TIDMGST
RNS Number : 5179X
GSTechnologies Ltd
21 December 2023
21 December 2023
GSTechnologies Limited
("GST" or the "Company", or, together with its subsidiaries, the
"Group")
Interim Results for the six months ended 30 September 2023
GSTechnologies Limited (LSE: GST), the fintech company,
announces the Company's interim results for the six months ended 30
September 2023.
Period Highlights
-- Further significant progress for the Group as it focused on
developing a borderless neobanking platform providing
next-generation digital money solutions, both organically and
through complementary acquisitions
-- Completion of the acquisition of PAYPT, a Canadian company
holding a Canadian Money Services Business licence, in August
2023
-- Establishment of Angra Global, following the acquisition of
PAYPT, which began onboarding customers from 1 September 2023
-- The soft launch of the Company's GS20 Exchange was
successfully completed and a wider roll-out was commenced
-- Company admitted to the UK Financial Conduct Authority
("FCA") Innovation Pathway Programme to assist the progression of
its GS Money Stablecoin plans
-- Placing to raise GBP750,000 in May 2023 at 1.0 pence per share
-- Net loss for the period of US$737,000 (H1 2022: US$1,153,000
loss) as the Company continued to invest in developing its GS Money
solutions, both organically and through acquisition
-- As of 30 September 2023, the Company had US$2,198,000 in cash
and cash equivalents (30 September 2022: US$3,334,000)
Post Period Highlights
-- On 29 November 2023, t he Company entered into an option to
purchase agreement to acquire 60% of the share capital of EasySend,
an FCA approved Authorised Payment Institution conducting
cross-border payment services
-- On 6 December 2023 the Company entered into an agreement to
acquire 66.67% of the issued share capital of Semnet, a profitable
cybersecurity company based in Singapore, for a total consideration
of US$1.8 million, payable through US$0.8 million in cash and
US$1.0 million in new shares in the Company
-- Placing to raise GBP847,000 in November 2023 at 1.1 pence per share
Chairman's Statement
I'm pleased to present on behalf of the board of directors of
GST (the "Board") the interim report of the Company for the six
months ended 30 September 2023.
The period was again one of significant progress for the Group
as it focused on developing a borderless neobanking platform
providing next-generation digital money solutions, both organically
and through complementary acquisitions. This is being undertaken
under the Company's GS Money banner, primarily through the Group's
Angra Global and GS20 Exchange businesses.
In particular, the period saw the establishment of Angra Global
Ltd ("Angra Global") following the completion of the acquisition of
the entire issued share capital of PAYPT Finance Ltd ("PAYPT"), a
Canadian company holding a Canadian Money Services Business ("MSB")
licence. Completion of the acquisition, and its renaming to Angra
Global, followed the receipt of approval from the Financial
Transactions and Reports Analysis Centre of Canada ("FINTRAC"), the
regulatory authority overseeing financial transactions in Canada,
for the change of control. The MSB licence held by PAYPT
encompasses a range of financial activities, including: foreign
exchange dealing; cryptoasset dealing; money transfer services; and
authorisations for the issuance of debit cards and IBANs.
Angra Global has been combined operationally with the Group's
existing UK-based foreign exchange and payment services company,
Angra Limited ("Angra"), an FCA approved Authorised Payment
Institution ("API"), as part of the Group's strategic intention for
the combined Angra entities to be a B2B-focused Neobank. The Group
now offers a multi-currency e-wallet service, initially covering
Sterling, Euro, US Dollar, Canadian Dollar, Chinese Yuan Renminbi
and US Dollar Tether Token transactions. Angra Global started
onboarding customers for this service from 1 September 2023 and it
enables Angra customers to securely store their funds within Angra
Global business accounts and facilitate seamless foreign exchange
conversions and fund transfers through Angra's established and
reliable banking partnerships, akin to a conventional business bank
account, utilising technology developed by the Group's subsidiary
in Singapore, GS Fintech Pte Ltd. Additionally, the MSB licence
enables Angra to issue Sterling local accounts and Euro SEPA IBAN
accounts to its clients, thereby providing a comprehensive one-stop
business banking solution.
Aligned with its overarching strategy, the Group is focused on
accelerating Angra's revenue while simultaneously bolstering the
Angra team to expand its B2B Neobank operations beyond the UK,
serving companies of all sizes worldwide. As part of this expansion
strategy, p ost period end on 29 November 2023, t he Company
entered into an option to purchase agreement to acquire 60% of the
share capital of EasySend Ltd ("EasySend"), a Northern Ireland
incorporated company operating a cross-border payments business.
EasySend is a an FCA approved API, conducting cross-border payment
services.
EasySend has a current estimated yearly transaction volume of
approximately GBP120 million, with 35% coming from approximately
40,000 individual customers and 65% from approximately 350 active
corporate customers. We believe the acquisition of a majority stake
in EasySend will assist with growing the customer base for the
Company's existing GS Money activities, in particular Angra Global,
and provide access to additional technology, including EasySend's
mobile terminal technology. It is intended that EasySend's founder
and management team will remain with the business and that the 40%
minority holding will be retained by EasySend's founder. Completion
of the acquisition of EasySend is conditional, inter alia, on final
due diligence, the entering into of definitive sale and purchase
documentation and also on GST obtaining approval from the FCA for
the change of control of EasySend, a regulated entity.
Post period end on 6 December 2023 we also announced that the
Company had entered into an agreement to acquire 66.67% of the
issued share capital of Semnet Pte Ltd ("Semnet"), a cybersecurity
company based in Singapore, for a total consideration of US$1.8
million, payable through US$0.8 million in cash and US$1.0 million
in new shares in the Company.
Semnet is a profitable cybersecurity business that will provide
the Company with expertise and licences that the Board believe are
a critical component to the advancement of the Company's GS Money
and B2B Neobanking operations. Cybersecurity is of particular
importance to the Company's developing global Neobank ecosystem.
With Angra Global having started onboarding customers on 1
September 2023, Semnet's cybersecurity expertise will enable the
Company to build a dedicated cybersecurity team to support client
onboarding and its operational activities, including the wider
provision of white-label software solutions to global money service
businesses. In addition, Semnet will continue to support and grow
its client base in other sectors, providing an additional
profitable revenue stream for the Group. Semnet is licensed by the
Cyber Security Regulatory Office (CRSO) in Singapore. Completion of
the Semnet acquisition is subject, inter alia, to the agreement of
a completion assets statement, which may require adjustment of the
consideration upwards or downwards, and no material adverse change
having occurred in the Semnet business. Completion is expected to
occur in early February 2024, or earlier as may be agreed between
the parties.
Following the acquisition of Glindala (now GS Fintech UAB), a
holder of a Crypto Currency Exchange Licence registered in
Lithuania, in August 2022, GST soft launched the Company's GS20
cryptoasset exchange in November 2022. The GS20 Exchange is
offering spot trading and over-the-counter trading desk services
for popular cryptoassets, although it is not a pure cryptocurrency
exchange. The soft launch has been successfully completed and the
development of the GS20 Exchange has progressed in accordance with
the Board's expectations, with a wider roll-out now being
undertaken. There has been a progressive build-up of signed-up
users, and the Company are greatly encouraged by the market
traction the GS20 Exchange is enjoying. The GS20 Exchange is
generating revenue for the Company via trading commissions at
varying levels depending on the type and size of transaction
undertaken.
As a further key pillar of the stablecoin activities that the
Group intends to carry out in strategic jurisdictions, including
the UK, the Company applied to the FCA for the Company's
stablecoins to be admitted to the FCA Regulatory Sandbox. In June
2023, the Company was informed by the FCA that they had concluded
that the Company's stablecoin application did not currently meet
the FCA's strict criteria for admission to the FCA Regulatory
Sandbox. As an alternative the FCA offered the Company a place on
their Innovations Pathway programme, an initiative designed to
support financial services firms in launching innovative products
and services, which the Company was pleased to accept. Under the
FCA Innovation Pathway programme, the Company is being provided
with a dedicated FCA case officer and a comprehensive range of
support services, designed to assist GST to further develop the
appropriate path for the progression of its stablecoin plans. This
may involve a future Regulatory Sandbox application or preparation
for regulatory authorisation without the need for supervised
testing. Although the Company initially viewed admission of its
stablecoins to the FCA Regulatory Sandbox as an appropriate next
step, the Innovations Pathway programme is enabling GST to benefit
further from the guidance of the FCA and progress its stablecoin
plans.
Board
On 15 June 2023 Chong Loong Fatt Garies, Non-executive Director,
resigned from the Board in order to focus on his other business
endeavours. On behalf of the Board I would like to thank Garies for
his contribution to GST and we wish him well in his future
endeavours.
Funding
In order to accelerate the implementation of the Group's GS
Money strategy, including via acquisition, the Company has
undertaken fundraising activities as the Board has deemed
appropriate to facilitate the maximisation of overall shareholder
value.
During the previous year the Company entered into an unsecured
convertible loan facility to receive funding of up to US$1.6
million (the "Loan Facility") with an institutional investor.
US$800,000 of the Loan Facility was drawn down. The Loan Facility
was cancelled on 29 March 2023, with the second instalment of
US$800,000 undrawn. On 4 April 2023 the remaining US$285,000
principal amount of the Loan Facility and the associated interest
of US$28,500 (10%), was converted into new ordinary shares of
no-par value in the capital of the Company ("Ordinary Shares").
Following this conversion no principal amount or associated
interest remains outstanding under the Loan Facility.
On 17 May 2023 the Company has raised gross proceeds of
GBP750,000 through a placing of 75,000,000 Ordinary Shares at a
price of 1.0 pence per share.
Post period end, on 14 November 2023, the Company raised gross
proceeds of GBP847,000 through a placing of 77,000,000 Ordinary
Shares at a price of 1.10 pence per share.
The Board is mindful of dilution for existing shareholders, and
the Company will only undertake further fundraising activities if
the Board believes additional capital is required to achieve the
Company's strategic goals.
Financial performance
Following the completion of the disposal of EMS Wiring Systems
in October 2022 the Group's revenue for the period from operations
of US$256,000 (H1 2022 US$1,799,000) was purely generated from the
Company's GS Money activities, primarily Angra Limited in the UK
during the period. Revenues were limited whilst the GS Money
offerings were rolled out and the Board anticipates revenues to
grow in the second half of the financial year.
With a strong focus on cost control the Group's net loss for the
period reduced to US$737,000 (H1 2022: US$1,153,000 loss) as the
Company continued to invest in developing its GS Money solutions,
both organically and through acquisition.
The Group had US$2,198,000 in cash and cash equivalents as at 30
September 2023 (30 September 2022: US$3,334,000), with the cash
resources bolstered by the net proceeds of the GBP847,000
(approximately US$1,100,000) equity fund raise undertaken in
November 2023.
Summary
Our stated strategy with GS Money is to make cross-border
payments quick and affordable to an addressable market of millions
of participants by netting and settling trades through a
stablecoin-based payments network. With the formation of Angra
Global, the Group has both an FCA approved API and a Canadian MSB
licence to enable the Group to conduct fast, secure, and low-cost
foreign exchange business and payment services internationally,
together with the ability to offer further services. Additionally,
with the GS20 Exchange we have a regulated, operational, trading
platform offering spot trading and over-the-counter trading desk
services for popular cryptoassets, although it is much more than a
pure cryptocurrency exchange, providing the clearing and settlement
needs of both retail and institutional customers with high
compliance and security standards.
In the second half of the financial year we are looking to grow
revenues substantially from these businesses and to complete the
two acquisitions that will both add additional customers and
capabilities to the Group.
With the Angra Global and GS20 Exchange platforms in place, the
FCA stablecoin plans being progressed, and two recently announced
complimentary acquisitions to complete, these are exciting times
for GST. We are a focused, 'pure play' fintech group with solid
platforms on which build and to continue to role out our GS Money
solutions. We will also continue to explore any further value
enhancing acquisition opportunities that may become available and
that can assist with accelerating the development of the Group.
I believe there is a very bright future for GST and I look
forward to reporting on our further progress in the coming
months.
Tone Kay Kim GOH
Chairman
Enquiries:
The Company
Tone Goh, Executive Chairman
+65 6444 2988
Financial Adviser
VSA Capital Limited
+44 (0)20 3005 5000
Simon Barton / Thomas Jackson
Broker
CMC Markets
+44 (0)20 3003 8632
Douglas Crippen
Financial PR & Investor Relations
IFC Advisory Limited
Tim Metcalfe / Graham Herring / Florence Chandler
+44 20 (0) 3934 6630
gst@investor-focus.co.uk
For more information please see:
https://gstechnologies.co.uk/
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the period 1 April 2023 to 30 September 2023
6 months ended 30 September
Notes 2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Net operating income
Sales 6 256 1,799
Other income 2 49
---------------------------- ------------------------------
258 1,848
Net operating expense
Continuing Operations 7 (1,029) (2,915)
Foreign exchange loss 35 (86)
---------------------------- ------------------------------
Operating loss (737) (1,153)
Income tax expense - -
Net loss for the period (737) (1,153)
---------------------------- ------------------------------
Other comprehensive loss
Movement in foreign exchange
reserve (42) (521)
---------------------------- ------------------------------
Total comprehensive loss
for the period (779) (1,674)
Net Loss for the year atttributable
to:
Equity holders for the parent (737) (1,153)
Non-controlling interest - -
---------------------------- ------------------------------
Total comprehensive loss
for the year atttributable
to:
Equity holders for the parent (779) (1,674)
Non-controlling interest 20 - -
---------------------------- ------------------------------
(Loss)/Earnings per share
attributable to members of
the Parent
Basic (loss) per share 9 (0.00040) (0.00074)
Diluted (loss) per share 9 (0.00040) (0.00074)
CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
As at 30 September 2023
6 months ended 30 September
Notes 2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
ASSETS
Current assets
Cash and cash equivalents 11 2,198 3,334
Trade and other receivables 12 73 3,038
Other Assets 277 299
Work in progress 15 - 198
Inventories 13 - 16
Total current assets 2,547 6,885
------------------------ -------------------------
Non-current assets
Property, plant and equipment 14 43 305
Intangible Assets 16 1,996 44
Total non-current assets 2,039 349
------------------------ -------------------------
TOTAL ASSETS 4,586 7,234
------------------------ -------------------------
EQUITY
Share Capital 19 9,491 7,795
Treasury Shares (808) -
Reserves (960) (1,336)
Retained Earnings (3,338) (2,126)
Total Equity 4,385 4,333
------------------------ -------------------------
Equity attributable to owners
of the parent 4,385 4,333
Non-controlling equity interest 20 - -
4,385 4,333
------------------------ -------------------------
LIABILITIES
Current liabilities
Trade and other payables 21 201 1,974
Loans payable 22 - 261
Total current liabilities 201 2,235
------------------------ -------------------------
Non-current liabilities
Lease Liabilities - 7
Loans payable 22 - 659
Total Non-current liabilities - 666
------------------------ -------------------------
Total Liabilities 201 2,901
------------------------ -------------------------
TOTAL EQUITY & LIABILITIES 4,586 7,234
------------------------ -------------------------
CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the period 1 April 2023 to 30 September 2023
6 months ended 30 September
Notes 2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before taxation from operations (737) (1,153)
Adjustments:
Depreciation of property, plant
and equipment 9 61
Exchange loss 10 19
Operating loss before working
capital changes (718) (1,073)
Decrease/(Increase) in inventories - -
Decrease/(Increase) in trade and
other receivables (5) (759)
(Decrease)/Increase in trade and
other payables 2,245 979
------------------------- --------------------------
Net cash flow used in operating
activities (2,968) (853)
CASH FLOWS FROM INVESTING ACTIVITIES
Write off property, plant and equipment 43 (115)
Decrease in capital work in progress - -
Intangible Assets - -
Net cash flow from investing activities 43 (115)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of new shares 1,210 -
Treasury shares - -
Principal elements of lease payments 43 -
Decrease in loans payable 338 (281)
Forex reserves 42 (521)
------------------------- --------------------------
Net cash flow from financing activities 871 (802)
Net increase/(decrease) in cash
and cash equivalents (2,054) (1,770)
------------------------- --------------------------
Cash and cash equivalents at beginning
of the period 4,252 5,104
------------------------- --------------------------
Cash and cash equivalents at end
of the period 11 2,198 3,334
------------------------- --------------------------
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
For the period 1 April 2023 to 30 September 2023
Shareholder FX Reserve Retained Treasury Total
Capital Earnings Shares
2023 CONSOLIDATED US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 1 April 2023 8,281 (1,002) (2,601) (808) 3,870
----------------- ----------- ----------- ----------- ----------
Comprehensive Income
Loss for the year - - (737) (737)
Other comprehensive loss
for the year - 42 - 42
----------------- ----------- ----------- ----------- ----------
Total comprehensive loss
for the the period 42 (737) (695)
----------------- ----------- ----------- ----------- ----------
Transactions with owners
in their
capacity as owners:
Shares issued during the
period 1,210 - - - 1,210
----------------- ----------- ----------- ----------- ----------
Balance at 30 September
2023 9,491 (960) (3,338) (808) 4,385
----------------- ----------- ----------- ----------- ----------
Notes to the Financial Statements
Accounting Policies
1. General Information
1.1. Corporate information
The consolidated financial statements of GSTechnologies Ltd (the
"Company") and its subsidiaries (collectively referred to as "the
Group" for the financial period from 1 April 2023 and ended 30
September 2023 were authorised for issue in accordance with a
resolution of the Directors on 20 December 2023.
The registered office of GSTechnologies Ltd, the ultimate parent
of the Group, is Ritter House, Wickhams Cay II, Road Town, Tortola,
BVI VG1110.
The principal activity of the Company comprises of fintech
services through the use of blockchain technology; and the
provision of data infrastructure, storage and technology services
by its subsidiaries.
2. Basis of preparation
The consolidated financial statements of the Group have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB) and adopted by the United Kingdom as they
apply to the financial statements of the Group for the period 1
April 2023 to 30 September 2023.
The consolidated financial statements have been prepared on a
historical cost convention basis, except for certain financial
instruments that have been measured at fair value. The consolidated
financial statements are presented in US dollars and all values are
rounded to the nearest thousand except when otherwise
indicated.
2.1 Consolidation
The consolidated financial statements comprise the financial
statements of the Group as of 30 September 2023, and for the period
then ended.
Subsidiaries are fully consolidated from the date of
acquisition, being the date on which the Group obtains control, and
continue to be consolidated until the date when such control
ceases.
The financial statements of the subsidiaries are prepared for
the same reporting period as the GSTechnologies Ltd (parent
company), using consistent accounting.
All intra-group balances, transactions, unrealised gains and
losses resulting from intra-group transactions and dividends are
eliminated in full.
Total comprehensive income within a subsidiary is attributed to
the non-controlling interest even if it results in a deficit
balance. A change ownership interest of a subsidiary, without a
loss of control, is accounted for as an equity transaction.
Business Combinations
Business combinations occur where an acquirer obtains control
over one or more businesses. A business combination is accounted
for by applying the acquisition method, unless it is a combination
involving entities or businesses under common control. The business
combination will be accounted for from the date that control is
attained, whereby the fair value of the identifiable assets
acquired and liabilities (including contingent liabilities) assumed
is recognised (subject to certain limited exceptions).
When measuring the consideration transferred in the business
combination, any asset or liability resulting from a contingent
consideration arrangement is also included. Subsequent to initial
recognition, contingent consideration classified as equity is not
re-measured and its subsequent settlement is accounted for within
equity. Contingent consideration classified as an asset or
liability is re-measured in each reporting period to fair value,
recognising any change to fair value in profit or loss, unless the
change in value can be identified as existing at acquisition
date.
All transaction costs incurred in relation to business
combinations are expensed to the statement of comprehensive income.
The acquisition of a business may result in the recognition of
goodwill or a gain from a bargain purchase.
3. Significant accounting judgements, estimates and assumptions
The preparation of the Group's consolidated financial statements
requires management to make judgements, estimates and assumptions
that affect the reported amounts of assets and liabilities and the
disclosure of contingent liabilities at the date of the
consolidated financial statements, and the reported amounts of
revenues and expenses during the reporting period. Estimates and
assumptions are continuously evaluated and are based on
management's experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances. However, actual outcomes would differ from these
estimates if different assumptions were used and different
conditions existed.
In particular, the Group has identified the following areas
where significant judgements, estimates and assumptions are
required, and where actual results were to differ, may materially
affect the financial position or financial results reported in
future periods. Further information on these and how they impact
the various accounting policies is in the relevant notes to the
consolidated financial statements.
Going concern
This report has been prepared on the going concern basis, which
contemplates the continuation of normal business activity and the
realisation of assets and the settlement of liabilities in the
normal course of business.
At 30 September 2023, the Group held cash reserves of
US$2,198,000 (2022: US$3,334,000).
On this basis, the Directors believe that there are sufficient
funds to meet the Group's working capital requirements.
The Group recorded a loss of US$ 737,000 for the six months
ended 30 September 2023 and had net assets of US$4,385,000 as of 30
September 2023 (2022: loss of US$1,153,000 and net assets of
US$4,333,000).
Subsidiaries Angra Ltd and GS Fintech are expected to contribute
profit to the Group.
Accruals
Management has used judgement and prudence when estimating
certain accruals for contractor claims. The accruals recognised are
based on work performed but are before settlement.
Contingencies
By their nature, contingencies will only be resolved when one or
more uncertain future events occur or fail to occur. The assessment
of the existence, and potential quantum, of contingencies
inherently involves the exercise of significant judgement and the
use of estimates regarding the outcome of future events. Please
refer to Note 23 for further details.
The preparation of the Company's financial statements requires
management to make judgements, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and
liabilities, and the disclosure of contingent liabilities at the
end of each reporting period. Uncertainty about these assumptions
and estimates could result in outcomes that require a material
adjustment to the carrying amount of the asset or liability
affected in the future periods.
Judgements made in applying accounting policies
Management is of the opinion that there are no significant
judgements made in applying accounting estimates and policies that
have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources
of estimation uncertainty at the end of the reporting period are
discussed below. The Company based its assumptions and estimates on
parameters available when the financial statements were prepared.
Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising
beyond the control of the Company. Such changes are reflected in
the assumptions when they occur.
Provision for expected credit losses (ECL) on trade receivables
and contract assets
ECLs are unbiased probability-weighted estimates of credit
losses which are determined by evaluating a range of possible
outcomes and taking into account past events, current conditions
and assessment of future economic conditions.
The Company uses a provision matrix to calculate ECLs for trade
receivables and contract assets. The provision rates are based on
days past due for groupings of various customer segments that have
similar loss patterns. The provision matrix is initially based on
the Company's historical observed default rates. The Company will
calibrate the matrix to adjust historical credit loss experience
with forward-looking information. At every reporting date,
historical default rates are updated and changes in the forward-
looking estimates are analysed.
The assessment of the correlation between historical observed
default rates, forecast economic conditions and ECLs is a
significant estimate. The amount of ECLs is sensitive to changes in
circumstances and of forecast economic conditions. The Company's
historical credit loss experience and forecast of economic
conditions may also not be representative of customer's actual
default in the future.
The carrying amount of the Company's trade receivables at the
end of the reporting period is disclosed in Note 12 to the
financial statements.
Revenue recognition
The Company uses the percentage-of-completion method to account
for its contract revenue. The stage of completion is measured in
accordance with the accounting policy stated in Note 5. Significant
assumptions are required in determining the stage of completion,
the extent of the contract cost incurred, the estimated total
contract cost and the recoverability of the contracts. In making
these assumptions, management has relied on past experience and the
work of specialists.
Significant judgement is also required to assess allowance made
for foreseeable losses, if any, where the contract cost incurred
for any job exceeds its contract sum. The carrying amounts of
contract balances at the reporting date are disclosed in Note 15 to
the financial statements.
Allowance for inventory obsolescence
The Company reviews the ageing analysis of inventories at each
reporting date, and makes provision for obsolete and slow moving
inventory items identified that are no longer suitable for sale.
The net realisable value for such inventories are estimated based
on the most reliable evidence available at the reporting date.
These estimates take into consideration market demand, competition,
selling price and cost directly relating to events occurring after
the end of the financial year to the extent that such events
confirm conditions existing at the end of the financial year.
Possible changes in these estimates could result in revisions to
the valuation of inventories. The carrying amounts of the Company's
inventories at the reporting date are disclosed in Note 13 to the
financial statements.
4. Adoption of new and amended standards and interpretations
There are several new Accounting standards and interpretations
issued by the IASB that are not yet mandatorily applicable to the
Group and have not been applied in preparing these consolidated
financial statements. The Group does not plan to adopt these
standards early.
These standards are not expected to have a material impact on
the Group in the current or future reporting periods.
5. Summary of significant accounting policies
Property, plant and equipment
Plant and equipment are shown at cost less accumulated
depreciation and impairment losses. The initial cost of an asset
comprises its purchase price or construction cost, any costs
directly attributable to bringing the asset into operation, any
incidental cost of purchase, and associated borrowing costs. The
purchase price or construction cost is the aggregate amount paid
and the fair value of any other consideration given to acquire the
asset. Directly attributable costs include employee benefits,
professional fees and costs of testing whether the asset is
functioning properly. Capitalised borrowing costs include those
that are directly attributable to the construction of mining and
infrastructure assets.
Property, plant and equipment relate to plant, machinery,
fixtures and fittings and are shown at historical cost less
accumulated depreciation and impairment losses.
The depreciation rates applied to each type of asset are as
follows:
Computer Equipment 3 years
Fixtures and fittings 3 years
Office Equipment 3 years
Subsequent expenditure is capitalised when it is probable that
future economic benefits from the use of the asset will be
increased. All other subsequent expenditure is recognised as an
expense in the period in which it is incurred. Assets that are
replaced and have no future economic benefit are derecognised and
expensed through profit or loss. Repairs and maintenance which
neither materially add to the value of assets nor appreciably
prolong their useful lives are charged against income. Gains/
losses on the disposal of fixed assets are credited/charged to
income. The gain or loss is the difference between the net disposal
proceeds and the carrying amount of the asset.
The asset's residual values, useful lives and methods of
depreciation are reviewed at each reporting period and adjusted
prospectively if appropriate.
Inventories
Inventories are valued at the lower of cost and net realisable
value.
Financial instruments
a. Financial assets
i. Classification, initial recognition and measurement
The Company classifies its financial assets into the
following measurement categories: amortised cost; fair
value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Financial assets are recognised when, and only when the
entity becomes party to the contractual provisions of
the instruments.
At initial recognition, the Company measures a financial
asset at its fair value plus, in the case of a financial
asset not at FVPL, transaction costs that are directly
attributable to the acquisition of the financial assets.
Transaction costs of financial assets carried at FVPL
are expensed in profit or loss.
Trade receivables are measured at the amount of consideration
to which the Company expects to be entitled in exchange
for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third party,
if the trade receivables do not contain a significant
financing component at initial recognition.
ii. Subsequent measurement
Debt instruments
Subsequent measurement of debt instruments depends on
the Company's business model for managing the asset
and the contractual cash flow characteristics of the
asset. The Company only has debt instruments at amortised
cost.
Financial assets that are held for the collection of
contractual cash flows where those cash flows represent
solely payments of principal and interest are measured
at amortised cost. Financial assets are measured at
amortised cost using the effective interest method,
less impairment. Gains and losses are recognised in
profit or loss when the assets are derecognised or impaired,
and through the amortisation process.
Debt instruments of the Company comprise cash and cash
equivalents and trade and other receivables.
Equity instruments
On initial recognition of an investment in equity instrument
that is not held for trading, the Company may irrevocably
elect to present subsequent changes in fair value in
other comprehensive income which will not be reclassified
subsequently to profit or loss. Dividends from such
investments are to be recognised in profit or loss when
the Company's right to receive payments is established.
For investments in equity instruments which the Company
has not elected to present subsequent changes in fair
value in other comprehensive income, changes in fair
value are recognised in profit or loss.
iii. Derecognition
A financial asset is derecognised where the contractual
right to receive cash flows from the asset has expired.
On derecognition of a financial asset in its entirety,
the difference between the carrying amount and the sum
of the consideration received and any cumulative gain
or loss that had been recognised in other comprehensive
income for debt instruments is recognised in profit
or loss.
b. Financial liabilities
i. Initial recognition and measurement
Financial liabilities are recognised when, and only
when, the Company becomes a party to the contractual
provisions of the financial instrument. The Company
determines the classification of its financial liabilities
at initial recognition.
All financial liabilities are recognised initially
at fair value plus in the case of financial liabilities
not at FVPL, directly attributable transaction costs.
ii. Subsequent measurement
After initial recognition, financial liabilities that
are not carried at FVPL are subsequently measured at
amortised cost using the effective interest method.
Gains and losses are recognised in profit or loss when
the liabilities are derecognised, and through the amortisation
process.
Financial liabilities measured at amortised cost comprise
trade and other payables.
iii. Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
On derecognition, the difference between the carrying
amounts and the consideration paid is recognised in
profit or loss.
Offsetting
Financial assets and liabilities are offset and the net amount
presented in the statement of financial position when, and only
when, the Company has a legal right to offset the amounts and
intends either to settle on a net basis or to realise the asset and
settle the liability simultaneously
Cash and cash equivalents
Cash and cash equivalents are measured at fair value, based on
the relevant exchange rates at balance sheet date. Cash and cash
equivalents comprise cash balances and short-term deposit that are
readily convertible to known amount of cash and that are subject to
an insignificant risk of changes in their fair value and are used
by the Company in the management of its short-term commitments. For
the purpose of the consolidated statement of cash flows, cash and
cash equivalents consist of cash and cash equivalents as defined
above, net of outstanding bank overdrafts.
Impairment
Financial assets
The Company recognises an allowance for expected credit losses
(ECLs) for all debt instruments not held at FVPL and contract
assets. ECLs are based on the difference between the contractual
cash flows due in accordance with the contract and all the cash
flows that the Company expects to receive, discounted at an
approximation of the original effective interest rate. The expected
cash flows will include cash flows from the sale of collateral held
or other credit enhancements that are integral to the contractual
terms.
ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that
result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures for which
there has been a significant increase in credit risk since initial
recognition, a loss allowance is recognised for credit losses
expected over the remaining life of the exposure, irrespective of
timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Company applies a
simplified approach in calculating ECLs. Therefore, the Company
does not track changes in credit risk, but instead recognises a
loss allowance based on lifetime ECLs at each reporting date. The
Company has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-looking
factors specific to the debtors and the economic environment which
could affect debtors' ability to pay.
The Company considers a financial asset in default when
contractual payments are past due for more than 90 days. However,
in certain cases, the Company may also consider a financial asset
to be in default when internal or external information indicates
that the Company is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements
held by the Company. A financial asset is written off when there is
no reasonable expectation of recovering the contractual cash
flows.
Non-financial assets
The carrying amounts of the Company's non-financial assets,
other than inventories, are reviewed at each reporting date to
determine whether there is any indication of impairment. If any
such indication exists, then the asset's recoverable amount is
estimated. An impairment loss is recognised if the carrying amount
of an asset or its related cash-generating unit (CGU) exceeds its
estimated recoverable amount.
The recoverable amount of an asset or CGU is the greater of its
value in use and its fair value less costs to sell. For the purpose
of impairment testing, the recoverable amount is determined on an
individual asset basis unless the asset does not generate cash
inflows that are largely independent of those from other assets. If
this is the case, the recoverable amount is determined for the CGU
to which the asset belongs. If the recoverable amount of the asset
(or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable
amount.
The difference between the carrying amount and recoverable
amount is recognised as an impairment loss in profit or loss.
An impairment loss for an asset other than goodwill is reversed
only if, there has been a change in the estimates used to determine
the asset's recoverable amount since the last impairment loss was
recognised. The carrying amount of this asset is increased to its
revised recoverable amount, provided that this amount does not
exceed the carrying amount that would have been determined (net of
any accumulated amortisation or depreciation) had no impairment
loss been recognised for the asset in prior years.
A reversal of impairment loss for an asset other than goodwill
is recognised in profit or loss
Trade and other payables
Trade and other payables are non-derivative financial
liabilities that are not quoted in an active market. It represents
liabilities for goods and services provided to the Group prior to
the year end and which are unpaid. These amounts are unsecured and
have 7-30 day payment terms. Trade and other payables are presented
as current liabilities unless payment is not during within 12
months from the reporting date. They are recognised initially at
their fair value and subsequently measured at amortised cost using
the effective interest method.
Interest-bearing loans and borrowings
Interest-bearing loans and borrowings are recognised initially
at fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortised cost using the effective interest
(EIR) method. The fair value implies the rate of return on the debt
component of the facility. This rate of return reflects the
significant risks attaching to the facility from the lenders'
perspective.
Determination of Fair Values
A number of the Company's accounting policies and disclosures
require the determination of fair value, for both financial and
non-financial assets and liabilities. Fair values have been
determined for measurement and/or disclosure purposes based on the
following methods. When applicable, further information about the
assumptions made in determining fair values is disclosed in the
notes specific to that asset or liability.
Trade and other receivables
The fair values of trade and other receivables are estimated as
the present value of future cash flows, discounted at the market
rate of interest at the measurement date. Current receivables with
no stated interest rate are measured at the original invoice amount
if the effect of discounting is immaterial. Fair value is
determined at initial recognition and, for disclosure purposes, at
each annual reporting date.
Non-derivative financial liabilities
Non-derivative financial liabilities are measured at fair value
at initial recognition and for disclosure purposes, at each annual
reporting date. Fair value is calculated based on the present value
of future principal and interest cash flows, discounted at the
market rate of interest at the measurement date.
Other financial assets and liabilities
The carrying amount of financial assets and liabilities with a
maturity of less than one year is assumed to approximate their fair
values.
Provisions
Provisions are measured at the present value of management's
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate
used to determine the present value is a pre-tax amount that
reflects current market assessments of the time value of money, and
the risks specific to the liability. The increase in the provision
due to the passage of time is recognised as interest expense.
Finance income
Interest income is made up of interest received on cash and cash
equivalents.
Deferred taxation
Deferred income tax is provided using the balance sheet method
on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable
temporary differences.
Deferred income tax assets are recognised for all deductible
temporary differences, carry forward of unused tax credits and
unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused
tax losses, can be utilised, except:
In respect of deductible temporary differences associated with
investments in subsidiaries, deferred income tax assets are
recognised only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary
differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at
the end of each reporting period and reduced to the extent that it
is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred income tax asset to
be utilised. Unrecognised deferred income tax assets are reassessed
at the end of each reporting period and are recognised to the
extent that it has become probable that future taxable profit will
be available to allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the
tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of
the reporting period.
Deferred income tax assets and deferred income tax liabilities
are offset if a legally enforceable right exists to set off current
tax assets against current income tax liabilities and the deferred
income taxes relate to the same taxable entity and the same
taxation authority.
Foreign currencies
i) Functional and presentation currency
The consolidated financial statements are presented in US
dollars, which is the Group's presentation currency.
ii) Transaction and Balances
Transactions in foreign currencies are initially recorded in the
functional currency at the respective functional currency rates
prevailing at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are retranslated at
the spot rate of exchange ruling at the reporting dates. All
differences are taken to the profit or loss, should specific
criteria be met.
Non-monetary items that are measured in terms of historical cost
in a foreign currency are translated using the exchange rate as at
the date of the initial transaction. Non-monetary items measured at
fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
iii) Group Companies
The results and financial position of foreign operations (none
of which has the currency of a hyperinflationary economy) that have
a functional currency different from the presentation currency are
translated into the presentation currency as follows:
-- Assets and liabilities for each statement of financial
position presented as translated at the closing rate at
the date of the statement of financial position.
-- Income and expenses for each income statement and statement
of profit or loss and other comprehensive income are translated
at average exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing
on the transactions dates, in which case income and expenses
are translated at the dates of the transactions), and
-- All resulting exchange differences are recognised in other
comprehensive income
Revenue Recognition
Revenue is measured based on the consideration to which the
Company expects to be entitled in exchange for transferring
promised goods or services to a customer, excluding amounts
collected on behalf of third parties.
Revenue is recognised when the Company satisfies a performance
obligation by transferring a promised good or service to the
customer, which is when the customer obtains control of the good or
service. A performance obligation may be satisfied at a point in
time or over time. The amount of revenue recognised is the amount
allocated to the satisfied performance obligation.
Rendering of services
Revenue from rendering of services is recognised as performance
obligations are satisfied. Payments are due from customers based on
the agreed billing milestone stipulated in the contracts or based
on the amounts certified by the customers.
Where performance obligations are satisfied over time as work
progresses, revenue is recognised progressively based on the
percentage of completion method. The stage of completion is
assessed by reference to the cost incurred relative to total
estimated costs (input method). The related costs are recognised in
profit or loss when they are incurred, unless they relate to future
performance obligations.
If the value of services rendered for the contract exceeds
payments received from the customer, a contract asset is recognised
and presented separately on the balance sheet. The contract assets
are transferred to receivables when the entitlement to payment
becomes unconditional. If the amounts invoiced to the customer
exceeds the value of services rendered, a contract liability is
recognised and separately presented in the statement of financial
position.
Interest Income
Interest income is recognised using the effective interest
method. When a receivable is impaired, the Group reduces the
carrying amount to its recoverable amount, being the estimated
future cash flow discounted at the original effective interest rate
of the instrument, and continues unwinding the discount as interest
income.
Contract assets and liabilities
Contract assets primarily relate to the Company's rights to
consideration for work completed but not billed at the reporting
date on project work. Contract assets are transferred to trade
receivables when the rights become unconditional. This usually
occurs when the Company invoices the customer.
Contract liabilities primarily relate to advance consideration
received from customers and progress billings issued in excess of
the Company's rights to the consideration.
6. Revenue
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Rendering of services (EMS
Singapore) - 1,526
Transfer Fees and Charges 256 273
-------------------- --------------
256 1,799
-------------------- --------------
Transaction fees and charges are from Angra Ltd and GS Fintech
UAB with transaction volume of US$79.40 million and US$21.70
million respectively.
7. Net Operating Expenses
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Continuing Operations
Costs of goods sold 148 516
Employee Cost 402 1,650
Travel Expenses 22 6
Admin Expense 349 393
Lease Expenses 31 38
Distribution, Advertising
and promotion 14 12
Office Expenses 39 46
Depreciation of property plant
and equipment 9 81
Doubtful accounts - 156
Interest on lease expenses - 2
Occupancy costs 10 15
Finance costs 6 20
1,029 2,915
------------------------------ -----------------------------
8(a) Key Management Personnel
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Directors' emoluments 183 301
8(b) Employee costs
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Wages and salaries 141 207
Wages and salaries - Cost
of sales - 836
Other employee costs 79 306
Total 220 1,349
------------------------------ ------------------------------
9. Earnings per share
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Loss for the period attributable to
members of the parent (737) (1,153)
Basic loss per share is calculated
by dividing the loss attributable
to owners of the Parent by the weighted
average number of ordinary
share in issue during the period.
Basic weighted average number of ordinary
shares in issue 1,824,745,771 1,548,558,192
Basic loss per share-cents (0.00040) (0.00074)
Diluted loss per share-cents (0.00040) (0.00074)
10. Segment Reporting
The consolidated entity's operating segments have been
determined with reference to the monthly management accounts used
by the chief operating decision maker to make decisions regarding
the consolidated entity's operations and allocation of working
capital.
Due to the size and nature of the consolidated entity, the Board
has been determined as the chief operating decision maker.
The consolidated entity operates in one business segment, being
information data technology and infrastructure.
The revenues and results are those of the consolidated entity as
a whole and are set out in the statement of profit and loss and
other comprehensive income. The segment assets and liabilities of
this segment are those of the consolidated entity and are set out
in the Statement of Financial Position.
11. Cash and Cash Equivalents
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Cash at Bank 2,198 3,334
12. Trade and Other Receivables
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Trade Receivables - 1,258
Prepayments 58 1,431
Other Receivables 15 349
73 3,038
------------------------- ----------------------------
13. Inventories
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Inventories - 16
Following the disposal of EMS Wiring Systems Pte Ltd, no
inventory left to be reported at the end of the reporting
period.
14. Property, Plant and Equipment
Right-of-Use Building Furniture Vehicle Total
Assets and improvts & Office
Equipment
US$'000 US$'000 US$'000 US$'000 US$'000
Cost
As at 31 March
2023 126 7 86 - 219
Additions / Transfer
in
Disposal / Write
Off (126) (7) - (133)
Adjustments
-------------- --------------- ------------- ------------- -------------
As at 30 September
2023 126 7 86 - 86
Accumulated depreciation
As at 31 March
20223 83 7 34 - 124
Charge for the
year 9 9
Disposal / Write
Off (83) (7) (90)
Adjustments
-------------- --------------- ------------- ------------- -------------
As at 30 September
2023 - - 43 - 43
Net book value
As at 31 March
2023 43 - 52 - 95
============== =============== ============= ============= =============
As at 30 September
2023 - - 43 - 43
============== =============== ============= ============= =============
15. Work in Progress
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Contract assets - 198
Contract assets primarily relate to the Company's right to
consideration for work completed but not billed at the reporting
date. If the value of services rendered exceeds payments received
from the customer, a contract assets is recognised and presented
separately. The contract assets is transferred to receivables when
the entitlement to payment becomes unconditional.
16. Intangible Assets
Intangible Assets Trademark Goodwill Digital Software Total
Asset & Licenses
US$'000 US$'000 US$'000 US$'000 US$'000
As at 31 March
2023 6 38 347 1,605 1,996
Additions - - - -
Impairment - - - -
As at 31 March
2023 6 38 347 1,605 1,996
Additions -
Impairment -
As at 30 September
2023 6 38 347 1,605 1,996
No impairment is recognized for the period.
17. Subsidiaries
Details of the Company's subsidiaries as of 30 September 2023
are as follows:
Name of Subsidiary Place of Proportion Proportion
Incorporation of of Voting
Ownership Power
Interest
Golden Saint Technologies
(Australia) Pty Ltd Australia 100 100
GS Fintech Ltd UK 100 100
GS Fintech Pte Ltd Singapore 100 100
Angra Limited UK 100 100
UAB Glindala Lithuania 100 100
Paypt Finance Ltd Canada 100 100
18. Taxation
Unrecognised tax losses
Where the realisation of deferred tax assets is dependent on
future taxable profits, losses carried forward are recognised only
to the extent that business forecasts predict that such profits
will be available to the companies in which losses arose.
The parent, GSTechnologies Ltd, is not liable to corporation tax
in BVI, so it has no provision for deferred tax. However, Golden
Saint Technologies (Australia) Pty Ltd is liable to tax in
Australia, EMS Wiirng Systems Pte Ltd and GS Fintech Pte Ltd is
liable for tax in Singapore while Angra Limited and GS Fintech Ltd
is liable in UK.
19. Share Capital and Reserves
The share capital of the Company is denominated in UK Pounds
Sterling. Each allotment during the period was then translated into
the Group's functional currency, US Dollars at the spot rate on the
date of issue.
Authorised Number of Shares US$'000
Ordinary Shares
As at 31 March 2023 1,682,032,370 8,281
Issues during the period
1 Apr 2023 - 30 Sep 2023 156,189,907 1,210
As at 30 September 2023 1,838,222,227 9,491
Treasury Shares as at 30
September 2023 (60,000,000) (808)
20. Non-Controlling Equity Interest
All entities within the group are currently 100% owned and
accordingly a non-controlling interest does not arise.
21. Trade and Other Payables
6 months ended 30 September
2023 2022
US$'000 US$'000
(Unaudited) (Unaudited)
Trade Payables 155 1,034
Accruals 20 555
Unearned revenue - 284
Other Payables 22 35
Income tax provision 4 -
Lease liabilities - 66
201 1,974
----------------------------- ------------------------------
Trade payables are non-interest bearing and are normally settled
on 60-day terms.
22. Loans Payable
30-Sep-23 30-Sep-22
---------------------------------------------------- -----------------------------------------------------
Term Current Non-current Current Non-current
US$'000 US$'000 US$'000 US$'000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Loan 5
1 years - - 176 616
Loan 3
2 years - - 85 43
-------------------------- ------------------------- -------------------------- -------------------------
- - 261 659
23. Commitments and Contingencies
The Group is subject to no material commitments or contingent
liabilities.
24. Subsequent Events
On 29 November 2023 the Company has entered into an option to
purchase agreement to acquire 60% of the share capital of EasySend
Ltd, a Northern Ireland incorporated company operating a
cross-border payments business. Completion of the acquisition of
EasySend is conditional, inter alia, on final due diligence, the
entering into of definitive sale and purchase documentation and
also on GST obtaining approval from the FCA for the change of
control of EasySend, a regulated entity.
On 6 December 2023 the Company entered into an agreement to
acquire 66.67% of the issued share capital of Semnet Pte Ltd, a
cybersecurity company based in Singapore, for a total consideration
of US$1.8 million, payable through US$0.8 million in cash and
US$1.0 million in new shares in the Company. Completion of the
Semnet acquisition is subject, inter alia, to the agreement of a
completion assets statement, which may require adjustment of the
consideration upwards or downwards, and no material adverse change
having occurred in the Semnet business.
25. Financial risk management objectives and policies
The Group's activities expose it to a variety of financial
risks. The Group's Board provides certain specific guidance in
managing such risks, particularly as relates to credit and
liquidity risk. Any form of borrowings requires approval from the
Board and the Group does not currently use any derivative financial
instruments to manage its financial risks. The key financial risks
and the Group's major exposures are as follows:
Credit risk
The maximum exposure to credit risk is represented by the
carrying amount of the financial assets. In relation to cash and
cash equivalents, the Group limits its credit risk with regards to
bank deposits by only dealing with reputable banks. In relation to
sales receivables, the Group's credit risk is managed by credit
checks for credit customers and approval of letters of credit by
the Group's advising bank.
Foreign Currency Risk
Currency risk is the risk that the value of a financial
instrument will fluctuate due to changes in foreign exchange rates.
The company is exposed to currency risk on sales and purchases,
that are denominated in foreign currencies.
26. Liquidity risk
Liquidity risk is the risk that the Group will not be able to
meet its financial obligations as they fall due.
The Group monitors its risk to a shortage of funds using a
combination of cash flow forecasts, budgeting and monitoring of
operational performance.
27. Capital management
Capital includes equity attributable to the equity holders of
the parent. Refer to the statement of changes in equity for
quantitative information regarding equity.
The Group's primary objectives when managing capital are to
safeguard its ability to continue as a going concern in order to
provide returns for shareholders. For details of the capital
managed by the Group as of 30 September 2023, please see Note
19.
The Group is not subject to any externally imposed capital.
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END
IR FESFMSEDSEDE
(END) Dow Jones Newswires
December 21, 2023 02:00 ET (07:00 GMT)
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