board of directors 12 - mobilityone.com.my · london ec1v 9ee united kingdom nominated allenby...

Company Information 2 Chairman’s Statement 3 Report of the Directors 5 Corporate Governance Report 10 Board of Directors 12

Report of the Independent Auditors 13

Consolidated Income Statement 15

Consolidated Statement of Comprehensive Income 16

Consolidated Statement of Changes in Equity 17

Consolidated Statement of Financial Position 19

Company Statement of Financial Position 21

Consolidated Statement of Cash Flows 22

Company Statement of Cash Flows 23

Notes to the Financial Statements 24

Notice of Annual General Meeting 61

Form of Proxy

2

DIRECTORS Dato’Dr.WanAzmibinAriffin(Non-ExecutiveChairman) Dato’[email protected](ChiefExecutiveOfficer) DerrickChiaKahWai(TechnicalDirector) SeahBoonChin(Non-ExecutiveDirectorsince15.11.2011) Dato’ShamsirbinOmar(Non-ExecutiveDirector) KjetilLanglandBohn(Non-ExecutiveDirector;resignedon1.3.2012)

SECRETARY TMFChannelIslandsLimited 28-30TheParade St Helier Jersey JE1 1EQ Channel Islands

REGISTERED 28-30TheParadeOFFICE St Helier Jersey JE1 1EQ Channel Islands

BUSINESS 2-3,Incubator2ADDRESS TechnologyParkMalaysia BukitJalil,57000KualaLumpur Malaysia Tel:+60389963600

AUDITORS Jeffreys Henry LLP Finsgate5-7CranwoodStreet London EC1V 9EE United Kingdom

NOMINATED Allenby Capital LimitedADVISER Claridge HouseAND BROKER 32 Davoes Street Mayfair London W1K 4ND United Kingdom

Company InformatIon

3

ChaIrman’s statement

INTRODUCTION

MobilityOneLimited'sorganisationstructureisdepictedbelow:

OPERATIONS REVIEW

2011wasanencouragingyear,withtheGroupachievinga36.8%growthinrevenueandasmallprofitaftertax,comparedtolossesinthe3previousyears.

Most revenue was contributed by two of the Group’s offerings. Firstly its fast growing mobile phone prepaid airtimereloadbusiness,viathebankingchannels(suchasmobilebanking,InternetbankingandATMs).Secondlyitselectronicdatacapture(“EDC”)terminalbase,whichincludesthoseatCarrefourMalaysia's23 hypermarkets and 20 express stores throughout the country.

Duringtheyear,MobilityOneMalaysiaentered intoanagreementwithFeldaTradingSdnBhd(“FeldaTrading”) (http://www.felda.net.my) toprovidemobilephoneprepaidairtime reloadsatFeldaTrading’s200plus retail chain stores throughoutMalaysia.FeldaHoldingsBhd (http://www.feldaholdings.com),basedinMalaysia,isoneoftheworld’slargestplantationoperatorsandemploysapproximately50,000people,themajorityofwhomaremigrantworkers.Itoperatesretailchainstoresatmostofitsoilpalmestates.MigrantworkershavebeenidentifiedbyMobilityOneasakeydemographicofpotentialusersofits prepaid airtime reloads.

TheGroup’sinternationalremittanceservicesalsogrewbutlessrapidlyasitisawaitingapprovalfromthecentralbankofMalaysiatoallowittoincreasethenumberofapprovedoutletsfromitscurrent6.However,theDirectorsremainconfident that thisbusinessareawillcontributepositively totheGroup’sfinancialperformanceinthelongterm,withtheopeningofmoreoutletsanddistributionchannels.

Cambodia and Indonesia were not aggressively targeted for expansion as the Group was focusing its time andinvestmentsonexpandingitsbusinessoperationsinMalaysia.However,itwillcontinuetolookoutforfurther opportunities to forge business partnerships in these countries in the near future.

NETOSSSDNBHD(Malaysia)100%

PAYSTATIONSDNBHD(Malaysia)100%

MOBILITYONESDNBHD(Malaysia)100%

MOBILITYONELIMITED(Jersey,ChannelIslands)

PTMOBILITYONEINDONESIA(Indonesia)

95%

4

WepresenttheauditedconsolidatedfinancialstatementsforMobilityOneLimitedfortheyearended31December 2011.

RESUlTS

Forthefinancialyearended31December2011,theGrouprecordedarevenueof£31.9million,representinganincreaseof36.8%(2010revenue:£23.3million).Withthestrongrevenuegrowth,theGroupmadeaprofitaftertaxof£1kcomparedtoalossaftertaxof£0.2millionfor2010.Theincreaseinrevenuewasmainly due to higher sales for the Group’s existing mobile phone’s prepaid airtime reload business through itsbankingchannels(i.e.,mobilebanking,ATMandInternetbanking)andEDCterminals.

CURRENT TRADING AND OUTlOOK

TheDirectorsexpectanimprovedperformancein2012,themaincontributioncomingfromthegrowingbusinessinMalaysiaandnewregionalexpansionplans,withthefollowinghighlights:

(i) Continuedrevenuegrowthfromprepaidairtimereloadsformobilephonesandbillpaymentservices via theGroup’s banking channels andEDC terminals, either organically or through strategic partnerships;

(i) AhighercontributionfromtheCompany’sinternationalremittanceservices,throughtheopeningof newchannelsandcontinueddevelopmentwiththeGroup’sexistingpartnerssuchasFelda;and

(ii) Increasedregionalexpansion,particularlyfromPTMobilityOneIndonesiaandtheCambodianmarket, withahigherexpectedcontributiontorevenuesfromtheseareas.Inaddition,theGrouphasstarted preliminary preparation to expand into the Philippines market.

TheGroupmaintainsitsstronginvestmentinresearchanddevelopment,allowingittocontinuetoinnovate.Notwithstanding thedifficulteconomicconditions, theGroup isnow inprofitandviews the futurewithoptimism.

CONClUSION

OnbehalfoftheBoardofDirectors,Iwouldliketotakethisopportunitytoextendourgreatestappreciationto our management and employees for their continuous efforts and dedication in bringing our Group to greater heights.

................................................... Dato’ Dr. Wan Azmi bin AriffinChairman

Date:28June2012

ChaIrman’s statement (continued)

5

TheDirectorspresenttheirreportwiththefinancialstatementsoftheCompanyandtheGroupfortheyearended 31 December 2011.

PRINCIPAl ACTIVITY

TheprincipalactivityoftheGroupintheyearunderreviewwasinthebusinessofprovidinge-commerceinfrastructure payment solutions and platforms.

KEY PERFORMANCE INDICATORS

Year ended Year ended 31.12.2011 31.12.2010 £ £

Revenue 31,860,274 23,291,599Operatingprofit/(loss) 179,651 (122,436)Profit/(loss)beforetax 28,802 (206,079)Netprofit/(loss) 1,218 (215,118)

KEYS RISKS AND UNCERTANTIES

Operational risks

TheGroupisnotinsulatedfromgeneralbusinessriskaswellascertainrisksinherentintheindustryinwhichtheGroupoperates.Thismayincludetechnologicalchanges,unfavourablechangesinGovernmentandinternationalpolicies,theintroductionofnewandsuperiortechnologyorproductsandservicesbycompetitorsandchangesinthegeneraleconomic,businessandcreditconditions.

Dependency on Distributorships Agreements

TheGroupreliesonvarioustelecommunicationcompaniestoprovidethetelecommunicationproducts.Hencethe Group’s business may be materially and adversely affected if one or more of these telecommunication companiescutorreducedrasticallythesupplyoftheirproducts.TheGrouphasdistributorshipagreementswithtelecommunicationcompaniessuchasDiGiTelecommunicationsSdn.Bhd.,Celcom(M)BerhadandMaxisCommunicationBerhad,whicharesubjecttoperiodicrenewal.

Rapid technological changes/product changes in the e-commerce industry

Theabilitytokeeppacewithrapidtechnologicaldevelopmentinthee-commerceindustrywillaffecttheGroup’srevenuesandprofits.Thee-commerceindustryischaracterisedbyrapidtechnologicalchangesduetochangingmarkettrends,evolvingindustrystandards,newtechnologiesandemergingcompetition.Future success will be dependent upon the Group’s ability to enhance its existing technology solutions and introduce new products and services to respond to the constantly changing technological environment. Thetimelydevelopmentofnewandenhancedservicesorproductsisacomplexanduncertainprocess.

report of the DIreCtors For the year ended 31 December 2011

6

Demand of products and services

TheGroup’sfutureresultsdependontheoveralldemandforitsproductsandservices.Uncertaintyintheeconomic environment may cause some business to curtail or eliminate spending on payment technology. Inaddition,theGroupmayexperiencehesitancyonthepartofexistingandpotentialcustomerstocommitto continuing with its new services.

REVIEW OF BUSINESS

TheresultsfortheyearandfinancialpositionoftheCompanyandtheGroupareasshownintheChairman’sstatement. RESUlTS AND DIVIDENDS

Theconsolidatedlossfortheyearended31December2011is£77,877(2010:profit£217,450)whichhas been transferred to reserves. No dividends will be distributed for the year ended 31 December 2011.

DIRECTORS

TheDirectorsduringtheyearunderreviewwere:

Dato’Dr.WanAzmibinAriffin(Non-ExecutiveChairman)Dato’[email protected](ChiefExecutiveOfficer)DerrickChiaKahWai(TechnicalDirector)SeahBoonChin(Non-ExecutiveDirectorsince15.11.2011)Dato’ShamsirbinOmar(Non-ExecutiveDirector)KjetilLanglandBohn(Non-ExecutiveDirector;resignedon1.3.2012)

DerrickChiaKahWaiandSeahBoonChinwhoareeligibleofferthemselvesforre-electionattheforthcomingAnnual General Meeting.

ThebeneficialinterestsoftheDirectorsholdingofficeat31December2011intheordinarysharesoftheCompany,wereasfollows: Ordinary 2.5p shares Dato’Dr.WanAzmibinAriffinDato’ Hussian @ Rizal bin A. RahmanDerrick Chia Kah WaiSeah Boon ChinDato’ShamsirbinOmarKjetil Langland Bohn

Interest at 31.12.11

Nil30,661,895

NilNil

9,131,677Nil

% of issued capital

Nil32.8

NilNil9.8Nil

report of the DIreCtors(continued)For the year ended 31 December 2011

7

TheDirectorsalsoheldthefollowingordinarysharesunderoption:

Dato’Dr.WanAzmibinAriffinDato’ Hussian @ Rizal bin A. RahmanDerrick Chia Kah WaiSeah Boon ChinDato’ShamsirbinOmarKjetil Langland Bohn

Theoptionsweregrantedon5July2007atanexercisepriceof12.5p.Theperiodoftheoptionsisfive years. SUBSTANTIAl SHAREHOlDERS

Asat14June2012,theCompanyhadbeennotifiedofthefollowingbeneficialinterestsin3%ormoreoftheissuedsharecapitalpursuanttoPartVIofArticle110oftheCompanies(Jersey)Law1991:

Ordinary 2.5p shares

Dato’ Hussian @ Rizal bin A. RahmanThornbeamLimitedDatuk Yahaya bin Mat Ghani Dato’ShamsirbinOmarPerbadanan Nasional Berhad

PUBlICATION OF ACCOUNTS ON COMPANY WEBSITE

FinancialstatementsarepublishedontheCompany’swebsite.ThemaintenanceandintegrityofthewebsiteistheresponsibilityoftheDirectors.TheDirectors’responsibilityalsoextendstothefinancialstatementscontained therein.

INDEMNITY OF OFFICERS

TheGroupdoesnothavetheinsurancecoveragainstlegalactionboughtagainstitsDirectorsandofficers. GROUP'S POlICY ON PAYMENT OF CREDITORS

It is the Group’s normal practice to make payments to suppliers in accordance with agreed terms provided that the supplier has performed in accordance with the relevant terms and conditions.

Number of ordinary shares

30,661,89516,048,92210,500,0009,131,6775,290,000

% of issued capital

32.817.211.29.85.7

Interest at 31.12.11

Nil2,000,0002,000,0002,000,000

NilNil

report of the DIreCtors (continued)For the year ended 31 December 2011

8

EMPlOYEE INVOlVEMENT

TheGroupplacesconsiderablevalueontheinvolvementoftheemployeesandhascontinuedtokeeptheminformedonmattersaffectingtheGroup.Thisisachievedthroughformalandinformalmeetings.

GOING CONCERN

ThesefinancialstatementshavebeenpreparedontheassumptionthattheGroupisagoingconcern.FurtherinformationisgiveninNote2ofthefinancialstatements. STATEMENT OF DIRECTORS' RESPONSIBIlITIES

TheDirectorsareresponsibleforpreparingthefinancialstatements inaccordancewithapplicable lawand regulations.

CompanylawrequirestheDirectorstopreparefinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorshaveelectedtopreparethefinancialstatementsinaccordancewithInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnion.ThefinancialstatementsarerequiredbylawtogiveatrueandfairviewofthestateofaffairsoftheCompanyandtheGroupandoftheprofitorlossoftheGroupforthatperiod.Inpreparingthesefinancialstatements,theDirectorsarerequiredto:

- selectsuitableaccountingpoliciesandthenapplythemconsistently;- makejudgmentsandestimatesthatarereasonableandprudent;- preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethat theCompanywillcontinueinbusinessfortheforeseeablefuture;and- statethatthefinancialstatementscomplywithInternationalFinancialReportingStandards(IFRS)as adopted by the European Union.

TheDirectors are responsible for keepingproper accounting recordswhich disclosewith reasonableaccuracyatanytimethefinancialpositionoftheCompanyandtheGroupandtoenablethemtoensurethatthefinancialstatementscomplywiththeArticle110oftheCompanies(Jersey)Law1991.Theyarealsoresponsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISClOSURE OF INFORMATION TO AUDITORS

SofarastheDirectorsareaware,thereisnorelevantauditinformation(asdefinedbySection234ZAoftheArticle110oftheCompanies(Jersey)Law1991)ofwhichtheGroup'sauditorsareunaware,andeachDirector has taken all the steps that he ought to have taken as a Director in order to make himself aware ofanyrelevantauditinformationandtoestablishthattheGroup'sauditorsareawareofthatinformation.

report of the DIreCtors(continued)For the year ended 31 December 2011

9

AUDITORS

JeffreysHenryLLPhaveexpressedtheirwillingnesstocontinueinoffice.AresolutionproposingthatJeffreysHenryLLPbere-appointedwillbeputtotheforthcomingAnnualGeneralMeeting.

ON BEHAlF OF THE BOARD:

................................................................Dato’ Hussian @ Rizal bin A. RahmanChiefExecutiveOfficer

Date:28June2012

report of the DIreCtors (continued)For the year ended 31 December 2011

10

TheDirectorsacknowledgetheimportanceofthePrinciplessetoutintheCombinedCodeissuedbytheCommitteeonCorporateGovernance.AlthoughtheCombinedCodeisnotcompulsoryforAIMcompanies,the Directors intend to apply the principles as far as practicable and appropriate for a relatively small public companyasfollows:

THE BOARD OF DIRECTORS

TheBoardisresponsibleforstrategy,performance,approvalofmajorcapitalprojectsandtheframeworkofinternalcontrols.ToenabletheBoardtodischargeitsduties,allDirectorsreceiveappropriateandtimelyinformation.BriefingpapersaredistributedtoallDirectorsinadvanceofBoardmeetings.AllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretary,whoisresponsibleforensuringthatBoardprocedures are followed and that applicable rules and regulations are complied with.

AUDIT COMMITTEE AND REMUNERATION COMMITTEE

TheAuditCommitteeandtheRemunerationCommitteecompriseoftheNon-executiveDirectors.TheAuditCommitteereceivesandreviewsreportsfrommanagementandtheCompany'sauditorsrelatingtotheannualandinterimaccountsandtheaccountingandinternalcontrolsystemsoftheCompany.TheAuditCommitteehasunrestrictedaccesstotheGroup'sauditors.

TheRemunerationCommitteereviewstheperformanceoftheExecutiveDirectors,setstheirremuneration,determines the payment of bonuses to Executive Directors and considers the allocation of share options to Directors and employees.

INTERNAl FINANCIAl CONTROl

TheBoardisresponsibleforestablishingandmaintainingtheGroup’ssystemofinternalfinancialcontrolandplacesimportanceonmaintainingastrongcontrolenvironment.ThekeyprocedureswhichtheDirectorshaveestablishedwithaviewtoprovidingeffectiveinternalfinancialcontrolareasfollows:

• TheGroup’sorganisationalstructurehasclearlinesofresponsibility.

• TheCompanypreparesacomprehensiveannualbudgetthatisapprovedbytheBoard.Monthlyresults are reported against the budget and variances are closely monitored by the Directors.

• TheBoard is responsible for identifying themajor business risks facedby theCompanyand for determining the appropriate courses of action to manage those risks.

• TheBoardisinvolvedinregularsubsidiarycompanyBoardmeetingsandwithstructuredoperational reporting requirements.

TheDirectors recognise, however, that such a systemof internal financial control can provide onlyreasonable,notabsolute,assuranceagainstmaterialmisstatementorloss.TheDirectorshavereviewedtheeffectivenessofthesystemofinternalfinancialcontrolthatwillbeoperatedbytheGroup.

Corporate GovernanCe reportFor the year ended 31 December 2011

11

Corporate GovernanCe report (continued)For the year ended 31 December 2011

SERVICE CONTRACTS

TheDirectorshaveservicecontractsandlettersofappointment,whichrequirenotlessthan3months’notice of termination.

MODEl CODE

TheCompanyhasadoptedandoperatesasharedealingcodeforDirectorsandseniorexecutivesonthesame terms as the London Stock Exchange Model Code for companies whose shares have been admitted to AIM.

RElATIONS WITH SHAREHOlDERS

Communicationswithshareholdersaregivenhighpriority.TheBoardusestheAnnualGeneralMeetingtocommunicatewithinvestorsandwelcomestheirparticipation.TheChairmanaimstoensurethattheDirectors are available at Annual General Meetings to answer questions.

12

Dato’ Dr. Wan Azmi bin Ariffin (Non-Executive Chairman)Dato’Dr.WanAzmibinAriffin,aMalaysianaged68,istheNon-ExecutiveChairmanoftheCompany.Hebeganhiscareerasateacherforsecondaryschoolsfrom1965to1977andlaterbecameauniversitylecturerfrom1979to1981.Sincethen,hehas been active in the Malaysian politics. He obtained his Bachelor Degree in Geography from Universiti Sains Malaysia and a Master’sDegreeinEconomicDevelopmentandaPhDinPoliticalEconomicsfromMcGillUniversity,Canada.

Dato’ Hussian @ Rizal bin A. Rahman (Chief Executive Officer)Dato’[email protected],aMalaysianaged50,istheChiefExecutiveOfficeroftheGroup.HehasextensiveexperienceintheITandtelecommunicationsindustriesinMalaysiaandisresponsibleforthedevelopmentoftheGroup’soverallmanagement,particularlyinsettingtheGroup’sbusinessdirectionandstrategies.HeiscurrentlyaNon-ExecutiveDirectorofAsiaMediaGroupBerhad,acompanylistedontheACEMarketofBursaMalaysiaSecuritiesBerhad(MalaysiaStockExchange).HeobtainedacertifiedMasterofBusinessAdministrationfromtheOxfordAssociationofManagement,England.

Derrick Chia Kah Wai (Technical Director)DerrickChiaKahWai,aMalaysianaged41,istheTechnicalDirectoroftheGroup.Hebeganhiscareerasaprogrammerin1994,hethenjoinedGHLSystemsBerhadinJanuary1998asaSoftwareEngineerandwaspromotedtoSoftwareDevelopmentManagerinDecember1999.HeobtainedhisBachelorDegreeinCommerce,majoringinManagementInformationSystemfromUniversityofBritishColumbia,Canada.HejoinedtheGroupinMay2005andisresponsiblefortheGroup’sR&Dteamwhichinclude the architectural design of its technology platform.

Seah Boon Chin (Non-Executive Director)SeahBoonChin,aMalaysianaged40,hassteppeddownastheCorporateFinanceDirectoron15November2011andremainsontheBoardasaNon-ExecutiveDirectoroftheCompany.HebeganhiscareerasaseniorofficerwithChungKhiawBank(Malaysia)Bhd.(nowUnitedOverseasBank(Malaysia)Berhad)from1995to1996.From1997toJanuary2007,heworkedintheCorporateFinanceDepartmentofestablishedfinancialinstitutionsinMalaysiaandSingaporeincludingCIMBInvestmentBankBerhad,AffinInvestmentBankBerhadandPublicInvestmentBankBerhad.HejoinedtheGroupin2007andiscurrentlytheHeadofCorporateFinancewithTASecuritiesHoldingsBerhadinMalaysia.HeobtainedhisBachelorDegreeinCommerce(Honours)withDistinctionfromMcMasterUniversity,Canada.

Dato’ Shamsir bin Omar (Non-Executive Director)Dato’ShamsirbinOmar,aMalaysianaged77isaNon-ExecutiveDirectoroftheGroup.HecommencedhiscareerwiththeMalaysianGovernmentinAugust1960astheAuditorandAccountantintheDepartmentofCooperativeDevelopment.In1966,hewasappointedastheChiefAccountantintheMinistryofEducation,Malaysia.In1967,hewaspromotedtothepositionofDeputyAccountantGeneralintheMinistryofFinance,Malaysia.In1968,hebecametheAccountantGeneral,Malaysia,apostheheldfor22yearsuntilhisretirementinJuly1989.Afterretirementfromgovernmentservicein1989,hejoinedShamsirJasaniGrantThornton,Malaysia.Hehasbeentheaccountingfirm’sChairmansincethen.HeisafellowmemberoftheInstituteof Chartered Accountants in Australia.

Kjetil langland Bohn (Non-Executive Director; resigned on 1.3.2012)KjetilLanglandBohn,aNorwegianaged41isaNon-ExecutiveDirectoroftheCompany.HegraduatedfromtheNorwegianBusiness School in Bergen and began his career as a journalist with Hegnar Media AS from 1996 to 2000. In July 2000 he founded VivaTechnologiesASandactedasCEOuntilFebruary2004whenhefoundedVykeAS.In2009,heleftVykeCommunicationsplcandfoundedAgrinosAS,abio-technologycompany.

BoarD of DIreCtors

13

WehaveauditedthefinancialstatementsofMobilityOneLimitedfortheyearended31December2011whichcomprisetheConsolidatedIncomeStatement,ConsolidatedStatementofComprehensiveIncome,ConsolidatedStatementofChangesinEquity,ConsolidatedStatementofFinancialPosition,CompanyStatementofFinancialPosition,ConsolidatedStatementofCashFlows,CompanyStatementofCashFlowsandtherelatednotes.ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEuropeanUnionand,asregardstheparentcompanyfinancialstatements,asappliedinaccordancewiththeprovisionsoftheCompanies(Jersey)Law1991.

This report ismadesolely to theCompany'smembers,asabody, inaccordancewithArticle113AoftheCompanies(Jersey)Law1991.OurauditworkhasbeenundertakensothatwemightstatetotheCompany'smembersthosematterswearerequiredtostatetotheminanauditors'reportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany'smembersasabody,forourauditwork,forthisreport,orfortheopinions we have formed.

RESPECTIVE RESPONSIBIlITIES OF DIRECTORS AND AUDITORS

AsexplainedmorefullyintheDirectors’ResponsibilitiesStatementsetoutonpages8,thedirectorsareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.OurresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).Thosestandardsrequireusto comply with the Auditing Practices Board’s Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAl STATEMENTS

Anauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:whethertheaccountingpoliciesareappropriateto the group’s and the parent company’s circumstances and have been consistently applied and adequately disclosed;thereasonablenessofsignificantaccountingestimatesmadebythedirectors;andtheoverallpresentationofthefinancialstatements.

Inaddition,wereadallthefinancialandnon-financialinformationintheChairman’sStatement,CorporateGovernanceReportandDirectors’Reportto identifymaterial inconsistencieswiththeauditedfinancialstatements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

OPINION ON THE FINANCIAl STATEMENTS

Inouropinion:

- thefinancialstatementsgiveatrueandfairviewofthestateofaffairsoftheGroupasat31December2011andofthelossoftheGroupfortheyearthenended;

- thegroupfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadoptedbytheEuropeanUnion;and

report of the InDepenDent auDItors to the memBers of moBIlItyone lImIteD

14

- theparentcompanyfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadopted by the European Union and as applied in accordance with the provisions of the Companies (Jersey)Law1991;and

- thefinancialstatementshavebeenpreparedinaccordancewiththerequirementoftheCompanies(Jersey)Law1991.

OPINION ON OTHER MATTERS

InouropiniontheinformationgivenintheReportoftheDirectorsforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements.

MATTERS ON WHICH WE ARE REqUIRED TO REPORT BY ExCEPTION

WehavenothingtoreportinrespectofthefollowingmatterswhereCompanies(Jersey)Law1991requiresustoreporttoyouif,inouropinion:

- adequateaccountingrecordshavenotbeenkeptbytheParentCompany,orreturnsadequateforaudithavenotbeenreceivedfrombranchesnotvisitedbyus;or

- thefinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns;or- certaindisclosuresofDirectors'remunerationspecifiedbylawarenotmade;or- wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

Justin RandallSenior Statutory AuditorFor and on behalf of Jeffreys Henry LLP

Finsgate5-7CranwoodStreetLondonEC1V 9EEUnited Kingdom

Date:28June2012

report of the InDepenDent auDItors to the memBers of moBIlItyone lImIteD (continued)

15

ConsolIDateD InCome statementFor the year ended 31 December 2011

CONTINUING OPERATIONS

RevenueCost of sales

GROSS PROFIT

OtheroperatingincomeAdministration expensesOtheroperatingexpenses

OPERATING PROFIT/(lOSS)

Finance costs

PROFIT/(lOSS) AFTER TAx

Tax


Attributableto:OwnersoftheparentNon-controllinginterest

EARNING PER SHARE

Basicearningspershare(pence)Dilutedearningspershare(pence)

2010£

23,291,599(21,353,213)

1,938,386

179,433(1,807,137)(433,118)

(122,436)

(83,643)

(206,079)

(9,039)

(215,118)

(215,653)535

(215,118)

(0.23)(0.23)

2011£

31,860,274(29,464,977)

2,395,297

142,262

(1,856,629)(501,279)

179,651

(150,849)

28,802

(27,584)

1,218

(1,341)2,559

1,218

0.0010.001

Note

6

7

8

1010

Thenotesformpartofthesefinancialstatements

16

ConsolIDateD statement of ComprehensIve InComeFor the year ended 31 December 2011


OTHER COMPREHENSIVE (lOSS)/INCOME:

Foreign currency translation

TOTAl COMPREHENSIVE (lOSS)/INCOME

Totalcomprehensive(loss)/incomeattributableto:OwnersoftheparentMinority interest

2010£

(215,118)

433,103

217,985

217,450535

217,985

2011£

1,218

(76,536)

(75,318)

(77,877)2,559

(75,318)


17


As at 1 January 2010

Comprehensive (loss)/income

Loss for the yearForeign currency translationTotalcomprehensiveincome

/(loss)fortheyear

As at 31 December 2010

Share premium

£

782,234

--

-

782,234

Total£

2,943,264

(215,653)433,103

217,450

3,160,714

Total£

2,942,337

(215,118)433,026

217,908

3,160,245

Foreign currency

translation reserve

£

552,141

-433,103

433,103

985,244

Share capital

£

2,339,374

--

-

2,339,374

Retained earnings

£

(1,439,436)

(215,653)-

(215,653)

(1,655,089)

Minority Interest

£

(927)

535(77)

458

(469)

Reverseacquisition

reserve£

708,951

--

-

708,951

Non-Distributable Distributable

ConsolIDateD statement of ChanGes In equItyFor the year ended 31 December 2011

18

Share capital is the amount subscribed for shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of the respective shares net of share issue expenses.

ThereverseacquisitionreserverelatestotheadjustmentrequiredbyaccountingforthereverseacquisitioninaccordancewithIFRS3.

TheCompany’sassetsandliabilitiesstatedintheStatementofFinancialPositionweretranslatedintoPoundSterling(£)usingtheclosingrateasattheStatementofFinancialPositiondateandtheincomestatementsweretranslatedinto£usingtheaveragerateforthatperiod.All resulting exchange differences are taken to the foreign currency translation reserve within equity.

Retained earnings represent the cumulative earnings of the Group attributable to equity shareholders.


As at 1 January 2011

Comprehensive (loss)/income

Loss for the yearForeign currency translationTotalcomprehensive(loss)/

income for the year

As at 31 December 2011

Share premium

£

782,234

--

-

782,234

Total£

3,160,714

(1,341)(76,536)

(77,877)

3,082,837

Total£

3,160,245

1,218(76,059)

(74,841)

3,085,404

Foreign currency

translation reserve

£

985,244

-(76,536)

(76,536)

908,708

Share capital

£

2,339,374

--

-

2,339,374

Retained earnings

£

(1,655,089)

(1,341)-

(1,341)

(1,656,430)

Minority Interest

£

(469)

2,559477

3,036

2,567

Reverseacquisition

reserve£

708,951

--

-

708,951

Non-Distributable Distributable

ConsolIDateD statement of ChanGes In equIty (continued)For the year ended 31 December 2011

19


ConsolIDateD statement of fInanCIal posItIonAs at 31 December 2011

ASSETSNon-current assetsIntangible assetsProperty,plantandequipment

Current assetsInventoriesTradeandotherreceivablesShort term investmentCash and cash equivalentsTaxrecoverable

lIABIlITIESCurrent liabilitiesTradeandotherpayablesAmount due to DirectorsLoans and borrowings – securedTaxpayable

NET CURRENT (lIABIlITIES)/ASSETS

Totalassetslesscurrentliabilities

Non-current liabilityLoans and borrowings – secured

NET ASSETS

2010£

2,232,5061,012,6443,245,150

1,349,0581,258,128

1,778732,4363,428

3,344,828

1,020,279238,698

2,070,533-

3,329,510

15,318

3,260,468

100,223

3,160,245

2011£

2,641,303860,429

3,501,732

1,021,5791,641,352

-1,154,665

11,1253,828,721

910,518217,097

3,009,04326,517

4,163,175

(334,454)

3,167,278

81,874

3,085,404

Note

1112

14151617

181920

20

20


ConsolIDateD statement of fInanCIal posItIon (continued)As at 31 December 2011

SHAREHOlDERS’ EqUITY

Equity attributable to equity holders of the Company:Called up share capitalShare premiumReverse acquisition reserveForeign currency translation reserveRetained earnings

Shareholders’ equityNon-controllinginterest

TOTAl EqUITY

2010£

2,339,374782,234708,951985,244

(1,655,089)

3,160,714(469)

3,160,245

2011£

2,339,374782,234708,951908,708

(1,656,430)

3,082,8372,567

3,085,404

Note

2223242930

21


Company statement of fInanCIal posItIonAs at 31 December 2011

ASSETSNon-current assetInvestment in subsidiary companies

Current assetsTradeandotherreceivablesCash and cash equivalents

Current liabilitiesTradeandotherpayablesAmount due to Directors

NET CURRENT ASSETS

NET ASSETS

SHAREHOlDERS’ EqUITY

Equity attributable to equity holders of the Company:Called up share capitalShare premium(Accumulatedloss)/retainedearnings

TOTAl EqUITY

2010£

2,040,930

1,190,8202,082

1,192,902

28,26694,103122,369

1,070,533

3,111,463

2,339,374782,234(10,145)

3,111,463

2011£

2,040,930

985,5432,073

987,616

32,852153,853186,705

800,911

2,841,841

2,339,374782,234(279,767)

2,841,841

Note

13

1517

1819

222323

22


ConsolIDateD statement of Cash flowsFor the year ended 31 December 2011

Cash flow from operating activitiesCash depleted in operations Interest paid Interest received Taxpaid

Net cash used in operating activities

Cash flows from investing activities Purchaseofproperty,plantandequipment Purchase of short term investment Proceeds from disposal of short term investments Proceedsfromdisposalofproperty,plantandequipment Additions to development costs

Netcashgeneratedfrom/(usedin)investingactivities

Cash flows from financing activities Drawdown of short term borrowings Repayment of term loans Repaymentoffinanceleasepayables

Netcashgeneratedfromfinancingactivities

(Decrease)/increase in cash and cash equivalents

Effect of foreign exchange rate changes

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

2010£

(281,553)(83,643)10,956(1,635)

(355,875)

(40,078)(1,713)

-454,005(285,009)

127,205

864,705 (184,393) (12,297)

668,015 439,345 (107,213) 400,304 732,436

2011£

(28,695)(150,849)18,816(8,947)

(169,675)

(56,716)-

1,7335,382

(351,997)

(401,598)

372,703 - (14,948)

357,755 (213,518) 24,373 732,436 543,291

Note

25

11

17

23


Company statement of Cash flowsFor the year ended 31 December 2011

Cash flow from operating activities Cash depleted in operations

Decrease in cash and cash equivalents

Effect of foreign exchange rate changes

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

2010£

(5)

(5)

44

2,043

2,082

2011£

-

(9)

-

2,082

2,073

Note

25

17

24

1. GENERAl INFORMATION

TheprincipalactivityoftheCompanyisinvestmentholding.TheprincipalactivitiesofthesubsidiarycompaniesaresetoutinNote13tothefinancialstatements.Therewerenosignificantchangesinthenatureoftheseactivitiesduringtheyear.

TheCompanyis incorporatedinJersey,TheChannelIslandsundertheCompanies(Jersey)Law1991andis listedonAIM.Theregisteredofficeislocatedat28-30TheParade,StHelier,JerseyJE11EQ,ChannelIslands.Theconsolidatedfinancialstatementsfortheyearended31December2011comprisetheresultsoftheCompanyanditssubsidiarycompaniesundertakings.TheCompany’ssharesaretradedonAIMoftheLondonStockExchange.

MobilityOneLimitedistheholdingcompanyofanestablishedgroupofcompanies(“Group”)basedinMalaysiawhichisinthebusinessofprovidinge-commerceinfrastructurepaymentsolutionsandplatformsthroughtheirproprietarytechnologysolutions,whicharemarketedunderthebrandsMoCSTMandABOSSETM.

TheGrouphasdevelopedanend-to-ende-commercesolutionwhichconnectsvariousserviceprovidersacrossseveralindustriessuchasbanking,telecommunicationandtransportationthroughmultipledistributiondevicessuchasEDCterminals,shortmessagingservices,AutomatedTellerMachineandInternetbanking.

TheGroup’stechnologyplatformisflexible,scalableandhasbeendesignedtofacilitatecash,debitcardandcreditcardtransactions(according to thedevice) frommultipledeviceswhilecontrollingandmonitoring thedistributionofdifferentproducts and services.

2. ACCOUNTING POlICIES

Basis of preparation ThesefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSsandIFRICinterpretations)issuedbytheInternationalAccountingStandardsBoard(IASB),asadoptedbytheEuropeanUnion,andwiththosepartsof theCompanies(Jersey)Law1991applicabletocompaniespreparingtheirfinancialstatementsunderIFRS.Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention.

Going Concern

TheGroup’sbusinessactivities,togetherwiththefactorslikelytoaffectitsfuturedevelopment,performanceandposition,aresetoutinChairman’sstatementonpage3.ThefinancialpositionoftheGroup,itscashflows,liquiditypositionandborrowingfacilitiesaredescribedinthefinancialstatementsandassociatednotes.Inaddition,Note3tothefinancialstatementsincludestheGroup’sobjectives,policiesandprocessesformanagingitscapital;itsfinancialriskmanagementobjectives;detailsofitsfinancialinstrumentsandhedgingactivities;anditsexposurestocreditriskandliquidityrisk.

InordertoassessthegoingconcernoftheGroup,theDirectorshavepreparedcashflowforecastsforcompanieswithintheGroup.ThesecashflowforecastsshowtheGroupexpectsanincreaseinrevenueandwillhavesufficientheadroomoveravailablebankingfacilities.TheGrouphasobtainedbankingfacilitiessufficienttofacilitatethegrowthforecast infutureperiods. No matters have been drawn to the Directors’ attention to suggest that future renewals may not be forthcoming on acceptable terms.

Inaddition,ashareholderhasalsoundertakentoprovidesupporttoenablethegrouptomeetitsdebtsasandwhentheyfall due.

notes to the fInanCIal statements For the year ended 31 December 2011

25

2. ACCOUNTING POlICIES (Continued)

Going Concern (continued)

Aftermakingenquiries,theDirectorshaveareasonableexpectationthattheGrouphasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Accordingly,theycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.

Thefinancialstatementdoesnotincludeanyadjustmentsthatwouldresultiftheforecastwerenotachievedandshareholdersupport was withdrawn.

Estimation uncertainty and critical judgements

Thesignificantareasofestimationuncertaintyandcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountrecognisedinthefinancialstatementsareasfollows:

(i) Acquisitionofsubsidiarycompanies

Intangible assets acquired have been accounted for in accordance with IFRS 3 ‘Business Combinations’ and IAS 38 ‘IntangibleAssets’.Thekeyassumptionsaretheidentifiableintangibleassetsacquired,forecastfuturecashflowsandthediscountrate.ThecarryingamountsoftheGroup’sintangibleassetsasat31December2011aredisclosedinNote11tothefinancialstatements.

(ii) Depreciationofproperty,plantandequipment

Thecostsofproperty,plantandequipmentoftheGrouparedepreciatedonastraight-linebasisovertheusefullivesoftheassets.Managementestimatestheusefullivesoftheproperty,plantandequipmenttobewithin5to10years.Thesearecommonlifeexpectanciesappliedintheindustry.Changesintheexpectedlevelofusageandtechnologicaldevelopmentscouldimpacttheeconomicusefullivesandtheresidualvaluesoftheseassets,thereforefuturedepreciationchargescouldberevised.ThecarryingamountsoftheGroup’sproperty,plantandequipmentasat31December2011aredisclosedinNote12tothefinancialstatements.

(iii) Amortisationofintangibleassets

Software is amortised over its estimated useful life. Management estimated the useful life of this asset to be within 10 years. Changes in the expected level of usage and technological development could impact the economic useful life therefore future amortisation could be revised.

TheGroupdetermineswhethergoodwillisimpairedatleastonanannualbasis.Thisrequiresanestimationofthevalue-in-useofthecashgeneratingunits(“CGU”)towhichgoodwillisallocated.Estimatingavalue-in-useamountrequiresmanagementtomakeanestimationoftheexpectedfuturecashflowsfromtheCGUandalsotochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.

Theresearchanddevelopmentcostsareamortisedonastraight-linebasisoverthelifespanofthedevelopedassets.Management estimated the useful life of these assets to be within 5 years. Changes in the technological developments couldimpacttheeconomicusefullifeandtheresidualvaluesoftheseassets,thereforefutureamortisationchargescould be revised.

notes to the fInanCIal statements (continued)For the year ended 31 December 2011

26


Estimation uncertainty and critical judgements (continued)

(iii) Amortisationofintangibleassets(continued)

ThecarryingamountsoftheGroup’sintangibleassetsasat31December2011aredisclosedinNote11tothefinancialstatements.

However,iftheprojectedsalesdonotmaterialisethereisariskthatthevalueoftheintangibleassetsshownabovewould be impaired.

(iv) Impairmentofgoodwillonconsolidation

TheGroup'scashflowprojectionsincludeestimatesofsales.However,iftheprojectedsalesdonotmaterialisethereis a risk that the value of goodwill would be impaired.

TheDirectorshavecarriedoutadetailedimpairmentreviewinrespectofgoodwill.TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired,byconsideringthenetpresentvalueofdiscountedcashflowsforecastswhichhavebeendiscountedat8.5%.Thecashflowprojectionsarebasedontheassumptionthat the Group can realise projected sales. A prudent approach has been applied with no residual value being factored. Attheperiodend,basedontheseassumptionstherewasnoindicationofimpairmentofthevalueofgoodwillorofdevelopment costs.

ThecarryingamountoftheGroup’sgoodwillonconsolidationasat31December2011isdisclosedintheNote11tothefinancialstatements.

(v) Incometaxes

TheGrouphasexposuretoincometaxesinnumerousjurisdictions.Therearecertaintransactionsandcomputationforwhich theultimate taxdetermination isuncertainduring theordinarycourseofbusiness.Significant judgementis involved especially in determining tax base allowances and deductibility of certain expenses in determining the Group-wideprovisionforincometaxes.TheGrouprecognisesliabilitiesforexpectedtaxissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuch determination is made.

(vi) Contingentliabilities

Whereitisnotprobablethatanoutflowofeconomicbenefitswillberequired,ortheamountcannotbeestimatedreliably,theobligationisdisclosedasacontingentliability,unlesstheprobabilityofoutflowofeconomicbenefitsisremote.Possibleobligations,whoseexistencewillonlybeconfirmedbytheoccurrenceornon-occurrenceofoneormorefutureeventsarealsodisclosedascontingentliabilitiesunlesstheprobabilityofoutflowofeconomicbenefitsisremote.

TheDirectorsareoftheopinionthatnoprovisionisrequiredinrespectofthecontingentliabilitiesasdisclosedinNote28asitisnotprobablethatfuturesacrificeofeconomicbenefitswillberequiredortheamountisnotcapableofreliablemeasurement.


27


IFRS AND IAS UPDATE FOR 31 DECEMBER 2011 ACCOUNTS

(a) New and amended standards adopted by the Group

TheGrouphasadoptedthefollowingnewandamendedIFRSsasof1January2011:

• IAS24(Amendment),‘Relatedpartytransactions’.Theamendedstandardiseffectiveforannualperiodsbeginningonorafter1January2011.Itclarifieddefinitionofarelatedpartytosimplifytheidentificationofsuchrelationshipsandtoeliminateinconsistenciesinitsapplication.Therevisedstandardintroducesapartialexemptionofdisclosurerequirementsforgovernment-relatedentities.Thecompanydoesnotexpectanyimpactonitsfinancialpositionorperformance.

(b) Standards, interpretations and amendments to published standards that are not yet effective

Thefollowingnewstandards,amendmentstostandardsandinterpretationshavebeenissued,butarenoteffectiveforthefinancialyearbeginning1January2011andhavenotbeenearlyadoptedbytheGroup:

• IFRS9,‘Financialinstruments:classificationandmeasurement’,asissuedreflectsthefirstphaseoftheIASBworkonthereplacementofIAS39andappliestoclassificationandmeasurementoffinancialassetsasdefinedinIAS39.Thestandardiseffectiveforannualperiodsbeginningonorafter1January2015.Insubsequentphases,theIASBwilladdressclassificationandmeasurementoffinancialliabilities,hedgeaccountingandderecognition.TheadoptionofthefirstphaseofIFRS9mighthaveaneffectontheclassificationandmeasurementofthecompany’sassets.Atthisjunctureitisdifficultforthecompanytocomprehendtheimpactonitsfinancialpositionandperformance.

• IFRS7,‘Financialinstruments:disclosures(amendment),iseffectiveforannualperiodsbeginningonorafter1July2011.Theamendmentsrequiresadditionalquantitativeandqualitativedisclosuresrelatingtotransfersoffinancialassets,wherefinancialassetsarederecognisedintheirentirety,butwheretheentityhasacontinuinginvolvementinthemandwherefinancialassetsarenotderecognisedintheirentirety.Inadditiontotheabovetherehasbeenasubsequent amendment effective for annual periods beginning on or after 1 January 2013 related to the offsetting offinancialassetsandfinancialliabilities.Theadoptionofthesewillhavenoeffectonthefinancialstatementsofthe company.

• IFRS12DisclosuresofInterestswithOtherEntitiesiseffectivefrom1January2013.Itrequiresincreaseddisclosureaboutthenature,risksandfinancialeffectsofanentity’srelationshipwithotherentitiesalongwithitsinvolvementwithotherentities.Theadoptionofthiswillhavenoeffectonthefinancialstatementsofthecompany.

• IFRS13FairValueMeasurementiseffectivefrom1January2013.Itdefinesfairvalue,setsoutinasingleIFRSaframeworkformeasuringfairvalueandrequiresdisclosuresaboutfairvaluemeasurements.Itincludesathree-levelfairvaluehierarchywhichprioritiestheinputsinafairvaluemeasurement.Theadoptionofthiswillhavenoeffectonthefinancialstatementsofthecompany.


28


(b) Standards, interpretations and amendments to published standards that are not yet effective (continued)

• IFRS10ConsolidatedFinancialStatements,IFRS11JointArrangements,IFRS12DisclosuresofInterestswithOtherEntitiesalongwithrelatedamendmentstoIAS27SeparateFinancialStatementsandIAS28InvestmentsinAssociates and Joint Ventures will have an effective date of 1 January 2013. Early adoption of these standards is permitted,butonlyifallfiveareearlyadoptedtogether.

IFRS 10 does not change consolidation procedures but changes whether an entity is consolidated by revising the definitionofcontrolandprovidesanumberofclarificationsonapplyingthenewdefinitionofcontrol.Theadoptionofthiswillhavenoeffectonthefinancialstatementsofthecompany.

• IAS1PresentationofItemsofOtherComprehensiveIncome–AmendmentstoIAS1iseffectiveforannualperiodsbeginningonorafter1July2012.Itemsthatwouldbereclassifiedtotheprofitandlossatafuturepointwouldbepresentedseparatelyfromitemsthatwillneverbecapitalised.Theadoptionofthiswillhavenoeffectonthefinancialstatements of the company.

• IAS19EmployeeBenefits(Revised)effectiveforannualperiodsbeginningonorafter1January2013.Fordefinedbenefitplanstheabilitytodeferrecognitionofactuarialgainsandlosseshasbeenremoved.Therearenewobjectivesfor disclosure stated in the revised standard along with new or revised disclosure requirements. Plus the recognition ofterminationbenefitsandthedistinctionofshort-termandotherlong-termemployeebenefitshavechanged.Theadoptionofthiswillhavenoeffectonthefinancialstatementsofthecompany.

Basis of consolidation

TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandentitiescontrolledbytheCompany(itssubsidiarycompanies)madeupto31Decembereachyear.ControlisachievedwheretheCompanyhasthepowertogovernthefinancialandoperatingpoliciesofaninvesteeentitysoastoobtainbenefitsfromitsactivities.

Transactions,balancesandunrealisedgainsontransactionsbetweenGroupcompaniesareeliminated.Unrealisedlossesare also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of its subsidiary companieshavebeenchanged(wherenecessary)toensureconsistencywiththepoliciesadoptedbytheGroup.

(i) Subsidiarycompanies

SubsidiarycompaniesareentitiesoverwhichtheGrouphastheabilitytocontrolthefinancialandoperatingpoliciessoastoobtainbenefitsfromtheiractivities.Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableor convertible are considered when assessing whether the Group has such power over another entity.

IntheCompany’sseparatefinancialstatements,investmentsinsubsidiarycompaniesarestatedatcostlessimpairmentlosses.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedinprofitorloss.


29


Basis of consolidation (continued) (ii) Basisofconsolidation

On22June2007MobilityOneLimitedacquiredtheentireissuedsharecapitalofMobilityOneSdn.Bhd.bywayofashareforshareexchange,underIFRSthistransactionmeetsthecriteriaofaReverseAcquisition.Theconsolidatedaccountshave therefore been presented under the Reverse Acquisition Accounting principles of IFRS 3 and show comparatives forMobilityOneSdn.Bhd..Forfinancialreportingpurposes,MobilityOneSdn.Bhd.(thelegalsubsidiarycompany)istheacquirerandMobilityOneLimited(thelegalparentcompany)theacquiree.

NogoodwillhasbeenrecordedandthedifferencebetweentheparentCompany’scostofinvestmentandMobilityOneSdn. Bhd.’s share capital and share premium is presented as a reverse acquisition reserve within equity on consolidation.

TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandallentitiescontrolledbyitaftereliminatinginternaltransactions.ControlisachievedwheretheGrouphasthepowertogovernthefinancialandoperatingpoliciesofaGroupundertakingsoastoobtaineconomicbenefitsfromitsactivities.Undertakings’resultsareadjusted,whereappropriate,toconformtoGroupaccountingpolicies.

Subsidiarycompaniesareconsolidatedfromthedateofacquisition,beingthedateonwhichtheGroupobtainscontrol,andcontinuetobeconsolidateduntilthedatethatsuchcontrolceases.Inpreparingtheconsolidatedfinancialstatements,intra-groupbalances,transactionsandunrealisedgainsorlossesareeliminatedinfull.Uniformaccountingpoliciesareadoptedintheconsolidatedfinancialstatementsforliketransactionsandeventsinsimilarcircumstances.

Thesharecapitalintheconsolidatedstatementofchangesinequityfortheboththecurrentandcomparativeperioduses a historic exchange rate to determine the equity value.

AspermittedbyandinaccordancewithArticle110oftheCompanies(Jersey)Law1991,aseparateincomestatementofMobilityOneLimited,isnotpresented.

Revenue recognition

RevenueisrecognisedwhenitisprobablethateconomicbenefitsassociatedwiththetransactionwillflowtotheGroupandthe amount of the revenue can be measured reliably.

(i) Revenuefromtradingactivities

RevenueinrespectofusingtheGroup’se-Channelplatformarisesfromthesalesofprepaidcredit,salescommissions received and fees per transaction charged to customers. Revenue for sales of prepaid credit is deferred until such time as the products and services are delivered to end users. Sales commissions and transaction fees are received from various product and services providers and are recognised when the services are rendered and transactions are completed.


30


Basis of consolidation (continued)

(i) Revenuefromtradingactivities(continued)

Revenuefromsolutionsalesandconsultancycomprisesalesofsoftwaresolutions,hardwareequipment,consultancy feesandmaintenanceand support services. For sales of hardwareequipment, revenue is recognisedwhen the significantrisksassociatedwiththeequipmentaretransferredtocustomersortheexpiryoftherightofreturn.Forall otherrelatedsales,revenueisrecognisedupondeliverytocustomersandovertheperiodinwhichservicesareexpected to be provided to customers.

(ii) Interestincome

Interest income is recognised on a time proportion basis that takes into account the effective yield on the asset.

(iii) Rentalincome

Rental income is recognised on an accrual basis.

Employee benefits

(i) Shorttermemployeebenefits

Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasanexpenseintheperiodinwhichtheassociated services are rendered by employees of the Group. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensationabsences.Shorttermnon-accumulatingcompensatedabsencessuchassickandmedical leavearerecognised when the absences occur.

Theexpectedcostofaccumulatingcompensatedabsencesismeasuredastheadditionalamountexpectedtobepaidas a result of the unused entitlement that has accumulated at the Statement of Financial Position date.

(ii) Definedcontributionplans

Asrequiredbylaw,companiesinMalaysiamakecontributionstothestatepensionscheme,theEmployeesProvidentFund(“EPF”).Suchcontributionsarerecognisedasanexpenseintheincomestatementintheperiodtowhichtheyrelate.Theothersubsidiarycompaniesalsomakecontributiontotheirrespectivecountries’statutorypensionschemes.

Finance leases

Assetsfinancedbyleasingarrangements,whichgiverightsapproximatingtoownership,aretreatedasiftheyhadbeenpurchased outright and are capitalised and depreciated over the shorter of the estimated useful life of the assets and the periodoftheleases.Thecapitalelementoffuturerentalsistreatedasaliabilityandtheinterestelementischargedagainstprofitsinproportiontothebalancesoutstanding.Therentalcostsofallotherleasedassetsarechargedagainstprofitsonastraight-linebasisovertheleaseterm.


31


Operating leases

Leases inwhichasignificantportionof therisksandrewardsofownershipareretainedby the lessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofincentivesreceivedfromthelessor)arechargedtotheincome statement.

Functional currency translation

(i) Functionalandpresentationcurrency

ItemsincludedinthefinancialstatementsofeachoftheGroup’sentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(thefunctionalcurrency).ThefunctionalcurrencyoftheGroupisRinggitMalaysia(RM).TheconsolidatedfinancialstatementsarepresentedinPoundSterling(£),whichistheCompany’spresentational currency as this is the currency used in the country in which the entity is listed.

AssetsandliabilitiesaretranslatedintoPoundSterling(£)atforeignexchangeratesrulingattheStatementofFinancialPositiondate.ResultsandcashflowsaretranslatedintoPoundSterling(£)usingaverageratesofexchangefortheperiod.

(ii) Transactionsandbalances

Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from thetranslationatyear-endexchangeratesofmonetaryassetsand liabilitiesdenominated in foreigncurrenciesarerecognised in the income statement.

Thefinancialinformationsetoutbelowhasbeentranslatedatthefollowingrates:

Exchange rate (RM: £) At Statement of Financial Average for Position date year Year ended 31 December 2011 4.90 4.91 Year ended 31 December 2010 4.78 4.96


32


Taxation

Taxationontheincomestatementforthefinancialperiodcomprisescurrentanddeferredtax.Currenttaxistheexpectedamountoftaxespayableinrespectofthetaxableprofitforthefinancialperiodandismeasuredusingthetaxratesthathavebeen enacted at the Statement of Financial Position date.

Deferred tax is recognised on the liability method for all temporary differences between the carrying amount of an asset or liability in the Statement of Financial Position and its tax base at the Statement of Financial Position date. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhich thedeductible temporarydifferences,unused tax lossesandunused taxcreditscanbeutilised. Deferred tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial recognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realisedortheliabilityissettled,basedonthetaxratesthathavebeenenactedorsubstantivelyenactedbytheStatementofFinancialPositiondate.ThecarryingamountofadeferredtaxassetisreviewedateachStatementofFinancialPositiondateandisreducedtotheextentthatitbecomesprobablethatsufficientfuturetaxableprofitwillbeavailable.

Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity, inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillornegativegoodwill.

Intangible assets

(i) Researchanddevelopmentcosts

All research costs are recognised in the income statement as incurred.

Expenditure incurred on projects to develop new products is capitalised and deferred only when the Group can demonstrate the technical feasibilityofcompleting the intangibleassetso that itwillbeavailable foruseorsale, its intention tocompleteanditsabilitytouseorselltheasset,howtheassetwillgeneratefutureeconomicbenefits,theavailabilityofresources to complete the project and the ability to measure reliably the expenditure during the development. Product development expenditures which do not meet these criteria are expensed when incurred.

Developmentcosts,consideredtohavefiniteusefullives,arestatedatcostlessanyimpairmentlossesandareamortisedthroughotheroperatingexpensesintheincomestatementusingthestraight-linebasisoverthecommerciallivesoftheunderlyingproductsnotexceedingfiveyears.Impairmentisassessedwheneverthereisanindicationofimpairmentand the amortisation period and method are also reviewed at least at each Statement of Financial Position date.

(ii) Goodwillonconsolidation

Goodwillacquiredinabusinesscombinationisinitiallymeasuredatcost,representingtheexcessofthepurchasepriceovertheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilities.


33


Intangible assets (continued)

(ii) Goodwillonconsolidation(continued)

Following the initial recognition,goodwill ismeasuredatcost lessaccumulated impairment losses.Goodwill isnotamortisedbutinstead,itisreviewedforimpairmentannuallyormorefrequentwhenthereisobjectiveevidencethatthecarryingvaluemaybeimpaired,inaccordancewiththeaccountingpolicydisclosedinimpairmentofassets.

Gains or losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Impairment of assets

Thecarryingamountsofassetsarereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.

Ifanysuchindicationexiststhentheasset’srecoverableamountisestimated.Forgoodwillthathasanindefiniteusefullife,recoverableamountisestimatedateachreportingdateormorefrequentlywhenindicationsofimpairmentareidentified.

Animpairment lossisrecognisedif thecarryingamountofanassetor itscash-generatingunitexceedsitsrecoverableamountunlesstheassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossisrecogniseddirectlyagainstany revaluation surplus for the asset to the extent that the impairment loss does not exceed the amount in the revaluation surplusforthatsameasset.Acash-generatingunitisthesmallestidentifiableassetgroupthatgeneratescashflowsthatare largely independent from other assets and groups. Impairment losses are recognised in the income statement in the periodinwhichitarises.Impairmentlossesrecognisedinrespectofcash-generatingunitsareallocatedfirsttoreducethecarrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (groupofunits)onaproratabasis.

Therecoverableamountofanassetorcash-generatingunitisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.

Impairment loss on goodwill is not reversed in a subsequent period. An impairment loss for an asset other than goodwill is reversedif,andonlyif,therehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Thecarryingamountofanassetotherthangoodwillisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Areversalofimpairmentlossforanassetotherthangoodwillisrecognisedintheincomestatementunlesstheassetiscarriedatrevaluedamount,inwhichcase,suchreversalistreatedasarevaluationincrease.

Property, plant and equipment

(i) Recognitionandmeasurement

Property,plantandequipmentarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses.


34

2. ACCOUNTING POlICIES (Continued) Property, plant and equipment (continued)

(i) Recognitionandmeasurement(continued)

Cost includesexpendituresthataredirectlyattributable to theacquisitionof theasset.Thecostofself-constructedassets includes thecostofmaterialsanddirect labour,anyothercostsdirectlyattributable tobringing theasset toworkingconditionforitsintendeduse,andthecostsofdismantlingandremovingtheitemsandrestoringthesiteonwhich they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

Thecostofproperty,plantandequipmentrecognisedasaresultofabusinesscombinationisbasedonfairvalueatacquisitiondate.Thefairvalueofpropertyistheestimatedamountforwhichapropertycouldbeexchangedonthedateof valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein thepartieshadeachactedknowledgeably,prudentlyandwithoutcompulsion.Thefairvalueofotheritemsofplantandequipment is based on the quoted market prices for similar items.

Whensignificantpartsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitems(majorcomponents)ofproperty,plantandequipment.

(ii) Subsequentcosts

Thecostofreplacingpartofanitemofproperty,plantandequipmentisrecognisedinthecarryingamountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthepartwillflowtotheGroupanditscostcanbemeasuredreliably.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedintheincomestatement as incurred.

(iii)Depreciation

Depreciationisrecognisedintheincomestatementonastraight-linebasisovertheestimatedusefullivesofproperty,plantandequipment.Leasedassetsaredepreciatedovertheshorteroftheleasetermandtheirusefullives.Property,plant and equipment under construction are not depreciated until the assets are ready for their intended use.

Theestimatedusefullivesforthecurrentandcomparativeperiodsareasfollows:

Motor vehicles 5 yearsElectronic Data Capture equipment 10 yearsComputer equipment 5 yearsComputer software 10 yearsFurnitureandfittings 10yearsOfficeequipment 10yearsRenovation 10 years

Thedepreciableamountisdeterminedafterdeductingtheresidualvalue.


35

2. ACCOUNTING POlICIES (Continued) Property, plant and equipment (continued)

(iii)Depreciation(continued)

Depreciationmethods,usefullivesandresidualvaluesarereassessedateachfinancialperiodend.

Upondisposalofanasset,thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetsischargedorcreditedtotheincomestatement.Ondisposalofarevaluedasset,theattributablerevaluationsurplusremaining in the revaluation reserve is transferred to the distribution reserve.

Investments

Investments in subsidiary companies are stated at cost less any provision for impairment.

Inventories

Inventoriesarevaluedatthelowerofcostandnetrealisablevalueandaredeterminedonthefirst-in-first-outmethod,aftermaking due allowance for obsolete and slow moving items. Net realisable value is based on estimated selling price in the ordinary course of business less the costs of completion and selling expenses.

Trade and other receivables

Tradeandotherreceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredattheircostwhenthecontractualrighttoreceivecashorotherfinancialassetsfromanotherentityisestablished.

A provision for doubtful debts is made when there is objective evidence that the Group will not be able to collect all amounts dueaccordingtotheoriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisationanddefaultordelinquencyinpaymentsareconsideredindicatorsthatatrade and other receivables are impaired.

Cash and cash equivalents

Cashandcashequivalentsincludecashinhand,depositsheldatcallwithbanks,othershort-termhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlesswhichhaveaninsignificantriskofchangesinvalueandbankoverdrafts.ForthepurposeofStatementofCashFlows,cashandcashequivalentsarepresentednetofbankoverdrafts. Trade and other payables

Tradeandotherpayablesarerecognisedinitiallyatfairvalueoftheconsiderationtobepaidinthefutureforgoodsandservices received.


36


Borrowing costs

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets,whichareassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,arecapitalisedaspartofthecostofthoseassets,untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.

Whentheborrowingsaremadespecificallyforthepurposeofobtainingaqualifyingasset,theamountofborrowingcostseligible for capitalisation is the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of funds drawndown from those borrowings. Whentheborrowingsaremadegenerally,andusedforthepurposeofobtainingaqualifyingasset,theborrowingcostseligible for capitalisation are determined by applying a capitalisation rate which is weighted on the borrowing costs applicable totheGroup’sborrowingsthatareoutstandingduringthefinancialperiod,otherthanborrowingsmadespecificallyforthepurpose of acquiring another qualifying asset.

Borrowingcostswhicharenoteligibleforcapitalisationarerecognisedasanexpenseintheprofitorlossintheperiodinwhich they are incurred.

Equity instruments

InstrumentsthatevidencearesidualinterestintheassetsoftheGroupafterdeductingallofitsliabilitiesareclassifiedasequity instruments. Issued equity instruments are recorded at proceeds received net of direct issue costs.

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofnewsharesoroptionsareshowninequityasadeduction,netofvalueaddedtax,fromtheproceeds.

Financial instruments

FinancialinstrumentscarriedontheStatementofFinancialPositionincludecashandbankbalances,deposits,investments,receivables,payablesandborrowings.FinancialinstrumentsarerecognisedintheStatementofFinancialPositionwhenthe Group has become a party to the contractual provisions of the instrument.

Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement.Interest,dividendsandgainsandlossesrelatingtoafinancialinstrumentclassifiedasaliability,arereportedasanexpenseor income.Distributions toholdersoffinancial instrumentsclassifiedasequityarechargeddirectly toequity.Financialinstruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.

TheparticularrecognitionmethodadoptedforfinancialinstrumentsrecognisedontheStatementofFinancialPositionis

disclosed in the individual accounting policy statements associated with each item.

Share based payments Charges for employees services received in exchange for share based payments have been made for all options granted

inaccordancewithIFRS2“ShareBasedPayments”optionsgrantedundertheGroup’semployeeshareschemeareequitysettled.ThefairvalueofsuchoptionshasbeencalculatedusingaBlack-scholesmodel,baseduponpubliclyavailablemarketdata,andischargedtotheprofitorlossoverthevestingperiod.


37

3. FINANCIAl INSTRUMENTS

(a) Financial risk management objectives and policies

TheGroupandtheCompany’sfinancialriskmanagementpolicyistoensurethatadequatefinancialresourcesareavailableforthedevelopmentoftheGroupandoftheCompany’soperationswhilstmanagingitsfinancialrisks,includinginterestraterisk,creditrisk,foreigncurrencyexchangerisk,liquidityandcashflowriskandcapitalrisk.TheGroupandtheCompanyoperateswithinclearlydefinedguidelinesthatareapprovedbytheBoardandtheGroup’spolicyisnotto engage in speculative transactions.

(b) Interest rate risk

Cashflowinterestrateriskistheriskthatthefuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.Fairvalueinterestrateriskistheriskthatthevalueofafinancialinstrumentwillfluctuateduetochangesinmarketinterestrates.AstheGrouphasnosignificantinterest-bearingfinancialassets,theGroup’sincomeandoperatingcashflowsaresubstantiallyindependentofchangesinmarketinterestrates.

TheGroup’sinterestrateriskarisesprimarilyfrominterest-bearingborrowings.BorrowingsatfloatingratesexposetheGrouptocashflowinterestraterisk.BorrowingsobtainedatfixedratesexposetheGrouptofairvalueinterestraterisk.


38

3.

FIN

AN

CIA

l IN

STR

UM

ENTS

(Con

tinue

d)

Thefollowingtablessetoutthecarryingam

ounts,theeffectiveinterestra

tesasattheStatementofF

inancialPositiondateandtheremaining

maturitiesoftheGroup’sfinancialinstrumentsthatareexposedtointerestraterisk:

At 3

1 D

ecem

ber 2

011

Fixedrate:

Fixe

d de

posi

tFi

nanc

e le

ases

Floatingrate:

Bank

ove

rdra

ftBa

nker

s’ a

ccep

tanc

eLe

tter o

f cre

dits

Trustreceipts

At 3

1 D

ecem

ber 2

010

Fixedrate:

Fixe

d de

posi

tFi

nanc

e le

ases

Floatingrate:

Bank

ers’

acc

epta

nce

Lette

r of c

redi

tsTrustreceipts

Total £

705,208

(97,745)

(611,374)

(1,345,941)

(595,189)

(440,668)

467,777

(115,420)

(1,101,700)

(536,420)

(417,216)

4-5

year

s £ -(13,163) - - - - -

(19,366) - - -

2-3years £ -

(17,906) - - - - -

(17,282) - - -

With

in1

year £

705,208

(15,871)

(611,374)

(1,345,941)

(595,189)

(440,668)

467,777

(15,197)

(1,101,700)

(536,420)

(417,216)

Mor

e th

an5

year

s £ -(14,992) - - - - -

(29,012) - - -

3-4

year

s £ -(18,924) - - - - -

(18,324) - - -

1-2

year

s £ -(16,889) - - - - -

(16,239) - - -

Effe

ctiv

eIn

tere

st R

ate %

2.92

3.08

8.20

5.22

1.57

6.58

2.58

3.08

5.22

2.44

2.79

Not

e

17 21 21 21 21 21 17 21 21 21 21


39

3. FINANCIAl INSTRUMENTS (Continued)

(c) Credit risk

TheGroup’sandtheCompany’sexposuretocreditriskarisesmainlyfromreceivables.Receivablesaremonitoredonanongoing basis via management reporting procedure and action is taken to recover debts when due. At each Statement ofFinancialPositiondate,therewasnosignificantconcentrationofcreditrisk.ThemaximumexposuretocreditriskfortheGroupandtheCompanyisthecarryingamountofthefinancialassetsshownintheStatementofFinancialPosition.

(d) Foreign currency exchange risk

TheGroupandtheCompanyisexposedtoforeigncurrencyriskonsales,purchasesandborrowingsthataredenominatedinacurrencyotherthanRinggitMalaysia.ThecurrencygivingrisetothisriskisprimarilyUSdollars.TheGroupandthe Company maintains a natural hedge that minimises the foreign exchange exposure by matching foreign currency income with foreign currency costs.

TheGroupdoesnotconsideritnecessarytoenterintoforeignexchangecontractsinmanagingitsforeignexchangeriskresultingfromcashflowsfromtransactionsdenominatedinforeigncurrency,giventhenatureofthebusinessforthe time being.

ThenetunhedgedfinancialassetsoftheGroupthataredenominatedinitsfunctionalcurrencyareasfollows:

Net Financial Asset Held in Non-Functional Currency

Indonesian Rupiah US Dollars Total £ £ £

Group At 31 December 2011 Tradereceivables - 63,636 63,636 Group At 31 December 2010 Tradereceivables 49,896 95,144 145,040

(e) Liquidity and cash flow risks

TheGroupand theCompanyseeks toachieveaflexibleandcosteffectiveborrowingstructure toensure that theprojected net borrowing needs are covered by available committed facilities. Debt maturities are structured in such a way to ensure that the amount of debt maturing in any one year is within the Group’s and the Company’s ability to repayand/orrefinance.

TheGroupandtheCompanyalsomaintainsacertainlevelofcashandcashconvertibleinvestmentstomeetitsworkingcapital requirements.


40

3. FINANCIAl INSTRUMENTS (Continued)

(f) Capital risk

TheGroup’sandtheCompany’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sandtheCompany’sabilitytocontinueasagoingconcerninordertoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.Inordertomaintainoradjustthecapitalstructure,theGroupandtheCompanymayadjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issue new shares or sell assets to reduce debt.


41

4. EMPlOYEES AND DIRECTORS

EMPlOYEESWages,salariesandbonusesSocial security contributionContributiontodefinedcontributionplanOtherstaffrelatedexpenses

Less:Capitalisedindevelopmentcosts(Note11)

DIRECTORSFeesWages,salariesandbonusesSocial security contributionContributiontodefinedcontributionplanTotalremunerationLess:Capitalisedindevelopmentcosts(Note11)

5. SEGMENTAl ANAlYSIS

TheGroup’sactivitiesaretreatedasasingleclassofbusiness,allarisingfromgoodsandservicesprovidedintheFarEast.Accordingly,nosegmentalanalysisofrevenues,profits,assetsandliabilitiesisavailableforpresentation.

6. FINANCE COSTS

Bankers’ acceptance interestTermloansinterestFinance lease interest Bank guarantee interestBank overdraftLetter of credit interestTrustreceiptinterest

2010£

56,7733,1248,5253,318

-6,2975,606

83,643

2011£

91,6151,3776,1484,8336,4037,53732,936

150,849

Group

Group

2010£

430,5136,02586,43324,421547,392(189,861)

357,531

115,85577,733

1678,624

202,379(55,180)

147,199

2011£

514,5785,16449,15225,150594,044(246,005)

348,039

115,50098,949

25311,247

225,949(59,959)

165,990


42

7. PROFIT/(lOSS) BEFORE TAx

Theprofit/(loss)beforetaxisstatedaftercharging/(crediting):

Auditors’ remuneration Auditors’ remuneration overprovidedEmployeebenefitsexpense(excludingDirectors’remuneration)(Note4)Directors’remuneration(Note4)Depreciation(Note12)Rental of premises and equipmentRental of motor vehiclesAmortisationofintangibleassets(Note11)Amortisationofdevelopmentcosts(Note11)Property,plantandequipmentwrittenoffImpairment loss on development costsInventories written offBad debts written offDeposits written offOperatingleaseexpenseInterest incomeRental incomeProfitondisposalofproperty,plantandequipmentGain on foreign exchange-realised

IncludedintheauditfeefortheGroupisanamountof£13,100(2010:£13,700)inrespectoftheCompany.

2010£

20,473-

357,531147,199181,702

--

76,94384,53612,927

-455

62,8893,34879,425(10,956)(6,746)(38,075)

(100,996)

2011£

19,547(1,585)

348,039165,990182,77780,4862,982

176,302143,253

-63,695

-31,096

--

(18,816)(3,229)(3,146)

(80,730)

Group


43

8. TAx

Current tax expense:UK corporation tax for the yearForeign tax

Underprovisioninprioryear:Foreign tax

A reconciliation of income tax expense applicable to loss before tax at the statutory income tax rate to income tax expense attheeffectiveincometaxrateoftheGroupisasfollows:

Profit/(loss)beforetax

TaxationatUKCorporationtaxrateof27%(2010:28%)Effect of different tax rates in other countriesEffect of expenses not deductible for taxEffect of utilisation of previous unrecognised unabsorbed capital allowanceDeferred tax not recognised in respect of current year’s tax losses and unabsorded capital allowancesTemporarydifferencesinrespectofproperty,plantandequipmentnotrecognisedEffect of development costs capitalised deductible for tax purposesUnderprovision of tax expense in prior year

Taxexpensefortheyear

Currentincometaxiscalculatedattheweightedaveragetaxrateof27%(2010:28%).

Thedirectsubsidiarycompany,MobilityOneSdn.Bhd.,wasgrantedPioneerStatusbytherelevantauthoritiesforanadditionalperiodoffiveyearseffectivefrom26April2010to25April2015.

Group

2010£

(206,079)

(57,703)930

75,454(21,820)

8,22175,209(71,252)

-

9,039

2011£

28,802

7,776(1,187)92,447

(162,968)

62,78228,647

-87

27,584

Group

2010£

-9,039

-

9,039

2011£

-27,497

87

27,584


44

8. TAx (Continued)

Asat31December2011,theunrecogniseddeferredtaxassetsoftheGroupareasfollows:

Unabsorbed tax lossesUnabsorbed capital allowancesTaxabletemporarydifferences

Thepotentialnetdeferred taxassetsamounting to£73,311 (2010:£347,681)hasnotbeen recognised in thefinancialstatementsbecauseitisnotprobablethatfuturetaxableprofitwillbeavailableagainstwhichthesubsidiarycompanycanutilisethebenefits.

Theavailabilityoftheunusedtaxlossesandunabsorbedcapitalallowancesforoffsettingagainstfuturetaxableprofitsofthe subsidiary company is subject to no substantial changes in shareholdings of the subsidiary company under Section 44(5A)and(5B)ofIncomeTaxAct,1967.

9. lOSS OF COMPANY

TheprofitorlossoftheCompanyisnotpresentedaspartofthesefinancialstatements.TheCompany’slossforthefinancialyearwas£269,622(2010:£43,042).

10. EARNINGS PER SHARE

Consolidatedlossaftertax(£)

Weighted average number of shares in issueFully diluted weighted average number of shares in issue

Basicearningspershare(pence)Dilutedearningspershare(pence)

Thebasicearningspershareiscalculatedbydividingthelossof£1,341(2010:lossof£215,653)attributabletoordinaryshareholders by theweighted average number of ordinary shares outstanding during the year,which is 93,574,951 (2010:93,574,951).

Thedilutedearningspershareiscalculatedusingtheweightedaveragenumberofsharesadjustedtoassumetheconversionofalldilutivepotentialordinaryshares.Fortheyearended31December2011,thedilutedearningspershareisequivalentto the basic earnings per share as the exercise price of the share options is above the current market price.

2010

(215,653)

93,574,95193,574,951

(0.23)(0.23)

2011

(1,341)

93,574,95193,574,951

0.0010.001

Group

2010£

139,520208,161

-

347,681

2011£

38,76634,701(156)

73,311

Group


45

11. INTANGIBlE ASSETS

GROUP31 December 2011

COSTAt 1 January 2011ReclassificationfrominventoriesAdditionsForeign exchange difference

At 31 December 2011

ACCUMUlATED AMORTISATION AND IMPAIRMENT lOSSAt 1 January 2011Amortisation charge for the periodImpairment loss for the periodForeign exchange difference

At 31 December 2011

NET CARRYING AMOUNTAt 31 December 2011

GROUP31 December 2010

COSTAt 1 January 2010AdditionsWritten offForeign exchange difference

At 31 December 2010

ACCUMUlATED AMORTISATION AND IMPAIRMENT lOSSAt 1 January 2010Amortisation charge for the periodWritten offForeign exchange difference

At 31 December 2010

NET CARRYING AMOUNTAt 31 December 2010

Total£

2,962,943499,065351,997(75,569)

3,738,436

730,437319,55463,695(16,553)

1,097,133

2,641,303

Total£

2,318,671285,009

-359,263

2,962,943

489,271161,479

-79,687

730,437

2,232,506

Development Costs

£

734,772-

351,997(16,530)

1,070,239

224,759143,25263,695(4,872)

426,834

643,405

Development Costs

£

381,535285,009

-68,228

734,772

119,09684,536

-21,127

224,759

510,013

Goodwill on consolidation

£

1,429,292--

(33,426)

1,395,866

----

-

1,395,866


£

1,242,603--

186,689

1,429,292

----

-

1,429,292

Software£

798,879499,065

-(25,613)

1,272,331

505,678176,302

-(11,681)

670,299

602,032

Software£

694,533--

104,346

798,879

370,17576,943

-58,560

505,678

293,201


46

11. INTANGIBlE ASSETS (Continued)

Includedindevelopmentcostsincurredduringthefinancialyearare:-

Employeebenefitsexpenses(Note4)Directors’remuneration(Note4)Rental of premises

TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired,byconsideringthenetpresentvalueofdiscountedcashflowsforecasts.Ifanindicationexistsanimpairmentreviewiscarriedout.Attheyearend,therewasnoindicationofimpairmentofthevalueofgoodwillonconsolidationorofdevelopmentcosts.


(a) Impairmenttestingforgoodwillonconsolidation

Goodwill on consolidation has been allocated for impairment testing purposes to the individual entities which is also the cash-generatingunits(“CGU”)identified.

(b) Keyassumptionsusedtodeterminerecoverableamount

TherecoverableamountofaCGUisdeterminedbasedonvalueinusecalculationsusingcashflowprojectionsbasedonfinancialbudgetsapprovedbytheDirectorscoveringa5yearsperiod.Theprojectionsarebasedontheassumptionthat the Group can realise projected sales. A prudent approach has been applied with no residual value being factored into these calculations. If the projected sales do not materialise there is a risk that the total value of the intangible assets shownabovewouldbeimpaired.Apre-taxdiscountrateof8.50%perannumwasappliedtothecashflowprojections,aftertakingintoconsiderationtheGroup’scostofborrowings,theexpectedrateofreturnandvariousrisksrelatingtothe CGU.

Duringthefinancialyear,theGroupdidnotrecogniseanyimpairmentlossinrespectofthegoodwillonconsolidation.AsignificantproportionofgoodwillonconsolidationrelatestotheacquisitionofNetossSdn.Bhd.whichisaCGUandhasacarryingamountof£1,395,866(2010:£1,429,292).It'srecoverableamounthasbeendeterminedbasedonvalueinuseusingcashflowprojectionsandkeyassumptionsasdescribedin(b)above.

Development costs

Developmentcostswillnotbeamortisediftheproductisstillinitsdevelopmentphase.Theamortisationofthedevelopmentcostsisover5yearsperiod,whichintheopinionoftheDirectorsisadequate.

2010£

189,86155,180143,952

2011£

246,00559,95925,687

Group


47

12.

PRO

PER

TY, P

lAN

T A

ND

Eq

UIP

MEN

T

Gro

up

31 D

ecem

ber 2

011

CO

ST

At 1

Jan

uary

201

1Ad

ditio

nsD

ispo

sals

Fore

ign

exch

ange

diff

eren

ce

At 3

1 D

ecem

ber 2

011

DEP

REC

IATI

ON

At 1

Jan

uary

201

1D

epre

ciat

ion

char

ge fo

r the

pe

riod

Dis

posa

lsFo

reig

n ex

chan

ge d

iffer

ence

At 3

1 D

ecem

ber 2

011

NET

CA

RRY

ING

AM

OU

NT

At 3

1 D

ecem

ber 2

011

Tota

l £

1,648,751

56,716

(2,283)

(38,452)

1,664,732

636,107

182,778

(47)

(14,535)

804,303

860,429

Offi

ce

equi

pmen

t £

32,047 38-

(749)

31,336

14,006

3,126 -

(321)

16,811

14,525

Com

pute

r so

ftwar

e £

759,475

829 -

(17,756)

742,548

231,774

74,087-

(5,283)

300,578

441,970

Elec

tron

ic

Dat

a C

aptu

re

equi

pmen

t £

386,876

41,741

(2,283)

(8,974)

417,360

151,939

39,845 (47)

(3,480)

188,257

229,103

Ren

ovat

ion £

50,090 897 -

(1,170)

49,817

19,569

4,940 -

(446)

24,063

25,754

Furn

iture

an

d fit

tings £

77,519

1,737 -

(1,810)

77,446

29,792

7,671 -

(683)

36,780

40,666

Com

pute

r eq

uipm

ent £

189,574

11,474-

(4,411)

196,637

147,219

23,328-

(3,400)

167,147

29,490

Mot

orVe

hicl

es £

153,170 - -

(3,582)

149,588

41,808

29,781-

(922)

70,667

78,921


48

12.

PRO

PER

TY, P

lAN

T A

ND

Eq

UIP

MEN

T (C

ontin

ued)

Gro

up

31 D

ecem

ber 2

010

CO

ST

At 1

Jan

uary

201

0Ad

ditio

nsW

ritte

n of

fFo

reig

n ex

chan

ge d

iffer

ence

At 3

1 D

ecem

ber 2

010

DEP

REC

IATI

ON

At 1

Jan

uary

201

0D

epre

ciat

ion

char

ge fo

r the

pe

riod

Writ

ten

off

Fore

ign

exch

ange

diff

eren

ce

At 3

1 D

ecem

ber 2

010

NET

CA

RRY

ING

AM

OU

NT

At 3

1 D

ecem

ber 2

010

Tota

l £

1,381,767

74,884

(17,685)

209,785

1,648,751

393,303

181,702

(4,759)

65,861

636,107

1,012,644

Offi

ce

equi

pmen

t £

27,070 877 -

4,100

32,047

9,400

3,077

-

1,529

14,006

18,041

Com

pute

r so

ftwar

e £

659,699

640 -

99,136

759,475

135,375

73,256-

23,143

231,774

527,701

Elec

tron

ic

Dat

a C

aptu

re

equi

pmen

t £

313,654

25,137-

48,085

386,876

99,754

35,827-

16,358

151,939

234,937

Ren

ovat

ion £

57,275

2,477

(17,685)

8,023

50,090

15,365

6,587

(4,759)

2,376

19,569

30,521

Furn

iture

an

d fit

tings £

65,676

1,903 -

9,940

77,519

19,182

7,442

-

3,168

29,792

47,727

Com

pute

r eq

uipm

ent £

160,209

5,100 -

24,265

189,574

103,863

26,728

-

16,628

147,219

42,355

Mot

orVe

hicl

es £

98,184

38,750-

16,236

153,170

10,364

28,785-

2,659

41,808

111,362


49

12. PROPERTY, PlANT AND EqUIPMENT (Continued)

(a) Duringthefinancialyear,theGroupacquiredproperty,plantandequipmentataggregatecostsof£56,716(2010:£74,884)ofwhichNil(2010:£34,806)wasacquiredbymeansoffinanceleasesarrangements.Cashpaymentsof£56,716(2009:£40,078)weremadebytheGrouptopurchaseproperty,plantandequipment.

(b) Includedinproperty,plantandequipmentoftheGrouparemotorvehicleswithnetcarryingamountsof£78,921(2010:£111,362)heldunderfinanceleasesarrangements.

13. INVESTMENT IN SUBSIDIARY COMPANIES

COSTAt1January/31December

2010£

2,040,930

2011£

2,040,930

Company

Name of Subsidiary Company

MobilityOneSdn.Bhd.

Direct subsidiary companies of MobilityOne Sdn. Bhd.

Netoss Sdn. Bhd.

Pay Station Sdn. Bhd.

PT.MobilityOneIndonesia

Country of incorporation

Malaysia

Malaysia

Malaysia

Indonesia

EffectiveOwnership Interest

2011 2010 (%) (%) 100 100

100 100 100 100

95 95

Principal Activities

Provision of e-Channel products andservices,technologymanagedservicesand solution sales and consultancy

Provision of solution sales and services

Dormant

Provision of e-Channel products andservices,technologymanagedservicesand solution sales and consultancy


50

14. INVENTORIES

At Cost: Air timeSoftwareHardware

15. TRADE AND OTHER RECEIVABlES

Tradereceivables-Thirdparties

Otherreceivables-Deposits-Prepayments-Sundryreceivables-Amountduefromsubsidiarycompanies

Totaltradeandotherreceivables

(a) TheGroup’sandtheCompany’snormaltradecredittermsrangefrom30to60days(2010:30to60days).Othercredit terms are assessed and approved on a case to case basis.

Ageing analysis Anageinganalysisoftradereceivablesthatareneitherindividuallynorcollectivelyconsideredtobeimpairedisasfollows:

Neither past due nor impaired

1-2monthspastdue 3-12monthspastdue

2010£

551,982499,065298,011

1,349,058

2011£

751,383-

270,196

1,021,579

Group

2010£

440,119

404,61113,431

418,042

858,161

2011£

928,712

42,51178,725

121,236

1,049,948

Group

2010£

-

---

1,190,8201,190,820

1,190,820

2010£

858,161

297,79911,07791,091

-399,967

1,258,128

2011£

-

---

985,543985,543

985,543

2011£

1,049,948

288,2249,131

294,049-

591,404

1,641,352

CompanyGroup


51

15. TRADE AND OTHER RECEIVABlES (Continued)

Receivables that were neither past due nor impaired relate to a wide range of customers for whom there was no recent history of default.

Receivables that were past due but not impaired relate to a number of independent customers that have a good track record withtheGroup.Basedonpastexperience,managementbelievesthatnoimpairmentallowanceisnecessaryinrespectofthesebalancesastherehasnotbeenasignificantchangeincreditqualityandthebalancesarestillconsideredfullyrecoverable.

(b) Relatedpartybalances

Theamountduefromsubsidiarycompaniesisunsecured,non-interestbearingandisrepayableondemand.

16. SHORT TERM INVESTMENTS

Financialassetsatfairvaluethroughprofitorloss: Unittrust,quotedinMalaysia

17. CASH AND CASH EqUIVAlENTS

Cash in hand and at banksFixed deposits with licensed banks

Cash and bank balancesLess:Bankoverdraft(Note20)

Cash and cash equivalents

TheabovefixeddepositshavebeenpledgedtolicensedbanksassecuritiesforcreditfacilitiesgrantedtotheGroupasdisclosedinNote20tothefinancialstatements.

TheGroup’seffectiveinterestratesandmaturitiesofdepositsare2.92%(2010:2.58%)and12months(2010:12months)respectively.

2010£

1,778

2011£

-

Group

2010£

2,082-

2,082-

2,082

2011£

2,073-

2,073-

2,073

Company2010

£

264,659467,777

732,436-

732,436

2011£

449,457705,208

1,154,665(611,374)

543,291

Group


52

18. TRADE AND OTHER PAYABlES

Tradepayables-Thirdparties

Otherpayables-Deposits-Accruals-Sundrypayables

TotaltradeandotherpayablesAdd:AmountduetoDirectors(Note19)Add:Loansandborrowings(Note20)

Totalfinancialliabilitiescarriedatamortisedcost

(a) TheGroup’snormaltradecredittermsrangefrom30to90days(2010:30to90days).

(b) Other payable are non-interest bearing.Other payables are normally settled on an average terms of 60 days (2010:60days).

(c) Theamountduetoholdingcompanyisunsecured,non-interestbearingandisrepayableondemand.

19. AMOUNT DUE TO DIRECTORS

Theseareunsecured,interestfreeandrepayableondemand.

2010£

-

-12,66015,60628,266

28,26694,103

-

122,369

2010£

699,421

54,75455,011211,093320,858

1,020,279238,698

2,170,756

3,429,733

2011£

-

-14,90117,95132,852

32,852153,853

-

186,705

2011£

455,953

48,63338,301367,631454,565

910,518217,097

3,090,917

4,218,532

CompanyGroup


53

20. FINANCIAl lIABIlITIES – lOANS AND BORROWINGS

Non-CurrentSecured:Financeleasepayables(Note21)

CurrentSecured:Bankers’ acceptanceBankoverdraft(Note17)Financeleasepayables(Note21)Letter of creditsTrustreceipts

Total BorrowingsSecured:Bankers’ acceptanceBankoverdraft(Note17)Financeleasepayables(Note21)Letter of creditsTrustreceipts

Thebankers’acceptance,bankoverdraft,letterofcreditsandtrustreceiptsaresecuredbythefollowing:

(a) pledgeoffixeddepositsofasubsidiarycompany(Note17);

(b) personalguaranteebyaDirector;and

(c) corporateguaranteebytheCompany.

Group2010

£

100,223

100,223

1,101,700-

15,197536,420417,216

2,070,533

1,101,700-

115,420536,420417,216

2,170,756

2011£

81,874

81,874

1,345,941611,37415,871595,189440,668

3,009,043

1,345,941611,37497,745595,189440,668

3,090,917


54

20. FINANCIAl lIABIlITIES – lOANS AND BORROWINGS (Continued)

TheeffectiveinterestratesoftheGroupfortheabovefacilitiesareasfollows:

Bankers’ acceptanceBank overdraftLetter of creditsTrustreceipts

Thematurityofborrowings(excludingfinanceleases)isasfollows:

Within one year

OtherinformationonfinancialrisksofborrowingsaredisclosedinNote3.

2010£

2,055,336

2,055,336

2010%

5.22-

2.442.79

2011£

2,993,172

2,993,172

2011%

7.588.201.576.58

Group

Group


55

21. FINANCE lEASE PAYABlES

Minimumleasepayments: Not later than 1 year Later than 1 year but not later than 2 years Later than 2 years but not later than 5 years Later than 5 years

Less:Futurefinancecharges

Presentvalueoffinanceleaseliabilities

Presentvalueoffinanceleasepayments: Not later than 1 year Later than 1 year but not later than 2 years Later than 2 years but not later than 5 years Later than 5 years

Analysedas:Duewithin12months(Note20)Dueafter12months(Note20)

TheGrouphasfinanceleasecontractsforcertainmotorvehiclesasdisclosedonNote12(b).

OtherinformationonfinancialrisksoffinanceleasepayablesaredisclosedinNote3.

2010£

21,42421,42464,27330,972138,093(22,673)

115,420

15,19716,23954,97229,012

115,420

15,197100,223

115,420

2011£

20,92320,92356,05815,823113,727(15,982)

97,745

15,87116,88949,99314,992

97,745

15,87181,874

97,745

Group


56

22. CAllED UP SHARE CAPITAl

Authorised in MobilityOne limited

At1January/31December

Issued and fully paid in MobilityOne limited

At1January/31December

23. COMPANY EqUITY INSTRUMENT

At 1 January 2010Deficitfortheyear

At 31 December 2011

At 1 January 2010Deficitfortheyear

At 31 December 2010

24. REVERSE ACqUISITION RESERVE

TheacquisitionofMobilityOneSdn.Bhd.byMobilityOneLimited,whichwasaffectedthroughashareexchange,wascompletedon5July2007andresultedinMobilityOneSdn.Bhd.becomingawhollyownedsubsidiaryofMobilityOneLimited.Pursuanttoashareswapagreementdated22June2007theentireissuedandpaid-upsharecapitalofMobilityOneSdn.Bhd.wastransferredtoMobilityOneLimitedbyitsowners.Theconsiderationtotheownerswasthetransferof178,800,024existingordinarysharesandtheallotmentandissuancebyMobilityOneLimitedtotheownersof81,637,200ordinarysharesof2.5peach.Theacquisitionwascompletedon5July2007.TotalcostofinvestmentbyMobilityOneLimitedis£2,040,930,thedifferencebetweencostofinvestmentandMobilityOneSdn.Bhd.sharecapitalof£708,951hasbeentreatedasareverseacquisition reserve.

2010£

10,000,000

2,339,374

2011£

10,000,000

2,339,374

Amount2010

400,000,000

93,574,951

2011

400,000,000

93,574,951

Number of ordinary shares of £0.025 each

Share premium

£

782,234-

782,234

782,234-

782,234

Share capital£

2,339,374-

2,339,374

2,339,374-

2,339,374

Total£

3,111,463(269,622)

2,841,841

3,154,505(43,042)

3,111,463

Retained earnings

£

(10,145)(269,622)

(279,767)

32,897(43,042)

(10,145)


57

25. RECONCIlIATION OF lOSS BEFORE TAx TO CASH GENERATED FROM OPERATIONS

GROUPCash flow from operating activities

Profit/(Loss)beforetaxAdjustmentsfor: Profitondisposalofproperty,plantandequipment Depreciation Amortisation of intangible assets Amortisation of development costs Property,plantandequipmentwrittenoff Impairment loss on development costs Bad debts written off Inventories written off Deposit written off Interest paid Interest received

Operatingprofitbeforeworkingcapitalchanges

Increase in inventories Increase in receivables (Decrease)/increaseinamountduetoDirectors (Decrease)/increaseinpayables

Cash depleted in operations

COMPANYCash flow from operating activities

Loss before taxAdjustmentfor: Loss/(gain)onforeignexchange–unrealised

Operatinglossbeforeworkingcapitalchanges

Increase in payables Increase in amount due to Directors Increase in amount due from subsidiary company

Cash depleted in operations

2010£

(206,079)

(38,075)181,70276,94384,53612,927

-62,889

4553,34883,643(10,956)

251,333

(511,569)(823,968)

214,861587,790

(281,553)

(43,042)

(165,947)

(208,989)

13,71765,056130,211

(5)

2011£

28,802

(3,146)182,778176,302143,252

-63,69531,096

--

150,849(18,816)

754,812

(198,040)(441,704)(21,447)(122,316)

(28,695)

(269,622)

36,869

(232,753)

4,58659,750168,417

-


58

26. RElATED PARTY TRANSACTIONS

Duringtheyear,MobilityOneSdn.Bhd.receivedadvances£167,657(2010:£86,850)fromLMSTechnologyDistributionSdn.Bhd.,acompanywhichisrelatedtoaDirector.

AttheStatementofFinancialPositiondate,theGroupowedtheDirectors£217,097(2010:£238,698),theCompanyowedtheDirectors£153,853(2010:£94,103),MobilityOneSdn.Bhd.owedtheCompany£985,543(2010:£1,190,820),NetossSdn.Bhd.owedMobilityOneSdn.Bhd.£317,052(2010:£367,054),PayStationSdn.Bhd.owedMobilityOneSdn.Bhd.£3,366(2010:£4,183)andPT.MobilityOneIndonesiaowedMobilityOneSdn.Bhd.£614,261(2010:£617,346),MobilityOneSdn.Bhd.owedLMSTechnologyDistributionSdn.Bhd.£299,961(2010:£86,850),OneTranzactSdn.Bhd.(formerlyknownasSteadyTransactSdn.Bhd.),acompanywithcommonDirectors,owedMobilityOneSdn.Bhd.£3,155(2010:Nil),LMSTechnologyDistributionSdn.Bhd.owedP.T.MobilityOneIndonesia£111,418(2010:Nil)andNetossSdn.Bhd.owedLMSDigitalSdn.Bhd.,acompanyrelatedtoaDirector,£13,582(2010:£5,214)andLMSTechnologyDistributionSdn.Bhd.£2,179(2010:Nil).Theamountsowingtoorfromthesubsidiarycompaniesandrelatedpartiesarerepayableondemandand are interest free.

Duringtheyear,MobilityOneSdn.Bhd.settledtheliabilitiesonbehalfofOneTranzactSdn.Bhd.£2,742(2010:£403).NetossSdn.Bhd.paidLMSDigitalSdn.Bhd.andLMSTechnologyDistributionSdn.Bhd.£8,562(2010:£4,935)and£734(2010:£916)respectivelyonexpensesincurred.

27. UlTIMATE CONTROllING PARTY

IntheopinionoftheDirectors,thereisnoultimatecontrollingpartyintheCompanyfortheyearended31December2011.

28. CONTINGENT lIABIlITIES

Saveasdisclosedbelow,theGrouphasnocontingentliabilitiesarisinginrespectoflegalclaimsarisingfromtheordinarycourse of business and it is not anticipated that any material liabilities will arise from the contingent liabilities other than those provided for.

limit of guaranteesCorporate guarantees given to licensed banks by a subsidiary

company for credit facilities

Amount utilisedBanker’s guarantee in favour of third parties

2010£

21,645,022

373,455

2011£

4,186,920

356,552

Group


59

29. FOREIGN CURRENCY TRANSlATION RESERVE

Thesubsidiarycompanies’assetsandliabilitiesstatedintheStatementofFinancialPositionweretranslatedintoSterlingPound(£)usingtheclosingrateasattheStatementofFinancialPositiondateandtheincomestatementsweretranslatedinto£usingtheaveragerateforthatperiod.Allresultingexchangedifferencesaretakentotheforeigncurrencytranslationreserve within equity.

As at 1 JanuaryCurrency translation differences during the year due from subsidiary companies

As at 31 December

Theforeigncurrencytranslationreserveisusedtorecordexchangedifferencesarisingfromthetranslationofthefinancialstatements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It is also used to record the exchange differences arising from monetary items which form part of the Group’s net investment inforeignoperations,wherethemonetaryitemisdenominatedineitherthefunctionalcurrencyofthereportingentityortheforeign operation.

30. RETAINED EARNINGS

Retained earnings represents the cumulative earnings of the Group attributable to equity shareholders.

As at 1 JanuaryLoss for the year

As at 31 December

2010£

552,141433,103

985,244

2011£

985,244(76,536)

908,708

2010£

(1,439,436)(215,653)

(1,655,089)

2011£

(1,655,089)(1,341)

(1,656,430)

Group


60

31. SHARE BASED PAYMENTS

Duringtheyearended31December2007theGroupgrantedshareoptionsof7,416,558sharesat12.5p2,000,000eachtoDato’[email protected],SeahBoonChinandDerrickChiaKahWaiand1,416,558toHBCorporate.Nocharge has been made for the share based payments as it is not considered to be material.

Thedetailsoftheshareoptionsareasfollows:

Outstandingatbeginningofyear/Balancecarriedforward

ThefairvaluesoftheoptionsgrantedhavebeencalculatedusingBlack-Scholesmodelassumingtheinputsshownbelow:

Grant date 5 July 2007Share price at grant date 12.5pExercise price 12.5pOptionlifeinyears 5yearsRiskfreerate 4.40%Expectedvolatility 40%Expecteddividendyield 0%Fair value of options 2p

No options have been exercised or lapsed.

2010

12.5p

2011

12.5p

Exercise price2010

7,416,558

2011

7,416,558

NumberCompany


61

NOTICEISHEREBYGIVENTHATanAnnualGeneralMeetingofMOBIlITYONE lIMITED (“Company”) will be held at 9.00 a.m.Malaysiatimeon23July2012atMalaysianPetroleumClub,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,Malaysia,andforthepurposeofconsideringand,ifthoughtfit,adoptingthefollowingresolutions,atthemeeting,orofanyadjournmentthereof:

ORDINARY RESOlUTIONS

1. THATtheCompany'saccountsandreportsoftheDirectorsandAuditorsfortheyearended31December2011beadopted.

2. THATDerrickChiaKahWaiisre-electedasaDirector.

3. THATSeahBoonChinisre-electedasaDirector.

4. THATJeffreysHenryLLPofFinsgate,5-7CranwoodStreet,EC1V9EELondon,UnitedKingdombereappointedasAuditors oftheCompany(inaccordancewithArticle33oftheArticlesofAssociationoftheCompany)toholdofficeuntiltheconclusion of the next general meeting.

5. THATtheDirectorsbeauthorisedtofixtheremunerationoftheAuditors.

BY ORDER OF THE BOARD

Dato’ Dr. Wan Azmi bin Ariffin Chairman

Dated:29June2012

notICe of annual General meetInG

62

Notes:

1 A member of the Company entitled to attend and vote at the above mentioned meeting is entitled to appoint a proxy to attend and,onapoll,tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.Aproxyneednotbeamember of the Company. A member may appoint more than one proxy to attend on the same occasion.

2 Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority(ifany)underwhichitissigned,oranotarially certifiedcopyofsuchpowerorauthority,shallbedepositedwiththeCompany’sregistrars,ComputershareInvestorServices (ChannelIslands)Limited,QueenswayHouse,HilgroveStreet,StHelier,JerseyJE11ES,ChannelIslands,oratsuchother placeasisspecifiedforthatpurposeinthenoticeofthemeetingorintheinstrumentofproxyissuedbytheCompanyatleast 24 hours before the time appointed for holding the meeting or adjourned meeting at which the person named in the instrument proposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,the instrument of proxy shall not be treated as valid.

3 Completion of the instrument appointing a proxy does not preclude a member from subsequently attending and voting at themeetinginpersonifhe/shesowishes.

4 Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedto theexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesof the Holders stand in the register of members of the Company.

5 AspermittedbyRegulation40(1)oftheCompanies(UncertificatedSecurities)(Jersey)Order1999,onlypersonsentered on the register of members of the Company not later than 48 hours before the time appointed for the meeting are entitled to attendand/orvoteatthemeetinginrespectofthenumberofsharesregisteredintheirnameatthattime.Changestoentries ontheregisterofmembersafterthattimewillbedisregardedindeterminingtherightsofanypersontoattendand/orvote at the meeting.

notICe of annual General meetInG(continued)

Notes:1. AmemberoftheCompanyentitledtoattendandvoteattheabovementionedmeetingisentitledtoappointaproxytoattendand,onapoll,

tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.AproxyneednotbeamemberoftheCompany.Amembermay appoint more than one proxy to attend on the same occasion.

2. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority(ifany)underwhichitissigned,oranotariallycertifiedcopyofsuchpowerorauthority,shallbedepositedwiththeCompany’sregistrars,ComputershareInvestorServices(ChannelIslands)Limited,QueenswayHouse,HilgroveStreet,StHelier,JerseyJE11ES,ChannelIslands,oratsuchotherplaceasisspecifiedforthatpurposeinthe notice of the meeting or in the instrument of proxy issued by the Company at least 24 hours before the time appointed for holding the meetingoradjournedmeetingatwhichthepersonnamedintheinstrumentproposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,theinstrumentofproxyshallnotbetreatedasvalid.

3. Completion of the instrument appointing a proxy does not preclude a member from subsequently attending and voting at the meeting in personifhe/shesowishes.

4. Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesoftheHoldersstandintheregisterof members of the Company.

5. AspermittedbyRegulation40(1)oftheCompanies(UncertificatedSecurities)(Jersey)Order1999,onlypersonsenteredontheregisterofmembersoftheCompanynotlaterthan48hoursbeforethetimeappointedforthemeetingareentitledtoattendand/orvoteatthemeetingin respect of the number of shares registered in their name at that time. Changes to entries on the register of members after that time will bedisregardedindeterminingtherightsofanypersontoattendand/orvoteatthemeeting.

FOR AGAINST WITHHOlDORDINARY RESOlUTIONS

1. THATtheCompany'saccountsandreportsoftheDirectorsandAuditorsfor the year ended 31 December 2011 be adopted.

2. THATDerrickChiaKahWaiisre-electedasaDirector.

3. THATSeahBoonChinisre-electedasaDirector.

4. THATJeffreysHenryLLPofFinsgate,5-7CranwoodStreet,EC1V9EELondon,UnitedKingdombereappointedasAuditorsoftheCompany(inaccordancewithArticle33oftheArticlesofAssociationoftheCompany)toholdofficeuntiltheconclusionofthenextgeneralmeeting.

5. THATtheDirectorsbeauthorisedtofixtheremunerationoftheAuditors.

If by an individual:

Signed:....................................................................................

Dated:.............................................................................2012

If for and on behalf of a corporation:

Signed by: .................................................................................

for and on behalf of: ...................................................................

Position: ....................................................................................

Dated:.............................................................................2012

I/We:(fullname)……………………………………………………………………………………………...............................................

of:(address)…………………………………………………………………………………………………................................................

beingamemberofMobilityOneLimited,doherebyappoint:(fullname)…………………………………...........................................

orfailinghim:(fullname)……………………………………………………………………………………................................................

orfailinghimtheChairmanoftheMeetingasmy/ourproxytoattendtheAnnualGeneralMeetingofMobilityOneLimitedtobe

heldatMalaysianPetroleumClub,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,

Malaysia on 23 July 2012 at 9.00 a.m. Malaysia time or any adjournment thereof.

Please indicate by marking “X” in the respective box. If no indication is given, your proxy will have discretion to vote or to abstain (including on any other matter which may properly come before the meeting as he/she thinks fit).

I/Werequestsuchproxytovoteasindictedbelow:

then fold here

firSt fold here

AffiXStAMP

Company's reGIstrarsmobiltyone limitedQueenSWAY houSehilGroVe Street, St. helierJerSeY Je1 1eSchAnnel iSlAndS

fold thiS flAP for SeAlinG

board of directors 12 - mobilityone.com.my · london ec1v 9ee united kingdom nominated allenby...

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