REG - UniVision Eng Ltd - Final Results FY2017 <Origin Href="QuoteRef">UVEL.L</Origin> - Part 2
04/09/2017 17:40
- Part 2: For the preceding part double click ID:nRSD7861Pa
How our audit addressed the key audit matter
As disclosed in note 5 Critical accounting estimates and judgements and note 20 Trade and other receivables of the consolidated financial statements, as at 31 March 2017, the Group and the Company had trade and other receivables, of £2,903,913. For the year ended 31 March 2017, an impairment loss of approximately £51,028has been recognised on certain receivables that are due and outstanding for a certain period of time. The impairment assessment of the trade and other receivables requires exercise of significant judgement by management of the Company and is subjective. We have identified the impairment assessment of the Group's and Company's trade and other receivables as a key audit matter. Regarding the impairment of trade and other receivables, we performed the following procedures: · We understood and evaluated the Group's and Company's internal
controls over the process of identifying events or circumstances give rise to impairment on trade and unbilled receivables and the respective impairment assessments, and
we tested relevant key internal controls. · We performed an independent assessment to identify events or circumstances which may give rise to impairment of trade and
unbilled receivables on a sample basis. We focused on trade receivable accounts and amounts due with material balances, were long outstanding or had poor credit records.
· We obtained the impairment calculation schedule of a specific trade and unbilled receivable account on a sample basis and assessed the impairment analysis performed
by management, including inspection of the relevant supporting documents.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE SHAREHOLDERS OF
UNIVISION ENGINEERING LIMITED
(Incorporated in Hong Kong with limited liability)
OTHER INFORMATION
The directors of the Company are responsible for the other information. The other information comprises the information
included in the annual report, but does not include the consolidated financial statements and our auditor's report
thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF DIRECTORS FOR THE CONSOLIDATED FINANCIAL STATEMENTS
The directors of the Company are responsible for the preparation of the consolidated financial statements that give a true
and fair view in accordance with IFRSs, and for such internal control as the directors determine is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing the Group's ability
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
The directors are assisted by the Audit Committee in discharging their responsibilities for overseeing the Group's
financial reporting process.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE SHAREHOLDERS OF
UNIVISION ENGINEERING LIMITED
(Incorporated in Hong Kong with limited liability)
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. The
report is made solely to the Company's shareholders, as a body, in compliance with the Alternative Investment Market Rules
("AIM Rules") for companies as published by the London Stock Exchange plc, and for no other purpose. We do not assume
responsibility towards or accept liability to any other person for the contents of this report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
will always detect material misstatements when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
· Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
· Obtain an understanding of internal control relevant to the audit 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 Group's
internal control.
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
· Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainly exists related to events or conditions that may cast significant
doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE SHAREHOLDERS OF
UNIVISION ENGINEERING LIMITED
(Incorporated in Hong Kong with limited liability)
· Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner
that achieves fair presentation.
· Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated and company financial statements. We are responsible
for the direction, supervision and performance of the group and company audit. We remain solely responsible for our audit
opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the
audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
HKCMCPA Company Limited
Certified Public Accountants
PANG KING SZE, RUFINA
Practising Certificate number P05228
Hong Kong, China
4 September 2017
UNIVISION ENGINEERING LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the year ended 31 March 2017
Notes 2017 2016
£ £
Continuing operations
Revenue 7(a) 4,795,739 3,866,521
Cost of sales 10 (3,150,985) (2,615,802)
Gross profit 1,644,754 1,250,719
Other income 8 4,091 9,118
Other gains and losses 9 (11,529) (36,730)
Selling and distribution expenses 10 (133,825) (121,090)
Administrative expenses 10 (1,051,759) (963,072)
Finance costs 12 (117) (1,234)
Profit before income tax 451,615 137,711
Income tax expense 13 - -
Profit for the year from continuing operations 451,615 137,711
Discontinued operations
Loss for the year from discontinued operations 28 (40,723) (478,320)
Profit/(loss) for the year 410,892 (340,609)
Other comprehensive income, net of tax
Item that may be reclassified subsequently to profit or loss:
Exchange differences on translation foreign operations 767,799 142,154
Total comprehensiveincome/(loss) for the year 1,178,691 (198,455)
Profit/(loss) attributable to :
Equity shareholders of the Company
Profit from continuing operations 451,615 137,711
Loss from discontinued operations (21,278) (249,922)
Equity shareholders of the Company 430,337 (112,211)
Non-controlling interests (19,445) (228,398)
410,892 (340,609)
Total comprehensiveincome/(loss) for the year attributable to:
Equity shareholders of the Company
Total comprehensive income from continuing operations 1,219,414 289,867
Loss from discontinued operations (21,278) (249,922)
Equity shareholders of the Company 1,198,136 39,945
Non-controlling interests (19,445) (238,400)
1,178,691 (198,455)
Earnings per share- Basic and Diluted
Continuing operations 14 0.11p 0.04p
Discontinuing operations 14 (0.01)p (0.07)p
UNIVISION ENGINEERING LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2017
Notes 2017 2016
£ £
ASSETS
Non-current assets
Plant and equipment 16 50,079 42,629
Amounts due from related companies 26 3,613,896 3,064,336
Total non-current assets 3,663,975 3,106,965
Current assets
Inventories 18 1,100,058 749,189
Tradeand other receivables 20 2,903,913 2,460,855
Bank deposits 21 511,642 448,056
Cash and cash equivalents 21 1,188,268 654,244
Total current assets 5,703,881 4,312,344
Assets of disposal group classified as held for sale 28 - 3,616,582
Total assets 9,367,856 11,035,891
LIABILITIES AND EQUITY
Current liabilities
Tradeand other payables 22 3,165,379 2,505,939
Obligations under finance lease - 660
Total current liabilities 3,165,379 2,506,599
Non-current liabilities
Amount due to a related company 22 123,775 -
Liabilities of disposal group classified as held for sale 28 - 3,214,990
Total liabilities 3,289,154 5,721,589
Equity
Share capital 24 3,890,257 1,697,617
Reserves 2,188,445 3,462,605
Equity attributable to equity shareholders of the Company 6,078,702 5,160,222
Non-controlling interests - 154,080
Total equity 6,078,702 5,314,302
Total liabilities and equity 9,367,856 11,035,891
The financial statements on pages 27 to 73 were authorised for issue by the board of directors on
4 September 2017 and were signed on its behalf by:
Stephen Sin Mo KOO, Director Chun Pan WONG, Director
UNIVISION ENGINEERING LIMITED
COMPANYSTATEMENT OF FINANCIAL POSITION
As at 31 March 2017
Notes 2017 2016
£ £
ASSETS
Non-current assets
Plant and equipment 16 50,079 42,629
Interest in a subsidiary 17 - 99,500
Amounts due from related companies 26 3,613,896 3,064,336
Total non-current assets 3,663,975 3,206,465
Current assets
Inventories 18 1,100,058 750,353
Trade and other receivables 20 2,903,913 2,460,855
Bank deposits 21 511,642 448,056
Cash and cash equivalents 21 1,188,268 654,244
Total current assets 5,703,881 4,313,508
Total assets 9,367,856 7,519,973
LIABILITIES AND EQUITY
Current liabilities
Tradeand other payables 22 3,165,379 2,505,939
Obligations under finance lease - 660
Total current liabilities 3,165,379 2,506,599
Non-current liability
Amount due to a related company 22 123,775 -
Total liabilities 3,289,154 2,506,599
Equity
Share capital 24 3,890,257 1,697,617
Reserves 2,188,445 3,315,757
Total equity 6,078,702 5,013,374
Total liabilities and equity 9,367,856 7,519,973
The financial statements on pages 27 to 73 were authorised for issue by the board of directors on
4 September 2017 and were signed on its behalf by:
Stephen Sin Mo KOO, Director Chun Pan WONG, Director
UNIVISION ENGINEERING LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2017
Attributable to the equity shareholders of the Company
Sharecapital Sharepremium Retained earnings Special capital reserve "A" Specialcapital reserve "B" Statutory surplus reserves Translationreserve Sub-total Non-controlling interest Totalequity
£ £ £ £ £ £ £ £ £ £
(Note 1) (Note 2) (Note 3)
Balance at 1 April 2015 1,697,617 2,192,640 71,147 155,876 143,439 21,703 966,362 5,248,784 392,480 5,641,264
Comprehensive income:
Profit or loss - - (112,211) - - - - (112,211) (228,398) (340,609)
Other comprehensive income:
Exchange difference arising on translation of foreign operations - - - - - - 152,156 152,156 (10,002) 142,154
Total other comprehensive income for the year, net of tax - - - - - - 152,156 152,156 (10,002) 142,154
Total comprehensive income - - (112,211) - - 152,156 39,945 (238,400) (198,455)
Transfer to statutory surplus reserves - - (4,241) - - 4,241 - - - -
Reversal of translation effect on demerger - - - - - (6,850) 6,850 - - -
Dividend paid in respect of 2015 year - - (128,507) - - - - (128,507) - (128,507)
Total transactions with owners, recognised directly in equity - - (132,748) - - (2,609) 6,850 (128,507) (128,507)
Balance at 31 March 2016 1,697,617 2,192,640 (173,812) 155,876 143,439 19,094 1,125,368 5,160,222 154,080 5,314,302
Comprehensive income:
Profit or loss - - 430,337 - - - - 430,337 (19,445) 410,892
Other comprehensive income:
Exchange difference arising on translation of foreign operations - - - - - - 718,406 718,406 49,393 767,799
Total other comprehensive income for the year, net of tax - - - - - - 718,406 718,406 49,393 767,799
Total comprehensive income - - 430,337 - - - 718,406 1,148,743 29,948 1,178,691
Disposal of a subsidiary - - (43,734) - - (19,094) (13,166) (75,994) (184,028) (260,022)
Dividend paid in respect of 2016 year - - (154,269) - - - - (154,269) - (154,269)
Transfer from share premium 2,192,640 (2,192,640) - - - - - - - -
Total transactions with owners, recognised directly in equity 2,192,640 (2,192,640) (198,003) - - (19,094) (13,166) (230,263) (184,028) (414,291)
Balance at 31 March 2017 3,890,257 - 58,521 155,876 143,439 - 1,830,609 6,078,702 - 6,078,702
The currency translation from Hong Kong Dollars ("HK$") to the presentation currency of Sterling Pound ("£") used in the
financial statements has no impact on the available distributable reserves of the Company at 31 March 2017.
Notes:
1. Share premium
The Company, by resolution reduced the share premium account for the year ended 31 March 2017.
2. Special capital reserve "A"
Pursuant to the Order of the High Court dated 20 November 2004, any future recoveries of the Company's accumulated
provision for obsolete inventories and provision for bad debts amounting to HK$1,935,002 and HK$3,592,540 respectively will
be credited to non-distributable special capital reserve "A" account.
3. Special capital reserve "B"
By a special resolution passed on 30 July 2004 and Order of the High Court dated 20 November 2004, the authorised and
issued capital of the Company was reduced from HK$159,245,000 divided into 31,849 ordinary shares of HK$5,000 each to
HK$16,405,000 divided into 3,281 ordinary shares of HK$5,000 each. The reduction of capital was effected by cancellation of
28,568 ordinary shares of HK$5,000 each in the issued and paid up share capital of the Company. The Company established a
non-distributable special capital reserve "B" account into which HK$2,071,307 was credited as a result of the capital
reduction.
UNIVISION ENGINEERING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2017
Attributable to equity shareholders of the Company
Sharecapital Sharepremium Retained earnings Specialcapital reserve "A" Specialcapitalreserve "B" Translationreserve Totalequity
£ £ £ £ £ £ £
(Note 1) (Note 2) (Note 3)
Balance at 1 April 2015 1,697,617 2,192,640 (282,268) 155,876 143,439 915,978 4,823,282
Comprehensive income:
Profit or loss - - 171,767 - - - 171,767
Other comprehensive income:
Exchange difference arising on translation of foreign operations - - - - - 146,832 146,832
Total other comprehensive income for the year, net of tax - - - - - 146,832 146,832
Total comprehensive income - - 171,767 - - 146,832 318,599
Dividend paid in respect of 2015 year - - (128,507) - - - (128,507)
Total transactions with owners, recognised directly in equity - - (128,507) - - - (128,507)
Balance at 31 March 2016 1,697,617 2,192,640 (239,008) 155,876 143,439 1,062,810 5,013,374
Comprehensive income:
Profit or loss - - 451,798 - - - 451,798
Other comprehensive income:
Exchange difference arising on translation of foreign operations - - - - - 767,799 767,799
Total other comprehensive income for the year, net of tax - - - - - 767,799 767,799
Total comprehensive income - - 451,798 - - 767,799 1,219,597
Dividend paid in respect of 2016 year (154,269) - - - (154,269)
Transfer from share premium 2,192,640 (2,192,640) - - - - -
Total transactions with owners, recognised directly in equity 2,192,640 (2,192,640) (154,269) - - - (154,269)
Balance at 31 March 2017 3,890,257 - 58,521 155,876 143,439 1,830,609 6,078,702
The currency translation from Hong Kong Dollars ("HK$") to the presentation currency of Sterling Pound ("£") used in the
financial statements has no impact on the available distributable reserves of the Company at 31 March 2017.
Notes:
1. Share premium
The Company, by resolution reduced the share premium account for the year ended 31 March 2017.
2. Special capital reserve "A"
Pursuant to the Order of the High Court dated 20 November 2004, any future recoveries of the Company's accumulated
provision for obsolete inventories and provision for bad debts amounting to HK$1,935,002 and HK$3,592,540 respectively will
be credited to non-distributable special capital reserve "A" account.
3. Special capital reserve "B"
By a special resolution passed on 30 July 2004 and Order of the High Court dated 20 November 2004, the authorised and
issued capital of the Company was reduced from HK$159,245,000 divided into 31,849 ordinary shares of HK$5,000 each to
HK$16,405,000 divided into 3,281 ordinary shares of HK$5,000 each. The reduction of capital was effected by cancellation of
28,568 ordinary shares of HK$5,000 each in the issued and paid up share capital of the Company. The Company established a
non-distributable special capital reserve "B" account into which HK$2,071,307 was credited as a result of the capital
reduction.
UNIVISION ENGINEERING LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2017
Notes 2017 2016
£ £
Cash flows from operating activities
Profit before income tax 451,615 137,711
Adjustments for:
Interest expense 12 117 1,234
Interest income 8 (4,081) (959)
Depreciation of plant and equipment 16 22,821 16,546
Inventory written-off 22,561 -
Impairment loss recognised on amounts due from customers for contracts-in-progress 51,028 21,470
Reversal of provision of doubtful debt (21,201) -
Impairment loss on goodwill - 25,830
Gain on disposal of a subsidiary 9 (41,992) -
480,868 201,832
Changes inoperating assets and liabilities:
(Increase)/decrease in inventories (247,982) 111,894
Increase in tradeand other receivables (99,937) (457,008)
Decrease in amounts due from related companies 6,692 -
Increase in trade and other payables 269,404 65,846
Net cash generated from/(used in) operations 409,045 (77,436)
Net cash (used in)/generated from discontinued operations (304,889) 99,200
Net cash generated from operating activities 104,156 21,764
Cash flows from investing activities
Interest received 8 4,081 959
Purchase of plant and equipment (23,822) (25,558)
Increase/(decrease) in bank deposit 3,477 (180,842)
Proceeds from disposal of a subsidiary 58,841 -
Net cash used in discontinued operations (1,679) (9,603)
Net cash generated from/(used in)investing activities 40,898 (215,044)
Cash flows from financing activities
Interest paid 12 (117) (1,234)
Dividend paid to shareholders of the Company 15 (154,269) (128,507)
Repayment of finance lease liabilities (722) (7,588)
Advance from a related company 123,775 -
Net cash generated from discontinued operations 261,375 51,429
Net cash generated from/(used in)financing activities 230,042 (85,900)
Net increase/(decrease) in cash and cash equivalents 375,096 (279,180)
Cash and cash equivalents at beginning of year 654,244 1,221,707
Less: cash and cash equivalents from disposal group classified as held for sale - (300,527)
Effect of foreign exchange rate changes on cash and cash equivalents 158,928 12,244
Cash and cash equivalents at end of year 21 1,188,268 654,244
UNIVISION ENGINEERING LIMITED
COMPANY STATEMENT OF CASH FLOWS
For the year ended 31 March 2017
Notes 2017 2016
£ £
Cash flows from operating activities
Profit before
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