Golden Saint Technologies : GST Financial Report Year Ended 31 March 2020

GSTECHNOLOGIES LIMITED

formerly known as Golden Saint Technologies Limited

ANNUAL REPORT

For the financial year ended 31 March 2020

GSTECHNOLOGIES LTD.

ANNUAL REPORT

For the financial year ended 31 March 2020

CONTENTS	PAGE
Directors' Statement	1 - 6
Consolidated Statement of Profit or loss and	7
Comprehensive Income
Consolidated Statement of Financial Position	8
Consolidated Statement of Cash Flows	9
Consolidated Statement of Changes in Equity	10
Notes to the Consolidated Financial Statements	11 - 30
Directors' Remuneration Report	31
Parent Company Statement of Financial Position	32
Parent Company Statement of Changes in Equity	33
Auditor's Report	34

GSTECHNOLOGIES LTD.

DIRECTORS' STATEMENT

For the financial year ended 31 March 2020

Board of Directors

Tone Goh, Executive Chairman

Pierre Fourie, GST's Group MD, has deployed his strategic mind in helping me guide the development of the GST businesses towards ever-stronger, value creating, growth (resigned 31 June 2019)

Raphael Teo's technical expertise has influenced all parts of the engineering and installation teams' work

William Knight brings an invaluable source of reliable counsel to our Board (resigned 2 December 2019)

Malcolm Groat is a pillar of support for our company, bringing decades of high-level financial skill and experience to our senior team

1

GSTECHNOLOGIES LTD.

DIRECTORS' STATEMENT

For the financial year ended 31 March 2020

Directors' Report

The Directors present their Annual Report on the affairs of the Group, together with the financial statements and auditor's report, for the year ending 31 March 2020.

Principal Activities

GST provides optimal wireless, electronic cabling, security, and other solutions to clients operating in the infrastructure development space. GST builds on the profitable ICT business of its Singaporean subsidiary EMS Wiring Systems, which has been supplying governments and large private organisations with intelligent building solutions for the last 30 years. GST's strategy is to develop solutions to meet the needs of the ICT industry, acting on the surging opportunities in the technology and innovation sectors - data Centres, intelligent buildings, smart cities and the Internet of Things - particularly targeting emerging markets where the demand for ICT infrastructure is increasing rapidly.

Business Review

A review of the business during the period and to date, including comments on future developments, is contained on the Strategic Report.

Dividends

The Board believes that the interests of all stakeholders are best served by retaining capital within the Company and maintaining greater flexibility to be able to take advantage of, looking forward, the many attractive investment and business development opportunities open to GST at this time and over the next few years. GST is looking to generate long term value for customers and shareholders in a sustainable manner. As a result, GST's dividend policy for this financial year is not to pay dividends to shareholders but rather meet their interests by creating value that leads to capital growth.

Subsequent Events

There were no subsequent events for the year ended 31 March 2020.

Financial Instruments

The Group's financial instruments primarily comprise cash, cash equivalents, and other instruments such as trade receivables and payables, which arise directly from its operations. Note 24 to the accounts gives details of the Group's risks and policies regarding financial instruments.

The accompanying notes form an integral part of these consolidated financial statements.

2

GSTECHNOLOGIES LTD.

DIRECTORS' STATEMENT

For the financial year ended 31 March 2020

Directors' statement as to disclosure of information to the auditor

The Directors at the date of approval of this report confirm that:

• to the best of their knowledge and belief, there is no relevant audit information of which the Group's auditor is unaware and
• the Directors have taken all the steps that might reasonably be expected to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Group's auditor is aware of that information.

On behalf of the Board

Tone Goh

Executive Chairman

11 September 2020

The accompanying notes form an integral part of these consolidated financial statements.

3

GSTECHNOLOGIES LTD.

DIRECTORS' STATEMENT

For the financial year ended 31 March 2020

15 September 2020

GSTechnologies Limited

("GST", the "Group" or the "Company")

Results for the year ended 31 March 2020

Golden Saint Technologies Limited (LSE: GST), the integrated information and communication technology infrastructure solutions provider, is pleased to announce the Company's results for the year ended 31 March 2020.

Period Highlights

• Introduction of new product from Mitel telephone solutions
• Continuous expansion of operations in Asia Pacific, US and Germany
• IS-EMSinvestment withdrawn; no longer a subsidiary

Post Highlights

• Signed a DeepAlert SAAS agreement with DeepAlert Limited for AI security, real-time video analytics
• Development of Smart Innovation for IoT, security, and energy efficiency applications

Chairman's Statement

I am pleased, on behalf of the Board of Directors of GST, to present our annual results for the year ended 31 March 2020 to our valuable shareholders.

The COVID-19 pandemic has affected all businesses in ways no one could have imagined when I was writing my Chairman's statement this time last year.

I am truly proud of our 100 strong team of dedicated staff members across all of the areas in which we operate. Our customers have relied on the critical ICT connectivity services we provide more than ever before. The determination, execution and devotion from the whole GST team has enabled our many clients in banking, medical and government sectors, in essential services, to function and succeed during this intense period of need. I am pleased to report that none of our GST staff have so far been infected by the awful corona virus.

The accompanying notes form an integral part of these consolidated financial statements.

4

GSTECHNOLOGIES LTD.

DIRECTORS' STATEMENT

For the financial year ended 31 March 2020

The Company continues to prioritise the health, safety and wellbeing of its staff, clients and partners, adhering to strict government guidelines on social distancing and all other COVID-19 preventive measures.

Throughout the entire FY20, GST have had continual success in implementing the Company's 4i Vision - infrastructure innovation integration intelligence, which will remain the Company's long-term direction, developing lucrative relationships with both vendors and potential customers. This has been particularly the case in the Company's infrastructure integration core competence, catering for data center next generation solutions.

I am aware as I write this in the midst of the COVID-19 pandemic, that there's talk of uncertainty and unprecedented change. While we don't yet know how deep the COVID-19 economic downturn will be, nor how long it will last, we are sure that the years immediately ahead of us will be more difficult for many businesses than the stable conditions we have enjoyed over the last decade.

GST will not be spared from those difficulties and challenges.

On a brighter note, GST intends to grow and profit from the resultant growth in technology industries and the info communications sector in particular, which must and shall continue to expand in the new normal world where many will work and study from home. Faster, secured and more efficient data centers are required and the forecast is for robust growth in the coming decades. GST intends to capitalise on these opportunities worldwide.

EMS is celebrating its 30th anniversary since inception and the business has been through several severe global economic downturns during that time and survived, only to become stronger. We are optimistic for the future and have confidence in remaining profitable and delivering shareholder value in the coming years.

I would like to take this opportunity to express my upmost gratitude to all GST team members, suppliers, partners, customers and our valued shareholders for their trust and support.

Tone Kay Kim GOH

Chairman

FINANCIAL REVIEW

Income Analysis

1. For the 12-month period ended 31 March 2020 the Company reports revenue of US$4.5 million (2019: US$6.6 million). The Group's loss before tax for the financial year is US$0.27 million, a reduction of US$0.11 million compared to the loss incurred in previous financial year (2019: US$0.38 million).
2. The operating income has decreased by 32% partially due to the effects of COVID-19 with corresponding operating expenses also decreased by a similar percentage to US$4.8 million (2019: US$7.1 million).

The accompanying notes form an integral part of these consolidated financial statements.

5

GSTECHNOLOGIES LTD.

DIRECTORS' STATEMENT

For the financial year ended 31 March 2020

Balance Sheet Analysis

1. Net assets at 31 March 2020 amounted to US$1.9 million (2019: US$2.3 million). This decrease is largely due to the overall reduction in current assets significantly contributed by reduced sales that led to reduced cash and cash equivalents, trade and other receivables, and work in progress amounting to US$1.6 million, a reduction of 44% compared to the preceding financial year.
2. However, the acid test ratio (current assets, excluding inventories/current liabilities) has improved to 3.0 as compared to 2.1 in the preceding financial year.

As at 31 March 2020, the Group had an available cash balance of US$0.6 million, a decrease of US$0.3 million from the preceding financial year (2019: US$0.9 million).

The Directors believe that the Group is in a stable financial position and able to expand and grow its current operations and meet all its current liabilities.

Enquiries
The Company
Tone Goh, Executive Chairman	Singapore	+65	6444 2988
Financial PR & Investor Relations
IFC Advisory Limited	London	+44	20 3934 6636
Tim Metcalfe / Graham Herring / Heather Armstrong

About GST

GST provides optimal wireless, electronic cabling, security, and other solutions to clients operating in the infrastructure development space. GST builds on the profitable ICT business of its Singaporean subsidiary EMS Wiring Systems, which has been supplying governments and large private organisations with intelligent building solutions for the last 30 years. GST's strategy is to develop solutions to meet the needs of the ICT industry, acting on the surging opportunities in the technology and innovation sectors - data centres, intelligent buildings, smart cities and the Internet of Things - particularly targeting emerging markets where the demand for ICT infrastructure is increasing rapidly.

For more information please see: https://gstechnologies.co.uk/

The accompanying notes form an integral part of these consolidated financial statements.

6

GSTECHNOLOGIES LTD.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME For the financial year ended 31 March 2020

	Notes				2020
						US$'000
Net operating income
Sales						4,527
Other income						25
Net operating expense						4,552
Continuing Operations	6					(4,803)
Foreign exchange loss						(4)
Impairment of Goodwill						-
Operating (loss)/profit						(255)
Income tax expense						(20)
Net (loss)/profit for the year						(275)
Other comprehensive income
Movement in foreign exchange reserve						(188)
Total comprehensive (loss)/income for the peri
	(463)
Net Loss for the period atttributable to:
Equity holders for the parent						(275)
Non-controlling interest						-
Total comprehensive loss for the period atttributable to:
Equity holders for the parent						(463)
Non-controlling interest	21					-
(Loss)/Earnings per share attributable to members
of the Parent
Basic (loss) per share	10					(0)
Diluted (loss) per share	10					(0)

2019US$'000

6,662

25

6,687

(6,700)

(6)

(350)

(369)

(17)

(385)

(678)

(1,063)

(385)

-

(1,063)

-

(0)

(0)

The accompanying notes form an integral part of these consolidated financial statements.

7

GSTECHNOLOGIES LTD.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 March 2020

	Notes	2020	2019
ASSETS		US$'000		US$'000
Current assets
Cash and cash equivalents	11	561	871
Trade and other receivables	12	1,201	2,142
Work in progress	15	247	550
Inventories	13	312	315
Total current assets		2,320		3,878
Non-current assets
Property, plant and equipment	14	295	177
Intangible Assets	16	6	6
Total non-current assets		301		183
TOTAL ASSETS
	2,621		4,061
EQUITY
Share Capital	19	1,804	1,804
Reserves		(866)	(678)
Retained Earnings		947	1,222
Total Equity		1,885		2,348
Equity attributable to owners of the parent		1,885	2,348
Non-controlling equity interest	20	-	-
		1,885		2,348
LIABILITIES
Current Liabilities
Trade and other payables	21 & 14	674	1,713
Non-current Liabilities
Lease Liabilities	14	62	-
Total Liabilities
	736	1,713
TOTAL EQUITY & LIABILITIES		2,621		4,061

The accompanying notes form an integral part of these consolidated financial statements.

8

GSTECHNOLOGIES LTD.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the financial year ended 31 March 2020

Notes	2020	2019
	US$'000	US$'000

CASH FLOWS FROM OPERATING ACTIVITIES

Loss before taxation from operations		(255)	(385)
Adjustments:
Depreciation of property, plant and equipment		104	36
Exchange loss		4	6
Gain on disposal		(4)	(2)
Operating loss before working capital changes		(151)		(345)
Decrease/ (increase) in inventories		3	(301)
Decrease / (increase) in trade and other receivables		941	(960)
(Decrease )/ Increase in trade and other payables		(1,039)	1,151
Net cash flow (used in)/from operating activities		(95)		(455)
CASH FLOWS FROM INVESTING ACTIVITIES
Addition property, plant and equipment		(232)	(76)
Addition in capital work in progress		301	(343)
Proceeds from disposal of property, plant and equipment		4	15
Net cash flow from investing activities		73		(404)
Cash flows from financing activities
Proceeds of ordinary share issue		-	1,620
Forex reserves		(188)	(678)
Principal elements of lease payments		52	-
Net cash flow from financing activities		(136)		942
Net increase/(decrease) in cash and cash equivalents	(310)		83
Cash and cash equivalents at beginning of period		871	788
Cash and cash equivalents at end of period	12	561		871

The accompanying notes form an integral part of these consolidated financial statements.

9

GSTECHNOLOGIES LTD.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the financial year ended 31 March 2020

	Shareholder		FX		Retained
	Capital		Reserve		Earnings		Total
2020 CONSOLIDATED	US$'000		US$'000		US$'000		US$'000
Balance at 1 April 2019	1,804	(678)	1,222	2,348
Comprehensive Income
Loss for the year	-	-	(275)	(275)
Other comprehensive loss for the year	-		(188)		-		(188)
Total comprehensive loss for the year	1,804	(866)	947	1,885
Transactions with owners in their
capacity as owners:
Shares issued during the year	-	-	-	-
Balance at 31 March 2020	1,804	(866)	947	1,885
	Shareholder		FX		Retained
	Capital		Reserve		Earnings		Total
2019 CONSOLIDATED	US$'000		US$'000		US$'000		US$'000
Balance at 1 April 2018	181	-	1,607	1,788
Comprehensive Income
Loss for the year	-	-	(385)	(385)
Other comprehensive loss for the year	-		(678)		-		(678)
Total comprehensive loss for the year	181	(678)	1,222	725
Transactions with owners in their
capacity as owners:
Issue of share capital on acquisition	1,171					1,171
Shares issued during the year	1,121	-	-	1,121
Share issue costs	(669)						(669)
	1,623	-	-	1,623
Balance at 31 March 2019	1,804	(678)	1,222	2,348

The accompanying notes form an integral part of these consolidated financial statements.

10

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

1. General Information

1.1 Corporate information

The consolidated financial statements of GSTechnologies Ltd ('the company") and its subsidiaries (collectively referred to as "the Group") for the financial year ended 31 March 2020 were authorised for issue in accordance with a resolution of the Directors on 11 September 2020. The shares of the Company are publicly traded on London Stock Exchange.

The registered office of GSTECHNOLOGIES Ltd, the ultimate parent of the Group, is Intertrust Corporate Services (BVI) Limited, Ritter House, Wickhams Cay II, Tortola , BVI VG1110.

The principal activity of the Group is data infrastructure, storage and technology services.

2. Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) as adopted by the European Union (EU) as they apply to the financial statements of the Group for the year ended 31 March 2020.

The consolidated financial statements have been prepared on a historical cost convention basis, except for certain financial instruments that have been measured at fair value. The consolidated financial statements are presented in US dollars and all values are rounded to the nearest thousand except when otherwise indicated.

2.1 Consolidation

The consolidated financial statements comprise the financial statements of the Group as at 31 March 2020, and for the period then ended.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases.

The financial statements of the subsidiaries are prepared for the same reporting period as the GSTechnologies Ltd. (parent company), using consistent accounting.

All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends are eliminated in full.

Total comprehensive income within a subsidiary is attributed to the non-controlling interest even if it results in a deficit balance. A change ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

Business Combinations

Business combinations occur where an acquirer obtains control over one or more businesses. A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exceptions).

When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent

The accompanying notes form an integral part of these financial statements.

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GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

2. Basis of preparation (continued)

consideration classified as equity is not re-measured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability is re-measured in each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date.

All transaction costs incurred in relation to business combinations are expensed to the statement of comprehensive income. The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.

3. Significant accounting judgements, estimates and assumptions

The preparation of the Group's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes would differ from these estimates if different assumptions were used and different conditions existed.

In particular, the Group has identified the following areas where significant judgements, estimates and assumptions are required, and where actual results were to differ, may materially affect the financial position or financial results reported in future periods. Further information on these and how they impact the various accounting policies is located in the relevant notes to the consolidated financial statements.

Going concern

This report has been prepared on the going concern basis, which contemplates the continuation of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business.

At 31 March 2020, the Group held cash reserves of $561,000 (2019: $871,000).

The Directors are confident that the Group will generate revenue from data and technology services which will contribute to cash flow in the next 6-month period.

On this basis, the Directors believe that there are sufficient funds to meet the Group's working capital requirements.

The Group recorded a loss of $272,000 for the year ended 31 March 2020 and had net assets of $1,888,000 as at 31 March 2020 (2019: loss of $385,000 and net assets of $2,348,000).

Accruals

Management have used judgement and prudence when estimating certain accruals for contractor claims. The accruals recognised are based on work performed but are before settlement.

The accompanying notes form an integral part of these financial statements.

12

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

3. Significant accounting judgements, estimates and assumptions (continued)

Contingencies

By their nature, contingencies will only be resolved when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgement and the use of estimates regarding the outcome of future events. Please refer to Note 22 for further details.

The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of each reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in the future periods.

Judgements made in applying accounting policies

Management is of the opinion that there are no significant judgements made in applying accounting estimates and policies that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period are discussed below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Provision for expected credit losses (ECL) on trade receivables and contract assets

ECLs are unbiased probability-weighted estimates of credit losses which are determined by evaluating a range of possible outcomes and taking into account past events, current conditions and assessment of future economic conditions.

The Company uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns. The provision matrix is initially based on the Company's historical observed default rates. The Company will calibrate the matrix to adjust historical credit loss experience with forward-looking information. At every reporting date, historical default rates are updated and changes in the forward- looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Company's historical credit loss experience and forecast of economic conditions may also not be representative of customer's actual default in the future.

The carrying amount of the Company's trade receivables at the end of the reporting period is disclosed in Note 12 to the financial statements.

Revenue recognition

The Company uses the percentage-of-completion method to account for its contract revenue. The stage of completion is measured in accordance with the accounting policy stated in Note 5. Significant assumptions are required in determining the stage of completion, the extent of the contract cost incurred, the estimated total contract cost and the recoverability of the contracts. In making these assumptions, management has relied on past experience and the work of specialists.

The accompanying notes form an integral part of these financial statements.

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GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

3. Significant accounting judgements, estimates and assumptions (continued)

Significant judgement is also required to assess allowance made for foreseeable losses, if any, where the contract cost incurred for any job exceeds its contract sum. The carrying amounts of contract balances at the reporting date are disclosed in Note 12 to the financial statements.

Allowance for inventory obsolescence

The Company reviews the ageing analysis of inventories at each reporting date, and makes provision for obsolete and slow moving inventory items identified that are no longer suitable for sale. The net realisable value for such inventories are estimated based on the most reliable evidence available at the reporting date. These estimates take into consideration market demand, competition, selling price and cost directly relating to events occurring after the end of the financial year to the extent that such events confirm conditions existing at the end of the financial year. Possible changes in these estimates could result in revisions to the valuation of inventories. The carrying amounts of the Company's inventories at the reporting date are disclosed in Note 13 to the financial statements.

4. Adoption of new and amended standards and interpretations

IFRS 16 was adopted as from April 1, 2019. All operating lease contracts, with limited exceptions, were recognised on the balance sheet by recognising right-of-use assets and corresponding lease liabilities at the transition date. Group applied the modified retrospective transition method, and consequently comparative information is not restated.

At the adoption date, additional lease liabilities were recognised for leases previously classified as operating leases applying IAS 17. These lease liabilities were measured at the present value of the remaining lease payments and discounted using entity-specific incremental borrowing rates at April 1, 2019. In general, a corresponding right-of-use asset was recognised for an amount equal to each lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the specific lease contract, as recognised on the balance sheet at March 31, 2019. As a practical expedient the recognition exemption for leases with a remaining term of less than 12 months from the adoption date was applied upon adoption.

Compared with the previous accounting for operating leases under IAS 17, the application of the new standard has a significant impact on the classification of expenditures and cash flows. It also impacts the timing of expenses recognised in the statement of income. With effect from 2019, expenses related to leases previously classified as operating leases are presented under 'Depreciation, depletion and amortisation' and 'Interest expense'.

5. Summary of significant accounting policies Plant and equipment

Plant and equipment are shown at cost less accumulated depreciation and impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, any incidental cost of purchase, and associated borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. Directly attributable costs include employee benefits, professional fees and costs of testing whether the asset is functioning properly. Capitalised borrowing costs include those that are directly attributable to the construction of mining and infrastructure assets.

Property, plant and equipment relate to plant, machinery, fixtures and fittings and are shown at historical cost less accumulated depreciation and impairment losses.

The depreciation rates applied to each type of asset are as follows:

Plant and machinery	2 to 10 years
Motor Vehicles	2 to 10 years
Fixtures and fittings	3 years
Lease Improvements	5 years

The accompanying notes form an integral part of these financial statements.

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GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

5. Summary of significant accounting policies (continued)

Plant and equipment (continued)

Subsequent expenditure is capitalised when it is probable that future economic benefits from the use of the asset will be increased. All other subsequent expenditure is recognised as an expense in the period in which it is incurred. Assets that are replaced and have no future economic benefit are derecognised and expensed through profit or loss. Repairs and maintenance which neither materially add to the value of assets nor

appreciably prolong their useful lives are charged against income. Gains/ losses on the disposal of fixed assets are credited/charged to income. The gain or loss is the difference between the net disposal proceeds and the carrying amount of the asset.

The asset's residual values, useful lives and methods of depreciation are reviewed at each reporting period and adjusted prospectively if appropriate.

Inventories

Inventories are valued at the lower of cost and net realisable value

Financial instruments

These accounting policies are applied on and after the initial application date of FRS 109/IFRS 9, 1 April 2018:

1. Financial assets
2. 1. Classification, initial recognition and measurement
      The Company classifies its financial assets into the following measurement categories:
      amortised cost; fair value through other comprehensive income (FVOCI); and fair value through profit or loss (FVPL).
      Financial assets are recognised when, and only when the entity becomes party to the contractual provisions of the instruments.
      At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVPL, transaction costs that are directly attributable to the acquisition of the financial assets. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
      Trade receivables are measured at the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third party, if the trade receivables do not contain a significant financing component at initial recognition.
   2. Subsequent measurement Debt instruments
      Subsequent measurement of debt instruments depends on the Company's business model for managing the asset and the contractual cash flow characteristics of the asset. The Company only has debt instruments at amortised cost.
      Financial assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are measured at amortised cost using the effective interest method, less impairment. Gains and

The accompanying notes form an integral part of these financial statements.

15

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

5. Summary of significant accounting policies (continued)

Financial Instruments (continued)

losses are recognised in profit or loss when the assets are derecognised or impaired, and through the amortisation process.

Debt instruments of the Company comprise cash and cash equivalents and trade and other receivables.

Equity instruments

On initial recognition of an investment in equity instrument that is not held for trading, the Company may irrevocably elect to present subsequent changes in fair value in other comprehensive income which will not be reclassified subsequently to profit or loss. Dividends from such investments are to be recognised in profit or loss when the Company's right to receive payments is established. For investments in equity instruments which the Company has not elected to present subsequent changes in fair value in other comprehensive income, changes in fair value are recognised in profit or loss.

(iii)Derecognition

A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income for debt instruments is recognised in profit or loss.

1. Financial liabilities
2. 1. Initial recognition and measurement
      Financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial liabilities at initial recognition.
      All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at FVPL, directly attributable transaction costs.
   2. Subsequent measurement
      After initial recognition, financial liabilities that are not carried at FVPL are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.
      Financial liabilities measured at amortised cost comprise trade and other payables.
   3. Derecognition
      A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. On derecognition, the difference between the carrying amounts and the consideration paid is recognised in profit or loss.

Offsetting

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The accompanying notes form an integral part of these financial statements.

16

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

5. Summary of significant accounting policies (continued)

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and short-term deposits that are readily convertible to known amount of cash and that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments. For the purpose of the statement of cash flows, pledged deposits are excluded whilst bank overdrafts that are repayable on demand and that form an integral part of the Company's cash management are included in cash and cash equivalents.

Impairment

Financial Assets

These accounting policies are applied on and after the initial application date of FRS 109/IFRS 9, 1 April 2018:

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at FVPL and contract assets. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment which could affect debtors' ability to pay.

The Company considers a financial asset in default when contractual payments are past due for more than 90 days. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

Non-financial assets

The carrying amounts of the Company's non-financial assets, other than inventories, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. For the purpose of impairment testing, the recoverable amount is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the CGU to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount.

The difference between the carrying amount and recoverable amount is recognised as an impairment loss in profit or loss.

The accompanying notes form an integral part of these financial statements.

17

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

5. Summary of significant accounting policies (continued)

Impairment (continued)

An impairment loss for an asset other than goodwill is reversed only if, there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.

A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss.

Trade and other payables

Trade and other payables are non-derivative financial liabilities that are not quoted in an active market. It represents liabilities for goods and services provided to the Group prior to the year end and which are unpaid. These amounts are unsecured and have 7-30 day payment terms. Trade and other payables are presented as current liabilities unless payment is not during within 12 months from the reporting date. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

Interest-bearing loans and borrowings

Interest-bearing loans and borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost using the effective interest (EIR) method. The fair value implies the rate of return on the debt component of the facility. This rate of return reflects the significant risks attaching to the facility from the lenders' perspective.

Determination of Fair Values

A number of the Company's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Trade and other receivables

The fair values of trade and other receivables are estimated as the present value of future cash flows, discounted at the market rate of interest at the measurement date. Current receivables with no stated interest rate are measured at the original invoice amount if the effect of discounting is immaterial. Fair value is determined at initial recognition and, for disclosure purposes, at each annual reporting date.

Non-derivative financial liabilities

Non-derivative financial liabilities are measured at fair value at initial recognition and for disclosure purposes, at each annual reporting date. Fair value is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the measurement date.

Other financial assets and liabilities

The carrying amount of financial assets and liabilities with a maturity of less than one year is assumed to approximate their fair values.

Provisions

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax amount that reflects current market assessments of the time value of money, and

The accompanying notes form an integral part of these financial statements.

18

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

5. Summary of significant accounting policies (continued)

Provisions (continued)

the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Finance income

Interest income is made up of interest received on cash and cash equivalents.

Income tax

Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred income tax is provided using the balance sheet method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences. Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses, can be utilised, except:

• In respect of deductible temporary differences associated with investments in subsidiaries, deferred income tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that future taxable profit will be available to allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.

The accompanying notes form an integral part of these financial statements.

19

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

5. Summary of significant accounting policies (continued)

Foreign currencies

1. Functional and presentation currency
2. 
   The consolidated financial statements are presented in US dollars, which is the Group's presentation currency.
3. Transaction and Balances
4. 
   Transactions in foreign currencies are initially recorded in the functional currency at the respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the spot rate of exchange ruling at the reporting date. All differences are taken to the profit or loss, should specific criteria be met.
   Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
5. Group Companies
6. • 
     The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
   • Assets and liabilities for each statement of financial position presented as translated at the closing rate at the date of the statement of financial position.
   • Income and expenses for each income statement and statement of profit or loss and other comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transactions dates, in which case income and expenses are translated at the dates of the transactions), and
   • All resulting exchange differences are recognised in other comprehensive income

Revenue Recognition

These accounting policies are applied on and after the initial application date of FRS 115/IFRS 15, 1 April 2018:

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

Revenue is recognised when the Company satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation.

Rendering of services

Revenue from rendering of services is recognised as performance obligations are satisfied. Payments are due from customers based on the agreed billing milestone stipulated in the contracts or based on the amounts certified by the customers.

Where performance obligations are satisfied over time as work progresses, revenue is recognised progressively based on the percentage of completion method. The stage of completion is assessed by

The accompanying notes form an integral part of these financial statements.

20

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

5. Summary of significant accounting policies (continued)

Revenue Recognition (continued)

reference to the cost incurred relative to total estimated costs (input method). The related costs are recognised in profit or loss when they are incurred, unless they relate to future performance obligations.

If the value of services rendered for the contract exceeds payments received from the customer, a contract asset is recognised and presented separately on the balance sheet. The contract assets are transferred to receivables when the entitlement to payment becomes unconditional. If the amounts invoiced to the customer exceeds the value of services rendered, a contract liability is recognised and separately presented in the statement of financial position.

Interest Income

Interest income is recognised using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income.

Contract assets and liabilities

Contract assets primarily relate to the Company's rights to consideration for work completed but not billed at the reporting date on project work. Contract assets are transferred to trade receivables when the rights become unconditional. This usually occurs when the Company invoices the customer.

Contract liabilities primarily relate to advance consideration received from customers and progress billings issued in excess of the Company's rights to the consideration.

6. Net Operating Expenses
	2020	2019
	US$'000		US$'000
Continuing Operations
Costs of goods sold	1,420	3,147
Employee Cost	2,645	2,793
Travel Expenses	40	78
Admin Expense	354	327
Lease Expenses	71	111
Distribution, Advertising and promotion	93	107
General Expenses	44	78
Depreciation of property plant and equipment	104	39
Interest expense on leases	10	-
Occupancy costs	22	19
Income tax expense	20	17
	4,823		6,716

The accompanying notes form an integral part of these financial statements.

21

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

7.	Key management personnel
		2020	2019
		US$'000	US$'000
	Directors' emoluments	327	370
8.	Employee cost
		2020	2019
		US$'000	US$'000
	Wages and salaries	1,178	1,177
	Wages and salaries - Cost of sales	529	561
	Total	1,707	1,738
9.	Earnings per share	2020	2019
		US$'000	US$'000

Loss for the period attributable to members

Basic earnings per share is calculated by dividing the profit attributable to owners of the Parent by the weighted average

number of ordinary share in issue during the year.

Basic weighted average number of ordinary

shares in issue

Basic earnings per share-cents

Diluted earnings per share-cents

(275)(385)

669,126,659 669,126,659

(0.00)(0.00)

(0.00)(0.00)

10. Segment Reporting

The consolidated entity's operating segments have been determined with reference to the monthly management accounts used by the chief operating decision maker to make decisions regarding the consolidated entity's operations and allocation of working capital.

Due to the size and nature of the consolidated entity, the Board as a whole has been determined as the chief operating decision maker.

The consolidated entity operates in one business segment, being information data technology and infrastructure.

The revenues and results are those of the consolidated entity as a whole and are set out in the statement of profit and loss and other comprehensive income. The segment assets and liabilities of this segment are those of the consolidated entity and are set out in the Statement of Financial Position.

The accompanying notes form an integral part of these financial statements.

22

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

11. Cash and cash equivalents

20202019

US$'000 US$'000

Cash at bank

561

871

Cash at bank balance includes US$52,849.49 pledged to the bank as security for banker guarantee given to customer.

12. Trade and Other Receivables
	2020	2019
	US$'000	US$'000
Trade receivables	878	1,889
Other Receivables	323	253

13. Inventories
	2020	2019
	US$'000	US$'000
Inventories	602	605
Less: Allowance for inventory obsolescence	(290)	(290)

The movement in the allowance for inventory obsolescence is as follows:

	2020	2019
	US$'000	US$'000
Balance at beginning of year	290	322
Write-back of allowance for inventory obsolescence	0	(32)
Balance at end of year	290	290

The accompanying notes form an integral part of these financial statements.

23

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

14. Property, plant and equipment

Accumulated depreciation
As at 31 March 2018	-			46	372	112	530
Charge for the year	-			12	8	15	35
Adjustments	-			(34)			(33)	(67)
As at 31 March 2019		-			25		380		94		498
Charge for the year	55			14	21	14	104
Adjustments for disposal	-			-	-	(33)	(33)
As at 31 March 2020			55				39		401		75		569
Net book value
As at 31 March 2019		-			13		67		97		177
As at 31 March 2020		114			7		101		73		295

The accompanying notes form an integral part of these financial statements.

24

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

14. Property, Plant and equipment (continued)

(i) Lease liabilities recognised in the balance sheet

The balance sheet shows the following amounts relating to leases liabilities:

Current	55	-
Non-current	62	-
		117			-
(ii) Amounts recognised in the statement of profit or loss
The statement of profit or loss shows the following amounts relating to leases:
Depreciation	55	-
Interest expense	10	-
		65		-
15. Work in progress
		2020	2019
		US$'000				US$'000
Contract assets	247	595
Contract liabilities	-	(45)

The contract assets primarily relate to the Company's rights to consideration for work completed but not billed at the reporting date. If the value of services rendered exceeds payments received from the customer, a contract asset is recognised and presented separately. The contract asset is transferred to receivables when the entitlement to payment becomes unconditional.

The contract liabilities primarily relate to advance consideration received from customers for contract revenue. If the amounts invoiced to the customer exceeds the value of services rendered, a contract liability is recognised and presented separately.

The changes in contract balances are due to the differences between the agreed payment schedule and progress of project work.

16.	Intangible Assets
		2020	2019
		US$'000	US$'000
	Cost as at 1 April and 31 March	6	6
	Fair value :
	As at 1 April	6	6
	As at 31 March	6	6

There was no impairment during the period.

The accompanying notes form an integral part of these financial statements.

25

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

17. Subsidiaries

Details of the Company's subsidiaries at 31 March 2020 are as follows:

Name of Subsidiary	Place of	Proportion of	Proportion
	Incorporation	Ownership	of Voting
		Interest	Power
Golden Saint Technologies	Australia	100	100
(Australia) Pty Ltd
EMS Wiring Systems Pte. Ltd	Singapore	100	100

18. Taxation

Unrecognised tax losses

Where the realisation of deferred tax assets is dependent on future taxable profits, losses carried forward are recognised only to the extent that business forecasts predict that such profits will be available to the companies in which losses arose.

The parent, GSTechnologies Ltd, is not liable to corporation tax in BVI, so it has no provision for deferred tax. However, GSTechnologies (Australia) Pty Ltd is liable to tax in Australia and EMS is liable for tax in Singapore.

	2020	2019
	US$'000	US$'000
Current income tax	11	5
Adjustments for prior year	-	-
	11	5
Deferred tax expenses	9	11
	20	16

The tax expense on the results of the financial year for the Company varies from the amount of income tax determined by applying the Singapore statutory rate of income tax on Company's profit.

The accompanying notes form an integral part of these financial statements.

26

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

19. Share capital and reserves

The share capital of the Company is denominated in UK Pounds Sterling. Each allotment during the period was then translated into the Group's functional currency, US Dollars at the spot rate on the date of issue.

Number of

SharesUS$

Authorised

Ordinary shares

Issued and Fully Paid - Common Shares	420,172,001	48,753,609
At 31 December 2013
Issued during the period 1 January 2014 to 30 June	-	-
2014
At 30 June 2014	420,172,001	48,753,609
Issued during the period 1 July 2014 to 31	60,124,397	1,326,007
December 2014
At 31 December 2014	480,296,398	50,079,616
Issued during the period 1 January 2015 to 30 June	639,946,772	2,119,902
2015
At 30 June 2015	1,120,243,170	52,199,518
Issued during the period 1 July 2015 to 31	1,006,785,674	660,195
December 2015
At 31 December 2015	2,127,028,884	52,859,713
Issued during the period 1 January 2016 to 30 June	2,374,694,364	1,825,971
2016
At 30 June 2016	4,501,723,248	54,685,684
Issued during the period 1 July 2016 to 31	1,333,333,333	391,587
December 2016
At 31 December 2016	5,835,056,581	55,077,271
Issued during the period 1 January 2017 to 30 June	2,987,200,001	812,370
2017
At 30 June 2017	8,822,256,582	55,868,865
Issued during the period 1 July 2017 to 31	2,927,714,286	947,135
December 2017
At 31 December 2017	11,749,970,868	56,816,000
Issued during the period 1 January 2018 to 31	1,220,333,332	259,000
March 2018
At 31 March 2018	12,970,304,200	57,075,000
Elimination of shares on reverse take over	(12,970,304,200)	(57,075,000)
Existing shares on acquisition	259,406,084	-
Issued during the period 1 April to 31 March	736,075,918	1,623,000
2019
At 31 March 2020	995,482,002	1,623,000

27

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

1. Non-controllingequity interest
   All entities within the group are currently 100% owned and accordingly a non-controlling interest does not arise.
2. Trade and other payables

	2020	2019
	US$'000	US$'000
Trade payables	389	1365
Accruals	211	291
Other payables	19	57
Lease liabilities	55	-

Trade payables are non-interest bearing and are normally settled on 60-days terms.

1. Commitments and Contingencies
   The Group is subject to no material commitments or contingent liabilities.
2. Related party transactions
   During the period 1 April 2019 to 31 March 2020, there were no related party transactions other than loans between wholly owned subsidiaries.
3. Financial risk management objectives and policies
   The Group's activities expose it to a variety of financial risks. The Group's Board provides certain specific guidance in managing such risks, particularly as relates to credit and liquidity risk. Any form of borrowings requires approval from the Board and the Group does not currently use any derivative financial instruments to manage its financial risks. The key financial risks and the Group's major exposures are as follows:
   Credit risk
   The maximum exposure to credit risk is represented by the carrying amount of the financial assets. In relation to cash and cash equivalents, the Group limits its credit risk with regards to bank deposits by only dealing with reputable banks. In relation to sales receivables, the Group's credit risk is managed by credit checks for credit customers and approval of letters of credit by the Group's advising bank.
   Foreign Currency Risk
   Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The company is exposed to currency risk on sales and purchases, that are denominated in foreign currencies.

28

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

24. Financial risk management objectives and policies (continued)

variables held constant on the statement of comprehensive income (due to the fair value of currency sensitive nontrading monetary assets and liabilities). A positive amount in the table reflects a potential net increase in the consolidated statement of comprehensive income.

25. Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Numbers in the table below represent the gross, contractual, undiscounted amount payable in relation to the financial liabilities.

The Group monitors its risk to a shortage of funds using a combination of cash flow forecasts, budgeting and monitoring of operational performance.

	Less than	Three to
On	three	twelve	One to five
Demand	months	months	years	Total
US$'000	US$'000	US$'000	US$'000	US$'000
As at 31 March 2020:	480	194	-	674
Trade and other payables

1. Operating lease commitments
   Capital includes equity attributable to the equity holders of the parent. Refer to the statement of changes in equity for quantitative information regarding equity.
   The Group's primary objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide returns for shareholders. For details of the capital managed by the Group as at 31 March 2020, please see Note 14.
   The Group is not subject to any externally imposed capital requirements.
2. Capital management
   The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the returns to shareholders through the optimisation of the debt and equity balance.
   Capital consists of total equity.
   The directors review the capital structure on an ongoing basis. As a part of the review, the directors consider the cost of capital and the risks associated with each class of capital. Based on the recommendation of the directors, the Company will balance its overall capital structure through the payment of dividends, new share issues as well as the issue of new debts or the redemption of existing debt.
   There were no changes in the Company's approach to capital management during the year.
   The Company is registered with the Building and Construction Authority and is required to maintain certain minimum capital and net worth. The Company has complied with the applicable capital requirements for the financial years ended 31 March 2020 and 31 March 2019.

29

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

28. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. A sensitivity analysis is not presented, as all borrowing costs have been capitalised as at 31 March 2020; therefore, profit or loss and equity would have not been affected by changes in the interest rate.

30

GSTECHNOLOGIES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the financial year ended 31 March 2020

Directors' Renumeration

Policy and practice

The Group operates on a strictly "capital efficient' approach and therefore director's renumeration has been based on conservative market matching rates in order to act in the best interest of the company during the growth phase. At this time, outside of the existing shareholdings, there are no performance components included in directors' renumeration. A renumeration committee has been formed to oversee this aspect of the Group's operations.

Remuneration Committee is chaired by Mr. Malcolm Groat and the rest of the board as participating members and are responsible for determining and reviewing compensation arrangements for all Executive Directors.

The remuneration Committee is undertaking a strategic review of the structure of the director renumeration to ensure that the correct mix of fixed renumeration and performance-related incentives are provided to maintain the Company's competitiveness in the corporate marketplace.

Contracts

Directors' renumeration in its various forms was historically agreed by the Executive Chairman but is now overseen exclusively by the renumeration committee.

All contracts are continuous until terminated by either party.

Amounts of emoluments & compensation

		Salary	CPF	Total
	Director's Name
		US$'000	US$'000	US$'000
Tone Goh	110	4	114
Raphael Teo	158	9	167
Pierre Fourie	12		12
William Knight	29		29
Malcolm Groat	5		5
Total		314	13	327

On behalf of the Board

Tone Goh

Executive Chairman

11 September 2020

31

GSTECHNOLOGIES LTD - BVI

PARENT COMPANY STATEMENT OF FINANCIAL POSITION As at 31 March 2020

ASSETS

Current assets

Cash and cash equivalents

Trade and other receivables

Inventories

Total current assets

Non-current assets

Intangible Assets

Intercompany loan

Total non-current assets

TOTAL ASSETS

EQUITY

Share Capital

Reserves

Retained Earnings

Total Equity

LIABILITIES

Current Liabilities

Trade and other payables

Total Liabilities

TOTAL EQUITY & LIABILITIES

2020US$'000

3

1

299

304

6

29

35

338

58,698

-

(58,476)

222

117

117

338

In accordance with section 408 of the UK Companies Act 2006, the Company is availing itself of the exemption from presenting its individual statement of profit or loss and other comprehensive income. The Company's loss for the financial year as determined in accordance with IFRS is US$362,300.84. The Company had no operating cash flows in the period, and therefore no cash flow statement has been prepared.

32

GSTECHNOLOGIES LTD - BVI

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY

For the financial year ended 31 March 2020

		Shareholder			Reserves				Retained			Total
		Capital							Earnings
2020 CONSOLIDATED	US$'000			US$'000				US$'000			US$'000
Balance at 1 April 2019	58,698	-	(58,032)	666
Comprehensive Income
Loss for the year	-	-	(362)	(362)
Other comprehensive loss for the year	-	(82)	-	(82)
Total comprehensive loss for the year		58,698			(82)				(58,394)		222
Transactions with owners in their
capacity as owners:
Shares issued during the year	-	-	-	-
Balance at 31 March 2020	58,698	(82)	(58,394)	222

33