GSTECHNOLOGIES LIMITED
formerly known as Golden Saint Technologies Limited
ANNUAL REPORT
For the financial year ended 31 March 2020
GSTECHNOLOGIES LTD.
ANNUAL REPORT
For the financial year ended 31 March 2020
CONTENTS
Directors’ Statement
Consolidated Statement of Profit or loss and
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
PAGE
1 - 6
7
8
9
10
Notes to the Consolidated Financial Statements
11 - 30
Directors’ Remuneration Report
Parent Company Statement of Financial Position
Parent Company Statement of Changes in Equity
Auditor’s Report
31
32
33
34
GSTECHNOLOGIES LTD.
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2020
Board of Directors
Tone Goh, Executive Chairman
Pierre Fourie, GST’s Group MD, has deployed his strategic mind in
helping me guide the development of the GST businesses towards
ever-stronger, value creating, growth (resigned 31 June 2019)
Raphael Teo’s technical expertise has influenced all parts of the
engineering and installation teams’ work
William Knight brings an invaluable source of reliable counsel to
our Board (resigned 2 December 2019)
Malcolm Groat is a pillar of support for our company, bringing
decades of high-level financial skill and experience to our senior team
1
GSTECHNOLOGIES LTD.
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2020
Directors’ Report
The Directors present their Annual Report on the affairs of the Group, together with the financial
statements and auditor’s report, for the year ending 31 March 2020.
Principal Activities
GST provides optimal wireless, electronic cabling, security, and other solutions to clients operating in
the infrastructure development space. GST builds on the profitable ICT business of its Singaporean
subsidiary EMS Wiring Systems, which has been supplying governments and large private
organisations with intelligent building solutions for the last 30 years. GST's strategy is to develop
solutions to meet the needs of the ICT industry, acting on the surging opportunities in the technology
and innovation sectors - data Centres, intelligent buildings, smart cities and the Internet of Things -
particularly targeting emerging markets where the demand for ICT infrastructure is increasing rapidly.
Business Review
A review of the business during the period and to date, including comments on future developments, is
contained on the Strategic Report.
Dividends
The Board believes that the interests of all stakeholders are best served by retaining capital within the
Company and maintaining greater flexibility to be able to take advantage of, looking forward, the
many attractive investment and business development opportunities open to GST at this time and over
the next few years. GST is looking to generate long term value for customers and shareholders in a
sustainable manner. As a result, GST’s dividend policy for this financial year is not to pay dividends
to shareholders but rather meet their interests by creating value that leads to capital growth.
Subsequent Events
There were no subsequent events for the year ended 31 March 2020.
Financial Instruments
The Group’s financial instruments primarily comprise cash, cash equivalents, and other instruments
such as trade receivables and payables, which arise directly from its operations. Note 24 to the
accounts gives details of the Group’s risks and policies regarding financial instruments.
The accompanying notes form an integral part of these consolidated financial statements.
2
GSTECHNOLOGIES LTD.
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2020
Directors’ statement as to disclosure of information to the auditor
The Directors at the date of approval of this report confirm that:
-
-
to the best of their knowledge and belief, there is no relevant audit information of which the
Group’s auditor is unaware and
the Directors have taken all the steps that might reasonably be expected to have taken as a
Director in order to make themselves aware of any relevant audit information and to establish
that the Group’s auditor is aware of that information.
On behalf of the Board
Tone Goh
Executive Chairman
11 September 2020
The accompanying notes form an integral part of these consolidated financial statements.
3
GSTECHNOLOGIES LTD.
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2020
15 September 2020
GSTechnologies Limited
("GST", the “Group” or the "Company")
Results for the year ended 31 March 2020
Golden Saint Technologies Limited (LSE: GST), the integrated information and communication
technology infrastructure solutions provider, is pleased to announce the Company's results for the year
ended 31 March 2020.
Period Highlights
Introduction of new product from Mitel telephone solutions
Continuous expansion of operations in Asia Pacific, US and Germany
IS-EMS investment withdrawn; no longer a subsidiary
Post Highlights
Signed a DeepAlert SAAS agreement with DeepAlert Limited for AI security, real-time
video analytics
Development of Smart Innovation for IoT, security, and energy efficiency applications
Chairman’s Statement
I am pleased, on behalf of the Board of Directors of GST, to present our annual results for the year
ended 31 March 2020 to our valuable shareholders.
The COVID-19 pandemic has affected all businesses in ways no one could have imagined when I was
writing my Chairman’s statement this time last year.
I am truly proud of our 100 strong team of dedicated staff members across all of the areas in which we
operate. Our customers have relied on the critical ICT connectivity services we provide more than ever
before. The determination, execution and devotion from the whole GST team has enabled our many
clients in banking, medical and government sectors, in essential services, to function and succeed
during this intense period of need. I am pleased to report that none of our GST staff have so far been
infected by the awful corona virus.
The accompanying notes form an integral part of these consolidated financial statements.
4
GSTECHNOLOGIES LTD.
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2020
The Company continues to prioritise the health, safety and wellbeing of its staff, clients and partners,
adhering to strict government guidelines on social distancing and all other COVID-19 preventive
measures.
Throughout the entire FY20, GST have had continual success in implementing the Company’s 4i
Vision - infrastructure innovation integration intelligence, which will remain the Company's long-term
direction, developing lucrative relationships with both vendors and potential customers. This has been
particularly the case in the Company’s infrastructure integration core competence, catering for data
center next generation solutions.
I am aware as I write this in the midst of the COVID-19 pandemic, that there's talk of uncertainty and
unprecedented change. While we don’t yet know how deep the COVID-19 economic downturn will
be, nor how long it will last, we are sure that the years immediately ahead of us will be more difficult
for many businesses than the stable conditions we have enjoyed over the last decade.
GST will not be spared from those difficulties and challenges.
On a brighter note, GST intends to grow and profit from the resultant growth in technology industries
and the info communications sector in particular, which must and shall continue to expand in the new
normal world where many will work and study from home. Faster, secured and more efficient data
centers are required and the forecast is for robust growth in the coming decades. GST intends to
capitalise on these opportunities worldwide.
EMS is celebrating its 30th anniversary since inception and the business has been through several
severe global economic downturns during that time and survived, only to become stronger. We are
optimistic for the future and have confidence in remaining profitable and delivering shareholder value
in the coming years.
I would like to take this opportunity to express my upmost gratitude to all GST team members,
suppliers, partners, customers and our valued shareholders for their trust and support.
Tone Kay Kim GOH
Chairman
FINANCIAL REVIEW
Income Analysis
1. For the 12-month period ended 31 March 2020 the Company reports revenue of US$4.5
million (2019: US$6.6 million). The Group’s loss before tax for the financial year is US$0.27
million, a reduction of US$0.11 million compared to the loss incurred in previous financial
year (2019: US$0.38 million).
The operating income has decreased by 32% partially due to the effects of COVID-19 with
corresponding operating expenses also decreased by a similar percentage to US$4.8 million
(2019: US$7.1 million).
2.
The accompanying notes form an integral part of these consolidated financial statements.
5
GSTECHNOLOGIES LTD.
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2020
Balance Sheet Analysis
1. Net assets at 31 March 2020 amounted to US$1.9 million (2019: US$2.3 million). This
decrease is largely due to the overall reduction in current assets significantly contributed by
reduced sales that led to reduced cash and cash equivalents, trade and other receivables, and
work in progress amounting to US$1.6 million, a reduction of 44% compared to the preceding
financial year.
2. However, the acid test ratio (current assets, excluding inventories/current liabilities) has
improved to 3.0 as compared to 2.1 in the preceding financial year.
As at 31 March 2020, the Group had an available cash balance of US$0.6 million, a decrease of
US$0.3 million from the preceding financial year (2019: US$0.9 million).
The Directors believe that the Group is in a stable financial position and able to expand and grow its
current operations and meet all its current liabilities.
Enquiries
The Company
Tone Goh, Executive Chairman
Singapore +65 6444 2988
Financial PR & Investor Relations
IFC Advisory Limited
London
+44 20 3934 6636
Tim Metcalfe / Graham Herring / Heather Armstrong
About GST
GST provides optimal wireless, electronic cabling, security, and other solutions to clients operating in
the infrastructure development space. GST builds on the profitable ICT business of its Singaporean
subsidiary EMS Wiring Systems, which has been supplying governments and large private
organisations with intelligent building solutions for the last 30 years. GST's strategy is to develop
solutions to meet the needs of the ICT industry, acting on the surging opportunities in the technology
and innovation sectors - data centres, intelligent buildings, smart cities and the Internet of Things -
particularly targeting emerging markets where the demand for ICT infrastructure is increasing rapidly.
For more information please see: https://gstechnologies.co.uk/
The accompanying notes form an integral part of these consolidated financial statements.
6
GSTECHNOLOGIES LTD.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME
For the financial year ended 31 March 2020
Notes
2020
US$'000
2019
US$'000
Net operating income
Sales
Other income
Net operating expense
Continuing Operations
Foreign exchange loss
Impairment of Goodwill
Operating (loss)/profit
Income tax expense
Net (loss)/profit for the year
6
Other comprehensive income
Movement in foreign exchange reserve
Total comprehensive (loss)/income for the period
Net Loss for the period atttributable to:
Equity holders for the parent
Non-controlling interest
Total comprehensive loss for the period atttributable to:
Equity holders for the parent
Non-controlling interest
21
(Loss)/Earnings per share attributable to members
of the Parent
Basic (loss) per share
Diluted (loss) per share
10
10
4,527
25
4,552
(4,803)
(4)
-
(255)
(20)
(275)
(188)
(463)
(275)
-
(463)
-
(0)
(0)
6,662
25
6,687
(6,700)
(6)
(350)
(369)
(17)
(385)
(678)
(1,063)
(385)
-
(1,063)
-
(0)
(0)
The accompanying notes form an integral part of these consolidated financial statements.
7
GSTECHNOLOGIES LTD.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2020
Notes
2020
US$'000
2019
US$'000
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Work in progress
Inventories
Total current assets
Non-current assets
Property, plant and equipment
Intangible Assets
Total non-current assets
TOTAL ASSETS
EQUITY
Share Capital
Reserves
Retained Earnings
Total Equity
11
12
15
13
14
16
19
Equity attributable to owners of the parent
Non-controlling equity interest
20
LIABILITIES
Current Liabilities
Trade and other payables
Non-current Liabilities
Lease Liabilities
Total Liabilities
TOTAL EQUITY & LIABILITIES
21 & 14
14
561
1,201
247
312
2,320
295
6
301
2,621
1,804
(866)
947
1,885
1,885
-
1,885
674
62
736
2,621
871
2,142
550
315
3,878
177
6
183
4,061
1,804
(678)
1,222
2,348
2,348
-
2,348
1,713
-
1,713
4,061
The accompanying notes form an integral part of these consolidated financial statements.
8
GSTECHNOLOGIES LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the financial year ended 31 March 2020
Notes
2020
US$'000
2019
US$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before taxation from operations
Adjustments:
Depreciation of property, plant and equipment
Exchange loss
Gain on disposal
Operating loss before working capital changes
Decrease/ (increase) in inventories
Decrease / (increase) in trade and other receivables
(Decrease )/ Increase in trade and other payables
Net cash flow (used in)/from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Addition property, plant and equipment
Addition in capital work in progress
Proceeds from disposal of property, plant and equipment
Net cash flow from investing activities
Cash flows from financing activities
Proceeds of ordinary share issue
Forex reserves
Principal elements of lease payments
Net cash flow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
12
(255)
104
4
(4)
(151)
3
941
(1,039)
(95)
(232)
301
4
73
-
(188)
52
(136)
(310)
871
561
(385)
36
6
(2)
(345)
(301)
(960)
1,151
(455)
(76)
(343)
15
(404)
1,620
(678)
-
942
83
788
871
The accompanying notes form an integral part of these consolidated financial statements.
9
GSTECHNOLOGIES LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 March 2020
2020 CONSOLIDATED
Balance at 1 April 2019
Comprehensive Income
Shareholder
Capital
US$'000
FX
Reserve
US$'000
Retained
Earnings
US$'000
Total
US$'000
1,804
(678)
1,222
2,348
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
-
-
1,804
-
(188)
(866)
(275)
-
947
(275)
(188)
1,885
Transactions with owners in their
capacity as owners:
Shares issued during the year
-
-
-
-
Balance at 31 March 2020
1,804
(866)
947
1,885
2019 CONSOLIDATED
Balance at 1 April 2018
Comprehensive Income
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners:
Issue of share capital on acquisition
Shares issued during the year
Share issue costs
Shareholder
Capital
US$'000
FX
Reserve
US$'000
Retained
Earnings
US$'000
Total
US$'000
181
-
-
181
1,171
1,121
(669)
1,623
-
1,607
1,788
-
(678)
(678)
(385)
-
1,222
-
-
-
-
(385)
(678)
725
1,171
1,121
(669)
1,623
Balance at 31 March 2019
1,804
(678)
1,222
2,348
The accompanying notes form an integral part of these consolidated financial statements.
10
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
1. General Information
1.1 Corporate information
The consolidated financial statements of GSTechnologies Ltd (‘the company”) and its subsidiaries
(collectively referred to as “the Group”) for the financial year ended 31 March 2020 were authorised for
issue in accordance with a resolution of the Directors on 11 September 2020. The shares of the Company are
publicly traded on London Stock Exchange.
The registered office of GSTECHNOLOGIES Ltd, the ultimate parent of the Group, is Intertrust Corporate
Services (BVI) Limited, Ritter House, Wickhams Cay II, Tortola , BVI VG1110.
The principal activity of the Group is data infrastructure, storage and technology services.
2. Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) as
adopted by the European Union (EU) as they apply to the financial statements of the Group for the year
ended 31 March 2020.
The consolidated financial statements have been prepared on a historical cost convention basis, except for
certain financial instruments that have been measured at fair value. The consolidated financial statements are
presented in US dollars and all values are rounded to the nearest thousand except when otherwise indicated.
2.1 Consolidation
The consolidated financial statements comprise the financial statements of the Group as at 31 March 2020,
and for the period then ended.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date when such control ceases.
The financial statements of the subsidiaries are prepared for the same reporting period as the
GSTechnologies Ltd. (parent company), using consistent accounting.
All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions
and dividends are eliminated in full.
Total comprehensive income within a subsidiary is attributed to the non-controlling interest even if it results
in a deficit balance. A change ownership interest of a subsidiary, without a loss of control, is accounted for
as an equity transaction.
Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses. A business
combination is accounted for by applying the acquisition method, unless it is a combination involving
entities or businesses under common control. The business combination will be accounted for from the date
that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including
contingent liabilities) assumed is recognised (subject to certain limited exceptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting
from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent
The accompanying notes form an integral part of these financial statements.
11
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
2. Basis of preparation (continued)
consideration classified as equity is not re-measured and its subsequent settlement is accounted for within
equity. Contingent consideration classified as an asset or liability is re-measured in each reporting period to
fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified
as existing at acquisition date.
All transaction costs incurred in relation to business combinations are expensed to the statement of
comprehensive income. The acquisition of a business may result in the recognition of goodwill or a gain
from a bargain purchase.
3. Significant accounting judgements, estimates and assumptions
The preparation of the Group’s consolidated financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of
contingent liabilities at the date of the consolidated financial statements, and the reported amounts of
revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated
and are based on management’s experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. However, actual outcomes would differ from these
estimates if different assumptions were used and different conditions existed.
In particular, the Group has identified the following areas where significant judgements, estimates and
assumptions are required, and where actual results were to differ, may materially affect the financial position
or financial results reported in future periods. Further information on these and how they impact the various
accounting policies is located in the relevant notes to the consolidated financial statements.
Going concern
This report has been prepared on the going concern basis, which contemplates the continuation of normal
business activity and the realisation of assets and the settlement of liabilities in the normal course of
business.
At 31 March 2020, the Group held cash reserves of $561,000 (2019: $871,000).
The Directors are confident that the Group will generate revenue from data and technology services which
will contribute to cash flow in the next 6-month period.
On this basis, the Directors believe that there are sufficient funds to meet the Group’s working capital
requirements.
The Group recorded a loss of $272,000 for the year ended 31 March 2020 and had net assets of $1,888,000
as at 31 March 2020 (2019: loss of $385,000 and net assets of $2,348,000).
Accruals
Management have used judgement and prudence when estimating certain accruals for contractor claims. The
accruals recognised are based on work performed but are before settlement.
The accompanying notes form an integral part of these financial statements.
12
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
3. Significant accounting judgements, estimates and assumptions (continued)
Contingencies
By their nature, contingencies will only be resolved when one or more uncertain future events occur or fail
to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the
exercise of significant judgement and the use of estimates regarding the outcome of future events. Please
refer to Note 22 for further details.
The preparation of the Company’s financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
disclosure of contingent liabilities at the end of each reporting period. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset
or liability affected in the future periods.
Judgements made in applying accounting policies
Management is of the opinion that there are no significant judgements made in applying accounting
estimates and policies that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the
reporting period are discussed below. The Company based its assumptions and estimates on parameters
available when the financial statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising beyond the control of
the Company. Such changes are reflected in the assumptions when they occur.
Provision for expected credit losses (ECL) on trade receivables and contract assets
ECLs are unbiased probability-weighted estimates of credit losses which are determined by evaluating a
range of possible outcomes and taking into account past events, current conditions and assessment of future
economic conditions.
The Company uses a provision matrix to calculate ECLs for trade receivables and contract assets. The
provision rates are based on days past due for groupings of various customer segments that have similar loss
patterns. The provision matrix is initially based on the Company’s historical observed default rates. The
Company will calibrate the matrix to adjust historical credit loss experience with forward-looking
information. At every reporting date, historical default rates are updated and changes in the forward- looking
estimates are analysed.
The assessment of the correlation between historical observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of
forecast economic conditions. The Company’s historical credit loss experience and forecast of economic
conditions may also not be representative of customer’s actual default in the future.
The carrying amount of the Company’s trade receivables at the end of the reporting period is disclosed in
Note 12 to the financial statements.
Revenue recognition
The Company uses the percentage-of-completion method to account for its contract revenue. The stage of
completion is measured in accordance with the accounting policy stated in Note 5. Significant assumptions
are required in determining the stage of completion, the extent of the contract cost incurred, the estimated
total contract cost and the recoverability of the contracts. In making these assumptions, management has
relied on past experience and the work of specialists.
The accompanying notes form an integral part of these financial statements.
13
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
3. Significant accounting judgements, estimates and assumptions (continued)
Significant judgement is also required to assess allowance made for foreseeable losses, if any, where the
contract cost incurred for any job exceeds its contract sum. The carrying amounts of contract balances at the
reporting date are disclosed in Note 12 to the financial statements.
Allowance for inventory obsolescence
The Company reviews the ageing analysis of inventories at each reporting date, and makes provision for
obsolete and slow moving inventory items identified that are no longer suitable for sale. The net realisable
value for such inventories are estimated based on the most reliable evidence available at the reporting date.
These estimates take into consideration market demand, competition, selling price and cost directly relating
to events occurring after the end of the financial year to the extent that such events confirm conditions
existing at the end of the financial year. Possible changes in these estimates could result in revisions to the
valuation of inventories. The carrying amounts of the Company’s inventories at the reporting date are
disclosed in Note 13 to the financial statements.
4. Adoption of new and amended standards and interpretations
IFRS 16 was adopted as from April 1, 2019. All operating lease contracts, with limited exceptions, were
recognised on the balance sheet by recognising right-of-use assets and corresponding lease liabilities at the
transition date. Group applied the modified retrospective transition method, and consequently comparative
information is not restated.
At the adoption date, additional lease liabilities were recognised for leases previously classified as operating
leases applying IAS 17. These lease liabilities were measured at the present value of the remaining lease
payments and discounted using entity-specific incremental borrowing rates at April 1, 2019. In general, a
corresponding right-of-use asset was recognised for an amount equal to each lease liability, adjusted by the
amount of any prepaid or accrued lease payments relating to the specific lease contract, as recognised on the
balance sheet at March 31, 2019. As a practical expedient the recognition exemption for leases with a
remaining term of less than 12 months from the adoption date was applied upon adoption.
Compared with the previous accounting for operating leases under IAS 17, the application of the new
standard has a significant impact on the classification of expenditures and cash flows. It also impacts the
timing of expenses recognised in the statement of income. With effect from 2019, expenses related to leases
previously classified as operating leases are presented under ‘Depreciation, depletion and amortisation’ and
‘Interest expense’.
5. Summary of significant accounting policies
Plant and equipment
Plant and equipment are shown at cost less accumulated depreciation and impairment losses. The initial cost
of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the
asset into operation, any incidental cost of purchase, and associated borrowing costs. The purchase price or
construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire
the asset. Directly attributable costs include employee benefits, professional fees and costs of testing whether
the asset is functioning properly. Capitalised borrowing costs include those that are directly attributable to
the construction of mining and infrastructure assets.
Property, plant and equipment relate to plant, machinery, fixtures and fittings and are shown at historical
cost less accumulated depreciation and impairment losses.
The depreciation rates applied to each type of asset are as follows:
Plant and machinery
Motor Vehicles
Fixtures and fittings
Lease Improvements
2 to 10 years
2 to 10 years
3 years
5 years
The accompanying notes form an integral part of these financial statements.
14
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
5.
Summary of significant accounting policies (continued)
Plant and equipment (continued)
Subsequent expenditure is capitalised when it is probable that future economic benefits from the use of the
asset will be increased. All other subsequent expenditure is recognised as an expense in the period in which
it is incurred. Assets that are replaced and have no future economic benefit are derecognised and expensed
through profit or loss. Repairs and maintenance which neither materially add to the value of assets nor
appreciably prolong their useful lives are charged against income. Gains/ losses on the disposal of fixed
assets are credited/charged to income. The gain or loss is the difference between the net disposal proceeds
and the carrying amount of the asset.
The asset’s residual values, useful lives and methods of depreciation are reviewed at each reporting period
and adjusted prospectively if appropriate.
Inventories
Inventories are valued at the lower of cost and net realisable value
Financial instruments
These accounting policies are applied on and after the initial application date of FRS 109/IFRS 9, 1 April
2018:
(a) Financial assets
(i) Classification, initial recognition and measurement
The Company classifies its financial assets into the following measurement categories:
amortised cost; fair value through other comprehensive income (FVOCI); and fair value through
profit or loss (FVPL).
Financial assets are recognised when, and only when the entity becomes party to the contractual
provisions of the instruments.
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a
financial asset not at FVPL, transaction costs that are directly attributable to the acquisition of the
financial assets. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
Trade receivables are measured at the amount of consideration to which the Company expects to be
entitled in exchange for transferring promised goods or services to a customer, excluding amounts
collected on behalf of third party, if the trade receivables do not contain a significant financing
component at initial recognition.
(ii) Subsequent measurement
Debt instruments
Subsequent measurement of debt instruments depends on the Company’s business model for
managing the asset and the contractual cash flow characteristics of the asset. The Company only has
debt instruments at amortised cost.
Financial assets that are held for the collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. Financial assets
are measured at amortised cost using the effective interest method, less impairment. Gains and
The accompanying notes form an integral part of these financial statements.
15
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
5.
Summary of significant accounting policies (continued)
Financial Instruments (continued)
losses are recognised in profit or loss when the assets are derecognised or impaired, and through the
amortisation process.
Debt instruments of the Company comprise cash and cash equivalents and trade and other
receivables.
Equity instruments
On initial recognition of an investment in equity instrument that is not held for trading, the Company
may irrevocably elect to present subsequent changes in fair value in other comprehensive income
which will not be reclassified subsequently to profit or loss. Dividends from such investments are to
be recognised in profit or loss when the Company’s right to receive payments is established. For
investments in equity instruments which the Company has not elected to present subsequent changes
in fair value in other comprehensive income, changes in fair value are recognised in profit or loss.
(iii)Derecognition
A financial asset is derecognised where the contractual right to receive cash flows from the asset has
expired. On derecognition 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 for debt instruments is recognised in profit or loss.
(b) Financial liabilities
(i) Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Company becomes a party to the
contractual provisions of the financial instrument. The Company 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 FVPL, directly attributable transaction costs.
(ii) Subsequent measurement
After initial recognition, financial liabilities that are not carried at FVPL 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.
Financial liabilities measured at amortised cost comprise trade and other payables.
(iii) Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. On derecognition, the difference between the carrying amounts and the
consideration paid is recognised in profit or loss.
Offsetting
Financial assets and liabilities are offset and the net amount presented in the statement of financial position
when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a
net basis or to realise the asset and settle the liability simultaneously.
The accompanying notes form an integral part of these financial statements.
16
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
5.
Summary of significant accounting policies (continued)
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and short-term deposits that are readily convertible to
known amount of cash and that are subject to an insignificant risk of changes in their fair value, and are used
by the Company in the management of its short-term commitments. For the purpose of the statement of cash
flows, pledged deposits are excluded whilst bank overdrafts that are repayable on demand and that form an
integral part of the Company’s cash management are included in cash and cash equivalents.
Impairment
Financial Assets
These accounting policies are applied on and after the initial application date of FRS 109/IFRS 9, 1 April
2018:
The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at
FVPL and contract assets. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Company expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows from
the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase
in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that
are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit
losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime
ECL).
For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs.
Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based
on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment which could affect debtors’ ability to pay.
The Company considers a financial asset in default when contractual payments are past due for more than 90
days. However, in certain cases, the Company may also consider a financial asset to be in default when
internal or external information indicates that the Company is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements held by the Company. A financial asset
is written off when there is no reasonable expectation of recovering the contractual cash flows.
Non-financial assets
The carrying amounts of the Company’s non-financial assets, other than inventories, are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such indication exists, then
the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an
asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to
sell. For the purpose of impairment testing, the recoverable amount is determined on an individual asset
basis unless the asset does not generate cash inflows that are largely independent of those from other assets.
If this is the case, the recoverable amount is determined for the CGU to which the asset belongs. If the
recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an impairment loss in
profit or loss.
The accompanying notes form an integral part of these financial statements.
17
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
5.
Summary of significant accounting policies (continued)
Impairment (continued)
An impairment loss for an asset other than goodwill is reversed only if, there has been a change in the
estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised.
The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount
does not exceed the carrying amount that would have been determined (net of any accumulated amortisation
or depreciation) had no impairment loss been recognised for the asset in prior years.
A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss.
Trade and other payables
Trade and other payables are non-derivative financial liabilities that are not quoted in an active market. It
represents liabilities for goods and services provided to the Group prior to the year end and which are
unpaid. These amounts are unsecured and have 7-30 day payment terms. Trade and other payables are
presented as current liabilities unless payment is not during within 12 months from the reporting date. They
are recognised initially at their fair value and subsequently measured at amortised cost using the effective
interest method.
Interest-bearing loans and borrowings
Interest-bearing loans and borrowings are recognised initially at fair value, net of transaction costs incurred.
Borrowings are subsequently carried at amortised cost using the effective interest (EIR) method. The fair
value implies the rate of return on the debt component of the facility. This rate of return reflects the
significant risks attaching to the facility from the lenders’ perspective.
Determination of Fair Values
A number of the Company’s accounting policies and disclosures require the determination of fair value, for
both financial and non-financial assets and liabilities. Fair values have been determined for measurement
and/or disclosure purposes based on the following methods. When applicable, further information about the
assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
Trade and other receivables
The fair values of trade and other receivables are estimated as the present value of future cash flows,
discounted at the market rate of interest at the measurement date. Current receivables with no stated interest
rate are measured at the original invoice amount if the effect of discounting is immaterial. Fair value is
determined at initial recognition and, for disclosure purposes, at each annual reporting date.
Non-derivative financial liabilities
Non-derivative financial liabilities are measured at fair value at initial recognition and for disclosure
purposes, at each annual reporting date. Fair value is calculated based on the present value of future
principal and interest cash flows, discounted at the market rate of interest at the measurement date.
Other financial assets and liabilities
The carrying amount of financial assets and liabilities with a maturity of less than one year is assumed to
approximate their fair values.
Provisions
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax amount that reflects current market assessments of the time value of money, and
The accompanying notes form an integral part of these financial statements.
18
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
5.
Summary of significant accounting policies (continued)
Provisions (continued)
the risks specific to the liability. The increase in the provision due to the passage of time is recognised as
interest expense.
Finance income
Interest income is made up of interest received on cash and cash equivalents.
Income tax
Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss
except to the extent that it relates to a business combination, or items recognised directly in equity or in
other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax
rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of
previous years.
Deferred income tax is provided using the balance sheet method on temporary differences at the reporting
date between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences. 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
utilised, except:
• In respect of deductible temporary differences associated with investments in subsidiaries, deferred income
tax assets are recognised only to the extent that it is probable that the temporary differences will 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 each 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 the deferred income tax asset to be utilised. Unrecognised deferred income 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 be available to allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period.
Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists
to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the
same taxable entity and the same taxation authority.
The accompanying notes form an integral part of these financial statements.
19
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
5.
Summary of significant accounting policies (continued)
Foreign currencies
i) Functional and presentation currency
The consolidated financial statements are presented in US dollars, which is the Group’s presentation
currency.
ii) Transaction and Balances
Transactions in foreign currencies are initially recorded in the functional currency at the respective
functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the spot rate of exchange ruling at the reporting
date. All differences are taken to the profit or loss, should specific criteria be met.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair
value in a foreign currency are translated using the exchange rates at the date when the fair value was
determined.
iii) Group Companies
The results and financial position of foreign operations (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
• Assets and liabilities for each statement of financial position presented as translated at the closing rate
at the date of the statement of financial position.
• Income and expenses for each income statement and statement of profit or loss and other
comprehensive income are translated at average exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transactions dates, in which case
income and expenses are translated at the dates of the transactions), and
• All resulting exchange differences are recognised in other comprehensive income
Revenue Recognition
These accounting policies are applied on and after the initial application date of FRS 115/IFRS 15, 1 April
2018:
Revenue is measured based on the consideration to which the Company expects to be entitled in exchange
for transferring promised goods or services to a customer, excluding amounts collected on behalf of third
parties.
Revenue is recognised when the Company satisfies a performance obligation by transferring a promised
good or service to the customer, which is when the customer obtains control of the good or service. A
performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is
the amount allocated to the satisfied performance obligation.
Rendering of services
Revenue from rendering of services is recognised as performance obligations are satisfied. Payments are due
from customers based on the agreed billing milestone stipulated in the contracts or based on the amounts
certified by the customers.
Where performance obligations are satisfied over time as work progresses, revenue is recognised
progressively based on the percentage of completion method. The stage of completion is assessed by
The accompanying notes form an integral part of these financial statements.
20
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
5.
Summary of significant accounting policies (continued)
Revenue Recognition (continued)
reference to the cost incurred relative to total estimated costs (input method). The related costs are
recognised in profit or loss when they are incurred, unless they relate to future performance obligations.
If the value of services rendered for the contract exceeds payments received from the customer, a contract
asset is recognised and presented separately on the balance sheet. The contract assets are transferred to
receivables when the entitlement to payment becomes unconditional. If the amounts invoiced to the
customer exceeds the value of services rendered, a contract liability is recognised and separately presented in
the statement of financial position.
Interest Income
Interest income is recognised using the effective interest method. When a receivable is impaired, the Group
reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at
the original effective interest rate of the instrument, and continues unwinding the discount as interest
income.
Contract assets and liabilities
Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed
at the reporting date on project work. Contract assets are transferred to trade receivables when the rights
become unconditional. This usually occurs when the Company invoices the customer.
Contract liabilities primarily relate to advance consideration received from customers and progress billings
issued in excess of the Company’s rights to the consideration.
6. Net Operating Expenses
2020
US$'000
2019
US$'000
Continuing Operations
Costs of goods sold
Employee Cost
Travel Expenses
Admin Expense
Lease Expenses
Distribution, Advertising and promotion
General Expenses
Depreciation of property plant and equipment
Interest expense on leases
Occupancy costs
Income tax expense
1,420
2,645
40
354
71
93
44
104
10
22
20
4,823
The accompanying notes form an integral part of these financial statements.
3,147
2,793
78
327
111
107
78
39
-
19
17
6,716
21
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
7. Key management personnel
Directors’ emoluments
8. Employee cost
Wages and salaries
Wages and salaries – Cost of sales
Total
9. Earnings per share
2020
US$’000
2019
US$’000
327
370
2020
US$’000
2019
US$’000
1,178
529
1,707
1,177
561
1,738
2020
US$’000
2019
US$’000
Loss for the period attributable to members
(275)
(385)
Basic earnings per share is calculated by dividing the profit
attributable to owners of the Parent by the weighted average
number of ordinary share in issue during the year.
Basic weighted average number of ordinary
shares in issue
Basic earnings per share-cents
Diluted earnings per share-cents
10. Segment Reporting
669,126,659
669,126,659
(0.00)
(0.00)
(0.00)
(0.00)
The consolidated entity’s operating segments have been determined with reference to the monthly
management accounts used by the chief operating decision maker to make decisions regarding the
consolidated entity’s operations and allocation of working capital.
Due to the size and nature of the consolidated entity, the Board as a whole has been determined as the
chief operating decision maker.
The consolidated entity operates in one business segment, being information data technology and
infrastructure.
The revenues and results are those of the consolidated entity as a whole and are set out in the
statement of profit and loss and other comprehensive income. The segment assets and liabilities of
this segment are those of the consolidated entity and are set out in the Statement of Financial
Position.
The accompanying notes form an integral part of these financial statements.
22
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
11. Cash and cash equivalents
Cash at bank
2020
US$’000
2019
US$’000
561
871
Cash at bank balance includes US$52,849.49 pledged to the bank as security for banker guarantee given
to customer.
12. Trade and Other Receivables
Trade receivables
Other Receivables
13. Inventories
Inventories
Less: Allowance for inventory obsolescence
2020
US$’000
878
323
1,201
2019
US$’000
1,889
253
2,142
2020
US$’000
2019
US$’000
602
(290)
312
605
(290)
315
The movement in the allowance for inventory obsolescence is as follows:
Balance at beginning of year
Write-back of allowance for inventory obsolescence
Balance at end of year
2020
US$’000
2019
US$’000
290
0
290
322
(32)
290
The accompanying notes form an integral part of these financial statements.
23
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
14. Property, plant and equipment
Accumulated depreciation
As at 31 March 2018
Charge for the year
Adjustments
As at 31 March 2019
-
-
-
-
Charge for the year
Adjustments for disposal
As at 31 March 2020
-
55
55
46
12
(34)
25
14
-
39
372
8
380
21
-
401
112
15
(33)
94
14
(33)
75
530
35
(67)
498
104
(33)
569
Net book value
As at 31 March 2019
-
13
67
97
177
As at 31 March 2020
114
7
101
73
295
The accompanying notes form an integral part of these financial statements.
24
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
14. Property, Plant and equipment (continued)
(i) Lease liabilities recognised in the balance sheet
The balance sheet shows the following amounts relating to leases liabilities:
Current
Non-current
(ii) Amounts recognised in the statement of profit or loss
The statement of profit or loss shows the following amounts relating to leases:
Depreciation
Interest expense
15. Work in progress
Contract assets
Contract liabilities
55
62
117
55
10
65
-
-
-
-
-
-
2020
US$’000
2019
US$’000
247
-
595
(45)
The contract assets primarily relate to the Company’s rights to consideration for work completed but not
billed at the reporting date. If the value of services rendered exceeds payments received from the customer, a
contract asset is recognised and presented separately. The contract asset is transferred to receivables when
the entitlement to payment becomes unconditional.
The contract liabilities primarily relate to advance consideration received from customers for contract
revenue. If the amounts invoiced to the customer exceeds the value of services rendered, a contract liability
is recognised and presented separately.
The changes in contract balances are due to the differences between the agreed payment schedule and
progress of project work.
16.
Intangible Assets
Cost as at 1 April and 31 March
Fair value :
As at 1 April
As at 31 March
There was no impairment during the period.
The accompanying notes form an integral part of these financial statements.
2020
US$’000
2019
US$’000
6
6
6
6
6
6
25
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
17.
Subsidiaries
Details of the Company’s subsidiaries at 31 March 2020 are as follows:
Name of Subsidiary
Place of
Incorporation
Proportion of
Ownership
Interest
Proportion
of Voting
Power
Golden Saint Technologies
(Australia) Pty Ltd
Australia
EMS Wiring Systems Pte. Ltd
Singapore
100
100
100
100
18.
Taxation
Unrecognised tax losses
Where the realisation of deferred tax assets is dependent on future taxable profits, losses carried
forward are recognised only to the extent that business forecasts predict that such profits will be
available to the companies in which losses arose.
The parent, GSTechnologies Ltd, is not liable to corporation tax in BVI, so it has no provision for
deferred tax. However, GSTechnologies (Australia) Pty Ltd is liable to tax in Australia and EMS is
liable for tax in Singapore.
Current income tax
Adjustments for prior year
Deferred tax expenses
2020
US$’000
2019
US$’000
11
-
11
9
20
5
-
5
11
16
The tax expense on the results of the financial year for the Company varies from the amount of
income tax determined by applying the Singapore statutory rate of income tax on Company’s profit.
The accompanying notes form an integral part of these financial statements.
26
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
19.
Share capital and reserves
The share capital of the Company is denominated in UK Pounds Sterling. Each allotment during
the period was then translated into the Group’s functional currency, US Dollars at the spot rate on
the date of issue.
Authorised
Ordinary shares
Issued and Fully Paid – Common Shares
At 31 December 2013
Issued during the period 1 January 2014 to 30 June
2014
At 30 June 2014
Issued during the period 1 July 2014 to 31
December 2014
At 31 December 2014
Issued during the period 1 January 2015 to 30 June
2015
At 30 June 2015
Issued during the period 1 July 2015 to 31
December 2015
At 31 December 2015
Issued during the period 1 January 2016 to 30 June
2016
At 30 June 2016
Issued during the period 1 July 2016 to 31
December 2016
At 31 December 2016
Issued during the period 1 January 2017 to 30 June
2017
At 30 June 2017
Issued during the period 1 July 2017 to 31
December 2017
At 31 December 2017
Issued during the period 1 January 2018 to 31
March 2018
At 31 March 2018
Elimination of shares on reverse take over
Existing shares on acquisition
Issued during the period 1 April to 31 March
2019
At 31 March 2020
Number of
Shares
US$
420,172,001
48,753,609
-
-
420,172,001
48,753,609
60,124,397
1,326,007
480,296,398
50,079,616
639,946,772
2,119,902
1,120,243,170
52,199,518
1,006,785,674
660,195
2,127,028,884
52,859,713
2,374,694,364
1,825,971
4,501,723,248
54,685,684
1,333,333,333
391,587
5,835,056,581
55,077,271
2,987,200,001
812,370
8,822,256,582
2,927,714,286
11,749,970,868
1,220,333,332
55,868,865
947,135
56,816,000
259,000
12,970,304,200
(12,970,304,200)
259,406,084
736,075,918
57,075,000
(57,075,000)
-
1,623,000
995,482,002
1,623,000
27
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
20.
Non-controlling equity interest
All entities within the group are currently 100% owned and accordingly a non-controlling interest
does not arise.
21.
Trade and other payables
Trade payables
Accruals
Other payables
Lease liabilities
2020
US$’000
2019
US$’000
389
211
19
55
674
1365
291
57
-
1,713
Trade payables are non-interest bearing and are normally settled on 60-days terms.
22.
Commitments and Contingencies
The Group is subject to no material commitments or contingent liabilities.
23.
Related party transactions
During the period 1 April 2019 to 31 March 2020, there were no related party transactions
other than loans between wholly owned subsidiaries.
24.
Financial risk management objectives and policies
The Group’s activities expose it to a variety of financial risks. The Group’s Board provides certain
specific guidance in managing such risks, particularly as relates to credit and liquidity risk. Any
form of borrowings requires approval from the Board and the Group does not currently use any
derivative financial instruments to manage its financial risks. The key financial risks and the
Group’s major exposures are as follows:
Credit risk
The maximum exposure to credit risk is represented by the carrying amount of the financial assets.
In relation to cash and cash equivalents, the Group limits its credit risk with regards to bank deposits
by only dealing with reputable banks. In relation to sales receivables, the Group’s credit risk is
managed by credit checks for credit customers and approval of letters of credit by the Group’s
advising bank.
Foreign Currency Risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in
foreign exchange rates. The company is exposed to currency risk on sales and purchases, that are
denominated in foreign currencies.
28
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
24. Financial risk management objectives and policies (continued)
variables held constant on the statement of comprehensive income (due to the fair value of currency
sensitive nontrading monetary assets and liabilities). A positive amount in the table reflects a
potential net increase in the consolidated statement of comprehensive income.
25.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall
due. Numbers in the table below represent the gross, contractual, undiscounted amount payable in
relation to the financial liabilities.
The Group monitors its risk to a shortage of funds using a combination of cash flow forecasts,
budgeting and monitoring of operational performance.
On
Demand
US$’000
Less than
three
months
US$’000
Three to
twelve
months
US$’000
One to five
years
US$’000
Total
US$’000
As at 31 March 2020:
Trade and other payables
480
194
-
674
26.
Operating lease commitments
Capital includes equity attributable to the equity holders of the parent. Refer to the statement of
changes in equity for quantitative information regarding equity.
The Group’s primary objectives when managing capital are to safeguard its ability to continue as a
going concern in order to provide returns for shareholders. For details of the capital managed by the
Group as at 31 March 2020, please see Note 14.
The Group is not subject to any externally imposed capital requirements.
27.
Capital management
The Company manages its capital to ensure that it will be able to continue as a going concern while
maximising the returns to shareholders through the optimisation of the debt and equity balance.
Capital consists of total equity.
The directors review the capital structure on an ongoing basis. As a part of the review, the directors
consider the cost of capital and the risks associated with each class of capital. Based on the
recommendation of the directors, the Company will balance its overall capital structure through the
payment of dividends, new share issues as well as the issue of new debts or the redemption of
existing debt.
There were no changes in the Company’s approach to capital management during the year.
The Company is registered with the Building and Construction Authority and is required to maintain
certain minimum capital and net worth. The Company has complied with the applicable capital
requirements for the financial years ended 31 March 2020 and 31 March 2019.
29
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
28.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. A sensitivity analysis is not presented, as all
borrowing costs have been capitalised as at 31 March 2020; therefore, profit or loss and equity
would have not been affected by changes in the interest rate.
30
GSTECHNOLOGIES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial year ended 31 March 2020
Directors’ Renumeration
Policy and practice
The Group operates on a strictly “capital efficient’ approach and therefore director’s renumeration has been
based on conservative market matching rates in order to act in the best interest of the company during the
growth phase. At this time, outside of the existing shareholdings, there are no performance components
included in directors’ renumeration. A renumeration committee has been formed to oversee this aspect of the
Group’s operations.
Remuneration Committee is chaired by Mr. Malcolm Groat and the rest of the board as participating
members and are responsible for determining and reviewing compensation arrangements for all Executive
Directors.
The remuneration Committee is undertaking a strategic review of the structure of the director renumeration
to ensure that the correct mix of fixed renumeration and performance-related incentives are provided to
maintain the Company’s competitiveness in the corporate marketplace.
Contracts
Directors’ renumeration in its various forms was historically agreed by the Executive Chairman but is now
overseen exclusively by the renumeration committee.
All contracts are continuous until terminated by either party.
Amounts of emoluments & compensation
Director's Name
Tone Goh
Raphael Teo
Pierre Fourie
William Knight
Malcolm Groat
Total
On behalf of the Board
Tone Goh
Executive Chairman
11 September 2020
Salary
CPF
Total
US$'000
US$'000
US$'000
110
158
12
29
5
314
4
9
13
114
167
12
29
5
327
31
GSTECHNOLOGIES LTD - BVI
PARENT COMPANY STATEMENT OF FINANCIAL POSITION
As at 31 March 2020
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
Non-current assets
Intangible Assets
Intercompany loan
Total non-current assets
TOTAL ASSETS
EQUITY
Share Capital
Reserves
Retained Earnings
Total Equity
LIABILITIES
Current Liabilities
Trade and other payables
Total Liabilities
TOTAL EQUITY & LIABILITIES
2020
US$'000
3
1
299
304
6
29
35
338
58,698
-
(58,476)
222
117
117
338
In accordance with section 408 of the UK Companies Act 2006, the Company is availing itself of the exemption
from presenting its individual statement of profit or loss and other comprehensive income. The Company’s loss
for the financial year as determined in accordance with IFRS is US$362,300.84. The Company had no operating
cash flows in the period, and therefore no cash flow statement has been prepared.
32
GSTECHNOLOGIES LTD - BVI
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 March 2020
2020 CONSOLIDATED
Shareholder
Capital
US$'000
Reserves
US$'000
Retained
Earnings
US$'000
Total
US$'000
Balance at 1 April 2019
Comprehensive Income
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
58,698
-
(58,032)
-
-
58,698
-
(82)
(82)
(362)
-
(58,394)
666
(362)
(82)
222
Transactions with owners in their
capacity as owners:
Shares issued during the year
-
-
-
-
Balance at 31 March 2020
58,698
(82)
(58,394)
222
33