contents · 21 company statement of financial position ... namely hello axiata company limited,...

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2 Company Information 3 Chairman’s Statement

5 Report of the Directors

10 Corporate Governance Report

12 Board of Directors

13 Report of the Independent Auditors

15 Consolidated Income Statement

16 Consolidated Statement of Comprehensive Income

17 Consolidated Statement of Changes in Equity

19 Consolidated Statement of Financial Position

21 Company Statement of Financial Position

22 Consolidated Statement of Cash Flows

23 Company Statement of Cash Flows

24 Notes to the Financial Statements

62 Notice of Annual General Meeting

63 Form of Proxy

CONTENTS

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DIRECTORS Dato’Dr.WanAzmibinAriffin(Non-ExecutiveChairman) Dato’[email protected](ChiefExecutiveOfficer) DerrickChiaKahWai(TechnicalDirector) SeahBoonChin(CorporateFinanceDirector) Dato’ShamsirbinOmar(Non-ExecutiveDirector) KjetilLanglandBohn(Non-ExecutiveDirector)

SECRETARY TMFChannelIslandsLimited Walker House 28-34HillStreet Jersey JE4 8PN Channel Islands

REGISTERED Walker HouseOFFICE POBox72 28-34HillStreet Jersey JE4 8PN Channel Islands BUSINESS 2-3,Incubator2ADDRESS TechnologyParkMalaysia BukitJalil,57000KualaLumpur Malaysia Tel:+60389963600

AUDITORS Jeffreys Henry LLP Finsgate5-7CranwoodStreet London EC1V 9EE United Kingdom

NOMINATED Allenby Capital LimitedADVISER Claridge HouseAND BROKER 32 Davoes Street Mayfair London W1K 4ND United Kingdom

JOINT BROKER Daniel Stewart & Company plc Becket House 36OldJewry London EC2R 8DD United Kingdom

COMPANY INFORMATION

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INTRODUCTION

MobilityOneLimited'sorganisationstructureisdepictedbelow:

OPERATIONS REVIEW

With improvingeconomicconditions in theregion,especially inMalaysia, theGroupreportedahigherrevenuegrowthandareductioninlossesin2010comparedto2009.Duringtheyear,theGroupsignedanagreementwithCarrefourMalaysiatorolloutapproximately300electronicdatacapture(“EDC”)terminalsforprepaidmobilephoneairtimereloadsacrossCarrefourMalaysia's23hypermarketsand20expressstores throughout the country. Even though the Group has sustained its revenue contribution from the EDCterminalbase,howeverasubstantialincreaseinrevenuewasseeninthebankingchannelswherebythe prepaid mobile phone subscribers are becoming more familiar and comfortable with transacting via thebankingchannels,suchasmobilebanking,InternetbankingandATMs.Inaddition,theGroupwasawardedacontractfromTelekomMalaysiaBerhadtosupplytelecommunicationhardwareoveraperiodofthreeyears.ThetotalvalueofthecontractisRM22.7million(c.£4.7million)andtheGrouphasdeliveredapproximately 60% of the total contract value.

FortheGroup'sinternationalremittanceservices,theGrouphasenteredintoaMoneyTransferServicesAgreementwithCoinstarMoneyTransferLimited(previouslyknownasTravelexMoneyTransferLimited)(“CMT”)toprovideamoneytransferservicefromtheGroup’soutletsinMalaysiatoanyofCMT’slocationsworldwide.ThisisinadditiontotheGroup’sexistingagreementswithG-Xchange,Inc.andM.LhuillierinthePhilippinesaswellasPTFinnetIndonesiaandPTTelekomunikasiSelularinIndonesia,forthemoneytransfer service to the Philippines and Indonesia respectively.

InCambodia, theGroup has entered into agreementswith several telecommunications companies,namelyHelloAxiataCompanyLimited, LatelzCo. Ltd,CambodiaAdvanceCommunicationsCo. Ltd,Viettel(Cambodia)PteLtd,SotelcoLtdandApplifoneCompanyLtdtoselltheirprepaidreloads.However,MobilityOnehasnotbeenaggressivelyexpandingitsbusinessinCambodiaastheGrouphasbeenfocusingits time and investments on expanding its business operations in Malaysia.

CHAIRMAN’S STATEMENT

NETOSSSDNBHD(Malaysia)

100%

PAYSTATIONSDNBHD(Malaysia)

100%

MOBILITYONESDNBHD(Malaysia)

100%

MOBILITYONELIMITED(Jersey,ChannelIslands)

PTMOBILITYONEINDONESIA(Indonesia)

95%

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InIndonesia,PTMobilityOneIndonesiahassecuredseveralcontractstoprovidesystemmaintenanceservicestotwomajormobileoperators,namelyIndosatandXLAxiata.

WepresenttheauditedconsolidatedfinancialstatementsforMobilityOneLimitedfortheyearended31December 2010.

RESULTS

Forthefinancialyearended31December2010,theGrouprecordedarevenueof£23.3million,representinganincreaseof69.6%comparedto£13.7millionfor2009,andalossaftertaxof£0.2million,representingareductionof76.5%comparedtoalossaftertaxof£0.9millionfor2009.Theincreaseinrevenuewasmainly due to a higher demand for the Group’s existing mobile phone’s prepaid airtime reload business. Despitetheincreaseinrevenue,theGrouprecordedasmallloss,whichwasduetohigheroperatingcostsand expenses for the new business in remittance and costs incurred to explore new business opportunities.

CURRENT TRADING AND OUTLOOK

TheDirectorsanticipatethattheperformanceoftheGroupwillcontinuetoimprovein2011,aftertakingintoconsiderationthefollowingdevelopments:

(i) ContinuedrevenuegrowthfromprepaidairtimereloadsformobilephonesviatheGroup’sbanking channels and EDC terminals;

(ii) AhighercontributionfromtheCompany’sinternationalremittanceservices,withastrategytoopen moreoutletsandtie-upwithmorecashoutpartnersinIndonesia,BangladeshandNepal;and

(iii) AhighercontributionfromPTMobilityOneIndonesiafromtheexistingandnewcontracts.

TheDirectorsareconfidentabouttheprospectsfortheGroupinthelongtermandbelievetheGroup’songoing investment in research and development to develop innovative solutions will produce positive resultsinfutureperiods.Barringanyunforeseencircumstances,theDirectorsarecautiouslyoptimisticonthe outlook of the Group in terms of revenue growth in 2011.

CONCLUSION

OnbehalfoftheBoardofDirectors,Iwouldliketoextendmyappreciationtothemanagementandstaffof the Group for their continuing commitment and dedication over the year.

...........................................................................Dato’ Dr. Wan Azmi bin AriffinChairman

Date:9June2011

CHAIRMAN’S STATEMENT (CONTINUED)

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TheDirectorspresenttheirreportwiththefinancialstatementsoftheCompanyandtheGroupfortheyearended 31 December 2010.

PRINCIPAL ACTIVITY

TheprincipalactivityoftheGroupintheyearunderreviewwasinthebusinessofprovidinge-commerceinfrastructure payment solutions and platforms.

KEY PERFORMANCE INDICATORS

Year ended Year ended 31.12.2010 31.12.2009 £ £

Revenue 23,291,599 13,733,773Operatingloss (122,436) (846,286)Lossbeforetax (206,079) (917,343)Netloss (215,118) (917,343)

KEYS RISKS AND UNCERTANTIES

Operational risks

TheGroupisnotinsulatedfromgeneralbusinessriskaswellascertainrisksinherentintheindustryinwhichtheGroupoperates.Thismayincludetechnologicalchanges,unfavourablechangesinGovernmentandinternationalpolicies,theintroductionofnewandsuperiortechnologyorproductsandservicesbycompetitorsandchangesinthegeneraleconomic,businessandcreditconditions.

Dependency on Distributorships Agreements

TheGroupreliesonvarioustelecommunicationcompaniestoprovidethetelecommunicationproducts.Hencethe Group’s business may be materially and adversely affected if one or more of these telecommunication companiescutorreducedrasticallythesupplyoftheirproducts.TheGrouphasdistributorshipagreementswithtelecommunicationcompaniessuchasDiGiTelecommunicationsSdn.Bhd.,Celcom(M)BerhadandMaxisCommunicationBerhad,whicharesubjecttoperiodicrenewal.

Rapid technological changes/product changes in the e-commerce industry

Theabilitytokeeppacewithrapidtechnologicaldevelopmentinthee-commerceindustrywillaffecttheGroup’srevenuesandprofits.Thee-commerceindustryischaracterisedbyrapidtechnologicalchangesduetochangingmarkettrends,evolvingindustrystandards,newtechnologiesandemergingcompetition.Future success will be dependent upon the Group’s ability to enhance its existing technology solutions and introduce new products and services to respond to the constantly changing technological environment. Thetimelydevelopmentofnewandenhancedservicesorproductsisacomplexanduncertainprocess.

REPORT OF THE DIRECTORSFor the year ended 31 December 2010

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Demand of products and services

TheGroup’sfutureresultsdependontheoveralldemandforitsproductsandservices.Uncertaintyintheeconomic environment may cause some business to curtail or eliminate spending on payment technology. Inaddition,theGroupmayexperiencehesitancyonthepartofexistingandpotentialcustomerstocommitto continuing with its new services.

REVIEW OF BUSINESS

TheresultsfortheyearandfinancialpositionoftheCompanyandtheGroupareasshownintheChairman’sstatement. RESULTS AND DIVIDENDS

Theconsolidatedlossfortheyearended31December2010is£215,118(31.12.2009:loss£917,343)whichhas been transferred to reserves. No dividends will be distributed for the year ended 31 December 2010.

DIRECTORS

TheDirectorsduringtheyearunderreviewwere:

Dato’Dr.WanAzmibinAriffin(Non-ExecutiveChairman)Dato’[email protected](ChiefExecutiveOfficer)DerrickChiaKahWai(TechnicalDirector)SeahBoonChin(CorporateFinanceDirector)Dato’ShamsirbinOmar(Non-ExecutiveDirector)KjetilLanglandBohn(Non-ExecutiveDirector)

Dato’ShamsirbinOmarandKjetilLanglandBohnwhoareeligibleofferthemselvesforre-electionattheforthcoming Annual General Meeting.

ThebeneficialinterestsoftheDirectorsholdingofficeat31December2010intheordinarysharesoftheCompany,wereasfollows: Ordinary 2.5p shares Dato’Dr.WanAzmibinAriffinDato’ Hussian @ Rizal bin A. RahmanDerrick Chia Kah WaiSeah Boon ChinDato’ShamsirbinOmarKjetil Langland Bohn

Interest at 31.12.10

Nil30,661,895

NilNil

9,131,677Nil

% of issued capital

Nil32.8

NilNil9.8Nil

REPORT OF THE DIRECTORS(CONTINUED)

For the year ended 31 December 2010

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TheDirectorsalsoheldthefollowingordinarysharesunderoption:

Dato’Dr.WanAzmibinAriffinDato’ Hussian @ Rizal bin A. RahmanDerrick Chia Kah WaiSeah Boon ChinDato’ShamsirbinOmarKjetil Langland Bohn

Theoptionsweregrantedon5July2007atanexercisepriceof12.5p.Theperiodoftheoptionsisfive years. SUBSTANTIAL SHAREHOLDERS

Asat1June2011,theCompanyhadbeennotifiedofthefollowingbeneficialinterestsin3%ormoreoftheissuedsharecapitalpursuanttoPartVIofArticle110oftheCompanies(Jersey)Law1991:

Ordinary 2.5p shares

Dato’ Hussian @ Rizal bin A. RahmanThornbeamLimitedDatuk Yahaya bin Mat Ghani Dato’ShamsirbinOmarPerbadanan Nasional Berhad

PUBLICATION OF ACCOUNTS ON COMPANY WEBSITE

FinancialstatementsarepublishedontheCompany’swebsite.ThemaintenanceandintegrityofthewebsiteistheresponsibilityoftheDirectors.TheDirectors’responsibilityalsoextendstothefinancialstatementscontained therein.

INDEMNITY OF OFFICERS

TheGroupdoesnothavetheinsurancecoveragainstlegalactionboughtagainstitsDirectorsandofficers. GROUP'S POLICY ON PAYMENT OF CREDITORS

It is the Group’s normal practice to make payments to suppliers in accordance with agreed terms provided that the supplier has performed in accordance with the relevant terms and conditions.

Number of ordinary shares

30,661,89516,048,92210,500,0009,131,6775,290,000

% of issued capital

32.817.211.29.85.7

REPORT OF THE DIRECTORS (CONTINUED)For the year ended 31 December 2010

Interest at 31.12.10

Nil2,000,0002,000,0002,000,000

NilNil

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EMPLOYEE INVOLVEMENT

TheGroupplacesconsiderablevalueontheinvolvementoftheemployeesandhascontinuedtokeeptheminformedonmattersaffectingtheGroup.Thisisachievedthroughformalandinformalmeetings.

GOING CONCERN

ThesefinancialstatementshavebeenpreparedontheassumptionthattheGroupisagoingconcern.FurtherinformationisgiveninNote2ofthefinancialstatements. STATEMENT OF DIRECTORS' RESPONSIBILITIES

TheDirectorsareresponsibleforpreparingthefinancialstatements inaccordancewithapplicable lawand regulations.

CompanylawrequirestheDirectorstopreparefinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorshaveelectedtopreparethefinancialstatementsinaccordancewithInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnion.ThefinancialstatementsarerequiredbylawtogiveatrueandfairviewofthestateofaffairsoftheCompanyandtheGroupandoftheprofitorlossoftheGroupforthatperiod.Inpreparingthesefinancialstatements,theDirectorsarerequiredto:

- selectsuitableaccountingpoliciesandthenapplythemconsistently;- makejudgmentsandestimatesthatarereasonableandprudent;- preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethat the Company will continue in business for the foreseeable future; and- statethatthefinancialstatementscomplywithInternationalFinancialReportingStandards(IFRS)as adopted by the European Union.

TheDirectors are responsible for keepingproper accounting recordswhich disclosewith reasonableaccuracyatanytimethefinancialpositionoftheCompanyandtheGroupandtoenablethemtoensurethatthefinancialstatementscomplywiththeArticle110oftheCompanies(Jersey)Law1991andArticle4oftheIASregulation.TheyarealsoresponsibleforsafeguardingtheassetsoftheCompanyandtheGroupand hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

SofarastheDirectorsareaware,thereisnorelevantauditinformation(asdefinedbySection234ZAoftheArticle110oftheCompanies(Jersey)Law1991)ofwhichtheGroup'sauditorsareunaware,andeachDirector has taken all the steps that he ought to have taken as a Director in order to make himself aware ofanyrelevantauditinformationandtoestablishthattheGroup'sauditorsareawareofthatinformation.

REPORT OF THE DIRECTORS(CONTINUED)


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AUDITORS

JeffreysHenryLLPhaveexpressedtheirwillingnesstocontinueinoffice.AresolutionproposingthatJeffreysHenryLLPbere-appointedwillbeputtotheforthcomingAnnualGeneralMeeting.

ON BEHALF OF THE BOARD:

............................................................................Dato’ Hussian @ Rizal bin A. RahmanChief Executive Officer

Date:9June2011

REPORT OF THE DIRECTORS (CONTINUED)For the year ended 31 December 2010

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TheDirectorsacknowledgetheimportanceofthePrinciplessetoutintheCombinedCodeissuedbytheCommitteeonCorporateGovernance.AlthoughtheCombinedCodeisnotcompulsoryforAIMcompanies,the Directors intend to apply the principles as far as practicable and appropriate for a relatively small public companyasfollows:

THE BOARD OF DIRECTORS

TheBoardisresponsibleforstrategy,performance,approvalofmajorcapitalprojectsandtheframeworkofinternalcontrols.ToenabletheBoardtodischargeitsduties,allDirectorsreceiveappropriateandtimelyinformation.BriefingpapersaredistributedtoallDirectorsinadvanceofBoardmeetings.AllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretary,whoisresponsibleforensuringthatBoardprocedures are followed and that applicable rules and regulations are complied with.

AUDIT COMMITTEE AND REMUNERATION COMMITTEE

TheAuditCommitteeandtheRemunerationCommitteecompriseoftheNon-executiveDirectors.TheAuditCommitteereceivesandreviewsreportsfrommanagementandtheCompany'sauditorsrelatingtotheannualandinterimaccountsandtheaccountingandinternalcontrolsystemsoftheCompany.TheAuditCommitteehasunrestrictedaccesstotheGroup'sauditors.

TheRemunerationCommitteereviewstheperformanceoftheExecutiveDirectors,setstheirremuneration,determines the payment of bonuses to Executive Directors and considers the allocation of share options to Directors and employees.

INTERNAL FINANCIAL CONTROL

TheBoardisresponsibleforestablishingandmaintainingtheGroup’ssystemofinternalfinancialcontrolandplacesimportanceonmaintainingastrongcontrolenvironment.ThekeyprocedureswhichtheDirectorshaveestablishedwithaviewtoprovidingeffectiveinternalfinancialcontrolareasfollows:

• TheGroup’sorganisationalstructurehasclearlinesofresponsibility.

• TheCompanypreparesacomprehensiveannualbudgetthatisapprovedbytheBoard.Monthlyresults are reported against the budget and variances are closely monitored by the Directors.

• TheBoard is responsible for identifying themajor business risks facedby theCompanyand for determining the appropriate courses of action to manage those risks.

• TheBoardisinvolvedinregularsubsidiarycompanyBoardmeetingsandwithstructuredoperational reporting requirements.

TheDirectors recognise, however, that such a systemof internal financial control can provide onlyreasonable,notabsolute,assuranceagainstmaterialmisstatementorloss.TheDirectorshavereviewedtheeffectivenessofthesystemofinternalfinancialcontrolthatwillbeoperatedbytheGroup.

CORPORATE GOVERNANCE REPORTFor the year ended 31 December 2010

11

CORPORATE GOVERNANCE REPORT (CONTINUED)For the year ended 31 December 2010

SERVICE CONTRACTS

TheDirectorshaveservicecontractsandlettersofappointment,whichrequirenotlessthan3months’notice of termination.

MODEL CODE

TheCompanyhasadoptedandoperatesasharedealingcodeforDirectorsandseniorexecutivesonthesame terms as the London Stock Exchange Model Code for companies whose shares have been admitted to AIM.

RELATIONS WITH SHAREHOLDERS

Communicationswithshareholdersaregivenhighpriority.TheBoardusestheAnnualGeneralMeetingtocommunicatewithinvestorsandwelcomestheirparticipation.TheChairmanaimstoensurethattheDirectors are available at Annual General Meetings to answer questions.

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Dato’ Dr. Wan Azmi bin Ariffin (Non-Executive Chairman)

Dato’Dr.WanAzmibinAriffin,aMalaysianaged67,istheNon-ExecutiveChairmanoftheCompany.Hebeganhiscareerasateacherforsecondaryschoolsfrom1965to1977andlaterbecameauniversitylecturerfrom1979to1981.Sincethen,hehas been active in the Malaysian politics. He obtained his Bachelor Degree in Geography from Universiti Sains Malaysia and a Master’sDegreeinEconomicDevelopmentandaPhDinPoliticalEconomicsfromMcGillUniversity,Canada.

Dato’ Hussian @ Rizal bin A. Rahman (Chief Executive Officer)

Dato’[email protected],aMalaysianaged49,istheChiefExecutiveOfficeroftheGroup.HehasextensiveexperienceintheITandtelecommunicationsindustriesinMalaysiaandisresponsibleforthedevelopmentoftheGroup’soverallmanagement,particularlyinsettingtheGroup’sbusinessdirectionandstrategies.HeobtainedacertifiedMasterofBusinessAdministrationfromtheOxfordAssociationofManagement,England.

Derrick Chia Kah Wai (Technical Director)

DerrickChiaKahWai,aMalaysianaged40,istheTechnicalDirectoroftheGroup.Hebeganhiscareerasaprogrammerin1994,hethenjoinedGHLSystemsBerhadinJanuary1998asaSoftwareEngineerandwaspromotedtoSoftwareDevelopmentManagerinDecember1999.HeobtainedhisBachelorDegreeinCommerce,majoringinManagementInformationSystemfromUniversityofBritishColumbia,Canada.HejoinedtheGroupinMay2005andisresponsiblefortheGroup’sR&Dteamwhichinclude the architectural design of its technology platform.

Seah Boon Chin (Corporate Finance Director)

SeahBoonChin,aMalaysianaged39,istheCorporateFinanceDirectoroftheCompany.HebeganhiscareerasaseniorofficerwithChungKhiawBank(Malaysia)Bhd.(nowUnitedOverseasBank(Malaysia)Berhad)from1995to1996.From1997toJanuary2007,heworkedintheCorporateFinanceDepartmentofestablishedfinancialinstitutionsinMalaysiaandSingaporeincludingCIMBInvestmentBankBerhad,AffinInvestmentBankBerhadandPublicInvestmentBankBerhad.HeobtainedhisBachelorDegreeinCommerce(Honours)withDistinctionfromMcMasterUniversity,Canada.HejoinedtheGroupinJanuary2007andisresponsiblefortheGroup’scorporatefinanceactivities.

Dato’ Shamsir bin Omar (Non-Executive Director)

Dato’ShamsirbinOmar,aMalaysianaged76isaNon-ExecutiveDirectoroftheGroup.HecommencedhiscareerwiththeMalaysianGovernmentinAugust1960astheAuditorandAccountantintheDepartmentofCooperativeDevelopment.In1966,hewasappointedastheChiefAccountantintheMinistryofEducation,Malaysia.In1967,hewaspromotedtothepositionofDeputyAccountantGeneralintheMinistryofFinance,Malaysia.In1968,hebecametheAccountantGeneral,Malaysia,apostheheldfor22yearsuntilhisretirementinJuly1989.Afterretirementfromgovernmentservicein1989,hejoinedShamsirJasaniGrantThornton,Malaysia.Hehasbeentheaccountingfirm’sChairmansincethen.HeisafellowmemberoftheInstituteof Chartered Accountants in Australia.

Kjetil Langland Bohn (Non-Executive Director)

KjetilLanglandBohn,aNorwegianaged41isaNon-ExecutiveDirectoroftheCompany.HegraduatedfromtheNorwegianBusiness School in Bergen and began his career as a journalist with Hegnar Media AS from 1996 to 2000. In July 2000 he founded VivaTechnologiesASandactedasCEOuntilFebruary2004whenhefoundedVykeAS.In2009,heleftVykeCommunicationsplcandfoundedAgrinosAS,abio-technologycompany.

BOARD OF DIRECTORS

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WehaveauditedtheGroupandtheCompanyfinancialstatementsofMobilityOneLimitedfortheyearended31December2010whichcomprisetheConsolidatedIncomeStatement,ConsolidatedStatementofComprehensive Income,ConsolidatedStatement ofChanges inEquity,ConsolidatedStatement ofFinancialPosition,CompanyStatementofFinancialPosition,ConsolidatedStatementofCashFlows,CompanyStatementofCashFlowsandtherelatednotes.Thesefinancialstatementshavebeenpreparedunder the accounting policies set out therein.

ThisreportismadesolelytotheCompany'smembers,asabody,inaccordancewithArticle110oftheCompanies(Jersey)Law1991.OurauditworkhasbeenundertakensothatwemightstatetotheCompany'smembersthosematterswearerequiredtostatetotheminanauditors'reportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany'smembersasabody,forourauditwork,forthisreport,orfortheopinionswe have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

TheDirectors'responsibilitiesforpreparingthefinancialstatementsinaccordancewithapplicablelawandInternational Financial Reporting Standards as adopted for use in the European Union are set out on page 8.

Our responsibility is toaudit thefinancialstatements inaccordancewith relevant legaland regulatoryrequirementsandInternationalStandardsonAuditing(UKandIreland).

Wereport toyououropinionas towhether thefinancialstatementsgivea trueand fairviewandareproperlypreparedinaccordancewiththeCompanies(Jersey)Law1991.WealsoreporttoyouwhetherinouropiniontheinformationgivenintheReportoftheDirectorsisconsistentwiththefinancialstatements.

Inaddition,wereporttoyouif,inouropinion,theCompanyhasnotkeptproperaccountingrecords,ifwehavenotreceivedalltheinformationandexplanationswerequireforouraudit,orifinformationspecifiedbylawregardingDirectors'remunerationandothertransactionsisnotdisclosed.

We read other information contained in the Annual Report and consider whether it is consistent with the auditedfinancialstatements.TheotherinformationcomprisesonlytheChairman’sStatement,CorporateGovernanceReportandDirectors’Report.Ourresponsibilitydoesnotextendtoanyotherinformation.

BASIS OF AUDIT OPINION

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issuedbytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttotheamountsanddisclosuresinthefinancialstatements.ItalsoincludesanassessmentofthesignificantestimatesandjudgmentsmadebytheDirectorsinthepreparationoftheGroup’sfinancialstatements,andofwhethertheaccountingpoliciesareappropriatetotheGroup’sandtheCompany’scircumstances,consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessaryinordertoprovideuswithsufficientevidencetogivereasonableassurancethattheGroup’sfinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorotherirregularityorerror. In forming our opinion we also evaluated the overall adequacy of the presentation of information in thefinancialstatements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MOBILITYONE LIMITED

14

OPINION ON THE FINANCIAL STATEMENTS

Inouropinion:

- theGroup’sfinancialstatementsgiveatrueandfairview,inaccordancewithInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnion,ofthestateofaffairsoftheGroupasat 31 December 2010 and of the loss of the Group for the period then ended;

- theCompany’sfinancialstatementsgiveatrueandfairview,inaccordancewithInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnion,asappliedinaccordancewiththeprovisionsoftheCompanies(Jersey)Law1991,ofthestateoftheCompany’saffairsasat31December2010; and

- thefinancialstatementshavebeenproperlypreparedinaccordancewiththeCompanies(Jersey)Law1991and,inrelationtotheGroupfinancialstatements.

OPINION ON OTHER MATTERS

InouropiniontheinformationgivenintheReportoftheDirectorsforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

WehavenothingtoreportinrespectofthefollowingmatterswhereCompanies(Jersey)Law1991requiresustoreporttoyouif,inouropinion:

- adequateaccountingrecordshavenotbeenkeptbytheParentCompany,orreturnsadequateforaudit have not been received from branches not visited by us; or

- theCompanyfinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns;or

- certaindisclosuresofDirectors'remunerationspecifiedbylawarenotmade;or

- wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

Justin RandallSenior Statutory AuditorFor and on behalf of Jeffreys Henry LLP

Finsgate5-7CranwoodStreetLondonEC1V 9EEUnited Kingdom

Date:9June2011

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MOBILITYONE LIMITED

(CONTINUED)

15

CONSOLIDATED INCOME STATEMENTFor the year ended 31 December 2010

CONTINUING OPERATIONS

RevenueCost of sales

GROSS PROFIT

OtheroperatingincomeAdministration expensesOtheroperatingexpenses

OPERATING LOSS

Finance costs

LOSS BEFORE TAX

Tax

LOSS AFTER TAX

Attributableto:Equity holders of the CompanyMinority interest

EARNING PER SHARE

Basicearningspershare(pence)Dilutedearningspershare(pence)

2009£

13,733,773(12,719,917)

1,013,856

71,713(1,496,741)(435,114)

(846,286)

(71,057)

(917,343)

-

(917,343)

(916,220)(1,123)

(917,343)

(1.15)(1.15)

2010£

23,291,599(21,353,213)

1,938,386

179,433(1,807,137)(433,118)

(122,436)

(83,643)

(206,079)

(9,039)

(215,118)

(215,653)535

(215,118)

(0.23)(0.23)

Note

6

7

8

1010

Thenotesformpartofthesefinancialstatements

16

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


LOSS AFTER TAX

OTHER COMPREHENSIVE INCOME/(LOSS)

Foreign currency translation

TOTAL COMPREHENSIVE INCOME/(LOSS)

Totalcomprehensiveincome/(loss)attributableto:OwnersoftheparentMinority interest

2009£

(917,343)

(557,375)

(1,474,718)

(1,473,595)(1,123)

(1,474,718)

2010£

(215,118)

433,103

217,985

217,450535

217,985


17


As at 1 January 2009

Comprehensive income/(loss)

Loss for the yearForeign currency translationTotalcomprehensiveincome

for the year

Transactions with ownersIssue of shares in MobilityOneLimited

Totaltransactionswithowners for the year

As at 31 December 2009

Share premium

£

782,234

--

-

-

-

782,234

Total£

3,991,700

(856,061)(557,375)

(1,413,436)

365,000

365,000

2,943,264

Total£

3,992,550

(857,184)(558,029)

(1,415,213)

365,000

365,000

2,942,337

Foreign currency

translation reserve

£

1,049,357

60,159(557,375)

(497,216)

-

-

552,141

Share capital

£

1,974,374

--

-

365,000

365,000

2,339,374

Retained earnings

£

(523,216)

(916,220)-

(916,220)

-

-

(1,439,436)

Minority Interest

£

850

(1,123)(654)

(1,777)

-

-

(927)

Reverseacquisition

reserve£

708,951

--

-

-

-

708,951

Non-Distributable Distributable

CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the year ended 31 December 2010

18

Share capital is the amount subscribed for shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of the respective shares net of share issue expenses.

ThereverseacquisitionreserverelatestotheadjustmentrequiredbyaccountingforthereverseacquisitioninaccordancewithIFRS3.

TheCompany’sassetsandliabilitiesstatedintheStatementofFinancialPositionweretranslatedintoPoundSterling(£)usingtheclosingrateasattheStatementofFinancialPositiondateandtheincomestatementsweretranslatedinto£usingtheaveragerateforthatperiod.All resulting exchange differences are taken to the foreign currency translation reserve within equity.

Retained earnings represent the cumulative earnings of the Group attributable to equity shareholders.


As at 1 January 2010

Comprehensive income/(loss)

Loss for the yearForeign currency translationTotalcomprehensiveincome

for the year

As at 31 December 2010

Share premium

£

782,234

--

-

782,234

Total£

2,943,264

(215,653)433,103

217,450

3,160,714

Total£

2,942,337

(215,118)433,026

217,908

3,160,245

Foreign currency

translation reserve

£

552,141

-433,103

433,103

985,244

Share capital

£

2,339,374

--

-

2,339,374

Retained earnings

£

(1,439,436)

(215,653)-

(215,653)

(1,655,089)

Minority Interest

£

(927)

535(77)

458

(469)

Reverseacquisition

reserve£

708,951

--

-

708,951

Non-Distributable Distributable

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(CONTINUED)For the year ended 31 December 2010

19


CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 31 December 2010

ASSETSNon-current assetsIntangible assetsProperty,plantandequipment

Current assetsInventoriesTradeandotherreceivablesShort term investmentCash and cash equivalentsTaxrecoverable

Non-currentassetsheldforsale

LIABILITIESCurrent liabilitiesTradeandotherpayablesAmount due to DirectorsLoans and borrowings – secured

Liabilityrelatingtonon-currentassetsheldforsale

NET CURRENT ASSETS

Totalassetslesscurrentliabilities

Non-current liabilityLoans and borrowings – secured

NET ASSETS

2009£

1,829,400988,465

2,817,865

728,094415,713

-400,3047,434

1,551,545375,442

1,926,987

449,56229,047

1,182,4981,661,107

71,0901,732,197

194,790

3,012,655

70,318

2,942,337

2010£

2,232,5061,012,6443,245,150

1,349,0581,258,128

1,778732,4363,428

3,344,828-

3,344,828

1,020,279238,698

2,070,5333,329,510

-3,329,510

15,318

3,260,468

100,223

3,160,245

Note

1112

14151617

18

192021

18

21

20


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(CONTINUED)As at 31 December 2010

SHAREHOLDERS’ EQUITY

Equity attributable to equity holders of the Company:Called up share capitalShare premiumReverse acquisition reserveForeign currency translation reserveAccumulated loss

Shareholders’ equityMinority interest

TOTAL EQUITY

2009£

2,339,374782,234708,951552,141

(1,439,436)

2,943,264(927)

2,942,337

2010£

2,339,374782,234708,951985,244

(1,655,089)

3,160,714(469)

3,160,245

Note

2324253132

21


COMPANY STATEMENT OF FINANCIAL POSITIONAs at 31 December 2010

ASSETSNon-current assetInvestment in subsidiary companies

Current assetsTradeandotherreceivablesCash and cash equivalents

Current liabilitiesTradeandotherpayablesAmount due to Directors

NET CURRENT ASSETS

NET ASSETS

SHAREHOLDERS’ EQUITY

Equity attributable to equity holders of the Company:Called up share capitalShare premium(Accumulatedloss)/retainedearnings

TOTAL EQUITY

2009£

2,040,930

1,155,1282,043

1,157,171

14,54929,04743,596

1,113,575

3,154,505

2,339,374782,23432,897

3,154,505

2010£

2,040,930

1,190,8202,082

1,192,902

28,26694,103122,369

1,070,533

3,111,463

2,339,374782,234(10,145)

3,111,463

Note

13

1517

1920

232424

22


CONSOLIDATED STATEMENT OF CASH FLOWS


Cash flow from operating activitiesCash depleted in operations Interest paid Interest received Taxpaid

Net cash used in operating activities

Cash flows from investing activities Purchaseofproperty,plantandequipment Purchase of short term investment Proceedsfromdisposalofproperty,plantandequipment Additions to development costs

Netcashgeneratedfrom/(usedin)investingactivities

Cash flows from financing activities Drawdown of short term borrowings Repayment of term loans Repaymentoffinanceleasepayables Proceeds from issuance of ordinary shares

Netcashgeneratedfromfinancingactivities

Increase in cash and cash equivalents

Effect of foreign exchange rate changes

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

2009£

(489,661)(71,057)1,902

-

(558,816) (57,804) - - -

(57,804) 472,719 (89,122) (4,662) 365,000

743,935 127,315 (137,096) 410,085 400,304

2010£

(281,553) (83,643) 10,956 (1,635)

(355,875) (40,078) (1,713) 454,005 (285,009)

127,205

864,705(184,393)(12,297)

-

668,015

439,345

(107,213)

400,304

732,436

Note

26

11

17

23


COMPANY STATEMENT OF CASH FLOWSFor the year ended 31 December 2010

Cash flow from operating activities Cash depleted in operations

Cash flows from investing activity Proceeds from issuance of ordinary shares

Decrease in cash and cash equivalents

Effect of foreign exchange rate changes

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

2009£

(366,280)

365,000

(1,280)

(94)

3,417

2,043

2010£

(5)

-

(5)

44

2,043

2,082

Note

26

17

24

1. GENERAL INFORMATION

TheprincipalactivityoftheCompanyisinvestmentholding.TheprincipalactivitiesofthesubsidiarycompaniesaresetoutinNote13tothefinancialstatements.Therewerenosignificantchangesinthenatureoftheseactivitiesduringtheyear.

TheCompanyisincorporatedinJersey,TheChannelIslandsundertheCompanies(Jersey)Law1991andislistedonAIM.Theregisteredofficeislocatedat28-34HillStreet,StHelier,JerseyJE48PN,ChannelIslands.Theconsolidatedfinancialstatements for the year ended 31 December 2010 comprise the results of the Company and its subsidiary companies undertakings.TheCompany’ssharesaretradedonAIMoftheLondonStockExchange.

MobilityOneLimitedistheholdingcompanyofanestablishedgroupofcompanies(“Group”)basedinMalaysiawhichisinthebusinessofprovidinge-commerceinfrastructurepaymentsolutionsandplatformsthroughtheirproprietarytechnologysolutions,whicharemarketedunderthebrandsMoCSTMandABOSSETM.

TheGrouphasdevelopedanend-to-ende-commercesolutionwhichconnectsvariousserviceprovidersacrossseveralindustriessuchasbanking,telecommunicationandtransportationthroughmultipledistributiondevicessuchasEDCterminals,shortmessagingservices,AutomatedTellerMachineandInternetbanking.

TheGroup’stechnologyplatformisflexible,scalableandhasbeendesignedtofacilitatecash,debitcardandcreditcardtransactions(according to thedevice) frommultipledeviceswhilecontrollingandmonitoring thedistributionofdifferentproducts and services.

2. ACCOUNTING POLICIES

Basis of preparation ThesefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSsandIFRICinterpretations)issuedbytheInternationalAccountingStandardsBoard(IASB),asadoptedbytheEuropeanUnion,andwiththosepartsof theCompanies(Jersey)Law1991applicabletocompaniespreparingtheirfinancialstatementsunderIFRS.Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention.

Going Concern

TheGroup’sbusinessactivities,togetherwiththefactorslikelytoaffectitsfuturedevelopment,performanceandposition,aresetoutintheBusinessReviewonpage3.ThefinancialpositionoftheGroup,itscashflows,liquiditypositionandborrowingfacilitiesaredescribedinthefinancialstatementsandassociatednotes.Inaddition,Note3tothefinancialstatementsincludestheGroup’sobjectives,policiesandprocessesformanagingitscapital;itsfinancialriskmanagementobjectives;detailsofitsfinancialinstrumentsandhedgingactivities;anditsexposurestocreditriskandliquidityrisk.

InordertoassessthegoingconcernoftheGroup,theDirectorshavepreparedcashflowforecastsforcompanieswithintheGroup.ThesecashflowforecastsshowtheGroupwillhaveincreasedsalesbasedprimarilyonsignedcontractsandhavingsufficientheadroomoveravailablebankingfacilities.TheGrouphasobtainedbankingfacilitiessufficienttofacilitatethegrowth forecast in future periods. No matters have been drawn to the Directors’ attention to suggest that future renewals may not be forthcoming on acceptable terms.

Aftermakingenquiries,theDirectorshaveareasonableexpectationthattheGrouphasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Accordingly,theycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 December 2010

25

2. ACCOUNTING POLICIES (Continued)

Estimation uncertainty and critical judgements

Thesignificantareasofestimationuncertaintyandcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountrecognisedinthefinancialstatementsareasfollows:

(i) Acquisitionofsubsidiarycompanies

Intangible assets acquired have been accounted for in accordance with IFRS 3 ‘Business Combinations’ and IAS 38 ‘IntangibleAssets’.Thekeyassumptionsaretheidentifiableintangibleassetsacquired,forecastfuturecashflowsandthediscountrate.ThecarryingamountsoftheGroup’sintangibleassetsasat31December2010aredisclosedinNote11tothefinancialstatements.

(ii) Depreciationofproperty,plantandequipment

Thecostsofproperty,plantandequipmentoftheGrouparedepreciatedonastraight-linebasisovertheusefullivesoftheassets.Managementestimatestheusefullivesoftheproperty,plantandequipmenttobewithin5to10years.Thesearecommonlifeexpectanciesappliedintheindustry.Changesintheexpectedlevelofusageandtechnologicaldevelopmentscouldimpacttheeconomicusefullivesandtheresidualvaluesoftheseassets,thereforefuturedepreciationchargescouldberevised.ThecarryingamountsoftheGroup’sproperty,plantandequipmentasat31December2010aredisclosedinNote12tothefinancialstatements.

(iii) Amortisationofintangibleassets

Software is amortised over its estimated useful life. Management estimated the useful life of this asset to be within 10 years. Changes in the expected level of usage and technological development could impact the economic useful life therefore future amortisation could be revised.

TheGroupdetermineswhethergoodwillisimpairedatleastonanannualbasis.Thisrequiresanestimationofthevalue-in-useofthecashgeneratingunits(“CGU”)towhichgoodwillisallocated.Estimatingavalue-in-useamountrequiresmanagementtomakeanestimationoftheexpectedfuturecashflowsfromtheCGUandalsotochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.

Theresearchanddevelopmentcostsareamortisedonastraight-linebasisoverthelifespanofthedevelopedassets.Management estimated the useful life of these assets to be within 5 years. Changes in the technological developments couldimpacttheeconomicusefullifeandtheresidualvaluesoftheseassets,thereforefutureamortisationchargescould be revised.

ThecarryingamountsoftheGroup’sintangibleassetsasat31December2010aredisclosedinNote11tothefinancialstatements.

(iv) Impairmentofgoodwillonconsolidation

TheGroup'scashflowprojectionsincludeestimatesofsales.However,iftheprojectedsalesdonotmaterialisethereis a risk that the value of goodwill would be impaired.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)For the year ended 31 December 2010

26


Estimation uncertainty and critical judgements (continued)

TheDirectorshavecarriedoutadetailedimpairmentreviewinrespectofgoodwill.TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired,byconsideringthenetpresentvalueofdiscountedcashflowsforecastswhichhavebeendiscountedat8.5%.Thecashflowprojectionsarebasedontheassumptionthat the Group can realise projected sales. A prudent approach has been applied with no residual value being factored. Attheperiodend,basedontheseassumptionstherewasnoindicationofimpairmentofthevalueofgoodwillorofdevelopment costs.

However,iftheprojectedsalesdonotmaterialisethereisariskthatthevalueoftheintangibleassetsshownabovewould be impaired.

ThecarryingamountoftheGroup’sgoodwillonconsolidationasat31December2010isdisclosedintheNote11tothefinancialstatements.

(v) Incometaxes

TheGrouphasexposuretoincometaxesinnumerousjurisdictions.Therearecertaintransactionsandcomputationforwhich theultimate taxdetermination isuncertainduring theordinarycourseofbusiness.Significant judgementis involved especially in determining tax base allowances and deductibility of certain expenses in determining the Group-wideprovisionforincometaxes.TheGrouprecognisesliabilitiesforexpectedtaxissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuch determination is made.

(vi) Contingentliabilities

Whereitisnotprobablethatanoutflowofeconomicbenefitswillberequired,ortheamountcannotbeestimatedreliably,theobligationisdisclosedasacontingentliability,unlesstheprobabilityofoutflowofeconomicbenefitsisremote.Possibleobligations,whoseexistencewillonlybeconfirmedbytheoccurrenceornon-occurrenceofoneormorefutureeventsarealsodisclosedascontingentliabilitiesunlesstheprobabilityofoutflowofeconomicbenefitsisremote.

TheDirectorsareoftheopinionthatnoprovisionisrequiredinrespectofthecontingentliabilitiesasdisclosedinNote30asitisnotprobablethatfuturesacrificeofeconomicbenefitswillberequiredortheamountisnotcapableofreliablemeasurement.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)


27


IFRS AND IAS UPDATE FOR 31 DECEMBER 2010 ACCOUNTS

(a) New and amended standards adopted by the Group

TheGrouphasadoptedthefollowingnewandamendedIFRSsasof1January2010:

IFRS3 (revised), ‘Business combinations’ and consequential amendments to IAS27, ‘Consolidatedand separatefinancialstatements’,IAS28,‘Investmentsinassociates’andIAS31,‘Interestsinjointventures’,effectiveprospectivelytobusinesscombinationsforwhichtheacquisitiondateisonorafterthebeginningofthefirstannualreportingperiodbeginning on or after 1 July 2009.

Therevisedstandardcontinuestoapplytheacquisitionmethodtobusinesscombinations,withsomesignificantchanges.Forexample,allpaymentstopurchaseabusinessaretoberecordedatfairvalueattheacquisitiondate,withcontingentpaymentsclassifiedasdebtsubsequentlyre-measuredthroughthestatementofcomprehensiveincome.Thereisachoiceonanacquisition-by-acquisitionbasistomeasuretheminorityinterestintheacquireeeitheratfairvalueorattheminorityinterest’sproportionateshareoftheacquiree’snetassets.Allacquisition-relatedcostsshouldbeexpensed.

• IAS27(revised),‘Consolidatedandseparatefinancialstatements’,(effectivefrom1July2009).Therevisedstandardrequirestheeffectsofalltransactionswithnon-controllingintereststoberecordedinequityifthereisnochangeincontrolandthesetransactionswillnolongerresultingoodwillorgainsandlosses.Thestandardalsospecifiestheaccountingwhencontrolislost.Anyremaininginterestintheentityisremeasuredtofairvalue,andagainorlossisrecognisedinprofitorloss.ThecompanywillapplyIAS27(revised)prospectivelytotransactionswithnon-controlling interests from 1 January 2010.

• IAS38(amendment),‘Intangibleassets’.TheamendmentispartoftheIASB’sannualimprovementsprojectpublishedinApril2009andthecompanywillapply IAS38(amendment) fromthedate IFRS3(revised) isadopted.Theamendmentclarifiesguidanceinmeasuringthefairvalueofanintangibleassetacquiredinabusinesscombinationand it permits the grouping of intangible assets as a single asset if each asset has a similar useful economic life. Theamendmentwillnotresultinamaterialimpactonthecompany’sfinancialstatements.

• IAS32(amendment),‘Financialinstruments:presentation–classificationofrightsissue’,iseffectivefromannualperiodsbeginningonorafter1February2010andamendedthedefinitionofafinancialliabilityinordertoclassifyrightsissues(andcertainoptionsorwarrants)asequityinstrumentsincaseswheresuchrightsaregivenpro-ratatoalloftheexistingownersofthesameclassofanentity’snon-derivativeequityinstruments,ortoacquireafixednumberoftheentity’sownequityinstrumentsforafixedamountinanycurrency.Thisamendmentwillhavenoimpact on the company after initial application.

• IFRS2,Share-basedPayment:GroupCash-settledShare-basedPaymentTransactionseffective1January2010.TheIASBissuedanamendmenttoIFRS2thatclarifiedthescopeandtheaccountingforgroupcash-settledshare-basedpaymenttransactions.Thecompanyadoptedthisamendmentasof1January2010.Itdidnothaveanimpactonthefinancialpositionorperformanceofthecompany.

• IAS39FinancialInstruments:RecognitionandMeasurement–EligibleHedgedItemseffective1July2009.Theamendmentclarifiesthatanentityispermittedtodesignateaportionofthefairvaluechangesorcashflowsvariabilityofafinancialinstrumentasahedgeditem.Thisalsocoversthedesignationofinflationasahedgedriskorportioninparticularsituations.ThecompanyhasconcludedthattheamendmentwillhavenoimpactonthefinancialpositionorperformanceoftheCompany,astheCompanyhasnotenteredintosuchhedges.


28


IFRS AND IAS UPDATE FOR 31 DECEMBER 2010 ACCOUNTS (continued)

(a) New and amended standards adopted by the Group (continued)

Thefollowingnewstandards,amendments tostandardsand interpretationsaremandatory for thefirst timefor thefinancialyearbeginning1January2010,butarenotcurrentlyrelevantforthecompany:

• IFRIC17,‘Distributionsofnon-cashassetstoowners’,effectiveforannualperiodsbeginningonorafter1July2009.Thisisnotcurrentlyapplicabletothecompany,asithasnotmadeanynon-cashdistributions.

• IFRIC18,‘Transfersofassetsfromcustomers’,effectivefortransfersofassetsreceivedonorafter1July2009.Thisisnotrelevanttothecompany,asithasnotreceivedanyassetsfromcustomers.

(b) Standards, interpretations and amendments to published standards that are not yet effective

Thefollowingnewstandards,amendmentstostandardsandinterpretationshavebeenissued,butarenoteffectiveforthefinancialyearbeginning1January2010andhavenotbeenearlyadopted:

• IAS24(Amendment),‘Relatedpartytransactions’.Theamendedstandardiseffectiveforannualperiodsbeginningonorafter1January2011.Itclarifieddefinitionofarelatedpartytosimplifytheidentificationofsuchrelationshipsandtoeliminateinconsistenciesinitsapplication.Therevisedstandardintroducesapartialexemptionofdisclosurerequirementsforgovernment-relatedentities.Thecompanydoesnotexpectanyimpactonitsfinancialpositionorperformance.

• IFRIC14(Amendment),‘Prepaymentsofaminimumfundingrequirement’.TheamendmenttoIFRIC14iseffectiveforannualperiodsbeginningonorafter1January2011withretrospectiveapplication.Theamendmentprovidesguidanceonassessingtherecoverableamountofanetpensionasset.Theamendmentpermitsanentitytotreattheprepaymentofaminimumfundingrequirementasanasset.Theamendmentisdeemedtohavenoimpactonthefinancialstatementsofthecompany.

• IFRS9,‘Financialinstruments:classificationandmeasurement’,asissuedreflectsthefirstphaseoftheIASBworkonthereplacementofIAS39andappliestoclassificationandmeasurementoffinancialassetsasdefinedinIAS39.Thestandardiseffectiveforannualperiodsbeginningonorafter1January2013.Insubsequentphases,theIASBwilladdressclassificationandmeasurementoffinancialliabilities,hedgeaccountingandderecognition.Thecompletionofthisprojectisexpectedinearly2011.TheadoptionofthefirstphaseofIFRS9mighthaveaneffectontheclassificationandmeasurementofthecompany’sassets.Atthisjunctureitisdifficultforthecompanytocomprehendtheimpactonitsfinancialpositionandperformance.

• IFRIC19,‘Extinguishingfinancialliabilitieswithequityinstruments’,iseffectiveforannualperiodsbeginningonorafter1July2010.Theinterpretationclarifiesthatequityinstrumentsissuedtoacreditortoextinguishafinancialliabilityqualifyasconsiderationpaid.Theequityinstrumentsissuedaremeasuredattheirfairvalue.Incasethatthiscannotbereliablymeasured,theinstrumentsaremeasuredatthefairvalueoftheliabilityextinguished.Anygainorlossisrecognisedinprofitorloss.Theadoptionofthisinterpretationwillhavenoeffectonthefinancialstatements of the company.



29


IFRS AND IAS UPDATE FOR 31 DECEMBER 2010 ACCOUNTS (continued)

(b) Standards, interpretations and amendments to published standards that are not yet effective (continued)

• ImprovementstoIFRS(issuedinMay2010).TheIASBissuedimprovementtoIFRSs,anomnibusofamendmentstoitsIFRSstandards.Theamendmentshavenotbeenadoptedastheybecomeeffectiveforannualperiodsonorafter1January2011or1July2010.Theamendmentslistedbelow,areconsideredtohaveareasonablepossibleimpactonthecompany:

- IFRS3Businesscombinations - IFRS7Financialinstruments:disclosures - IAS1Presentationoffinancialstatements - IAS27Consolidatedandseparatefinancialstatements

Thecompanyexpectsnoimpactfromtheadoptionoftheaboveamendmentsonitsfinancialpositionorperformance.

Basis of consolidation

TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandentitiescontrolledbytheCompany(itssubsidiarycompanies)madeupto31Decembereachyear.ControlisachievedwheretheCompanyhasthepowertogovernthefinancialandoperatingpoliciesofaninvesteeentitysoastoobtainbenefitsfromitsactivities.

Transactions,balancesandunrealisedgainsontransactionsbetweenGroupcompaniesareeliminated.Unrealisedlossesare also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of its subsidiary companieshavebeenchanged(wherenecessary)toensureconsistencywiththepoliciesadoptedbytheGroup.

(i) Subsidiarycompanies

SubsidiarycompaniesareentitiesoverwhichtheGrouphastheabilitytocontrolthefinancialandoperatingpoliciessoastoobtainbenefitsfromtheiractivities.Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableor convertible are considered when assessing whether the Group has such power over another entity.

IntheCompany’sseparatefinancialstatements,investmentsinsubsidiarycompaniesarestatedatcostlessimpairmentlosses.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedinprofitorloss.

(ii) Basisofconsolidation

Thesharecapitalintheconsolidatedstatementofchangesinequityfortheboththecurrentandcomparativeperioduses a historic exchange rate to determine the equity value.

On22June2007MobilityOneLimitedacquiredtheentireissuedsharecapitalofMobilityOneSdn.Bhd.bywayofashareforshareexchange,underIFRSthistransactionmeetsthecriteriaofaReverseAcquisition.Theconsolidatedaccountshave therefore been presented under the Reverse Acquisition Accounting principles of IFRS 3 and show comparatives forMobilityOneSdn.Bhd..Forfinancialreportingpurposes,MobilityOneSdn.Bhd.(thelegalsubsidiarycompany)istheacquirerandMobilityOneLimited(thelegalparentcompany)theacquiree.


30


Basis of consolidation (continued) Wherenecessary,adjustmentsaremadetothefinancialstatementsofsubsidiariestobringtheaccountingpoliciesused

into line with those used by the Group.

Allinter-groupbalancesandtransactions,includingunrealisedprofitsarisingfromintra-grouptransactions,areeliminatedfully on consolidation.

Subsidiarycompaniesareconsolidatedfromthedateofacquisition,beingthedateonwhichtheGroupobtainscontrol,andcontinuetobeconsolidateduntilthedatethatsuchcontrolceases.Inpreparingtheconsolidatedfinancialstatements,intra-groupbalances,transactionsandunrealisedgainsorlossesareeliminatedinfull.Uniformaccountingpoliciesareadoptedintheconsolidatedfinancialstatementsforliketransactionsandeventsinsimilarcircumstances.

NogoodwillhasbeenrecordedandthedifferencebetweentheparentCompany’scostofinvestmentandMobilityOneSdn. Bhd.’s share capital and share premium is presented as a reverse acquisition reserve within equity on consolidation.

TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandallentitiescontrolledbyitaftereliminatinginternaltransactions.ControlisachievedwheretheGrouphasthepowertogovernthefinancialandoperatingpoliciesofaGroupundertakingsoastoobtaineconomicbenefitsfromitsactivities.Undertakings’resultsareadjusted,whereappropriate,toconformtoGroupaccountingpolicies.

AspermittedbyandinaccordancewithArticle110oftheCompanies(Jersey)Law1991,aseparateincomestatementofMobilityOneLimited,isnotpresented.

Revenue recognition

RevenueisrecognisedwhenitisprobablethateconomicbenefitsassociatedwiththetransactionwillflowtotheGroupandthe amount of the revenue can be measured reliably.

(i) Revenuefromtradingactivities

RevenueinrespectofusingtheGroup’se-Channelplatformarisesfromthesalesofprepaidcredit,salescommissionsreceived and fees per transaction charged to customers. Revenue for sales of prepaid credit is deferred until such time as the products and services are delivered to end users. Sales commissions and transaction fees are received from various product and services providers and are recognised when the services are rendered and transactions are completed.

Revenuefromsolutionsalesandconsultancycomprisesalesofsoftwaresolutions,hardwareequipment,consultancyfeesandmaintenanceand support services. For sales of hardwareequipment, revenue is recognisedwhen thesignificantrisksassociatedwiththeequipmentaretransferredtocustomersortheexpiryoftherightofreturn.Forallotherrelatedsales,revenueisrecognisedupondeliverytocustomersandovertheperiodinwhichservicesareexpectedto be provided to customers.



31


Revenue recognition (Continued)

(ii) Interestincome

Interest income is recognised on a time proportion basis that takes into account the effective yield on the asset. Employee benefits

(i) Shorttermemployeebenefits

Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasanexpenseintheperiodinwhichtheassociated services are rendered by employees of the Group. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensationabsences.Shorttermnon-accumulatingcompensatedabsencessuchassickandmedical leavearerecognised when the absences occur.

Theexpectedcostofaccumulatingcompensatedabsencesismeasuredastheadditionalamountexpectedtobepaidas a result of the unused entitlement that has accumulated at the Statement of Financial Position date.

(ii) Definedcontributionplans

Asrequiredbylaw,companiesinMalaysiamakecontributionstothestatepensionscheme,theEmployeesProvidentFund(“EPF”).Suchcontributionsarerecognisedasanexpenseintheincomestatementintheperiodtowhichtheyrelate.Theothersubsidiarycompaniesalsomakecontributiontotheirrespectivecountries’statutorypensionschemes.

Finance leases

Assetsfinancedbyleasingarrangements,whichgiverightsapproximatingtoownership,aretreatedasiftheyhadbeenpurchased outright and are capitalised and depreciated over the shorter of the estimated useful life of the assets and the periodoftheleases.Thecapitalelementoffuturerentalsistreatedasaliabilityandtheinterestelementischargedagainstprofitsinproportiontothebalancesoutstanding.Therentalcostsofallotherleasedassetsarechargedagainstprofitsonastraight-linebasisovertheleaseterm.

Operating leases

Leases inwhichasignificantportionof therisksandrewardsofownershipareretainedby the lessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofincentivesreceivedfromthelessor)arechargedtotheincome statement.

Functional currency translation

(i) Functionalandpresentationcurrency

ItemsincludedinthefinancialstatementsofeachoftheGroup’sentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(thefunctionalcurrency).ThefunctionalcurrencyoftheGroupisRinggitMalaysia(RM).TheconsolidatedfinancialstatementsarepresentedinPoundSterling(£),whichistheCompany’spresentational currency as this is the currency used in the country in which the entity is listed.


32


Functional currency translation (continued)

AssetsandliabilitiesaretranslatedintoPoundSterling(£)atforeignexchangeratesrulingattheStatementofFinancialPositiondate.ResultsandcashflowsaretranslatedintoPoundSterling(£)usingaverageratesofexchangefortheperiod.

(ii) Transactionsandbalances

Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from thetranslationatyear-endexchangeratesofmonetaryassetsand liabilitiesdenominated in foreigncurrenciesarerecognised in the income statement.

Thefinancialinformationsetoutbelowhasbeentranslatedatthefollowingrates:

Exchange rate (RM: £) At Statement of Financial Average for Position date year Year ended 31 December 2010 4.78 4.96 Year ended 31 December 2009 5.50 5.53

Taxation

Taxationontheincomestatementforthefinancialperiodcomprisescurrentanddeferredtax.Currenttaxistheexpectedamountoftaxespayableinrespectofthetaxableprofitforthefinancialperiodandismeasuredusingthetaxratesthathavebeen enacted at the Statement of Financial Position date.

Deferred tax is recognised on the liability method for all temporary differences between the carrying amount of an asset or liability in the Statement of Financial Position and its tax base at the Statement of Financial Position date. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhich thedeductible temporarydifferences,unused tax lossesandunused taxcreditscanbeutilised. Deferred tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial recognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realisedortheliabilityissettled,basedonthetaxratesthathavebeenenactedorsubstantivelyenactedbytheStatementofFinancialPositiondate.ThecarryingamountofadeferredtaxassetisreviewedateachStatementofFinancialPositiondateandisreducedtotheextentthatitbecomesprobablethatsufficientfuturetaxableprofitwillbeavailable.

Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity, inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillornegativegoodwill.



33


Intangible assets

(i) Researchanddevelopmentcosts

All research costs are recognised in the income statement as incurred.

Expenditure incurred on projects to develop new products is capitalised and deferred only when the Group can demonstrate the technical feasibilityofcompleting the intangibleassetso that itwillbeavailable foruseorsale, its intention tocompleteanditsabilitytouseorselltheasset,howtheassetwillgeneratefutureeconomicbenefits,theavailabilityofresources to complete the project and the ability to measure reliably the expenditure during the development. Product development expenditures which do not meet these criteria are expensed when incurred.

Developmentcosts,consideredtohavefiniteusefullives,arestatedatcostlessanyimpairmentlossesandareamortisedthroughotheroperatingexpensesintheincomestatementusingthestraight-linebasisoverthecommerciallivesoftheunderlyingproductsnotexceedingfiveyears.Impairmentisassessedwheneverthereisanindicationofimpairmentand the amortisation period and method are also reviewed at least at each Statement of Financial Position date.

(ii) Goodwillonconsolidation

Goodwillacquiredinabusinesscombinationisinitiallymeasuredatcost,representingtheexcessofthepurchasepriceovertheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilities.

Following the initial recognition,goodwill ismeasuredatcost lessaccumulated impairment losses.Goodwill isnotamortisedbutinstead,itisreviewedforimpairmentannuallyormorefrequentwhenthereisobjectiveevidencethatthecarryingvaluemaybeimpaired,inaccordancewiththeaccountingpolicydisclosedinimpairmentofassets.

Gains or losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Impairment of assets

Thecarryingamountsofassetsarereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.

Ifanysuchindicationexiststhentheasset’srecoverableamountisestimated.Forgoodwillthathasanindefiniteusefullife,recoverableamountisestimatedateachreportingdateormorefrequentlywhenindicationsofimpairmentareidentified.

Animpairment lossisrecognisedif thecarryingamountofanassetor itscash-generatingunitexceedsitsrecoverableamountunlesstheassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossisrecogniseddirectlyagainstany revaluation surplus for the asset to the extent that the impairment loss does not exceed the amount in the revaluation surplusforthatsameasset.Acash-generatingunitisthesmallestidentifiableassetgroupthatgeneratescashflowsthatare largely independent from other assets and groups. Impairment losses are recognised in the income statement in the periodinwhichitarises.Impairmentlossesrecognisedinrespectofcash-generatingunitsareallocatedfirsttoreducethecarrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (groupofunits)onaproratabasis.


34


Impairment of assets (continued)

Therecoverableamountofanassetorcash-generatingunitisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.

Impairment loss on goodwill is not reversed in a subsequent period. An impairment loss for an asset other than goodwill is reversedif,andonlyif,therehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Thecarryingamountofanassetotherthangoodwillisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Areversalofimpairmentlossforanassetotherthangoodwillisrecognisedintheincomestatementunlesstheassetiscarriedatrevaluedamount,inwhichcase,suchreversalistreatedasarevaluationincrease.

Property, plant and equipment

(i) Recognitionandmeasurement

Property,plantandequipmentarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses.

Cost includesexpendituresthataredirectlyattributable to theacquisitionof theasset.Thecostofself-constructedassets includes thecostofmaterialsanddirect labour,anyothercostsdirectlyattributable tobringing theasset toworkingconditionforitsintendeduse,andthecostsofdismantlingandremovingtheitemsandrestoringthesiteonwhich they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

Thecostofproperty,plantandequipmentrecognisedasaresultofabusinesscombinationisbasedonfairvalueatacquisitiondate.Thefairvalueofpropertyistheestimatedamountforwhichapropertycouldbeexchangedonthedateof valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein thepartieshadeachactedknowledgeably,prudentlyandwithoutcompulsion.Thefairvalueofotheritemsofplantandequipment is based on the quoted market prices for similar items.

Whensignificantpartsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitems(majorcomponents)ofproperty,plantandequipment.

(ii) Subsequentcosts

Thecostofreplacingpartofanitemofproperty,plantandequipmentisrecognisedinthecarryingamountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthepartwillflowtotheGroupanditscostcanbemeasuredreliably.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedintheincomestatement as incurred.



35


Property, plant and equipment (continued)

(iii)Depreciation

Depreciationisrecognisedintheincomestatementonastraight-linebasisovertheestimatedusefullivesofproperty,plantandequipment.Leasedassetsaredepreciatedovertheshorteroftheleasetermandtheirusefullives.Property,plant and equipment under construction are not depreciated until the assets are ready for their intended use.

Theestimatedusefullivesforthecurrentandcomparativeperiodsareasfollows:

Motor vehicles 5 yearsElectronic Data Capture equipment 10 yearsComputer equipment 5 yearsComputer software 10 yearsFurnitureandfittings 10yearsOfficeequipment 10yearsRenovation 10 years

Thedepreciableamountisdeterminedafterdeductingtheresidualvalue.

Depreciationmethods,usefullivesandresidualvaluesarereassessedateachfinancialperiodend.

Upondisposalofanasset,thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetsischargedorcreditedtotheincomestatement.Ondisposalofarevaluedasset,theattributablerevaluationsurplusremaining in the revaluation reserve is transferred to the distribution reserve.

Investments

Investments in subsidiary companies are stated at cost less any provision for impairment.

Inventories

Inventoriesarevaluedatthelowerofcostandnetrealisablevalueandaredeterminedonthefirst-in-first-outmethod,aftermaking due allowance for obsolete and slow moving items. Net realisable value is based on estimated selling price in the ordinary course of business less the costs of completion and selling expenses.

Trade and other receivables

Tradeandotherreceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredattheircostwhenthecontractualrighttoreceivecashorotherfinancialassetsfromanotherentityisestablished.

A provision for doubtful debts is made when there is objective evidence that the Group will not be able to collect all amounts dueaccordingtotheoriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisationanddefaultordelinquencyinpaymentsareconsideredindicatorsthatatrade and other receivables are impaired.


36


Cash and cash equivalents

Cashandcashequivalentsincludecashinhand,depositsheldatcallwithbanks,othershort-termhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlesswhichhaveaninsignificantriskofchangesinvalueandbankoverdrafts.ForthepurposeofStatementofCashFlows,cashandcashequivalentsarepresentednetofbankoverdrafts. Non-current assets held for sale

Non-currentassetsareclassifiedasheldforsaleandstatedatthelowerofcarryingamountandfairvaluelesscosttosellif theircarryingamountwillberecoveredprincipallythroughasaletransactionratherthanthroughcontinuinguse.Thiscondition is regarded a met only when the sale is highly probable and the asset is available for immediate sale in its present condition subject only to terms that are usual and customary.

Trade and other payables

Tradeandotherpayablesarerecognisedinitiallyatfairvalueoftheconsiderationtobepaidinthefutureforgoodsandservices received.

Borrowing costs

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets,whichareassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,arecapitalisedaspartofthecostofthoseassets,untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.

Whentheborrowingsaremadespecificallyforthepurposeofobtainingaqualifyingasset,theamountofborrowingcostseligible for capitalisation is the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of funds drawndown from those borrowings. Whentheborrowingsaremadegenerally,andusedforthepurposeofobtainingaqualifyingasset,theborrowingcostseligible for capitalisation are determined by applying a capitalisation rate which is weighted on the borrowing costs applicable totheGroup’sborrowingsthatareoutstandingduringthefinancialperiod,otherthanborrowingsmadespecificallyforthepurpose of acquiring another qualifying asset.

Borrowingcostswhicharenoteligibleforcapitalisationarerecognisedasanexpenseintheprofitorlossintheperiodinwhich they are incurred.

Equity instruments

InstrumentsthatevidencearesidualinterestintheassetsoftheGroupafterdeductingallofitsliabilitiesareclassifiedasequity instruments. Issued equity instruments are recorded at proceeds received net of direct issue costs.

Ordinary shares are classifiedas equity. Incremental costs directly attributable to the issueof new shares or options areshowninequityasadeduction,netofvalueaddedtax,fromtheproceeds.



37


Financial instruments

FinancialinstrumentscarriedontheStatementofFinancialPositionincludecashandbankbalances,deposits,investments,receivables,payablesandborrowings.FinancialinstrumentsarerecognisedintheStatementofFinancialPositionwhenthe Group has become a party to the contractual provisions of the instrument.

Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement.Interest,dividendsandgainsandlossesrelatingtoafinancialinstrumentclassifiedasaliability,arereportedasanexpenseor income.Distributions toholdersoffinancial instrumentsclassifiedasequityarechargeddirectly toequity.Financialinstruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.

TheparticularrecognitionmethodadoptedforfinancialinstrumentsrecognisedontheStatementofFinancialPositionis

disclosed in the individual accounting policy statements associated with each item.

Share based payments Charges for employees services received in exchange for share based payments have been made for all options granted

inaccordancewithIFRS2“ShareBasedPayments”optionsgrantedundertheGroup’semployeeshareschemeareequitysettled.ThefairvalueofsuchoptionshasbeencalculatedusingaBlack-scholesmodel,baseduponpubliclyavailablemarketdata,andischargedtotheprofitorlossoverthevestingperiod.

3. FINANCIAL INSTRUMENTS

(a) Financial risk management objectives and policies

TheGroupandtheCompany’sfinancialriskmanagementpolicyistoensurethatadequatefinancialresourcesareavailableforthedevelopmentoftheGroupandoftheCompany’soperationswhilstmanagingitsfinancialrisks,includinginterestraterisk,creditrisk,foreigncurrencyexchangerisk,liquidityandcashflowriskandcapitalrisk.TheGroupandtheCompanyoperateswithinclearlydefinedguidelinesthatareapprovedbytheBoardandtheGroup’spolicyisnotto engage in speculative transactions.

(b) Interest rate risk

Cashflowinterestrateriskistheriskthatthefuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.Fairvalueinterestrateriskistheriskthatthevalueofafinancialinstrumentwillfluctuateduetochangesinmarketinterestrates.AstheGrouphasnosignificantinterest-bearingfinancialassets,theGroup’sincomeandoperatingcashflowsaresubstantiallyindependentofchangesinmarketinterestrates.

TheGroup’sinterestrateriskarisesprimarilyfrominterest-bearingborrowings.BorrowingsatfloatingratesexposetheGrouptocashflowinterestraterisk.BorrowingsobtainedatfixedratesexposetheGrouptofairvalueinterestraterisk.


38

3.

FIN

AN

CIA

L IN

STR

UM

ENTS

(Con

tinue

d)

Thefollowingtablessetoutthecarryingam

ounts,theeffectiveinterestra

tesasattheStatementofF

inancialPositiondateandtheremaining

maturitiesoftheGroup’sfinancialinstrumentsthatareexposedtointerestraterisk:

At 3

1 D

ecem

ber 2

010

Fixedrate:

Fixe

d de

posi

tFi

nanc

e le

ases

Floatingrate:

Bank

ers’

acc

epta

nce

Lette

r of c

redi

tsTrustreceipts

At 3

1 D

ecem

ber 2

009

Fixedrate:

Fixe

d de

posi

tTermloans

Fina

nce

leas

es

Floatingrate:

Bank

ers’

acc

epta

nce

Termloans

Tota

l £

467,777

(115,420)

(1,101,700)

(536,420)

(417,216)

343,414

(27,489)

(80,028)

(1,006,345)

(138,954)

4-5

year

s £ -(19,366) - - - - -

(12,531) - -

2-3

year

s £ -(17,282) - - - - -

(11,120) - -

With

in1

year £

467,777

(15,197)

(1,101,700)

(536,420)

(417,216)

343,414

(27,489)

(9,710)

(1,006,345)

(138,954)

Mor

e th

an5

year

s £ -(29,012) - - - - -

(24,427) - -

3-4

year

s £ -(18,324) - - - - -

(11,825) - -

1-2

year

s £ -(16,239) - - - - -

(10,415) - -

Effe

ctiv

eIn

tere

st R

ate %

2.58

3.08

5.22

2.44

2.79

2.10

8.58

2.88

6.88

7.30

Not

e

17 21 21 21 21 17 21 21 21 21



39

3. FINANCIAL INSTRUMENTS (Continued)

(c) Credit risk

TheGroup’sandtheCompany’sexposuretocreditriskarisesmainlyfromreceivables.Receivablesaremonitoredonanongoing basis via management reporting procedure and action is taken to recover debts when due. At each Statement ofFinancialPositiondate,therewasnosignificantconcentrationofcreditrisk.ThemaximumexposuretocreditriskfortheGroupandtheCompanyisthecarryingamountofthefinancialassetsshownintheStatementofFinancialPosition.

(d) Foreign currency exchange risk

TheGroupandtheCompanyisexposedtoforeigncurrencyriskonsales,purchasesandborrowingsthataredenominatedinacurrencyotherthanRinggitMalaysia.ThecurrencygivingrisetothisriskisprimarilyUSdollars.TheGroupandthe Company maintains a natural hedge that minimises the foreign exchange exposure by matching foreign currency income with foreign currency costs.

TheGroupdoesnotconsideritnecessarytoenterintoforeignexchangecontractsinmanagingitsforeignexchangeriskresultingfromcashflowsfromtransactionsdenominatedinforeigncurrency,giventhenatureofthebusinessforthe time being.

ThenetunhedgedfinancialassetsoftheGroupthataredenominatedinitsfunctionalcurrencyareasfollows:

Net Financial Asset Held in Non-Functional Currency

Indonesian Rupiah US Dollars Total £ £ £

Group At 31 December 2010 Tradereceivables 49,896 95,144 145,040 Group At 31 December 2009 Tradereceivables 8,594 - 8,594

(e) Liquidity and cash flow risks

TheGroupand theCompanyseeks toachieveaflexibleandcosteffectiveborrowingstructure toensure that theprojected net borrowing needs are covered by available committed facilities. Debt maturities are structured in such a way to ensure that the amount of debt maturing in any one year is within the Group’s and the Company’s ability to repayand/orrefinance.

TheGroupandtheCompanyalsomaintainsacertainlevelofcashandcashconvertibleinvestmentstomeetitsworkingcapital requirements.


40

3. FINANCIAL INSTRUMENTS (Continued)

(f) Capital risk

TheGroup’sandtheCompany’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sandtheCompany’sabilitytocontinueasagoingconcerninordertoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.Inordertomaintainoradjustthecapitalstructure,theGroupandtheCompanymayadjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issue new shares or sell assets to reduce debt.



41

4. EMPLOYEES AND DIRECTORS

EMPLOYEESWages,salariesandbonusesSocial security contributionContributiontodefinedcontributionplanOtherstaffrelatedexpenses

Less:Capitalisedindevelopmentcosts(Note11)

DIRECTORSFeesWages,salariesandbonusesSocial security contributionContributiontodefinedcontributionplanTotalremunerationLess:Capitalisedindevelopmentcosts(Note11)

5. SEGMENTAL ANALYSIS

TheGroup’sactivitiesaretreatedasasingleclassofbusiness,allarisingfromgoodsandservicesprovidedintheFarEast.Accordingly,nosegmentalanalysisofrevenues,profits,assetsandliabilitiesisavailableforpresentation.

6. FINANCE COSTS

Bankers’ acceptance interestTermloansinterestFinance lease interest Bank guarantee interestLetter of credit interestTrustreceiptinterest

2009£

52,69116,0742,292

---

71,057

2010£

56,7733,1248,5253,3186,2975,606

83,643

Group

Group

2009£

312,2433,58833,08415,116

364,031-

364,031

106,22169,706

1497,743

183,819-

183,819

2010£

430,5136,02586,43324,421547,392

(189,861)

357,531

115,85577,733

1678,624

202,379(55,180)

147,199


42

7. LOSS BEFORE TAX

Thelossbeforetaxisstatedaftercharging/(crediting):

Auditors’ remuneration Employeebenefitsexpense(excludingDirectors’remuneration)(Note4)Directors’remuneration(Note4)Depreciation(Note12)Amortisationofintangibleassets(Note11)Amortisationofdevelopmentcosts(Note11)Property,plantandequipmentwrittenoffDevelopment costs written offInventories written offBad debts written offDeposits written offOperatingleaseexpenseWaiver of debtInterest incomeRental incomeGrant incomeProfitondisposalofproperty,plantandequipment(Gain)/Lossonforeignexchange-realised-unrealised

IncludedintheauditfeefortheGroupisanamountof£13,700inrespectoftheCompany.

2009£

14,345364,031183,819149,64669,08494,7658,08670,956

-42,360

-62,563(813)

(1,902)(3,979)(54,254)

-

(10,218)218

2010£

20,473357,531147,199181,70276,94384,53612,927

-455

62,8893,34879,425

-(10,956)(6,746)

-(38,075)

(100,996)-

Group



43

8. TAX

Current tax expense:UK corporation tax for the yearForeign tax

A reconciliation of income tax expense applicable to loss before tax at the statutory income tax rate to income tax expense attheeffectiveincometaxrateoftheGroupisasfollows:

Loss before tax

TaxationatUKCorporationtaxrateof28%(2009:28%)Effect of different tax rates in other countriesPioneer status tax incentiveEffect of expenses not deductible for taxEffect of utilisation of previous unrecognised unabsorbed capital allowanceDeferred tax not recognised in respect of current year’s tax losses and unabsorded capital allowancesTemporarydifferencesinrespectofproperty,plantandequipmentnotrecognisedEffect of development costs capitalised deductible for tax purposes

Taxexpensefortheyear

Currentincometaxiscalculatedattheweightedaveragetaxrateof28%(2009:28%).

Thedirectsubsidiarycompany,MobilityOneSdn.Bhd.,wasgrantedPioneerStatusbytherelevantauthoritiesforanadditionalperiodoffiveyearseffectivefrom26April2010to25April2015.

Group

2009£

(917,343)

(256,856)20,319(13,564)97,090

-

94,70358,308

-

-

2010£

(206,079)

(57,703)930

-75,454(21,820)

8,22175,209(71,252)

9,039

Group

2009£

--

-

2010£

-9,039

9,039


44

8. TAX (Continued)

Asat31December2010,theunrecogniseddeferredtaxassetsoftheGroupareasfollows:

Unabsorbed tax lossesUnabsorbed capital allowancesTaxabletemporarydifferences

Thepotentialnetdeferred taxassetsamounting to£347,681(2009:£82,442)hasnotbeenrecognised in thefinancialstatementsbecauseitisnotprobablethatfuturetaxableprofitwillbeavailableagainstwhichthesubsidiarycompanycanutilisedthebenefits.

Theavailabilityoftheunusedtaxlossesandunabsorbedcapitalallowancesforoffsettingagainstfuturetaxableprofitsofthe subsidiary company is subject to no substantial changes in shareholdings of the subsidiary company under Section 44(5A)and(5B)ofIncomeTaxAct,1967.

9. LOSS OF COMPANY

TheprofitorlossoftheCompanyisnotpresentedaspartofthesefinancialstatements.TheCompany’slossforthefinancialyearwas£43,042(2009:£440,533).

10. EARNINGS PER SHARE

Consolidatedlossaftertaxation(£)

Weighted average number of shares in issueFully diluted weighted average number of shares in issue

Basicearningspershare(pence)Dilutedearningspershare(pence)

Thebasicearningspershareiscalculatedbydividingthelossof£215,653(2009:lossof£916,220)attributabletoordinaryshareholdersbytheweightedaveragenumberofordinarysharesoutstandingduringtheyear,whichis93,574,951(2009:79,934,951).

Thedilutedearningspershareiscalculatedusingtheweightedaveragenumberofsharesadjustedtoassumetheconversionofalldilutivepotentialordinaryshares.Fortheyearended31December2010,thedilutedearningspershareisequivalentto the basic earnings per share as the exercise price of the share options is above the current market price.

2009

(916,220)

79,934,95179,934,951

(1.15)(1.15)

2010

(215,653)

93,574,95193,574,951

(0.23)(0.23)

Group

2009£

45,60936,833

-

82,442

2010£

139,520208,161

-

347,681

Group



45

11. INTANGIBLE ASSETS

GROUP31 December 2010

COSTAt 1 January 2010AdditionsWritten offForeign exchange difference

At 31 December 2010

DEPRECIATIONAt 1 January 2010Charge for the periodWritten offForeign exchange difference

At 31 December 2010

NET CARRYING AMOUNTAt 31 December 2010

GROUP31 December 2009

COSTAt 1 January 2009AdditionsWritten offForeign exchange difference

At 31 December 2009

DEPRECIATIONAt 1 January 2009Charge for the periodWritten offForeign exchange difference

At 31 December 2009

NET CARRYING AMOUNTAt 31 December 2009

Total£

2,318,671285,009

-359,263

2,962,943

489,271161,479

-79,687

730,437

2,232,506

Total£

2,671,895-

(109,163)(244,061)

2,318,671

399,348163,849(38,207)(35,719)

489,271

1,829,400

Development Costs

£

381,535285,009

-68,228

734,772

119,09684,536

-21,127

224,759

510,013

Development Costs

£

540,538-

(109,163)(49,840)

381,535

68,47594,765(38,207)(5,937)

119,096

262,439

Goodwill on consolidation

£

1,242,603--

186,689

1,429,292

----

-

1,429,292


£

1,367,189--

(124,586)

1,242,603

----

-

1,242,603

Software£

694,533--

104,346

798,879

370,17576,943

-58,560

505,678

293,201

Software£

764,168--

(69,635)

694,533

330,87369,084

-(29,782)

370,175

324,358


46

11. INTANGIBLE ASSETS (Continued)

Includedindevelopmentcostsincurredduringthefinancialyearare:-

Employeebenefitsexpenses(Note4)Directors’remuneration(Note4)Rental of premises

TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired,byconsideringthenetpresentvalueofdiscountedcashflowsforecasts.Ifanindicationexistsanimpairmentreviewiscarriedout.Attheyearend,therewasnoindicationofimpairmentofthevalueofgoodwillonconsolidationorofdevelopmentcosts.


(a) Impairmenttestingforgoodwillonconsolidation

Goodwill on consolidation has been allocated for impairment testing purposes to the individual entities which is also the cash-generatingunits(“CGU”)identified.

(b) Keyassumptionsusedtodeterminerecoverableamount

TherecoverableamountofaCGUisdeterminedbasedonvalueinusecalculationsusingcashflowprojectionsbasedonfinancialbudgetsapprovedbytheDirectorscoveringa5yearsperiod.Theprojectionsarebasedontheassumptionthat the Group can realise projected sales. A prudent approach has been applied with no residual value being factored into these calculations. If the projected sales do not materialise there is a risk that the total value of the intangible assets shownabovewouldbeimpaired.Apre-taxdiscountrateof8.50%perannumwasappliedtothecashflowprojections,aftertakingintoconsiderationtheGroup’scostofborrowings,theexpectedrateofreturnandvariousrisksrelatingtothe CGU.

Duringthefinancialyear,theGroupdidnotrecogniseanyimpairmentlossinrespectofthegoodwillonconsolidation.AsignificantproportionofgoodwillonconsolidationrelatestotheacquisitionofNetossSdn.Bhd.whichisaCGUandhasacarryingamountof£1,486,174(2009:£4,391,072).It'srecoverableamounthasbeendeterminedbasedonvalueinuseusingcashflowprojectionsandkeyassumptionsasdescribedin(b)above.

Development costs

Developmentcostswillnotbeamortisediftheproductisstillinitsdevelopmentphase.Theamortisationofthedevelopmentcostsisover5yearsperiod,whichintheopinionoftheDirectorsisadequate.

2009£

---

2010£

189,86155,180143,952

Group



47

12.

PRO

PER

TY, P

LAN

T A

ND

EQ

UIP

MEN

T

Gro

up

31 D

ecem

ber 2

010

CO

ST

At 1

Jan

uary

201

0Ad

ditio

nsW

ritte

n of

fFo

reig

n ex

chan

ge d

iffer

ence

At 3

1 D

ecem

ber 2

010

DEP

REC

IATI

ON

At 1

Jan

uary

201

0C

harg

e fo

r the

per

iod

Writ

ten

off

Fore

ign

exch

ange

diff

eren

ce

At 3

1 D

ecem

ber 2

010

NET

CA

RRY

ING

AM

OU

NT

At 3

1 D

ecem

ber 2

010

Tota

l £

1,381,767

74,884

(17,685)

209,785

1,648,751

393,303

181,702

(4,759)

65,861

636,107

1,012,644

Offi

ce

equi

pmen

t £

27,070 87

7 -4,100

32,047

9,400

3,077

-

1,529

14,006

18,041

Com

pute

r so

ftwar

e £

659,699

640 -

99,136

759,475

135,375

73,256-

23,143

231,774

527,701

Elec

tron

ic

Dat

a C

aptu

re

equi

pmen

t £

313,654

25,137-

48,085

386,876

99,754

35,827-

16,358

151,939

234,937

Ren

ovat

ion £

57,275

2,477

(17,685)

8,023

50,090

15,365

6,587

(4,759)

2,376

19,569

30,521

Furn

iture

an

d fit

tings £

65,676

1,903 -

9,940

77,519

19,182

7,442

-

3,168

29,792

47,727

Com

pute

r eq

uipm

ent £

160,209

5,100 -

24,265

189,574

103,863

26,728

-

16,628

147,219

42,355

Mot

orVe

hicl

es £

98,184

38,750-

16,236

153,170

10,364

28,785-

2,659

41,808

111,362


48

12.

PRO

PER

TY, P

LAN

T A

ND

EQ

UIP

MEN

T (C

ontin

ued)

Gro

up

31 D

ecem

ber 2

009

CO

ST

At 1

Jan

uary

200

9Ad

ditio

nsW

ritte

n of

fFo

reig

n ex

chan

ge d

iffer

ence

At 3

1 D

ecem

ber 2

009

DEP

REC

IATI

ON

At 1

Jan

uary

200

9C

harg

e fo

r the

per

iod

Writ

ten

off

Fore

ign

exch

ange

diff

eren

ce

At 3

1 D

ecem

ber 2

009

NET

CA

RRY

ING

AM

OU

NT

At 3

1 D

ecem

ber 2

009

Tota

l £

1,378,366

142,493

(13,415)

(125,677)

1,381,767

273,102

149,646

(5,329)

(24,117)

393,302

988,465

Offi

ce

equi

pmen

t £

29,623

3,828

(3,661)

(2,720)

27,070

8,848

2,815

(1,465)

(798)

9,400

17,670

Com

pute

r so

ftwar

e £

724,884

871

-

(66,056)

659,699

76,402

65,585

-

(6,612)

135,375

524,324

Elec

tron

ic

Dat

a C

aptu

re

equi

pmen

t £

332,619

11,345-

(30,310)

313,654

75,404

31,055-

(6,705)

99,754

213,900

Ren

ovat

ion £

60,297

7,465

(4,966)

(5,521)

57,275

12,751

5,743

(1,987)

(1,143)

15,364

41,911

Furn

iture

an

d fit

tings £

72,855

3,873

(4,390)

(6,662)

65,676

15,470

6,806

(1,712)

(1,382)

19,182

46,494

Com

pute

r eq

uipm

ent £

158,088

16,927

(398)

(14,408)

160,209

84,227

27,333

(165)

(7,532)

103,863

56,346

Mot

orVe

hicl

es £ -98,184- -

98,184

-10,309-

55

10,364

87,820



49

12. PROPERTY, PLANT AND EQUIPMENT (Continued)

(a) During thefinancial year, theGroupacquiredproperty,plantandequipmentataggregatecostsof£74,884 (2009:£142,493)ofwhich£34,806(2009:£84,689)wasacquiredbymeansoffinanceleasesarrangements.Cashpaymentsof£40,078(2009:£57,804)weremadebytheGrouptopurchaseproperty,plantandequipment.

(b) Includedinproperty,plantandequipmentoftheGrouparemotorvehicleswithnetcarryingamountsof£111,362(2009:£87,820)heldunderfinanceleasesarrangements.

13. INVESTMENT IN SUBSIDIARY COMPANIES

COSTAt1January/31December

2009£

2,040,930

2010£

2,040,930

Company

Name of Subsidiary Company

MobilityOneSdn.Bhd.

Direct subsidiary companies of MobilityOne Sdn. Bhd.

Netoss Sdn. Bhd.

Pay Station Sdn. Bhd.

PT.MobilityOneIndonesia

Country of incorporation

Malaysia

Malaysia

Malaysia

Indonesia

EffectiveOwnership Interest

2010 2009 (%) (%) 100 100

100 100 100 100

95 95

Principal Activities

Provision of e-Channel products andservices,technologymanagedservicesand solution sales and consultancy

Provision of solution sales and services

Dormant

Provision of e-Channel products andservices,technologymanagedservicesand solution sales and consultancy


50

14. INVENTORIES

At Cost: Air timeSoftwareHardware

15. TRADE AND OTHER RECEIVABLES

Tradereceivables-Thirdparties

Otherreceivables-Deposits-Prepayments-Sundryreceivables-Amountduefromsubsidiarycompanies

Totaltradeandotherreceivables

(a) TheGroup’sandtheCompany’snormaltradecredittermsrangefrom30to60days(2009:30to60days).Othercredit terms are assessed and approved on a case to case basis.

Ageing analysis Anageinganalysisoftradereceivablesthatareneitherindividuallynorcollectivelyconsideredtobeimpairedisasfollows:

Neither past due nor impaired

1-2monthspastdue 3-12monthspastdue More than 12 months past due

2009£

241,855486,239

-

728,094

2010£

551,982499,065298,011

1,349,058

Group

2009£

210,804

26,95087,3898,594

122,933

333,737

2010£

440,119

404,61113,431

-418,042

858,161

Group

2009£

-

---

1,155,1281,155,128

1,155,128

2009£

333,737

11,90756,66713,402

-81,976

415,713

2010£

-

---

1,190,8201,190,820

1,190,820

2010£

858,161

297,79911,07791,091

-399,967

1,258,128

CompanyGroup



51

15. TRADE AND OTHER RECEIVABLES (Continued)

Receivables that were neither past due nor impaired relate to a wide range of customers for whom there was no recent history of default.

Receivables that were past due but not impaired relate to a number of independent customers that have a good track record withtheGroup.Basedonpastexperience,managementbelievesthatnoimpairmentallowanceisnecessaryinrespectofthesebalancesastherehasnotbeenasignificantchangeincreditqualityandthebalancesarestillconsideredfullyrecoverable.

(b) Relatedpartybalances

Theamountduefromsubsidiarycompaniesisunsecured,non-interestbearingandisrepayableondemand.

16. SHORT TERM INVESTMENTS

Financialassetsatfairvaluethroughprofitorloss: Unittrust,quotedinMalaysia

17. CASH AND CASH EQUIVALENTS

Cash in hand and at banksFixed deposits with licensed banks

Cash and cash equivalents

TheabovefixeddepositshavebeenpledgedtolicensedbanksassecuritiesforcreditfacilitiesgrantedtotheGroupasdisclosedinNote21tothefinancialstatements.

TheGroup’seffectiveinterestratesandmaturitiesofdepositsare2.58%(2009:2.1%)and12months(2009:12month)respectively.

2009£

-

2010£

1,778

Group

2009£

2,043-

2,043

2010£

2,082-

2,082

Company2009

£

56,890343,414

400,304

2010£

264,659467,777

732,436

Group


52

18. NON-CURRENT ASSETS HELD FOR SALE

Property,plantandequipmentPrepaid lease payment

Depositsclassifiedasheldforsale(Note19)Disposals

MobilityOneSdn.Bhd.enteredintoaSaleandPurchaseAgreementtodisposeofitslandandbuildingforadisposalpriceof£454,005.Asatthedateofthisreport,thedisposalwascompleted.

19. TRADE AND OTHER PAYABLES

Tradepayables-Thirdparties

Otherpayables-Deposits-Accruals-Sundrypayables

Depositclassifiedasheldforsale(Note18)

TotaltradeandotherpayablesAdd:AmountduetoDirectors(Note20)Add:Loansandborrowings(Note21)

Totalfinancialliabilitiescarriedatamortisedcost

a) TheGroup'snormaltradecredittermsrangefrom30to90days(2009:30to90days).

b) Other payable are non-interest bearing.Other payables are normally settled on an average terms of 60 days (2009:60days).

c) Theamountduetoholdingcompanyisunsecured,non-interestbearingandispayableondemand.

2009£

177,111198,331

375,442(71,090)

-

304,352

2010£

177,111198,331

375,442-

(375,442)

-

Group

2009£

-

-13,635

91414,549

-14,549

14,54929,047

-

43,596

2009£

135,470

71,69531,614281,873385,182

(71,090)314,092

449,56229,047

1,252,816

1,731,425

2010£

-

-12,66015,60628,266

-28,266

28,26694,103

-

122,369

2010£

699,421

54,75455,011211,093320,858

-320,858

1,020,279238,698

2,170,756

3,429,733

CompanyGroup



53

20. AMOUNT DUE TO DIRECTORS

Theseareunsecured,interestfreeandrepayableondemand.

21. FINANCIAL LIABILITIES – LOANS AND BORROWINGS

Non-CurrentSecured:Financeleasepayables(Note22)

CurrentSecured:TermloansBankers’ acceptanceFinanceleasepayables(Note22)Letter of creditsTrustreceipts

Total BorrowingsSecured:TermloansBankers’ acceptanceFinanceleasepayables(Note22)Letter of creditsTrustreceipts

Thebankers’acceptanceandtermloansfromlicensedbanksaresecuredbythefollowing:(a) pledgeoffixeddepositsofthesubsidiarycompany(Note17);(b) personalguaranteebyaDirector;and(c) corporateguaranteebytheCompany.

Group2009

£

70,318

70,318

166,4431,006,345

9,710--

1,182,498

166,4431,006,345

80,028--

1,252,816

2010£

100,223

100,223

-1,101,700

15,197536,420417,216

2,070,533

-1,101,700115,420536,420417,216

2,170,756


54

21. FINANCIAL LIABILITIES – LOANS AND BORROWINGS (Continued)

TheeffectiveinterestratesoftheGroupfortheabovefacilitiesareasfollows:

TermloansBankers’ acceptanceLetter of creditsTrustreceipts

Thematurityofborrowings(excludingfinanceleases)isasfollows:

Within one year

OtherinformationonfinancialrisksofborrowingsaredisclosedinNote3.

2009£

1,172,788

1,172,788

2009%

7.516.88

--

2010£

2,055,336

2,055,336

2010%

-5.222.442.79

Group

Group



55

22. FINANCE LEASE PAYABLES

Minimumleasepayments: Not later than 1 year Later than 1 year but not later than 2 years Later than 2 years but not later than 5 years Later than 5 years

Less:Futurefinancecharges

Presentvalueoffinanceleaseliabilities

Presentvalueoffinanceleasepayments: Not later than 1 year Later than 1 year but not later than 2 years Later than 2 years but not later than 5 years Later than 5 years

Analysedas:Duewithin12months(Note21)Dueafter12months(Note21)

TheGrouphasfinanceleasecontractsforcertainmotorvehiclesasdisclosedonNote12(a).

OtherinformationonfinancialrisksoffinanceleasepayablesaredisclosedinNote3.

2009£

14,22314,22342,66926,03197,146(17,118)

80,028

9,71010,41535,47624,427

80,028

9,71070,318

80,028

2010£

21,42421,42464,27330,972138,093(22,673)

115,420

15,19716,23954,97229,012

115,420

15,197100,223

115,420

Group


56

23. CALLED UP SHARE CAPITAL

Authorised in MobilityOne Limited

At1January/31December

Issued and fully paid in MobilityOne Limited

At 1 JanuaryAt 8 December 2009 Issuance of shares

At 31 December

On8December2009,theCompanyissuedatotalof14,600,000ordinarysharesat2.5pencepershare.Accordingly,asaresultoftheaboveissuanceofshares,theissuedsharecapitaloftheCompanyincreasedto93,574,951ordinarysharesof 2.5 pence each.

2009£

10,000,000

1,974,374365,000

2,339,374

2010£

10,000,000

2,339,374-

2,339,374

Amount2009

400,000,000

78,974,95114,600,000

93,574,951

2010

400,000,000

93,574,951-

93,574,951

Number of ordinary shares of £0.025 each



57

24. COMPANY EQUITY INSTRUMENT

At 1 January 2010Deficitfortheyear

At 31 December 2010

At 1 January 2009DeficitfortheyearIssuance of shares

At 31 December 2009

25. REVERSE ACQUISITION RESERVE

TheacquisitionofMobilityOneSdn.Bhd.byMobilityOneLimited,whichwasaffectedthroughashareexchange,wascompletedon5July2007andresultedinMobilityOneSdn.Bhd.becomingawhollyownedsubsidiaryofMobilityOneLimited.Pursuanttoashareswapagreementdated22June2007theentireissuedandpaid-upsharecapitalofMobilityOneSdn.Bhd.wastransferredtoMobilityOneLimitedbyitsowners.Theconsiderationtotheownerswasthetransferof178,800,024existingordinarysharesandtheallotmentandissuancebyMobilityOneLimitedtotheownersof81,637,200ordinarysharesof2.5peach.Theacquisitionwascompletedon5July2007.TotalcostofinvestmentbyMobilityOneLimitedis£2,040,930,thedifferencebetweencostofinvestmentandMobilityOneSdn.Bhd.sharecapitalof£708,951hasbeentreatedasareverseacquisition reserve.

Total£

3,154,505(43,042)

3,111,463

3,230,038(440,533)365,000

3,154,505

Retained earnings

£

32,897(43,042)

(10,145)

473,430(440,533)

-

32,897

Share premium

£

782,234-

782,234

782,234--

782,234

Share capital£

2,339,374-

2,339,374

1,974,374-

365,000

2,339,374


58

26. RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM OPERATIONS

GROUPCash flow from operating activities

Loss before taxAdjustmentsfor: Profitondisposalofproperty,plantandequipment Depreciation Amortisation of intangible assets Amortisation of development costs Property,plantandequipmentwrittenoff Development costs written off Bad debts written off Inventories written off Deposit written off Waiver of debts Loss on foreign exchange – unrealised Interest paid Interest received

Operatingprofit/(loss)beforeworkingcapitalchanges

(Increase)/decreaseininventories Increase in receivables Increase/(decrease)inamountduetoDirectors Increase/(decrease)inpayables

Cash depleted in operations

COMPANYCash flow from operating activities

Loss before taxAdjustmentfor: (Gain)/lossonforeignexchange–unrealised

Operatinglossbeforeworkingcapitalchanges

Increase/(decrease)inpayables Increase/(decrease)inamountduetoDirectors Increase/(decrease)inamountduefromsubsidiarycompany

Cash depleted in operations

2009£

(917,343)

-149,64669,08494,7658,08670,95642,360

--

(813)218

71,057(1,902)

(413,886)

70,604(36,196)(77,206)(32,977)

(489,661)

(440,533)

239,807

(200,726)

(32,226)(57,202)(76,126)

(366,280)

2010£

(206,079)

(38,075)181,70276,94384,53612,927

-62,889

4553,348

--

83,643(10,956)

251,333

(511,569)(823,968)

214,861587,790

(281,553)

(43,042)

(165,947)

(208,989)

13,71765,056130,211

(5)



59

27. FINANCIAL COMMITMENTS

Capital commitment

Authorised and contracted for: Property,plantandequipment

28. RELATED PARTY TRANSACTIONS

Duringtheyear,MobilityOneSdn.Bhd.receivedadvances£86,850(2009:£115,918)fromacompanywhichisrelatedtoa Director.

AttheStatementofFinancialPositiondate,theGroupowedtheDirectors£238,698(2009:£29,047),theCompanyowedtheDirectors£94,103(2009:£29,047),MobilityOneSdn.Bhd.owedtheCompany£1,190,820(2009:£1,155,129),NetossSdn.Bhd.owedMobilityOneSdn.Bhd.£367,054(2009:£309,264),PayStationSdn.Bhd.owedMobilityOneSdn.Bhd.£4,183(2009:£541)andPT.MobilityOneIndonesiaowedMobilityOneSdn.Bhd.£617,346(2009:£19,445),MobilityOneSdn.Bhd.owedacompanywhichisrelatedtoaDirector£86,850(2009:£115,918).Theamountsowingtoorfromthesubsidiary companies are repayable on demand and are interest free.

29. ULTIMATE CONTROLLING PARTY

IntheopinionoftheDirectors,thereisnoultimatecontrollingpartyintheCompanyfortheyearended31December2010.

30. CONTINGENT LIABILITIES

Saveasdisclosedbelow,theGrouphasnocontingentliabilitiesarisinginrespectoflegalclaimsarisingfromtheordinarycourse of business and it is not anticipated that any material liabilities will arise from the contingent liabilities other than those provided for.

Limit of guaranteesCorporate guarantees given to licensed banks by a subsidiary company for

credit facilities granted to a third party

Amount utilisedBanker’s guarantee in favour of a third party

2009£

33,329

2010£

-

Group

2009£

1,109,090

83,626

2010£

21,645,022

373,455

Group


60

31. FOREIGN CURRENCY TRANSLATION RESERVE

Thesubsidiarycompanies’assetsandliabilitiesstatedintheStatementofFinancialPositionweretranslatedintoSterlingPound(£)usingtheclosingrateasattheStatementofFinancialPositiondateandtheincomestatementsweretranslatedinto£usingtheaveragerateforthatperiod.Allresultingexchangedifferencesaretakentotheforeigncurrencytranslationreserve within equity.

As at 1 JanuaryCurrency translation differences during the year due from subsidiary companies

As at 31 December

Theforeigncurrencytranslationreserveisusedtorecordexchangedifferencesarisingfromthetranslationofthefinancialstatements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It is also used to record the exchange differences arising from monetary items which form part of the Group’s net investment inforeignoperations,wherethemonetaryitemisdenominatedineitherthefunctionalcurrencyofthereportingentityortheforeign operation.

32. RETAINED EARNINGS

Retained earnings represents the cumulative earnings of the Group attributable to equity shareholders.

As at 1 JanuaryLoss for the year

As at 31 December

2009£

1,049,357(497,216)

552,141

2010£

552,141433,103

985,244

2009£

(523,216)(916,220)

(1,439,436)

2010£

(1,439,436)(215,653)

(1,655,089)

Group



61

33. SHARE BASED PAYMENTS

Duringtheyearended31December2007theGroupgrantedshareoptionsof7,416,558sharesat12.5p2,000,000eachtoDato’[email protected],SeahBoonChinandDerrickChiaKahWaiand1,416,558toHBCorporate.Nocharge has been made for the share based payments as it is not considered to be material.

Thedetailsoftheshareoptionsareasfollows:

Outstandingatbeginningofyear/Balancecarriedforward

ThefairvaluesoftheoptionsgrantedhavebeencalculatedusingBlack-Scholesmodelassumingtheinputsshownbelow:

Grant date 5 July 2007Share price at grant date 12.5pExercise price 12.5pOptionlifeinyears 5yearsRisk free rate 4.40%Expected volatility 40%Expected dividend yield 0%Fair value of options 2p

No options have been exercised or lapsed.

2009

12.5p

2010

12.5p

Exercise price2009

7,416,558

2010

7,416,558

NumberCompany


62

NOTICEISHEREBYGIVENTHATanAnnualGeneralMeetingofMOBILITYONE LIMITED (“Company”) will be held at 9.00 a.m.Malaysiatimeon22July2011atMalaysianPetroleumClub,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,Malaysia,andforthepurposeofconsideringand,ifthoughtfit,adoptingthefollowingresolutions,atthemeeting,orofanyadjournmentthereof:

ORDINARY RESOLUTIONS

1. THATtheCompany'saccountsandreportsoftheDirectorsandAuditorsfortheyearended31December2010beadopted.

2. THATDato’ShamsirbinOmarisre-electedasaDirector.

3. THATKjetilLanglandBohnisre-electedasaDirector.

4. THATJeffreysHenryLLPofFinsgate,5-7CranwoodStreet,EC1V9EELondon,UnitedKingdombereappointedasAuditors oftheCompany(inaccordancewithArticle33oftheArticlesofAssociationoftheCompany)toholdofficeuntiltheconclusion of the next general meeting.

5. THATtheDirectorsbeauthorisedtofixtheremunerationoftheAuditors.

BY ORDER OF THE BOARD

Dato’ Dr. Wan Azmi bin Ariffin Chairman

Dated:30June2011

Notes:

1 A member of the Company entitled to attend and vote at the above mentioned meeting is entitled to appoint a proxy to attend and,onapoll,tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.Aproxyneednotbeamember of the Company. A member may appoint more than one proxy to attend on the same occasion.

2 Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority(ifany)underwhichitissigned,oranotarially certifiedcopyofsuchpowerorauthority,shallbedepositedwiththeCompany’sregistrars,ComputershareInvestorServices (ChannelIslands)Limited,QueenswayHouse,HilgroveStreet,StHelier,JerseyJE11ES,ChannelIslands,oratsuchother placeasisspecifiedforthatpurposeinthenoticeofthemeetingorintheinstrumentofproxyissuedbytheCompanyatleast 24 hours before the time appointed for holding the meeting or adjourned meeting at which the person named in the instrument proposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,the instrument of proxy shall not be treated as valid.

3 Completion of the instrument appointing a proxy does not preclude a member from subsequently attending and voting at themeetinginpersonifhe/shesowishes.

4 Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedto theexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesof the Holders stand in the register of members of the Company.

5 AspermittedbyRegulation40(1)oftheCompanies(UncertificatedSecurities)(Jersey)Order1999,onlypersonsentered on the register of members of the Company not later than 48 hours before the time appointed for the meeting are entitled to attendand/orvoteatthemeetinginrespectofthenumberofsharesregisteredintheirnameatthattime.Changestoentries ontheregisterofmembersafterthattimewillbedisregardedindeterminingtherightsofanypersontoattendand/orvote at the meeting.

NOTICE OF ANNUAL GENERAL MEETING

Notes:1. AmemberoftheCompanyentitledtoattendandvoteattheabovementionedmeetingisentitledtoappointaproxytoattendand,onapoll,

tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.AproxyneednotbeamemberoftheCompany.Amembermay appoint more than one proxy to attend on the same occasion.

2. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority(ifany)underwhichitissigned,oranotariallycertifiedcopyofsuchpowerorauthority,shallbedepositedwiththeCompany’sregistrars,ComputershareInvestorServices(ChannelIslands)Limited,QueenswayHouse,HilgroveStreet,StHelier,JerseyJE11ES,ChannelIslands,oratsuchotherplaceasisspecifiedforthatpurposeinthe notice of the meeting or in the instrument of proxy issued by the Company at least 24 hours before the time appointed for holding the meetingoradjournedmeetingatwhichthepersonnamedintheinstrumentproposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,theinstrumentofproxyshallnotbetreatedasvalid.

3. Completion of the instrument appointing a proxy does not preclude a member from subsequently attending and voting at the meeting in personifhe/shesowishes.

4. Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesoftheHoldersstandintheregisterof members of the Company.

5. AspermittedbyRegulation40(1)oftheCompanies(UncertificatedSecurities)(Jersey)Order1999,onlypersonsenteredontheregisterofmembersoftheCompanynotlaterthan48hoursbeforethetimeappointedforthemeetingareentitledtoattendand/orvoteatthemeetingin respect of the number of shares registered in their name at that time. Changes to entries on the register of members after that time will bedisregardedindeterminingtherightsofanypersontoattendand/orvoteatthemeeting.

FOR AGAINST WITHHOLDORDINARY RESOLUTIONS

1. THATtheCompany'saccountsandreportsoftheDirectorsandAuditorsfor the year ended 31 December 2010 be adopted.

2. THATDato’ShamsirbinOmarisre-electedasaDirector.

3. THATKjetilLanglandBohnisre-electedasaDirector.

4. THATJeffreysHenryLLPofFinsgate,5-7CranwoodStreet,EC1V9EELondon,UnitedKingdombereappointedasAuditorsoftheCompany(inaccordancewithArticle33oftheArticlesofAssociationoftheCompany)toholdofficeuntiltheconclusionofthenextgeneralmeeting.

5. THATtheDirectorsbeauthorisedtofixtheremunerationoftheAuditors.

If by an individual:

Signed:....................................................................................

Dated:.............................................................................2011

If for and on behalf of a corporation:

Signed by: .................................................................................

for and on behalf of: ...................................................................

Position: ....................................................................................

Dated:.............................................................................2011

I/We:(fullname)……………………………………………………………………………………………...............................................

of:(address)…………………………………………………………………………………………………................................................

beingamemberofMobilityOneLimited,doherebyappoint:(fullname)…………………………………...........................................

orfailinghim:(fullname)……………………………………………………………………………………................................................

orfailinghimtheChairmanoftheMeetingasmy/ourproxytoattendtheAnnualGeneralMeetingofMobilityOneLimitedtobe

heldatMalaysianPetroleumClub,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,

Malaysia on 22 July 2011 at 9.00 a.m. Malaysia time or any adjournment thereof.

Please indicate by marking “X” in the respective box. If no indication is given, your proxy will have discretion to vote or to abstain (including on any other matter which may properly come before the meeting as he/she thinks fit).

I/Werequestsuchproxytovoteasindictedbelow:

THEN FOLD HERE

FIRST FOLD HERE

AFFIXSTAMP

COMPANY'S REGISTRARSMOBILTYONE LIMITEDQUEENSWAY HOUSEHILGROVE STREET, ST. HELIERJERSEY JE1 1ESCHANNEL ISLANDS

FOLD THIS FLAP FOR SEALING

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