TIDMRADG
RNS Number : 5638Y
Radiant Growth Investments Ltd
27 January 2014
Radiant Growth Investments Ltd
("Radiant Growth", or "the Company")
Annual Results
Posting of Notice of AGM
Radiant Growth is pleased to announce its Annual Report for the
year ended 31 July 2013
The Company's Annual General Meeting ("AGM") will be held at the
offices of the Company at Level 18, Menara Park, 12 Jalan Yap Kwan
Seng, 50450 Kuala Lumpur, Malaysia at 12.00 p.m. Malaysian time on
18 February 2014. The Notice of AGM and form of proxy will be sent
to shareholders along with the Annual Report and Accounts on 29
January 2014, all of which are available to view on the Company's
website at www.radgltd.com.
For further information please contact:
Radiant Growth Investments Limited
www.radgltd.com
Dato Sri' Dr Alex Teh Chee Teong, Director
Tel: + 6016 2086 666
Daniel Stewart & Company plc
www.danielstewart.co.uk
Antony Legge
Tel: + 44 (0) 20 7776 6500
CHAIRMAN'S STATEMENT
As Chairman of Radiant Growth Investments Limited ("Company"), I
am pleased to report to our shareholders for the year ended 31 July
2013.
At the time of our interim results I explained that there was a
level of uncertainty preceding the Malaysian national elections but
this has now been resolved in favour of the current ongoing
administration who have a high level of involvement in the oil and
gas, energy and mining.
We have already had a number of high-level meetings with members
of the current administration including the Malaysian Cabinet
Ministers and we are confident that progress can now be made on a
number of fronts.
Oil and Gas
Shareholders may recall our involvement from October 2011 with
Rancang Istemewa Sdn Bhd ("RISB") - a Malaysian company originally
established to manage a multi-buoy mooring system that will be
constructed at the proposed gas separation plant at Songkhla,
Thailand to deliver natural gas directly to ocean going tankers. At
the request of Petronas, with whom RISB intends to enter into a
joint marketing agreement for the gas from the separation plant, we
have placed an additional GBP1.53m on deposit to confirm our
ability to participate in the project. This follows positive
meetings with the Malaysian government in which they have provided
us with assurances that they are still committed to seeing this
project through to completion. RISB has until 3 June 2014 to either
progress the project such that the Company can proceed with a full
investment into the project or to return the GBP2.74 million
deposit.
Energy
We have also deposited a further one million pounds with RISB
for its waste-to-energy projects. These convert solid waste to
syngas, which is then used to power a turbine, creating
electricity, which is then sold to local and/or national
governments. RISB is in discussions in respect of potential
projects in four countries.
In Malaysia, RISB has had several meetings since September 2013
with the energy minister regarding the construction and operation
of five plants in Malaysia capable of processing, in aggregate, in
total 1000 tons of waste per day. Suitable locations are now being
assessed at state government level. Licences have been obtained in
Sri Lanka to operate a plant in Batticaloa capable of processing
200 tons of waste per day and in Cambodia we have been invited back
for further discussions with the Cambodian army and the Electricité
du Cambodge. Conversations also continue in Vietnam, further to
which it has been requested by the local authorities in Vietnam
that proof of funds of GBP1.98 million be provided in relation to
RISB's ability to undertake this project. The Company has already
placed GBP0.98 million with RISB and was therefore required to
place a further GBP1.00 million. RISB is obligated to return these
funds on 2 July 2014 in the event that the Vietnam project does not
proceed.
This technology has been particularly well-received in all the
countries in which discussions have been held by RISB and its
related parties but the viability of each proposal depends on the
relevant wholesale electricity price and associated negotiations in
obtaining a power purchase agreement in conjunction with other
revenues, such as tipping fees, which are profitable. Consequently,
discussions are complex and there are many stakeholders required to
approve energy projects due to public interest concerns.
Nevertheless, these proposed projects have made significant
progress as I have briefly outlined above.
Mining
Our agreement with Swissbay Holdings Sdn Bhd ("Swissbay") to
mine iron ore in Kelantan, Malaysia still awaits the letter of
approval from the state government to enable Swissbay to lease the
designated land and enable it to proceed with the project. We are
hopeful that Swissbay will secure permission in due course and it
is actively working to achieve this.
A deposit of RM3.52 million (GBP0.71 million) has been paid for
the purchase of iron ore in the last financial year. The Company is
acting as an agent on the sale of iron ore to a company based in
China. The iron ore was delivered to the purchaser during the
financial year and the Company is currently awaiting payment from
the customer, but is confident that this will happen in the near
future.
Outlook
Your board receives a multitude of proposals for investment and
we continue to evaluate those that we feel are potentially viable.
This takes time but in terms of the proposed multi-buoy mooring
system and waste-to-energy projects, we have committed further
funds of GBP2.53 million and are confident that attractive and
long-term benefits to our shareholders will be forthcoming.
The Company has now allocated nearly all of the funds raised at
and since IPO, leaving sufficient funds to meet our operating
expenses for the next 12 months. In the event the projects are
successful, additional capital will need to be raised, either
through share issues and/or bank borrowings, to fund the projects
to completion. In the event that a project does not proceed, the
funds on deposit for that project need to be returned by the end of
this financial year.
Once again I would like to thank my fellow directors for their
sagacious advice and enthusiastic participation and also those
members of staff at the Company who work hard and with diligence in
all matters of benefit to your Company. We continue to look forward
to the future with confidence.
Dato' Sri Dr. Alex Teh Chee Teong
Chairman
Malaysia
27 January 2014
INVESTMENT POLICY
The Company's Investment Policy is to invest in or acquire one
or more companies, partnerships, joint ventures, or businesses in
the Asia Pacific region in the mining, oil and gas, energy and
utility and palm oil and other natural oil sectors. The investments
or acquisitions may be funded wholly by cash, the issue of new
shares or debt, or a mix thereof, as the Directors deem
appropriate. The Company's equity interest in a proposed investment
may range from a minority position to 100 per cent ownership; the
proposed investments may be either quoted or unquoted, although
will likely to be unquoted in the majority of cases.
The Company will specifically make investments which the
Directors believe offer high growth opportunities, utilising the
Company's access to capital markets to help fund the requirements
of the investment target. It is anticipated that the investments
will be held for the long term but the Directors will place no
minimum or maximum limit on the length of time that any investment
may be held, so that short term disposal of investments cannot be
ruled out in exceptional circumstances. The Company intends to
deliver Shareholder returns through capital growth. As such, the
Board do not envisage the distribution of dividends in the short to
medium term.
The Company intends to be an involved and active investor.
Accordingly, where necessary, the Company may seek participation in
the day to day management through board representatives in an
entity in which the Company invests with a view to seeking to
improve the performance and use of its assets in order to grow the
business. The Board may appoint consultants or independent industry
experts or other representatives to represent the Company in
managing the investments it makes and/or their business
operations.
Despite considerable efforts, the Company has not substantially
implemented its investing policy within eighteen months of
admission. Accordingly, the Directors will seek the consent of its
shareholders for its investing policy at the coming annual general
meeting and on an annual basis thereafter, until such time that its
investing policy has been substantially implemented. If it appears
unlikely that the Investment Policy can be implemented at any time,
the Directors may consider returning any remaining funds to the
Shareholders.
The Directors consider that as investments are made, and new
opportunities arise, further funding of the Company will be
required.
Statement of Comprehensive Income
for the year ended 31 July 2013
Year Period
ended ended
31 August 31 August
2013 2012
Notes GBP'000 GBP'000
Revenue - -
Administrative expenses (381) (850)
Operating loss (381) (850)
Finance income 3 22
Loss before tax 3 (378) (828)
Income tax expense 6 - -
Loss attributable to equity shareholders (378) (828)
Other comprehensive income for the year/period - -
Total comprehensive loss for the year/period attributable
to equity
holders (378) (828)
Loss per share
Basic and diluted (pence per share) 7 (0.36) (0.96)
The above items relate entirely to continuing operations.
Statement of Financial Position
at 31 July 2013
2013 2012
Notes GBP'000 GBP'000
Assets
Current assets
Other receivables and deposits 8 5,635 3,110
Cash and cash equivalents 9 397 3,242
6,032 6,352
Total assets 6,032 6,352
Liabilities
Current liabilities
Trade and other payables 10 166 108
Total liabilities 166 108
Net assets 5,866 6,244
Equity and reserves
Share capital 11 6,899 6,899
Share based payment reserve 61 61
Retained losses (1,094) (716)
Total equity 5,866 6,244
The financial statements were approved by the Board of Directors
on 27 January 2014 and signed on its behalf by:
Dato' Sri Dr. Alex Teh Chee Teong Geoffrey Baillie Fielding
Chairman Non-Executive Director
Statement of Changes in Equity
for the year ended 31 July 2013
Share based
Share payment Retained Total
Note capital reserve losses equity
GBP'000 GBP'000 GBP'000 GBP'000
At 6 July 2011 (date of incorporation) - - - -
Total comprehensive loss
for the period - - (828) (828)
Transactions with owners:
Shares issued 7,103 - - 7,103
Share issue costs (204) - - (204)
Share based payment charge - 173 - 173
Transfer of share based payment
charge on
exercise of warrants - (112) 112 -
6,899 61 112 7,072
At 31 July 2012 6,899 61 (716) 6,244
At 1 August 2012 6,899 61 (716) 6,244
Total comprehensive loss for
the year - - (378) (378)
At 31 July 2013 6,899 61 (1,094) 5,866
All reserves are attributable to the equity holders of the
parent company.
Statement of Cash flows
for the year ended 31 July 2013
2013 2012
Notes GBP'000 GBP'000
Cash flows from operating activities
Operating loss (378) (828)
Adjustments for changes in working capital:
Decrease / (increase) in other receivables 1 (1)
Increase in payables 58 108
Add: share based payment charge - 173
Net cash used in operating activities (319) (548)
Cash flows from investing activities
Loans made to third parties (2,526) (3,109)
Net cash used in investing activities (2,526) (3,109)
Cash flows from financing activities
Proceeds from issue of shares (net of issue
costs) 11 - 6,899
Net cash generated from financing activities - 6,899
Net (decrease) / increase in cash and cash
equivalents (2,845) 3,242
Opening cash and cash equivalents 3,242 -
Cash and cash equivalents at end of year/period 9 397 3,242
Notes to the Financial Statements
for the year ended 31 July 2013
1 General information
Radiant Growth Investments Limited (the "Company") is a company
incorporated in Jersey under the Companies (Jersey) Law 1991 on 6
July 2011. The Company is governed by its articles of association
and the principal statute governing the Company is Jersey law. The
Company is domiciled and has its registered office in Jersey and
the Company's registration number is 108544.
The Company's place of business is Malaysia.
These financial statements are presented in Pounds Sterling
("GBP"), this being the Company's functional and presentational
currency, and rounded to the nearest thousand ("000"). The
functional currency of the Company is the Pound Sterling ("GBP")
because that is the currency of the primary economic environment in
which the Company raises funds.
Financial statements of the Company are prepared by and approved
by the Directors in accordance with International Financial
Reporting Standards, International Accounting Standards and their
interpretations issued or adopted by the International Accounting
Standards Board, as adopted by the European Union ("IFRSs"). The
Company's accounting reference date is 31 July.
These financial statements have been approved for issue by the
Board of Directors on 27 January 2014.
2 Summary of significant accounting policies
2.1 Basis of preparation
The principal accounting policies applied by the Company in the
preparation of these financial statements are set out below and
have been applied consistently.
The financial statements have been prepared on a going concern
basis and in accordance with IFRS.
2.2 Going concern
The financial statements of the Company are prepared on a going
concern basis. In common with many similar companies, the Company
raises finance for their investment activities mainly based in Asia
Pacific region.
The Company entered into a Standby Equity Distribution Agreement
(SEDA) in March 2012 with YA Global Master SPV, Ltd in which YA
Global Master has agreed to invest up to GBP5 million in share
capital of the Company. In April 2012, an initial GBP0.25 million
was received by the Company under the SEDA.
The Directors are of the opinion that the Company will have
sufficient cash to fund its activities based on forecast cash flow
information for a period in excess of twelve months from the date
of these financial statements' approval. Management continues to
monitor all working capital commitments and balances on a weekly
basis and believe that they have access to appropriate levels of
financing for the Company to continue to meet their liabilities as
they fall due at least the next twelve months and is trading as a
going concern.
2.3 Segmental reporting
For the purposes of IFRS 8 'Operating Segments' the Company
currently has one segment, being investing in the Natural Resources
sector in the Asia Pacific region. No further operating segment
financial information is therefore disclosed.
2.4 Foreign currency translation
(a) Functional and presentational currency
Items included in the financial statements of the entity are
presented in the currency of the primary economic environment in
which the entity operates (the "functional currency"). The
functional currency of the entity is Pounds Sterling ("GBP").
(b) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at period
end exchange rates of the monetary assets and liabilities
denominated in foreign currencies are recognised in the Statement
of Comprehensive Income.
2.5 Cash and cash equivalents
Cash and cash equivalents (readily convertible into a known
amount of cash) include cash in hand and deposits held at call with
banks with an original maturity of three months or less. For the
purpose of the cash flow statement, cash and cash equivalents are
as defined above, net of outstanding bank overdrafts. Fixed
deposits secured against bank loans are shown separately on the
statement of financial position as they do not meet the definition
of cash and cash equivalents.
2.6 Loans and other receivables
Trade and other receivables are initially recognised at fair
value, which is usually the original invoiced amount plus
transaction costs, and subsequently carried at amortised cost using
the effective interest method less provisions made for impairment
of receivables.
2.7 Trade and other payables
Trade and other payables are initially recognised at fair value,
which is usually the original invoiced amount, and subsequently
carried at amortised cost using the effective interest method.
2.8 Taxation
Deferred tax is provided in full using the liability method, on
temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements.
Deferred tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a
business combination that, at the time of the transaction, affects
either accounting nor taxable profit or loss. Deferred tax is
determined using tax rates that are expected to apply when the
related deferred tax asset is realised or when the deferred tax
liability is settled. Deferred tax assets are recognised to the
extent that it is probable that future taxable profits will be
available against which the temporary differences can be
utilised.
2.9 Equity instruments
Ordinary shares are classified as equity. Costs directly
attributable to the issue of new shares are shown in equity as a
deduction from the proceeds.
2.10 Share-based payments
The fair value of options and warrants granted is recognized as
an expense, with a corresponding increase in equity, over the
period that the holders become unconditionally entitled to the
options and warrants. The amount recognized as an expense is
adjusted to reflect the actual number of share options and warrants
that vest.
For equity settled share-based payment transactions other than
transactions with employees the Company measures the goods or
services received at their fair value, unless that fair value
cannot be estimated reliably. If this is the case the Company
measures their fair values and the corresponding increase in
equity, indirectly, by reference to the fair value of equity
instruments granted. Fair value is measured by use of an
appropriate model. In valuing equity-settled transactions, no
account is taken of any vesting conditions, other than conditions
linked to the price of the shares of Radiant Growth Investments
Limited. The charge is adjusted at each balance sheet date to
reflect the actual number of forfeitures and cancellations during
the period. The movement in cumulative charges since the previous
balance sheet is recognized in the statement of comprehensive
income, with a corresponding entry in equity.
2.11 Standards and Interpretations in issue not yet adopted
Certain changes to IFRS will be applicable for the Company's
accounts in future periods. To the extent that the Company has not
adopted these early in the current financial statements, they will
not affect the Company's reported profit or equity but they may
affect disclosures.
2.11 Standards and Interpretations in issue not yet adopted (continued)
As at the date of approval of these financial statements, the
following standards and interpretations were in issue but not yet
effective:
IAS 27 Separate Financial Statements (2011)
IAS 28 Investments in Associates and Joint Ventures (2011)
IFRS 9 Financial Instruments
IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangement
IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
Amendments to IAS 19 Employee Benefits
Amendments to IFRS 7 Disclosures - Offsetting Financial Assets
and Financial Liabilities
Amendments to IAS 32 Offsetting Financial Assets and Financial
Liabilities
Amendments to IFRS 1 Government Loans
Numerous other minor amendments to standards have been made as a
result of the IASB's annual improvement project.
The Directors do not anticipate that the adoption of these
standards in future years will have a material impact on the
financial statements in the year of adoption and have decided not
to adopt them early.
2.12 Critical accounting judgments and key sources of estimation uncertainty
Estimates and judgements need to be regularly evaluated and are
based on historical experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances. The Company makes estimates and
assumptions concerning the future. The resulting accounting
estimates will, by definition, rarely equal the related actual
results.
The estimates and underlying assumptions are reviewed on an
on-going basis. Revisions to accounting estimates are recognised in
the year in which the estimate is revised if the revision affects
only that year or in the year of the revision and future years if
the revision affects both current and future years.
The estimate significant to the financial statements during the
year and at the year end is the consideration of impairment of
financial assets, as set out in the relevant accounting policy.
3 Expenses by nature
2013 2012
GBP'000 GBP'000
Included within administrative expenses are:
Staff expenses (note 4) 168 93
Foreign exchange losses 88 210
Listing fees expensed - 204
Share-based payment expense (note 11) - 173
Auditors' Remuneration
* Fees payable to the Company's auditor 10 10
4 Staff expenses
2013 2012
GBP'000 GBP'000
Staff wages 56 3
Staff pension 4 -
Directors' fees 108 90
168 93
The average number of employees (including executive directors)
employed by the Company during the year is 5 (2012: 4).
5 Directors' Remuneration
Details of Directors' remuneration (who are considered to be the
key management personnel of the Company) are as follows:
Short term Bonus Others Total Total
employment 2013 2012
benefits
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Dato' Sri Alex Teh Chee
Teong 84 - - 84 70
Geoffrey Baillie Fielding 12 - - 12 10
Mohd Anuar Bin Mohd Hanadzlah 12 - - 12 10
Aggregate remunerations 108 - - 108 90
6 Income tax expense
2012 2012
GBP'000 GBP'000
Current tax charge - -
Deferred tax - -
- -
The Company is incorporated in Jersey. No tax reconciliation
note has been presented as the income tax rate for Jersey companies
is 0%.
7 Loss per share
Basic
Basic loss per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the year.
2013 2012
Loss attributable to equity holders of the Company (GBP'000) 378 828
Weighted average number of ordinary shares in issue 105,502,217 86,257,501
Basic loss per share in pence (0.36) (0.96)
Diluted
Potential ordinary shares of 730,555 have been excluded from the
computation of diluted EPS as the shares are anti-dilutive.
8 Other Receivables and Deposits
2013 2012
GBP'000 GBP'000
Current
Deposits 5,635 3,109
Prepayments - 1
5,635 3,110
As discussed in previous statements, the Company proposes to
invest in RISB, a Malaysian company that has been established to
manage a multi-buoy mooring system that will be constructed at the
border between Thailand and Malaysia at the gas separation plant at
Songkhla, Thailand which will deliver Natural Gas Liquids directly
to ocean-going tankers (Gas Project).
Prior sums have been placed on deposit with RISB in relation to
the Gas Project at the request of Petronas. Since that time,
Petronas have noted that the Company has no cash-generating
projects at this time. As a result of this, Petronas have requested
that an additional sum of RM7,558,000 (GBP1.53 million) be placed
on deposit to assure them of the Company's ability to fulfil its
obligations at such time that the Project progresses. This money is
held on deposit subject to the entry of further binding agreements.
In this regard, the deadline upon which RISB is obligated to return
the sum of GBP1.53 million to the Company is 3 June 2014, which is
the same deadline for all other monies held on deposit with RISB in
relation to the Gas Project.
RISB is also the entity which will be participating in the
waste-to-energy project in Vietnam (Energy Project). Further to
meetings in this financial period, it has been requested by the
local authorities in Vietnam that proof of funds of RM9,848,552
(GBP1.98 million) be provided in relation to RISB's ability to
undertake the Energy Project. The Company has already placed
RM4,889,522 (GBP0.98 million) with RISB and was therefore required
to place a further RM4,959,000 (GBP1.00 million) RISB is obligated
to return these funds on 2 July 2014 in the event that Energy
Project does not proceed.
A deposit of RM3.52 million (GBP0.71 million) has been paid for
the purchase of iron ore in the last financial year. Radiant Growth
is acting as an agent on the sale of iron ore to a company based in
China. The iron ore was delivered to the purchaser during the
financial year and is pending payment from the customer.
In the previous financial period, the Company discovered a
potential opportunity to invest in an iron ore mining project
situated in Malaysia and entered into a preliminary agreement with
Swissbay Holdings Sdn Bhd (Swissbay), a company incorporated in
Malaysia, which has obtained preliminary approval from the State of
Kelantan to lease a piece of land located in Malaysia, for the
purpose of iron ore mining. The consideration for entry into the
agreement was RM1 million (GBP0.20 million). The advance has been
used to help secure the lease and associated mineral rights
following which, work will be undertaken to further evaluate the
project. Swissbay is currently waiting for the letter of approval
from the State Government to lease the Designated Land to be used
for an iron ore mine. Once the conditions of the agreement have
been met the company has the right to subscribe for 46% of the
ordinary share capital of Swissbay Holdings Sdn Bhd (Swissbay), a
related party (see note 13 to the financial statements).
9 Cash and cash equivalents
2013 2012
GBP'000 GBP'000
Cash at bank and in hand 397 1,742
Short-term deposits - 1,500
397 3,242
Short-term deposits are monies held on money market accounts
with recognised bank.
10 Trade and other payables
2013 2012
GBP'000 GBP'000
Non-trade
Other payables 63 21
Accruals 103 87
166 108
The carrying amounts of other payables and accruals equate to
their fair value and are repayable within 12 months of the year
end.
11 Share capital and share warrants
2013 2013 2012 2012
No. of shares GBP'000 No. of shares GBP'000
Authorised share capital
Ordinary shares with no Unlimited Unlimited Unlimited Unlimited
par value
Issued and fully paid
At 1 August / date of incorporation 105,502,217 6,899 2 -
Issue of shares - - 105,502,215 7,103
Share issue costs deducted
from share capital - - - (204)
At 31 July 105,502,217 6,899 105,502,217 6,899
On 9 September 2011 the company entered into a deed of warrant
with Daniel Stewart, conditional upon Admission, to subscribe for
2% (2,064,000 shares) the aggregate value of the shares of the
company on Admission. The shares are exercisable at any time up to
five years from the date of Admission at the Placing price of
GBP0.10. These shares were granted for services rendered relating
to the AIM Admission.
Share warrants outstanding at 31 July 2013 were as follows:
Date of grant Number granted Exercise price Expiry date
20 September 2011 730,775 10p 20 September 2016
Using the Black Scholes method, the fair value of these warrants
was calculated to be GBP0.061 million and the charge was shown as
an expense in the income statement.
Share price at grant date GBP0.10
Exercise price GBP0.10
Expected volatility, per cent 122%
Warrant life, years 5
Expected dividends, per cent 0
Risk free interest rate, per cent 3%
Expected volatility is estimated by considering the Company's
share price since admission to AIM.
None of the warrants have been exercised during the year.
12 Contingencies
There were no contingent liabilities at 31 July 2013.
13 Related party transactions
During the previous financial period, the Company deposited RM1
million (GBP0.20 million) to Swissbay Holding Sdn Bhd (Swissbay) a
company incorporated in Malaysia for the purpose of entering into
an iron ore mining agreement in which Dato' Sri Alex Teh, a
director of the Company is also a director of Swissbay (see also
note 8 above).
The directors are of the opinion that the related party
transaction was entered into in the normal course of business and
was based on negotiated and mutually agreed terms.
14 Capital commitments
The Company had no contracted capital commitments at 31 July
2013.
15 Financial risk management
The Company's activities expose it to credit risk, liquidity
risk and market risk (including interest rate risk, currency risk
and commodity price risk). The Company's overall risk management
strategy seeks to minimise adverse effects from the volatility of
financial markets on the Company's financial performance.
The Board of Directors is responsible for setting the objectives
and underlying principles of financial risk management for the
Company. The Company management then establishes the detailed
policies such as risk identification and measurement, exposure
limits and hedging strategies, in accordance with the objectives
and underlying principles approved by the Board of Directors.
There has been no change to the Company's exposure to these
financial risks or the manner in which it manages and measures the
risk. Market risk exposures are measured using sensitivity analysis
indicated below.
Credit risk
Credit risk refers to the risk that counterparty will default on
its contractual obligations resulting in a loss to the Company. The
Company has adopted a policy of only dealing with creditworthy
counterparties and does not hold any collateral as security over
its customers. The Company's major classes of financial assets are
deposits made to third parties and cash and cash equivalents.
As at the end of the financial year, the Company's maximum
exposure to credit risk is represented by the carrying amount of
each class of financial assets recognised in the statements of
financial position.
As at 31 July 2013, substantially all the cash and bank balances
as detailed in notes 9 to the financial statements, are held in
major financial institutions which are regulated and located in
Hong Kong, which management believes are of high credit quality.
The management does not expect any losses arising from
non-performance by these counterparties.
The carrying amount of financial assets represents the maximum
credit exposure. The maximum exposure to credit risk at the
reporting date of the Company is as follows:
2013 2012
GBP'000 GBP'000
Other receivables and deposits 5,635 3,110
Cash and cash equivalents 397 3,242
6,032 6,352
Currency risk
Currency risk arises from a change in foreign currency exchange
rate, which is expected to have adverse effect on the Company in
the current reporting year and in future years.
The Company maintains its books and accounts in its functional
currency. As a result, the Company is subject to transaction and
translation exposures resulting from currency exchange rate
fluctuations. It is, and has been throughout the current financial
period the Company's policy that no derivatives shall be undertaken
except for the use as hedging instruments where appropriate and
cost-efficient. The Company does not apply hedge accounting.
The Company incurs foreign currency risk on operating expenses
that are denominated in currencies other than the functional
currency.
The Company's currency exposure is as follows:
2013 2012
GBP\'000 GBP'000
Financial assets
Deposits to third parties denominated in Malaysia
Ringgits (RM) 5,635 3,109
Bank balances denominated in Hong Kong Dollars
(HK$) 3 507
Bank balances denominated in US Dollars (USD) 394 10
Net currency exposure 6,032 3,626
-------- --------
Sensitivity analysis
If the RM vary against the GBP by 10% with all other variables
including tax rate being held constant, the effect on the net
profit will be as follows:
2013 2012
GBP'000 GBP'000
GBP against RM
- strengthen/weaken +/- 570 +/- 310
GBP against HKD
- strengthen/weaken +/- 0.3 +/- 56
GBP against USD
- strengthen/weaken +/- 43 +/- -
Interest rate risk
The Company monitors the interest rates on its interest bearing
assets closely to ensure favourable rates are secured.
As at the year ended, the Company's only interest-bearing assets
relate to bank balances held. A change in interest rates at the
reporting date would not materially affect profit or loss and as
such sensitivity analysis have not been disclosed.
Liquidity risk
Liquidity risk is the risk that the Company will encounter
difficulty in meeting financial obligations due to shortage of
funds. The Company's exposure to liquidity risk arises primarily
from mismatches of the maturities of financial assets and
liabilities. The Company's objective is to maintain a balance
between continuity of funding and flexibility through financial
support of shareholders and secures committed funding facilities
from financial institution.
The table below summarises the maturity profile of the Company's
financial liabilities at the reporting date based on contractual
undiscounted payments:
Less than Later than
one year one year Total
GBP'000 GBP'000 GBP'000
31 July 2013 166
Other payables and accruals 166 -
------------- ----------- --------
166 - 166
------------- ----------- --------
31 July 2012
Other payables and accruals 108 - 108
108 - 108
------------- ----------- --------
Capital risk management
The Company's objectives when managing capital (defined as share
capital and reserves) are to safeguard the Company'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.
The Company has no borrowing and cash and cash equivalents
consist of the Company's own cash at bank only.
16 Control
The Company is not controlled by any one party. Details of
significant shareholders are shown in the Directors' Report.
17 Subsequent events
There were no other material events subsequent to the end of the
year under review.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACSSEASAWFLSELF
Radiant Gwth (LSE:RADG)
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부터 5월(5) 2024 으로 6월(6) 2024
Radiant Gwth (LSE:RADG)
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부터 6월(6) 2023 으로 6월(6) 2024
