Professional Documents
Culture Documents
1-2
7 - 29
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position
of HBS Investments Limited, as of 31 December 2015, and its financial performance and cash
flows for the year then ended, in accordance with International Financial Reporting Standards.
Other matter
As disclosed in note 3, the corresponding figures for the statement of financial position as at 31
December 2014 and the statements of profit or loss and other comprehensive income, changes in
equity and cash flows statement for the year then ended have been extracted from the unaudited
financial statements prepared by the management.
Restriction of use
This report has been prepared solely for the purpose of providing information to Shareholders of HBS
Investments Limited to enable it to prepare the financial statements of the Company. The financial
statements may not be suitable for other purposes and therefore, should not use for any other purpose.
2015
RO
2014
RO
Unaudited
2,764,758
58,063,318
3,207,807
194,562
1,407,670
49,534,009
3,188,459
140,604
64,230,445
54,270,742
39
11,874,138
39
13,444,491
11,874,177
13,444,530
52,351,268
5,000
40,826,212
-
Total liabilities
52,356,268
40,826,212
64,230,445
54,270,742
ASSETS
Cash balances with banks and brokers
Investments at fair value through profit and loss
Loans and advances
Accrued interest
Total assets
EQUITY AND LIABILITIES
Capital and reserves
Share capital
Retained earnings
6
7
8
Shareholder's equity
Liabilities
Subordinated loan from related parties
Accrued and other payables
_____________________
Chairman
10
_____________________
Chief Financial Officer
Expenses
Operating expenses
Foreign exchange loss
11
2015
RO
2014
RO
Unaudited
1,477,731
719,821
(334,528)
837,854
797,614
164,249
(3,197,832)
-
(962,355)
116,879
(1,334,808)
954,241
(126,578)
(108,967)
(87,739)
(88,515)
(235,545)
(176,254)
(1,570,353)
777,987
Retained
earnings
RO
Total
RO
39 12,666,504
777,987
12,666,543
777,987
39 13,444,491
(1,570,353)
13,444,530
(1,570,353)
A 31 December 2015
39 11,874,138
11,874,177
2015
RO
2014
RO
Unaudited
(1,570,353)
777,987
334,528
(164,249)
3,197,832
962,355
1,962,007
1,576,093
(53,958)
5,000
(129,244)
-
1,913,049
1,446,849
(19,430,567
)
7,368,898
(19,348)
(14,903,786)
(12,081,017
(9,801,509)
7
7
5,108,403
(6,126)
)
Financing activities
Net movement in subordinated loan from related parties
Net change in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
11,525,056
8,324,176
1,357,088
1,407,670
(30,484)
1,438,154
2,764,758
1,407,670
General Information
HBS Investments Limited (the Company) is an unlisted company incorporated on 6 April 2001
in the territory of the British Virgin Islands and continued as a company incorporated in the
Republic of Seychelles on 14 March 2012. The principal activities of the Company are trading in
international securities.
The Companys principal place of business and registered address is second floor, Capital City,
Independence Avenue, P O Box 1312, Victoria, Mahe, Seychelles.
The Company is classified as an investment entity as per the criteria in IFRS-10 Consolidated
Financial Statements and accordingly is mandatorily exempt from consolidating its investment in
subsidiaries and associates.
2.1
New and revised IFRSs applied with no material effect on the combined financial statements
The following new and revised IFRSs, which became effective for annual periods beginning on or
after 1 January 2015, have been adopted in these financial statements. The application of these
revised IFRSs has not had any material impact on the amounts reported for the current and prior
years but may affect the accounting for future transactions or arrangements.
2.2
Annual Improvements to IFRSs 2010 - 2012 Cycle that includes amendments to IFRS 2,
IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 24 and IAS 38.
Annual Improvements to IFRSs 2011 - 2013 Cycle that includes amendments to IFRS 1,
IFRS 3, IFRS 13 and IAS 40.
Amendments to IAS 19 Employee Benefits to clarify the requirements that relate to how
contributions from employees or third parties that are linked to service should be attributed to
periods of service.
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
2.2
New and revised IFRS in issue but not yet effective (continued)
New and revised IFRSs
1 January 2016
1 January 2016
IFRS 9 Financial Instruments (revised versions in 2009, 2010, 2013 and 2014) 1 January 2018
IFRS 9 issued in November 2009 introduced new requirements for the
classification and measurement of financial assets. IFRS 9 was subsequently
amended in October 2010 to include requirements for the classification and
measurement of financial liabilities and for derecognition, and in November
2013 to include the new requirements for general hedge accounting. Another
revised version of IFRS 9 was issued in July 2014 mainly to include a)
impairment requirements for financial assets and b) limited amendments to
the classification and measurement requirements by introducing a fair value
through other comprehensive income (FVTOCI) measurement category for
certain simple debt instruments.
A finalised version of IFRS 9 which contains accounting requirements for
financial instruments, replacing IAS 39 Financial Instruments: Recognition
and Measurement. The standard contains requirements in the following
areas:
Classification and measurement: Financial assets are classified by
reference to the business model within which they are held and their
contractual cash flow characteristics. The 2014 version of IFRS 9
introduces a 'fair value through other comprehensive income' category for
certain debt instruments. Financial liabilities are classified in a similar
manner to under IAS 39, however there are differences in the
requirements applying to the measurement of an entity's own credit risk.
Impairment: The 2014 version of IFRS 9 introduces an 'expected credit
loss' model for the measurement of the impairment of financial assets, so
it is no longer necessary for a credit event to have occurred before a
credit loss is recognised
Hedge accounting: Introduces a new hedge accounting model that is
designed to be more closely aligned with how entities undertake risk
management activities when hedging financial and non-financial risk
exposures.
Derecognition: The requirements for the derecognition of financial
assets and liabilities are carried forward from IAS 39.
Amendments to IFRS 7 Financial Instruments: Disclosures relating to
disclosures about the initial application of IFRS 9
2.2
New and revised IFRS in issue but not yet effective (continued)
New and revised IFRSs
1 January 2018
Under IFRS 15, an entity recognises when (or as) a performance obligation
is satisfied, i.e. when control of the goods or services underlying the
particular performance obligation is transferred to the customer. Far more
prescriptive guidance has been added in IFRS 15 to deal with specific
scenarios. Furthermore, extensive disclosures are required by IFRS 15.
IFRS 16 Leases
1 January 2019
3.
The existence and effect of potential voting rights that are currently exercisable or convertible are
considered when assessing whether the Company controls another entity. Income from subsidiaries
is recognised to the extent that the Company receives dividends from accumulated net profits of
the subsidiaries arising subsequent to the date of acquisition by the Company.
Associates are all entities over which the Company has significant influence but not control,
generally accompanying a shareholding of between 20% and 50% of the voting rights.
Valuation
All subsidiaries, associates and joint ventures are measured at fair value through profit or loss with
a change in fair values to be recognised in profit and loss.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss comprise financial securities held-for-trading
which are acquired principally for the purpose of selling in the short-term and instruments so
designated by management upon inception. Financial assets at fair value through profit or loss are
initially recognised at fair value and transaction costs are expensed in the statement of profit or
loss. Unrealised gains or losses arising from changes in fair value are included in the statement of
profit or loss and comprehensive income in the period in which they arise. Derivatives are also
categorised as held for trading unless they are designated as hedging instruments.
Management may only designate an instrument at fair value through profit or loss upon initial
recognition when the following criteria are met, and designation is determined on an instrument by
instrument basis:
The designation eliminates or significantly reduces the inconsistent treatment that would
otherwise arise from measuring the assets or liabilities or recognising gains or losses on them
on a different basis.
The assets and liabilities are part of a group of financial assets, financial liabilities or both,
which are managed and their performance evaluated on a fair value basis, in accordance with a
documented risk management or investment strategy.
The financial instrument contains one or more embedded derivatives, which significantly
modify the cash flows that would otherwise be required by the contract.
The rights to receive cash flows from the asset have expired; or
The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
pass-through arrangement; and either:
the Company has transferred substantially all the risks and rewards of the asset, or
the Company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. Where an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and the recognition of a new liability, and the difference in the respective carrying amounts is
recognised in profit or loss.
Impairment of financial assets
The Company assesses at each reporting date whether there is objective evidence that a financial
asset or a group of financial assets is impaired. A financial asset or a group of financial assets is
impaired and an impairment loss is incurred if, and only if, there is objective evidence of
impairment as a result of one or more events that occurred after the initial recognition of the asset
(a loss event) and that loss event (or events) has an impact on the estimated future cash flows of
the financial asset or group of financial assets that can be reliably estimated. Objective evidence
that a financial asset or group of assets is impaired includes observable data that comes to the
attention of the Company about the following loss events:
3.
4.
5.
2015
RO
2014
RO
Unaudited
XXX
x.xx%
Xxxx
x.xx%
XXX
x.xx%
Xxxx
x.xx%
Oman operates with a fixed exchange rate, and the Omani Rial is pegged to the US Dollar at
$2.6008 per Omani Rial. Accordingly, currency risk arises on assets not denominated in Rial
Omani or currencies not linked to the US Dollar.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet
commitments associated with financial instruments. Liquidity risk may result from an inability to
sell a financial asset quickly at close to its fair value. It includes the risk of being unable to fund
assets at appropriate maturities and rates and the risk of being unable to liquidate an asset at a
reasonable price and in an appropriate time frame.
The Company manages the liquidity risk by ensuring sufficient liquid assets such as cash and cash
equivalents, listed securities are available to meet its obligations when they fall due. At the
reporting date the Company is positioned well to meet its liquidity commitments considering
available liquid funds.
The Company holds investment securities listed on the securities markets and other quoted
investments. Those investments are liquid in nature and can be sold in response to need for
liquidity. As at 31 December 2015 the quoted investments were 45.3% (2014: 43.5%) of the total
investment securities.
6.
2015
RO
2014
RO
Unaudited
2,764,758
1,407,670
Bank deposits carry interest ranging from xx% to xx% (2014 : xx,xxx) per annum.
Investments
At 31 December, investment at fair value through profit or loss comprised the following:
2015
RO
Investments in quoted securities
Investments in unquoted securities
2014
RO
Unaudited
26,309,861
31,753,457
21,570,620
27,963,389
58,063,318
49,534,009
(a) The analysis of investments at fair value through profit or loss is as follows:
31 December 2015
Cost
Fair value
RO
RO
Quoted securities
Equities
Bonds
Mutual funds
Exchange traded funds
Unquoted securities
Equities
Private equity funds
31 December 2014
Cost
Fair value
RO
RO
Unaudited
Unaudited
5,746,479
12,172,168
4,864,515
5,992,990
4,329,506
11,490,590
4,942,216
5,547,549
5,273,574
10,254,290
3,825,740
2,393,066
4,841,328
10,505,927
3,814,906
2,408,459
28,776,152
26,309,861
21,746,670
21,570,620
19,273,291
5,836,675
22,557,461
9,195,996
14,907,589
4,786,405
23,371,404
4,591,985
25,109,966
31,753,457
19,693,994
27,963,389
53,886,118
58,063,318
41,440,664
49,534,009
(b) Movement in investments at fair value through profit or loss during the year is as follows:
7.
2015
RO
2014
RO
Unaudited
At 1 January
Purchases during the year
Sales during the year
Realised (loss) / gain during the year
Unrealised loss during the year
49,534,009
19,430,567
(7,368,898)
(334,528)
(3,197,832)
40,536,732
14,903,786
(5,108,403)
164,249
(962,355)
At 31 December
58,063,318
49,534,009
Investments (continued)
Nature of
business
Holding
%
Origin
2015
RO
2014
RO
Unaudited
Hedgwick Investments Limited
Edgeprop Limited
Niche Investments Limited
Mount Properties Limited
Hilton Head Investments Limited
Cabtal Holdings Limited
Investra Properties UK Limited
Haleprop Holdings Limited
Campbell Holdings Limited
MASO Holding
Fusion PFS Limited
Sherburn Holdings Limited
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
50
50
50
75
65
65
30
25
30
25
25
30
Seychelles
Seychelles
Seychelles
Seychelles
British Virgin Islands
British Virgin Islands
British Virgin Islands
British Virgin Islands
British Virgin Islands
Thailand
British Virgin Islands
British Virgin Islands
2,175,690
1,803,533
578,276
1,073,531
1,920,424
1,905,928
924,888
521,307
2,232,945
2,684,605
1,916,611
1,374,120
2,175,690
2,009,700
655,545
1,052,700
1,922,921
1,908,407
889,282
602,113
2,488,200
2,684,605
-
No individual investment constitutes 10% or more of the Companys investment portfolio. These
investments are carried at fair value through profit and loss as at the reporting date.
The Company has no arrangement to provide any financial support to the investee nor any support
provided during the year.
8.
3,207,807
3,740,813
(3,740,813)
3,207,807
2014
RO
Unaudited
3,188,459
3,740,813
(3,740,813)
3,188,459
Share capital
(a) The Companys authorised share capital is RO 19,250 (2014 RO 19,250) shares of Baisas
385 (2014 Baisas 385) each. 100 (2014 100) shares of Baisas 385 (2014 Baisas 385)
each have been issued and are fully paid.
(b)Details of the shareholders and their shareholding are as follows:
2015
Holding
Shares
(%)
RO
Mr. Salim Hassan Yousuf Macki
Mr. Basil Salim Hassan Macki
Mrs. Hannah Salim Hassan Macki
2014
Holding
Shares
(%)
RO
Unaudited
Unaudited
60
20
20
23
8
8
60
20
20
23
8
8
100
39
100
39
2015
RO
2014
RO
Unaudited
47,064,902
5,286,366
38,508,081
2,318,131
52,351,268
40,826,212
The loans are unsecured and interest free with no fixed payment terms.
11.
Operating expenses
2015
RO
2014
RO
Unaudited
10,080
25,468
72,233
2,086
16,711
5,415
19,576
53,781
1,991
6,976
126,578
87,739
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
(c) Balances due from / (to) related parties at the reporting date are follows:
2015
RO
2014
RO
Unaudited
3,207,807
3,188,459
47,064,902
4,286,366
38,508,081
2,318,131
52,351,268
40,826,212
13. Commitments
At reporting date, the Company had the following outstanding commitments which are expected to
mature within one year as shown below:
2015
2014
RO
RO
Unaudited
Investments expected to mature within one year
Investments expected to mature more than one year
XX
XX
XX
XX
XX
XX
Level 1
RO
Level 2
RO
Level 3
RO
Total
RO
26,309,861
-
31,753,457
26,309,861
31,753,457
26,309,861
31,753,457
58,063,318
21,570,620
-
27,963,389
21,570,620
27,963,389
21,570,620
27,963,389
49,534,009
15.