 4 Central Park
152 St Georges Terrace
Perth WA 6000
Asaplus Resources Limited Annual Report 2016
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ASAPLUS RESOURCES LIMITED
ARBN 158 717 492 ASX Code AJY
21 Bukit Batok Crescent #15-74
WCEGA Tower
Singapore 658065
www.asaplusresources.com
Asaplus Resources Limited Annual Report 2016
56
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