MobilityOne Limited - Annual Report · ANNuAL rEpOrT 2008 MOBILITYONE LIMITED 2 Company Information...

MobilityOne Limited - Annual Report

� MOBILITYONE LIMITEDANNuAL rEpOrT 2008

2 CompanyInformation3 Chairman’sStatement

5 ReportoftheDirectors

9 CorporateGovernanceReport

11 BoardofDirectors

12 ReportoftheIndependentAuditors

14 ConsolidatedIncomeStatement

15 ConsolidatedStatementofChangesinEquity

16 ConsolidatedBalanceSheet

18 CompanyBalanceSheet

19 ConsolidatedCashFlowStatement

20 CompanyCashFlowStatement

21 NotestotheFinancialStatements

62 NoticeofAnnualGeneralMeeting

63 FormofProxy

CONTENTS

2 MOBILITYONE LIMITED ANNuAL rEpOrT 2008

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

SECRETARY TMFChannelIslandsLimited WalkerHouse 28-34HillStreet JerseyJE48PN ChannelIslands

REGISTERED WalkerHouseOFFICE POBox72 28-34HillStreet JerseyJE48PN ChannelIslands BUSINESS No.2,9thFloor,WismaMenjalaraADDRESS Jalan7A/62A,BandarMenjalara 52200KualaLumpur Malaysia Tel:+60362861999

AUDITORS JeffreysHenryLLP Finsgate5-7CranwoodStreet LondonEC1V9EE UnitedKingdom

NOMINATED HBCorporateLimitedADVISER 40MarshWallANDBROKER LondonE149TP UnitedKingdom

FINANCIALPUBLIC ThreadneedleCommunicationsRELATIONS 5thFloor,7LudgateBroadway LondonEC4V6DX UnitedKingdom

COMpANY INfOrMATION


INTRODUCTION

MobilityOneLimited'sorganisationstructureisdepictedbelow:

OPERATIONSREVIEW

2008hasbeenachallengingyear for theGroup.Demand for theGroup’sproductsandserviceshasbeenaffectedbytheweakbusinesssentiment,whichhasalsoledtothedelayofcertainprojectsandexpansion plans. Despite the challenging global economic situation, the Group remains committed todevelopinginnovativesolutionsthroughResearch&Development,whichincludetheremittancebusinessandconnectivitytovariousforeignpartners,mobileandInternetbankingsystems,billpaymentsystemsandenhancementoftheexistinginfrastructure,andtogrowinganddiversifyingitsrangeofservices,inordertoplacetheGrouponastrongerfootingtocapitaliseonfutureprospects.

InordertodiversifytheGroup’srevenuebase,theGrouphassetupasubsidiaryinIndonesia,namelyPT.MobilityOneIndonesia,tomarkettheGroup’ssolutionstofinancialinstitutionsandtelecommunicationcompaniesinthatcountry.TheGrouphasenteredintoagreementswithPT.FinnetIndonesia(“Finnet”)andPT.TelekomunikasiSelular(“Telkomsel”)inIndonesiatoprovideremittanceservices.Finnetisatransactionmanagementcompanywhichfocusesprimarilyonswitchingandsharedtransactionssettlement forallbusinessentities,especiallyfinancialinstitutions,whileTelkomselistheleadingoperator,bymarketshare,ofcellulartelecommunicationsservicesinIndonesia.TheGrouphasalsoenteredintoasimilaragreementwithG-Xchange,Inc.,awholly-ownedsubsidiaryofGlobeTelecom,whichisoneofthelargestmobilephonecompaniesinthePhilippines,toprovidesimilarremittanceservices.Inaddition,theGrouphasbeenappointedbyTelekomMalaysiaInternational(Cambodia)Co.,Ltd,oneofthemajortelecommunicationscompaniesinCambodia,asitstechnologypartnertoprovidethee-voucherandcredittransferplatformforitstelecommunicationsoperationsinCambodia.Whilstentryintothesenewmarketsandgeographieshasnotresultedinimmediatestrongreturns,theBoardishopefulthatitwillprovidegoodnewbusinessopportunitiesand,therefore,revenuegrowthtotheGroupinthelongterm.

WepresenttheauditedconsolidatedfinancialstatementsforMobilityOneLimitedfortheyearended31December2008.

ChAIrMAN’S STATEMENT

NETOSSSDNBHD(Malaysia)

100%

PAySTATIONSDNBHD(Malaysia)

100%

MOBILITyONESDNBHD(Malaysia)

100%

MOBILITyONELIMITED(Jersey,ChannelIslands)

PTMOBILITyONEINDONESIA(Indonesia)

95%

� MOBILITYONE LIMITED ANNuAL rEpOrT 2008

RESULTS

Duetoanumberoffactors,notleasttheslowingoftheglobaleconomy,theGroupsawaslowdownindemandforitsproductsandservices.Asaresult,forthefinancialyearended31December2008,theGroupregisteredarevenueof£12.46million,adecreaseof24.8%comparedto£16.57millionfor2007andalossaftertaxof£0.88million(2007:profit£0.73million).Thelosswasprimarilyduetothelowerrevenueregisteredforthefinancialyear,higheroperatingcostsandexpensestoexplorenewbusinessopportunities,depreciationandamortisationofintangibleassetsanddevelopmentcostsof£0.29million,aswellasawritedownofequipmentandinventoriesof£0.22million.

CURRENTTRADINGANDOUTLOOK

The Group, like many other companies during this global economic crisis, has experienced a furtherslowdown in turnoverduring thefirst fewmonthsof2009.Assuch, theGrouphas takenmeasures toreducecostsandoverheadsinordertocushiontheimpactoftheslowdown,andtobemoreaggressiveinitssalesandmarketingactivities.

Although the Group expects 2009 to continue to be a challenging year, due to the prevailing marketconditions,andexpectssomeofitsprojectsmaycontinuetobedeferredorputonhold,theGroupwillcontinuetointroducenewrevenuestreamsthroughitsnewproductsandservicesandtofocusoncontinuousinnovationandenhancementofitsproductsandservicestoensureitscompetitivenessandfuturegrowthintheindustry.

So far, the rolloutof theGroup’sself-service“OnePay” terminalshasbeenslow.However, theGroupexpects theusageof the terminals to improve in the long termas theGrouphasbeen indiscussionswithitsbusinesspartnerstoincludebillpaymentsandotherpaymentfunctionalitiestotheterminalsandthiswillenhancethevalueoftheterminals.Inaddition,theGrouphasrecentlylaunchedanInternationalRemittanceServiceatitsfirsttwooutletsinKotaKinabaluandKualaLumpurinMalaysia.ThisnewserviceisdesignedtocaterfortheestimatedtwomillionIndonesiansand200,000FilipinosinMalaysiawhohavetheneedtouseinternationalremittanceservicestosendmoneybacktotheirhomecountries.TheGroupisalsoexploringsimilaragreementswithpartnersinothercountriessuchasBangladesh,asthereareabout450,000BangladeshiscurrentlyworkinginMalaysia.Inaddition,theGroupplanstoincreasethenumberofitsownremittanceservicesoutletsaswellaslinking-upwithfinancialinstitutionsinMalaysia.

CONCLUSION

OnbehalfoftheBoardofDirectors,Iwouldliketotakethisopportunitytothankthemanagementandstafffortheireffortsandcommitmentovertheyear.

Dato’Dr.WanAzmibinAriffinChairman

Date:25June2009

ChAIrMAN’S STATEMENT (CONTINuED)


TheDirectorspresenttheirreportwiththefinancialstatementsoftheCompanyandtheGroupfortheyearended31December2008.

PRINCIPALACTIVITY

TheprincipalactivityoftheGroupintheyearunderreviewwasinthebusinessofprovidinge-commerceinfrastructurepaymentsolutionsandplatforms.

KEYPERFORMANCEINDICATORS Yearended 31.12.2008 £

Revenue 12,460,925Operatingloss (867,700)Lossbeforetax (916,047)Netloss (879,152)

KEYRISKSANDUNCERTANTIES

OperationalrisksTheGroupisnotinsulatedfromgeneralbusinessriskaswellascertainrisksinherentintheindustryinwhichtheGroupoperates.Thismayincludetechnologicalchanges,unfavourablechangesinGovernmentandinternationalpolicies,theintroductionofnewandsuperiortechnologyorproductsandservicesbycompetitorsandchangesinthegeneraleconomic,businessandcreditconditions.

DependencyonDistributorshipsAgreementsTheGroupreliesonvarioustelecommunicationcompaniestoprovidethetelecommunicationproducts.HencetheGroup’sbusinessmaybemateriallyandadverselyaffectedifoneormoreofthesetelecommunicationcompaniescutorreducedrasticallythesupplyoftheirproducts.TheGrouphasdistributorshipagreementswithtelecommunicationcompaniessuchasDiGiTelecommunicationsSdn.Bhd.,Celcom(M)BerhadandMaxisCommunicationBerhad,whicharesubjecttoperiodicrenewal.

Rapidtechnologicalchanges/productchangesinthee-commerceindustryTheabilitytokeeppacewithrapidtechnologicaldevelopmentinthee-commerceindustrywillaffecttheGroup’srevenuesandprofits.Thee-commerceindustryischaracterisedbyrapidtechnologicalchangesduetochangingmarkettrends,evolvingindustrystandards,newtechnologiesandemergingcompetition.FuturesuccesswillbedependentupontheGroup’sabilitytoenhanceitsexistingtechnologysolutionsandintroducenewproductsandservicestorespondtotheconstantlychangingtechnologicalenvironment.Thetimelydevelopmentofnewandenhancedservicesorproductsisacomplexanduncertainprocess.

DemandofproductsandservicesTheGroup’sfutureresultsdependontheoveralldemandforitsproductsandservices.Uncertaintyintheeconomicenvironmentmaycausesomebusinesstocurtailoreliminatespendingonpaymenttechnology.Inaddition,theGroupmayexperiencehesitancyonthepartofexistingandpotentialcustomerstocommittocontinuingwithitsnewservices.

rEpOrT Of ThE DIrECTOrSFor the year ended 31 December 2008

� MOBILITYONE LIMITED ANNuAL rEpOrT 2008

REVIEWOFBUSINESS

TheresultsfortheyearandfinancialpositionoftheCompanyandtheGroupareasshownintheannexedfinancialstatements. RESULTSANDDIVIDENDS

Theconsolidatedlossfortheyearended31December2008is£879,152(2007:profit£733,089)whichhasbeentransferredtoreserves.Nodividendswillbedistributedfortheyearended31December2008.

DIRECTORS

TheDirectorsduringtheyearunderreviewwere:

Dato’Dr.WanAzmibinAriffin(Non-Executive Chairman)Dato’[email protected](Chief Executive Officer)DerrickChiaKahWai(Technical Director)SeahBoonChin(Corporate Finance Director)Dato’ShamsirbinOmar(Non-Executive Director)KjetilLanglandBohn(Non-Executive Director)

DerrickChiaKahWaiandSeahBoonChinwhoareeligibleofferthemselvesforre-electionattheforthcomingAnnualGeneralMeeting.

ThebeneficialinterestsoftheDirectorsholdingofficeat31December2008intheordinarysharesoftheCompany,wereasfollows:

Dato’Dr.WanAzmibinAriffinDato’[email protected]’ShamsirbinOmarKjetilLanglandBohn

TheDirectorsalsoheldthefollowingordinarysharesunderoption:

Dato’Dr.WanAzmibinAriffinDato'[email protected]’ShamsirbinOmarKjetilLanglandBohn

Theoptionsweregrantedon5July2007atanexercisepriceof12.5p.Theperiodoftheoptionsisfiveyears.

Interestat31.12.08

Nil27,452,111

NilNil

9,131,677Nil

%ofissuedcapital

Nil34.8

NilNil

11.6Nil

Interestat31.12.08

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

NilNil

rEpOrT Of ThE DIrECTOrS (CONTINuED)For the year ended 31 December 2008

Ordinary2.5pshares


SUBSTANTIALSHAREHOLDERS

Asat24June2009,theCompanyhadbeennotifiedofthefollowingbeneficialinterestsin3%ormoreoftheissuedsharecapitalpursuanttoPartVIofArticle110oftheCompanies(Jersey)Law1991:

Ordinary2.5pshares

Dato’[email protected]’ShamsirbinOmarPerbadananNasionalBerhadGHLSystemsBerhad

PUBLICATIONOFACCOUNTSONCOMPANYWEBSITE

FinancialstatementsarepublishedontheCompany’swebsite.ThemaintenanceandintegrityofthewebsiteistheresponsibilityoftheDirectors.TheDirectors’responsibilityalsoextendstothefinancialstatementscontainedtherein.

INDEMNITYOFOFFICERS

The Group does not have the insurance cover against legal action bought against its Directors andofficers.

GROUP'SPOLICYONPAYMENTOFCREDITORS

ItistheGroup’snormalpracticetomakepaymentstosuppliersinaccordancewithagreedtermsprovidedthatthesupplierhasperformedinaccordancewiththerelevanttermsandconditions.

EMPLOYEEINVOLVEMENT

TheGroupplacesconsiderablevalueontheinvolvementoftheemployeesandhascontinuedtokeeptheminformedonmattersaffectingtheGroup.Thisisachievedthroughformalandinformalmeetings.

GOINGCONCERN

After making appropriate enquiries, the Directors consider that the Group has adequate resources tocontinue inoperationalexistencefor theforeseeablefuture.For thisreasontheycontinuetoadopt thegoingconcernbasisinpreparingthefinancialstatements.

Numberofordinaryshares

27,452,11116,048,9229,131,6775,290,0003,209,784

%ofissuedcapital

34.820.311.66.74.1



STATEMENTOFDIRECTORS'RESPONSIBILITIES

TheDirectorsareresponsible forpreparing thefinancialstatements inaccordancewithapplicable lawandregulations.

CompanylawrequirestheDirectorstopreparefinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorshaveelectedtopreparethefinancialstatementsinaccordancewithInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnion.ThefinancialstatementsarerequiredbylawtogiveatrueandfairviewofthestateofaffairsoftheCompanyandtheGroupandoftheprofitorlossoftheGroupforthatperiod.Inpreparingthesefinancialstatements,theDirectorsarerequiredto:

• selectsuitableaccountingpoliciesandthenapplythemconsistently;• makejudgmentsandestimatesthatarereasonableandprudent;• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethat

theCompanywillcontinueinbusinessfortheforeseeablefuture;and• statethatthefinancialstatementscomplywithInternationalFinancialReportingStandards(IFRS)as

adoptedbytheEuropeanUnion.

The Directors are responsible for keeping proper accounting records which disclose with reasonableaccuracyatanytimethefinancialpositionoftheCompanyandtheGroupandtoenablethemtoensurethatthefinancialstatementscomplywiththeArticle110oftheCompanies(Jersey)Law1991.TheyarealsoresponsibleforsafeguardingtheassetsoftheCompanyandtheGroupandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

STATEMENTASTODISCLOSUREOFINFORMATIONTOAUDITORS

SofarastheDirectorsareaware,thereisnorelevantauditinformation(asdefinedbySection234ZAoftheArticle110oftheCompanies(Jersey)Law1991)ofwhichtheGroup'sauditorsareunaware,andeachDirectorhastakenallthestepsthatheoughttohavetakenasaDirectorinordertomakehimselfawareofanyrelevantauditinformationandtoestablishthattheGroup'sauditorsareawareofthatinformation.

AUDITORS

JeffreysHenryLLPhaveexpressedtheirwillingnesstocontinueinoffice.AresolutionproposingthatJeffreysHenryLLPbere-appointedwillbeputtotheforthcomingAnnualGeneralMeeting.

ONBEHALFOFTHEBOARD:

Dato’[email protected]

Date:25June2009



TheDirectorsacknowledgetheimportanceofthePrinciplessetoutintheCombinedCodeissuedbytheCommitteeonCorporateGovernance.AlthoughtheCombinedCodeisnotcompulsoryforAIMcompanies,theDirectorsintendtoapplytheprinciplesasfaraspracticableandappropriateforarelativelysmallpubliccompanyasfollows:

THEBOARDOFDIRECTORS

TheBoardisresponsibleforstrategy,performance,approvalofmajorcapitalprojectsandtheframeworkofinternalcontrols.ToenabletheBoardtodischargeitsduties,allDirectorsreceiveappropriateandtimelyinformation.BriefingpapersaredistributedtoallDirectorsinadvanceofBoardmeetings.AllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretary,whoisresponsibleforensuringthatBoardproceduresarefollowedandthatapplicablerulesandregulationsarecompliedwith.

AUDITCOMMITTEEANDREMUNERATIONCOMMITTEE

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

TheRemunerationCommitteereviewstheperformanceoftheExecutiveDirectors,setstheirremuneration,determinesthepaymentofbonusestoExecutiveDirectorsandconsiderstheallocationofshareoptionstoDirectorsandemployees.

INTERNALFINANCIALCONTROL

TheBoardisresponsibleforestablishingandmaintainingtheGroup’ssystemofinternalfinancialcontrolandplacesimportanceonmaintainingastrongcontrolenvironment.ThekeyprocedureswhichtheDirectorshaveestablishedwithaviewtoprovidingeffectiveinternalfinancialcontrolareasfollows:

• TheGroup’sorganisationalstructurehasclearlinesofresponsibility.

• TheCompanypreparesacomprehensiveannualbudgetthatisapprovedbytheBoard.MonthlyresultsarereportedagainstthebudgetandvariancesarecloselymonitoredbytheDirectors.

• The Board is responsible for identifying the major business risks faced by the Company and fordeterminingtheappropriatecoursesofactiontomanagethoserisks.

• TheBoardisinvolvedinregularsubsidiarycompanyBoardmeetingsandwithstructuredoperationalreportingrequirements.

TheDirectorsrecognise,however,thatsuchasystemofinternalfinancialcontrolcanprovideonlyreasonable,notabsolute,assuranceagainstmaterialmisstatementorloss.TheDirectorshavereviewedtheeffectivenessofthesystemofinternalfinancialcontrolthatwillbeoperatedbytheGroup.

COrpOrATE GOvErNANCE rEpOrTFor the year ended 31 December 2008

�0 MOBILITYONE LIMITED ANNuAL rEpOrT 2008

SERVICECONTRACTS

TheDirectorshaveservicecontractsandlettersofappointment,whichrequirenotlessthan3months’noticeoftermination.

MODELCODE

TheCompanyhasadoptedandoperatesasharedealingcodeforDirectorsandseniorexecutivesonthesametermsastheLondonStockExchangeModelCodeforcompanieswhoseshareshavebeenadmittedtoAIM.

RELATIONSWITHSHAREHOLDERS

Communicationswithshareholdersaregivenhighpriority.TheBoardusestheAnnualGeneralMeetingtocommunicatewithinvestorsandwelcomestheirparticipation.TheChairmanaimstoensurethattheDirectorsareavailableatAnnualGeneralMeetingstoanswerquestions.

COrpOrATE GOvErNANCE rEpOrT (CONTINuED)For the year ended 31 December 2008

�� MOBILITYONE LIMITEDANNuAL rEpOrT 2008

Dato’Dr.WanAzmibinAriffin(Non-Executive Chairman)

Dato’Dr.WanAzmibinAriffin,aMalaysianaged65,istheNon-ExecutiveChairmanof theCompany. Hebeganhiscareeras a teacher for secondary schoolsfrom1965to1977andlaterbecameauniversity lecturer from 1979 to 1981.Since then, he has been active in theMalaysian politics. He obtained hisBachelor Degree in Geography fromUniversitiSainsMalaysiaandaMaster’sDegreeinEconomicDevelopmentandaPhDinPoliticalEconomicsfromMcGillUniversity,Canada.

Dato’[email protected](Chief Executive Officer)

Dato'[email protected],a Malaysian aged 47, is the ChiefExecutive Officer of the Group. Hehas extensive experience in the ITand telecommunications industriesin Malaysia and is responsible for thedevelopment of the Group’s overallmanagement, particularly in settingthe Group’s business direction andstrategies. He obtained a certifiedMasterofBusinessAdministrationfromtheOxfordAssociationofManagement,England.

DerrickChiaKahWai(Technical Director)

DerrickChiaKahWai,aMalaysianaged38,istheTechnicalDirectoroftheGroup.Hebeganhiscareerasaprogrammerin 1994, he then joined GHL SystemsBerhadinJanuary1998asaSoftwareEngineerandwaspromotedtoSoftwareDevelopment Manager in December1999.HeobtainedhisBachelorDegreeinCommerce,majoringinManagementInformation System from University ofBritishColumbia,Canada.HejoinedtheGroup inMay2005and is responsiblefortheGroup’sR&Dteamwhichincludethearchitecturaldesignofitstechnologyplatform.

SeahBoonChin(Corporate Finance Director)

SeahBoonChin,aMalaysianaged37,istheCorporateFinanceDirectoroftheCompany. He began his career as asenior officer with Chung Khiaw Bank(Malaysia)Bhd. (nowUnitedOverseasBank (Malaysia) Berhad) from 1995to 1996. From 1997 to January 2007,he worked in the Corporate FinanceDepartment of established financialinstitutions in Malaysia and SingaporeincludingCIMBInvestmentBankBerhad,AffinInvestmentBankBerhadandPublicInvestment Bank Berhad. He obtainedhis Bachelor Degree in Commerce(Honours)withDistinctionfromMcMasterUniversity,Canada.HejoinedtheGroupinJanuary2007andisresponsiblefortheGroup’scorporatefinanceactivities.

Dato’ShamsirbinOmar(Non-Executive Director)

Dato’ Shamsir bin Omar, a Malaysianaged74isaNon-ExecutiveDirectoroftheGroup. HecommencedhiscareerwiththeMalaysianGovernmentinAugust1960astheAuditorandAccountantintheDepartmentofCooperativeDevelopment.In1966,hewasappointedastheChiefAccountantintheMinistryofEducation,Malaysia.In1967,hewaspromotedtothepositionofDeputyAccountantGeneralin the Ministry of Finance, Malaysia.In 1968, he became the AccountantGeneral,Malaysia,apostheheldfor22years until his retirement in July 1989.Afterretirementfromgovernmentservicein1989,hejoinedShamsirJasaniGrantThornton, Malaysia. He has been theaccountingfirm’sChairmansincethen.HeisafellowmemberoftheInstituteofCharteredAccountantsinAustralia.

KjetilLanglandBohn(Non-Executive Director)

Kjetil Langland Bohn, a Norwegianaged39isaNon-ExecutiveDirectorofthe Company. He graduated from theNorwegianBusinessSchool inBergenandbeganhiscareerasajournalistwithHegnarMediaASfrom1996to2000.InJuly2000hefoundedVivaTechnologiesASandactedasCEOuntilFebruary2004priortoitsacquisition.Hehasextensiveexperience within the mobile serviceindustryandmobileVoIPinEuropeandAsia. He is currently the CEO of AIMquotedVykeCommunicationsplc.

BOArD Of DIrECTOrSFor the year ended 31 December 2008


WehaveauditedtheGroupandtheCompanyfinancialstatementsofMobilityOneLimitedfortheyearended31December2008whichcomprisetheConsolidatedIncomeStatement,ConsolidatedStatementofChangesinEquity,ConsolidatedBalanceSheet,CompanyBalanceSheet,ConsolidatedCashFlowStatement,CompanyCashFlowStatementandtherelatednotes.Thesefinancialstatementshavebeenpreparedundertheaccountingpoliciessetouttherein.

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

RESPECTIVERESPONSIBILITIESOFDIRECTORSANDAUDITORS

TheDirectors' responsibilities forpreparing thefinancialstatements inaccordancewithapplicable lawandInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnionaresetoutonpage8.

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

WereporttoyououropinionastowhetherthefinancialstatementsgiveatrueandfairviewandareproperlypreparedinaccordancewiththeCompanies(Jersey)Law1991andArticle4oftheIASregulation.WealsoreporttoyouwhetherinouropiniontheinformationgivenintheReportoftheDirectorsisconsistentwiththefinancialstatements.

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

WereadotherinformationcontainedintheAnnualReportandconsiderwhetheritisconsistentwiththeauditedfinancialstatements.TheotherinformationcomprisesonlytheChairman’sStatement,CorporateGovernanceReportandDirectors’Report.Ourresponsibilitydoesnotextendtoanyotherinformation.

BASISOFAUDITOPINION

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issuedbytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttotheamountsanddisclosuresinthefinancialstatements.ItalsoincludesanassessmentofthesignificantestimatesandjudgmentsmadebytheDirectorsinthepreparationoftheGroup’sfinancialstatements,andofwhethertheaccountingpoliciesareappropriatetotheGroup’sandtheCompany’scircumstances,consistentlyappliedandadequatelydisclosed.

rEpOrT Of ThE INDEpENDENT AuDITOrS TO ThE MEMBErS Of MOBILITYONE LIMITED


WeplannedandperformedourauditsoastoobtainalltheinformationandexplanationswhichweconsiderednecessaryinordertoprovideuswithsufficientevidencetogivereasonableassurancethattheGroup’sfinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorotherirregularityorerror.Informingouropinionwealsoevaluatedtheoveralladequacyofthepresentationofinformationinthefinancialstatements.

OPINION

Inouropinion:

- theGroup’sfinancialstatementsgiveatrueandfairview,inaccordancewithInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnion,ofthestateofaffairsoftheGroupasat31December2008andoftheprofitoftheGroupfortheperiodthenended;

- theCompany’sfinancialstatementsgiveatrueandfairview,inaccordancewithInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnion,asappliedinaccordancewiththeprovisionsoftheCompanies(Jersey)Law1991,ofthestateoftheCompany’saffairsasat31December2008;

- thefinancialstatementshavebeenproperlypreparedinaccordancewiththeCompanies(Jersey)Law1991and,inrelationtotheGroupfinancialstatements,Article4oftheIASregulation;and

- theinformationgivenintheReportoftheDirectorsisconsistentwiththefinancialstatements.

JeffreysHenryLLPFinsgateCharteredAccountantsandRegisteredAuditors5-7CranwoodStreetLondonEC1V9EE

Date:25June2009

rEpOrT Of ThE INDEpENDENT AuDITOrS TO ThE MEMBErS Of MOBILITYONE LIMITED (CONTINuED)

�� MOBILITYONE LIMITED ANNuAL rEpOrT 2008

RevenueCostofsales

GROSSPROFIT

OtheroperatingincomeAdministrationexpensesOtheroperatingexpenses

OPERATING(LOSS)/PROFIT

Financecosts

(LOSS)/PROFITBEFORETAX

Tax

(LOSS)/PROFITFORTHEYEAR

Attributableto:EquityholdersoftheCompanyMinorityinterest

EARNINGSPERSHARE

Basicearningspershare(pence)Dilutedearningspershare(pence)

Restated2007

£

16,573,813(14,448,152)

2,125,661

46,002(1,254,473)

(100,673)

816,517

(51,260)

765,257

(32,168)

733,089

733,089-

733,089

0.840.84

2008£

12,460,925(11,608,785)

852,140

136,014(1,343,110)

(512,744)

(867,700)

(48,347)

(916,047)

36,895

(879,152)

(876,818)(2,334)

(879,152)

(1.10)(1.10)

Note

6

7

8

10

Thenotesformpartofthesefinancialstatements

CONSOLIDATED INCOME STATEMENTFor the year ended 31 December 2008


Sharecapitalistheamountsubscribedforsharesatnominalvalue.

Sharepremiumrepresentstheexcessoftheamountsubscribedforsharecapitaloverthenominalvalueoftherespectivesharesnetofshareissueexpenses.

ThereverseacquisitionreserverelatestotheadjustmentrequiredbyaccountingforthereverseacquisitioninaccordancewithIFRS3.

TheCompany’sassetsandliabilitiesstatedinthebalancesheetweretranslatedintoPoundSterling(£)usingtheclosingrateasatthebalancesheetdateandtheincomestatementsweretranslatedinto£usingtheaveragerateforthatperiod.Allresultingexchangedifferencesaretakentotheforeigncurrencytranslationreservewithinequity.

RetainedearningsrepresentthecumulativeearningsoftheGroupattributabletoequityshareholders.


Asat1January2007ProfitfortheyearCapitalisedasbonusissuein

subsidiarycompanyConversionofredeemable

preferencesharesinsubsidiarycompany

ReverseacquisitionIssueofsharesin

MobilityOneLimitedForeigncurrencytranslationAsat31December2007

Sharepremium

£

911-

-

-(911)

782,234-

782,234

Total£

2,933,670764,740

2

293,044-

1,089,734202,524

5,283,714

Total£

2,933,670764,740

2

293,044-

1,089,734202,524

5,283,714

Foreigncurrency

translationreserve

£

(162,608)31,651

-

--

-202,52471,567

Sharecapital

£

2,017,021-

438,905

293,044(708,040)

307,500-

2,348,430

Retainedearnings

£

1,078,346733,089

(438,903)

--

--

1,372,532

Minorityinterest

£

--

-

--

---

Reverseacquisition

reserve£--

-

-708,951

--

708,951

Non-Distributable Distributable

Asat1January2008Acquisitionofsubsidiary

companyLossfortheyearSharebuybackin

MobilityOneLimitedForeigncurrencytranslationAsat31December2008

Sharepremium

£

782,234

--

--

782,234

Total£

5,283,714

-(729,734)

(1,392,986)830,706

3,991,700

Total£

5,283,714

3,184(732,068)

(1,392,986)830,706

3,992,550

Foreigncurrency

translationreserve

£

71,567

-147,084

-830,706

1,049,357

Sharecapital

£

2,348,430

--

(374,056)-

1,974,374

Retainedearnings

£

1,372,532

-(876,818)

(1,018,930)-

(523,216)

Minorityinterest

£

-

3,184(2,334)

--

850

Reverseacquisition

reserve£

708,951

--

--

708,951

Non-Distributable Distributable

CONSOLIDATED STATEMENT Of ChANGES IN EquITY For the year ended 31 December 2008


ASSETSNon-currentassetsIntangibleassetsProperty,plantandequipmentPrepaidleasepayments

CurrentassetsInventoriesTradereceivablesOtherreceivablesTaxrecoverableAvailableforsalefinancialassetCashandcashequivalents

Non-currentassetsheldforsale

LIABILITIESCurrentliabilitiesTradepayablesOtherpayablesAmountduetoDirectorsBorrowings–secured

Liabilityrelatingtonon-currentassetsheldforsale

NETCURRENTASSETS

Totalassetslesscurrentliabilities

Non-currentliabilitiesBorrowings–securedDeferredtaxliability

NETASSETS

Restated2007

£

1,689,0111,121,909

167,5552,978,475

918,118160,799

1,572,7236,754

45,514348,476

3,052,384-

3,052,384

151,18151,561

-359,678562,420

-562,420

2,489,964

5,468,439

150,13734,588

184,725

5,283,714

2008£

2,272,5471,105,264

-3,377,811

878,777415,28948,2338,179

-410,085

1,760,563413,084

2,173,647

325,394222,259106,129688,273

1,342,05536,808

1,378,863

794,784

4,172,595

180,045-

180,045

3,992,550

Note

111213

151617

1920

21

22232425

21

2526


CONSOLIDATED BALANCE ShEETAs at 31 December 2008


SHAREHOLDERS’EQUITY

EquityattributabletoequityholdersoftheCompany:

CalledupsharecapitalSharepremiumReverseacquisitionreserveForeigncurrencytranslationreserveRetainedearnings

Shareholders’equityMinorityinterest

TOTALEQUITY

Restated2007

£

2,348,430782,234708,95171,567

1,372,532

5,283,714-

5,283,714

2008£

1,974,374782,234708,951

1,049,357(523,216)

3,991,700850

3,992,550

Note

2729303637


CONSOLIDATED BALANCE ShEET (CONTINuED)As at 31 December 2008



ASSETSNon-currentassetInvestmentinsubsidiarycompanies

CurrentassetsAmountduefromsubsidiarycompanyCashandcashequivalents

CurrentliabilitiesOtherpayablesAmountduetodirectors

NETCURRENTASSETS

NETASSETS

SHAREHOLDERS’EQUITY

EquityattributabletoequityholdersoftheCompany:CalledupsharecapitalSharepremiumRetainedearnings

TOTALEQUITY

2007£

2,040,930

1,010,03362,742

1,072,775

---

1,072,775

3,113,705

2,348,430782,234(16,959)

3,113,705

2008£

2,040,930

1,318,5913,417

1,322,008

46,77586,125

132,900

1,189,108

3,230,038

1,974,374782,234473,430

3,230,038

Note

14

1820

2324

272929

COMpANY BALANCE ShEETAs at 31 December 2008



CashflowfromoperatingactivitiesCashgeneratedfrom/(depletedin)operations Interestpaid Interestreceived

Netcashgeneratedfrom/(usedin)operatingactivities

Cashflowsfrominvestingactivities Purchaseofproperty,plantandequipment Purchaseofavailableforsalefinancialasset Proceedsfromdisposalofproperty,plantand

equipment Proceedsfromdisposalofavailableforsale

financialasset Additiontodevelopmentcosts

Netcashusedininvestingactivities

Cashflowsfromfinancingactivities Drawdownofshorttermborrowings Drawdownoftermloan Repaymentoftermloan Sharebuyback Proceedsfromissuanceofordinaryshares(net

oflistingexpenses)

Netcashgeneratedfromfinancingactivities

Increase/(decrease)incashandcashequivalents

Effectofforeignexchangeratechanges

Cashandcashequivalentsatbeginningofyear

Cashandcashequivalentsatendofyear

Restated2007

£

(672,251)(51,260)

625

(722,886)

(669,977)(45,514)

-

-(68,995)

(784,486) - - (172,960) -

1,089,734

916,774 (590,598) 70,907 868,167 348,476

2008£

2,060,020(48,347)14,963

2,026,636

(152,253)-

9,053

60,252(178,289)

(261,237) 126,028 136,030 (68,649) (1,392,986)

-

(1,199,577) 565,822 (504,213) 348,476 410,085

Note

31

20

CONSOLIDATED CASh fLOw STATEMENTFor the year ended 31 December 2008



CashflowfromoperatingactivitiesCashdepletedinoperations

Cashflowsfrominvestingactivity Dividendsreceived

Cashflowsfromfinancingactivities Sharebuyback Proceedsfromissuanceofordinaryshares

(netoflistingexpenses)

Decrease/increaseincashandcashequivalents

Effectofforeignexchangeratechanges

Cashandcashequivalentsatbeginningofyear

Cashandcashequivalentsatendofyear

22.3.2007TO

31.12.2007£

(1,026,992) - -

1,089,734 62,742 - - 62,742

Note

31

20

1.1.2008TO

31.12.2008£

(158,115)

1,486,023

(1,392,986)

-

(65,078)

5,753

62,742

3,417

COMpANY CASh fLOw STATEMENTFor the year ended 31 December 2008

2� MOBILITYONE LIMITEDANNuAL rEpOrT 2008

1. GENERALINFORMATION

TheprincipalactivityoftheCompanyisinvestmentholding.TheprincipalactivitiesofthesubsidiarycompaniesaresetoutinNote14tothefinancialstatements.Therewerenosignificantchangesinthenatureoftheseactivitiesduringtheyear.

TheCompanyisincorporatedinJersey,TheChannelIslandsundertheCompanies(Jersey)Law1991.Theregisteredofficeislocatedat28-34HillStreet,StHelier,JerseyJE48PN,ChannelIslands.Theconsolidatedfinancialstatementsfortheyearended31December2008comprisetheresultsoftheCompanyanditssubsidiarycompaniesundertakings.TheCompany’ssharesaretradedonAIMoftheLondonStockExchange.

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

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

TheGroup’stechnologyplatformisflexible,scalableandhasbeendesignedtofacilitatecash,debitcardandcreditcardtransactions(according to thedevice) frommultipledeviceswhilecontrollingandmonitoring thedistributionofdifferentproductsandservices.

2. ACCOUNTINGPOLICIES

BasisofpreparationThesefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSsandIFRICinterpretations)issuedbytheInternationalAccountingStandardsBoard(IASB),asadoptedbytheEuropeanUnion,andwiththosepartsoftheCompanies(Jersey)Law1991applicabletocompaniespreparingtheirfinancialstatementsunderIFRS.Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention.

Goingconcern

ThesefinancialstatementshavebeenpreparedontheassumptionthattheGroupisagoingconcern.Whenassessingtheforeseeablefuture,theDirectorshavelookedataperiodoftwelvemonthsfromthedateofapprovalofthisreport.

Aftermakingenquiries,theDirectorshaveareasonableexpectationthattheGrouphasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Accordingly,theycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.

NOTES TO ThE fINANCIAL STATEMENTSFor the year ended 31 December 2008


2. ACCOUNTINGPOLICIES(Continued)

Estimationuncertaintyandcriticaljudgements

Inparticular,informationaboutsignificantareasofestimationuncertaintyandcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountrecognisedinthefinancialstatementsareasfollows:

(i) Acquisitionofsubsidiarycompanies

IntangibleassetsacquiredhavebeenaccountedforinaccordancewithIFRS3‘BusinessCombinations’andIAS38‘IntangibleAssets’.Thekeyassumptionsaretheidentifiableintangibleassetsacquired,forecastfuturecashflowsandthediscountrate.ThecarryingamountsoftheGroup’sintangibleassetsasat31December2008aredisclosedinNote11tothefinancialstatements.

(ii) Depreciationofproperty,plantandequipment

Thecostsofproperty,plantandequipmentoftheGrouparedepreciatedonastraight-linebasisovertheusefullivesoftheassets.Managementestimatestheusefullivesoftheproperty,plantandequipmenttobewithin5to50years.Thesearecommonlifeexpectanciesappliedintheindustry.Changesintheexpectedlevelofusageandtechnologicaldevelopmentscouldimpacttheeconomicusefullivesandtheresidualvaluesoftheseassets,thereforefuturedepreciationchargescouldberevised.ThecarryingamountsoftheGroup’sproperty,plantandequipmentasat31December2008aredisclosedinNote12tothefinancialstatements.

(iii) Amortisationofprepaidleasepayments

ThecostsofprepaidleasepaymentsoftheGroupareamortisedonastraight-linebasisovertheusefullivesoftheassets.Thesearecommonlifeexpectanciesappliedintheindustry.Changesintheexpectedlevelofusagecouldimpacttheeconomicusefullivesandtheresidualvaluesoftheseassets,thereforefutureamortisationchargescouldberevised.ThecarryingamountsoftheGroup’sprepaidleasepaymentsasat31December2008aredisclosedinNote13tothefinancialstatements.

(iv) Amortisationofintangibleassets

Softwareisamortisedoveritsestimatedusefullife.Managementestimatedtheusefullifeofthisassettobewithin5years.Changesintheexpectedlevelofusageandtechnologicaldevelopmentcouldimpacttheeconomicusefullifethereforefutureamortisationcouldberevised.

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

Theresearchanddevelopmentcostsareamortisedonastraight-linebasisoverthelifespanofthedevelopedassets.Managementestimatedtheusefullifeoftheseassetstobewithin5years.Changesinthetechnologicaldevelopmentscouldimpacttheeconomicusefullifeandtheresidualvaluesoftheseassets,thereforefutureamortisationchargescouldberevised.

NOTES TO ThE fINANCIAL STATEMENTS (CONTINuED)For the year ended 31 December 2008



Estimationuncertaintyandcriticaljudgements(continued)

ThecarryingamountsoftheGroup’sintangibleassetsasat31December2008aredisclosedinNote11tothefinancialstatements.

(v) Estimationoffairvalueofproperties

Intheabsenceofcurrentpricesinanactivemarketforsimilarproperties,theGroupconsidersinformationfromavarietyofsources,including:

(a) Currentpricesinanactivemarketforpropertiesofadifferentnature,conditionorlocation(orsubjecttodifferentleaseorothercontracts),adjustedtoreflectthosedifferences;or

(b) Recentpricesofsimilarpropertiesbasedonlessactivemarket,withadjustmentstoreflectanychangesineconomicconditionssincethedateofthetransactionsthatoccurredatthoseprices.

(vi) Impairmentofgoodwillonconsolidation

TheGroup'scashflowprojectionsincludeestimatesofsales.However,iftheprojectedsalesdonotmaterialisethereisariskthatthevalueofgoodwillwouldbeimpaired.

TheDirectorshavecarriedoutadetailedimpairmentreviewinrespectofgoodwill.TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired,byconsideringthenetpresentvalueofdiscountedcashflowsforecastswhichhavebeendiscountedat8.5%.ThecashflowprojectionsarebasedontheassumptionthattheGroupcanrealiseprojectedsales.Aprudentapproachhasbeenappliedwithnoresidualvaluebeingfactored.Attheperiodend,basedontheseassumptionstherewasnoindicationofimpairmentofthevalueofgoodwillorofdevelopmentcosts.

However,iftheprojectedsalesdonotmaterialisethereisariskthatthevalueoftheintangibleassetsshownabovewouldbeimpaired.

ThecarryingamountoftheGroup’sgoodwillonconsolidationasat31December2008isdisclosedintheNote11tothefinancialstatements.

(vii)Incometaxes

TheGrouphasexposuretoincometaxesinnumerousjurisdictions.Therearecertaintransactionsandcomputationforwhich theultimate taxdetermination isuncertainduring theordinarycourseofbusiness.Significant judgementis involved especially in determining tax base allowances and deductibility of certain expenses in determining theGroup-wideprovisionforincometaxes.TheGrouprecognisesliabilitiesforexpectedtaxissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.


2� MOBILITYONE LIMITED ANNuAL rEpOrT 2008


Estimationuncertaintyandcriticaljudgements(continued)

(viii)Contingentliabilities

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

TheDirectorsareoftheopinionthatprovisionarenotrequiredinrespectofthecontingentliabilitiesasdisclosedinNote35asitisnotprobablethatfuturesacrificeofeconomicbenefitswillberequiredortheamountisnotcapableofreliablemeasurement.

IFRSANDIASUPDATEFOR31DECEMBER2008ACCOUNTS

(a) Standardsandinterpretationseffectivein2008

There is no standard and interpretations beginning on or after 1 January 2008 that is relevant to the Groupoperations.

(b) StandardsandamendmentsearlyadoptedbytheGroup

TheGrouphasnotearlyadoptedanystandardsoramendments.

(c) Interpretationseffectivein2008butnotrelevant

Thefollowinginterpretationtopublishedstandardsismandatoryforaccountingperiodsbeginningonorafter1January2008butisnotrelevanttotheGroup’soperations:• IFRIC12,‘Serviceconcessionarrangements’;• IFRIC13,‘Customerloyaltyprogrammes’;and• IFRIC14IAS19,‘Thelimitonadefinedasset,minimumfundingrequirementsandtheirinteraction’(effectivefrom

1January2008).

(d) Standards,amendmentsandinterpretationstoexistingstandardsthatarenotyeteffectiveandhavenotbeenearlyadoptedbytheGroup

ThefollowingstandardsandamendmentstoexistingstandardshavebeenpublishedandaremandatoryfortheGroup’saccountingperiodsbeginningonorafter1January2009orlaterperiods,buttheGrouphasnotearlyadoptedthem:• IAS1(Revised),‘Presentationoffinancialstatements’(effectivefrom1January2009).• IFRS2(Amendment),‘Share-basedpayment’(effectivefrom1January2009).• IFRS8,‘Operatingsegments’,(effectivefrom1January2009).• IAS27(Amendment),‘Consolidatedandseparatefinancialstatements’(effectivefrom1January2009).• IAS36(Amendment),‘Impairmentofassets’(effectivefrom1January2009).• IAS38(Amendment),‘Intangibleassets’(effectivefrom1January2009).• IAS39(Amendment),‘Financialinstruments:Recognitionandmeasurement’(effectivefrom1January2009).




IFRSANDIASUPDATEFOR31DECEMBER2008ACCOUNTS(continued)

• ThereareanumberofminoramendmentstoIFRS7,‘Financialinstruments:Disclosures’,IAS8,‘Accountingpolicies,changesinaccountingestimatesanderrors’,IAS10,‘Eventsafterthereportingperiod’,IAS18,‘Revenue’andIAS34,‘Interimfinancialreporting’.

(e) InterpretationsandamendmentstoexistingstandardsthatarenotyeteffectiveandnotrelevantfortheGroup’s

operations

ThefollowinginterpretationsandamendmentstoexistingstandardshavebeenpublishedandaremandatoryfortheGroup’saccountingperiodsbeginningonorafter1January2009orlaterperiodsbutarenotrelevantfortheGroup’soperations:

• IFRS1(Amendment)‘FirsttimeadoptionofIFRS’,andIAS27‘Consolidatedandseparatefinancialstatements’

(effectivefrom1January2009).• IFRS3(Revised),‘Businesscombinations’(effectivefrom1July2009).• IFRS5(Amendment),‘Non-currentassetsheld-for-saleanddiscontinuedoperations’(andconsequentialamendments

toIFRS1,‘First-timeadoption’)(effectivefrom1July2009).• IAS1(Amendment),‘Presentationoffinancialstatements’–‘Puttablefinancialinstrumentsandobligationsarising

onliquidation’(effectivefrom1January2009).• IAS16(Amendment),‘Property,plantandequipment’(andconsequentialamendmenttoIAS7,‘Statementofcash

flows’)(effectivefrom1January2009).• IAS19(Amendment),‘Employeesbenefits’(effectivefrom1January2009).• IAS20(Amendment),‘Accountingforgovernmentgrantsanddisclosureofgovernmentassistance’(effectivefrom

1January2009).• IAS23(Amendment),‘Borrowingcosts’(effectivefrom1January2009).• IAS28(Amendment),‘Investmentsinassociates’(andconsequentialamendmentstoIAS32,‘FinancialInstruments:

Presentation’andIFRS7,‘Financialinstruments:Disclosures’)(effectivefrom1January2009).• IAS29(Amendment),‘Financialreportinginhyperinflationaryeconomies’(effectivefrom1January2009).• IAS31(Amendment),‘Interestinjointventures’(andconsequentialamendmentstoIAS32andIFRS7)(effective

from1January2009).• IAS40(Amendment),‘Investmentproperty’(andconsequentialamendmentstoIAS16)(effectivefrom1January

2009).• IAS41(Amendment),‘Agriculture’(effectivefrom1January2009).• IFRIC15,‘Agreementsforconstructionofrealestate’(effectivefrom1January2009).• TheminoramendmentstoIAS20‘Accountingforgovernmentgrantsanddisclosureofgovernmentassistance’,

and IAS 20, ‘Financial reporting in hyperinflationary economies’, IAS 40, ‘ Investment property’, and IAS 41,‘Agriculture’.

• IFRIC16,‘Hedgesofanetinvestmentinaforeignoperation’.

Basisofconsolidation

TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandentitiescontrolledbytheCompany(itssubsidiarycompanies)madeupto31Decembereachyear.ControlisachievedwheretheCompanyhasthepowertogovernthefinancialandoperatingpoliciesofaninvesteeentitysoastoobtainbenefitsfromitsactivities.


2� MOBILITYONE LIMITED ANNuAL rEpOrT 2008

2. ACCOUNTINGPOLICIES(Continued) Basisofconsolidation(continued)

Transactions,balancesandunrealisedgainsontransactionsbetweenGroupcompaniesareeliminated.Unrealisedlossesarealsoeliminatedbutconsideredanimpairmentindicatoroftheassettransferred.Accountingpoliciesofitssubsidiarycompanieshavebeenchanged(wherenecessary)toensureconsistencywiththepoliciesadoptedbytheGroup.

(i) Subsidiarycompanies

SubsidiarycompaniesareentitiesoverwhichtheGrouphastheabilitytocontrolthefinancialandoperatingpoliciessoastoobtainbenefitsfromtheiractivities.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGrouphassuchpoweroveranotherentity.

IntheCompany’sseparatefinancialstatements,investmentsinsubsidiarycompaniesarestatedatcostlessimpairmentlosses.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedinprofitorloss.

(ii) Basisofconsolidation

Thesharecapitalintheconsolidatedstatementofchangesinequityfortheboththecurrentandcomparativeperiodusesahistoricexchangeratetodeterminetheequityvalue.

On22June2007MobilityOneLimitedacquiredtheentireissuedsharecapitalofMobilityOneSdn.Bhd.bywayofashareforshareexchange,underIFRSthistransactionmeetsthecriteriaofaReverseAcquisition.TheconsolidatedaccountshavethereforebeenpresentedundertheReverseAcquisitionAccountingprinciplesofIFRS3andshowcomparativesforMobilityOneSdn.Bhd..Forfinancialreportingpurposes,MobilityOneSdn.Bhd.(thelegalsubsidiarycompany)istheacquirerandMobilityOneLimited(thelegalparentcompany)theacquiree.

TheconsolidatedfinancialstatementspreparedfollowingtheacquisitionissuedinthenameofMobilityOneLimited,buttheyareacontinuanceofthefinancialstatementsofMobilityOneSdn.Bhd..Thereforetheassetsandliabilitiesof MobilityOne Sdn. Bhd. have been recognised and measured in these consolidated financial statements at theirpre-combinationcarryingvalues.TheretainedearningsandotherequitybalancesrecognisedintheseconsolidatedfinancialstatementsaretheretainedearningsandotherequitybalancesofMobilityOneSdn.Bhd.immediatelybeforethebusinesscombination.

TheamountrecognisedasissuedequityinstrumentsintheseconsolidatedfinancialstatementshasbeendeterminedbyaddingtheissuedequityofMobilityOneSdn.Bhd.immediatelybeforethebusinesscombinationtothecostoftheconsiderationassetoutonnote27.However,theequitystructureappearingintheseconsolidatedfinancialstatements(thenumberandtypeofequityinstrumentsissued)reflecttheequitystructureofMobilityOneLimited,includingequityinstrumentsissuedbytheCompanytoeffecttheconsolidation.

Wherenecessary,adjustmentsaremadetothefinancialstatementsofsubsidiarycompaniestobringtheaccountingpoliciesusedintolinewiththoseusedbytheGroup.

Allinter-groupbalancesandtransactions,includingunrealisedprofitsarisingfromintra-grouptransactions,areeliminatedfullyonconsolidation.



2. ACCOUNTINGPOLICIES(Continued) Basisofconsolidation(continued)

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

NogoodwillhasbeenrecordedandthedifferencebetweentheparentCompany’scostofinvestmentandMobilityOneSdn.Bhd.’ssharecapitalandsharepremiumispresentedasareverseacquisitionreservewithinequityonconsolidation.

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

AspermittedbyandinaccordancewithArticle110oftheCompanies(Jersey)Law1991,aseparateprofitandlossaccountofMobilityOneLimited,isnotpresented.

Revenuerecognition

RevenueisrecognisedwhenitisprobablethateconomicbenefitsassociatedwiththetransactionwillflowtotheGroupandtheamountoftherevenuecanbemeasuredreliably.

(i) Revenuefromtradingactivities

RevenueinrespectofusingtheGroup’se-Channelplatformarisesfromthesalesofprepaidcredit,salescommissionsreceivedandfeespertransactionchargedtocustomers.Revenueforsalesofprepaidcreditisdeferreduntilsuchtimeastheproductsandservicesaredeliveredtoendusers.Salescommissionsandtransactionfeesarereceivedfromvariousproductandservicesprovidersandarerecognisedwhentheservicesarerenderedandtransactionsarecompleted.

Revenuefromsolutionsalesandconsultancycomprisesalesofsoftwaresolutions,hardwareequipment,consultancyfeesandmaintenanceandsupportservices.Forsalesofhardwareequipment,revenueisrecognisedwhenthesignificantrisksassociatedwiththeequipmentaretransferredtocustomersortheexpiryoftherightofreturn.Forallotherrelatedsales, revenue is recognisedupondelivery tocustomersandover theperiod inwhichservicesareexpected tobeprovidedtocustomers.

(ii) Interestincome

Interestincomeisrecognisedonatimeproportionbasisthattakesintoaccounttheeffectiveyieldontheasset.

Employeebenefits

(i) Shorttermemployeebenefits

Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasanexpenseintheperiodinwhichthe associatedservicesarerenderedbyemployeesoftheGroup.Shorttermaccumulatingcompensatedabsencessuch




Employeebenefits(continued)

aspaidannualleavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensationabsences.Short termnon-accumulatingcompensatedabsencessuchassickandmedical leavearerecognisedwhentheabsencesoccur.

Theexpectedcostofaccumulatingcompensatedabsencesismeasuredastheadditionalamountexpectedtobepaidasaresultoftheunusedentitlementthathasaccumulatedatthebalancesheetdate.

(ii) Definedcontributionplans

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

Financeleases

Assetsfinancedbyleasingarrangements,whichgiverightsapproximatingtoownership,aretreatedasiftheyhadbeenpurchasedoutrightandarecapitalisedanddepreciatedovertheshorteroftheestimatedusefullifeoftheassetsandtheperiodoftheleases.Thecapitalelementoffuturerentalsistreatedasaliabilityandtheinterestelementischargedagainstprofitsinproportiontothebalancesoutstanding.Therentalcostsofallotherleasedassetsarechargedagainstprofitsonastraight-linebasisovertheleaseterm.

Operatingleases

Leases inwhichasignificantportionof therisksandrewardsofownershipareretainedby the lessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofincentivesreceivedfromthelessor)arechargedtotheincomestatement.

Functionalcurrencytranslation

(i) Functionalandpresentationcurrency

ItemsincludedinthefinancialstatementsofeachoftheGroup’sentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(thefunctionalcurrency).ThefunctionalcurrencyoftheGroupisRinggitMalaysia(RM).TheconsolidatedfinancialstatementsarepresentedinPoundSterling(£),whichistheCompany’spresentationalcurrencyasthisisthecurrencyusedinthecountryinwhichtheentityislisted.

AssetsandliabilitiesaretranslatedintoPoundSterling(£)atforeignexchangeratesrulingatthebalancesheetdate.ResultsandcashflowsaretranslatedintoPoundSterling(£)usingaverageratesofexchangefortheperiod.

(ii) Transactionsandbalances

Foreigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingexchangeratesprevailingatthedatesofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedintheincomestatement.




Functionalcurrencytranslation(continued) Thefinancialinformationsetoutbelowhasbeentranslatedatthefollowingrates: Exchangerate(RM:£) Atbalance Averagefor sheetdate year yearended31December2008 5.00 6.16 yearended31December2007 6.62 6.87

Taxation

Taxationontheprofitorlossforthefinancialperiodcomprisescurrentanddeferredtax.Currenttaxistheexpectedamountoftaxespayableinrespectofthetaxableprofitforthefinancialperiodandismeasuredusingthetaxratesthathavebeenenactedatthebalancesheetdate.

Deferredtaxisrecognisedontheliabilitymethodforalltemporarydifferencesbetweenthecarryingamountofanassetorliabilityinthebalancesheetanditstaxbaseatthebalancesheetdate.Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.Deferredtaxisnotrecognisedifthetemporarydifferencearisesfromgoodwillornegativegoodwillorfromtheinitialrecognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealisedortheliabilityissettled,basedonthetaxratesthathavebeenenactedorsubstantivelyenactedbythebalancesheetdate.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdateandisreducedtotheextentthatitbecomesprobablethatsufficientfuturetaxableprofitwillbeavailable.

Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity, inwhichcasethedeferredtaxisalsochargedorcrediteddirectly inequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillornegativegoodwill.

Intangibleassets

(i) Researchanddevelopmentcosts

Allresearchcostsarerecognisedintheincomestatementasincurred.

ExpenditureincurredonprojectstodevelopnewproductsiscapitalisedanddeferredonlywhentheGroupcandemonstratethetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale,itsintentiontocompleteanditsabilitytouseorselltheasset,howtheassetwillgeneratefutureeconomicbenefits,theavailabilityofresourcestocompletetheprojectandtheabilitytomeasurereliablytheexpenditureduringthedevelopment.Productdevelopmentexpenditureswhichdonotmeetthesecriteriaareexpensedwhenincurred.



2. ACCOUNTINGPOLICIES(continued)

Intangibleassets(continued)

Developmentcosts,consideredtohavefiniteusefullives,arestatedatcostlessanyimpairmentlossesandareamortisedthroughotheroperatingexpensesintheincomestatementusingthestraight-linebasisoverthecommerciallivesoftheunderlyingproductsnotexceedingfiveyears.Impairmentisassessedwheneverthereisanindicationofimpairmentandtheamortisationperiodandmethodarealsoreviewedatleastateachbalancesheetdate.

(ii) Goodwillonconsolidation

Goodwillacquiredinabusinesscombinationisinitiallymeasuredatcost,representingtheexcessofthepurchasepriceovertheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilities.

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

Gainsorlossesonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.

Impairmentofassets

The carrying amounts of assets are reviewed at each reporting date to determine whether there is any indication ofimpairment.

Ifanysuchindicationexiststhentheasset’srecoverableamountisestimated.Forgoodwillthathasanindefiniteusefullife,recoverableamountisestimatedateachreportingdateormorefrequentlywhenindicationsofimpairmentareidentified.

Animpairment lossisrecognisedif thecarryingamountofanassetor itscash-generatingunitexceedsitsrecoverableamountunlesstheassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossisrecogniseddirectlyagainstanyrevaluationsurplusfortheassettotheextentthattheimpairmentlossdoesnotexceedtheamountintherevaluationsurplusforthatsameasset.Acash-generatingunitisthesmallestidentifiableassetgroupthatgeneratescashflowsthatarelargelyindependentfromotherassetsandgroups.Impairmentlossesarerecognisedintheincomestatementintheperiodinwhichitarises.Impairmentlossesrecognisedinrespectofcash-generatingunitsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheunitsandthentoreducethecarryingamountoftheotherassetsintheunit(groupofunits)onaproratabasis.

Therecoverableamountofanassetorcash-generatingunitisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.

Impairmentlossongoodwillisnotreversedinasubsequentperiod.Animpairmentlossforanassetotherthangoodwillisreversedif,andonlyif,therehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Thecarryingamountofanassetotherthangoodwillisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Areversalofimpairmentlossforanassetotherthangoodwillisrecognisedintheincomestatementunlesstheassetiscarriedatrevaluedamount,inwhichcase,suchreversalistreatedasarevaluationincrease.



2. ACCOUNTINGPOLICIES(continued)

Property,plantandequipment

(i) Recognitionandmeasurement

Property,plantandequipmentarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses.

Cost includesexpenditures thataredirectlyattributable to theacquisitionof theasset.Thecostofself-constructedassets includes thecostofmaterialsanddirect labour,anyothercostsdirectlyattributable tobringing theasset toworkingconditionforitsintendeduse,andthecostsofdismantlingandremovingtheitemsandrestoringthesiteonwhichtheyarelocated.Purchasedsoftwarethatisintegraltothefunctionalityoftherelatedequipmentiscapitalisedaspartofthatequipment.

Thecostofproperty,plantandequipmentrecognisedasaresultofabusinesscombinationisbasedonfairvalueatacquisitiondate.Thefairvalueofpropertyistheestimatedamountforwhichapropertycouldbeexchangedonthedateofvaluationbetweenawillingbuyerandawillingsellerinanarm’slengthtransactionafterpropermarketingwhereinthepartieshadeachactedknowledgeably,prudentlyandwithoutcompulsion.Thefairvalueofotheritemsofplantandequipmentisbasedonthequotedmarketpricesforsimilaritems.

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

(ii) Subsequentcosts

Thecostofreplacingpartofanitemofproperty,plantandequipmentisrecognisedinthecarryingamountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthepartwillflowtotheGroupanditscostcanbemeasuredreliably.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedintheincomestatementasincurred.

(iii) Depreciation

Depreciationisrecognisedintheincomestatementonastraight-linebasisovertheestimatedusefullivesofproperty,plantandequipment.Leasedassetsaredepreciatedovertheshorteroftheleasetermandtheirusefullives.Property,plantandequipmentunderconstructionarenotdepreciateduntiltheassetsarereadyfortheirintendeduse.

Theestimatedusefullivesforthecurrentandcomparativeperiodsareasfollows:

Building 50yearsElectronicDataCaptureequipment 10yearsComputerequipment 5yearsComputersoftware 10yearsFurnitureandfittings 10yearsOfficeequipment 10yearsRenovation 10years

Thedepreciableamountisdeterminedafterdeductingtheresidualvalue.




Property,plantandequipment(continued)

Depreciationmethods,usefullivesandresidualvaluesarereassessedateachfinancialperiodend.

Upondisposalofanasset,thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetsischargedorcreditedtotheincomestatement.Ondisposalofarevaluedasset,theattributablerevaluationsurplusremainingintherevaluationreserveistransferredtothedistributionreserve.

Investments

Investmentsinsubsidiarycompaniesarestatedatcostlessanyprovisionforimpairment.

Prepaidleasepayments

Leaseholdlandthatnormallyhasanindefiniteeconomiclifeanditstitleisnotexpectedtopasstothelesseebytheendoftheleasetermistreatedasanoperatinglease.Thepaymentmadeonenteringintooracquiringa leasehold landisaccountedasprepaidleasepaymentsthatisamortisedovertheleasetermexceptforleaseholdlandclassifiedasinvestmentproperty.Thelandandbuildingelementsofaleaseoflandandbuildingsareconsideredseparatelyforthepurposesofleaseclassification.

Availableforsalefinancialassets

TheGroup’sinvestmentinequitysecuritiesandcertaindebtsecuritiesareclassifiedasavailableforsalefinancialassets.Subsequenttoinitialrecognition,theyaremeasuredatfairvalueandchangestherein,otherthanimpairmentlossesandforeignexchangegainsandlossesonavailableforsalemonetaryitems,arerecogniseddirectlyinequity.Whenaninvestmentisderecognised,thecumulativegainorlossinequityistransferredtoprofitorloss.Ifanequityinstrumentcannotbereliablymeasured,thenitiscarriedatamortisedcost.

Inventories

Inventoriesarevaluedatthelowerofcostandnetrealisablevalueandaredeterminedonthefirst-in-first-outmethod,aftermakingdueallowanceforobsoleteandslowmovingitems.Netrealisablevalueisbasedonestimatedsellingpriceintheordinarycourseofbusinesslessthecostsofcompletionandsellingexpenses.Tradeandotherreceivables

Tradeandotherreceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredattheircostwhenthecontractualrighttoreceivecashorotherfinancialassetsfromanotherentityisestablished.

AprovisionfordoubtfuldebtsismadewhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisationanddefaultordelinquencyinpaymentsareconsideredindicatorsthatatradeandotherreceivablesareimpaired.




Cashandcashequivalents

Cashandcashequivalentsincludecashinhand,depositsheldatcallwithbanks,othershort-termhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlesswhichhaveaninsignificantriskofchangesinvalueandbankoverdrafts.Forthepurposeofcashflowstatement,cashandcashequivalentsarepresentednetofbankoverdrafts.Non-currentassetsheldforsale

Non-currentassetsareclassifiedasheldforsaleandstatedatthelowerofcarryingamountandfairvaluelesscosttosellif theircarryingamountwillberecoveredprincipally throughasaletransactionratherthanthroughcontinuinguse.Thisconditionisregardedametonlywhenthesaleishighlyprobableandtheassetisavailableforimmediatesaleinitspresentconditionsubjectonlytotermsthatareusualandcustomary.

Tradeandotherpayables

Tradeandotherpayablesarerecognisedinitiallyatfairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.

Borrowingcosts

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets,whichareassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,arecapitalisedaspartofthecostofthoseassets,untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.

Whentheborrowingsaremadespecificallyforthepurposeofobtainingaqualifyingasset,theamountofborrowingcostseligible forcapitalisation is theactualborrowingcosts incurredonthatborrowingduring theperiod lessany investmentincomeonthetemporaryinvestmentoffundsdrawndownfromthoseborrowings.Whentheborrowingsaremadegenerally,andusedforthepurposeofobtainingaqualifyingasset,theborrowingcostseligibleforcapitalisationaredeterminedbyapplyingacapitalisationratewhichisweightedontheborrowingcostsapplicabletotheGroup’sborrowingsthatareoutstandingduringthefinancialperiod,otherthanborrowingsmadespecificallyforthepurposeofacquiringanotherqualifyingasset.

Borrowingcostswhicharenoteligibleforcapitalisationarerecognisedasanexpenseintheincomestatementintheperiodinwhichtheyareincurred.

Equityinstruments

InstrumentsthatevidencearesidualinterestintheassetsoftheGroupafterdeductingallofitsliabilitiesareclassifiedasequityinstruments.Issuedequityinstrumentsarerecordedatproceedsreceivednetofdirectissuecosts.

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofnewsharesoroptionsareshowninequityasadeduction,netofvalueaddedtax,fromtheproceeds.




Financialinstruments

Financialinstrumentscarriedonthebalancesheetincludecashandbankbalances,deposits,investments,receivables,payablesandborrowings.FinancialinstrumentsarerecognisedinthebalancesheetwhentheGrouphasbecomeapartytothecontractualprovisionsoftheinstrument.

Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement.Interest,dividendsandgainsandlossesrelatingtoafinancialinstrumentclassifiedasaliability,arereportedasanexpenseor income.Distributions toholdersof financial instruments classifiedasequityare chargeddirectly toequity.FinancialinstrumentsareoffsetwhentheGrouphasalegallyenforceablerighttooffsetandintendstosettleeitheronanetbasisortorealisetheassetandsettletheliabilitysimultaneously.Theparticularrecognitionmethodadoptedforfinancial instrumentsrecognisedonthebalancesheetisdisclosedintheindividualaccountingpolicystatementsassociatedwitheachitem.

SharebasedpaymentsChargesforemployeesservicesreceivedinexchangeforsharebasedpaymentshavebeenmadeforalloptionsgrantedinaccordancewithIFRS2“ShareBasedPayments”optionsgrantedundertheGroup’semployeeshareschemeareequitysettled.ThefairvalueofsuchoptionshasbeencalculatedusingaBlack-Scholesmodel,baseduponpubliclyavailablemarketdata,andischargedtotheincomestatementoverthevestingperiod.

3. FINANCIALINSTRUMENTS

(a) Financialriskmanagementobjectivesandpolicies

TheGroupandtheCompany’sfinancialriskmanagementpolicy istoensurethatadequatefinancialresourcesareavailableforthedevelopmentoftheGroupandoftheCompany’soperationswhilstmanagingitsfinancialrisks,includinginterestraterisk,creditrisk,foreigncurrencyexchangerisk,liquidityandcashflowriskandcapitalrisk.TheGroupandtheCompanyoperateswithinclearlydefinedguidelinesthatareapprovedbytheBoardandtheGroup’spolicyisnottoengageinspeculativetransactions.

(b) Interestraterisk

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

TheGroup’s interestrateriskarisesprimarily frominterest-bearingborrowings.BorrowingsatfloatingratesexposetheGrouptocashflowinterestraterisk.BorrowingsobtainedatfixedratesexposetheGrouptofairvalueinterestraterisk.



3.

FIN

AN

CIA

LIN

ST

RU

ME

NT

S(

Co

nti

nu

ed)

The

follo

win

gta

bles

set

out

the

car

ryin

gam

ount

s,t

hew

eigh

ted

aver

age

effe

ctiv

ein

tere

str

ates

(W

AE

IR)

asa

tth

eba

lanc

esh

eet

date

and

the

re

mai

ning

mat

uriti

eso

fthe

Gro

up’s

fina

ncia

lins

trum

ents

that

are

exp

osed

toin

tere

str

ate

risk:

At3

1D

ecem

ber

2008

Fix

edr

ate:

Fix

edd

epos

itTe

rmlo

ans

Flo

atin

gra

te:

Ban

kers

’acc

epta

nce

Term

loan

s

At3

1D

ecem

ber

2007

Fix

edr

ate:

Fix

edd

epos

it

Flo

atin

gra

te:

Ban

kers

’acc

epta

nce

Term

loan

s

Tota

l £

216,

098

(98,

741)

(587

,130

)(1

82,4

47)

162,

443

(348

,308

)(1

61,5

07)

4-5

year

s £ - - -(3

2,64

7) - -(2

4,66

1)

2-3

year

s £ - - -(3

2,64

7) - -(2

4,66

1)

Wit

hin

1ye

ar £

216,

098

(68,

496)

(587

,130

)(3

2,64

7)

162,

443

(348

,308

)(2

4,66

1)

Mo

ret

han

5ye

ars £ - - -

(19,

212) - -

(38,

202)

3-4

year

s £ - - -(3

2,64

7) - -(2

4,66

1)

1-2

year

s £ -(3

0,24

5) -(3

2,64

7) - -(2

4,66

1)

WA

EIR %

3.10

5.97

6.71

9.34

3.10

6.14

7.84

No

te

20 25 25 25 20 25 25



3. FINANCIALINSTRUMENTS(Continued)

(c) Creditrisk

TheGroup’sandtheCompany’sexposuretocreditriskarisesmainlyfromreceivables.Receivablesaremonitoredonanongoingbasisviamanagementreportingprocedureandactionistakentorecoverdebtswhendue.Ateachbalancesheetdate,therewasnosignificantconcentrationofcreditrisk.ThemaximumexposuretocreditriskfortheGroupandtheCompanyisthecarryingamountofthefinancialassetsshowninthebalancesheet.

(d) Foreigncurrencyexchangerisk

TheGroupandtheCompanyisexposedtoforeigncurrencyriskonsales,purchasesandborrowingsthataredenominatedinacurrencyotherthanRinggitMalaysia.ThecurrencygivingrisetothisriskisprimarilyUSdollars.TheGroupandtheCompanymaintainsanaturalhedgethatminimisestheforeignexchangeexposurebymatchingforeigncurrencyincomewithforeigncurrencycosts.

TheGroupdoesnotconsideritnecessarytoenterintoforeignexchangecontractsinmanagingitsforeignexchangeriskresultingfromcashflowsfromtransactionsdenominatedinforeigncurrency,giventhenatureofthebusinessforthetimebeing.

ThenetunhedgedfinancialassetoftheGroupthataredenominatedinitsfunctionalcurrencyareasfollows:

USDollars Total £ £

Group At31December2008 Tradereceivables 8,204 8,204 Group At31December2007 Tradereceivables - -

(e) Liquidityandcashflowrisks

TheGroupand theCompanyseeks toachieveaflexibleandcosteffectiveborrowingstructure toensure that theprojectednetborrowingneedsarecoveredbyavailablecommittedfacilities.DebtmaturitiesarestructuredinsuchawaytoensurethattheamountofdebtmaturinginanyoneyeariswithintheGroup’sandtheCompany’sabilitytorepayand/orrefinance.

TheGroupandtheCompanyalsomaintainsacertainlevelofcashandcashconvertibleinvestmentstomeetitsworkingcapitalrequirements.


NetFinancialAsset HeldinNon-

FunctionalCurrency


3. FINANCIALINSTRUMENTS(Continued)

(f) Capitalrisk

TheGroup’sandtheCompany’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sandtheCompany’sabilitytocontinueasagoingconcerninordertoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.Inordertomaintainoradjustthecapitalstructure,theGroupandtheCompanymayadjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesorsellassetstoreducedebt.

(g) ThecarryingamountsoffinancialliabilitiesoftheGroupandtheCompanyatthebalancesheetdateapproximatedtheirfairvaluesexceptforthefollowing:

Theaggregatefairvaluesoftheotherfinancialliabilitiesareasfollows:

GroupFinancialliabilitiesBankborrowingsContingentliabilities

@ Itisnotpracticabletoestimatethefairvalueofcontingentliabilitiesreliablyduetotheuncertaintiesoftiming,costandeventualoutcome.

The following methods and assumptions are used to estimate the fair values of the following classes of financialinstruments:

(i) Thecarryingamountsofcashandcashequivalents,tradeandotherreceivables/payablesandshorttermborrowingsapproximatefairvaluesduetotherelativelyshorttermmaturityofthesefinancialinstruments.

(ii) Thefairvalueofborrowingsisestimatedbydiscountingtheexpectedfuturecashflowsusingthecurrentinterestratesforliabilitieswithsimilarriskprofiles.

Fairvalue£

123,484@

Carryingamount

£

150,1377,556

2007

Fairvalue£

147,591@

Carryingamount

£

180,045134,019

2008



4. EMPLOYEESANDDIRECTORS

EMPLOYEEWages,salariesandbonusesSocialsecuritycontributionContributiontodefinedcontributionplanOtherstaffrelatedexpenses

Less:Capitalisedindevelopmentcosts

DIRECTORSFeesWages,salariesandbonusesSocialsecuritycontributionContributiontodefinedcontributionplanTotalremunerationLess:Capitalisedindevelopmentcosts

5. SEGMENTALANALYSIS

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

6. FINANCECOSTS

RedeemablecumulativeconvertiblepreferencesharesdividendBankers’acceptanceinterestTermloansinterest

2007£

363,9114,381

43,538-

411,830(55,097)

356,733

58,49845,808

905,497

109,893(14,660)

95,233

2007£

12,99725,21913,044

51,260

2008£

270,9123,182

29,15034,577

337,821(73,543)

264,278

120,29598,047

2359,946

228,523(23,589)

204,934

2008£

-28,54919,798

48,347

Group

Group



7. (LOSS)/PROFITBEFORETAX

The(loss)/profitbeforetaxisstatedaftercharging/(crediting):

Auditors’remunerationAuditors’remunerationunderprovidedinrespectofthecompanyfor2007Employeebenefitsexpense(excludingDirectors’remuneration)Directors’remunerationDepreciationAmortisationofprepaidleasepaymentsAmortisationofintangibleassetsAmortisationofdevelopmentcostsProperty,plantandequipmentwrittenoffInventorieswrittenoffOperatingleaseexpenseInterestincomeRentalincomeGrantincomeLoss/(gain)onforeignexchange-realised-unrealised

IncludedintheauditfeefortheGroupisanamountof£9,000inrespectoftheCompany.

2007£

2,836-

356,73395,23384,3302,617

55,558---

18,485(625)

-(43,632)

--

2008£

12,4249,000

264,278204,934170,448

2,92061,99655,55394,842

123,51921,340

(14,963)(2,840)

(111,416)

2,267(5,753)

Group



8. TAX

Currenttaxexpense:UKcorporationtaxfortheyearForeigntaxUnderprovisioninprioryears:Foreigntax

Deferredtax:-relatingtooriginationandreversaloftemporarydifferences-effectofchangesintaxrate-(over)/underprovisioninprioryear

Areconciliationofincometaxexpenseapplicableto(loss)/profitbeforetaxatthestatutoryincometaxratetoincometaxexpenseattheeffectiveincometaxrateoftheGroupisasfollows:

(Loss)/profitbeforetax

TaxationatUKCorporationtaxrateof28.5%(2007:30%)EffectofdifferenttaxratesinothercountriesTaxbenefitapplicabletosmallandmediumcompaniesPioneerstatustaxincentiveEffectofexpensesnotdeductiblefortaxEffectofchangesintaxrateDefferedtaxnotrecognisedinrespectofcurrentyear’staxlossesand unabsordedcapitalallowancesTemporarydifferencesinrespectofproperty,plantandequipmentnotrecognisedUnderprovisionoftaxexpensesinprioryear(Over)/underprovisionofdeferredtaxinprioryear

Taxexpensefortheyear

Currentincometaxiscalculatedattheweightedaveragetaxrateof28.5%(2007:30%),astheratechangedto28%fromApril2008.

Thedirectsubsidiarycompany,MobilityOneSdn.Bhd.,wasgrantedPioneerStatusbytherelevantauthoritiesforaperiodoffiveyearseffectivefrom27April2005to26April2010.

2007£

--

1,7241,724

592(1,233)31,08530,444

32,168

2007£

765,257

229,577(25,321)

(73)(229,744)

26,153(1,233)

--

1,72431,085

32,168

2008£

--

253253

--

(37,148)(37,148)

(36,895)

2008£

(916,047)

(261,072)15,403

-(28,968)150,160

-

194,663(70,186)

253(37,148)

(36,895)

Group

Group



9. LOSSOFCOMPANY

TheincomestatementoftheCompanyisnotpresentedaspartofthesefinancialstatements.TheCompany’sprofitforthefinancialyearwas£1,509,319(2007:lossforthefinancialperiodwas£16,959).

10. EARNINGSPERSHARE

Consolidated(loss)/profitaftertaxation(£)Adjustedconsolidated(loss)/profitaftertaxation(£)

WeightedaveragenumberofsharesinissueFullydilutedweightedaveragenumberofsharesinissue

Basicearningspershare(pence)Dilutedearningspershare(pence)

Thebasicearningspershareiscalculatedbydividingthelossof£876,818(2007:profitof£733,089)attributabletoordinaryshareholdersbytheweightedaveragenumberofordinarysharesoutstandingduringtheyear,whichis79,547,278(2007:87,669,255).

Thedilutedearningspershareiscalculatedusingtheweightedaveragenumberofsharesadjustedtoassumetheconversionofalldilutivepotentialordinaryshares.Fortheyearended31December2008,thedilutedearningspershareisequivalenttothebasicearningspershareastheexercisepriceoftheshareoptionsisabovethecurrentmarketprice.

2007

733,089733,089

87,669,25587,669,255

0.840.84

2008

(876,818)(876,818)

79,547,27879,547,278

(1.10)(1.10)

Group



11. INTANGIBLEASSETS

Cost

At1January2008AdditionsForeignexchangedifferenceBalanceat31December2008

Amortisationandimpairmentlosses

Netbookvalueat31December2008

Cost

At1January2007-aspreviouslystated-transferfromproperty,plantandequipment(Note12)-asrestatedAdditionsForeignexchangedifferenceBalanceat31December2007

Amortisationandimpairmentlosses

Netbookvalueat31December2007

During thefinancialyearended31December2008,certainsoftwarewhichpreviouslyclassifiedasproperty,plantandequipmentwastransferredtointangibleassetincompliancewithIAS38,IntangibleAssets.Thereclassificationofsoftwareasintangibleassethasbeenaccountedforretrospectively.Accordingly,certaincomparativefigureshavebeenreclassifiedasdisclosedinNote38.

TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired,byconsideringthenetpresentvalueofdiscountedcashflowsforecasts.Ifanindicationexistsanimpairmentreviewiscarriedout.Attheyearend,therewasnoindicationofimpairmentofthevalueofgoodwillonconsolidationorofdevelopmentcosts.

Goodwill on consolidation

(a) Impairmenttestingforgoodwillonconsolidation

Goodwillonconsolidationhasbeenallocatedforimpairmenttestingpurposestotheindividualentitieswhichisalsothecash-generatingunits(“CGU”)identified.

Total£

1,689,011181,473519,612

2,390,096

117,549

2,272,547

1,181,990423,753

1,605,74368,99569,831

1,744,569

55,558

1,689,011

Developmentcosts

£

273,637178,28975,690

527,616

55,553

472,063

195,861-

195,86168,9958,781

273,637

-

273,637

Goodwillonconsolidation

£

1,030,3463,184

333,6591,367,189

-

1,367,189

986,129-

986,129-

44,2171,030,346

-

1,030,346

Software£

385,028-

110,263495,291

61,996

433,295

-423,753423,753

-16,833

440,586

55,558

385,028



11. INTANGIBLEASSETS(Continued)

(b) Keyassumptionsusedtodeterminerecoverableamount

TherecoverableamountofaCGUisdeterminedbasedonvalueinusecalculationsusingcashflowprojectionsbasedonfinancialbudgetsapprovedbytheDirectorscoveringaneighteenmonthperiod.TheprojectionsarebasedontheassumptionthattheGroupcanrealiseprojectedsales.Aprudentapproachhasbeenappliedwithnoresidualvaluebeingfactoredintothesecalculations.Iftheprojectedsalesdonotmaterialisethereisariskthatthetotalvalueoftheintangibleassetsshownabovewouldbeimpaired.Apre-taxdiscountrateof8.50%perannumwasappliedtothecashflowprojections,aftertakingintoconsiderationtheGroup’scostofborrowings,theexpectedrateofreturnandvariousrisksrelatingtotheCGU.

Duringthefinancialyear,theGroupdidnotrecogniseanyimpairmentlossinrespectofthegoodwillonconsolidation.

AsignificantproportionofgoodwillonconsolidationrelatestotheacquisitionofNetossSdn.Bhd.whichisaCGUandhasacarryingamountof£1,364,005. It's recoverableamounthasbeendeterminedbasedonvalue inuseusingcashflowprojectionsandkeyassumptionsasdescribedin(b)above.

Development costs

Developmentcostswillnotbeamortisediftheproductisstillinitsdevelopmentphase.Theamortisationofthedevelopmentcostsisover5yearsperiod,whichintheopinionoftheDirectorsisadequate.



12.

PR

OP

ER

TY,

PL

AN

TA

ND

EQ

UIP

ME

NT

Gro

up

31D

ecem

ber

200

8

CO

ST

A

t1J

anua

ry2

008

Add

ition

sTr

ansf

erto

non

-cur

rent

ass

ets

held

for

sale

(N

ote

21)

Dis

posa

lsW

ritte

nof

fF

orei

gne

xcha

nge

diffe

renc

e

At3

1D

ecem

ber

2008

DE

PR

EC

IAT

ION

At1

Jan

uary

200

8C

harg

efo

rth

epe

riod

-rec

ogni

sed

inin

com

est

atem

ent

-rec

ogni

sed

ind

evel

opm

ent

cost

Tran

sfer

ton

on-c

urre

nta

sset

she

ldfo

rsa

le(

Not

e21

)D

ispo

sals

Writ

ten

off

For

eign

exc

hang

edi

ffere

nce

At3

1D

ecem

ber

2008

NE

TC

AR

RY

ING

AM

OU

NT

At3

1D

ecem

ber

2008

Tota

l £

1,30

2,29

915

2,25

3

(207

,067

)(1

4,89

4)(2

75,9

51)

421,

726

1,37

8,36

6

180,

390

170,

448

1,67

2

(12,

198)

(6,6

12)

(159

,048

)98

,450

273,

102

1,10

5,26

4

Offi

ce

equ

ipm

ent £

22,3

40 48

- - -7,

235

29,6

23

4,44

7

2,40

2 - - - -1,

999

8,84

8

20,7

75

Co

mp

ute

rso

ftw

are £

551,

139

351 - -

(5,0

81)

178,

475

724,

884

3,35

9

59,2

21

- - -(1

,041

)14

,863

76,4

02

648,

482

Ele

ctro

nic

D

ata

Cap

ture

eq

uip

men

t £

184,

861

87,8

94

- - -59

,864

332,

619

31,9

65

26,8

43

- - - -16

,596

75,4

04

257,

215

Ren

ovat

ion £

28,9

8221

,930

- - -9,

385

60,2

97

5,63

4

4,29

4 - - - -2,

823

12,7

51

47,5

46

Fu

rnit

ure

an

dfi

ttin

gs £

35,0

5026

,455

- - -11

,350

72,8

55

6,64

9

5,41

1 - - - -3,

410

15,4

70

57,3

85

Co

mp

ute

req

uip

men

t £

323,

512

15,5

75

-(1

4,89

4)(2

70,8

70)

104,

765

158,

088

122,

250

68,9

17

1,67

2 -(6

,612

)(1

58,0

07)

56,0

07

84,2

27

73,8

61

Bu

ildin

g £

156,

415 -

(207

,067

) - -50

,652

-

6,08

6

3,36

0 -

(12,

198) - -

2,75

2 - -



12.

PR

OP

ER

TY,

PL

AN

TA

ND

EQ

UIP

ME

NT

(C

on

tin

ued

)

Gro

up

31D

ecem

ber

200

7

CO

ST

A

t1J

anua

ry2

007

-as

prev

ious

lys

tate

d-t

rans

ferr

edto

inta

ngib

le

asse

ts(

Not

e11

)-a

sre

stat

edA

dditi

ons

Dis

posa

lsF

orei

gne

xcha

nge

diffe

renc

e

At3

1D

ecem

ber

2007

DE

PR

EC

IAT

ION

At1

Jan

uary

200

7-a

spr

evio

usly

sta

ted

-tra

nsfe

rred

toin

tang

ible

as

sets

(N

ote

11)

-as

rest

ated

Cha

rge

for

the

perio

dD

ispo

sals

For

eign

exc

hang

edi

ffere

nce

At3

1D

ecem

ber

2007

NE

TC

AR

RY

ING

AM

OU

NT

At3

1D

ecem

ber

2007

Tota

l £

1,15

7,65

4

(552

,470

)60

5,18

466

9,97

7 -27

,138

1,30

2,29

9

217,

506

(128

,717

)88

,789

84,3

30-

7,27

1

180,

390

1,12

1,90

9

Offi

ce

equ

ipm

ent £

18,9

77

-18

,977

2,51

2 -85

1

22,3

40

2,27

2 -2,

272

1,99

5 -18

0

4,44

7

17,8

93

Co

mp

ute

rso

ftw

are £

562,

950

(552

,470

)10

,480

540,

189 -

470

551,

139

130,

298

(128

,717

)1,

581

1,64

1 -13

7

3,35

9

547,

780

Ele

ctro

nic

D

ata

Cap

ture

eq

uip

men

t £

95,3

07

-95

,307

85,2

80-

4,27

4

184,

861

18,4

27

-18

,427

12,2

36-

1,30

2

31,9

65

152,

896

Ren

ovat

ion £

26,3

55

-26

,355

1,44

4 -1,

183

28,9

82

2,63

6 -2,

636

2,77

2 -22

6

5,63

4

23,3

48

Fu

rnit

ure

an

dfi

ttin

gs £

30,7

14

-30

,714

2,95

8 -1,

378

35,0

50

3,15

6 -3,

156

3,22

5 -26

8

6,64

9

28,4

01

Co

mp

ute

req

uip

men

t £

273,

649 -

273,

649

37,5

94-

12,2

69

323,

512

57,8

86

-57

,886

59,4

50-

4,91

4

122,

250

201,

262

Bu

ildin

g £

149,

702 -

149,

702 - -

6,71

3

156,

415

2,83

1 -2,

831

3,01

1 -24

4

6,08

6

150,

329



12. PROPERTY,PLANTANDEQUIPMENT(Continued)

Thenetcarryingamountofproperty,plantandequipmentpledgedassecurityforborrowings(Note25)areasfollows:

LongtermleaseholdbuildingElectronicDataCaptureequipment

13. PREPAIDLEASEPAYMENTS

COST–LEASEHOLDLANDAt1JanuaryAdditionsTransfertonon-currentassetsheldforsale(Note21)Foreignexchangedifference

At31December

AMORTISATION–LEASEHOLDLANDAt1JanuaryAmortisationfortheyearTransfertonon-currentassetsheldforsale(Note21)Foreignexchangedifference

At31December

NETCARRYINGAMOUNTAt31December

2007£

150,329-

150,329

2008£

-159,579159,579

2007£

164,511--

7,376

171,887

1,5442,617

-171

4,332

167,555

2008£

171,887-

(227,550)55,663

-

4,3322,920

(9,335)2,083

-

-

Group


Group


14. INVESTMENTINSUBSIDIARYCOMPANIES

COSTAt1January

2007£

2,040,930

2008£

2,040,930

Company

NameofSubsidiaryCompany

MobilityOneSdn.Bhd.

DirectsubsidiarycompanyofMobilityOneSdn.Bhd.

NetossSdn.Bhd.

PayStationSdn.Bhd.(Formerly knownasVersatelSdn.Bhd.)

PT.MobilityOneIndonesia

CountryofIncorporation

Malaysia

Malaysia

Malaysia

Indonesia

EffectiveOwnershipInterest

2008 2007 (%) (%) 100 100

100 100 100 -

95 -

PrincipalActivities

Provision of e-Channel products andservices,technologymanagedservicesandsolutionsalesandconsultancy

Provisionofsolutionsalesandservices

Dormant

Provision of e-Channel products andservices,technologymanagedservicesandsolutionsalesandconsultancy

15. INVENTORIES

AtCost:AirtimeSoftwareOthers

2007£

400,866517,189

63

918,118

2008£

343,786534,991

-

878,777

Group



16. TRADERECEIVABLESTheGroup’sandtheCompany’snormaltradecredittermsrangefrom30to60days(2007:30to60days).Othercredittermsareassessedandapprovedonacasetocasebasis.

17. OTHERRECEIVABLES

SundryreceivablesDepositsPrepayments

18. AMOUNTDUEFROMSUBSIDIARYCOMPANY

Thisrepresentsunsecuredinterestfreeadvanceswithnofixedtermofrepayment.

19. AVAILABLEFORSALEFINANCIALASSET

Atcost:QuotedunittrustsinMalaysia

Atmarketvalue:QuotedunittrustsinMalaysia

Therecoverableamountoftheavailableforsalefinancialassetsisbasedonitsfairvaluelesscosttosellbyreferencetoitsmarketpriceatbalancesheetdate.

2007£

1,502,10557,52113,097

1,572,723

2008£

15,13818,17514,920

48,233

Group

2007£

45,514

45,514

2008£

-

-

Group



20. CASHANDCASHEQUIVALENTS

CashinhandandatbanksFixeddepositswithlicensedbanks

TheabovefixeddepositshavebeenpledgedtolicensedbanksassecuritiesforcreditfacilitiesgrantedtotheGroupasdisclosedinNote25tothefinancialstatements.

Includedinfixeddepositswithlicensedbanksisanamountof£100,022(2007:Nil)whichnotentitledtoanydepositinterestandwithnomaturitydate.

TheGroup’sweightedeffectiveinterestratesandmaturitiesofdepositsare3.1%(2007:3.1%)and1month(2007:1month)respectively.

21.NON-CURRENTASSETSHELDFORSALETheGroup’snormaltradecredittermsrangefrom60to90days(2006:60to90days).

Property,plantandequipment(Note12)Prepaidleasepayment(Note13)

Depositsclassifiedasheldforsale(Note23)

(a) ThelandtitlesoftheleaseholdlandisstillintheprocessofbeingregisteredinthenameofMobilityOneSdn.Bhd..

(b) The leasehold landandbuildinghavebeenpledged toa licensedbank forcredit facilitiesgranted to theGroupasdisclosedinNote25tothefinancialstatements.

22.TRADEPAYABLES TheGroup’snormaltradecredittermsrangefrom60to90days(2007:60to90days).

2007£

62,742-

62,742

2008£

3,417-

3,417

Company2007

£

186,033162,443

348,476

2008£

93,965316,120

410,085

Group

2007£

----

-

2008£

194,869218,215413,084(36,808)

376,276

Group



23.OTHERPAYABLES

SundrypayablesDepositsAccruals

Depositsclassifiedasheldforsale(Note21)

24.AMOUNTDUETODIRECTORS

Theseareunsecured,interestfreeandrepayableondemand.

25. FINANCIALLIABILITIES-BORROWINGS

Non-CurrentSecured:TermloansBankers’acceptance

CurrentSecured:TermloansBankers’acceptance

2007£

47,602-

3,95951,561

-

51,561

2008£

204,45237,47417,141

259,067(36,808)

222,259

Group

2007£

150,137-

150,137

11,370348,308

359,678

2008£

180,045-

180,045

101,143587,130

688,273

Group


2007£

-----

-

2008£

34,375-

12,40046,775

-

46,775

Company


25. FINANCIALLIABILITIES-BORROWINGS(Continued)

TotalBorrowingsSecured:TermloansBankers’acceptance

Theabovecreditfacilitiesfromlicensedbankaresecuredbythefollowing:(a) fixedchargeoverthesubsidiarycompany’slongtermleaseholdlandandbuilding;(b) pledgeofElectronicDataCaptureequipmentofthesubsidiarycompany;(c) pledgeoffixeddepositsofthesubsidiarycompany;(d) personalguaranteebyaDirectorofthesubsidiarycompany;and(e) corporateguaranteebytheCompany.

TheweightedaverageeffectiveinterestratesoftheGroupfortheabovefacilitiesareasfollows:

TermloansBankers’acceptance

Thematurityofborrowingsisasfollows:

WithinoneyearBetweenoneandtwoyearsBetweentwoandfiveyearsAfterfiveyears

2007£

161,507348,308

509,815

2007£

359,67812,37444,08093,683

509,815

2007%

7.846.14

2008£

281,188587,130

868,318

2008£

688,27362,89297,94119,212

868,318

2008%

7.666.71

Group

Group

Group



26. DEFERREDTAXLIABILITY

At1JanuaryRecognisedintheincomestatementForeignexchangedifference

At31December

Thecomponentsandmovementsofdeferredtaxliabilityduringtheyearpriortooffsettingareasfollows:

DeferredtaxliabilityoftheGroup:

At1January2008RecognisedintheincomestatementForeignexchangedifferenceAt31December2008

At1January2007RecognisedintheincomestatementForeignexchangedifference

At31December2007

Asat31December2008,theunrecogniseddeferredtaxassetsoftheGroupareasfollows:

UnabsorbedtaxlossesUnabsorbedcapitalallowancesTaxabletemporarydifferences

At31December

Thepotentialnetdeferredtaxassetsamountingto£38,559(2007:Nil)hasnotbeenrecognisedinthefinancialstatementsbecauseitisnotprobablethatfuturetaxableprofitwillbeavailableagainstwhichthesubsidiarycompanycanutilisedthebenefits.

TheavailabilityoftheunusedtaxlossesandunabsorbedcapitalallowancesforoffsettingagainstfuturetaxableprofitsofthesubsidiarycompanyissubjecttonosubstantialchangesinshareholdingsofthesubsidiarycompanyunderSection44(5A)and(5B)ofIncomeTaxAct,1967.

2007£

2,82930,4441,315

34,588

2007£

---

-

Total£

34,588(37,148)

2,560-

2,82930,4441,315

34,588

2008£

34,588(37,148)

2,560

-

2008£

15239,011

(604)

38,559

Property,plantand

equipment£

34,588(37,148)

2,560-

2,82930,4441,315

34,588

Group

Group



27. CALLEDUPSHARECAPITAL

AuthorisedinMobilityOneLimited

At1January2008–ordinarysharesof£0.025each/ At22March2007(dateofincorporation)–ordinary sharesof£0.05eachAt4June2007Subdivisionofsharesfrom£0.05to £0.025pershare

At31December–ordinarysharesof£0.025each

IssuedandfullypaidinMobilityOneLimited

At1January2008–ordinarysharesof£0.025each/ At22March2007(dateofincorporation)–ordinary sharesof£0.05eachAt4June2007Subdivisionofsharesfrom£0.05to £0.025pershareAt4July2007ShareswapAt5July2007IssuanceofsharesAt15January2008Sharebuyback

At31December–ordinarysharesof£0.025each Note:#Denotesamountsarelessthan£1.00

On15January2008, theCompanywaspurchaseda total of14,962,253ordinarysharesat9.31penceper share forcancellationusingtheauthoritygivenbytheshareholderoftheCompanyattheextraordinarygeneralmeetingheldon17December2007.TherepurchasedordinaryshareswerecancelledandremovedfromtradingonAIM.Accordingly,asaresultoftheabovesharebuyback,theissuedsharecapitaloftheCompanywillbe78,974,951ordinarysharesof2.5penceeach.

AmountNumberofordinaryshares2008

£

10,000,000

-

10,000,000

2,348,430

---

(374,056)

1,974,374

2007£

10,000,000

-

10,000,000

#

#2,040,930

307,500-

2,348,430

2008

400,000,000

-

400,000,000

93,937,204

---

(14,962,253)

78,974,951

2007

200,000,000

200,000,000

400,000,000

2

281,637,20012,300,000

-

93,937,204



28. BUSINESSCOMBINATIONS(a) AcquisitionofSubsidiaryCompanies

(i) On23January2008,MobilityOneSdn.Bhd.acquired2ordinarysharesofRM1eachrepresenting100%equity interestinPayStationSdn.Bhd.(formerlyknownasVersatelSdn.Bhd.)foracashconsiderationofRM2;and

(ii) On12March2008,MobilityOneSdn.Bhd.acquired95,000ordinarysharesofUSD1eachrepresenting95%equity interestinPT.MobilityOneIndonesiaforacashconsiderationofUSD100,000,whichequivalentstoRM318,350.

(b) TheacquiredsubsidiarycompanieshavecontributedthefollowingresultstotheGroup:

RevenueLossfortheyear

ThereisnoeffectontheGroup’srevenueandprofitorlosshadtheacquisitionsoccurredatthebeginningoftheyearastheacquiredsubsidiarycompaniesarenewlyincorporated.

(c) Theassetsarisingfromtheacquisitionareasfollows:

NetassetsacquiredLess:MinorityinterestGroup’sshareofnetassetsGoodwillonacquisition

Totalcostofacquisition

(d) Thecashoutflowonacquisitionisasfollows:

PurchaseconsiderationsatisfiedbycashCostsattributabletotheacquisition,paidincashTotalcashoutflowoftheCompanyCashandcashequivalentsofsubsidiarycompaniesacquired

NetcashoutflowoftheGroup

2008£

12,977(47,290)

Fairvalue£

63,684(3,184)60,500

3,184

63,684

2008£

63,684-

63,684(63,684)

-



29.COMPANYEQUITYINSTRUMENT

At1January2008SurplusfortheperiodSharebuyback

At31December2008

At1January2007Capitalisedasbonusissueinsubsidiary companyConversionofredeemablepreferencesharesin subsidiarycompanyDeficitfortheperiodIssueofsharesListingexpensesShareswap

At31December2007

30. REVERSEACQUISITIONRESERVE

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

Retainedearnings

£

(16,959)1,509,319

(1,018,930)

473,430

Total£

3,113,7051,509,319

(1,392,986)

3,230,038

Sharecapital

£

2,348,430-

(374,056)

1,974,374

Sharepremium

£

782,234--

782,234

Retainedearnings

£

-

-

-(16,959)

---

(16,959)

Total£

2,017,932

438,905

293,044(16,959)

1,537,500(447,766)(708,951)

3,113,705

Sharecapital

£

2,017,021

438,905

293,044-

307,500-

(708,040)

2,348,430

Sharepremium

£

911

-

--

1,230,000(447,766)

(911)

782,234



31. RECONCILIATIONOF(LOSS)/PROFITBEFORETAXTOCASHGENERATEDFROMOPERATIONS

GROUP

Cashflowfromoperatingactivities

(Loss)/profitbeforetaxAdjustmentsfor: Profitondisposalofproperty,plantandequipment

DepreciationAmortisationonprepaidleasepaymentsAmortisationofintangibleassetsAmortisationofdevelopmentcostsProperty,plantandequipmentwrittenoffInventorieswrittenoffGainonforeignexchange–unrealisedInterestpaidInterestreceived

Operatingprofitbeforeworkingcapitalchanges

Decrease/(increase)ininventoriesDecrease/(increase)inreceivablesIncrease/(decrease)inamountduetoDirectorsIncrease/(decrease)inpayables

Cashgeneratedfrom/(depletedin)operations

Restated2007

£

765,257

-84,3302,617

55,558----

51,260(625)

958,397

(243,088)(775,450)(144,625)(467,485)

(672,251)

2008£

(916,047)

(223)170,448

2,92061,99655,55394,842

123,519(5,753)48,347

(14,963)

(379,361)

184,4051,832,529

106,129316,318

2,060,020



31. RECONCILIATIONOF(LOSS)/PROFITBEFORETAXTOCASHGENERATEDFROMOPERATIONS(Continued)

COMPANY

Cashflowfromoperatingactivities

Profit/(loss)beforetaxAdjustmentfor: Dividendincome Gainonforeignexchange–unrealised

Operatinglossbeforeworkingcapitalchanges

Increaseinpayables IncreaseinamountduetoDirectors Increaseinamountduefromsubsidiarycompany

Cashdepletedinoperations

32.FINANCIALCOMMITMENTS

Capitalcommitment

Authorisedandcontractedfor: InvestmentinPT.MobilityOneIndonesia

33. RELATEDPARTYTRANSACTIONS

Duringtheyear,MobilityOneSdn.Bhd.waschargedbyNetossSdn.Bhd.Nil(2007:£96,710)forlicensefeesofterminalsoftware,MobilityOneSdn.Bhd.wasreceivedadvances£80,018(2007:Nil)fromacompanywhichisrelatedtoaDirector,NetossSdn.Bhd.wasdisposeditsproperty,plantandequipmenttoacompanywhichisrelatedtoaDirector£5,831(2007:Nil).

Atthebalancesheetdate,theGroupowedtheDirectors£106,129(2007:Nil),theCompanyowedtheDirectors£86,125(2007:Nil),MobilityOneSdn.Bhd.owedtheCompany£1,318,591(2007:£1,010,033),NetossSdn.Bhd.owedMobilityOneSdn.Bhd.£333,873(2007:£325,624),PayStationSdn.Bhd.owedMobilityOneSdn.Bhd.£440(2007:Nil)andPT.MobilityOneIndonesiaowedMobilityOneSdn.Bhd.£7,091(2007:Nil),MobilityOneSdn.Bhd.owedacompanywhichisrelatedtoaDirector£80,018(2007:Nil).Theamountowingtoorfromthesubsidiarycompaniesarerepayableondemandandit isinterestfree.

1.1.2008to31.12.2008

£

1,509,319

(1,486,023)(250,828)

(227,532)

46,77586,125

(63,483)

(158,115)

22.3.2007to31.12.2007

£

(16,959)

-(61,811)

(78,770)

--

(948,222)

(1,026,992)

2007£

140,543

2008£

-

Group



34. ULTIMATECONTROLLINGPARTY

In theopinionof theDirectors, there isnoultimatecontrollingparty in theCompany for theyearended31December2008.

35. CONTINGENTLIABILITIES

Saveasdisclosedbelow,theGrouphasnocontingentliabilitiesarisinginrespectoflegalclaimsarisingfromtheordinarycourseofbusinessandit isnotanticipatedthatanymaterial liabilitieswillarisefromthecontingentliabilitiesotherthanthoseprovidedfor.

LimitofguaranteesCorporateguaranteesgiventolicensedbanksbyasubsidiarycompanyfor creditfacilitiesgrantedtoathirdparty

AmountutilisedBanker’sguaranteeinfavourofathirdparty

GHLSystemsBerhad(GHL)hasissuedaclaimagainstMobilityOneSdn.Bhd.relatingtofeesforservers,hosting,rentalofEDCterminalsandothermiscellaneousmatters.AsecondclaimhasalsobeenmadebyGHLTransactSdn.Bhd.relatingtomaintenanceandrentalofEDCterminalsandothermiscellaneousmatters.TheclaimstotalRM966,667.

BoththeseclaimshavebeenstronglyrefutedbythemanagementofMobilityOneSdn.Bhd.andanoticeofcounterclaimhasbeenissuedbyMobilityOneSdn.Bhd.againstGHLinrespectofoutstandingpaymentduetotheCompanyforinventories,chargesinrespectofservicesnotrendered,interestandothermiscellaneousmatterstotallingRM2,964,941.

RepresentativesofboththeCompanyandGHLhavemetonseveraloccasionstoattempttonegotiateasettlement.

TheDirectorsareoftheopinionthattheGroupisunlikelytohavetosufferanyeconomicoutflowasaresultoftheaboveclaims.

2007£

7,555

-

2008£

1,050,000

134,019

Group



36. FOREIGNCURRENCYTRANSLATIONRESERVE

Thesubsidiarycompanies'assetsandliabilitiesstatedinthebalancesheetweretranslatedintoSterlingPound(£)usingtheclosingrateasatthebalancesheetdateandtheincomestatementsweretranslatedinto£usingtheaveragerateforthatperiod.Allresultingexchangedifferencesaretakentotheforeigncurrencytranslationreservewithinequity.

Asat1January2008Currencytranslationdifferencesduringtheyearduefromsubsidiarycompanies

Asat31December2008

TheforeigncurrencytranslationreserveisusedtorecordexchangedifferencesarisingfromthetranslationofthefinancialstatementsofforeignoperationswhosefunctionalcurrenciesaredifferentfromthatoftheGroup'spresentationcurrency.ItisalsousedtorecordtheexchangedifferencesarisingfrommonetaryitemswhichformpartoftheGroup'snetinvestmentinforeignoperations,wherethemonetaryitemisdenominatedineitherthefunctionalcurrencyofthereportingentityortheforeignoperation.

37. RETAINEDEARNINGS

RetainedearningsrepresentsthecumulativeearningsoftheGroupattributabletoequityshareholders.

Asat1January(Loss)/profitfortheyearSharebuybackCapitalisedasbonusissueinsubsidiarycompany

Asat31December

2007£

(162,608)234,175

71,567

2008£

71,567977,790

1,049,357

2007£

1,078,346733,089

-(438,903)

1,372,532

2008£

1,372,532(876,818)

(1,018,930)-

(523,216)

Group




38. COMPARATIVEFIGURES

CertaincomparativefigureshavebeenreclassifiedinaccordancetoIFRS38,IntangibleAssetsasmentionedinNote11andtoconformwithcurrentyear’spresentation.Thereclassificationadjustmentsaresummarisedasfollows:

(a) ReclassificationinaccordancetoIFRS38,IntangibleAssets

Group

BalanceSheet: Intangibleassets Property,plantandequipment

TherewerenoeffectsontheConsolidatedIncomeStatementforthefinancialyearended31December2007andthe Companyfinancialstatements.

(b) Reclassificationtoconformwithcurrentyear’spresentation

Group

BalanceSheet: Tradepayables Otherpayables

IncomeStatement: Administrationexpenses Distributionexpenses Financecosts Otheroperatingexpenses

Reclassificationarisingfrom

IFRS382007

£

385,028(385,028)

Asrestated2007

£

1,689,0111,121,909

Aspreviouslystated

2007£

1,303,9831,506,937

Aspreviouslystated2007

£

6,280196,462

835,968516,020

54,418-

Asrestated2007

£

151,18151,561

1,254,473-

51,260100,673


39. SHAREBASEDPAYMENTS

Duringtheyearended31December2007theGroupgrantedshareoptionsof7,416,558sharesat12.5p2,000,000eachtoDato’[email protected],SeahBoonChinandDerrickChiaKahWaiand1,416,558toHBCorporate.Nochargehasbeenmadeforthesharebasedpaymentsasitisnotconsideredtobematerial.

Thedetailsoftheshareoptionsareasfollows:

OutstandingatbeginningofyearGrantedon5July2007

Balancecarriedforward

ThefairvaluesoftheoptionsgrantedhavebeencalculatedusingBlack-Scholesmodelassumingtheinputsshownbelow:

Grantdate 5July2007Sharepriceatgrantdate 12.5pExerciseprice 12.5pOptionlifeinyears 5yearsRiskfreerate 4.40%Expectedvolatility 40%Expecteddividendyield 0%Fairvalueofoptions 2p

Nooptionshavebeenexercised.

40. GOVERNMENTGRANTS

TheGrouphasbeenawardedaRM1,200,000grant foracertainapprovedR&Dproject fromMultimediaDevelopmentCorporationSdn.Bhd.(MDeC)throughtheMSCMalaysiaR&DGrantScheme(MGS).

Duringtheyear£111,416(2007:£43,632)wasrecognisedintheprofitandlossandtheGrouphasnowreceived£155,048(2007:£43,632)outofthetotalgovernmentgrant.Inaddition,grantincomealsoconsistsofreimbursementfromMDeContheinvestmentinoverseastopromotetheGroup’sproducts.

Thegrantisnotdependentonfulfilmentofcontingencies.

CompanyExercisepriceNumber

2008

12.5p-

12.5p

2007

-12.5p

12.5p

2008

7,416,558-

7,416,558

2007

-7,416,558

7,416,558



NOTICEISHEREByGIVENTHATanAnnualGeneralMeetingofMOBILITYONELIMITED(“Company”)willbeheldat9.00a.m.Malaysiatimeon23July2009atMalaysianPetroleumClub,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,Malaysia,andforthepurposeofconsideringand,ifthoughtfit,adoptingthefollowingresolutions,atthemeeting,orofanyadjournmentthereof:

ORDINARYRESOLUTIONS

1. THATtheCompany'saccountsandreportsoftheDirectorsandAuditorsfortheyearended31December2008beadopted.

2. THATDerrickChiaKahWaiisre-electedasaDirector.

3. THATSeahBoonChinisre-electedasaDirector.

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

5. THATtheDirectorsbeauthorisedtofixtheremunerationoftheAuditors.

6. THATpursuanttoArticles2.3and2.4(c)oftheCompany'sArticlesofAssociation,theBoardofDirectorshavegeneralauthoritytoissueuptoandincluding23,692,485ordinarysharesof2.5peachinthesharecapitaloftheCompanyattheirsolediscretionwithoutreferencetopre-emptionrights,forcashbywayofgeneralmandate.

BYORDEROFTHEBOARD

Dato’Dr.WanAzmibinAriffinChairman

Dated:30June2009

Notes:

1 AmemberoftheCompanyentitledtoattendandvoteattheabovementionedmeetingisentitledtoappointaproxytoattendand,onapoll,tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.AproxyneednotbeamemberoftheCompany.Amembermayappointmorethanoneproxytoattendonthesameoccasion.

2 Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority(ifany)underwhichitissigned,oranotariallycertifiedcopyofsuchpowerorauthority,shallbedepositedwiththeCompany’sregistrars,ComputershareInvestorServices(ChannelIslands)Limited,POBox83,OrdinanceHouse,31PierRoad,StHelier,JerseyJE48PW,ChannelIslands,oratsuchotherplaceasisspecifiedforthatpurposeinthenoticeofthemeetingorintheinstrumentofproxyissuedbytheCompanyatleast24hoursbeforethetimeappointedforholdingthemeetingoradjournedmeetingatwhichthepersonnamedintheinstrumentproposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,theinstrumentofproxyshallnotbetreatedasvalid.

3 Completionoftheinstrumentappointingaproxydoesnotprecludeamemberfromsubsequentlyattendingandvotingatthemeetinginpersonifhe/shesowishes.

4 Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesoftheHoldersstandintheregisterofmembersoftheCompany.

5 AspermittedbyRegulation40(1)oftheCompanies(UncertificatedSecurities)(Jersey)Order1999,onlypersonsenteredontheregisterofmembersoftheCompanynotlaterthan48hoursbeforethetimeappointedforthemeetingareentitledtoattendand/orvoteatthemeetinginrespectofthenumberofsharesregisteredintheirnameatthattime.Changestoentriesontheregisterofmembersafterthattimewillbedisregardedindeterminingtherightsofanypersontoattendand/orvoteatthemeeting.

NOTICE Of ANNuAL GENErAL MEETING

Notes:1. AmemberoftheCompanyentitledtoattendandvoteattheabovementionedmeetingisentitledtoappointaproxytoattendand,onapoll,

tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.AproxyneednotbeamemberoftheCompany.Amembermayappointmorethanoneproxytoattendonthesameoccasion.

2. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority(ifany)underwhichitissigned,oranotariallycertifiedcopyofsuchpowerorauthority,shallbedepositedwiththeCompany’sregistrars,ComputershareInvestorServices(ChannelIslands)Limited,POBox83,OrdinanceHouse,31PierRoad,StHelier,JerseyJE48PW,ChannelIslands,oratsuchotherplaceasisspecifiedforthatpurposeinthenoticeofthemeetingorintheinstrumentofproxyissuedbytheCompanyatleast24hoursbeforethetimeappointedforholdingthemeetingoradjournedmeetingatwhichthepersonnamedintheinstrumentproposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,theinstrumentofproxyshallnotbetreatedasvalid.

3. Completionoftheinstrumentappointingaproxydoesnotprecludeamemberfromsubsequentlyattendingandvotingatthemeetinginpersonifhe/shesowishes.

4. Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesoftheHoldersstandintheregisterofmembersoftheCompany.

5. AspermittedbyRegulation40(1)oftheCompanies(UncertificatedSecurities)(Jersey)Order1999,onlypersonsenteredontheregisterofmembersoftheCompanynotlaterthan48hoursbeforethetimeappointedforthemeetingareentitledtoattendand/orvoteatthemeetinginrespectofthenumberofsharesregisteredintheirnameatthattime.Changestoentriesontheregisterofmembersafterthattimewillbedisregardedindeterminingtherightsofanypersontoattendand/orvoteatthemeeting.

FOR AGAINST WITHHOLD

Ifbyanindividual:

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

Dated:.............................................................................2009

If for and on behalf of a corporation:

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

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

position: ....................................................................................

Dated:.............................................................................2009

I/We:(fullname)………………………………………of(address)……………………………………………………..beingamember

ofMobilityOneLimited,doherebyappoint:(fullname)…………………………………………………………………………….......or

failinghim:(fullname)……………………………………………………………………………….......orfailinghimtheChairmanof

theMeetingasmy/ourproxytoattendtheAnnualGeneralMeetingofMobilityOneLimitedtobeheldatMalaysianPetroleum

Club,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,Malaysiaon23July2009at

9.00a.m.Malaysiatimeoranyadjournmentthereof.

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:

ORDINARYRESOLUTIONS

1. THATtheCompany'saccountsandreportsoftheDirectorsandAuditorsfortheyearended31December2008beadopted.

2. THATDerrickChiaKahWaiisre-electedasaDirector.

3. THATSeahBoonChinisre-electedasaDirector.

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

5. THATtheDirectorsbeauthorisedtofixtheremunerationoftheAuditors.

6. THAT pursuant to Articles 2.3 and 2.4(c) of the Company's Articles ofAssociation,theBoardofDirectorshavegeneralauthoritytoissueuptoandincluding23,692,485ordinarysharesof2.5peachinthesharecapitaloftheCompanyattheirsolediscretionwithoutreferencetopre-emptionrights,forcashbywayofgeneralmandate.

ThEN fOLD hErE

fIrST fOLD hErE

AffIXSTAMp

Company's regIstrarsmobiltyone limitedpO BOX 8�, OrDINANCE hOuSE�� pIEr rOAD, ST hELIErJErSEY JE� 8pwChANNEL ISLANDS

fOLD ThIS fLAp fOr SEALING

MobilityOne Limited - Annual Report

MobilityOne Limited - Annual Report · ANNuAL rEpOrT 2008 MOBILITYONE LIMITED 2 Company Information...

Documents

Transcript of MobilityOne Limited - Annual Report · ANNuAL rEpOrT 2008 MOBILITYONE LIMITED 2 Company Information...