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REG - UniVision Eng Ltd - Final Results <Origin Href="QuoteRef">UVEL.L</Origin> - Part 3

- Part 3: For the preceding part double click  ID:nRSB8565Ib 

Changes
in the carrying amount of the allowance account are recognised in profit or loss. When a trade receivable is considered
uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are
credited to profit or loss. 
 
If, in a subsequent period, the amount of 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 loan and receivable at the date the impairment is reversed does not exceed
what the amortised cost would have been had the impairment not been recognised. 
 
4.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
4.8     Financial instruments (continued) 
 
4.8.2  Financial liabilities and equity instruments 
 
Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity
instrument. 
 
Equity instrument 
 
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue
costs. 
 
Financial liabilities 
 
Financial liabilities (including trade and other payables and loan and borrowings) are subsequently measured at amortised
cost, using the effective interest method. 
 
Effective interest method 
 
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash payments (including all fees 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 liability or, where appropriate, a
shorter period, to the net carrying amount on initial recognition. Interest expense is recognised on an effective interest
basis. 
 
Derecognition 
 
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. 
 
On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of
the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive
income and accumulated in equity is recognised in profit or loss. 
 
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or
expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable is recognised in profit or loss. 
 
4.8.3  Offsetting financial instruments 
 
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously. 
 
4.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
4.9     Trade and other receivables 
 
Trade and other receivables are initially recognised at fair value and thereafter stated at amortised cost less allowance
for impairment of bad and doubtful debts, except where the receivables are interest-free loans made to related parties
without any fixed repayment terms or the effect of discounting would be immaterial. In such cases, the receivables are
stated at cost less allowance for impairment of bad and doubtful debts. 
 
4.10   Bank deposits 
 
They represent bank deposits with maturities greater than three months, which are restricted as bank deposits held as
collateral for performance bonds issued by the bank to customers. 
 
4.11   Cash and cash equivalents 
 
In the statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with banks and other
short-term highly liquid investments with original maturities of three months or less. 
 
4.12   Trade and other payables 
 
Trade and other payables are initially recognised at fair value and subsequently stated at amortised cost unless the effect
of discounting would be immaterial, in which case they are stated at cost. 
 
4.13   Interest-bearing borrowings 
 
Interest-bearing borrowings are initially recognised at fair value less transaction costs. Subsequent to initial
recognition, the interest-bearing borrowings are stated at amortised cost with any difference between the amount initially
recognised and redemption value being recognised in the consolidated statement of comprehensive income over the period of
the borrowings together with any interest and fees payable using the effective interest method. 
 
4.14   Share capital 
 
Ordinary shares are classified as equity. 
 
4.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
4.15   Revenue recognition 
 
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and rendering of
services in the ordinary course of the Group's activities. Revenue is shown net of business tax, value-added tax, rebates
and discounts, and after eliminating sales within the Group. 
 
The Group recognises revenue when the amount of revenue and related cost can be reliably measured, it is probable that
future economic will flow to the entity and when specific criteria have been met for each of the Group's activities as
described below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the
sale have been resolved. The Group bases its estimates on historical results, taking into consideration the type of
customer, the type of transaction and the specifics of each arrangement. 
 
(i)      Construction contracts 
 
Revenue from construction contracts is recognised when the outcome of a construction contract can be estimated reliably: 
 
§  revenue from a fixed price contract is recognised using the percentage of completion method, measured by reference to
the percentage of contract costs incurred to date to estimated total contract costs for the contract; and 
 
§  revenue from a cost plus contract is recognised by reference to the recoverable costs incurred during the period plus an
appropriate proportion of the total fee, measured by reference to the proportion that costs incurred to date bear to the
estimated total costs of the contract. 
 
When the outcome of a construction contract cannot be estimated reliably, revenue is recognised only to the extent of
contract costs incurred that it is probable will be recoverable. 
 
(ii)      Maintenance contracts 
 
Revenue from maintenance contracts is recognised on a straight line basis over the term of the maintenance contract. 
 
(iii)     Product sales 
 
Revenue from product sales is recognised on the transfer of risks and rewards of ownership, which generally coincides with
the delivery of goods to customers and the passing of title to customers. 
 
(iv)     Interest income 
 
Interest income is recognised as it accrues using the effective interest method. 
 
(v)     Dividend income 
 
Dividend income from investments is recognised when the shareholder's right to receive payment has been established
(provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured
reliably). 
 
4.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
4.16   Construction contracts 
 
When the outcome of a construction contract can be estimated reliably, contract costs are recognised as an expense by
reference to the stage of completion of the contract at the end of the reporting period. When it is probable that total
contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. When the
outcome of a construction contract cannot be estimated reliably, contract costs are recognised as an expense in the period
in which they are incurred. 
 
Contracts in progress at the end of the reporting period are recorded in the statement of financial position at the net
amount of costs incurred plus recognised profit less recognised losses and progress billings, and are presented under the
caption of "Trade and other receivables" or "Trade and other payables" in the statement of financial position as the
"Amounts due from customers for contracts-in-progress" (as an asset) or the "Amounts due to customers for
contracts-in-progress" (as a liability), as applicable. Progress billings not yet paid by the customer are included in the
statement of financial position. Amounts received before the related work is performed are included in the statement of
financial position, as a liability, as "Advances received". 
 
4.17   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. 
 
All other borrowing costs are recognised in profit or loss in the period in which they are incurred. 
 
4.18   Leases 
 
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases. 
 
Operating lease payments are recognised as an expense on a straight-line basis over the lease term.  In the event that
lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate
benefit of incentives is recognised as a reduction of rental expense on a straight-line basis. 
 
4.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
4.19   Employee benefit 
 
These comprise short term employee benefits and contributions to defined contribution retirement plans. 
 
Short-term employee benefits, including salaries, annual bonuses, paid annual leave, leave passage, contributions to
defined contribution retirement plans and the cost of non-monetary benefits are accrued in the year in which the associated
services are rendered by employees of the Group. Where payment or settlement is deferred and the effect would be material,
these amounts are stated at their present values. 
 
Contributions to the defined contribution scheme are charged to profit or loss when incurred. 
 
4.20   Income tax 
 
Income tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive
income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In
this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. 
 
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the
tax authorities. 
 
Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax
liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income tax is not accounted
for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that
at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are
expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. 
 
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be
available against which the temporary differences can be utilised. 
 
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except for
deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and
it is probable that the temporary difference will not reverse in the foreseeable future. 
 
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis. 
 
4.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
 
4.21   Provisions and contingent liabilities 
 
Provisions are recognised for other liabilities of uncertain timing or amount when the Group or the Company has a legal or
constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be
required to settle the obligation and a reliable estimate can be made. Where the time value of money is material,
provisions are stated at the present value of the expenditure expected to settle the obligation. 
 
4.22   Dividend distributions 
 
Dividend distributions to the Company's shareholders are recognised as liabilities in the Group's and the Company's
financial statements in the period in which the dividends are approved by the Company's shareholders or directors, where
appropriate. 
 
4.23   Events after the reporting period 
 
Events after the reporting period that provide additional information about the Group's and the Company's position at the
end of the reporting period or those that indicate the going concern assumption is not appropriate are adjusting events and
are reflected in the financial statements. Events after the reporting period that are not adjusting events are disclosed in
the notes to the financial statements when material. 
 
5.      CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS 
 
Critical judgements in applying accounting policies 
 
In the process of applying the accounting policies, Management has made the following judgements that have the most
significant effect on the amounts recognised in the financial statements (apart from those involving estimations, which are
dealt with below). 
 
(i)       Estimation of contract costs 
 
Estimated costs to complete contracts are judged by the Directors through the application of their experience and knowledge
of the industry in which the Group operates. However, contract performance can be difficult to predict accurately.  The
Directors believe that contract budgets do not deviate materially from actual costs incurred due to a strong cost control
system with regular reviews of budgets which highlight any incidences that could affect estimated costs to completion. 
 
The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting
periods, 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, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year, are discussed below. 
 
(i)       Impairment of assets 
 
The Group has to exercise judgement in determining whether an asset is impaired or the event previously causing the asset
impairment no longer exists, particularly in assessing: (1) whether an event has occurred that may affect the asset value
or such event affecting the asset value has not been in existence; (2)  whether the carrying value of an asset can be
supported by the net present value of future cash flows which are estimated based upon the continued use of the asset or
derecognition; and (3) the appropriate key assumptions to be applied in preparing cash flow projections including whether
these cash flow projections are discounted using an appropriate rate. Changing the assumptions selected by management to
determine the level of impairment, including the discount rates or the growth rate assumptions in the cash flow
projections, could materially affect the net present value used in the impairment test. 
 
5.      CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) 
 
Key sources of estimation uncertainty (continued) 
 
(ii)      Impairment of trade and other receivables 
 
The estimation of impairment of trade and other receivables includes an assessment of recoverability of individual account
balances and a review of ageing analysis of trade and other receivables by the Directors.  The Directors will also review
the credit history of customers in assessing the recoverability of trade and other receivables.  When any indication comes
to their attention that a trade and other receivable might not be recovered in full, impairment will be made and recognised
as an expense in the consolidated statement of comprehensive income.  As at 31 March 2016, the total carrying amount of the
Group's trade and other receivables was £5,525,191 (2015: £7,296,438) and the total carrying amount of the Company's trade
and other receivables was £5,525,191 (2015: £4,812,753). 
 
(iii)     Income taxes 
 
The Group is subject to income tax in different jurisdiction in Hong Kong, Taiwan and the PRC.  Significant estimates are
required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate
tax determination is uncertain during the ordinary course of business. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax
provisions in the period in which such determination is made. 
 
As at 31 March 2016, the Group has unused tax losses of £4,657,046 (2015: £4,746,391) available for offset against future
profits. A deferred tax asset of £768,413 (2015: £783,154) has not been recognised in respect of the unused tax losses. In
cases where there are future profits generated to utilise the tax losses, a material deferred tax asset may arise, which
would be recognised in the consolidated statement of comprehensive income for the period in which such future profits are
recorded. 
 
6.      FINANCIAL INSTRUMENTS 
 
(a)      Categories of financial instruments 
 
                                     2016         2015       
                                     £            £          
                                                             
 Financial assets:                                           
 Loans and receivables                                       
 - Trade and other receivables       2,460,855    4,323,003  
 - Bank deposits                     448,056      251,641    
 - Cash and bank balances            654,244      1,221,707  
                                                             
 Financial liabilities:                                      
 - Trade and other payables          2,505,939    3,242,616  
 - Loan and borrowings               -            1,122,052  
 - Obligation under finance lease    660          8,335      
 
 
(b)     Financial risk management objectives and policies 
 
The Group's major financial instruments include loan and borrowings, trade and other receivables and trade and other
payables. Details of these financial instruments are disclosed in the respective notes. The risks associated with these
financial instruments include currency risk, interest rate risk, credit risk and liquidity risk.  The policies on how these
risks are mitigated are set out below.  Management manages and monitors these exposures to ensure appropriate measures are
implemented in a timely and effective manner. 
 
(i)      Market risk 
 
(1)   Currency risk 
 
Certain entities in the Group have foreign currency transactions and have foreign currency denominated monetary assets and
liabilities, which expose the Group to foreign currency risk. The Company has foreign currency transactions, which expose
the Company to foreign currency risk. 
 
The carrying amounts of the Group's and the Company's foreign currency denominated monetary assets and monetary
liabilities, mainly represented by trade and other receivables, cash and bank balances, trade and other payables and loan
and borrowings, at the end of the reporting period are as follows: 
 
        The Group    The Company  
        Assets       Liabilities    Assets       Liabilities  
        2016         2015           2016         2015           2016         2015           2016         2015        
                                                                                                                     
 NTD    -            123,413,717    -            100,013,562    -            -              -            -           
 RMB    53,775       1,129          541,544      5,009,660      53,775       -              541,544      5,009,660   
 USD    40,506       54,560         2,732        21,320         40,506       -              2,732        -           
 HK$    3,230,940    34,982,030     1,832,885    19,577,077     3,230,940    34,980,407  `  1,832,885    19,481,353  
 
 
The Group currently does not have any policy on hedges of foreign currency risk.  However, Management monitors the foreign
currency risk exposure and will consider hedging significant foreign currency risk should the need arise. 
 
6.      FINANCIAL INSTRUMENTS (CONTINUED) 
 
(b)     Financial risk management objectives and policies (continued) 
 
(i)      Market risk (continued) 
 
(1)   Currency risk (continued) 
 
Sensitivity analysis 
 
The following table details the Group's sensitivity to a 5% increase and decrease in Sterling against the relevant foreign
currencies and all other variables were held constant.  5% (2015: 5%) is the sensitivity rate used when reporting foreign
currency risk internally to key management personnel and represents management's assessment of the reasonably possible
change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currencies denominated
monetary items and adjusts their translation at the end of the reporting period for a 5% (2015: 5%) change in foreign
currency rates.  A positive/(negative) number indicates a decrease/(increase) in post-tax profit/(loss) for the year when
Sterling strengthens 5% (2015: 5%) against the relevant foreign currencies.  For a 5% (2015: 5%) weakening of Sterling
against the relevant currency, there would be an equal but opposite impact on the post-tax profit/(loss) for the year. 
 
                                        2016        2015      
                                        £           £         
 NTD                                                          
 Post-tax profit for the year           -           26,609    
                                                              
 RMB                                                          
 Post-tax (loss)/profit for the year    (25,672)    (28,670)  
                                                              
 USD                                                          
 Post-tax profit for the year           1,988       1,188     
                                                              
 HK$                                                          
 Post-tax profit for the year           73,582      70,595    
 
 
(2)   Interest rate risk 
 
The Group and the Company is exposed to fair value interest rate risk in relation to fixed rate bank deposits and
borrowings at fixed rates. The Group and the Company is exposed to cash flow interest rate risk due to fluctuation of the
prevailing market interest rate on certain bank borrowings which carry at prevailing market interest rates as shown in note
25.  The Group currently does not have an interest rate hedging policy.  However, Management monitors interest rate
exposure and will consider hedging significant interest rate exposure should the need arises. 
 
The Group's and the Company's exposures to interest rates on financial liabilities are detailed in the liquidity risk
management section of this note. 
 
6.      FINANCIAL INSTRUMENTS (CONTINUED) 
 
(b)     Financial risk management objectives and policies (continued) 
 
(i)      Market risk (continued) 
 
(2)   Interest rate risk (continued) 
 
Sensitivity analysis 
 
The sensitivity analysis below has been determined based on the change in interest rates and the exposure to interest rates
for the non-derivative financial liabilities at the end of the reporting period and on the assumption that the amount
outstanding at the end of the reporting period was outstanding for the whole year and held constant throughout the
financial year.  The 25 basis points increase or decrease represents Management's assessment of a reasonably possible
change in interest rates over the period until the next fiscal year.  The analysis is performed on the same basis for
2015. 
 
For the year ended 31 March 2016, if interest rates had been 25 basis points higher/lower, with all other variables held
constant, the Group's post-tax profit for the year would increase/decrease by approximately £0 (2015: £2,117). 
 
(ii)     Credit risk 
 
At 31 March 2016, the Group's and the Company's maximum exposure to credit risk in the event of the counterparties' failure
to perform their obligations in relation to each class of recognised financial assets is the carrying amount of those
assets as stated in the consolidated statement of financial position. 
 
The Group's credit risk is primarily attributable to its trade and other receivables. In order to minimise the credit risk,
the Management of the Group has a credit policy in place and the exposures to these credit risks are monitored on an
ongoing basis.  Credit evaluations of its customers' financial position and condition are performed on each and every major
customer periodically.  These evaluations focus on the customer's past history of making payments when due and current
ability to pay, and take into account information specific to the customer as well as pertaining to the economic
environment in which the customer operates.  Debts are usually due within 90 days from the date of billing.  The Group's
exposure to credit risk is influenced mainly by the individual characteristics of each customer.  The default risk of the
industry and country in which customers operate also has an influence on credit risk. At the end of the reporting period,
the Group had no significant concentrations of credit risk where individual trade and other receivables balance exceed 10%
of the total trade and other receivables at the end of the reporting period. 
 
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by
international credit rating agencies. Also, the Group has no significant concentration of credit risk, with exposure spread
over a number of counterparties and customers. 
 
Further quantitative disclosures in respect of the Group's and the Company's exposure to credit risk arising from trade and
other receivables are set out in note 21. 
 
6.      FINANCIAL INSTRUMENTS (CONTINUED) 
 
(b)     Financial risk management objectives and policies (continued) 
 
(iii)    Liquidity risk 
 
In managing the liquidity risk, the Group's policy is to regularly monitor and maintain an adequate level of cash and cash
equivalents determined by Management to finance the Group's operations. Management also needs to ensure the continuity of
funding for both the short and long terms, and to mitigate the effects of cash flow fluctuation. At 31 March 2016, the
Group had aggregate banking facilities of £438,574 (2015: £2,412,189), of which £438,574 were unused (2015: £1,290,137). 
 
The following table details the contractual maturities of the Group's and the Company's financial liabilities at the end of
the reporting period, which is based on the undiscounted cash flows and the earliest date on which the Group can be
required to pay. The table includes both interest and principal cash flows. 
 
The Group 
 
                                        2016           
                                        Weighted         Within       More than     More than                      Carrying    
                                        average          1 year       1 year but    2 years but    Total           amount      
                                        effective        or on        less than     less than      undiscounted    at 31       
                                        interest rate    Demand       2 years       5 years        cash flow       March 2016  
                                        %                £            £             £              £               £           
 Non-derivative financial liabilities:                                                                                         
 Loan and borrowings                    3.64% - 3.76%    -            -             -              -               -           
 Trade and other payables                                2,505,939    -             -              2,505,939       2,505,939   
 Obligations under finance lease        3.25%            768          -             -              768             660         
                                                                                                                               
                                                         2,506,707    -             -              2,506,707       2,506,599   
                                                                                                                               
 
 
6.      FINANCIAL INSTRUMENTS (CONTINUED) 
 
(b)     Financial risk management objectives and policies (continued) 
 
(iii)    Liquidity risk (continued) 
 
The Group 
 
                                        2015           
                                        Weighted         Within       More than     More than                      Carrying    
                                        average          1 year       1 year but    2 years but    Total           amount      
                                        effective        or on        less than     less than      undiscounted    at 31       
                                        interest rate    Demand       2 years       5 years        cash flow       March 2015  
                                        %                £            £             £              £               £           
 Non-derivative financial liabilities:                                                                                         
 Loan and borrowings                    3.64% - 3.76%    1,127,117    -             -              1,127,117       1,122,052   
 Trade and other payables                                3,242,616    -             -              3,242,616       3,242,616   
 Obligations under finance lease        3.25%            8,944        745           -              9,689           8,335       
                                                                                                                               
                                                         4,378,677    745           -              4,379,422       4,373,003   
 
 
The Company 
 
                                        2016           
                                        Weighted         Within       More than     More than                      Carrying    
                                        average          1 year       1 year but    2 years but    Total           Amount      
                                        effective        or on        less than     less than      undiscounted    at 31       
                                        interest rate    demand       2 years       5 years        cash flow       March 2016  
                                        %                £            £             £              £               £           
 Non-derivative financial liabilities:                                                                                         
 Trade and other payables                                2,505,939    -             -              2,505,939       2,505,939   
 Obligations under finance lease        3.25%            768          -             -              768             660         
                                                                                                                               
                                                         2,506,707    -             -              2,506,707       2,506,599   
 
 
6.     FINANCIAL INSTRUMENTS (CONTINUED) 
 
(b)     Financial risk management objectives and policies (continued) 
 
(iii)    Liquidity risk (continued) 
 
The Company 
 
                                        2015           
                                        Weighted         Within       More than     More than                      Carrying    
                                        average          1 year       1 year but    2 years but    Total           Amount      
                                        effective        or on        less than     less than      undiscounted    at 31       
                                        interest rate    demand       2 years       5 years        cash flow       March 2015  
                                        %                £            £             £              £               £           
 Non-derivative financial liabilities:                                                                                         
 Trade and other payables                                2,257,803    -             -              2,257,803       2,257,803   
 Obligations under finance lease        3.25%            8,944        745           -              9,689           8,335       
                                                                                                                               
                                                         2,266,747    745           -              2,267,492       2,266,138   
 
 
(c)     Fair value 
 
The fair values of financial assets and financial liabilities are determined in accordance with generally accepted pricing
models based on discounted cash flow analysis. Balance with a subsidiary is unsecured, interest free and have no fixed
repayment terms. 
 
The Directors of the Company consider that the carrying amounts of financial assets and financial liabilities recorded at
amortised cost in the financial statements approximate to their fair values at the end of the reporting period. 
 
(d)     Capital risk management 
 
The Group's primary objectives when managing capital are to safeguard the Group's ability to continue as a going concern,
so that it can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital. 
 
The Group actively and regularly reviews and manages its capital structure to maintain a balance between the higher
shareholder returns that might be possible with a higher level of borrowings and the advantages and security afforded by a
sound capital position, and makes adjustments to the capital structure in light of changes in economic conditions. 
 
The Group monitors its capital structure on the basis of a net debt-to-adjusted capital ratio.  For this purpose the Group
defines net debt as total debt (which includes bank borrowings and other financial liabilities) less bank deposits and cash
and cash equivalents. Adjusted capital comprises all components of equity less unaccrued proposed dividends. 
 
6.      FINANCIAL INSTRUMENTS (CONTINUED) 
 
(d)     Capital risk management (continued) 
 
During 2016, the Group's strategy, which was unchanged from 2015, was to maintain the net debt-to-adjusted capital ratio as
low as feasible.  In order to maintain or adjust the ratio, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. 
 
Neither the Company nor its subsidiary is subject to externally imposed capital requirements. 
 
The net debt-to-adjusted capital ratios of the Group and the Company at the end of the reporting period were as follows: 
 
                                                              The Group    The Company  
                                                              2016         2015           2016         2015       
                                                              £            £              £            £          
 Current liabilities                                                                                              
 Trade and other payables                                     2,505,939    3,242,616      2,505,939    2,257,803  
 Loan and borrowings                                          -            1,122,052      -            -          
 Current tax liability                                        -            34,442         -            -          
 Obligation under finance lease                               660          7,694          660          7,694      
                                                              2,506,599    4,406,804      2,506,599    2,265,497  
 Non-current liabilities                                                                                          
 Obligation under finance lease                               -            641            -            641        
                                                                                                                  
 Liabilities of disposal group classified as held for sale    3,214,990    -              -            -          
                                                                                                                  
 Total debt                                                   5,721,589    4,407,445      2,506,599    2,266,138  
                                                                                                                  
 Less: cash and bank balances                                 654,244      1,221,707      654,244      1,044,484  
                                                                                                                  
 Net debt                                                     5,067,345    3,185,738      1,852,355    1,221,654  
                                                                                                                  
 Total equity                                                 5,314,302    5,641,264      5,013,374    4,823,282  
                                                                                                                  
 Net debt-to-adjusted capital ratio                           95%          56%            37%          25%        
 
 
7.      SEGMENT INFORMATION 
 
Management has determined the operating segments based on the reports reviewed by the chief operating decision maker, being
the chief executive officer, that are used to make strategic decisions. 
 
Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment
performance focuses on types of goods or services delivered or provided. The Group has a single reportable operating
segment in security and surveillance business for the year ended 31 March 2016. 
 
Previously, the Group's electrical and mechanical business was discontinued and demerged from the Group by distribution of
a dividend in specie to its shareholders on 31 March 2015. 
 
(a)      Segment revenues and results 
 
The following is an analysis of the Group's revenue and results by operating segment: 
 
                                                        2016         2015       
                                                        £            £          
 Segment revenue by major products and services:                                
 - Construction contracts                               2,414,362    1,631,683  
 - Maintenance contracts                                1,194,680    1,692,765  
 - Product sales                                        257,479      351,046    
 Revenue from continuing operations                     3,866,521    3,675,494  
 Revenue from discontinued operations                   3,547,320    3,038,497  
 Revenue from external customers                        7,413,841    6,713,991  
                                                                                
 From continuing operations:                                                    
 Segment profit                                         138,945      34,165     
 Finance costs                                          (1,234)      (1,149)    
 Profit before income tax                               137,711      33,016     
 
 
(b)     Geographical segments 
 
In determining the Group's geographical segments, revenues are attributed to the segments based on the location of the
customers and assets are attributed to the segments based on the location of the assets. 
 
No further geographical segment information is presented as the Group's revenue is materially derived from customers based
in one geographic segment comprising Hong Kong, Macau, Taiwan and the PRC, and all of the Group's assets are located in the
same geographic segment. 
 
(c)      Information about major customers 
 
Revenues of approximately £2,791,170 (2015: £1,695,699) are derived from two external customers (2015: one), who
contributed to 10% or more of the Group's revenue for 2016. 
 
8.      OTHER INCOME 
 
                          2016     2015   
                          £        £      
 Continuing operations                    
 Interest income          959      868    
 Sundry income            8,159    1,440  
                                          
                          9,118    2,308  
 
 
9.      OTHER GAINS AND LOSSES 
 
                                                    2016        2015      
                                                    £           £         
 Continuing operations                                                    
 Loss on disposal of plant and equipment            -           (38)      
 Foreign exchange gain                              10,570      5,593     
 Impairment loss recognised on other receivables    (21,470)    (40,594)  
 Impairment loss on goodwill                        (25,830)    -         
                                                                          
                                                    (36,730)    (35,039)  
 
 
10.    EXPENSES BY NATURE 
 
                                                                           2016         2015       
                                                                           £            £          
 Continuing operations                                                                             
 Cost of inventories recognised as expenses                                1,089,060    1,192,555  
 Sub-contracting costs                                                     882,503      964,280    
 Depreciation - leased plant and equipment                                 -            8,835      
 Depreciation - owned plant and equipment                                  16,546       5,770      
 Operating lease charges - minimum lease payments                          24,260       79,627     
 Research and development costs                                            47,763       13,204     
 Selling and distribution cost                                             116,905      23,678     
 Other expenses                                                            315,496      252,081    
 Staff costs, including directors' remuneration                                                    
 -  Wages and salaries                                                     1,122,792    990,016    
 -  Pension scheme contributions                                           49,445       41,284     
                                                                           1,172,237    1,031,300  
 Auditor's remuneration                                                                            
 - audit services (parent company)                                         35,194       37,268     
 Total cost of sales, selling and distribution, administrative expenses    3,699,964    3,608,598  
 
 
11.    DIRECTORS' REMUNERATION 
 
Directors' remuneration for the year is disclosed as follows: 
 
                         Salaries, bonuses and allowances  Pension scheme contributions  2016     
                         £                                 £                             £        
                                                                                                  
 Executive directors                                                                              
 Stephen Sin Mo KOO      -                                 -                             -        
 Yip Tak CHAN            49,760                            1,546                         51,306   
 Chun Pan WONG           62,371                            1,546                         63,917   
 Danny Kwok Fai YIP      49,524                            1,546                         51,070   
                         161,655                           4,638                         166,293  
                                                                                                  
 Non-executive director                                                                           
 Nicholas James LYTH     12,367                            -                             12,367   
                                                                                                  
                         174,022                           4,638                         178,660  
 
 
174,022 
 
4,638 
 
178,660 
 
                                             Salaries, bonuses and allowances  Pension scheme contributions  2015     
                                             £                                 £                             £        
                                                                                                                      
 Executive directors                                                                                                  
 Stephen Sin Mo KOO                          23,996                            120                           24,116   
 Yip Tak CHAN (appointed on 3 October 2015)  23,855                            720                           24,575   
 Chun Pan WONG                               54,633                            1,400                         56,033   
 Danny Kwok Fai YIP                          43,706                            1,400                         45,106   
                                             146,190                           3,640                         149,830  
                                                                                                                      
 Non-executive director                                                                                               
 Nicholas James LYTH                         11,518                            -                             11,518   
                                                                                                                      
                                             157,708                           3,640                         161,348  
 
 
161,348 
 
12.    FINANCE COSTS 
 
                                                     2016     2015   
                                                     £        £      
 Continuing operations                                               
 Finance charge on obligation under finance lease    1,234    1,149  
                                                                     
                                                     1,234    1,149  
 
 
13.    INCOME TAX IN THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
(a)   Income tax in the consolidated statement of comprehensive income: 
 
                                                  2016    2015  
                                                  £       £     
                                                                
 Income tax expense from continuing operations                  
 Hong Kong profits tax                            -       -     
 
 
Hong Kong profits tax is charged at the rate of 16.5% (2015: 16.5%) on the estimated assessable profits arising in Hong
Kong.  No Hong Kong profits tax has been provided for in the financial statements as the Company has unused tax losses to
offset against its taxable profit during the year. 
 
(b)   Reconciliation between income tax expense and accounting profit at the applicable tax rates: 
 
                                                                                                                              2016        2015     
                                                                                                                              £           £        
 Continuing operations:                                                                                                                            
 Profit before income tax                                                                                                     137,711     33,016   
                                                                                                                                                   
 Notional tax on profit before income tax, calculated at the rates applicable to profit in the tax jurisdictions concerned    22,722      5,448    
 Tax effect of non-taxable income                                                                                             (2,495)     (143)    
 Tax effect of non-deductible expenses                                                                                        18,952      6,698    
 Tax effect of temporary differences not recognised                                                                           (4,408)     (2,403)  
 Utilisation of tax losses brought forward not previously recognised as deferred tax assets                                   (34,771)    (9,600)  
                                                                                                                                                   
 Income tax expense                                                                                                           -           -        
 
 
14.    EARNINGS PER SHARE 
 
The calculation of basic earnings per share is based on the loss attributable to the equity shareholders of the Company for
the year of £112,211 from continuing and discontinued operations (2015: profit of £59,937) and the profit for the year of
£137,711 (2015: £33,016) on continuing operations, and the weighted average of 383,677,323 (2015: 383,677,323) ordinary
shares in issue during the year. 
 
There were no potential dilutive instruments at either financial year end. 
 
15.    DIVIDENDS 
 
(i)     Dividends payable to equity shareholders of the Company attributable to the year: 
 
                                                                                                                                           2016       2015     
                                                                                                                                           £          £        
                                                                                                                                                               
 Special dividend declared and payable of 0.2 pence per ordinary share                                                                     -          791,425  
                                                                                                                                                               
 Final dividend proposed after the end of the reporting period of 0.037 pence per ordinary share (2015: 0.034 pence per ordinary share)    141,083    130,286  
 
 
The final dividend proposed after the end of the reporting period has not been recognised as a liability at the end of the
reporting period. 
 
(ii)    Dividends payable to equity shareholders of the Company attributable to the previous financial year, approved and
paid during the year 
 
                                                                                                                                                                          2016       2015     
                                                                                                                                                                          £          £        
                                                                                                                                                                                              
 Final dividend in respect of the previous financial year, approved and paid during the year, of 0.034 pence per ordinary share (2015: 0.024 pence per ordinary share)    134,201    130,561  
 
 
16.    PLANT AND EQUIPMENT 
 
The Group 
 
                                       Furniture and fixtures    Computerequipment    Motorvehicles    Researchassets    Total        
                                       £                         £                    £                £                 £            
 Cost                                                                                                                                 
 At 1 April 2014                       193,455                   154,900              131,244          509,200           988,799      
 Additions                             4,691                     6,229                24,633           -                 35,553       
 Disposals                             (122)                     -                    (5,288)          -                 (5,410)      
 Foreign translation difference        19,394                    16,452               15,851           48,977            100,674      
                                                                                                                                      
 At 31 March 2015                      217,418                   177,581              166,440          558,177           1,119,616    
                                                                                                                                      
 At 1 April 2015                       217,418                   177,581              166,440          558,177           1,119,616    
 Additions                             13,725                    13,657               7,825            -                 35,207       
 Classified as assets held for sale    (211,311)                 (136,085)            (90,562)         (582,352)         (1,020,310)  
 Foreign translation difference        9,549                     7,670                6,162            24,175            47,556       
                                                                                                                                      
 At 31 March 2016                      29,381                    62,823               89,865           -                 182,069      
                                                                                                                                      
 Accumulated depreciation                                                                                                             
 At 1 April 2014                       171,145                   147,244              117,324          509,200           944,913      
 Charge for the year                   15,610                    5,001                15,561           -                 36,172       
 Disposals                             (122)                     -                    (4,770)          -                 (4,892)      
 Foreign translation difference        17,878                    15,470               13,469           48,977            95,794       
                                                                                                                                      
 At 31 March 2015                      204,511                   167,715              141,584          558,177           1,071,987    
                                                                                                                                      
 At 1 April 2015                       204,511                   167,715              141,584          558,177           1,071,987    
 Charge for the year                   18,835                    8,678                13,042           -                 40,555       
 Classified as assets held for sale    (212,899)                 (135,629)            (87,745)         (582,352)         (1,018,625)  
 Foreign translation difference        8,780                     7,020                5,548            24,175            45,523       
                                                                                                                                      
 At 31 March 2016                      19,227                    47,784               72,429           -                 139,440      
                                                                                                                                      
 Net book value                                                                                                                       
                                                                                                          

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