Mae Amor Giluano

GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 CONTENTS Page Director's statement 1-2 Independent Auditors' Report 3- 4 Statement of Comprehensive Income 5 Statement of Financial Position 6-7 Statement of Changes in Equity 8 Statement of Cash Flows 9 - 10 Notes to the Financial Statements 11 - 39 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) DIRECTOR'S STATEMENT The director of the Company submit their report to the members, together with the audited financial statements of the Company for the year ended 31 December 2016. OPINION OF THE DIRECTOR In the opinion of the director (i) the accompanying statements of financial position, statement of comprehensive income, statement of changes in equity, and statement of cash flows together with the notes thereto are drawn up so as to give a true and fair view of the financial position of the Company as at 31 December 2016 and of the financial performance, changes in equity and cash flows of the changes in equity of the Company for the year ended on that date, and (ii) at the date of this statement there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. DIRECTOR : The director in office at the date of this report is: Teng Hong Joe (appointed on 31 March 2008) DIRECTOR'S INTEREST The director's holding office at the end of the financial year had no interest in the share capital of the Company as recorded in the Register of Director's Shareholdings kept by the Company under Section 164 of the Singapore Companies Act, Cap 50. Neither at the end of the financial year nor at any time during the financial year, was the Company a party to any arrangements whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of the Company or any other related body corporate. Since the end of last financial year, the director have not received nor become entitled to receive a benefit by reason of a contract made by the Company or a related corporation with the director, or with a firm of which they are members, or with a Company in which they have substantial financial interest. 1 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) DIRECTOR'S STATEMENT (CONT'D) SHARE OPTIONS There were no options granted by the Company during the financial year to subscribe for unissued shares of the Company. No shares have been issued during the financial year by virtue of the exercise of options to take up unissued shares of the Company. There were no unissued shares of the Company under option at the end of the financial year. AUDITORS The auditors K.C, Chan Co. PAC, Public Accountants and Chartered Accountants of Singapore, have expressed their willingness to accept re-appointment. Signed by the Sole Director, Teng Hong Joe Director Date: 2 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) Report on the financial statements We have audited the accompanying financial statements of GERBACK HOLDINGS PTE. LTD. which comprise the statement of financial position as at 31 December 2016, and the statement of comprehensive income, statement of changes in equity and cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory notes. Management's Responsibility for the financial statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting Standards, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair profit and loss accounts and balance sheet and to maintain accountability of assets. Auditors' responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgements, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Company as at 31 December 2016 and the results, changes in equity and cash flows of the Company for the financial year ended on that date. 3 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) Report on Other Legal and Regulatory Requirements In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act. K.C. Chan & Co. PAC Public Accountants Singapore and Chartered Accountant Singapore Date: 4 of GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2016 Note Other income 1 2016 US$ 2015 US$ - 132,797 Operating and administrative expenses (18,632) (9,266) Finance cost (70,875) (70,875) Other Expense (4,245,333) (9,690,775) Profit/(loss) before taxation (4,334,840) (9,638,119) Taxation 2 Profit/(loss) for the year - - (4,334,840) (9,638,119) (4,334,840) (9,638,119) Other comprehensive income Total comprehensive loss for the year The annexed notes form an integral part of and should be read in conjunction with these financial statements. 5 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2016 Note 2016 US$ 2015 US$ Assets Current assets Amount owing by associate Cash and cash equivalents 3 Total current assets - - - - Non-current assets Investment in associates 4 - Total non current assets - - Total assets - - The annexed notes form an integral part of and should be read in conjunction with these financial statements. 6 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2016 Note 2016 US$ 2015 US$ Liabilities and equity Current liabilities Other payables and accruals - 20,390 Total current liabilities - 20,390 - - Total non-current liabilities - - Total liabilities - 20,390 Non-current liabilities Non-current liabilities Equity Share capital Retained earnings/accumulated loss Deemed capital contribution 8 9,599,895 (13,902,084) 4,263,966 9,599,895 (13,883,452) 4,263,167 Total equity (38,223) (20,390) Total liabilities and equity (38,223) - The annexed notes form an integral part of and should be read in conjunction with these financial statements. 7 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2016 Accumulated loss/retained earnings US$ Share capital US$ Total US$ 2016 Balance as on 01 January 2016 Issuance of ordinary shares Issuance of preference shares during the period Dividend Total comprehensive income for the period 9,599,895 Balance as on 31 December 2016 (13,883,452) (4,334,840) (20,390) (4,334,840) 9,599,895 (18,218,292) (4,355,230) Balance as on 01 January 2015 Issuance of ordinary shares Issuance of preference shares during the period Dividend Total comprehensive income for the period 9,599,895 (4,245,333) (9,638,119) 5,354,562 (9,638,119) Balance as on 31 December 2015 9,599,895 (13,883,452) (4,283,557) - 2015 - The annexed notes form an integral part of and should be read in conjunction with these financial statements. 8 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2016 2016 US$ 2015 US$ (4,334,840) (9,638,119) Cash flows from operating activities Profit/(loss) for the year Adjustments for : Fair value gain/(loss) on investments Interest income Interest expense Allowance for impairment loss Other payables written-off Finance costs - Operating profit/(loss) before working capital changes (4,334,840) (94,100) 70,875 9,690,775 (38,697) (9,266) Changes in working capital Increase in other payables and accruals Trade and other receivables Provisions Inventories Prepayments Retirement benefit obligations Other non-current liabilities - 3,711 - Cash generated/(used in) from operating activities - (5,555) Property, plant and equipment Investment property Investment in subsidiary Investment in associate Investment in joint venture Financial assets held for trading Financial assets held to maturity Loans and receivables - - Cash (used in) /generated from investing activities - - Cash flows from investing activities The annexed notes form an integral part of and should be read in conjunction with these financial statements. 9 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2016 2016 US$ 2015 US$ Cash flows from financing activities Proceeds from issuance of ordinary shares Proceeds from issuance of preference shares Borrowings Dividend paid Interest paid - - Cash generated/(used in) from financing activities - - Net increase/(decrease) in cash and cash equivalents - (5,555) Cash and cash equivalents at the beginning of the year - 5,555 Cash and cash equivalents at the end of the year - - *For the purpose of presenting the cash flow statement, cash and cash equivalents comprise the following. 2016 US$ Cash and cash equivalents (Note 6) Less: Bank overdrafts (Note 19) 2015 US$ - - The annexed notes form an integral part of and should be read in conjunction with these financial statements. 10 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 1 Domicile and activities Gerback Holding Pte. Ltd. is a Company with registration number-E, incorporated and domiciled in Singapore with its registered office at 08 Cross Street, #24-03, PWC Building, Singapore 048424. The principal activity of the Company is that of an investment holding company. 2 Summary of significant accounting policies (a) Basis of preparation The financial statements have been prepared in accordance with the provisions of Singapore Companies Act and Singapore Financial Reporting Standards ("FRS"). The preparation of the financial statements in compliance with the FRS requires management to make judgements,estimates and assumptions that affect the accounting policies, amounts of assets, liabilities, income and expenses reported. They are assessed on an on-going basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable under the circumstances. The financial statements are prepared on historical cost basis unless otherwise stated. (b) Adoption of new and revised standards The Company adopted all the new and revised FRSs and Interpretations of FRS (“INT FRS”) that are effective from that date and are relevant to its operations. The adoption of these new/revised FRSs and INT FRSs does not result in changes to the Company’s accounting policies and has no material effect on the amounts reported for the current or prior years. (c) Functional and presentation currency The functional and presentation currency of the Company is the United States dollars (US$). As the Company's revenue from operations and major portion of the assets and liabilities are transacted and maintained in US$, the directors are of the opinion that the US$ reflects the economic substance of the underlying events and circumstances relevant to the Company. (d) Foreign currency transactions Foreign currency transactions during the year are translated into the reporting currency at the exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currency are translated into US$ at the exchange rates ruling at the balance sheet date. Currency exchange gains and losses are dealt with in the statement of comprehensive income. 11 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (e) Key management personnel Key management personnel are those persons having the authority and responsibility for the planning, directing and controlling the activities of the Company. (f) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank. For the purpose of the presentation of statement of cash flows, cash and cash equivalents include cash on hand, cash at bank and deposits with financial institutions which are subject to an insignificant risk of changes in value, net of bank overdrafts. (g) Provisions Provisions are recognised when the Company has a present obligation as a result of past event, and it is probable that the Company will be required to settle that obligation. Provisions are measured at the directors' best estimate of the expenditure required to settle the obligation at the balance sheet date and are discounted to present value where the effect is material. (h) Related party A related party is defined as follows: (a) A person or a close member of that person’s family is related to the Company if that person: (i) Has control or joint control over the Company; (ii) Has significant influence over the Company; or (iii) Is a member of the key management personnel of the Company or of a parent of the Company. (b) An entity is related to the Company if any of the following conditions applies: (i) The entity and the Company are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. 12 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (h) Related party (cont'd) (v) The entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the Company. If the Company is itself such (vi) The entity is controlled or jointly controlled by a person identified in (a); (vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). (i) Income tax Income tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or tax deductible. The Company’s liability for current tax is calculated using tax rates (and tax laws) that have been enacted or substantively enacted in countries where the company and subsidiaries operate by the end of the reporting period. Deferred tax is recognised on the differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognised on taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. 13 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (j) Investment in associate An associate is an entity, not being a subsidiary or a joint venture, in which the Company has significant influence. An associate is equity accounted for from the date the Company obtains significant influence until the date the Company ceases to have significant influence over the associate. The Company's investments in associates are accounted for using the equity method. Under the equity method, the investment in associates is carried in the statement of financial position at cost plus post-acquisition changes in the Company's share of net assets of the associates. Goodwill relating to associates is included in the carrying amount of the investment and is neither amortised nor tested individually for impairment. Any excess of the Company's share of the net fair value of the associate's identifiable asset, liabilities and contingent liabilities over the cost of the investment is included as income in the determination of the Company's share of results of the associate in the period in which the investment is acquired. The profit or loss reflects the share of the results of operations of the associates. Where there has been a change recognised in other comprehensive income by the associates, the Company recognises its share of such changes in other comprehensive income. Unrealised gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associates. The Company's share of the profit or loss of its associates is the profit attributable to equity holders of the associate and, therefore is the profit or loss after tax and non-controlling interests in the subsidiaries of associates. When the Company's share of losses in an associate equals or exceeds its interest in the associate, the Company does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. After application of the equity method, the Company determines whether it is necessary to recognise an additional impairment loss on the Company's investment in its associates. The Company determines at the end of each reporting period whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount in profit or loss. The financial statements of the associates are prepared as of the same reporting date as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company. 14 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (j) Investment in associate (cont'd) Upon loss of significant influence over the associate, the Company measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the aggregate of the retained investment and proceeds from disposal is recognised in profit or loss. (k) Interest in Joint ventures A joint venture is a contractual arrangement whereby the Company and other parties undertake an economic activity that is subject to joint control, that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. Where the Company undertakes its activities under joint venture arrangements directly, the Company’s share of jointly controlled assets and any liabilities incurred jointly with other venturers are recognised in the financial statements and classified according to their nature. Liabilities and expenses incurred directly in respect of interests in jointly controlled assets are accounted for on an accrual basis. Income from the sale or use of the Company’s share of the output of jointly controlled assets, and its share of joint venture expenses, are recognised when it is probable that the economic benefits associated with the transactions will flow to/from the Company and their amount can be measured reliably. (l) Subsidiary Subsidiaries are entities over which the Company has power to govern the financial and operating policies, generally accompanied by a shareholding giving rise to a majority of the voting rights. Investment in subsidiary has been accounted in the financial statements at cost less impairment losses. On disposal of investment in subsidiary, the difference between the net disposal proceeds and the carryng amount of the investment is taken to the income statement. The company has not complied with the Singapore Financial Reporting Standard No.27 "consolidated and seperated financial statements", which requires the prepration of one set of consoildated financial statements of the company and its foreign subsidiary as the management of the company is of the opinion that there is no practical benefits to be gained by the shareholder of the company. (m) Financial instrument Financial assets and financial liabilities are recognised on the Company's statement of financial position when the Company becomes a party to the contractual provisions of the instrument. 15 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (m) Financial instrument (cont'd) Effective interest method The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or where appropriate, a shorter period. Income and expense is recognised on an effective interest basis for debt instruments other than those financial instruments “at fair value through profit or loss”. Financial assets The Company classifies its financial assets in the following categories: at fair value through profit or loss (held for trading), loans and receivables, held-to-maturity investments and available-for-sale financial assets. The classification depends on the nature of the asset and the purpose for which the assets were acquired. Management determines the classification of its financial assets at initial recognition. (i) Recognition and derecognition All regular way purchases and sales of financial assets that require delivery of the assets within the period generally established by regulation of market convention are recognised on trade date. Financial assets are derecognised when the contractual rights to receive cash flows from the assets have expired, or the risks and rewards of ownership of the asset are transferred. (ii) Classification and measurement Financial assets at fair value through profit or loss (FVTPL) Financial assets are classified as at FVTPL where the financial asset is either held for trading or it is designated as at FVTPL. A financial asset is classified as held for trading if: (a) It has been acquired principally for the purpose of selling in the near future; or (b) On initial recognition, it is part of an identified portfolio of financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or (c) It is a derivative that is not designated and effective as a hedging instrument. A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if: 16 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (m) Financial instrument (cont'd) (ii) Classification and measurement (cont'd) (a) Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or (b) It forms part of a contract containing one or more embedded derivatives, and FRS 39 Financial Instruments: Recognition and Measurement permits the entire combined contract (asset or liability) to be designated as at FVTPL. Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit or loss. Held-to-maturity investments Bonds with fixed or determinable payments and fixed maturity dates where the Company has a positive intent and ability to hold to maturity are classified as held-to-maturity investments. Subsequent to initial measurement, held to-maturity investments are measured at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis. Available-for-sale financial assets Shares and debt securities classified as available for sale and are stated at fair value. Gains and losses arising from changes in fair value are recognised in other comprehensive income with the exception of impairment losses, interest calculated using the effective interest method and foreign exchange gains and losses on monetary assets which are recognised directly in profit or loss. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income and accumulated in revaluation reserve is reclassified to profit or loss. Dividends on available-forsale equity instruments are recognised in profit or loss when the right to receive payments is established. The fair value of available-for-sale monetary assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at end of the reporting period. The change in fair value attributable to translation differences that result from a change in amortised cost of the available-for-sale monetary asset is recognised in profit or loss, and other changes are recognised in other comprehensive income. Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as “loans and receivables”. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate method, except for short-term receivables when the effect of discounting is immaterial. 17 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (m) Financial instrument (cont'd) (iii) Fair value measurement Fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: (a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; (b) Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and (c) Level 3 inputs are unobservable inputs for the asset or liability. Impairment of financial assets Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For available-for-sale equity instruments, a significant or prolonged decline in the fair value of the investment below its cost is considered to be objective evidence of impairment. For all other financial assets, objective evidence of impairment could include: (a) Significant financial difficulty of the issuer or counterparty; or (b) Default or delinquency in interest or principal payments; or (c) It becoming probable that the borrower will enter bankruptcy or financial reorganisation. For certain categories of financial assets, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Company’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 60 days, as well as observable changes in national or local economic conditions that correlate with default on receivables. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. 18 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (m) Financial instrument (cont'd) Impairment of financial assets (cont'd) For financial assets that are carried at cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables where the carrying amount is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the financial asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. When an available-for-sale financial asset is considered to be impaired, cumulative gains or losses previously recognised in other comprehensive income are reclassified to profit or loss. In respect of available-for-sale equity instruments, impairment losses previously recognised in profit or loss are not reversed through profit or loss. Any subsequent increase in fair value after an impairment loss is recognised in other comprehensive income and accumulated under the heading of investments revaluation reserves. In respect of available-for sale debt securities, impairment losses are subsequently reversed through profit or loss if an increase in the fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss. Financial liabilities and equity instruments Classification as debt or equity Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. 19 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (m) Financial instrument (cont'd) Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs. Financial liabilities Financial liabilities are classified as either financial liabilities “at fair value through profit or loss” or other financial liabilities. Financial liabilities at fair value through profit or loss (FVTPL) A financial liability is classified as held for trading if: (a) It has been incurred principally for the purpose of repurchasing in the near future; or (b) It is a part of an identified portfolio of financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or (c) It is a derivative that is not designated and effective as a hedging instrument. A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if: (a) Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or (b) It forms part of a contract containing one or more embedded derivatives, and FRS 39 permits the entire combined contract (asset or liability) to be designated as at FVTPL. Other financial liabilities Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, using the effective interest rate method, with interest expense recognised on an effective yield basis. Interest-bearing bank loans and overdrafts are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings. 20 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 2 Summary of significant accounting policies (cont'd) (m) Financial instrument (cont'd) Derecognition of financial liabilities The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis. (n) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. (i) Sale of goods Revenue from the sale of goods is recognised when all the following conditions are satisfied: (a) The Company has transferred to the buyer the significant risks and rewards of ownership of the goods; (b) The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (c) The amount of revenue can be measured reliably; (d) It is probable that the economic benefits associated with the transaction will flow to the entity; and (e) The costs incurred or to be incurred in respect of the transaction can be measured reliably. (ii) Rendering of services Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract. (iii) Interest income Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. Summary of significant accounting policies (cont'd) (o) Revenue recognition (cont'd) 21 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 (iv) Dividend income Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established. (p) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. (q) Investment property Investment property, which is property held to earn rentals and/or for capital appreciation, including property under construction for such purposes, is measured initially at its cost, including transaction costs. Subsequent to initial recognition, investment property is measured at fair value. Gains or losses arising from changes in the fair value of investment property are included in profit or loss for the period in which they arise. An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised. 2 Summary of significant accounting policies (cont'd) (r) Inventories Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. (s) Retirement benefit obligations Payments to defined contribution retirement benefit plans are charged as an expense when employees have rendered the services entitling them to the contributions. Payments made to statemanaged retirement benefit schemes, such as the Singapore Central Provident Fund, are dealt with as payments to defined contribution plans where the Company's obligations under the plans areequivalent to those arising in a defined contribution retirement benefit plan. 22 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 The retirement benefit obligation recognised in the statement of financial position represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plan. 23 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 1 Other income 2016 US$ Net foreign exchange gains Fair value gain on investments Gain on sale of investments Other non-operating income 2015 US$ - - Other non-operating income includes reversal of liabilities for prior year expenses as they are no longer payable. 2 Taxation The income tax expense on the results of the financial year varies from the amount of income tax determined by applying the Singapore statutory rate of income tax to loss before tax due to the following factors: 2016 US$ Loss before tax Tax at applicable tax rate of 17% Deferred tax asset not recognised* Tax effect of profit not subject to tax** Withholding tax *** Tax expense 2015 US$ (4,334,840) (9,638,119) (736,923) 736,923 - (1,638,480) 1,638,480 - * Deferred tax assets are not recognised in the balance sheet as it is not probable that future taxable profit will be available against which the Company can utilise the benefits. ** No provision has been made for Singapore income tax as the company neither has sourced in income in Singapore nor received foreign sourced income in Singapore. *** Foreign withholding tax deducted on dividend income. 24 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 3 Cash and cash equivalents 2016 US$ Cash in hand Call deposits Cash at bank - 2015 US$ 1 5,554 5,555 Cash and cash equivalents are denominated in the following currencies:2016 US$ Unites States Dollar Euros Autralian Dollar Swiss Francs - 25 2015 US$ 5,555 5,555 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 4 Investment in associates 2016 US$ Cost of investment in associates Share of post acquisition profit, net of dividends - 2015 US$ 9,596,675 (9,596,675) - Details of investment in the associate are as follows:- Name of associate Indo Korean Petrochem Ltd. 5 Place of operation/ incorporation Singapore Loans and borrowings Proportion of Proportion ownership of voting interest power held 2016 &- & 2015 % %- 2016 US$ Bank overdrafts Bank loans Less: Amount due for settlement within 12 months (shown under current liabilities) Amount due for settlement after 12 months Principal activities Investment holding company 2015 US$ - - - - Bank overdrafts are repayable on demand. Overdrafts of $X.XX million (2015: $X.X million) have been secured by a charge over the Company’s inventories. The company has two principal bank loans: A loan of $XXX.X million (2015: $XXX.XX million). The loan was raised on February 1, 2010. Repayments commenced on January 31, 2015 and will continue until January 2, 2019. The loan is secured by a charge over certain of the Company’s properties. The loan carries interest at 1% plus prime rate. A loan of $72.27 million (2013: $72.27 million) secured on certain current and non-current assets of the Company. This loan was advanced on July 1, 2015 and is due for repayment on January 3, 2019. The bank loan carries fixed interest rate at 8% (2015: 8%) per annum. 26 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 6 Trade and other payables 2016 US$ Trade creditors Amount due to holding company Amont due to subsidiary Amount due to other related parties Accrued expenses 2015 US$ - - Amount due to holding company/subsidiary/related parties are non-trade in nature, unsecured, interest-free and repayable on demand. 7 Retirement benefit obligations The employees of the Company are members of a state managed retirement benefit plan, the Central Provident Board Fund, operated by the Government of Singapore. The Company is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Company with respect to the retirement benefit plan is to make the specified contributions. The total expense recognised in profit or loss of US$ 200,000 (2015: US$ 140,000) represents contributions payable to these plans by the Company at rates specified in the rules of the plans. As at December 31, 2016, contributions of US$ 37,000 (2015: US$ 18,500) due in respect of current financial year had not been paid over to the plans. The amounts were paid subsequent to the end of the reporting period. 8 Share capital No. of shares 2016 Amount in US$ No. of shares 2015 Amount in US$ Ordinary shares Beginning of financial year Issued during the year End of financial year 1,499,895 1,499,895 - Redeemable preference shares Beginning of financial year Issued during the year End of financial year 8,100,000 8,100,000 - Total 9,599,895 Ordinary shares 27 1 1 1 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 There is no par value for the ordinary shares. The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restriction. Rights of redeemable preference shares Redeemable preference shares shall be under the control of the directors who has sole discretion over the redemption of the redeemable preference shares. Redeemable preference shares carry a right to repayment of the capital (including premium paid on subscription) paid up on the redeemable preference shares in priority to the ordinary shares of the company, but shall not confer any further right to participate in profits or assets of the company. Redeemable preference shares do not carry a right to receive notice of, or attend or to vote either in person or by proxy at any general meeting of the Company. The only voting rights attaching to redeemable preference shares are those expressly conferred by Section 180(2) of the Singapore Companies Act, cap. 50. Redeemable preference shares do not carry rights to dividends as declared by directors. 9 Key management personnel compensation The key management personnel consists of the directors of the Company and they have not received or become entitled to receive any compensation during the financial year. 28 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 Financial instruments, financial risks and capital risk management 10 Financial risk management policies and objectives: The Company's overall financial risk management programme seeks to minimise potential The Company does not enter into derivative financial instruments and thus is exposed to There has been no change to the Company’s exposure to these financial risks or the manner 29 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 11 Financial instruments, financial risks and capital risk management (cont'd) (i) Foreign exchange risk management The Company transacts business in various currencies, including the Singapore Dollars, Euro and Japanese Yen and therefore is exposed to foreign exchange risk. At the end of the reporting period, the carrying amounts of monetary assets and monetary liabilities denominated in currencies other than the reporting currency are as follows: 2016 US$ Singapore Dollar Euros Swiss Francs Australian Dollar Liabilities 2015 US$ - Assets 2016 US$ - 2015 US$ - - If the relevant foreign currency weakens by 10% against the reporting currency of the Company, profit or loss and equity will increase (decrease) by: Profit / (loss- US$ US$ Singapore Dollar Euros Swis Francs Australian Dollar - Equity 2016 US$ - 2015 US$ - - If the relevant foreign currency strengthens by 10% against the reporting currency of the Company, it would have an equal but opposite effect. (ii) Interest rate risk management Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk from loans and advances, borrowings and other receivables. The interest rate on borrowings is 2% + LIBOR rate. If interest rates change by 50 basis points with all other variables including tax rate being held constant, the effect on profit /(loss) and equity will be as follows :- 30 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 12 Financial instruments, financial risks and capital risk management (cont'd) (ii) Interest rate risk management (cont'd) Profit / (loss- US$ US$ Increase by 50 basis points Decrease by 50 basis points - Equity 2016 US$ - 2015 US$ - - (iii) Equity price risk management Price risk is the risk that the fair values of financial assets will fluctuate because of changes in the market price. The Company is exposed to equity price risks arising from quoted equity investments classified as held-for trading and available for sale. If the prices of these financial instruments change by 10% with all other vaiables including tax rate being held constant, the effect on proft/(loss) and the equity will be as shown below:Profit / (loss- US$ US$ Increase by 10% Decrease by 10% - Equity 2016 US$ - 2015 US$ - - (iv) Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company's exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by the counterparty limits that are reviewed and approved by the Board of directors annually. The Company does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The Company defines counterparties as having similar characteristics if they are related entities. Concentration of credit risk did not exceed 5% of gross monetary assets at any time during the year. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. There are no financial assets that are past due and/or impaired. 31 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 13 Financial instruments, financial risks and capital risk management (cont'd) (v) Liquidity risk management Liquidity risk refers to the risk in which the Company has difficulty in meeting its short-term obligations. Management is of the view that liquidity risk is minimal as the Company adopts prudent liquidity risk management by maintaining sufficient cash at bank and the cash flow from operations is sufficient for present working capital requirements. The table below analyses the Company's non-derivative financial liabilities into relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date. Between 1 and 5 years US$ Less than 1 year US$ Over 5 years US$ Total US$ As at 31 December 2016 Bank overdrafts and loans Trade and other payables Borrowings - - - - - - - - As at 31 December 2015 Bank overdrafts and loans Trade and other payables Borrowings (vi) Fair value measurement of financial assets and financial liabilities The carrying amount of some the financial asset and financial liabilities recorded in the financial statements approximates their fair values. To increase consistency and comparability in fair value measurements and related disclosures, a fair value hierarchy disclosure is done that prioritises the inputs to valuation techniques used to measure fair value into three broad levels: (a) Quoted prices (unadjusted) in active markets for identical assets and liabilities (Level 1); (b) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly(is as prices) or indirectly (i.e. derives from prices) (Level 2); and (c) inputs for the asset or liability that are not based on observable market date (unobservable inputs) (Level 3). 32 GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2016 14 Financial instruments, financial risks and capital risk management (cont'd) (vi) Fair value measurement of financial assets and financial liabilities (cont'd) The following table presents the assets and liabilities measured at fair value at 31 December 2016 and 31 December 2015. Financial assets/ liabilities Fair values- US$ US$ Fair value Hierarchy Valuation technique Held for trading investments - - Level1 Level1 Level1 Level1 Quoted price in Quoted price in Quoted price in Quoted price in Equity investments - - Level1 Unquoted corporate bond - - Level 2 Quoted price in Discounted Cash flow Equity investments Fixed income holdings Other investments Alternative investments Available for sale investments Capital risk management The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and to maintain an optimal capital structure so as to maximise shareholder value. There were no changes in the Company’s approach to capital management during the year. The Company is not subject to externally imposed capital requirements. 15 Contingent liabilities During the year, a customer of the Company instigated proceedings for alleged defects in an electronic product which, it is claimed, were the cause of a major fire in the customer’s premises in February 2015. Total losses to the customer have been estimated at $29.8 million and this amount is being claimed from the Company. The Company’s lawyers have advised that they do not consider that the claim has merit, and they have recommended that it be contested. No provision has been recognised in these financial statements as the Company’s management does not consider that there is any probable loss. 33 16 Events after the reporting period On January 18, 2014, the premises of ABC China Limited were seriously damaged by fire. Insurance claims are in process, but the cost of refurbishment is currently expected to exceed the amounts that will be reimbursed by $X.X million. 17 Reclassification and comparative figures Certain reclassifications have been made to the prior year’s financial statements to enhance comparability with the current year’s financial statements. As a result, certain line items have been amended in the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity and statements of cash flow, and the related notes to the financial statements. Comparative figures have been adjusted to conform to the current year’s presentation. The items were reclassified as follows: Before reclassification 2015 US$ Accruals Trade and other payables - 34 After reclassification 2015 US$ - GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) THE ACCOMPANYING DETAILED STATEMENT OF COMPREHENSIVE INCOME HAS BEEN PREPARED FOR MANAGEMENT PURPOSES ONLY AND DOES NOT FORM PART OF THE AUDITED FINANCIAL STATEMENTS GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) DETAILED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2016 2016 US$ 2015 US$ Other income Interest Income Waiver by shareholders - 94,100 38,697 132,797 Operating and administrative expenses 9,522 4,593 1,684 2,833 - 4,472 4,-,690,775 (18,632) (9,700,041) Bank interest Interest on loan 70,875 (70,875) 70,875 (70,875) Profit/(loss) for the year (89,507) (9,638,119) OP Expenses Preparation of FS - 2014 and 2015 Preparation of FTR 2014 and 2015 Strike Off Fee Admininstrative and accounting charges Audit Fee Bank Charges Disbursement Legal and corporate services Allowance for impairment loss Finance cost GERBACK HOLDINGS PTE. LTD. (Company Registration No.:-E) (Incorporated in the Republic of Singapore) TRIAL BALANCE AS AT 31 DECEMBER 2016 Note Particulars BS Capital Account Share Capital BS Amount in US$ Debit Credit 1,499,895 Non-Current Liabilities Loan From Enterprise Enmerging Market Fund B.V BS 4,050,000 Current Liabilities Accounting Charges Payable Accrued Interest on Loan Payable Amount Due to Enterprise Emerging Market Fund B V Amount Due to Shareholder 1,539 142,292 8,100,000 - Amount Payable to Amicorp Income Tax Payable Nakoda Limited Subscription Payable Tax Fees Payable BS Non current assets Indo Korean Petrochem Ltd BS 32,929 38,- Current Assets Cash-in-hand Cash at bank 9,596,675 1 5,554 Other income Other income P&L P&L Expenses OP Expenses Preparation of FS - 2014 and 2015 Preparation of FTR 2014 and 2015 Strike Off Fee Profit & Loss A/c Grand Total - 9,522 4,593 1,684 2,833 4,245,333 13,866,196 13,866,196