G-Resources Group Limited — Audit Report / Information 2004

Oct 15, 2004

Listed Company Information

Listed Company Information
DNA SECURITY<01051> - Results Announcement Credit Card DNA Security System (Holdings) Limited announced on 15/10/2004: (stock code: 01051 ) Year end date: 30/6/2004 Currency: HKD Auditors' Report: Qualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/7/2003 from 1/7/2002 to 30/6/2004 to 30/6/2003 Note ('000 ) ('000 ) Turnover : 3,270 11,176 Profit/(Loss) from Operations : (32,177) (45,564) Finance cost : (854) (650) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (35,713) (59,577) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.0048) (0.0116) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (35,713) (59,577) Final Dividend : Nil Nil per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1) Basis of opinion We conducted our audit in accordance with Statements of Auditing Standards issued by the Hong Kong Institute of Certified Public Accountants, except that the scope of our work was limited as explained below. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the circumstances of the Company and the Group, consistently applied and adequately disclosed. We planned our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement. However, the evidence available to us was limited as set out below. The intangible asset with a carrying value of HK$85,884,000 at 30th June, 2004 represents a patent licence for the provision of credit card security device and digital network authorisation services. However, we were unable to obtain sufficient audit evidence to assess whether any impairment loss is required to be recognised in respect of the intangible asset. Accordingly, we were unable to satisfy ourselves that the intangible asset was fairly stated. Any adjustments to the figure would have a consequential effect [as appropriate] on the net liabilities of the Group and the Company as at 30th June, 2004 and on the net loss of the Group for the year then ended. Disclaimer of opinion Because of the significance of the possible effect of the limitation in evidence available to us referred to in the basis of opinion section of this report, we are unable to form an opinion as to whether the financial statements give a true and fair view of the state of affairs of the Company and the Group as at 30th June, 2004 and of the loss and cash flows of the Group for the year then ended. In all other respects, in our opinion the financial statements have been properly prepared in accordance with the disclosure requirements of the Hong Kong Companies Ordinance. In respect alone of the limitation on our work as set out in the basis of opinion section of this report, we have not obtained all the information and explanations that we considered necessary for the purpose of our audit. 2) LOSS ATTRIBUTABLE TO INVESTMENTS 2004 2003 HK$'000 HK$'000 Amortisation of premium on acquisition of an associate (2,750) (1,500) Gain on disposal of associate - 1,185 Unrealised gain (loss) on investments in securities 2 (17) _______ _______ (2,748) (332) _______ _______ _______ _______ For the year ended 30th June, 2003, the Group entered into an agreement with a third party to dispose of its entire interests in an associate, China Growth Enterprises Limited and a gain on disposal of HK$1,185,000 was recognised. 3) Profit / (Loss) from Operations 1.7.2003 1.7.2002 to to 30.6.2004 30.6.2003 HK$'000 HK$'000 Loss from operations has been arrived at after charging: Staff costs: Dirctors' remumeration 7,890 7,148 Other staff costs 7,650 10,689 Pension scheme contributions 343 287 --------- --------- Total staff costs 15,883 18,124 Auditors' remuneration: Current year 660 800 Overprovision in prior year - - ---------- -------- 660 800 Amortisation of intangible asset 813 - Depreciationand amortisation Owned assets 1,920 2,562 Assets held under finance leases - 48 Loss on disposal of property, plant and equipment - 50 and after crediting: Gain on disposal of investment properties 592 - Gain on disposal of property, plant and equipment - 401 Interest income 7 90 ========== ===========