Attached files
file | filename |
---|---|
8-K/A - VASO Corp | vaso8ka-sept42011.htm |
EX-99.2 - VASOMEDICAL UNAUDITED PROFORMA FINANCIALS - VASO Corp | vaso8kaproforma-ex992.htm |
EX-99.1.4 - PJM UNAUDITED FINANCIALS 6/30/11 - VASO Corp | vaso8ka-pjm2011ex9914.htm |
EX-99.1.1 - BIOX AUDITED FINANCIALS 12/31/10 - VASO Corp | vaso8ka-biox2010ex9911.htm |
EX-99.1.3 - BIOX UNAUDITED FINANCIALS 6/30/11 - VASO Corp | vaso8ka-biox2011ex9913.htm |
PEACE JOY MANAGEMENT LIMITED
REPORTS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
PEACE JOY MANAGEMENT LIMITED
REPORTS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
CONTENTS
PAGE(S)
|
|
DIRECTOR'S REPORT
|
1-2
|
INDEPENDENT AUDITOR'S REPORT
|
3 - 4
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
5
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
6 |
STATEMENT OF FINANCIAL POSITION
|
7
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
8
|
CONSOLIDATED STATEMENT OF CASH FLOWS
|
9
|
NOTES TO THE FINANCIAL STATEMENTS
|
10 -21
|
PEACE JOY MANAGEMENT LIMITED
DIRECTOR'S REPORT
The director has pleasure in presenting his report with the audited financial statements of the
Company and its subsidiary (collectively the "Group") for the year ended 31 December 2010.
PRINCIPAL ACTIVITY
The Group continues to engage in the manufacturing of medical devices.
RESULTS AND APPROPRIATIONS
The results of the Group for the year ended 31 December 2010 are set out in the consolidated
statement of comprehensive income on page 5 to the financial statements. The director does not
recommend the payment of any dividend.
FIXED ASSETS
Details of movements in the plant and equipment during the year are shown in note 12 to the
financial statements.
SHARE CAPITAL
Details of the share capital of the Company are set out in note 17 to the financial statements.
DIRECTOR
The sole director of the Company during the year and up to the date of this report was:
LI Xichang
The sole director should continue in office.
The Company did not enter into any agreement, other than the contracts of service with the
director, whereby any individual, firm or body corporate undertakes the management and
administration of the whole, or any substantial part of any business of the Company.
1
PEACE JOY MANAGEMENT LIMITED
DIRECTOR'S REPORT
DIRECTOR'S SHARE AND DEBENTURE OPTIONS
At no time during the year was the Company or its subsidiary a party to any arrangements to
enable the director of the Company to acquire benefits by means of the acquisition of shares in,
or debentures of, the Company or any other body corporate.
DIRECTOR'S INTERESTS IN CONTRACTS
Other than as disclosed in note 20 to the financial statements concerning related party
transactions, there has been no contract of significance to which the Company or its subsidiary
was a party and in which a director of the Company had a material interest, whether directly or
indirectly, at the end of the year or at any time during the year.
AUDITOR
The financial statements have been audited by G Tong & Co., Certified Public Accountants.
On behalf of the Board
/s/ Li Xichang
SOLE DIRECTOR
9 March 2011
|
2
G TONG & CO.
Certified Public Accountants
Management Consultants
Unit 1411 14/F. LippoSun Plaza.
2B Cantor Road. Tsim Sha Tsui,
Kowloon, Hong Kong
Ter : (852) 2420 4006
Fax : (852) 2892 1856
E-mail : holistic@gtongcpa.com.hk
INDEPENDENT AUDITOR'S REPORT
TO THE SHAREHOLDERS OF PEACE JOY MANAGEMENT LIMITED
(Incorporated in the British Virgin Islands with limited liability)
We have audited the consolidated financial statements of PEACE JOY MANAGEMENT
LIMITED (the "Company") and its subsidiary (together the "Group") set out on pages 5 to 21,
which comprise the consolidated and company statements of financial position as at 31
December 2010, and the consolidated statement of comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then
ended, and a summary of significant accounting policies and other explanatory notes.
Director's responsibility for the financial statements
The director of the Company is responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with the Hong Kong Financial Reporting
Standard for Private Entities issued by the Hong Kong Institute of Certified Public Accountants,
and for such internal control as the director determines is necessary to enable the preparation of
the consolidated financial statements that are free from material misstatement, whether due to
fraud or error,
Auditor's responsibility
Our responsibility is to express ati opinion on these consolidated financial statements based on
our audit and to report our opinion solely to you, as a body, in the coming general meeting of the
Company, and for no other purpose. We do not assume responsibility towards or accept
liability to any other person for the contents of this report. We conducted our audit in
accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of
Certified Public Accountants. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation of the
consolidated financial statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by the director, as well as evaluating the overall presentation of the consolidated financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
3
G TONG & CO.
Certified Public Accountants
Managefnent Consultants
Unit 1411,14/F, Lippo Sun Plaza
28 Canton Road. Tsim Sha Tsui.
Kowloon Hong Kong
Tel: (852) 2420 4006
Fax: (852] 2892 1856
E-mail: holistic@gtongcpa.com.hk
INDEPENDENT AUDITOR'S REPORT
TO THE SHAREHOLDERS OF PEACE JOY MANAGEMENT LIMITED
(Incorporated in the British Virgin Islands with limited liability)
Opinion
In our opinion, the consolidated financial statements give a true and fair view of the state of
affairs of the Company and of the Group as at 31 December 2010 and of the Group's profit and
cash flows for the year then ended in accordance with the Hong Kong Financial Reporting
Standard for Private Entities.
/s/
G TONG & CO.
G TONG & CO.
Certified Public Accountant
Hong Kong, 9 March 2011
4
PEACE JOY MANAGEMENT LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2010
NOTES
|
2010
US$
|
2009
US$
|
||||||||||
Revenue
|
4 | 572,S36 | 925,380 | |||||||||
Cost of sales
|
(299,068 | ) | (424,660 | ) | ||||||||
Gross profit
|
273,768 | 500,720 | ||||||||||
Other income
|
5 | 180 | 168 | |||||||||
Distribution costs
|
(10,135 | ) | (22.653 | ) | ||||||||
Administrative expenses
|
(98,499 | ) | (89.246 | ) | ||||||||
Other expenses
|
(35,992 | ) | (32,987 | ) | ||||||||
Finance costs
|
6 | (12,479 | ) | (22,849 | ) | |||||||
Profit before tax
|
7 | 116,843 | 333,153 | |||||||||
Income tax expense
|
8 | . | . | |||||||||
PROFIT FOR THE YEAR
|
116,843 | 333,153 | ||||||||||
Other comprehensive income
|
·
|
. | ||||||||||
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR
|
116,843 | 333,153 | ||||||||||
Profit for the year and total comprehensive income
attributable to owners of the Group
|
116,843 | 333,153 |
The accompanying notes form an integral part of these financial statements.
5
PEACE JOY MANAGEMENT LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2010
|
NOTES
|
2010
US$
|
2009
US$
|
|||||||||
ASSETS | ||||||||||||
Current Assets | ||||||||||||
Trade receivables | 192,649 |
213,306
|
||||||||||
Other receivables and deposits | 31,870 |
6,873
|
||||||||||
Amounts due from related companies | 10 | 60,885 |
1,933
|
|||||||||
Inventories | 11 |
261,992
|
247.930
|
|||||||||
Bank balances and cash |
130,403
|
70,661
|
||||||||||
Non-Current Assets
|
||||||||||||
Plant and equipment | 12 | 9,832 | 12,385 | |||||||||
Total Assets
|
687,631 | 553,088 | ||||||||||
LIABILITIES AND EQUITY
|
|
|||||||||||
Current Liabilities | ||||||||||||
Trade payables | 230,539 |
104,338
|
||||||||||
Other payables and accrued charges | 30,912 |
32,629
|
||||||||||
Amount due to a related company |
14
|
-
|
74,208
|
|||||||||
Amount due to director
|
15
|
146,965 |
146,954
|
|||||||||
Loans | 16 | 315,683 | 348,270 | |||||||||
724,099 |
706,399
|
|||||||||||
|
|
|
||||||||||
Equity | ||||||||||||
Share capital |
17
|
3,000 | 3,000 | |||||||||
Reserves | 18 | (39,468) | (156,311) | |||||||||
(36,468) |
(153,311)
|
|||||||||||
Total Liabilities and Equity
|
687,631 | 553,088 |
The financial statements on pages 5 to 21 were approved by the Board of Director on 9 March 2011 and are signed on its behalf by:
/s/ Li Xichang
SOLE DIRECTOR
The accompanying notes form an integral part of these financial statements.
6
PEACE JOY MANAGEMENT LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2010
NOTES
|
2010
US$
|
2009
US$
|
||||||||||
ASSETS | ||||||||||||
Current Assets | ||||||||||||
Trade receivables | 192,649 | 200.529 | ||||||||||
Other receivables and deposits | 23,002 | |||||||||||
Amount due from a related company | 10 | 53,300 | 1,933 | |||||||||
Bank balances and cash | 817 | 4.243 | ||||||||||
269,768 | 206,705 | |||||||||||
Non-Current Assets
|
||||||||||||
Interests in subsidiary | 13 | 133,000 | 133,000 | |||||||||
Total Assets
|
402,768 | 339,705 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||
Current Liabilities | ||||||||||||
Trade payables | 175,000 | 65,698 | ||||||||||
Other payables and accrued charges | 5,128 | 13,145 | ||||||||||
Amount due to a related company | 14 | - | 74,208 | |||||||||
Amount due to director | 15 | 147,000 | 147,000 | |||||||||
327,128 | 300,051 | |||||||||||
Equity
|
17 | 3.000 | 3,000 | |||||||||
Share capital | 18 | 72,640 | 36.654 | |||||||||
Reserves | 75,640 | 39,654 | ||||||||||
Total Liabilities and Equity
|
402,768 | 339,705 |
The financial statements on pages 5 to 21 were approved by the Board of Director on 9 March 2011 and are signed on its behalf by:
/s/ Li Xichang
SOLE DIRECTOR
The accompanying notes form an integral part of these financial statements.
7
PEACE JOY MANAGEMENT LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2010
|
||||||||||||
Share capital
|
Accumulated losses
|
Total | ||||||||||
US$
|
US$
|
US$
|
||||||||||
At 31 December 2009
|
3,000 | (156,311 | ) | (153,311 | ) | |||||||
Profit for the year
|
- | 116,843 | 116.843 | |||||||||
At 31 December 2010
|
3,000 | (39,468 | ) | (36,468 | ) |
The accompanying notes form an integral part of these financial statements.
8
PEACE JOY MANAGEMENT LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2010
2010
|
2009
|
|||||||
US$
|
US$
|
|||||||
Cash inflows from operating activities
|
||||||||
Profit before taxation
|
116,843 | 333,153 | ||||||
Depreciation
|
5,003 | 12,477 | ||||||
Interest income
|
(180)
|
(168 | ) | |||||
Operating profit before working capital changes
|
121,666 | 345,462 | ||||||
Decrease (increase) in trade receivables
|
20,657 | (175,597 | ) | |||||
(Increase) decrease In other receivables and deposits
|
(24,997 | ) | 237,617 | |||||
(Decrease) increase in amounts due from related companies
|
(58,952 | ) | 69,494 | |||||
(Increase) decrease in inventories
|
(14,062 | ) | 81J14 | |||||
Increase (decrease) in trade payables
|
126,201 | (162,142 | ) | |||||
Increase (decrease) in other payables and accrued charges
|
(1,717 | ) | (211,712 | ) | ||||
Decrease in amount due to a related company
|
(74,208 | ) | (25,524 | ) | ||||
Increase in amount due to director
|
11 | 66 | ||||||
Net cash generated from operating activities
|
94,599 | 158,778 | ||||||
Cash flows from investing activities
|
||||||||
Purchase of equipment
|
(2,450 | ) | (700 | ) | ||||
Net cash used in investing activities
|
(2,450 | ) | (700 | ) | ||||
Cash flows from financing activities
|
||||||||
Interest received
|
180
|
168 | ||||||
Repayment of loan principal
|
(122,646 | ) | (161,150 | ) | ||||
New loan principal raised
|
75,850 | - | ||||||
Increase in loans interest accrual
|
14,209 | 22,849 | ||||||
Net cash used in financing activities
|
(32,407) | (138,133 | ) | |||||
Increase in cash and cash equivalents
|
59,742 | 19,945 | ||||||
Cash and cash equivalents at beginning of the year
|
70,661 | 50,716 | ||||||
Cash and cash equivalents at end of the year
|
||||||||
Represented by bank balances and cash
|
130,403 | 70,661 |
The accompanying notes form an integral part of these financial statements.
9
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
1. GENERAL
The Company is a private limited company incorporated in the British Virgin Islands. Its
registered office is locatcd at Akara Building, 24 De Castro Street, Wickhanis Cay I, Road
Town, Tortola, British Virgin Islands
The Group continues to engage in the manufacturing of medical devices.
The consolidated financial statements are presented in United States Dollars ("US$"), the
functional currency of the Group.
2. ADOPTION OF NEW HONG KONG FINANCIAL REPORTING STANDARD FOR PRIVATE ENTITIES
In the current year, the Group has taken the option to apply, for the first time, a number of
the new Hong Kong Financial Reporting Standard for Private Entities ("HKFRS - Private
Entities"), issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA").
The Group does not produce financial staternents available for public use.
The adoption of the new HKFRS - Private Entities has not resulted in a material change to
the accounting policies and also has no material effect on how the results for the current or
prior accounting periods are prepared. Accordingly, no prior year adjustment has been
required.
The HKICPA has also issued the following standards and interpretations that are not yet
effective, which the Company has considered these options but does not expect they will
have a material effect on how the results of operations and financial position of the
Company and the Group are prepared and present.
HKFRSs (Amendments)
|
Improvements to HKFRSs 2010
|
Effective for accounting periods beginning on or
after 1 July 2010 or 1 January 2011
|
||
HK (IFRJC)-INT 17
|
Classification of Rights Issues
|
February 2010
|
||
HK (IFR1C)-INT I9
|
Extinguishing Financial Liabilities
with Equity Instruments
|
1 July 2010
|
||
HKAS 24 (Revised)
|
Related Party Disclosure
|
1 January 2011
|
||
HKAS 12 (Amendments)
|
Income Taxes
|
1 January 2012
|
||
HKFRS 9
|
Financial Instruments
|
1 January 2013
|
10
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
3. SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared under the historical cost convention and in
accordance with HKFRS - Private Entities issued by HKICPA and accounting principles
generally accepted in Hong Kong.
At the reporting date, the Group has a net current liahilities of US$46,300 (2009:
US$165,696) and net liabilities of US$36,468 (2009: US$153,311). However, the
Company's director has strong confidence to obtain adequate financial supports to enable
the Group to meet its liabilities as and when they fall due so that the Group can continue its
business in the foreseeable future. Consequently, the director has prepared the financial
statements of the Group on a going concern basis.
The principal accounting policies adopted are set out below.
Consolidation
These consolidated financial statements incorporate the financial statements of the
Company and its subsidiary. A subsidiary is an entity (including special purpose entity)
over which the Group has the power to govern the financial and operating policies so as to
obtain benefits from its activities, generally but not necessarily accompanying a
shareholding of more than half of the voting power. The subsidiary is fully consolidated
from the date on which control is transferred to the Group and is de-consolidated from the
date that control ceases.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation. Accounting policies of the subsidiary have been changed where necessary
to ensure consistency with the policies adopted by the Group. There is no difference in
the reporting date of the financial statements of the Company and its subsidiary used in the
preparation of the consolidated financial statements.
In the statement of financial position of the Company, investment in subsidiary is stated at
cost less provision for impairment loss. The results of the subsidiary are accounted by the
Company on the basis of dividend received and receivable.
Revenue recognition
Revenue during the year represents sales of goods, which are recognized when goods are
delivered and title has been passed.
Interest income is recognized as it accrues using the effective interest method.
11
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
3. SIGNIFICANT ACCOUNTING POLICIES - cont'd
Plant and equipment
Items of plant and equipment are measured at cost less accumulated depreciation and any
accumulated impairment losses.
Depreciation is charged so as to allocate the cost of assets less their residue values (10% of
cost) over their estimated useful lives, using the straight-line method. The following
annual rates are used for the depreciation of plant and equipment.
Machinery
|
18%
|
Furniture and equipment
|
18%
|
Motor vehicles
|
18%
|
If there is an indication that has been a significant change in the depreciation rate, useful
life or residual value of an asset, the depreciation of that asset is revised prospectively to
reflect the new expectations.
An asset's carrying amount is written down immediately to its recoverable amount if the
asset's carrying amount is greater than its estimated recoverable amount.
The gain or loss arising from the disposal or retirement of an asset is determined as the
difference between the sale proceeds and the carrying amount of the asset and is recognized
in the profit or loss.
Impairmeat of non-financial assets, other than inventories
At each reporting date, the Group reviews the carrying amounts of plant and equipment to
determine whether there is any indication that those assets have suffered an impairment
loss. If there is an indication of possible impairment, the recoverable amount of any
affectcd asset (or group of related assets) is estimated and compared with its carrying
amount. If an estimated recovered amount, and an impairment loss is recognized
immediately in profit and loss.
If an impairment loss subsequently reverses, the carrying amount of the asset (or group of
related assets) is increased to the revised estimate of its recoverable amount, but not in
excess of the amount that would have been determined had no impairment loss been
recognized for the asset (group of related assets) in prior year. A reversal of an
impairment loss is recognized immediately in profit or loss.
12
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAH ENDED 31 DECEMBER 2010
3. SIGNIFICANT ACCOUNTING POLICIES - cont'd
Borrowings
Borrowings are recognized initially at the transaction price and arc subsequently stated at
amortised cost. Borrowings are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liabilities for at least twelve months after the
reporting date.
Interest expense is recognized on the basis of the effective interest method and is included
in finance cost.
Trade receivables
Trade receivables are recognized initially at the transaction price. They are subsequently
measured at amortised cost using the effective interest method less provision for
impairment. A provision for impairment of trade receivables is established when there is
objective evidence that the Group will not be able to collect all amounts due according to
the original terms of receivables.
Inventories
Inventories are stated at the lower of cost and selling price less costs to complete and sell.
Cost is calculated using the average cost method. The cost of finished goods and work in
progress is comprised of packaging costs, raw materials, direct labour, other direct costs and
related production overheads (based on normal operating capacity). At each reporting date,
inventories are assessed for impairment and the carrying amount is reduced to its selling
price less cost to complete and sell with the impairment loss recognized immediately in
profit and loss.
Operating lease
Rental payable under operating lease is charged to profit and loss on a straight-line basis
over the term of the relevant lease.
Trade payables
Trade payables are recognized initially at the transaction price and subsequently measured
at amortised cost using the effective interest method.
Foreign currencies translation
The financial statements are presented in United State Dollars, which is the functional and
presentation currency of the Group.
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the translation of monetary
assets and liabilities denominated in foreign currencies at the exchange rates prevailing at the
reporting sheet date are recognized in the profit and loss account.
13
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
3. SIGNIFICANT ACCOUNTING POLICIES -cont'd
Related parties
For the purpose of these financial statements, related party includes a person and entity as
defined below;
(a) A person or a close member of that person's family is related to the Company if that
person:
(i)
|
is a member of the key management personnel of the Company or of a parent of the Company;
|
(ii)
|
has control over the Company; or
|
(iii)
|
has joint control or significant influence over the reporting entity or has significant voting power in it.
|
(b) An entity is related to the Company if any of the following conditions applies:
(i)
|
the entity and the Company are members of the same group (which means that each
parent, subsidiary and fellow subsidiary is related to the others).
|
(ii)
|
either entity is an associate or joint venture of other entity (or a member of a group of which
the other entity is a member).
|
(iii)
|
both entities are joint ventures of a third entity.
|
(iv)
|
either entity is a joint venture of a third entity and the other entity is an associate of the third entity.
|
(v)
|
the entity is a post-employment benefit plan for the benefit of employees of either the Company or an
entity related to the Company. If the reporting entity is itself such a plan, the sponsoring employers
are also related to the plan.
|
(vi)
|
the entity is controlled or jointly controlled by a person identified in (a).
|
(vii)
|
a person identified in (a) has significant voting power in the entity.
|
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs
from profit as reported in the statement of comprehensive income because of items of
income or expense that are taxable and deductible in other years and items that are never
taxable or deductible. The Group's liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the end of the reporting period.
14
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
3. SIGNIFICANT ACCOUNTING POLICIES - cont'd
Taxation - cont'd
Deferred tax is recognized on temporary differences between the carrying amount of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all
taxable temporary differences that are expected to increase taxable profit in the future.
Deferred tax assets are recognized to the extent that it is probable that taxable profits will
be available against which deductible temporary differences can be utilized. Such
deferred assets and liabilities are not recognized if the temporary difference arises from
goodwill or from the initial recognition (other than in a business combination) of other
assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.
The carrying amount of deferred tax assets is reviewed at the reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the rates that are expected to apply in the
period when the liability is settled or the asset is realized, based on tax rates (and tax laws)
that have been enacted or substantively enacted at the reporting date. The measurement of
deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Group expects, at the reporting date, to recover or settle the carrying
amount of its assets and liabilities. However, the measured at fair value does not exceed
the amount of tax that would be payable on its sale to an unrelated market participant at fair
value at the reporting date. Deferred tax is recognized in profit or loss, expect when it
relates to items that are recognized in other comprehensive income or directly in equity, in
which case the deferred tax is also recognized in other comprehensive income or directly in
equity respectively.
Cash equivalents
Cash equivalents represent short-term, highly liquid investments which are readily
convertible into known amounts of cash and which were within three months of maturity
when acquired, less advances from banks repayable within three months from the date of
the advance.
Employee benefit obligations
Salaries, wages, bonuses, paid leave, 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. Where payment or settlement is deferred and the
effect would be material, these amounts are stated at their present values.
15
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
4. REVENUE
Revenue, which is also the Group's turnover, represents the net invoiced value of goods
sold during the year.
5. OTHER INCOME
2010
|
2009
|
||
US$
|
US$
|
||
Bank interest income
|
180
|
168
|
6. FINANCE COSTS
2010
|
2009
|
||
US$
|
US$
|
||
Interest on loans wholly repayable within five years
|
12,479
|
22,849
|
7. PROFIT BEFORE TAX
2010
|
2009
|
|||||||
US$
|
US$
|
|||||||
Profit from continuing operations before taxation
|
||||||||
has been arrived at after charging (crediting) :
|
||||||||
Audit fee
|
2,564 | 2,564 | ||||||
Depreciation
|
5,003 | 12,477 | ||||||
Director's remuneration
|
16,997 | 10,987 | ||||||
Exchange differences
|
9,031 | (5,689 | ) | |||||
Operating lease rentals for factory premise
|
13,654 | 10,632 | ||||||
Staff costs (excluded director's remuneration)
|
73,216 | 49,442 |
Staff costs above include social insurance contribution in the People's Republic of China amounted to US$ 11,456 (2009: US$8,569).
16
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
8. INCOME TAX EXPENSE
No provision for income tax has been made in the financial statements as neither the
Company nor its subsidiary has assessable profit.
At the reporting date, insignificant deferred tax has not been provided in the financial
statements.
9. NET PROFIT FOR THE YEAR
Of the consolidated profit of US$ 116,843 (2009: US$333,153) a net profit of
US$35,986 (2009: US$142,799) has been recognized within the financial statements of the
Company,
10. AMOUNTS DUE FROM RELATED COMPANIES
Maximum outstanding balance during the year
|
Balance at 31.12.2010
|
Balance at 31.12.2009
|
||||||||||||
US$
|
US$
|
US$
|
||||||||||||
The Group
|
||||||||||||||
Fast Growth Enterprise Limited
|
53,300 | 53,300 | 1,933 | |||||||||||
Other | 7,585 | 7,585 | - | |||||||||||
60,885 | 1,933 | |||||||||||||
The Company
|
||||||||||||||
Fast Growth Enterprise Limited
|
53,300 | 53,300 | 1,933 | |||||||||||
The amounts due from related companies are interest-free, unsecured and have no fixed terms of repayment. The Company’s director is a director and shareholder of the above related companies.
17
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
13. INVENTORIES
2010
|
2009
|
||
USS
|
USS
|
||
The Group
|
|||
Raw materials
|
120,362
|
110,561 | |
Work-in-progress
|
88,918
|
70,882
|
|
Finished goods
|
52,712
|
66,487
|
|
261,992
|
247,930 |
12, PLANT AND EQUIPMENT
Furniture & Equipment
|
Machinery
|
Motor Vehicles
|
Total
|
|||||||||||||
The Group
|
US$
|
US$
|
US$
|
US$
|
||||||||||||
Cost
|
||||||||||||||||
At 1.1.2010
|
27,723 | 19,660 | 21,294 | 68,677 | ||||||||||||
Additions
|
2,031 | 419 | - | 2,450 | ||||||||||||
At 31.12.2010
|
29,754 | 20,079 | 21,294 | 71,127 | ||||||||||||
Accumulated Depreciation
|
||||||||||||||||
At 1.1.2010
|
22,944 | 12,179 | 21,169 | 56,292 | ||||||||||||
Charge for The year
|
2,005 | 2,873 | 125 | 5,003 | ||||||||||||
At 31.12.2010
|
24,949 | 15,052 | 21,294 | 61,295 | ||||||||||||
Carrying Amount | ||||||||||||||||
At 31.12.2010 | 4,805 | 5,027 | - | 9,832 | ||||||||||||
At 31,12,2009 | 4,779 | 7,481 | 125 | 12,385 |
13. INTERESTS IN SUBSIDIARY
2010
|
2009
|
|||||||
US$
|
US$
|
|||||||
Contributed capital
|
120,000 | 120,000 | ||||||
Amount due from subsidiary
|
13,000 | 13,000 | ||||||
133,000 | 133,000 |
18
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
13. INTERESTS IN SUBSIDIARY - cont'd
Particulars of the subsidiary dircctly held by the Company at the reporting date.
Name
|
Country of
Incorporation
|
Paid-up registered
Capital
|
Percentage
holding
|
Principal
Activity
|
||||
Life Enhancement Technology Limited
|
People’s Republic of China
|
US$120,000
|
100%
|
Manufacturing of medical device
|
Amount due from subsidiary is unsecured, interest free and has no fixed term of repayment.
14. AMOUNT DUE TO A RELATED COMPANY
Amount due to Nature Way Technology Limited was unsecured, interest free and had been
fully repaid during the year. The Company's director is a director and shareholder of
Nature Way Technology Limited.
15. AMOUNT DUE TO DIRECTOR
Amount due to director is unsecured, interest free and has no fixed term of repayment.
16. LOANS
2010
|
2009
|
|||||||
US$
|
US$
|
|||||||
Loans
|
||||||||
Principals
|
258,858 | 305,654 | ||||||
Interest accruals
|
56,825 | 42,616 | ||||||
315,683 | 348.270 |
The loan raised by the subsidiary in previous years is unsecured, interest-bearing at the
bank lending rate and repayable within one year. During the current reporting period, the
subsidiary has also obtained another unsecured loan, interest-bearing at 3.65% per annum
and repayable within one year. According to the Company's director, concerned parties
are not related parties to the Group.
19
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
17. SHARE CAPITAL
2010
|
2009
|
|||||||
US$
|
US$
|
|||||||
Authorized
|
||||||||
50,000 shares of US$1 each
|
50.000 | 50,000 | ||||||
Issued and fully paid
|
||||||||
3,000 shares of US$1 each
|
3,000 | 3,000 |
18. RESERVES
Retained Earnings
(Accumulated Losses)
US$
|
||||
The Group
|
||||
At 31 December 2009
|
(156,311 | ) | ||
Profit for the year
|
116,843 | |||
At 31 December 2010
|
(39,468 | ) | ||
The Company
|
||||
At 31 December 2009
|
36,654 | |||
Profit for the year
|
35,986 | |||
At 31 December 2010
|
72,640 |
19. OPERATING LEASE COMMITMENTS
At the reporting date, the Group had commitments payable regarding the total of future
minimum lease payments under non-cancellable operating leases with respect to rented factory
premises as follows:
|
2010 |
2009
|
||||||||
|
US$
|
US$ | ||||||||
Within one year
|
14,970 | 3,544 | ||||||||
Later than one year but within five years
|
18,712 | - | ||||||||
33,682 | 3,544 | |||||||||
20
PEACE JOY MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010
20. RELATED PARTY TRANSACTIONS
Details of significant related party transactions during the year as at the reporting date are as
follows:
2010
|
2009 | |||||||
US$
|
US$ | |||||||
Amount due from;
|
||||||||
Fast Growth Enterprise Limited
|
53,300 | 1,933 | ||||||
Other
|
7.585 | - | ||||||
Amount due to:
|
||||||||
Nature Way Technology Limited
|
- | 74.208 | ||||||
LI Xichang
|
146,965 | 146,954 |
Li Xichang is the Company's director, who is also director and shareholder of the above
related companies. All the above concerned amounts are unsecured, interest free and have
no fixed terms of repayment.
The Company's director is of the opinion that the above transactions have been entered into
on normal commercial terms.
The remuneration of the Company's director set out in note 7 to the financial statements
will be reviewed in the coming general meeting of the Company.
21. FAIR VALUE
The Company's director considers that the carrying amounts of the financial instruments
approximate their fair values at the reporting date.