PB
1
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017 2
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017 2
3
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017 ASAPLUS
Resources Limited
CREATING LONG
TERM VALUE
4
ASAPLUS RESOURCES LIMITED
AND ITS SUBSIDIARIES
(Incorporated in Singapore)
(ARBN 158 717 492)
ANNUAL REPORT
For the financial year ended 31 March 2017
INDEX
Page No.
CHAIRMAN’S STATEMENT
BOARD OF DIRECTORS
CORPORATE GOVERNANCE
DIRECTORS’ REPORT
DIRECTORS’ STATEMENT
INDEPENDENT AUDITOR’S REPORT
STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
4
7
8
19
20
21
24
25
26
27
28
Independent Auditors
MGI Singapore PAC
Public Accountants and
Certified Public Accountants
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS
Resources Limited
ASAPLUS RESOURCES LIMITED
AND ITS SUBSIDIARIES
(Incorporated in Singapore)
(ARBN 158 717 492)
ANNUAL REPORT
For the financial year ended 31 March 2017
INDEX
Page No.
CHAIRMAN’S STATEMENT
BOARD OF DIRECTORS
CORPORATE GOVERNANCE
DIRECTORS’ REPORT
DIRECTORS’ STATEMENT
INDEPENDENT AUDITOR’S REPORT
STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
4
7
8
19
20
21
24
25
26
27
28
Independent Auditors
MGI Singapore PAC
Public Accountants and
Certified Public Accountants
4
5
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Chairman’s Statement
DEAR SHAREHOLDERS,
It gives me great pleasure to share with you the latest annual report of 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 from 1 April 2016 to 31 March 2017
(“FY2017”).
The commodities market continues to experience price volatility, arising from the on going weak
demand in most of the major economies and over-supply in the key producer countries in the world.
This has plagued the global commodities market and especially has affected the main players and
their production plans, and we expect this bearish sentiment to continue to last for the next 2 years.
Against this back drop, many commodities producers are consolidating their businesses by closing
the inefficient mines, and at the same time augmenting their asset base by acquiring strategic
mining assets that enables them to produce at a lower cost base. We are fortunate that the Beikeng
Mine has been issued with an inferred resource of 1,058,100 tonnes (JORC compliant), in a report
which was prepared by an independent geologist. (Please refer to the section below on Mining
Tenements of The Group for more details).
For the Group, the management has taken the last financial year to prepare our new tenement, the
Beikeng Mine for commencement of commercial operations by obtaining all the relevant licensing
and permits. As you may have already been informed from the recent announcements made by the
Company, the Group has successfully obtained the extraction permit and the safety production
licence. I wish to thank the hard work and dedication of the senior management team led by our
Group CEO and his dedicated staff to make this possible. I am also pleased to update you that the
redevelopment works for the mine adits and the main access road have also been substantially
completed. The management team is currently finalising the plan for a multi-mineral ore processing
plant together with the financing arrangements. This is expected to take about 3 to 6 months. Once
all these have been finalised, the Group should be in a position to kick off the production process
for the mine and to generate revenue for the Group.
Moving forward, the Group is exploring tie-ups with key strategic partners to access financial
resources and to implement future growth strategies for its operations.
The Group will also continue to capitalise on strategic opportunities as and when made available to
it, such as the most recent acquisition of the Beikang Mine. In addition, it is the Group’s continue
undertakings to provide development of our employee competencies, protecting the environment,
helping the communities in which we operate and enhancing long team value for our shareholders.
On behalf of the Board, I would like to thank all our shareholders for their continued support in
these past years.
6
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Chairman’s Statement
Mining Tenements of the Group
Beikeng Mine is licensed under Datian Hongji Mining Co., Ltd, which is an 80% owned subsidiary
of the Group. The Beikeng Mine is a 0.771 km2 tenement located at Datian County, Fujian
Province in the People’s Republic of China. The current resources estimate of the Beikeng Mine is
1,058,100 tonnes in the Inferred Category and Exploration Target Potential of 250,000 to 350,000
tonnes. Please refer to chart below for the ore proportion.
Tungsten (Wo3)
Lead (Pb)
Iron (Fe)
Others
Zinc (Zn)
In addition to the Beikeng Mine, the Group also has another tenement, known as Silverstone
Project, which is licensed under Datian Silverstone Mining Co., Ltd, a wholly owned subsidiary of
the Group. It is a 5.6 km2 tenement which 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.
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 and 12
July 2017.
6
7
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 201769.15%1.53%1.22%27.52%0.58%
Chairman’s Statement
Share Buy-back
In the financial year under review, the Company did not carry out any buy back of its shares. As of
the date of this Annual Report, the Company has not sought shareholders' approval for the buyback
of its shares.
Your faithfully
...........................................................................
Ir Che Mohamed Hussein Bin Mohamed Shariff
Independent Non-Executive Chairman
8
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Board of Director
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
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.
technical management,
DOMINIC LIM KIAN GAM
Independent Director, Non- Executive Chairman
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 securitisation 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.
DATO’ LAU ENG FOO
Managing Director
Dato’ Lau 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. Dato’
Lau has been involved in these lines of business since the early
1970’s. Dato’ Lau has relinquished a major portion of the day- to-day
management role in the Malaysian companies to focus on his role
as the Company’s Executive Director to spearhead the Company’s
business in China. As Managing Director, Dato’ Lau provides the
entrepreneurial drive and strategic direction for the Company direction
for the Company.
8
9
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017 Corporate Governance
10
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliance1.1A listed entity should disclose:(a)the respective roles and responsibilities of its board and management; and(b)those matters expressly reserved to the board and those delegated to management.The Company complies in full with this RecommendationThe board has adopted a formal Board Chartersetting out the responsibilities of the board. This charter can be downloaded from the Company’s website at the following URL: www.asaplusresources.com.1.2A listed entity should:(a)undertake appropriate checks beforeappointing a person, or putting forward to security holders a candidate for election, as a director; and(b)provide security holders with all material information in its possession relevant to a decision on whether or not to elect or re-elect a director.The Company complies in full with this RecommendationThe entire board will carry out appropriate checks before appointing a person, or putting forward to security holders a candidate for election, as a director. All material informationin the board’s possession will be set out in explanatory notes accompanying notices of general meetings where appointments of directors will be voted on by security holders.1.3A listed entity should have a written agreement with each director and senior executive setting out the terms of their appointment.The Company complies in full with this RecommendationEach director is required to sign a letter of appointment setting out the terms of his or her appointment. There is currently no senior executive being employed on a full time basis by the Group.1.4The company secretary of a listed entity should be accountable directly to the board, through the chair, on all matters to do with the proper functioning of the board.The Company complies in full with this Recommendation. The chair and each member of the board has free and unfettered access to the company secretary. The company secretary is also authorized to communicate any issue or raise any concern directly with the chair and/or any member of the board as he consider necessary.Page 1 Corporate Governance
10
11
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliance1.1A listed entity should disclose:(a)the respective roles and responsibilities of its board and management; and(b)those matters expressly reserved to the board and those delegated to management.The Company complies in full with this RecommendationThe board has adopted a formal Board Chartersetting out the responsibilities of the board. This charter can be downloaded from the Company’s website at the following URL: www.asaplusresources.com.1.2A listed entity should:(a)undertake appropriate checks beforeappointing a person, or putting forward to security holders a candidate for election, as a director; and(b)provide security holders with all material information in its possession relevant to a decision on whether or not to elect or re-elect a director.The Company complies in full with this RecommendationThe entire board will carry out appropriate checks before appointing a person, or putting forward to security holders a candidate for election, as a director. All material informationin the board’s possession will be set out in explanatory notes accompanying notices of general meetings where appointments of directors will be voted on by security holders.1.3A listed entity should have a written agreement with each director and senior executive setting out the terms of their appointment.The Company complies in full with this RecommendationEach director is required to sign a letter of appointment setting out the terms of his or her appointment. There is currently no senior executive being employed on a full time basis by the Group.1.4The company secretary of a listed entity should be accountable directly to the board, through the chair, on all matters to do with the proper functioning of the board.The Company complies in full with this Recommendation. The chair and each member of the board has free and unfettered access to the company secretary. The company secretary is also authorized to communicate any issue or raise any concern directly with the chair and/or any member of the board as he consider necessary.Page 1ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliance1.5A listed entity should:(a)have a diversity policy which includes requirements for the board or a relevant committee of the boardto set measurable objectives for achieving gender diversity and to assess annually both the objectives and the entity’s progress in achievingthem;(b)disclose that policy or a summary of it; and(c)disclose as at the end of each reporting period the measurable objectives for achieving gender diversity set by the board or a relevant committee of the board in accordance with the entity’s diversity policy,and its progress towards achieving them and either:(1)the respective proportions of men and women on the board, in senior executive positions and across the whole organisation (including how the entity has defined “senior executive” for these purposes); or(2)if the entity is a “relevant employer” under the Workplace Gender Equality Act, the entity’s most recent“Gender Equality Indicators”, as defined in and published under that Act.The Company does not comply in full with this Recommendation. The board supports workplace diversity, including gender diversity but considers that the Company is not of a size or maturity to justify a formal diversity policy. The board’s priority has been to ensure that its members have the appropriate level of experience and skills to manage the Company at its early stages of operation rather than focusing on gender and other diversity factors.The Company's operating subsidiary carries onbusiness of developing an iron ore mine located in the People's Republic of China (“China”). The potential pool of female personnel in China qualified and, more importantly, willing to work in the mining industry at all levels, including senior executive level, is extremely small relative to the total manpower needs of the industry as awhole. Therefore, the board is of the opinion that even if the Company adopts a gender diversity policy and measurable objectives to achieving gender diversity, the Company will not be able to achieve these objectives.1.6A listed entity should:(a)have and disclose a process for periodically evaluating the performance of the board, its committees and individual directors; andThe Company complies in full with this Recommendation. The Company has a practice and a process of periodically evaluating the performance of theboard (collective self appraisal) and individual directors (peer review by other members of the board). This review will be done at the endPage 2 Corporate Governance
12
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliance(b)disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in accordance with that process.of each financial year at the same time the board meets to approve its financial statements for that financial year.In relation to the financial year ended 31 March 2017 (the “Reporting Period”), the Company had carried out a performance evaluation in accordance with this process.1.7A listed entity should:(a)have and disclose a process for periodically evaluating the performance of its senior executives;and(b)disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in accordance with that process.The Company complies in full with this Recommendation. The board will meet at least annually to review the performance of executives. The senior executives’ performance is assessed against the performance of the Group as a whole.In relation to the Reporting Period, this performance evaluation was not carried out asthere is no senior executive employed by the Group.2.1The board of a listed entity should:(a)have a nomination committee which:(1)has at least three members, a majority of whom are independent directors; and(2)is chaired by an independent director,and disclose:(3)the charter of the committee;(4)the members of the committee; and(5)as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; orThe Company does not comply in full with this Recommendation. The board considers that the Company is not currently of a size to justify the formation of a nomination committee. The board as a whole undertakes the process of reviewing the skill base and experience of existing directors to enable identification or attributes required in new directors. When appropriate, independent consultants will be engaged to identify possible new candidates for the boardeither as addition to the board to supplement its current skills and experience or as part of succession planning for the board.Page 3 Corporate Governance
12
13
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliance(b)if it does not have a nomination committee, disclose that fact and the processes it employs to address board succession issues and to ensure that the board has the appropriate balance of skills, knowledge, experience, independence and diversity to enable it to discharge its duties and responsibilities effectively.2.2A listed entity should have and disclose a board skills matrix setting out the mix of skills and diversity that the board currentlyhas or is looking to achieve in its membershipThe Company does not comply in full with this Recommendation. The board considers that the Company is currently at early stages of operations, and that its current composition has the appropriate level of experience and skills to manage the Company. As the Company grows is scope and scale of operations, the board willassess the skills matrix it currently has, the skills matrix it seeks to achieve and what actions it needs to take to achieve that target.2.3A listed entity should disclose:(a)the names of the directors considered by the board to be independent directors;(b)if a director has an interest, position,association or relationship of the type described in Box 2.3 but the board is of the opinion that it does not compromise the independence of the director, the nature of the interest, position, association or relationship in question and an explanation of why the board is of that opinion; and(c)the length of service of each director.The Company complies in full with this Recommendation.As of the date of this Corporate Governance Statement, the board comprised of the following persons:Che Mohamed Hussein Bin Mohamed ShariffIndependent non-executive director and Chairman of the boardDate first appointed:1 August 2012Date last elected:27 August 2016LAU Eng Foo (Andy)Executive director / managing directorDate first appointed:1 August 2012Date last elected:N/A##As managing director, he is not subject to re-electionPage 4 Corporate Governance
14
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-complianceDominic LIM Kian GamIndependent non-executive directorDate first appointed:24 November 2014Date last elected:29 August 2016#The independent directors, namely Che Mohamed Hussein Bin Mohamed Shariff and Dominic LIM Kian Gam has no interest, position, association or relationship of the type described in Box 2.3.2.4A majority of the board of a listed entity should be independent directors.The Company complies in full with this Recommendation. The Company currently has two independent, non-executive directors and one executive director.2.5The chair of the board of a listed entity should be an independent director and, in particular, should not be the same person as the CEO of the entity.The Company complies in full with this Recommendation.Currently, the chairman of the board is Che Mohamed Hussein Bin Mohamed Shariff, an independent director and the functions of the chief executive officer is carried out by LAU Eng Foo (Andy), the Company’s managing director.2.6A listed entity should have a program for inducting new directors and provide appropriate professional development opportunities for directors to develop and maintain the skills and knowledge needed to perform their role as directors effectively.The Company complies in full with this Recommendation. The board has in place a program where all potential directors are assessed by the entire board as to the extent of his or her awareness of his or her responsibilities as a director of a company which is listed on ASX, and where such awareness is insufficient, to undergo such training or induction as may be required. Each members of the present board are awareof his personal responsibilities to develop and maintain the skills and knowledge needed to perform his role as director effectively and, if so requested by a director, the Company will bear reasonable costs and expenses of any continuing education program or course whichthe director may request to attend. Page 5 Corporate Governance
14
15
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-complianceFinally, the board intends to appoint only as director a person who has the necessary skills and knowledge to perform his or her intended role and who is aware of his or her personal responsibility for his or her own continuous education.3.1A listed entity should:(a)have a code of conduct for its directors, senior executives and employees; and(b)disclose that code or a summary of it.The Company complies in full with this Recommendation. The Company has adopted a Code of Conduct,which can be which can be downloaded at theCompany’s website. 4.1The board of a listed entity should:(a)have an audit committee which:(1)has at least three members, all of whom are non- executive directors and a majority of whom are independent directors; and(2)is chaired by an independent director, who is not the chair of the board,and disclose:(3)the charter of the committee;(4)the relevant qualifications and experience of the members of the committee; and(5)in relation to each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; orThe Company does not comply in full with this Recommendation. The board considers that the Company is not of a size, nor is its financial affairs of such complexity, to justify the formation of an auditcommittee. The board as a whole, in consultation with the incumbent external auditor, undertakes the selection and proper application of accounting policies, the integrityof financial reporting, the identification and management of risk and review of the operation of the internal control systems. When performing the role of an audit committee or when the board meets as the audit committee it will be chaired by Dominic LIM Kian Gam who has a bachelor's degree in business and a MSc degree in finance and has relevant financial expertise.The board maintains regular communication with the external auditor and monitors their performance on a yearly basis. Currently, the board considers the Company’s financial affairs to be of such complexity as to justify the rotation of the audit partner.Page 6 Corporate Governance
16
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliance(b)if it does not have an audit committee, disclose that fact and the processes it employs that independently verify and safeguard the integrity of its corporate reporting, including the processes for the appointment and removal of the external auditor and the rotationof the audit engagement partner.4.2The board of a listed entity should, before it approves the entity’s financial statements for a financial period, receive from its CEO and CFO a declaration that, intheir opinion, the financial records of the entity have been properly maintained and that the financial statements comply with the appropriate accounting standards and give a true and fair view of the financial position and performance of the entity and that the opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.The Company complies in full with this Recommendation. The board will receive an annual assurance in the form of a declaration from the chief executive officer and the chief financial officer (or equivalent) as required by the Corporations Act 2001.4.3A listed entity that has an AGM should ensure that its external auditor attends its AGM and is available to answer questions from security holders relevant to the audit.The Company complies in full with this Recommendation. It is Company’s policy, and will make such a policy a term of the auditor's appointment, forthe engagement partner or a personnel of sufficient seniority who was involved in the conduct of the audit to be present at the AGMbe available to answer questions about the conduct of the audit and the preparation and content of the auditors’ report. 5.1A listed entity should:(a)have a written policy for complying with its continuous disclosure obligations under the Listing Rules; and(b)disclose that policy or a summary of it.The Company complies in full with this Recommendation. The Company has adopted a Continuous Disclosure Policy which can be downloaded at the Company’s website.Page 7 Corporate Governance
16
17
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliance6.1A listed entity should provide information about itself and its governance to investorsvia its website.The Company complies in full with this Recommendation. The Company maintains a corporate website (URL: www. asaplusresources.com ). The website contains information about the Company and its operating subsidiaries. An updated Corporate Governance Statement willalso be published on the website.6.2A listed entity should design and implement an investor relations program to facilitate effective two-way communication with investors.The Company complies in full with this Recommendation. The Company implements an active investor relations program. It outsources its investor relations functions to its nominated adviser who is to designate one of its personnel to act as the Company’s investor relations officer tasked to attend to all communication with investors. The e-mail address of the investor relations officer is ir@asaplusresources.com and investors are encouraged to write to the Company with any queries.6.3A listed entity should disclose the policies and processes it has in place to facilitate and encourage participation at meetings ofsecurity holders.The Company complies in full with this Recommendation. The Company has adopted a Shareholders’Communication Policy which sets out the policies and processes it has put in place to facilitate and encourage participation atmeetings of security holders.6.4A listed entity should give security holders the option to receive communications from, and send communications to, the entity and its security registry electronically.The Company complies in full with this Recommendation. The Company’s security registry has in place and has implemented a system where securityholders are given the option to receive communications from, and send communications to, the entity and its security registry electronically.7.1The board of a listed entity should:(a)have a committee or committees to oversee risk, each of which:The Company does not comply in full with this Recommendation. The board considers that the Company is not of a size, nor is its operations of such Page 8 Corporate Governance
18
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliance(1)has at least three members, a majority of whom are independent directors; and(2)is chaired by an independent director,and disclose:(3)the charter of the committee;(4)the members of the committee; and(5)as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or(b)if it does not have a risk committee or committees that satisfy (a) above, disclose that fact and the processes it employs for overseeing the entity’srisk management framework.complexity, to justify the formation of a risk management committee. The board as a whole will oversee the risk management for the Company taking into account key material risks faced by the Company as identified by the board and how these risks or, if the risks materialises, its possible impact can be minimised.The board will ensure that risk management isincluded on the agenda of meetings of the board.7.2The board or a committee of the board should:(a)review the entity’s risk management framework at least annually to satisfy itself that it continues to be sound; and(b)disclose, in relation to each reporting period, whether such a review has taken place.The Company complies in full with this Recommendation. The board will reviews the entity’s risk management framework at least annually to satisfy itself that it continues to be sound. For the Reporting Period, the board carried out this risk management framework.7.3A listed entity should disclose:(a)if it has an internal audit function, how the function is structured and what role it performs; or(b)if it does not have an internal audit function, that fact and the processes The Company complies in full with this Recommendation. The Company does not have an internal audit function.The primary responsibility for risk management and internal controls on a day-Page 9 Corporate Governance
18
19
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-complianceit employs for evaluating and continually improving the effectiveness of its risk management and internal control processes.to-day basis at the operations level vests with the managing director. The board will ensure that risk management is included at least quarterly on the agenda of meetings of the board, for discussion with the managing director.7.4A listed entity should disclose whether it has any material exposure to economic, environmental and social sustainability risks and, if it does, how it manages or intends to manage those risks.The Company complies in full with this Recommendation. The Company complies in full with this Recommendation. This information is disclosed in the Company’s Risk Management Policy a copy of which can be downloaded from the Company’s website.8.1The board of a listed entity should:(a)have a remuneration committee which:(1)has at least three members, a majority of whom are independent directors; and(2)is chaired by an independent director,and disclose:(3)the charter of the committee;(4)the members of the committee; and(5)as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or(b)if it does not have a remuneration committee, disclose that fact and the processes it employs for setting The Company does not comply in full with this Recommendation. The board considers that the Company is not of a size to justify the formation of a remuneration committee. The board as a whole will perform the function of the remuneration committee.The remuneration of executive directors are set out their employment contracts. The board will seek shareholders’ approval at general meetings before paying any directors’ fees.The CEO sets and determines the remuneration for senior executives and he does so having regard to prevailing levels paid to executives performing similar roles at comparable companies. Where the remuneration intended to be offered to any senior executive is materially more than such comparable levels, the CEO is required to obtain prior approval from the board before making such an offer.The board considers that the Company is not of a size to justify the formation of a remuneration committee. The board as a whole will perform the function of the remuneration committee.Page 10 Corporate Governance
20
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
DIRECTORS’ STATEMENT
The directors are pleased to present their statement to the members together with the audited
financial statements of the company and the balance sheet and statement of changes in equity for the
financial year ended 31 March 2017.
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 2017 and the financial performance, changes in equity and cash flows
of the Company and the Group for the financial year ended on that date;
ii) 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.
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
(Independent Non-Executive Director, Chairman)
Dato’ LAU Eng Foo (Andy)
Dominic LIM Kian Gam
(Executive Director)
(Independent Non-Executive Director)
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
Holdings in which Director is
name of Director or nominee
deemed to have an interest
At 01.04.16
At 31.03.2017
At 01.04.16
At 31.03.2017
Dato’ LAU Eng Foo (Andy)
-
39,000,000
39,000,000
-
1
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliancethe level and composition of remuneration for directors and senior executives and ensuring that such remuneration is appropriate and not excessive.The remuneration of the managing director is set out his employment contract and its terms disclosed in the prospectus. Pending achievement of certain performance milestone, which as of the date of this statement has not been achieved, the managing director has agreed not to receive this remuneration. Under Singapore law, directors’ fees are subject to approval by shareholders at an annual general meeting.The managing director sets and determines the remuneration for senior executives and hedoes so having regard to prevailing levels paid to executives performing similar roles at comparable companies. Where the remuneration intended to be offered to any senior executive is materially more than such comparable levels, the managing director is required to obtain prior approval from the board before making such an offer.8.2A listed entity should separately disclose its policies and practices regarding the remuneration of non-executive directors and the remuneration of executive directors and other senior executives.The Company does not comply in full with this Recommendation. The Company does not have a formal policy regarding the remuneration of non-executive directors and the remuneration of executive directors and other senior executives. The current practice in relation to this is set out in the explanation to the Company’s adoption of Principal 8.1 above.8.3A listed entity which has an equity-based remuneration scheme should:(a)have a policy on whether participants are permitted to enter into transactions (whether through the use of derivatives or otherwise) which limit the economic risk of participating in the scheme; and(b)disclose that policy or a summary of it.This Recommendation is not applicable as the Company does not have an equity-based remuneration scheme.Page 11
Directors’ Report
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
DIRECTORS’ STATEMENT
The directors are pleased to present their statement to the members together with the audited
financial statements of the company and the balance sheet and statement of changes in equity for the
financial year ended 31 March 2017.
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 2017 and the financial performance, changes in equity and cash flows
of the Company and the Group for the financial year ended on that date;
ii) 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.
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
Dato’ LAU Eng Foo (Andy)
Dominic LIM Kian Gam
(Independent Non-Executive Director, Chairman)
(Executive Director)
(Independent Non-Executive Director)
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 01.04.16
At 31.03.2017
At 01.04.16
At 31.03.2017
Dato’ LAU Eng Foo (Andy)
-
1
-
39,000,000
39,000,000
20
21
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITEDCORPORATE GOVERNANCE STATEMENTUpdated 19 July 2017PrincipleNo.RecommendationCompliance or Reason for Non-compliancethe level and composition of remuneration for directors and senior executives and ensuring that such remuneration is appropriate and not excessive.The remuneration of the managing director is set out his employment contract and its terms disclosed in the prospectus. Pending achievement of certain performance milestone, which as of the date of this statement has not been achieved, the managing director has agreed not to receive this remuneration. Under Singapore law, directors’ fees are subject to approval by shareholders at an annual general meeting.The managing director sets and determines the remuneration for senior executives and hedoes so having regard to prevailing levels paid to executives performing similar roles at comparable companies. Where the remuneration intended to be offered to any senior executive is materially more than such comparable levels, the managing director is required to obtain prior approval from the board before making such an offer.8.2A listed entity should separately disclose its policies and practices regarding the remuneration of non-executive directors and the remuneration of executive directors and other senior executives.The Company does not comply in full with this Recommendation. The Company does not have a formal policy regarding the remuneration of non-executive directors and the remuneration of executive directors and other senior executives. The current practice in relation to this is set out in the explanation to the Company’s adoption of Principal 8.1 above.8.3A listed entity which has an equity-based remuneration scheme should:(a)have a policy on whether participants are permitted to enter into transactions (whether through the use of derivatives or otherwise) which limit the economic risk of participating in the scheme; and(b)disclose that policy or a summary of it.This Recommendation is not applicable as the Company does not have an equity-based remuneration scheme.Page 11
Directors’ Statement
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
SHARE OPTIONS
Report on the Audit of the Financial Statements
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.
INDEPENDENT AUDITOR
The independent auditor, MGI SINGAPORE PAC have expressed their willingness to accept re-
appointment.
On behalf of the Board of Directors
...........................................................................
Dato’ LAU Eng Foo (Andy)
Executive Director
...........................................................................
Ir Che Mohamed Hussein Bin Mohamed Shariff
Independent Non-Executive Chairman
Dated: 13 June 2017
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ASAPLUS RESOURCES LIMITED
Opinion
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 2017, 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 notes to the financial statements, including a summary of significant
accounting policies and other explanatory information.
In our opinion, the accompanying financial statements of the Company are properly drawn up in
accordance with the provisions of the Companies Act, Chapter 50 (the Act) and Financial Reporting
Standards in Singapore (FRSs) so as to give a true and fair view of the financial position of the
Company as at 31 March 2017.
Basis for Opinion
We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional
Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code) together with the
ethical requirements that are relevant to our audit of the financial statements in Singapore, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA
Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Other information
Management is responsible for the other information. The other information comprises the Directors’
Statement set out on pages 1 and 2.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in
this regard.
Responsibility of management and directors for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with the provisions of the 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.
22
2
3
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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.
The independent auditor, MGI SINGAPORE PAC have expressed their willingness to accept re-
INDEPENDENT AUDITOR
appointment.
On behalf of the Board of Directors
...........................................................................
Dato’ LAU Eng Foo (Andy)
Executive Director
...........................................................................
Ir Che Mohamed Hussein Bin Mohamed Shariff
Independent Non-Executive Chairman
Dated: 13 June 2017
SHARE OPTIONS
Report on the Audit of the Financial Statements
Independent Auditor ‘s Report
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ASAPLUS RESOURCES LIMITED
Opinion
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 2017, 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 notes to the financial statements, including a summary of significant
accounting policies and other explanatory information.
In our opinion, the accompanying financial statements of the Company are properly drawn up in
accordance with the provisions of the Companies Act, Chapter 50 (the Act) and Financial Reporting
Standards in Singapore (FRSs) so as to give a true and fair view of the financial position of the
Company as at 31 March 2017.
Basis for Opinion
We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional
Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code) together with the
ethical requirements that are relevant to our audit of the financial statements in Singapore, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA
Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Other information
Management is responsible for the other information. The other information comprises the Directors’
Statement set out on pages 1 and 2.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in
this regard.
Responsibility of management and directors for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with the provisions of the 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.
22
23
2
3
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Independent Auditor ‘s Report
INDEPENDENT AUDITOR’S REPORT
-Continued
INDEPENDENT AUDITOR’S REPORT
-Continued
TO THE MEMBERS OF ASAPLUS RESOURCES LIMITED
TO THE MEMBERS OF ASAPLUS RESOURCES LIMITED
Responsibilities of Management and Directors for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with the provisions of the Act and FRSs, and for devising and maintaining a system of
internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded
against loss from unauthorised use or disposition; and transactions are properly authorised and that
they are recorded as necessary to permit the preparation of true and fair financial statements and to
maintain accountability of assets.
Responsibilities of Management and Directors for the Financial Statements - continued
In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the Company’s financial reporting process.
Auditors’ Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SSAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
"
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
"
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
"
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
"
"
Auditors’ responsibility for the Audit of the Financial Statements (cont’d)
Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Company to express an opinion on the audited financial
statements. We are responsible for the direction, supervision and performance of the audit.
We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the Company
incorporated in Singapore of which we are the auditors have been properly kept in accordance with
The engagement partner on the audit resulting in this independent auditor’s report is Ramachandran
the provisions of the Act.
Sri Kumar.
Singapore, 13 June 2017
MGI SINGAPORE PAC
Chartered Accountants and
Public Accountant of Singapore
24
4
5
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
INDEPENDENT AUDITOR’S REPORT
-Continued
INDEPENDENT AUDITOR’S REPORT
-Continued
TO THE MEMBERS OF ASAPLUS RESOURCES LIMITED
TO THE MEMBERS OF ASAPLUS RESOURCES LIMITED
Independent Auditor ‘s Report
Responsibilities of Management and Directors for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with the provisions of the Act and FRSs, and for devising and maintaining a system of
internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded
against loss from unauthorised use or disposition; and transactions are properly authorised and that
they are recorded as necessary to permit the preparation of true and fair financial statements and to
maintain accountability of assets.
Responsibilities of Management and Directors for the Financial Statements - continued
In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the Company’s financial reporting process.
Auditors’ Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with SSAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
"
"
"
Auditors’ responsibility for the Audit of the Financial Statements (cont’d)
"
Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
"
Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Company to express an opinion on the audited financial
statements. We are responsible for the direction, supervision and performance of the audit.
We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the Company
incorporated in Singapore of which we are the auditors have been properly kept in accordance with
the provisions of the Act.
The engagement partner on the audit resulting in this independent auditor’s report is Ramachandran
Sri Kumar.
Singapore, 13 June 2017
MGI SINGAPORE PAC
Chartered Accountants and
Public Accountant of Singapore
24
25
4
5
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Statement Of Financial Position
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2017
The Company
The Group
Note
31.3.2017
31.3.2016
31.3.2017
31.3.2016
$
$
$
$
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
7
8
9
11
10
12
13
3,228,917
11,914
-
3,228,917
260,799
44
-
727,568
298,601
-
1,875,364
216,254
3,240,831
3,489,760
1,026,169
2,091,618
-
-
-
9,593,999
-
-
-
10,001,719
343,840
990,334
-
-
105,112
816,160
-
-
Total non-current assets
9,593,999
10,001,719
1,334,174
921,272
TOTAL ASSETS
12,834,830
13,491,479
2,360,343
3,012,890
Equity
Share capital
Accumulated loss
Foreign currency translation reserves
Non-controlling interest
14
Total equity
Liabilities
14,057,100
(1,474,956)
-
-
14,057,100
(741,218)
-
-
14,057,100
(14,162,976)
1,671,918
(451,902)
14,057,100
(12,991,445)
1,043,130
(246,234)
12.582,144
13.315,882
1,114,140
1,980,776
Current Liabilities
Other payables
Amount due to subsidiary
Total liabilities/current liabilities
15
8
122,329
130,357
252,686
45,240
130,357
175,597
1,246,203
-
1,032,114
-
1,246,203
1,032,114
TOTAL EQUITY AND LIABILITIES
12,834,830
13,491,479
2,360,343
3,012,890
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2017
$
2016
$
Note
16
17
Revenue
Cost of sales
Gross profit
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other income +64,890
Selling and distribution expenses 341091+145122
Administrative expenses
Other expenses 233232+10558+64890
Impairment of evaluation asset
Impairment in value of subsidiaries
Bad debts
Loss before tax
Income tax expense
Loss for the financial year
551,103
(402,226)
(308,680)
(1,281,397)
16,280
(3,548)
(423,910)
(195,920)
(407,720)
(336,928)
18
20
(1,351,746)
(1,441,200)
(7,791)
(1,351,746)
(1,448,991)
Exchange differences on translation of foreign controlled
entities
-
Total comprehensive loss for the financial year
(1,351,746)
(1,448,991)
Attributable to:
Non-controlling interests
Owners of the Company
Loss Per Share (Cents)
Basic Loss Per Share
Diluted Loss Per Share
(55,263)
(1,296,483)
(1,448,991)
21
21
(0.01)
(0.01)
(0.01)
(0.01)
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
26
6
accompanying notes.
7
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
Consolidated Statement Of Comprehensive Income
The Company
The Group
Note
31.3.2017
31.3.2016
31.3.2017
31.3.2016
$
$
$
$
3,228,917
11,914
3,228,917
260,799
44
-
727,568
298,601
-
1,875,364
216,254
3,240,831
3,489,760
1,026,169
2,091,618
Assets
Current Assets
Amount due from subsidiaries
Other receivables
Cash and bank balances
Non-Current Assets
Plant and equipment
Exploration and evaluation assets
Goodwill
7
8
9
11
10
12
13
Investment in subsidiaries
9,593,999
10,001,719
Total non-current assets
9,593,999
10,001,719
1,334,174
921,272
TOTAL ASSETS
12,834,830
13,491,479
2,360,343
3,012,890
-
-
-
343,840
990,334
105,112
816,160
-
-
-
-
Equity
Share capital
Accumulated loss
Total equity
Liabilities
12.582,144
13.315,882
1,114,140
1,980,776
Current Liabilities
Other payables
Amount due to subsidiary
Total liabilities/current liabilities
15
8
122,329
130,357
252,686
45,240
130,357
175,597
1,246,203
1,032,114
-
-
1,246,203
1,032,114
TOTAL EQUITY AND LIABILITIES
12,834,830
13,491,479
2,360,343
3,012,890
-
-
-
-
-
-
Revenue
Cost of sales
Gross profit
Other income +64,890
Selling and distribution expenses 341091+145122
Administrative expenses
Other expenses 233232+10558+64890
Impairment of evaluation asset
Impairment in value of subsidiaries
Bad debts
Loss before tax
Income tax expense
Loss for the financial year
Note
16
17
2017
$
2016
$
-
-
-
16,280
(3,548)
(423,910)
(195,920)
-
(407,720)
(336,928)
-
-
-
551,103
-
(402,226)
(308,680)
(1,281,397)
-
-
18
20
(1,351,746)
(1,441,200)
-
(7,791)
(1,351,746)
(1,448,991)
Foreign currency translation reserves
Non-controlling interest
-
-
1,671,918
(451,902)
1,043,130
(246,234)
-
Total comprehensive loss for the financial year
(1,351,746)
(1,448,991)
14
14,057,100
(1,474,956)
14,057,100
14,057,100
14,057,100
(741,218)
(14,162,976)
(12,991,445)
Exchange differences on translation of foreign controlled
entities
-
-
Attributable to:
Non-controlling interests
Owners of the Company
Loss Per Share (Cents)
Basic Loss Per Share
Diluted Loss Per Share
(55,263)
-
(1,296,483)
(1,448,991)
21
21
(0.01)
(0.01)
(0.01)
(0.01)
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
26
27
6
7
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Consolidated Statement Of Changes In Equity
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
Note
2017
$
2016
$
2017
Accumulated
losses
attributable to
Owners of the
Company
Share
capital
losses
attributa
ble to
Non-
Controll-
ing
Interest
Non-
Controll-
ing
Interest
Foreign
currency
translation
reserve
Total equity
$
$
$
$
$
$
At 1.04.2016
Loss for the year
Other comprehensive
income for the year
Non-Controlling
interest
14,057,100
(12,811,230)
-
-
-
(1,351,746)
-
-
Balance at 31.03.2017
14,057,100
(14,162,976)
-
-
-
-
-
981,140
(246,234)
1,980,776
690,778
(55,263)
(716,231)
-
-
-
-
(150,405)
(150,405)
1,671,918
(451,902)
1,114,140
Cash flow from operating activities
Loss before taxation
Adjustments for:
Depreciation of plant and equipment
Impairment of exploration and evaluation asset
Impairment of Goodwill
Impairment of subsidiaries
Bad debts
Foreign translation differences11,744-337907)
Operating cash flow before working capital changes
(Increase)/Decrease in other receivables
(Decrease)/Increase in other payables
Cash from operations
Tax paid
11
10
12
13
9
Accumulated
losses
attributable to
Owners of the
Company
Share
capital
losses
attributa
ble to
Non-
Controll-
ing
Interest
Foreign
currency
translation
reserve
Non-
Controll-
ing
Interest
Total equity
Net (decrease) in cash and bank balances
Net cash generated from/(used in) operating activities
557,145
(38,177)
Cash flows from investing activities
Exploration and evaluation expenditure
Purchase of plant and equipment
Loss on disposal of equipment
Net cash (used in) investing activities
10
11
(174,174)
(300,624)
$
$
$
$
$
$
Cash and bank balances at the beginning of the year
216,254
984,105
14,057,100
(11,362,239)
17,841
1,043,130
(8,394)
3,747,438
Cash and bank balances at the end of the year
7
298,601
216,254
2016
At 1.04.2015
Loss for the year
Other comprehensive
income for the year
Non-Controlling
interest (net)
-
-
-
(1,448,991)
(17,841)
(61,990)
-
-
(1,528,822)
-
-
(237,840)
(237,840)
981,140
(246,234)
1,980,776
-
-
-
-
-
Balance at 31.03.2016
14,057,100
(12,811,230)
(1,351,746)
(1,441,200)
43,354
51,204
1,281,397
407,720
336,928
187,182
(376,562)
1,147,797
(214,090)
933,707
-
-
-
-
-
-
-
(211,744)
(320,343)
(356,520)
725,043
48,180
(10,003)
(763,091)
3,105
(46,042)
(474,798)
(806,028)
82,347
(767,851)
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
8
9
28
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Consolidated Statement Of Cash Flows
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
Cash flow from operating activities
Loss before taxation
Adjustments for:
Depreciation of plant and equipment
Impairment of exploration and evaluation asset
Impairment of Goodwill
Impairment of subsidiaries
Bad debts
Foreign translation differences11,744-337907)
Operating cash flow before working capital changes
(Increase)/Decrease in other receivables
(Decrease)/Increase in other payables
Cash from operations
Tax paid
Note
2017
$
2016
$
11
10
12
13
9
(1,351,746)
(1,441,200)
43,354
-
-
407,720
336,928
187,182
(376,562)
1,147,797
(214,090)
933,707
-
51,204
1,281,397
-
-
-
(211,744)
(320,343)
(356,520)
725,043
48,180
(10,003)
Net cash generated from/(used in) operating activities
557,145
(38,177)
Cash flows from investing activities
Exploration and evaluation expenditure
Purchase of plant and equipment
Loss on disposal of equipment
Net cash (used in) investing activities
Net (decrease) in cash and bank balances
10
11
(174,174)
(300,624)
-
(763,091)
3,105
(46,042)
(474,798)
(806,028)
82,347
(767,851)
Cash and bank balances at the beginning of the year
216,254
984,105
Cash and bank balances at the end of the year
7
298,601
216,254
28
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
9
29
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
1.
CORPORATE INFORMATION
The financial statements of the Company and of the Group for the year ended 31 March
2017 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.
The directors authorised these financial statements for issue on 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 201. The adoption of these standards did not have any effect on the financial
performance or position of the Company and the group.
30
10
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
1.
CORPORATE INFORMATION
The financial statements of the Company and of the Group for the year ended 31 March
2017 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.
The directors authorised these financial statements for issue on 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 201. The adoption of these standards did not have any effect on the financial
performance or position of the Company and the group.
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
Standards issued but not yet effective
The Company adopted the following standards and interpretations that have been issued but
not yet effective:
.
Amendments to FRS 7 Disclosure Initiative
FRS 109
FRS 115
FRS 116
Financial Instruments
Revenue from Contracts with customers
Leases
Effective date
(annual periods
beginning on or
after)
1 January 2017
1 January 2018
1 January 2018
1 January 2019
Except for FRS 109, FRS 115 and FRS 116, the directors expect that the adoption of the other
standards above will have no material impact on the financial statements in the period of initial
application.
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.
30
31
10
11
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2. SIGNIFICANT ACCOUNTING POLICIES - Cont’d
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.2 Financial assets - continued
Subsequent measurement
The subsequent measurement of financial assets depend on their classification as
follows:
Loans and receivables
Non-derivative 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.
32
12
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2. SIGNIFICANT ACCOUNTING POLICIES - Cont’d
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.2 Financial assets - continued
Subsequent measurement
follows:
Loans and receivables
The subsequent measurement of financial assets depend on their classification as
Non-derivative 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.
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2. SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.3 Impairment of financial assets - continued
a)Financial assets carried at amortised cost - continued
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.
32
33
12
13
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2. SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2. SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.3 Impairment of financial assets - continued
2.4 Impairment of non-financial assets - continued
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
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.
34
14
15
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2. SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2. SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.3 Impairment of financial assets - continued
2.4 Impairment of non-financial assets - continued
Notes To The Financial Statements
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
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.
34
35
14
15
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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.
36
16
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2. SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.4 Summary of significant accounting policies – Cont’d
2.4 Summary of significant accounting policies – Cont’d
Notes To The Financial Statements
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
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
control.
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.
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 IAS 36 “Impairment of Assets” whenever
one of the following events or changes in facts and circumstances indicate that the
carrying amount may not be recoverable (the list is not exhaustive):
(a) the period for which the Group has the right to explore in the specific area has
expired during the period or will expire in the near future, and is not expected to be
recovered;
(b) substantive expenditure on further exploration for and evaluation of mineral
resources in the specific area is neither budgeted nor planned;
(c) exploration for and evaluation of mineral resources in the specific area have not
led to the discovery of commercially viable quantities of mineral resources and the
Group has decided to discontinue such activities in the specific area; or
(d) sufficient data exists to indicate that, although a development in the specific area
is likely to proceed, the carrying amount of the exploration and evaluation asset is
unlikely to be recovered in full from successful development or by sale.
An impairment loss is recognised in the income statement whenever the carrying
amount of an asset exceeds its recoverable amount.
36
37
16
17
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.4 Summary of significant accounting policies - Cont’d
2.4 Summary of significant accounting policies - Cont’d
Plant and equipment
less accumulated depreciation and
Plant and equipment are stated at cost
accumulated impairment losses, if any. Depreciation is computed utilizing the straight-
line method to write off the cost of these assets over their estimated useful lives as
follows:
Computer
Office equipment
Furniture and fittings
Motor vehicles
Machinery and Equipment
Construction in progress
Years
3
3
5
4
10
10
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.
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.
38
18
19
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.4 Summary of significant accounting policies - Cont’d
2.4 Summary of significant accounting policies - Cont’d
Notes To The Financial Statements
Notes To The Financial Statements
Plant and equipment
Plant and equipment are stated at cost
less accumulated depreciation and
accumulated impairment losses, if any. Depreciation is computed utilizing the straight-
line method to write off the cost of these assets over their estimated useful lives as
follows:
Computer
Office equipment
Furniture and fittings
Motor vehicles
Machinery and Equipment
Construction in progress
Years
3
3
5
4
10
10
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.
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.
38
39
18
19
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.4 Summary of significant accounting policies - Cont’d
Available-for-sale financial assets-Cont’d
The amount of the cumulative loss that is removed from equity and recognised in the
profit or loss shall be the difference between the acquisition cost (net of any principal
repayment and amortisation) and current fair value, less any impairment loss on that
financial asset previously recognised in the profit or loss.
Impairment losses recognised in the profit or loss for equity investments classified as
available-for-sale are not subsequently reversed through the profit or loss.
Objective evidence of impairment of individual financial assets includes observable
data that comes to the attention of the Group about one or more of the following loss
events:
- significant financial difficulty or probable bankruptcy of the investee;
- 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.
40
20
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.4 Summary of significant accounting policies - Cont’d
2.4 Summary of significant accounting policies - Cont’d
Notes To The Financial Statements
Notes To The Financial Statements
- significant financial difficulty or probable bankruptcy of the investee;
The measurement of financial liabilities depends on their classification as follows:
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
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.
Ordinary shares are classified as equity. Incremental costs directly attributable to the
issuance of new ordinary shares are deducted against the share capital account.
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.
40
41
20
21
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:
- 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
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
transaction price.
Cash and cash equivalents
risk of changes in value.
Share capital and treasury shares
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.
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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)
(ii)
It is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
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.
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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:
- 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.
42
22
23
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.4 Summary of significant accounting policies - Cont’d
Other payables are initially measured at fair value, and subsequently measured at
amortised costs, using the effective interest method.
Other payables
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)
(ii)
It is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
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.
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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:
-
- 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.
42
43
22
23
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.4 Summary of 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:
-
- 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.
The carrying amount of deferred income tax assets is reviewed at the end of the
reporting period and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of deferred income tax assets to be
utilised. Unrecognised deferred tax assets are reassessed at the end of the reporting
period and are recognised to the extent that is has become probable that future
taxable profit will allow the deferred tax asset to be utilized. Unrecognised deferred tax
assets are reassessed at the end of each reporting period and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply in the year when the asset is realized or the liability is settled, based on the tax
rates (and tax laws) that have been enacted or substantively enacted at the end of
each reporting period.
Deferred income tax relating to items recognised outside profit or loss is recognised
outside profit or loss. Deferred tax items are recognised in correlation to the underlying
transaction either in other comprehensive income or directly in equity and deferred tax
arising from a business combination is adjusted against goodwill on acquisition.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally
enforceable right exists to set off current income tax assets against current income tax
liabilities and the deferred income taxes relate to the same taxable entity and the same
taxation authority.
Employee benefits
Defined contribution plan
Retirement benefits to employees are provided through defined contribution plans, as
provided by the laws of the countries in which it has operations. The Singapore
incorporated companies in the Group contribute to the Central Provident Fund (“CPF”).
Such contribution are 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
the Group if:
For the purpose of these financial statements, a party is considered to be related to
(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;
(b) the Group and the party are subject to common control;
(c) the party is an associate of the Group or a joint venture in which the Group is a
venturer;
(d) 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;
(e) 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
(f) 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.
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.
44
24
25
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.4 Summary of significant accounting policies - Cont’d
2.4 Summary of significant accounting policies - Cont’d
Notes To The Financial Statements
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:
- 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.
The carrying amount of deferred income tax assets is reviewed at the end of the
reporting period and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of deferred income tax assets to be
utilised. Unrecognised deferred tax assets are reassessed at the end of the reporting
period and are recognised to the extent that is has become probable that future
taxable profit will allow the deferred tax asset to be utilized. Unrecognised deferred tax
assets are reassessed at the end of each reporting period and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply in the year when the asset is realized or the liability is settled, based on the tax
rates (and tax laws) that have been enacted or substantively enacted at the end of
each reporting period.
Deferred income tax relating to items recognised outside profit or loss is recognised
outside profit or loss. Deferred tax items are recognised in correlation to the underlying
transaction either in other comprehensive income or directly in equity and deferred tax
arising from a business combination is adjusted against goodwill on acquisition.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally
enforceable right exists to set off current income tax assets against current income tax
liabilities and the deferred income taxes relate to the same taxable entity and the same
taxation authority.
Employee benefits
Defined contribution plan
Retirement benefits to employees are provided through defined contribution plans, as
provided by the laws of the countries in which it has operations. The Singapore
incorporated companies in the Group contribute to the Central Provident Fund (“CPF”).
Such contribution are 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;
(b) the Group and the party are subject to common control;
(c) the party is an associate of the Group or a joint venture in which the Group is a
venturer;
(d) 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;
(e) 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
(f) 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.
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.
44
45
24
25
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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.
46
26
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
2.4 Summary of significant accounting policies - Cont’d
2.4 Summary of significant accounting policies - Cont’d
Notes To The Financial Statements
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.
flows.
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
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.
Impairment of non-financial assets - Cont’d
With the exception of goodwill, an impairment loss is
• 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.
46
47
26
27
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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) Income and expenses are translated at average exchange rates; and
(iii)All resulting currency translation differences are recognised in other comprehensive
income and accumulated in the currency translation reserve.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are
treated as assets and liabilities of the foreign operations and translated at the closing
rates at the end of reporting period.
3. 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.
48
28
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
2.
SIGNIFICANT ACCOUNTING POLICIES - Cont’d
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
Notes To The Financial Statements
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) Income and expenses are translated at average exchange rates; and
(iii)All resulting currency translation differences are recognised in other comprehensive
income and accumulated in the currency translation reserve.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are
treated as assets and liabilities of the foreign operations and translated at the closing
rates at the end of reporting period.
3. 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.
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.
48
49
28
29
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
5.
FINANCIAL INSTRUMENT, FINANCIAL RISKS AND CAPITAL RISKS ARRANGEMENT-
UNCERTAINTY – Con’t
(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.
50
30
31
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
RISK MANAGEMENT -continued
Credit Risks -continued
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.
The Company and the group is exposed to any market risks.
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
Market risks
Liquidity risk
cash.
Foreign currency risk
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
2017
$
2016
$
Salaries and other short-term employee benefits
24,645
27,726
There are no other key management personnel other than Directors of the Company and it’s
subsidiaries.
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
5.
FINANCIAL INSTRUMENT, FINANCIAL RISKS AND CAPITAL RISKS ARRANGEMENT-
RISK MANAGEMENT -continued
Notes To The Financial Statements
Credit Risks -continued
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
.
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
2017
$
2016
$
Salaries and other short-term employee benefits
24,645
27,726
There are no other key management personnel other than Directors of the Company and it’s
subsidiaries.
The Group policy on capitalization of all future expenditure relating to exploration and evaluation
The Group has assessed that the capitalized expenditure will be recoverable through the
UNCERTAINTY – Con’t
(iv)Exploration and evaluation expenditure
of the Tenement located in Beikeng Mine.
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.
50
51
30
31
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
7.
AMOUNT DUE FROM/TO SUBSIDIARIES
The amounts due from/to subsidiaries are non-trade in nature, interest-free, unsecured,
repayable on demand when the company’s financial position permits and are denominated in
Australian dollars.
8.
OTHER RECEIVABLES
Other receivables-third parties
Prepayment – related parties
Prepayment – third parties
Tax Recoverable
The Company
The Group
2017
$
2016
$
2017
$
2016
$
248,885
-
11,914
-
248,885
-
11,914
-
664,671
-
49,872
13,124
1,767,157
-
108,207
-
260,799
260,799
727,567
1,875,364
Other receivables are denominated in the following currencies:
The Company
The Group
2017
$
2016
$
2017
$
2016
$
248,885
11,914
248,885
11,914
-
727,567
248,885
1,626,480
260,799
260,799
727,567
1,875,365
Australian Dollar
Chinese Renminbi
9.
CASH AND BANK BALANCES
Cash and cash at bank
-
44
298,601
216,254
The Company
The Group
2017
$
2016
$
2017
$
2016
$
52
32
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
7.
AMOUNT DUE FROM/TO SUBSIDIARIES
9.
CASH AND BANK BALANCES - Con’t
The amounts due from/to subsidiaries are non-trade in nature, interest-free, unsecured,
repayable on demand when the company’s financial position permits and are denominated in
Australian dollars.
Cash and bank balances are denominated in the following currencies:
Notes To The Financial Statements
8.
OTHER RECEIVABLES
Other receivables-third parties
Prepayment – related parties
Prepayment – third parties
Tax Recoverable
Australian Dollar
Chinese Renminbi
9.
CASH AND BANK BALANCES
Other receivables are denominated in the following currencies:
The Company
The Group
2017
$
2016
$
2017
$
2016
$
248,885
248,885
664,671
1,767,157
11,914
11,914
-
-
-
-
-
49,872
13,124
108,207
-
-
260,799
260,799
727,567
1,875,364
The Company
The Group
2017
$
2016
$
2017
$
2016
$
248,885
11,914
248,885
11,914
-
248,885
727,567
1,626,480
260,799
260,799
727,567
1,875,365
Cash and cash at bank
-
44
298,601
216,254
The Company
The Group
2017
$
2016
$
2017
$
2016
$
Australian Dollar
Chinese Renminbi
Hong Kong Dollar
The Company
The Group
2017
$
2016
$
2017
$
2016
$
-
-
-
-
44
-
-
44
12,500
286,101
-
44
215,761
449
298,601
216,254
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.
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
Impairment of evaluation asset – Silverstone Project
-
- Foreign exchange differences
- Expenditure incurred in the year - Beikeng Mine
Balance at end of the period
Movements in provision for impairment are as follows:-
Silverstone Project
Balance at beginning of financial year
Impairment during the financial year
Balance at end of financial year
2017
$
2016
$
816,160
-
-
174,174
990,334
1,334,466
(1,281,397)
(53,070)
816,161
816,160
2017
$
2016
$
1,281,397
-
-
1,281,397
1,281,397
1,281,397
52
53
32
33
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
10. EXPLORATION AND EVALUATION ASSETS – Con’t
As disclosed in Note 2, the carrying amount of the exploration and evaluation assets is
reviewed annually and adjusted for impairment in accordance with IAS 36 “Impairment of
Assets”. In particular, the Company considered whether one of the following events or
changes in facts and circumstances (each an “Adverse Event”) has occurred which indicate
that the carrying amount may not be recoverable:
(a)
(b)
(c)
(d)
the period for which the Group has the right to explore in the Beikeng Mine has
expired during the period or will expire in the near future, and is not expected to be
recovered;
substantive expenditure on further exploration for and evaluation of mineral resources
in the Beikeng Mine is neither budgeted nor planned;
exploration for and evaluation of mineral resources in the Beikeng Mine have not led
to the discovery of commercially viable quantities of mineral resources and the Group
has decided to discontinue such activities in the Beikeng Mine; or
sufficient data exists to indicate that, although a development in the Beikeng Mine 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.
54
34
2
1
1
,
5
0
1
-
0
4
8
,
3
4
3
5
1
3
,
6
3
2
5
8
6
,
8
5
l
a
t
o
T
$
5
0
1
,
3
5
3
1
,
1
2
3
)
6
3
6
,
3
2
1
(
)
5
5
0
,
1
(
9
4
5
,
9
9
1
4
2
5
.
0
0
3
)
6
1
7
,
5
2
(
7
5
3
.
4
7
4
2
8
8
,
1
2
1
4
0
2
,
1
5
)
9
3
4
,
3
7
(
)
0
1
2
,
5
(
7
3
4
,
4
9
4
5
3
,
3
4
)
4
7
2
,
7
(
7
1
5
,
0
3
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
1
3
,
6
3
2
5
1
3
,
6
3
2
9
0
2
,
4
6
)
1
9
6
,
2
(
8
1
5
,
1
6
-
-
-
-
-
-
-
-
5
0
7
)
7
1
(
8
8
6
)
3
4
(
8
8
1
,
2
3
3
8
,
2
5
0
1
,
3
2
8
1
,
1
0
3
)
5
9
2
,
1
1
(
)
6
3
6
,
3
2
1
(
6
5
3
,
9
6
1
-
-
)
8
4
6
,
0
1
(
8
0
7
,
8
5
1
4
7
6
,
1
1
1
2
5
9
,
5
4
)
9
3
4
,
3
7
(
)
3
0
6
,
4
(
4
8
5
,
9
7
1
8
9
,
8
3
)
9
6
2
,
6
(
6
9
2
,
2
1
1
2
1
4
,
6
4
2
7
7
,
9
8
-
-
-
-
)
8
0
5
(
3
4
2
,
0
1
)
4
4
6
(
9
9
5
,
9
6
1
4
,
4
0
9
9
,
1
-
)
6
5
2
(
0
5
1
,
6
1
8
8
,
1
)
8
4
4
(
3
8
5
,
7
6
1
0
,
2
3
9
0
,
4
-
-
-
-
3
3
0
,
1
1
8
8
1
,
4
1
)
5
8
2
(
2
6
7
,
5
7
1
8
,
2
)
1
7
3
,
1
1
(
)
2
6
3
(
0
0
4
,
5
-
-
-
-
9
6
7
,
1
-
1
3
9
)
6
0
1
(
4
9
5
,
2
3
5
2
)
1
7
1
(
6
7
6
,
2
3
2
0
,
4
6
2
6
,
1
-
)
8
2
2
(
1
2
4
,
5
1
5
)
3
4
3
(
9
2
1
,
5
1
4
1
6
0
9
,
0
1
1
7
2
1
4
3
t
n
e
m
n
g
i
l
a
e
r
y
c
n
e
r
r
u
C
t
n
e
m
n
g
i
l
a
e
r
y
c
n
e
r
r
u
C
7
1
0
2
.
3
0
.
1
3
t
a
s
A
6
1
0
2
.
3
0
.
1
3
t
a
s
A
n
o
i
t
a
c
i
f
i
s
s
a
l
c
e
R
s
n
o
i
t
i
d
d
A
5
1
0
2
.
3
0
.
1
3
t
a
s
A
:
T
S
O
C
s
n
o
i
t
i
d
d
A
s
l
a
s
o
p
s
i
D
r
a
e
y
e
h
t
r
o
f
n
o
i
t
a
i
c
e
r
p
e
D
t
n
e
m
n
g
i
l
a
e
r
y
c
n
e
r
r
u
C
s
l
a
s
o
p
s
i
D
5
1
0
2
.
3
0
.
1
3
t
a
s
A
r
a
e
y
e
h
t
r
o
f
n
o
i
t
a
i
c
e
r
p
e
D
t
n
e
m
n
g
i
l
a
e
r
y
c
n
e
r
r
u
C
7
1
0
2
.
3
0
.
1
3
t
a
s
A
6
1
0
2
.
3
0
.
1
3
t
a
s
A
n
o
i
t
a
c
i
f
i
s
s
a
l
c
e
R
:
E
U
L
A
V
G
N
I
Y
R
R
A
C
7
1
0
2
.
3
0
.
1
3
t
a
s
A
6
1
0
2
.
3
0
.
1
3
t
a
s
A
:
N
O
I
T
A
I
C
E
R
P
E
D
D
E
T
A
L
U
M
U
C
C
A
o
i
t
c
u
r
t
s
n
o
C
y
r
e
n
i
h
c
a
M
n
i
n
$
d
n
a
$
d
n
a
e
r
u
t
i
n
r
u
F
e
c
i
f
f
O
$
$
$
$
1
5
7
,
0
1
5
5
1
,
3
7
4
0
,
6
s
s
e
r
g
o
r
p
t
n
e
m
p
i
u
q
E
e
l
c
i
h
e
v
r
o
t
o
M
s
g
n
i
t
t
i
F
t
n
e
m
p
i
u
q
E
r
e
t
u
p
m
o
C
p
u
o
r
G
e
h
T
S
E
I
R
A
I
D
I
S
B
U
S
S
T
I
D
N
A
D
E
T
I
M
I
L
S
E
C
R
U
O
S
E
R
S
U
L
P
A
S
A
7
1
0
2
H
C
R
A
M
1
3
D
E
D
N
E
R
A
E
Y
L
A
I
C
N
A
N
I
F
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
T
N
E
M
P
I
U
Q
E
D
N
A
T
N
A
L
P
.
1
1
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
10. EXPLORATION AND EVALUATION ASSETS – Con’t
As disclosed in Note 2, the carrying amount of the exploration and evaluation assets is
reviewed annually and adjusted for impairment in accordance with IAS 36 “Impairment of
Assets”. In particular, the Company considered whether one of the following events or
changes in facts and circumstances (each an “Adverse Event”) has occurred which indicate
that the carrying amount may not be recoverable:
(a)
the period for which the Group has the right to explore in the Beikeng Mine 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 Beikeng Mine is neither budgeted nor planned;
(c)
exploration for and evaluation of mineral resources in the Beikeng Mine have not led
to the discovery of commercially viable quantities of mineral resources and the Group
has decided to discontinue such activities in the Beikeng Mine; or
(d)
sufficient data exists to indicate that, although a development in the Beikeng Mine 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.
54
34
Notes To The Financial Statements
l
a
t
o
T
$
5
0
1
,
3
5
3
1
,
1
2
3
)
6
3
6
,
3
2
1
(
)
5
5
0
,
1
(
9
4
5
,
9
9
1
4
2
5
.
0
0
3
)
6
1
7
,
5
2
(
7
5
3
.
4
7
4
2
8
8
,
1
2
1
4
0
2
,
1
5
)
9
3
4
,
3
7
(
)
0
1
2
,
5
(
7
3
4
,
4
9
4
5
3
,
3
4
)
4
7
2
,
7
(
7
1
5
,
0
3
1
-
-
-
-
-
-
-
-
-
-
-
-
-
5
1
3
,
6
3
2
5
1
3
,
6
3
2
9
0
2
,
4
6
)
1
9
6
,
2
(
8
1
5
,
1
6
-
-
-
-
-
-
-
-
-
-
5
0
7
)
7
1
(
8
8
6
)
3
4
(
8
8
1
,
2
3
3
8
,
2
2
1
1
,
5
0
1
-
-
0
4
8
,
3
4
3
5
1
3
,
6
3
2
5
8
6
,
8
5
5
0
1
,
3
2
8
1
,
1
0
3
)
5
9
2
,
1
1
(
)
6
3
6
,
3
2
1
(
6
5
3
,
9
6
1
-
-
)
8
4
6
,
0
1
(
8
0
7
,
8
5
1
4
7
6
,
1
1
1
2
5
9
,
5
4
)
9
3
4
,
3
7
(
)
3
0
6
,
4
(
4
8
5
,
9
7
1
8
9
,
8
3
)
9
6
2
,
6
(
6
9
2
,
2
1
1
2
1
4
,
6
4
2
7
7
,
9
8
1
5
7
,
0
1
5
5
1
,
3
7
4
0
,
6
-
-
)
8
0
5
(
3
4
2
,
0
1
-
-
)
4
4
6
(
9
9
5
,
9
6
1
4
,
4
0
9
9
,
1
-
)
6
5
2
(
0
5
1
,
6
1
8
8
,
1
)
8
4
4
(
3
8
5
,
7
6
1
0
,
2
3
9
0
,
4
-
-
-
-
3
3
0
,
1
1
8
8
1
,
4
1
7
1
8
,
2
)
1
7
3
,
1
1
(
9
6
7
,
1
-
1
3
9
)
6
0
1
(
4
9
5
,
2
3
5
2
)
1
7
1
(
6
7
6
,
2
-
-
-
-
)
5
8
2
(
2
6
7
,
5
)
2
6
3
(
0
0
4
,
5
3
2
0
,
4
6
2
6
,
1
-
)
8
2
2
(
1
2
4
,
5
1
5
)
3
4
3
(
9
2
1
,
5
1
4
1
6
0
9
,
0
1
1
7
2
1
4
3
5
1
0
2
.
3
0
.
1
3
t
a
s
A
s
n
o
i
t
i
d
d
A
:
T
S
O
C
l
s
a
s
o
p
s
D
i
:
I
I
N
O
T
A
C
E
R
P
E
D
D
E
T
A
L
U
M
U
C
C
A
r
a
e
y
e
h
t
r
o
f
n
o
i
t
a
c
e
r
p
e
D
i
5
1
0
2
.
3
0
.
1
3
t
a
s
A
t
n
e
m
n
g
i
l
a
e
r
y
c
n
e
r
r
u
C
t
n
e
m
n
g
i
l
a
e
r
y
c
n
e
r
r
u
C
7
1
0
2
.
3
0
.
1
3
t
a
s
A
6
1
0
2
.
3
0
.
1
3
t
a
s
A
n
o
i
t
a
c
i
f
i
s
s
a
c
e
R
l
s
n
o
i
t
i
d
d
A
l
s
a
s
o
p
s
D
i
t
n
e
m
n
g
i
l
a
e
r
y
c
n
e
r
r
u
C
6
1
0
2
.
3
0
.
1
3
t
a
s
A
n
o
i
t
a
c
i
f
i
s
s
a
c
e
R
l
r
a
e
y
e
h
t
r
o
f
n
o
i
t
a
c
e
r
p
e
D
i
t
n
e
m
n
g
i
l
a
e
r
y
c
n
e
r
r
u
C
7
1
0
2
.
3
0
.
1
3
t
a
s
A
:
E
U
L
A
V
G
N
Y
R
R
A
C
I
7
1
0
2
.
3
0
.
1
3
t
a
s
A
6
1
0
2
.
3
0
.
1
3
t
a
s
A
55
o
i
t
c
u
r
t
s
n
o
C
i
y
r
e
n
h
c
a
M
n
i
n
d
n
a
d
n
a
e
r
u
t
i
n
r
u
F
e
c
i
f
f
O
$
$
$
$
$
$
s
s
e
r
g
o
r
p
t
n
e
m
p
u
q
E
i
e
l
c
i
h
e
v
r
o
t
o
M
s
g
n
i
t
t
i
F
t
n
e
m
p
u
q
E
i
r
e
t
u
p
m
o
C
p
u
o
r
G
e
h
T
I
T
N
E
M
P
U
Q
E
D
N
A
T
N
A
L
P
.
1
1
7
1
0
2
H
C
R
A
M
1
3
D
E
D
N
E
R
A
E
Y
L
A
C
N
A
N
F
E
H
T
R
O
F
I
I
I
S
T
N
E
M
E
T
A
T
S
L
A
C
N
A
N
F
E
H
T
O
T
S
E
T
O
N
I
I
I
I
S
E
R
A
D
S
B
U
S
S
T
I
I
I
D
N
A
D
E
T
M
L
S
E
C
R
U
O
S
E
R
S
U
L
P
A
S
A
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
12.
GOODWILL
Goodwill
Less: Impairment in value 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
2017
$
2016
$
-
-
-
-
-
-
2017
$
2016
$
9,988,661
9,988,661
-
-
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
Unquoted equity investments, at cost
Less: Impairment in value
2017
$
2016
$
10,001,719
(407,720)
9,593,999
10,001,719
-
10,001,719
56
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
13.
INVESTMENT IN SUBSIDIARIES - Continued
The consolidated financial statements include the financial statements of Asaplus Resources
Limited and its subsidiaries listed in the following table.
Name of subsidiary
business
held by the Group
Company
ion and
Effective equity
Cost of investment by the
Country of
incorporat-
Principal
activities
2017
2016
%
%
2017
$
2016
$
Held by the Company
Yong Heng Investment Limited
Investment
Asaplus Ventures Limited
(“Ventures”)
Consulting
services
Held by Ventures
(“Yong Heng”)
holding
Hong Kong
100
100
10,000,291
10,000,291
Hong Kong
100
100
1,428
1,428
Xiamen Rongyao Xuhui Investment
Consulting
services
China
100
100
Consulting
services
China
100
100
Datian Huixiang Investments
Consulting Co., Ltd (“DHIC”)
Consulting
services
China
100
100
Consulting Co., Ltd
Held by Yong Heng
Yinzhou Consulting Co., Ltd
(“ Yinzhou”)
Held by Yinzhou
Held through DHIC
Datian Silverstone Mining Co., Ltd
(“DSM”)
Held by DHIC
Hong Ji Mining Co., Ltd(a,b)
Yinzhou Mining Co., Ltd(c)
-
-
-
-
-
-
-
-
-
-
-
-
10,001,719
10,001,719
China
100
100
China
80
-
China
-
51
Exploration,
mining and
marketing of
iron ore
Exploration,
mining and
marketing of
iron ore
Exploration,
mining and
marketing of
iron ore
37
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
12.
GOODWILL
Goodwill
Less: Impairment in value 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
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
Unquoted equity investments, at cost
Less: Impairment in value
2017
$
2016
$
-
-
-
-
-
-
2017
$
2016
$
9,988,661
9,988,661
-
-
9,988,661
9,988,661
2017
$
2016
$
10,001,719
10,001,719
(407,720)
9,593,999
-
10,001,719
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
13.
INVESTMENT IN SUBSIDIARIES - Continued
The consolidated financial statements include the financial statements of Asaplus Resources
Limited and its subsidiaries listed in the following table.
Name of subsidiary
Country of
incorporat-
ion and
business
Principal
activities
Effective equity
held by the Group
Cost of investment by the
Company
2017
2016
%
%
2017
$
2016
$
Held by the Company
Yong Heng Investment Limited
(“Yong Heng”)
Asaplus Ventures Limited
(“Ventures”)
Held by Ventures
Investment
holding
Consulting
services
Hong Kong
100
100
10,000,291
10,000,291
Hong Kong
100
100
1,428
1,428
Xiamen Rongyao Xuhui Investment
Consulting Co., Ltd
Consulting
services
China
100
100
Held by Yong Heng
Yinzhou Consulting Co., Ltd
(“ Yinzhou”)
Consulting
services
China
100
100
Held by Yinzhou
Datian Huixiang Investments
Consulting Co., Ltd (“DHIC”)
Consulting
services
China
100
100
Held through DHIC
Datian Silverstone Mining Co., Ltd
(“DSM”)
Held by DHIC
Hong Ji Mining Co., Ltd(a,b)
Yinzhou Mining Co., Ltd(c)
China
100
100
China
80
-
China
-
51
Exploration,
mining and
marketing of
iron ore
Exploration,
mining and
marketing of
iron ore
Exploration,
mining and
marketing of
iron ore
37
-
-
-
-
-
-
-
-
-
-
-
-
10,001,719
10,001,719
56
57
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
13.
INVESTMENT IN SUBSIDIARIES - Cont’d
The Company's wholly owned subsidiary Datian Huixiang Investments Consulting Co.,
Ltd(“Datian Huixiang”):
During the financial year, Datian HuiXiang increased the paid up capital of it’s subsidiary
Hongji Mining by RMB 3,800,000 (A$752,024).
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.
During the prior financial year, 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.
(a)
(b)
(c)
The subsidiaries of the Company are audited by MGI Singapore PAC.
14.
SHARE CAPITAL
The Group
2017
2016
Number of
shares
$
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
The Company
The Group
2017
$
2016
$
2017
$
2016
$
48,986
-
3,838
69,505
23,330
-
-
21,910
414,335
-
762,363
69,506
23,330
-
986,874
21,910
122,329
45,240 1,246,204
1,032,114
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
15. OTHER PAYABLES - continued
Other payables are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
16.
REVENUE
The Company does not have any revenue.
17. OTHER INCOME
g
gg
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 Company
The Group
2016
$
2016
$
2016
$
2016
$
122,329
-
45,240
-
582,389
663,815
1,032,114
-
122,329
45,240 1,246,204
1,032,114
The Group
2017
$
2016
$
2,889
666
12,280
16,280
549,651
1,532
-
551,103
The Group
2017
$
2016
$
336,928
175,490
43,354
-
37,120
158,699
51,204
10,557
*Amounts are non-trade in nature, unsecured, interest-free and repayable on demand.
38
39
58
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
13.
INVESTMENT IN SUBSIDIARIES - Cont’d
The Company's wholly owned subsidiary Datian Huixiang Investments Consulting Co.,
Ltd(“Datian Huixiang”):
(a)
During the financial year, Datian HuiXiang increased the paid up capital of it’s subsidiary
Hongji Mining by RMB 3,800,000 (A$752,024).
(b)
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.
(c)
During the prior financial year, 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.
The subsidiaries of the Company are audited by MGI Singapore PAC.
14.
SHARE CAPITAL
The Group
2017
2016
Number of
shares
$
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
The Company
The Group
2017
$
2016
$
2017
$
2016
$
48,986
23,330
414,335
23,330
-
3,838
69,505
-
-
-
762,363
69,506
21,910
-
986,874
21,910
122,329
45,240 1,246,204
1,032,114
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
15. OTHER PAYABLES - continued
Other payables are denominated in the following currencies:
Australian Dollar
Chinese Renminbi
16.
REVENUE
The Company does not have any revenue.
17. OTHER INCOME
g
gg
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 Company
The Group
2016
$
2016
$
2016
$
2016
$
122,329
-
122,329
45,240
-
582,389
663,815
1,032,114
-
45,240 1,246,204
1,032,114
The Group
2017
$
2016
$
2,889
666
12,280
16,280
549,651
1,532
-
551,103
The Group
2017
$
2016
$
336,928
175,490
43,354
-
37,120
158,699
51,204
10,557
*Amounts are non-trade in nature, unsecured, interest-free and repayable on demand.
38
39
58
59
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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
2017
$
2016
$
146,125
29,365
175,490
134,294
24,405
158,699
The Group
2017
$
2016
$
-
-
-
-
7,791
7,791
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 approximately 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:
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
2017
$
2016
$
(1,351,746)
(1,448,991)
(216,280)
-
216,280
-
(423,655)
7,791
534,747
-
-
7,791
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 AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
21.
LOSS PER SHARE
The Group
financial year.
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
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
88,000,000 88,000,000
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
2017
$
2016
$
-
-
88,000,000 88,000,000
The Group
2017
$
2016
$
Loss for the purpose of calculating basic and diluted loss per share
(1,296,483)
(1,448,991)
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
The Group
2017
$
2016
$
0.1893
0.1685
0.2020
0.1682
60
40
41
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
19.
EMPLOYEE BENEFITS
21.
LOSS PER SHARE
Notes To The Financial Statements
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
2017
$
2016
$
146,125
29,365
175,490
134,294
24,405
158,699
The Group
2017
$
2016
$
-
-
-
-
7,791
7,791
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 approximately 16.50% to 25% for the reporting year.
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.
The Group
2017
$
2016
$
Weighted average number of ordinary shares for the purpose of
calculating basic loss per share
88,000,000 88,000,000
Effect of dilutive potential ordinary shares:
Share options
Weighted average number of ordinary shares for the purpose of
calculating diluted loss per share
-
-
88,000,000 88,000,000
Loss figures are calculated as follows:
The Group
2017
$
2016
$
Loss for the purpose of calculating basic and diluted loss per share
(1,296,483)
(1,448,991)
As at the date of the financial statement, none of the options were exercised during the
financial 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:
22.
DIVIDEND
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
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.
The Group
2017
$
2016
$
(1,351,746)
(1,448,991)
(216,280)
216,280
-
-
-
(423,655)
7,791
534,747
-
7,791
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
The Group
2017
$
2016
$
0.1893
0.1685
0.2020
0.1682
60
61
40
41
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
24.
AUDITORS’ REMUNERATION
Audit services
RELATED PARTY TRANSACTIONS
(cid:3)
(cid:3)
25.
(cid:3)
The Group
2017
$
2016
$
24,000
24,000
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:
Mining - exploration and mining of iron ore.
Trading and consulting service - trading of copper strips and providing consulting services.
62
42
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
24.
AUDITORS’ REMUNERATION
The Group
2017
$
2016
$
(cid:3)
(cid:3)
(cid:3)
25.
RELATED PARTY TRANSACTIONS
26.
SEGMENT REPORTING
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.
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:
Mining - exploration and mining of iron ore.
Trading and consulting service - trading of copper strips and providing consulting services.
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
26.
SEGMENT REPORTING – Cont’d
(a) Segment results, assets and liabilities
Audit services
24,000
24,000
2017
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
2016
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
Trading and
consulting
service
$
Mining
$
Others
$
Total
$
-
-
-
-
-
-
-
-
-
-
-
-
415
410
2,889
3,714
(410,536)
(219,467)
(721,742)
(1,351,745)
2,060,308
6,054,443 15,583,605 23,698,356
2,162,853
2,690,659
2,998,284
7,851,795
Trading and
consulting
service
$
Mining
$
Others
$
Total
$
-
-
-
-
-
-
410,401
139,250
-
-
-
-
-
-
-
549,651
(1,118,641)
(177,779)
(324,995)
(1,621,415)
1,230,733
8,514,878 16,041,808 25,870,419
Others relate to the corporate activities of the Company as well as the other operating
segments that are not reportable.
62
63
42
43
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
26.
SEGMENT REPORTING – Cont’d
27.
INTERESTS OF KEY MANAGEMENT PERSONNEL (KMP)
(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
2017
$
2016
$
(1,351,746)
-
(1,351,746)
(1,729,206)
-
(1,729,206)
2017
$
23,698,356
(21.157,797)
2,540,559
2016
$
24,870,419
(21.576,132)
3,294,287
2017
$
2016
$
Segment liabilities
Elimination of inter-segment liabilities
Consolidated liabilities
7,851,795
(6,605,592)
1,246,203
8,115,510
(7,083,397)
1,032,113
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
KMP Shareholdings
during the financial year is as follows:
The number of ordinary shares in Asaplus Resources Limited held by each KMP of the Group
The Group
Balance as at
01.04.2016
Disposed
during the
year
Acquired
during the
Balance as
at
year
31.03.2017
Ir Che Mohamed Hussein¹
Dato’ LAU Eng Foo (Andy)²
Dominic Lim Kian Gam
Hong Xusheng²
-
-
39,000,000
39,000,000
-
-
-
-
-
-
-
-
-
-
39,000,000
39,000,000
Note - Dato’ 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%). Dato’ LAU Eng Foo
(Andy) is also a director of Asaplus International Limited, the other being Mr
HONG Xusheng.
Other KMP Transactions
For details of other transactions with KMP, refer to note 21.
There have been no loans to KMP.
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.
44
64
45
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
26.
SEGMENT REPORTING – Cont’d
27.
INTERESTS OF KEY MANAGEMENT PERSONNEL (KMP)
Notes To The Financial Statements
Notes To The Financial Statements
(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
2017
$
2016
$
(1,351,746)
-
(1,729,206)
-
(1,351,746)
(1,729,206)
2017
$
23,698,356
(21.157,797)
2,540,559
2016
$
24,870,419
(21.576,132)
3,294,287
2017
$
2016
$
Segment liabilities
Elimination of inter-segment liabilities
Consolidated liabilities
7,851,795
(6,605,592)
1,246,203
8,115,510
(7,083,397)
1,032,113
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
Balance as at
01.04.2016
Disposed
during the
year
Acquired
during the
year
Balance as
at
31.03.2017
Ir Che Mohamed Hussein¹
Dato’ LAU Eng Foo (Andy)²
Dominic Lim Kian Gam
Hong Xusheng²
-
39,000,000
-
39,000,000
-
-
-
-
-
-
-
-
-
39,000,000
-
39,000,000
Note - Dato’ 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%). Dato’ LAU Eng Foo
(Andy) is also a director of Asaplus International Limited, the other being Mr
HONG Xusheng.
Other KMP Transactions
For details of other transactions with KMP, refer to note 21.
There have been no loans to KMP.
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.
44
64
45
65
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
29.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES – Con’t
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.
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.
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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.
31.
FAIR VALUE ESTIMATION
All financial assets and liabilities are carried at amounts not materially different from their fair
values as at the reporting date.
32.
SUBSEQUENT EVENT
There are no subsequent events.
33.
CONTINGENT LIABILITIES
There are no contingent liabilities as at the date of these financial statements.
34.
EVENT AFTER THE REPORTING DATE
No matter or circumstance has arisen since 31 March 2017 that has significantly affected, or
may significantly affect the consolidated entity's operations, the results of those operations, or
the consolidated entity's state of affairs in future financial years.
66
46
47
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
29.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES – Con’t
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
Credit risk
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.
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 rate risk
interest rates.
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.
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
Foreign currency risk
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.
Notes To The Financial Statements
ASAPLUS RESOURCES LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
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.
31.
FAIR VALUE ESTIMATION
All financial assets and liabilities are carried at amounts not materially different from their fair
values as at the reporting date.
32.
SUBSEQUENT EVENT
There are no subsequent events.
The Company’s and the Group’s exposure to interest rate risk arises primarily from fixed
33.
CONTINGENT LIABILITIES
deposits with average maturity within 3 months.
There are no contingent liabilities as at the date of these financial statements.
34.
EVENT AFTER THE REPORTING DATE
No matter or circumstance has arisen since 31 March 2017 that has significantly affected, or
may significantly affect the consolidated entity's operations, the results of those operations, or
the consolidated entity's state of affairs in future financial years.
66
67
46
47
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017
68
ASAPLUSResources LimitedASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017ASAPLUS RESOURCES LIMITED ANNUAL REPORT 2017