ORIENT TELECOMS PLC
INTERIM FINANCIAL STATEMENTS
For the six months ended 30 September 2020
Director's Statement
I have pleasure in presenting the interim financial statements of Orient Telecoms Plc and its subsidiary undertaking (the "Group") for the six months ended 30 September 2020.
During the financial period, the Group reported a net profit of £7,046 (£0.001 profit per share).
The Group has positioned itself as fully managed overlay network service provider which makes the company very light weight and not requiring to invest heavily in building the network infrastructure which may later be at risk due to sudden change in the technology. Evolution from 4G to 5G is only going to make the company stronger to offer better services to its customers with greater reach.
With the introduction and race to deploy 5G services across the region, Orient Telecoms finds itself in a very safe and secure place by having its approach to provide connectivity riding on 3rd party infrastructure. As the fixed line telecommunication companies keeps on growing their 5G reach, Orient Telecoms will follow their infrastructure to offer its services/platforms to its clients regionally.
The Group is also working with its partners to introduce new platforms, cloud based services and other technology solutions. The next goal is to have its business unit focus on other service sectors such as Satellite based high speed internet and Smart City solutions.
The Group expects 2021 to be another challenging year and competition remain intense as well as the COVID-19 situation globally slowing down the businesses. Whilst it may not be an easy year ahead, the Group is committed to continue its efforts in improving its competitiveness by implementing various strategies include further negotiating better deals with other network provider as our business grows, which will enable efficiency in cost management and optimization. The Group promises to continuously tap the growth opportunities available in the market. Barring any unforeseen circumstances, the Group expects better performance for the year ahead.
Responsibility Statement
The Directors are responsible for preparing the interim financial statements in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority ('DTR') and with International Accounting Standard 34 on Interim Financial Reporting (IAS 34) as adopted by European Union.
The Directors confirm that, to the best of their knowledge, the interim financial statements have been prepared in accordance with IAS 34 as adopted by the European Union. The interim financial statements include a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the first six months and their impact on the interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial period; and
· material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.
Sayed Mustafa Ali
Director
16 December 2020
|
6 months period ended 30 September 2020 |
6 months period ended 30 September 2019 |
|||
|
Notes |
£ |
£ |
||
|
(Unaudited) |
(Unaudited) |
|||
|
INCOME |
4 |
317,512 |
266,445 |
|
|
COST OF SALES |
(143,238) |
(87,293) |
||
|
GROSS PROFIT |
174,274 |
179,152 |
||
|
Other operating expenses |
(173,223) |
(206,680) |
||
|
Finance income/(expenses) |
7,316 |
(1,997) |
||
|
OPERATING PROFIT/(LOSS) BEFORE TAXATION |
8,367 |
(29,525) |
||
|
Income tax expense |
(1,321) |
- |
||
|
PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY |
7,046 |
(29,525) |
||
|
OTHER COMPREHENSIVE INCOME |
||||
|
Items that will or may be reclassified to profit or loss: |
||||
|
Translation of foreign operation |
(3,532) |
7,439 |
||
|
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD |
3,514 |
(22,086) |
||
|
Basic and diluted profit/(loss)per share (₤) |
5 |
0.001 |
(0.003) |
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020
|
As at 30 September 2020 |
As at 31 March 2020 |
||||
|
Notes |
£ |
£ |
|||
|
(Unaudited) |
(Audited) |
||||
|
ASSETS |
|||||
|
NON-CURRENT ASSETS |
|||||
|
Right-of-use assets |
6 |
184,556 |
70,765 |
||
|
CURRENT ASSETS |
|||||
|
Bank |
7 |
343,695 |
350,692 |
||
|
Trade and other receivables |
8 |
299,858 |
229,092 |
||
|
643,553 |
579,784 |
||||
|
CURRENT LIABILITIES |
|||||
|
Trade and other payables |
9 |
239,226 |
177,471 |
||
|
Lease liabilities |
10 |
186,116 |
73,825 |
||
|
425,342 |
251,296 |
||||
|
NET ASSETS |
402,767 |
399,253 |
|||
|
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY |
|||||
|
Share capital |
11 |
1,000,000 |
1,000,000 |
||
|
Translation reserve |
540 |
4,072 |
|||
|
Accumulated losses |
(597,773) |
(604,819) |
|||
|
TOTAL EQUITY |
402,767 |
399,253 |
|||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2020
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020
|
6 months period ended 30 Sept 2020 |
6 month period ended 30 Sept 2019 |
|||
|
£ |
£ |
|||
|
Cash flow from operating activities |
||||
|
Profit/(loss) before tax |
8,367 |
(29,525) |
||
|
Adjustment for: |
||||
|
Unrealised exchange loss |
1,512 |
- |
||
|
Depreciation of right-of-use-assets |
49,954 |
47,177 |
||
|
Finance income |
(10,998) |
(3,097) |
||
|
Tax expense |
(1,321) |
- |
||
|
Interest on lease liabilities |
4,631 |
5,094 |
||
|
Gain on lease termination |
(2,461) |
- |
||
|
49,684 |
19,649 |
|||
|
Changes in working capital |
||||
|
Increase in trade receivables |
(40,577) |
(78,137) |
||
|
(Increase)/Decrease in other receivables |
(30,189) |
213,852 |
||
|
Increase/(Decrease) in trade and other payables |
61,755 |
(241,644) |
||
|
Cash flow from operations |
(9,011) |
(105,929) |
||
|
Interest received |
10,998 |
3,097 |
||
|
Net cash flow generated from/(used in) operating activities |
51,671 |
(83,183) |
||
|
Cash flow from financing activities |
||||
|
Interest paid |
(2,170) |
(5,094) |
||
|
Repayment on lease liability |
(57,121) |
(50,642) |
||
|
Net cash flow used in financing activities |
(59,291) |
(55,736) |
||
|
Net movement in cash and cash equivalents |
(7,620) |
(138,919) |
||
|
Cash and cash equivalents at beginning of period |
350,692 |
529,278 |
||
|
Exchange gain on cash and cash equivalents |
623 |
7,115 |
||
|
Cash and cash equivalents at end of period |
343,695 |
397,474 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Period from 1 April 2020 to 30 September 2020 (unaudited)
|
Share capital |
Translation reserve |
Accumulated losses |
Total |
||||
|
£ |
£ |
£ |
£ |
||||
|
As at 1 April 2020 |
1,000,000 |
4,072 |
(604,819) |
399,253 |
|||
|
Profit for the period |
- |
- |
7,046 |
7,046 |
|||
|
Translation of foreign operation |
- |
(3,532) |
- |
(3,532) |
|||
|
Total comprehensive loss for the period |
- |
(3,532) |
7,046 |
3,514 |
|||
|
As at 30 September 2020 |
1,000,000 |
540 |
(597,773) |
402,767 |
Period from 1 April 2019 to 30 Sept 2019 (unaudited)
|
Share capital |
Translation reserve |
Accumulated losses |
Total |
||||||||
|
£ |
£ |
£ |
£ |
||||||||
|
As at 1 April 2019 |
1,000,000 |
(11,721) |
(589,509) |
398,770 |
|||||||
|
Initial application of IFRS 16 |
- |
- |
(1,395) |
(1,395) |
|||||||
|
As at 1 April 2019 (Restated) |
1,000,000 |
(11,721) |
(590,904) |
397,375 |
|||||||
|
Profit for the period |
- |
- |
(29,525) |
(29,525) |
|||||||
|
Translation of foreign operation |
- |
7,439 |
- |
7,439 |
|||||||
|
Total comprehensive loss for the period |
- |
7,439 |
(29,525) |
(22,086) |
|||||||
|
As at 30 September 2019 |
1,000,000 |
(4,282) |
(623,894) |
371,824 |
|||||||
Period from 1 April 2019 to 31 March 2020 (audited)
Share capital | Translation reserve | Accumulated losses | Total | ||||
£ | £ | £ | £ | ||||
As at 1 April 2019 | 1,000,000 | (11,721) | (589,509) | 398,770 | |||
Initial application of IFRS 16 | - | - | (1,395) | (1,395) | |||
As at 1 April 2019 (Restated) | 1,000,000 | (11,721) | (590,904) | 397,375 | |||
Loss for the period | - | - | (13,915) | (13,915) | |||
Translation of foreign operation | - | 15,793 | - | 15,793 | |||
Total comprehensive loss for the year | - | 15,793 | (13,915) | 1,878 | |||
As at 31 March 2020 | 1,000,000 | 4,072 | (604,819) | 399,253 |
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED TO 30 SEPTEMBER 2020
1. GENERAL INFORMATION
The Company was incorporated in England and Wales on 26 February 2016, as a public company limited by shares under the Act. The principal legislation under which the Company operates is the Act. The registered office of the Company is at the offices of London Registrar, Suite A, 6 Honduras St, London EC1Y 0TH United Kingdom.
Shares of the Company are traded on London Stock Exchange's main market for listed securities since 2017.
2. ACCOUNTING POLICIES
Basis of preparation
The condensed financial information for the period ended 30 September 2020 and 30 September 2019 have been prepared in accordance with IAS 34, Interim Financial Reporting. The condensed financial information is unaudited and does not constitute statutory financial statements. The comparative interim financial information covers the period from 1 April 2019 to 30 September 2019.
The principal accounting policies used in preparing the interim financial statements are the same as those applied in the Company's financial statements as at and for the year ended 31 March 2020, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") issued by the International Accounting Standards Board ("IASB"), including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"). The auditors' report on those accounts was unqualified and unmodified.
The condensed financial information is presented in British Pound Sterling ("£").
The interim financial statements for the six months ended 30 September 2020 was approved by the Directors on 16 December 2020.
Going concern
These interim financial statements have been prepared on a going concern basis.
The Board's review of the accounts, budgets and financial plan leads the directors to believe that the Company has sufficient resources to continue operation for the foreseeable future. The financial accounts are therefore prepared on a going concern basis.
The COVID-19 pandemic led to movement controls in Malaysia from March 2020 onwards which have the impact including (i) staff may be unable to attend their normal place of work and fulfil their normal duties due to falling ill or being required to self-isolate: (ii) the efficiency of our operation may be reduced; (iii) the various providers of 3rd party infrastructure used to supply our services may be unable to cope with the increased demands placed upon them.
These are mitigated by: (i) the Group has proven technology to enable most employees to carry out their duties remotely; (ii) the Group has a strong balance sheet with no gearing, and be able to access equity financing (if required) to cover any temporary pressure on working capital.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of unaudited interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses for the current and its corresponding financial period under review. Actual results may differ from these estimates.
In preparing the unaudited interim financial statements, the significant judgements made by the management in applying the Company's accounting policies and the sources of estimates uncertainty were consistent as those applied to the 2020 Audited Financial Statements.
There were no changes in estimates of amounts of the Company that may have a material effect on financial period ended 30 September 2020.
4. REVENUE
Revenue represents the fair value of the consideration received or receivables for communication services. Revenue is recognised when it is probable that the economic benefits associated with a transaction will flow to the Company and the amount of revenue and associated costs can be measured reliably and over the period to which the charges relate.
All revenue derived from South East Asia region. Revenue excludes value added tax and other sales taxes.
5. LOSS PER SHARE
Basic loss per ordinary 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 period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. There are currently no dilutive potential ordinary shares.
Loss per share attributed to ordinary shareholders
|
6 months period ended 30 September 2020 |
6 months period ended 30 September 2019 |
|
|
Profit/(Loss) for the period (£) |
7,046 |
(29,525) |
|
Weighted average number of shares (Unit) |
10,000,000 |
10,000,000 |
|
Basic and diluted profit/(loss) per share (£) |
0.001 |
(0.003) |
6. RIGHT-OF-USE
|
6 months period ended 30 September 2020 |
6 months period ended 30 September 2019 |
Year ended 30 March 2020 |
|||
|
£ |
£ |
£ |
|||
|
Unaudited |
Unaudited |
Audited |
|||
|
Cost |
|||||
|
Balance at beginning of period |
188,707 |
188,707 |
188,707 |
||
|
Addition during the period |
210,922 |
- |
- |
||
|
Termination of lease |
(188,707) |
- |
- |
||
|
Balance at end of period |
210,922 |
188,707 |
188,707 |
||
|
Accumulated depreciation |
|||||
|
Balance at beginning of period |
(117,942) |
(23,588) |
(23,588) |
||
|
Charges for the period |
(49,954) |
(47,177) |
(94,354) |
||
|
Termination of lease |
141,530 |
- |
- |
||
|
Balance at end of period |
(26,366) |
(70,765) |
(117,942) |
||
|
Net book value |
184,665 |
117,942 |
70,765 |
The Group subsidiary leased an office which the subsidiary has entered into a non-cancellable operating lease agreement. The lease is for a period of 24 months operating lease agreement with an option to renew the lease for a further 12 months.
7. BANK
Cash and Cash equivalents are denominated in the following currencies:
|
As at 30 September 2020 |
As at 31 March 2020 |
||
|
£ |
£ |
||
|
Great Britain Pound |
20,327 |
20,703 |
|
|
Singapore Dollar |
19,508 |
19,514 |
|
|
United States Dollar |
27,265 |
26,667 |
|
|
Malaysia Ringgit |
276,595 |
283,808 |
|
|
343,695 |
350,692 |
8. TRADE AND OTHER RECEIVABLES
|
As at 30 September 2020 |
As at 31 March 2020 |
||
|
£ |
£ |
||
|
Trade receivables |
250,801 |
210,224 |
|
|
Deposit |
23,585 |
- |
|
|
Other receivables |
25,472 |
18,868 |
|
|
299,858 |
229,092 |
9. TRADE AND OTHER PAYABLES
|
As at 30 September 2020 |
As at 31 March 2020 |
||
|
£ |
£ |
||
|
Amount due to related companies |
- |
89,674 |
|
|
Amount due to directors |
6,066 |
4,166 |
|
|
Trade creditors |
208,147 |
35,847 |
|
|
Accruals |
9,222 |
33,800 |
|
|
Other payables |
15,791 |
13,984 |
|
|
239,226 |
177,471 |
10. LEASE LIABILITIES
Lease liabilities are payable as follow:
|
As at 30 September 2020 |
As at 31 March 2020 |
||
|
£ |
£ |
||
|
Less than one year |
103,601 |
73,825 |
|
|
More than one year |
82,515 |
- |
|
|
186,116 |
73,825 |
11. SHARE CAPITAL
Ordinary shares of ₤1 each
|
As at 30 September 2020 £ |
As at 31 March 2020 £ |
|
|
Paid up: |
||
|
10,000,000 ordinary shares at ₤0.10 each |
1,000,000 |
1,000,000 |
At 31 March 2020 and 30 September 2020, the total issued ordinary share of the Company were 10,000,000.
12. SEASONAL OR CYCLICAL FACTORS
There are no seasonal factors that materially affect the Group's operation.
13. RELATED PARTY TRANSACTIONS
In 2017 the company entered into an agreement with a third party which provides consultancy service agreement in relation to the listing exercise of the Company. Orient Management Services Limited is partly owned by Sayed Mustafa Ali, directors of the Company.
|
As at 30 September 2020 |
As at 31 March 2020 |
|
|
£ |
£ |
|
|
Amount due to related parties |
||
|
- Orient Managed Services Limited |
- |
44,391 |
|
- Orient Telecoms Sdn Bhd |
- |
45,283 |
|
Amount due to directors |
||
|
- Sayed Mustafa Ali |
1,666 |
1,666 |
|
- Ross Andrews |
1,250 |
1,250 |
|
- Leon Santos |
1,250 |
1,250 |
|
- Wong Chee Keong |
1,900 |
- |
The amount due to related party is interest-free and they are payable on demand.
Sayed Mustafa Ali is a director of both, the Company and Orient Telecoms Sdn Bhd
14. SUBSEQUENT EVENT
There were no subsequent events after the reporting period.
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