TIDMTEL
RNS Number : 4120A
Teliti International Ltd
30 March 2012
30 March 2012
Teliti International Ltd.
("Teliti" or the "Company")
Results for the twelve months ended 30 September 2011
Teliti International Ltd (AIM: TEL), the datacentre and IT
business, announces its full year results for the twelve months
ended 30 September 2011.
Financial Summary
(RM million) Teliti* Teliti Solutions Teliti Services Teliti Datacentres
Sdn. Bhd.** Sdn. Bhd.** Sdn. Bhd.**
------------------ --------------------------------- ------------------- ------------------ ---------------------
2011 2011 2010 2011 2010 2011 2010
------------------ --------------------------------- --------- -------- -------- -------- ------- ------------
Revenues - 12.2 10.8 29.7 33.9 0.37 -
------------------ --------------------------------- --------- -------- -------- -------- ------- ------------
PBT (0.04) 0.8 2.5 0.6 3.8 0.02 (0.5)
------------------ --------------------------------- --------- -------- -------- -------- ------- ------------
Gross profit - 2.6 4.3 4.0 6.8 0.09 -
------------------ --------------------------------- --------- -------- -------- -------- ------- ------------
Gross margin
(%) - 21.3% 39.8% 13.5% 20.1% 24.9% -
------------------ --------------------------------- --------- -------- -------- -------- ------- ------------
Total equity
and liabilities 6.6 7.5 6.7 11.6 11.0 59.8 2.9
------------------ --------------------------------- --------- -------- -------- -------- ------- ------------
* As stated in the Company's Admission document, the Company was
incorporated on 13 November 2009 as a Cayman Islands company to act
as the holding company of Teliti Solutions Sdn. Bhd., Teliti
Services Sdn. Bhd. and Teliti Datacentres Sdn. Bhd. upon Teliti
being admitted to AIM. Teliti was admitted to AIM and Teliti
Solutions, Teliti Services and Teliti Datacentres became
subsidiaries of the Company on 3 November 2011. The information
shown here represents the period from incorporation to 30 September
2011.
** During the year ended 30 September 2011, Teliti Solutions
Sdn. Bhd, Teliti Services Sdn. Bhd. and Teliti Datacentres Sdn.
Bhd. were subsidiaries of Teliti Computers Sdn. Bhd. During the
financial year ended 30 September 2011 Teliti was also a subsidiary
of Teliti Computers Sdn. Bhd., hence these figues are not
consolidated under Teliti.
Operational Summary
-- Teliti Datacentres Sdn. Bhd. ("Teliti Datacentres"):
o Earthworks and substructure of Teliti Datacentres' flagship
datacentre ("the Datacentre") completed as planned, and
superstructure commenced
o Signed-up first customer for 286 sq ft of co-location space on
two-year term
o Teliti Datacentres accorded recognition under the Malaysian
Government's Economic Transformation Programme
o Marketing of the Datacentre continued in Malaysia, through
Teliti Datacentres' regional marketing office in Singapore and in
partnership with Hitachi Data Systems
-- Teliti Solutions Sdn. Bhd. ("Teliti Solutions ") and Teliti
Services Sdn. Bhd. ("Teliti Services"):
o Awarded a number of significant contracts across several
sectors, including one-year and three-year contracts with Tenaga
Nasional Bhd, Malaysia's largest electricity provider, and a
two-year contract with Suruhanjaya Syarikat Malaysia, the Companies
Commission of Malaysia, for a range of services including
maintenance of the Commission's datacentre and server rooms
o Established new sales teams focusing on the commercial and
government sectors
Post-period Highlights
-- Teliti was admitted to AIM with dealings in the Company's
ordinary shares commencing 3 November 2011
-- Substantial progress made on the Datacentre:
o Construction nearing completion and equipment installation
progressing well; initial 45,000 sq ft expected to be operational
from July 2012
o In advanced discussions to sign rental agreements for 30,000
sq ft, including tenancies commencing upon the Datacentre
opening
o Conversion of Teliti's Customer Experience Centre ("CEC") to
offer cloud computing services, which is progressing ahead of
management's expectations
Commenting on the results, Haji Mohamed Nasir, Chief Executive
Officer of Teliti, said: "We are pleased to be announcing our
maiden results after our listing on AIM in November 2011. During
the year, our primary focus was the construction of the Datacentre,
which is scheduled to be open for business in July 2012. With our
subsidiaries Teliti Services and Teliti Solutions winning new
clients, increased interest in our cloud computing offering and the
anticipated opening of our Datacentre, we remain very excited about
Teliti's growth prospects and look to the future with
confidence."
Enquiries
Teliti International Ltd
--------------------------------------- --------------------
Hj Mohamed Nasir Abdul Majid, Chief
Executive Officer
Rosmida Din, Chief Financial Officer +603 7873 7733
--------------------------------------- --------------------
Daniel Stewart and Company plc
--------------------------------------- --------------------
Antony Legge, James Felix +44 (0)20 7776 6550
--------------------------------------- --------------------
Luther Pendragon
--------------------------------------- --------------------
Harry Chathli, Claire Norbury, Alexis
Gore +44 (0)20 7618 9100
--------------------------------------- --------------------
Operational Review
Teliti International Ltd was incorporated on 13 November 2009 to
act as the holding company of Teliti Solutions Sdn. Bhd., Teliti
Services Sdn. Bhd. and Teliti Datacentres Sdn. Bhd., which came
into force upon the Company being admitted to AIM on 3 November
2011. The results of Teliti International, announced today,
represent the period from incorporation to 30 September 2011;
during which time, Teliti Solutions, Teliti Services and Teliti
Datacentres were subsidiaries of Teliti Computers Sdn. Bhd., the
parent company of Teliti International. Hence the results and
operations of the subsidiaries for the year ended 30 September 2011
were not consolidated under Teliti International and, as such,
there is not an operational review for Teliti International for
this period. However, we have provided this for the activities of
Teliti Solutions, Teliti Services and Teliti Datacentres
respectively.
Teliti Solutions provides IT software solutions, specialising in
SAP software, and Teliti Services is a products and services
reseller, with a particular focus on IBM. Teliti Datacentres was
established to construct and operate state-of-the-art datacentre
facilities.
During the twelve months ended 30 September 2011, the Teliti
Datacentres' primary focus was the construction of the Datacentre
whilst Teliti Solutions and Teliti Services remained active in
winning new contracts, implementing existing projects and expanding
operations.
Teliti Datacentres
Teliti Datacentres is currently constructing a state-of-the-art
'green' Datacentre on the outskirts of Kuala Lumpur, Malaysia. At
120,000 sq ft of net lettable area, it will be one of the largest
facilities of its kind in Asia, and will offer full datacentre
services that include communications connectivity, uninterruptable
power supply, distribution building utilities and environmental
services that are all necessary to ensure a continuous environment
for customers' equipment. Teliti Datacentres has entered into
partnership agreements with Cisco for collaboration in the
implementation and promotion of the Datacentre, and has received
support from the government of Malaysia.
During the year, significant progress was made on the
construction of the Datacentre. The earthworks and substructure
were finished during the first half of the year as planned, and
work on the superstructure commenced.
Teliti Datacentres signed up its first customer for its Customer
Experience Centre ("CEC"), which was established to provide proof
of concept to potential customers by showcasing the equipment and
the Company's models for future datacentres. The agreement, signed
in January 2011, was for 286 sq ft of co-location space on a
two-year term at the CEC, which the Company expects to transfer to
the Datacentre when it becomes fully operational.
Marketing of the Datacentre continued in Malaysia and through
Teliti Datacentres' regional marketing office in Singapore
(covering Singapore and Hong Kong), and in partnership with Hitachi
Data Systems in the ASEAN countries. Expansion to other regions is
intended at a later stage, such as the states of the Organisation
of Islamic Conference, of which Malaysia is a member, and the
Middle East. The initial targets are the current business partners
and customers of Teliti Solutions and Teliti Services that require
datacentre facilities in Malaysia as well as new partners that have
been developed through an existing relationship that Teliti
Datacentres has with Cisco.
In January 2011, the Malaysian government announced further
plans under the Economic Transformation Programme to transform
Malaysia into a high income nation by 2020. Such transformation
will be underpinned by various government initiatives referred to
as Entry Point Projects - one of which is the government's
aspirations to grow datacentre space from 0.5 million to 5 million
sq ft by 2020. As a testament to Teliti Datacentres' commitment and
expected expertise in datacentres, the government recognised Teliti
Datacentres as one of three providers of datacentres that will help
drive Malaysia to becoming a preferred regional location for
datacentre services.
Teliti Solutions
Teliti Solutions provides the complete implementation of, and
consultancy services for, SAP-based applications; being a certified
services partner for SAP software and a supporting consultant to
SAP Germany. It undertakes a range of activities including project
management and project team consultancy for new projects and
maintenance; individual consultancy projects where the SAP
consultant is assigned to the customer's project team; offshore
development whereby overseas development projects are brought into
Malaysia; outsourcing SAP systems for customers; providing ERP
Solutions processes training; and the sale of SAP licences.
During the year, Teliti Solutions won a number of substantial
contracts, such as a one-year contract with Tenaga Nasional Bhd,
Malaysia's largest electricity provider, for the design, supply,
installation and commissioning of Tenaga Nasional Bhd's supply
chain management system. Other significant awards included a
two-year contract with Jabatan Perdana Menteri, the Prime
Minister's Department, for the application of project montitoring
systems at the Implemenation and Coordinuation Unit of the Prime
Minister's Department, and a one-year contract with Kementerian
Dalam Negeri, Ministry of Internal Affairs, for the maintenance of
system software of the Government and Financial Accounting
System.
Teliti Services
Teliti Services is a reseller of IBM products and services. It
specialises in IBM Mainframe and became one of the first few
Bumiputera Status Mainframe System Integrators in Malaysia.
Subsequently, Teliti Services diversified its product portfolio to
include maintenance of servers and third party storage through
business partnerships with major IT groups such as Hewlett Packard
and Hitachi Data Systems. Its customers in Malaysia are mainly in
the oil and gas sector, government-linked companies and agencies,
banking and private sectors.
Significant projects won in 2011 included:
-- Three-year contract with Tenaga Nasional Bhd for a
governance, risk and compliance (Access Control Module) project
-- Two-year contract with Suruhanjaya Syarikat Malaysia, the
Companies Commission of Malaysia, for a range of services including
maintenance of the Commission's datacentre and server rooms
-- Two contracts with the Malaysian External Trade and
Development Corporation (MATRADE): a two-year project for server
maintenance and support, and a 15-month project for the supply of
new licenses of, and support services for, an identity management
system
-- An ongoing project with PETRONAS for the installation of a
wireless network at the PETRONAS Twin Towers in Kuala Lumpur
-- Two contracts with Dewan Bandaraya Kuala Lumpur, the Kuala
Lumpur City Hall: a one-year project for the maintenance and
support of the City Hall's existing application servers, and an
eight-month contract for an end-to-end project - from supply
through to commissioning and support services - for consolidation
servers
Financial Review
The Company
Teliti was incorporated on 13 November 2009 as a Cayman Islands
company to act as the holding company of Teliti Solutions, Teliti
Services and Teliti Datacentres upon the Company's admission to
AIM. Teliti listed on AIM on 3 November 2011. Prior to the Company
being admitted to AIM, Teliti Solutions, Teliti Services and Teliti
Datacentres were subsidiaries of Teliti Computers, the parent
company of Teliti. As a result, for the year ended 30 September
2011, the financial results for Teliti are not the consolidated
figures of the subsidiaries, but do contain certain administrative
expenses.
Teliti Solutions
Revenue increased by 13% to RM12.2m (2010: RM10.8m). However,
gross profit was RM2.6m compared with RM4.3m for the prior year due
to a change in product mix: in 2011, there was an increase in the
hardware content of projects, which is a lower margin business, and
growth in expenses resulting from the planned expansion of the
sales team. Profit before tax decreased to RM0.8m compared with
RM2.5m for the earlier period. In 2011, Teliti Solutions secured
contracts worth RM15.3m to be delivered in the 2012 financial
year.
Teliti Services
Revenue was RM29.7m compared with RM33.9m for the prior year.
This decrease was primarily due to completion of certain projects
and new projects only just beginning to ramp. Gross profit was
RM4.0m as opposed to RM6.8m, and profit before tax was RM0.6m
compared with RM3.8m. This decline is due to an increase in
expenses resulting from the planned establishment of two new sales
teams focusing on government and commercial sectors. In addition,
the projects during the period had a greater IBM hardware component
compared with those in 2010, which is a lower margin business than
service provision.
As of the time of admission to AIM, Teliti Services had secured
contracts of over RM13m to be delivered in the current financial
year as well as receiving Letters of Award (which are expected to
be converted to contracts) for several largescale projects. As a
result, the Company is confident that Teliti Services will achieve
revenue growth for the full financial year 2012.
Teliti Datacentres
During the twelve months ended 30 September 2011, Teliti
Datacentres earned RM0.37m from the rental income from its first
customer at the Customer Experience Centre, which is contracted for
386 sq ft on a two-year term. The gross profit for the period was
24.92%. Profit before tax was RM0.02m compared with a loss before
tax of RM0.5m for the prior year, with the increase primarily due
to the commencement of rental income from the CEC.
Admission to AIM
Teliti was admitted to AIM and dealings in its ordinary shares
commenced on 3 November 2011.
The Directors of the Company consider admission to AIM to be an
important step in Teliti's development and one that will enhance
its credibility and stature in the industry, both in Malaysia and
internationally, thus enabling the Company to implement its
strategy of further market penetration in Malaysia and subsequently
across Asia and the Middle East.
The reasons for admission are:
-- to provide the Company with a flexible financial structure for future growth;
-- to maintain a high level of transparency and corporate governance within the Company;
-- to assist in recruiting, retaining and incentivising skilled employees; and
-- to enable the Company to access a wide range of investors.
On admission, the Company had 23,530,000 ordinary shares in
issue at a price of 55p giving it an implied market capitalisation
of GBP12.9 million.
Post period-end and operational update
On 3 November 2011, Teliti was admitted to AIM, representing an
important step in the Company's development and one that will
facilitate its strategy of further market penetration in Malaysia
and subsequently across Asia and the Middle East.
On admission to AIM, Teliti Solutions, Teliti Services and
Teliti Datacentres became subsidiaries of the Company.
Teliti Datacentres
The superstructure of the Datacentre is nearing completion, with
work on the fascade - the final stage of the process - having
commenced earlier this month, and the installation of equipment
began in January 2012. However, there was a delay in the delivery
and receipt of certain key equipment (namely, generator sets from
Europe and chiller equipment). As a result, it is anticipated that
the initial 45,000 sq ft of net lettable area will be operational
from July 2012, representing a delay from the original expectation
that operations would commence in April 2012.
During marketing, Teliti has encountered particular - and
increasing - demand for cloud computing services. As a result,
Teliti has shifted some of its focus onto cloud computing rather
than co-location. Teliti is in the process of equipping the CEC to
be able to offer these services to its customers, which will also
be incorporated into the Datacentre. As such, the cloud computing
offering is progressing ahead of management's expectations. In
addition, to help compensate for the delay in the Datacentre and to
begin to satisfy the demand for the Datacentre and cloud computing
services, Teliti has converted the CEC to a fully-operational
centre. The Company believes that the CEC will generate additional
revenue once the cloud computing offering commences, and expects to
secure the first customer for these services in April 2012.
As of 29 March 2012, Teliti was in advanced discussions to sign
rental agreements for approximately 30,000 sq ft, or c.67% of the
initial 45,000 sq ft of net lettable area, exceeding the Company's
40% target of area to be pre-let prior to the Datacentre
opening.
Teliti Solutions and Teliti Services
Teliti Solutions and Teliti Services have remained active in
winning new contracts and implementing existing projects. In
October 2011, Teliti Services was awarded a three-year contract by
Pertubuhan Keselamatan Sosial (PERKESO), the Malaysian government's
department of social security, to supply server units and
maintenance for disaster recovery facilities. As previously stated,
the requirement for disaster recovery facilities has been
identified by the Company as a key growth driver. In December 2011,
Teliti Services was awarded a contract by Integrasi Naluri Sdn Bhd,
a Malaysian telecommunications company, to provide a two-year
project for the conservation and digitalisation of archives for the
Malaysian National Archives, part of Malaysia's Ministry of
Information, Communications and Culture.
In addition, the Accountant General of Malaysia's Government has
awarded a two-year extension contract for the maintenance of
Financial Management and Accounting System ("GFMAS") to be carried
out by Teliti Solutions and Teliti Services. The GFMAS is an
application solution that enables the Accountant General to
interact with its stakeholders with a standardised workflow, single
point of entry and integrated database - and, as such, provides a
common view of the entire government accounting operations. The
scope of the contract includes software renewal maintenance and
application support, consultancy services to maintain the GFMAS in
several application areas and preventive and remedial maintenance
of hardware.
Outlook
The underlying fundamentals of the business remain strong, with
the datacentre market and requirement for such services growing
exponentially, particularly in South East Asia. In recent months,
the Company has seen greater than expected demand from potential
customers wishing to rent space in the Datacentre as well as from
the acceleration of the cloud computing offering. Teliti Solutions
and Teliti Services have won a number of significant contracts post
period-end, and the Company is confident of achieving growth in
these divisions. As a result, the Company expects to meet market
expectations for the full year ending 30 September 2012.
TELITI INTERNATIONAL LIMITED
INCOME STATEMENT FOR THE FINANCIAL PERIOD FROM 13 NOVEMBER 2009
(DATE OF INCORPORATION) TO 30 SEPTEMBER 2011
Period to
30 Sept 2011
RM
Revenue -
Administration expenses (35,651)
Loss before tax (35,651)
Tax expense -
------------------------
Net loss for the financial period (35,651)
========================
TELITI INTERNATIONAL LIMITED
BALANCE SHEET AS AT 30 SEPTEMBER 2011
2011
RM
ASSETS
Current asset
Other receivables 6,554,467
Cash and bank balances 1
Total current asset 6,554,468
========================
EQUITY AND LIABILITIES
EQUITY
Share capital 1
Accumulated losses (35,651)
Total equity (35,650)
------------------------
LIABILITIES
Current liabilities
Other payables 1,088,377
Amount due to holding company 5,501,741
------------------------
Total current liabilities 6,590,118
------------------------
Total equity and liabilities 6,554,468
========================
TELITI INTERNATIONAL LIMITED
CASH FLOW STATEMENT FOR THE FINANCIAL PERIOD FROM 13 NOVEMBER 2009
(DATE OF INCORPORATION) TO 30 SEPTEMBER 2011
Period to
30 Sept 2011
RM
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax (35,651)
Change in working capital :-
Receivables (6,554,467)
Payable 1,088,377
Holding company 5,501,741
------------------------
Net cash from operating activities -
------------------------
CASH FLOWS FROM INVESTING ACTIVITY
Issuance of share capital 1
------------------------
Net cash used in investing activity 1
------------------------
CASH AND CASH EQUIVALENTS
Net changes 1
At the date of incorporation -
------------------------
At end of financial period 1
========================
TELITI INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL PERIOD FROM
13 NOVEMBER 2009 (DATE OF INCORPORATION) TO 30 SEPTEMBER 2011
Accumulated
Share capital losses Total
RM RM RM
At the date of incorporation 1 - 1
Net loss for the financial
period - (35,651) (35,651)
Balance as at 30 September
2011 1 (35,651) (35,650)
========================== ================= =========================
INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF
TELITI INTERNATIONAL LTD.
(Incorporated in Cayman Island)
Company No: CT-233360
Report on the Financial Statements
We have audited the financial statements of Teliti International
Ltd., which comprise the balance sheet as at 30 September 2011, and
the income statement, statement of changes in equity and cash flow
statement for the financial period from 13 November 2009 (date of
incorporation) to 30 September 2011, and a summary of significant
accounting policies and other explanatory notes, as set out on
pages 6 to 13.
Directors' Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation
of financial statements that give a true and fair view in
accordance with Private Entity Reporting Standards in Malaysia, and
for such internal control as the Directors determine is necessary
to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with approved standards on auditing in Malaysia. Those standards
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on our judgement, including the
assessment of risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, we consider internal control relevant to the Company's
preparation of financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by the
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Report on the Financial Statements (cont'd)
Opinion
In our opinion, the financial statements have been properly
drawn up in accordance with Private Entity Reporting Standards in
Malaysia so as to give a true and fair view of the financial
position of the Company as of 30 September 2011 and of its
financial performance and cash flows for the financial period from
13 November 2009 (date of incorporation) to 30 September 2011.
Other Matters
This report is made solely to the Directors of the Company and
for no other purpose. We do not assume responsibility to any other
person for the content of this report.
SJ GRANT THORNTON DATO' N. K. JASANI
(NO. AF: 0737) CHARTERED ACCOUNTANT
CHARTERED ACCOUNTANTS (NO: 708/03/12(J/PH))
PARTNER
Kuala Lumpur
TELITI INTERNATIONAL LTD.
(Incorporated in Cayman Island)
NOTES TO THE FINANCIAL STATEMENTS - 30 SEPTEMBER 2011
1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The financial statements of the Company have been prepared in
accordance with Private Entity Reporting Standards issued by the
Malaysian Accounting Standards Board ("MASB")in Malaysia.
2. GOING CONCERN
As at 30 September 2011, the Company has a capital deficiency of
RM35,650 and its total current liabilities exceeded its total
current asset by the same amount.
The financial statements of the Company have been prepared on a
going concern basis, the validity of which depends on the
continuing financial support from the holding company and/or
attaining future profitable operations. The holding company has
agreed to provide continuing financial support for the Company to
meet its liabilities as and when they fall due.
3. SIGNIFICANT ACCOUNTING POLICIES
(a) Accounting convention
The financial statements of the Company have been prepared under
the historical cost convention, unless otherwise indicated in the
summary of significant accounting policies.
(b) Functional and Presentation Currency
The financial statements are presented in Ringgit Malaysia (RM)
which is the Company's functional currency and all values are
rounded to the nearest RM except when otherwise stated.
(c) Payables
Payables are stated at cost which is the fair value of the
consideration to be paid in the future for goods and service
received.
(d) Cash and cash equivalents
Cash and cash equivalents consist of highly liquid investments
which are subject to an insignificant risk of changes in value.
3. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
(e) Income tax
Income tax on the profit or loss for the financial period
comprises current and deferred tax. Current tax is the expected
amount of income taxes payable in respect of the taxable profit for
the period and is measured using the tax rates that have been
enacted at the balance sheet date.
Deferred tax is provided for, using the liability method, on
temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts in the
financial statements. In principle, deferred tax liabilities are
recognised for all taxable temporary differences and deferred tax
assets are recognised for all deductible temporary differences,
unused tax losses and unused tax credits to the extent that it is
probable that the taxable profit will be available against which
the deductible temporary differences, unused tax losses and unused
tax credits can be utilised. Deferred tax is not recognised if the
temporary differences arise from goodwill or negative goodwill or
from the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time of
the transaction, affects neither accounting profit nor taxable
profit.
Deferred tax is measured at the tax rates that are expected to
apply in the period when the asset is realised or the liability is
settled, based on tax rates that have been enacted or substantively
enacted at the balance sheet date. Deferred tax is recognised in
the income statement, except when it arises from a transaction
which is recognised directly in equity, in which case the deferred
tax is also charged or credited directly in equity, or when it
arises from a business combination that is an acquisition, in which
case the deferred tax is included in the resulting goodwill or
negative goodwill.
4. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION
The Company has yet to commence its business operations since
the date of incorporation.
The Company is a private limited liability company, incorporated
in Cayman Island. The registered office of the Company is located
at Codan Trust Company (Cayman) Limited Cricket Square, Hutchins
Drive, P. O. Box 2681, Grand Cayman, KY1-1111, Cayman Island.
5. OTHER RECEIVABLES
30.9.2011
RM
Prepayment 6,554,467
==========
The prepayment represents expenses incurred for Initial Public
Offerings Exercise in Alternative Investment Market in London Stock
Exchange.
6. SHARE CAPITAL
30.9.2011 30.9.2011
USD RM
Authorised:-
500,000 ordinary shares
of USD0.10 each 50,000 171,000
========== ==========
Issued and fully paid:-
1ordinary shares of
USD0.10 each 0.10 1
========== ==========
7. OTHER PAYABLES
30.9.2011
RM
Other payables 1,088,377
==========
8. AMOUNT DUE TO HOLDING COMPANY
The holding Company is Teliti Computers Sdn. Bhd., a company
incorporated in Malaysia.
Amount due to holding company is unsecured, interest free and
repayable on demand.
9. REVENUE
The Company has not generated any revenue during the financial
period.
10. LOSS BEFORE TAX
Loss before tax has been determined after charging, amongst
others, the following item:-
13.11.2011
to
30.9.2011
RM
Audit fee 10,000
===========
11. TAX EXPENSE
There is no provision for tax expense for current financial
period as the Company has no chargeable income.
12. EMPLOYEES INFORMATION
The Company has not employed any staff since the date of
incorporation.
13. COMPARATIVE FIGURES
There are no comparative figures as this is the first set of
financial statements being prepared.
14. EVENTS AFTER THE REPROTING PERIOD
(a) On 18 October 2011, the Company issued USD800,000 loan notes
(Loan Notes). The Loan Notes will automatically converted into
3,530,000 Ordinary Shares of USD0.10 of the Company on the date of
Admission to Alternative Investment Market (AIM), London.
(b) On 26 October 2011, the authorized share capital of the
Company increased from USD500,000 to USD5,000,000 by creation of an
additional 49,500,000 ordinary shares of USD0.10 each.
On the same day, the Company entered into Shares Purchase
Agreement with the holding company to acquire the entire issued
share capital of Teleiti Services Sdn Bhd, Teliti Solutions Sdn Bhd
and Teliti Datacentres Sdn Bhd, Companies incorporated in Malaysia
for a total consideration by way of issue of 19,999,999 ordinary
shares of USD0.10 each of the Company.
(c) On 31 October 2011, the Loan Notes have been converted into
3,530,000 ordinary shares of USD0.10 each of the Company.
(d) On 3 November 2011, the Company was successfully admitted to AIM on 3 November 2011.
TELITI SOLUTIONS SDN. BHD.
(Incorporated in Malaysia)
INCOME STATEMENT FOR THE FINANCIAL YEARS ENDED 30 SEPTEMBER
2011
AND 2010
2011 2010
RM RM
Revenue 12,223,406 10,796,517
Cost of sales (9,592,914) (6,527,864)
Gross profit 2,630,492 4,268,653
Other income 20,927 3,151
Selling and distribution expenses (118,165) (187,667)
Administration expenses (1,695,101) (1,589,886)
Other expense - -
--------------- ------------
Profit before tax 838,153 2,494,251
Tax expense (223,320) (612,618)
--------------- ------------
Net profit for the financial year 614,833 1,881,633
=============== ============
TELITI SOLUTIONS SDN. BHD.
(Incorporated in Malaysia)
BALANCE SHEET AS AT 30 SEPTEMBER 2011 AND 2010
2011 2010
RM RM
ASSETS
Current assets
Amount due from contract customers - -
Amount due from immediate holding company 7,508,926 6,711,026
Cash and bank balances 1,915 1,915
-------------------- -------------------
Total current assets 7,510,841 6,712,941
-------------------- -------------------
Total assets 7,510,841 6,712,941
==================== ===================
EQUITY AND LIABILITIES
EQUITY
Share capital 2 2
Retained profits 6,831,806 6,216,973
-------------------- -------------------
Total equity 6,831,808 6,216,975
-------------------- -------------------
Current liabilities
Other payables 102,288 108,788
Amount due to a director 2,200 2,200
Tax payable 574,545 384,978
-------------------- -------------------
Total current liabilities 679,033 495,966
-------------------- -------------------
Total equity and liabilities 7,510,841 6,712,941
==================== ===================
TELITI SOLUTIONS SDN. BHD.
(Incorporated in Malaysia)
CASH FLOW STATEMENT FOR THE FINANCIAL YEARS ENDED 30 SEPTEMBER
2011
AND 2010
2011 2010
RM RM
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 838,153 2,494,251
Changes in working capital:-
Payables (6,500) 7,500
Immediate holding company (797,900) (2,054,971)
----------------- -----------------
Cash generated from operations 33,753 446,780
Tax paid (33,753) (446,780)
----------------- -----------------
Net cash used in operating activities - -
----------------- -----------------
CASH AND CASH EQUIVALENTS*
Net changes - -
At beginning of financial year 1,915 1,915
----------------- -----------------
At end of financial year 1,915 1,915
================= =================
*Cash and cash equivalents represent cash and bank balances
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
TELITI SOLUTIONS SDN. BHD.
(Incorporated in Malaysia)
Company No: 452103 K
Report on the Financial Statements
We have audited the financial statements of Teliti Solutions
Sdn. Bhd., which comprise the balance sheet as at 30 September
2011, and the income statement, statement of changes in equity and
cash flow statement for the financial year then ended, and a
summary of significant accounting policies and other explanatory
notes, as set out on pages 10 to 19.
Directors' Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation
of financial statements that give a true and fair view in
accordance with Private Entity Reporting Standards and the
Companies Act, 1965 in Malaysia, and for such internal control as
the Directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with approved standards on auditing in Malaysia. Those standards
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on our judgement, including the
assessment of risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, we consider internal control relevant to the Company's
preparation of financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by the
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Company No: 452103 K
Report on the Financial Statements (cont'd)
Opinion
In our opinion, the financial statements have been properly
drawn up in accordance with the Private Entity Reporting Standards
and the Companies Act, 1965 in Malaysia so as to give a true and
fair view of the financial position of the Company as at 30
September 2011 and of its financial performance and cash flows for
the financial year then ended.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965
in Malaysia, we also report that in our opinion the accounting and
other records and the registers required by the Act to be kept by
the Company have been properly kept in accordance with the
provisions of the Act.
Other Matters
This report is made solely to the members of the Company, as a
body in accordance with Section 174 of the Companies Act, 1965 in
Malaysia and for no other purpose. We do not assume responsibility
to any other person for the content of this report.
SJ GRANT THORNTON DATO' N. K. JASANI
(NO. AF: 0737) CHARTERED ACCOUNTANT
CHARTERED ACCOUNTANTS (NO: 708/03/12(J/PH))
PARTNER
Kuala Lumpur
TELITI SOLUTIONS SDN. BHD.
(Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS - 30 SEPTEMBER 2011
1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The financial statements of the Company have been prepared in
accordance with Private Entity Reporting Standards issued by the
Malaysian Accounting Standards Board ("MASB") and Companies Act,
1965 in Malaysia.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Accounting convention
The financial statements of the Company have been prepared under
the historical cost convention, unless otherwise indicated in the
summary of significant accounting policies.
(b) Receivables
Receivables are carried at anticipated realisable value. All
known bad debts are written off and specific allowance is made for
debts which are considered doubtful of collection.
(c) Amount due from contract customers
The amount due from contract customers is stated at cost plus
profits attributable to contract in progress less progress billings
and provision for foreseeable losses, if any. Cost includes direct
materials, labour and applicable overheads.
(d) Payables
Payables are stated at cost which is the fair value of the
consideration to be paid in the future for goods and service
received.
(e) Provision for liabilities
Provision for liabilities are recognised when the Company has a
present obligation as a result of a past event and it is probable
that an outflow of resources embodying economic benefits will be
required to settle the obligations and a reliable estimate of the
amount can be made. Provisions are reviewed at each balance sheet
date and adjusted to reflect the current best estimate. Where the
effect of the time value of money is material, the amount of
provisions is the present value of the expenditure expected to be
required to settle the obligation.
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
(f) Cash and cash equivalents
Cash and cash equivalents consist of cash in hand, balances and
deposits with banks and highly liquid investments which have an
insignificant risk of changes in value.
(g) Income tax
Current tax
Current tax expense is the expected amount of income taxes
payable in respect of the taxable profit for the financial year and
is measured using the tax rates that have been enacted by the
reporting date. Current tax for current and prior periods is
recognised as liability (or asset) to the extent that it is unpaid
(or refundable).
Deferred tax
Deferred tax liabilities and assets are provided for under
liability method in respect of all temporary differences at the
reporting date between carrying amount of an asset or liability in
the statement of financial position and its tax base including
unused tax losses and capital allowances.
Deferred tax assets are recognised only to the extent that it is
probable that taxable profit will be available against which
deductible temporary differences can be utilised. The carrying
amount of a deferred tax asset is reviewed at each reporting date.
If it is no longer probable that sufficient taxable profit will be
available to allow the benefit of part or that entire deferred tax
asset to be utilised, the carrying amount of the deferred tax asset
will be reduced accordingly. When it becomes probable that
sufficient taxable profit will be available, such reductions will
be reversed to the extent of the taxable profit.
Current and deferred tax is recognised as an expense or income
in the profit or loss, except when it relates to items credited or
debited directly to equity, in which case the deferred tax is also
recognised directly in equity.
Deferred tax is measured at the tax rates that are expected to
apply in the period when the asset is realised or the liability is
settled, based on tax rates that have been enacted or substantively
enacted by the reporting date.
(h) Revenue
Revenue is recognised to the extent that it is probable that
economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue is measured at the fair value of
consideration received and receivable.
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
(h) Revenue (cont'd)
Contract revenue
Contract revenue represents revenue earned from information
technology related activities which inclusive of providing
information technology and computer related services, and supplying
of computers and related equipments. Contract revenue is recognised
upon delivery of goods and services rendered to the contract
customers. Foreseeable losses, if any, are provided for in full as
and when it can be reasonable as curtained that the contract will
result in a loss.
(i) Employee benefits
(i) Short term benefits
Wages, salaries, bonuses and social security contributions are
recognised as an expense in the financial year in which the
associated services are rendered by employees of the Company. Short
term accumulating compensated absences such as paid annual leave
are recognised when services are rendered by employees that
increase their entitlement to future compensated absences, and
short term non-accumulating compensated absences such as sick leave
are recognised when the absences occur.
(ii) Defined contribution plans
The Company make contributions to the statutory pension schemes
as provided by the laws in which it has operations.
The contributions are recognised as a liability after deducting
any contribution already paid and as an expense in the period in
which the employees render their services.
3. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION
The principal activities of the Company consist of providing
computer related services on application software, development,
project coordination and management, operational consultations and
contract personnel.
There have been no significant changes in the nature of these
activities during the financial year.
3. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION (CONT'D)
The Company is a private limited liability company, incorporated
and domiciled in Malaysia. The registered office of the Company is
located at 17-4-1, Jalan Semarak Api 2, Diamond Square, Off Jalan
Gombak, 53000 Kuala Lumpur. The principal place of business of the
Company is located at Suite 703, 7(th) Floor, Block A4, Leisure
Commerce Square, Pusat Dagang Setia Jaya, No 9, Jalan 8/9, 46150
Petaling Jaya, Selangor Darul Ehsan.
The financial statements were authorised for issue by the Board
of Directors in accordance with a resolution of the Directors on
O/S.
4. AMOUNT DUE FROM CONTRACT CUSTOMERS
2011 2010
RM RM
Cost incurred on contract to date 83,637,171 74,044,257
Attributable profits 19,646,918 17,016,426
-------------- -------------
103,284,089 91,060,683
Progress Billings (103,284,089) (91,060,683)
-------------- -------------
Amount due from contract customers - -
============== =============
5. AMOUNT DUE FROM IMMEDIATE HOLDING COMPANY
2011 2010
RM RM
Amount due from
- trade 21,942,876 19,312,384
- non-trade (14,433,950) (12,601,358)
------------- -------------
7,508,926 6,711,026
============= =============
The amount due from immediate holding company is unsecured,
interest-free and repayable on demand.
6. SHARE CAPITAL
2011 2010
RM RM
Authorised:-
100,000 ordinary shares of RM1
each 100,000 100,000
======== ========
Issued and fully paid:-
2 ordinary shares of RM1 each 2 2
======== ========
7. RETAINED PROFITS
Subject to agreement by the Inland Revenue Board, the Company
has sufficient tax credit under Section 108 of the Income Tax Act,
1967 to frank the payment of dividends out of its entire retained
profits as at 30 September 2011.
The Malaysian Budget 2008 introduced a single tier company
income tax system with effect from year of assessment 2008. As
such, the section 108 tax credit as at 30 September 2011 will be
available to the Company until such time the credit is fully
utilised or upon expiry of the six year transitional period on 31
December 2013, whichever is earlier.
As at 30 September 2011, the Company did not elect for the
single tier tax system.
8. AMOUNT DUE TO A DIRECTOR
The amount due to a director is unsecured, interest-free and
repayable on demand.
9. REVENUE
Revenue of the Company represents the contract revenue earned
from contract activities inclusive of providing information
technology and supplying related goods and services to the contract
customers.
10. PROFIT BEFORE TAX
Profit before tax has been determined after charging, amongst
others, the following items:-
2011 2010
RM RM
Audit fee 5,000 5,000
Realised foreign exchange loss - 2,151
Rental of equipment - 3,900
====== ======
11. TAX EXPENSE
2011 2010
RM RM
Income tax
- current financial year 223,320 625,500
- overprovision in prior financial
year - (12,882)
-------- ---------
223,320 612,618
======== =========
11. TAX EXPENSE (CONT'D)
A reconciliation of income tax expense on profit before tax with
the applicable statutory income tax rate is as follows:-
2011 2010
RM RM
Profit before tax 838,153 2,494,251
========= ==========
Income tax at rate of 25% 209,538 623,563
Tax effects in respect of:
Non-allowable expenses 13,782 1,937
Tax expense for the financial
year 223,320 625,500
Overprovision in prior financial
year - (12,882)
--------- ----------
223,320 612,618
========= ==========
12. EMPLOYEES INFORMATION
2011 2010
RM RM
Staff costs 503,831 539,086
======== ========
The number of employees of the Company at the end of the
financial year was 39 (2010: 42). Included in the staff costs is
defined contribution plan of RM53,222 (2010:RM52,000).
13. SIGNIFICANT INTER COMPANY TRANSACTIONS
Significant inter company transactions during the financial year
were as follows:-
2011 2010
RM RM
Progress billing charged to holding
immediate company 12,223,406 10,796,517
Corporate expenses charged by
immediate holding company 1,096,890 948,836
Management fee charged by immediate
holding company - 54,000
============ ============
TELITI SERVICES SDN. BHD.
(Incorporated in Malaysia)
INCOME STATEMENT FOR THE FINANCIAL YEARS ENDED 30 SEPTEMBER
2011
AND 2010
2011 2010
RM RM
Revenue 29,697,441 33,882,626
Cost of sales (25,782,377) (27,308,162)
Gross profit 3,915,064 6,574,464
Other income - 8,354
Selling and distribution expenses (170,317) (215,722)
Administration expenses (3,135,459) (2,610,806)
------------------- ---------------------
Profit before tax 609,288 3,756,290
Tax expense (162,941) (936,515)
------------------- ---------------------
Net profit for the financial
year 446,347 2,819,775
=================== =====================
TELITI SERVICES SDN. BHD.
(Incorporated in Malaysia)
BALANCE SHEET AS AT 30 SEPTEMBER 2011 AND 2010
2011 2010
RM RM
ASSETS
Current assets
Amount due from contract customers - -
Amount due from immediate holding company 11,619,915 10,993,155
Cash and bank balances 1,875 1,875
------------------------ ------------------------
Total current assets 11,621,790 10,995,030
------------------------ ------------------------
Total assets 11,621,790 10,995,030
======================== ========================
EQUITY AND LIABILITIES
EQUITY
Share capital 2 2
Retained profits 9,992,893 9,546,546
------------------------ ------------------------
Total equity 9,992,895 9,546,548
------------------------ ------------------------
Current liabilities
Other payables 278,211 278,211
Tax payable 1,350,684 1,170,271
------------------------ ------------------------
Total current liabilities 1,628,895 1,448,482
------------------------ ------------------------
Total equity and liabilities 11,621,790 10,995,030
======================== ========================
TELITI SERVICES SDN. BHD.
(Incorporated in Malaysia)
CASH FLOW STATEMENT FOR THE FINANCIAL YEARS ENDED 30 SEPTEMBER
2011
AND 2010
2011 2010
RM RM
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 609,288 3,756,290
Changes in working capital :-
Immediate holding company (609,288) (3,137,588)
Payables - 1,991
--------------------- ---------------------
Cash generated from operations - 620,693
Tax paid - (620,693)
--------------------- ---------------------
Net cash used in operating activities - -
--------------------- ---------------------
CASH AND CASH EQUIVALENTS*
Net changes - -
At beginning of financial year 1,875 1,875
--------------------- ---------------------
At end of financial year 1,875 1,875
===================== =====================
*Cash and cash equivalents represent cash and bank balances
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TELITI SERVICES
SDN. BHD.
(Incorporated in Malaysia)
Company No: 662974 W
Report on the Financial Statements
We have audited the financial statements of Teliti Services Sdn.
Bhd., which comprise the balance sheet as at 30 September 2011, and
the income statement, statement of changes in equity and cash flow
statement for the financial year then ended, and a summary of
significant accounting policies and other explanatory notes, as set
out on pages 10 to 20.
Directors' Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation
of financial statements that give a true and fair view in
accordance with Private Entity Reporting Standards and the
Companies Act, 1965 in Malaysia, and for such internal control as
the Directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with approved standards on auditing in Malaysia. Those standards
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on our judgement, including the
assessment of risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, we consider internal control relevant to the Company's
preparation of financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by the
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Company No: 662974 W
Report on the Financial Statements (cont'd)
Opinion
In our opinion, the financial statements have properly drawn up
in accordance with Private Entity Reporting Standards and the
Companies Act, 1965 in Malaysia so as to give a true and fair view
of the financial position of the Company as of 30 September 2011
and of its financial performance and cash flows for the financial
year then ended.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965
in Malaysia, we also report that in our opinion the accounting and
other records and the registers required by the Act to be kept by
the Company have been properly kept in accordance with the
provisions of the Act.
Other Matters
This report is made solely to the members of the Company, as a
body, in accordance with Section 174 of the Companies Act, 1965 in
Malaysia and for no other purpose. We do not assume responsibility
to any other person for the content of this report.
SJ GRANT THORNTON DATO' N. K. JASANI
(NO. AF: 0737) CHARTERED ACCOUNTANT
CHARTERED ACCOUNTANTS (NO: 708/03/12(J/PH))
PARTNER
Kuala Lumpur
TELITI SERVICES SDN. BHD.
(Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS - 30 SEPTEMBER 2011
1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The financial statements of the Company have been prepared in
accordance with Private Entity Reporting Standards issued by the
Malaysian Accounting Standards Board ("MASB") and Companies Act,
1965 in Malaysia.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Accounting convention
The financial statements of the Company have been prepared under
the historical cost convention, unless otherwise indicated in the
other significant accounting policies.
(b) Receivables
Receivables are carried at anticipated realisable value. All
known bad debts are written off and specific allowance is made for
debts which are considered doubtful of collection.
(c) Amount due from contract customers
The amount owing from contract customers is stated at cost plus
profits attributable to contract in progress less progress billings
and provision for foreseeable losses, if any. Cost includes direct
materials, labour and applicable overheads.
(d) Payables
Payables are stated at cost which is the fair value of the
consideration to be paid in the future for goods and service
received.
(e) Provision for liabilities
Provision for liabilities are recognised when the Company has a
present obligation as a result of a past event and it is probable
that an outflow of resources embodying economic benefits will be
required to settle the obligations and a reliable estimate of the
amount can be made. Provisions are reviewed at each balance sheet
date and adjusted to reflect the current best estimate. Where the
effect of the time value of money is material, the amount of
provisions is the present value of the expenditure expected to be
required to settle the obligation.
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
(f) Cash and cash equivalents
Cash and cash equivalents consist of cash in hand, balances and
deposits with banks and highly liquid investments which have an
insignificant risk of changes in value.
(g) Income tax
Income tax in the profit or loss for the financial year
comprises current and deferred tax. Current tax is the expected
amount of income taxes payable in respect of the taxable profit for
the financial year and is measured using the tax rates that have
been enacted at the balance sheet date.
Deferred tax is provided for, using the liability method, on
temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts in the
financial statements. In principle, deferred tax liabilities are
recognised for all taxable temporary differences and deferred tax
assets are recognised for all deductible temporary differences,
unused tax losses and unused tax credits to the extent that it is
probable that the taxable profit will be available against which
the deductible temporary differences, unused tax losses and unused
tax credits can be utilised. Deferred tax is not recognised if the
temporary differences arise from goodwill or negative goodwill or
from the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time of
the transaction, affects neither accounting profit nor taxable
profit.
Deferred tax is measured at the tax rates that are expected to
apply in the period when the asset is realised or the liability is
settled, based on tax rates that have been enacted or substantively
enacted at the balance sheet date. Deferred tax is recognised in
the income statement, except when it arises from a transaction
which is recognised directly in equity, in which case the deferred
tax is also charged or credited directly in equity, or when it
arises from a business combination that is an acquisition, in which
case the deferred tax is included in the resulting goodwill or
negative goodwill.
Deferred tax assets and deferred tax liabilities are off set, if
a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to
the same taxable entity and same taxation authority.
(h) Revenue
Revenue is recognised to the extent that it is probable that
economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue is measured at the fair value of
consideration received and receivable.
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
(h) Revenue (cont'd)
Contract revenue
Contract revenue represents revenue earned from information
technology related activities which inclusive of providing
information technology and computer related services, and supplying
of computers and related equipments. Contract revenue is recognised
upon delivery of goods and services rendered to the contract
customers. Foreseeable losses, if any, are provided for in full as
and when it can be reasonable as curtained that the contract will
result in a loss.
(i) Employee benefits
(i) Short term benefits
Wages, salaries, bonuses and social security contributions are
recognised as an expense in the financial year in which the
associated services are rendered by employees of the Company. Short
term accumulating compensated absences such as paid annual leave
are recognised when services are rendered by employees that
increase their entitlement to future compensated absences, and
short term non-accumulating compensated absences such as sick leave
are recognised when the absences occur.
(ii) Defined contribution plans
The Company make contributions to the statutory pension schemes
as provided by the laws in which it has operations.
The contributions are recognised as a liability after deducting
any contribution already paid and as an expense in the period in
which the employees render their services.
(j) Equity instruments
Ordinary shares are recognised at the nominal value and
classified as equity instrument.
3. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION
The Company is a private limited liability company, incorporated
and domiciled in Malaysia.
The registered office of the Company is located at 17-4-1, Jalan
Semarak Api 2, Diamond, Off Jalan Gombak, 53000 Kuala Lumpur. The
principal place of business of the Company is located at Suite 703,
7(th) Floor, Block A4, Leisure Commerce Square, Pusat Dagang Setia
Jaya, No.9, Jalan 8/9, 46150 Petaling Jaya, Selangor Darul
Ehsan.
The principal activities of the Company consist of providing
information technology and computer related services and supplying
of computer and related equipment.
There have been no significant changes in the nature of these
activities during the year.
The financial statements were authorised for issue by the Board
of Directors in accordance with a resolution of the Directors on
O/S.
4. AMOUNT DUE FROM CONTRACT CUSTOMERS
2011 2010
RM RM
Costs incurred on contract to
date 114,745,138 88,967,792
Attributable profits 17,302,342 13,382,246
-------------- --------------
132,047,480 102,350,038
Progress billings (132,047,480) (102,350,038)
-------------- --------------
Amount due from contract customer - -
============== ==============
5. AMOUNT DUE FROM IMMEDIATE HOLDING COMPANY
2011 2010
RM RM
Amount due from/(to)
- trade 24,109,616 20,194,552
- non-trade (12,489,701) (9,201,397)
------------- ------------
11,619,915 10,993,155
============= ============
All balances are unsecured, interest-free and repayable on
demand.
6. SHARE CAPITAL
2011 2010
RM RM
Authorised:-
100,000 ordinary shares of RM1
each 100,000 100,000
======== ========
Issued and fully paid:-
2 ordinary shares of RM1 each 2 2
======== ========
7. RETAINED PROFITS
Subject to agreement by the Inland Revenue Board, the Company
has sufficient tax credit under Section 108 of the Income Tax Act,
1967 to frank the payment of dividends out of its entire retained
profits as at 30 September 2011.
The Malaysian Budget 2008 introduced a single tier company
income tax system with effect from year of assessment 2008. As
such, the section 108 tax credit as at 30 September 2011 will be
available to the Company until such time the credit is fully
utilised or upon expiry of the six year transitional period on 31
December 2013, whichever is earlier.
As at 30 September 2011, the Company did not elect for the
single tier tax system.
8. REVENUE
Revenue of the Company represents the contract revenue earned
from contract activities inclusive of providing information
technology and supplying related goods and services to the contract
customers.
9. PROFIT BEFORE TAX
Profit before tax has been determined after charging amongst
others, the following item:-
2011 2010
RM RM
Auditors' remuneration 5,000 5,000
====== ======
10. TAX EXPENSE
2011 2010
RM RM
Income tax
- Current financial year 157,840 941,992
- Under/(Over)provision in prior
financial year 5,101 (5,477)
162,941 936,515
======== ========
A reconciliation of income tax expense on profit before tax with
the applicable statutory income tax rate is as follows:-
2011 2010
RM RM
Profit before tax 609,288 3,756,290
========= ==========
Income tax at rate of 25% 152,322 939,072
Tax effects in respect of:
Non-allowable expenses 5,518 2,920
Tax expense for the financial
year 157,840 941,992
Under/(Over) provision in prior
financial year 5,101 (5,477)
--------- ----------
162,941 936,515
========= ==========
11. EMPLOYEES INFORMATION
2011 2010
RM RM
Staff costs 1,435,793 1,190,689
========== ==========
The number of employees of the Company at the end of the
financial year was 22 (2010: 12) persons. Included in the staff
costs is defined contribution plan of RM159,977
(2010:RM128,843).
12. SIGNIFICANT INTER COMPANY TRANSACTIONS
Significant inter company transactions during the financial year
were as follows:-
2011 2010
RM RM
Progress billings charged to immediate
holding company 29,697,441 33,882,626
Corporate expenses charged by
immediate holding company 1,632,545 1,385,278
Management fee charged by immediate
holding company - 54,000
============ ============
The Directors are of the opinion that the Company has entered
into the above transaction on a negotiated basis.
TELITI DATACENTRES SDN. BHD.
(Incorporated in Malaysia)
INCOME STATEMENT FOR THE FINANCIAL YEARS ENDED 30 SEPTEMBER
2011 AND 2010
2011 2010
RM RM
Revenue 374,864 -
Cost of sales (281,437) -
--------------------- --------------------
Gross profit 93,427 -
Other operating income 146,708 -
Administration expenses (160,555) (454,862)
Selling and distribution costs (44,732) (25,582)
Other operating expenses (4,474) -
Finance cost (14,563) -
--------------------- --------------------
Profit/(Loss) before tax 15,811 (480,444)
Tax expense - -
--------------------- --------------------
Net profit/(loss) for the financial
year 15,811 (480,444)
===================== ====================
TELITI DATACENTRES SDN. BHD.
(Incorporated in Malaysia)
BALANCE SHEET AS AT 30 SEPTEMBER 2011 AND 2010
2011 2010
RM RM
ASSETS
Non-current assets
Property, plant and equipment 57,534,742 2,892,149
Fixed deposits with licensed banks 500,000 -
Development cost 1,432,351 -
-------------------- --------------------------
Total non-current assets 59,467,093 2,892,149
-------------------- --------------------------
Current assets
Trade receivable 52,820 -
Other receivables 245,488 -
-------------------- --------------------------
Total current assets 298,308 -
-------------------- --------------------------
Total assets 59,765,401 2,892,149
==================== ==========================
EQUITY AND LIABILITIES
EQUITY
Share capital 3,000,000 2
Accumulates loss (481,166) (496,977)
-------------------- --------------------------
Total equity 2,518,834 (496,975)
-------------------- --------------------------
LIABILITIES
Non-current liabilities
Borrowings 35,217,705 -
Finance lease payables 1,232,270 -
-------------------- --------------------------
Total non-current liabilities 36,449,975 -
-------------------- --------------------------
Current liabilities
Other payables 5,464,627 1,000
Amount due to immediate holding
company 13,727,253 3,388,124
Borrowings 14,563 -
Finance lease payables 1,590,149 -
-------------------- --------------------------
Total current liabilities 20,796,592 3,389,124
-------------------- --------------------------
Total equity and liabilities 59,765,401 2,892,149
==================== ==========================
TELITI DATACENTRES SDN. BHD.
(Incorporated in Malaysia)
CASH FLOW STATEMENT FOR THE FINANCIAL YEARS ENDED 30 SEPTEMBER
2011 AND 2010
2011 2010
RM RM
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(Loss) before tax 15,811 (480,444)
Adjustment for:-
Depreciation 4,474 -
Interest expenses 14,563 -
--------------------- ------------------
Operating profit/(loss) before working
capital changes 34,848 (480,444)
Change in working capital :-
Immediate holding company 10,339,129 3,372,593
Receivables (298,308) -
Payables 5,463,627 -
--------------------- ------------------
Net cash from operating activities 15,539,296 2,892,149
--------------------- ------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (51,824,648) (2,892,149)
Placement of fixed deposit (500,000) -
Purchase of development cost (1,432,351) -
--------------------- ------------------
Net cash used in investing activity (53,756,999) (2,892,149)
--------------------- ------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of ordinary shares 2,999,998 -
Interest paid (14,563) -
Drawdown of term loan 35,217,705 -
--------------------- ------------------
Net cash flow financing activities 38,203,140 -
--------------------- ------------------
CASH AND CASH EQUIVALENTS
Net changes (14,563) -
At beginning of financial year - -
--------------------- ------------------
At end of financial year (14,563) -
===================== ==================
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
TELITI DATACENTRES SDN. BHD.
(Incorporated in Malaysia)
Company No: 631859 A
Report on the Financial Statements
We have audited the financial statements of Teliti Datacentres
Sdn. Bhd., which comprise the balance sheet as at 30 September 2011
of the Company, and the income statement, statement of changes in
equity and cash flow statement of the Company for the financial
year then ended, and a summary of significant accounting policies
and other explanatory notes, as set out on pages 10 to 23.
Directors' Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation
of financial statements that give a true and fair view in
accordance with Private Entity Reporting Standards and the
Companies Act, 1965 in Malaysia, and for such internal control as
the Directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with approved standards on auditing in Malaysia. Those standards
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on our judgement, including the
assessment of risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, we consider internal control relevant to the Company's
preparation of financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by the
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Company No: 631859 A
Report on the Financial Statements (cont'd)
Opinion
In our opinion, the financial statements have been properly
drawn up in accordance with Private Entity Reporting Standards and
the Companies Act, 1965 in Malaysia so as to give a true and fair
view of the financial position of the Company as at 30 September
2011 and of its financial performance and cash flows for the
financial year then ended.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965
in Malaysia, we also report that in our opinion the accounting and
other records and the registers required by the Act to be kept by
the Company have been properly kept in accordance with the
provisions of the Act.
Other Matters
This report is made solely to the members of the Company, as a
body, in accordance with Section 174 of the Companies Act, 1965 in
Malaysia and for no other purpose. We do not assume responsibility
to any other person for the content of this report.
SJ GRANT THORNTON DATO' N. K. JASANI
(NO. AF: 0737) CHARTERED ACCOUNTANT
CHARTERED ACCOUNTANTS (NO: 708/03/12(J/PH))
PARTNER
Kuala Lumpur
TELITI DATACENTRES SDN. BHD.
(Incorporated in Malaysia)
NOTES TO THE FINANCIAL STATEMENTS - 30 SEPTEMBER 2011
1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The financial statements of the Company have been prepared in
accordance with Private Entity Reporting Standards issued by the
Malaysian Accounting Standards Board ("MASB") and the Companies
Act, 1965 in Malaysia.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Accounting convention
The financial statements of the Company have been prepared under
the historical cost convention, unless otherwise indicated in the
summary of significant accounting policies.
(b) Receivables
Trade and other receivables are carried at anticipated
realisable value. Bad debts are written off in the period in which
they are identified. An allowance is made for doubtful debts based
on a review of all outstanding amounts at the period end.
(c) Payables
Payables are stated at cost which is the fair value of the
consideration to be paid in the future for goods and service
received.
(d) Property, plant and equipment
Property, plant and equipment are stated at cost less
accumulated depreciation and impairment loss. The policy for the
recognition and measurement of impairment loss is in accordance
with Note 2(h). Depreciation is calculated to write off the cost of
property, plant and equipment on a straight line basis over the
estimated useful lives of the property, plant and equipment
concerned.
The principal depreciation annual rates used is as follow:-
Computers 20%
The residual values, useful life and depreciation method are
reviewed at each financial year end to ensure that the amount,
method and period of depreciation are consistent with previous
estimates and expected pattern of consumption of future economic
benefits embodied in the items of property, plant and
equipment.
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
(d) Property, plant and equipment (cont'd)
Any items of property, plant and equipment is derecognised upon
disposal or when no future economic benefits are expected from its
use or disposal. The difference between the net disposal proceeds,
if any and the net carrying amount is recognised in profit or
loss.
Capital work-in-progress consists of buildings under
construction for intended use as office building. The amount is
stated at cost and no depreciation is charged until the office
building is completed.
(e) Employee benefits
(i) Short term benefits
Wages, salaries, bonuses and social security contributions are
recognised as an expense in the financial year in which the
associated services are rendered by employees of the Company. Short
term accumulating compensated absences such as paid annual leave
are recognised when services are rendered by employees that
increase their entitlement to future compensated absences, and
short term non-accumulating compensated absences such as sick leave
are recognised when the absences occur.
(ii) Defined contribution plans
The Company make contributions to the countries' statutory
pension schemes as provided by the laws of the countries in which
it has operations. In particular, the Malaysian incorporated
companies contribute to the Employee Provident Fund ("EPF"), a
defined contribution plan regulated and managed by the Government
of Malaysia, which applies to the majority of the employees.
The contributions are recognised as a liability after deducting
any contribution already paid and as an expense in the period in
which the employees render their services.
(f) Cash and cash equivalents
Cash and cash equivalents consist of highly liquid investments
which are subject to an insignificant risk of changes in value.
(g) Revenue recognition
Revenue is recognised to the extent that it is probable that
economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue is measured at the fair value of
consideration received and receivable.
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
(h) Income tax
Income tax on the profit or loss for the financial year
comprises current and deferred tax. Current tax is the expected
amount of income taxes payable in respect of the taxable profit for
the year and is measured using the tax rates that have been enacted
at the balance sheet date.
Deferred tax is provided for, using the liability method, on
temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts in the
financial statements. In principle, deferred tax liabilities are
recognised for all taxable temporary differences and deferred tax
assets are recognised for all deductible temporary differences,
unused tax losses and unused tax credits to the extent that it is
probable that the taxable profit will be available against which
the deductible temporary differences, unused tax losses and unused
tax credits can be utilised. Deferred tax is not recognised if the
temporary differences arise from goodwill or negative goodwill or
from the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time of
the transaction, affects neither accounting profit nor taxable
profit.
Deferred tax is measured at the tax rates that are expected to
apply in the period when the asset is realised or the liability is
settled, based on tax rates that have been enacted or substantively
enacted at the balance sheet date. Deferred tax is recognised in
the income statement, except when it arises from a transaction
which is recognised directly in equity, in which case the deferred
tax is also charged or credited directly in equity, or when it
arises from a business combination that is an acquisition, in which
case the deferred tax is included in the resulting goodwill or
negative goodwill.
(i) Impairment of assets
The carrying amount of the Company's assets are reviewed at each
balance sheet date to determine whether there is any indication of
impairment. If any such indication exists, the asset's recoverable
amount is estimated. An impairment loss is recognised whenever the
carrying amount of an asset or the cash-generating unit to which it
belongs exceeds its recoverable amount. Impairment losses are
recognised in the income statement.
The recoverable amount is the greater of the asset's net selling
price and its value in use. In assessing value in use, estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset. For an
asset that does not generate largely independent cash inflows, the
recoverable amount is determined for the cash-generating unit to
which the asset belongs.
An impairment loss is reversed only to the extent that the
asset's carrying amount does not exceed the carrying amount that
would have determined, net of depreciation or amortisation, if no
impairment loss has been recognised.
2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
(j) Borrowing costs
Borrowing costs directly attributable to the construction of a
qualifying asset are capitalised during the period of time that is
necessary to complete and prepare the asset for its intended use or
sale. Capitalisation of borrowings costs commences when the
activities to prepare the asset for its intended use or sale are in
progress and the expenditures and borrowings costs are incurred.
Borrowing costs are capitalised until the assets are substantially
completed for their intended use or sale.
Other borrowings costs are expensed in the period in which they
are incurred. Borrowing costs consist of interest and other costs
that the Company incurred in connection with the borrowing of
funds.
(k) Development cost
Development cost are expensed in the period in which they are
incurred except when the cost on development project are recognised
as development assets when the Company can demonstrate the
feasibility of completing the development assets so that it will be
available to use on sell, its intention to complete and its ability
to use or sell the assets, how the assets will generate future
economic benefits, the availability of resources to complete and
ability to measure reliability the expenditure during
development.
Capitalised developments cost, considered to have finite useful
life is authorised over the estimated life span of the developed
assets. Impairment and the amortisation period and method are also
reviewed at least at each balance sheet date.
(l) Property, plant and equipment acquired under finance lease
and hire purchase arrangements
The cost of property, plant and equipment acquired under finance
lease or hire purchase arrangements are capitalised. The
depreciation policy on these assets is similar to that of the
Group's property, plant and equipment depreciation policy.
Outstanding obligations due under the finance lease or hire
purchase agreements after deducting finance expenses are included
as liabilities in the financial statements under finance lease
payables. Finance charges on finance lease or hire purchase
agreements are allocated to income statement over the period of the
respective agreements using the "sum-of-digits" method.
3. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION (CONT'D)
The Company is principally engaged in providing datacenter
services and other related computers services.
The Company is a private limited liability company, incorporated
and domiciled in Malaysia. The registered office of the Company is
located at 17-4-1, Jalan Semarak Api 2, Diamond Square, Off Jalan
Gombak, 53000 Kuala Lumpur.
The financial statements were authorised for issue by the Board
of Directors in accordance with a resolution of the Directors on 29
March 2012.
4. PROPERTY, PLANT AND EQUIPMENT
Computers,
equipment Capital Total Total
and software work-in- 2011 2010
progress
RM RM RM RM
Cost
At 1 October - 2,892,149 2,892,149 -
Additions 89,652 54,557,415 54,647,067 2,892,149
-------------- ------------ ------------ -----------
At 30 September 89,652 57,449,564 57,539,216 2,892,149
-------------- ------------ ------------ -----------
Accumulated depreciation
At 1 October - - - -
Charge for financial
year 4,474 - 4,474 -
-------------- ------------ ------------ -----------
At 30 September 4,474 - 4,474 -
-------------- ------------ ------------ -----------
Carrying amount
At 30 September 2011 85,178 57,449,564 57,534,742 -
============== ============ ============ ===========
At 30 September 2010 - - - 2,892,149
============== ============ ============ ===========
The capital work-in-progress is the prepayment of expenses for
construction of datacentre building.
5. FIXED DEPOSTS WITH LICENSED BANKS
The Company's fixed deposits are pledged to banks as security
for banking facilities granted to the Company by the banks.
6. DEVELOPMENT COSTS
2011 2010
RM RM
Cost
Addition during the year 1,432,351 -
At 30 September 1,432,351 -
=========== =====
7. TRADE RECEIVABLE
The Company's normal trade credit term is 30 days. Other credit
terms are assessed and approved on a case-by-case basis.
8. OTHER RECEIVABLES
2011 2010
RM RM
Other receivables 104,211 -
Deposits 141,277 -
245,488 -
========= =====
9. SHARE CAPITAL
Number of ordinary
shares of RM1 each Amount
2011 2010 2011 2010
RM RM
Authorised:-
At 1 October 100,000 100,000 100,000 100,000
Created during the financial
year 4,900,000 - 4,900,000 -
----------- --------- ----------- ---------
At 30 September 5,000,000 100,000 5,000,000 100,000
=========== ========= =========== =========
Issued and fully paid:-
At 1 October 2 2 2 2
Issued during the financial
year 2,999,998 - 2,999,998 -
----------- --------- ----------- ---------
At 30 September 3,000,000 2 3,000,000 2
=========== ========= =========== =========
10. BORROWINGS
2011 2010
RM RM
Long term borrowing
Secured
Term loan 35,217,705 -
=========== =====
Short term borrowing
Secured
Bank overdraft 14,563 -
=========== =====
10. BORROWINGS (CONT'D)
The term loan and bank overdraft are secured by the
followings:-
(a) A legal charge over the land of the Company;
(b) Pledged of fixed deposits amounting RM500,000.00
(c) Corporate guarantee by corporate shareholders of the Company; and
(d) Personal guarantee of the Directors of the Company.
The borrowings bears interest rate ranging from 1.75% to 2.0%
per annum plus BLR.
Details of repayment terms are as follows:-
Number of Date of
monthly Monthly commencement Amount outstanding
installments installment of repayment 2011 2010
RM RM RM
Term loan 1 February
1 120 60,915 2013 4,944,996 -
Term loan 1 February
2 120 825,339 2013 30,272,709 -
-------------- -----
35,217,705 -
============== =====
11. FINANCE LEASES PAYABLES
2011 2010
RM RM
Payables within 1 financial year 1,792,694 -
Payables after 1 financial year
but not later than 5 financial 1,280,495 -
year
----------- -----
3,073,189 -
Less: Interest in suspense (250,770) -
----------- -----
2,822,419 -
=========== =====
Present value of finance lease
payables
- within 1 financial year 1,590,149 -
* after 1 financial year but not later 5 financial 1,232,270 -
years
----------- -----
2,822,419 -
=========== =====
12. OTHER PAYABLES
2011 2010
RM RM
Other payables 5,427,165 -
Accruals expenses 37,462 -
5,464,627 -
=========== =====
13. AMOUNT DUE TO IMMEDIATE HOLDING COMPANY
Amount due to immediate holding company is unsecured, bears no
interest and repayable on demand.
14. REVENUE
Revenue represents revenue earned from rental of equipment
activities which inclusive of providing computer equipment and
other related services.
15. PROFIT/(LOSS) BEFORE TAX
Loss before tax has been determined after charging, amongst
others, the following items:-
2011 2010
RM RM
Audit fee
- statutory audit 7,000 1,000
- special audit 7,000 -
Depreciation 4,474 -
Interest expenses 14,563 -
Gain on realised foreign exchange (2,245) -
======== ======
16. TAX EXPENSE
There is no provision for taxation for current financial period
as the Company has no chargeable income.
A reconciliation of income tax expense on loss before tax with
the applicable statutory income tax rate is as follows:-
2011 2010
RM RM
Profit/(Loss) before tax 15,811 (480,444)
========== ==========
Income tax at rate of 25% 3,953 (120,111)
Tax effect in respect of:
Non-allowable expenses 6,412 120,111
Utilisation of deferred tax assets (13,448) -
Deferred tax assets not recognised 3,083 -
- -
========== ==========
16. TAX EXPENSE (CONT'D)
The Company has unutilised tax losses and unabsorbed capital
allowances amounting to approximately RM7,859 (2010: Nil) and
RM53,791 (2010: Nil) respectively. The unutilised tax losses and
unabsorbed capital allowances could be carried forward for
offsetting against future taxable income.
However, the above amounts are subject to the approval of Inland
Revenue Board of Malaysia.
As at balance sheet date, no deferred tax asset is recognised in
the financial statements of the Company on the following deductible
temporary differences:-
2011 2010
RM RM
Deferred tax assets:-
Difference between depreciation
and capital (49,317) -
allowance
Unabsorbed tax losses 7,859 -
Unutilised capital allowances 53,791 -
---------- -----
Deferred tax assets not recognised
in the 12,333 -
financial statements
========== =====
17. CAPITAL COMMITMENTS
2011 2010
RM RM
Capital expenditure
- Approved and contracted for
property, plant and equipment 212,202,858 225,607,851
============= =============
18. EMPLOYEE INFORMATION
2011 2010
RM RM
Staff costs 451,670 448,862
======== ========
The number of employees of the end of the financial year was 12
(2010: 6) persons. Included in the staff cost is defined
contribution plan of RM33,897 (2010: RM33,053).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGUGAWUPPGMB
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