ALR.L Regulatory News (ALR)

29 May 2009 16:59



For immediate release 29 May 2009

ALTERNATIVE ENERGY LIMITED

Interim Results for period to 28th February 2009

Chairman's Statement

The six months from 1st September 2008 to 28th February 2009, the period covered by this report, was a period of great activity both for the global financial community and for your Company, Alternative Energy Limited ("AEL").

Against a background of deepening concern and financial turmoil which has impacted on all market sectors across the world, AEL has been quietly and consistently following its process, through the good efforts of its research team, of reviewing and testing alternative energy technologies in which the Company is interested. This has been done in accordance with the Company's investment policies with a view to achieving the Company's investment goals and achieving an acquisition which will provide substantial and tangible shareholder value.

In particular, the Company has been considering the merits of a system of micro power generation based upon a domestic and commercial roofing system as an integrated solution to power generation needs.

The drive to develop renewable energy sources as a solution to the world's energy and environmental problems is as strong as ever, and the reinforcement of the importance of renewable energy by the recently elected American President, Barack Obama, only confirms that the principles upon which AEL were founded are still sound and strong.

The current results reflect the Company's stability. Whilst the Company is still expending funds in its research which result in losses, it is expected that the fruits of such research will lead to a transaction in the short or medium term, and the value for money of the Company's research expenditure can be considered in the light of the much larger sums expended by larger companies in this sector. The Company still has substantial cash resources and will be continuing to use these prudently.

The board also felt confident enough during the course of the last six months to repurchase from shareholders shares amounting in total to US$1.2 million, which further accounts for the reduction in the Company's cash during the period. This has enabled the Company's shares to remain steady in the market and avoid the dramatic falls suffered by most other companies. 

The Company is now actively seeking to conclude an acquisition within the next six months and to benefit from the opportunities of the current, fast changing, markets.

For further information, please contact:

Alternative Energy Limited

Dr Eric Goh, Director Tel:+65 6873 7782

Richard Lascelles, Director Tel: +44 (0) 20 7408 1067

Beaumont Cornish Limited 

Roland Cornish Tel: +44 (0) 20 7628 3396

  

ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEET

		Group		Group		Group
		Unaudited		Unaudited		Audited
	Note	28.2.2009		29.2.2008		31.8.2008
		US$		US$		US$
Assets
Non-current assets
Plant and equipment	3	263,105		157,355		157,984
Intangible assets	4	805,719		464,726		643,019
Total non-current assets		1,068,824		622,081		801,003
Current assets
Cash and cash equivalents	5	3,095,755		7,003,863		5,914,760
Other receivables	6	80,910		78,575		149,830
Total current assets		3,176,665		7,082,438		6,064,590
Total assets		4,245,489		7,704,519		6,865,593
Equity and liabilities
Capital and reserves
Issued capital	7	7,605,006		7,916,392		7,916,392
Treasury shares	7	(1,200,000)		-		-
Accumulated losses		(2,211,979)		(398,998)		(1,269,762)
Foreign currency translation reserve	8	-		6,572		5,621
Total equity		4,193,027		7,523,966		6,652,251
Current liabilities
Other payables and accruals	9	22,400		180,553		181,284
Provisions	10	30,062		-		32,058
Total current liabilities		52,462		180,553		213,342
Total equity and liabilities		4,245,489		7,704,519		6,865,593

 

 ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED CONDENSED INCOME STATEMENT

		Group		Group
		1.9.2008 to		1.9.2007 to
		28.2.2009		29.2.2008
		Unaudited		Unaudited
	Note	US$		US$
Administrative expenses		(330,881)		-
Other expenses		(660,240)		(493,730)
Finance income		29,368		124,681
Finance cost		(1,094)		-
Loss before income tax	11	(962,847)		(369,049)
Income tax	12	(115)		-
Net loss for the financial period		(962,962)		(369,049)
Attributable to:
Equity holders of the Company		(962,962)		(369,049)
Loss per share (US$ cents)		US$ cent		US$ cent
Basic and diluted loss per share	13	#		#

 # denotes a figure which is less than US$0.01 

ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY 

		Attributable to the equity holders of the parent
	Note	Issued  capital	Foreign currency translation reserve	Accumulated losses	Total
		US$	US$	US$	US$
		Unaudited	Unaudited	Unaudited	Unaudited
Group
As at 1 September 2007		3,604,496	-	(29,949)	3,574,547
Foreign currency translation differences		-	6,572	-	6,572
Net income recognised directly in equity		-	6,572	-	6,572
Loss for the financial period		-	-	(369,049)	(369,049)
Total recognised income and (expenses) for the financial period		-	6,572	(369,049)	(362,477)
Issue of shares	7	4,341,663	-	-	4,341,663
Issue expenses	7	(29,767)	-	-	(29,767)
As at 29 February 2008		7,916,392	6,572	(398,998)	7,523,966
		Issued  capital	Foreign currency translation reserve	Accumulated losses	Total
		US$	US$	US$	US$
		Unaudited	Unaudited	Unaudited	Unaudited
Group
As at 1 September 2008		7,916,392	5,621	(1,269,762)	6,652,251
Foreign currency translation differences		30,000	(5,621)	20,745	45,124
Net income and (expenses) recognised directly in equity		30,000	(5,621)	20,745	45,124
Loss for the financial period		-	-	(962,962)	(962,962)
Total recognised income and (expenses) for the financial period		30,000	(5,621)	(942,217)	(917,838)
Share buy-back	7	(1,200,000)	-	-	(1,200,000)
Issue expenses	7	(341,386)	-	-	(341,386)
As at 28 February 2009		6,405,006	-	(2,211,979)	(4,193,027)

  ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED CONDENSED CASH FLOW STATEMENT 

	Group		Group
	1.9.2008 to 28.2.2009		1.9.2007 to 29.2.2008
	Unaudited		Unaudited
	US$		US$
Cash flows from operating activities
Loss before income tax	(962,847)		(369,049)
Adjustments for:
Amortisation of intangible assets	5,551		-
Depreciation of plant and equipment	59,622		8,883
Finance income	(29,368)		(124,681)
Finance cost	1,094		-
Provision for reinstatement cost	(1,320)		-
Provision for unutilised leave	(676)		-
Operating cash outflow before working capital changes	(927,944)		(484,847)
Changes in working capital:
Other receivables	68,920		(20,798)
Other payables and accruals	(158,884)		(284,488)
Net cash used in operations	(1,017,908)		(790,133)
Interest paid	(1,094)		-
Income tax paid	(115)		-
Net cash used in operating activities	(1,019,117)		(790,133)
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired	-		36,575
Addition of intangible assets	(168,251)		-
Pledged fixed deposits	(84,894)		-
Interest received	29,368		124,681
Purchase of plant and equipment	(164,743)		(159,225)
Net cash (used in)/generated from investing activities	(388,520)		2,031
Cash flows from financing activities
Purchase of treasury shares	(1,200,000)		-
Issue expenses	(311,386)		-
Proceeds from issue of shares, net of issue costs	-		1,286,897
Net cash (used in)/generated from financing activities	(1,511,386)		1,286,897
Effect of foreign exchange rate changes	15,124		6,572
Net (decrease)/increase in cash and cash equivalents	(2,903,899)		505,367
Cash and cash equivalents at the beginning of the financial period	5,914,760		6,498,496
Cash and cash equivalents at the end of the financial period (Note 5)	3,010,861		7,003,863

ALTERNATIVE ENERGY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS 

FOR THE FINANCIAL PERIOD FROM 1 SEPTEMBER 2008 TO 28 FEBRUARY 2009

1. General 

The Company was incorporated in Singapore on 26 December 2006 under the name of Alternative Energy Pte. Ltd. On 11 July 2007 the Company was converted into a public limited company and changed its name to Alternative Energy Limited (the "Company"). The Company is domiciled in Singapore. 

On 12 October 2007, the Company was successfully admitted to trading on AIM, a market operated by the London Stock Exchange.

The principal activity of the Company is the holding of investments. The registered office of the Company is at 1 Science Park Road, #02-09, The Capricorn, Singapore Science Park II, Singapore 117528.

The principal activity of the Company's wholly-owned subsidiaries, Renewable Power Pte Ltd and Alternative Energy Technology Pte Ltd, company incorporated in Singapore, are that of research and development of renewable energies for household consumers and holding of trademarks and intellectual properties respectively.

The interim unaudited financial statements of the Company and its subsidiary (the "Group") for the financial period ended 28 February 2009 were authorised for issue by the Board of Directors on 29 May 2009.

2. Basis of preparation

These unaudited interim consolidated condensed financial statements of the Group are for the six months ended 28 February 2009. They are prepared in accordance with International Accounting Standard 34, Interim Financial Reporting.

This condensed interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this condensed report is to be read in conjunction with the Annual Report for the year ended 31 August 2008 and any public announcements made by the Group during the interim reporting period.

The unaudited condensed interim financial statements for the six months ended 28 February 2009 do not constitute statutory accounts and have been drawn up using accounting policies and presentation expected to be adopted in the Group's full financial statements for the year ended 31 August 2009, which are not expected to be significantly different to those set out in note 2 to the Group's audited financial statements for the year ended 31 August 2008.

The financial information for the year ended 31 August 2008 has been extracted from the statutory accounts for that period. The auditors' report for the year ended 31 August 2008 was unqualified and did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report.

The financial information for the 6 months ended 28 February 2008 has been extracted from the interim results released to 28 February 2008.

3. Plant and equipment

	Renovation	Computers	Machinery, office equipment, furniture and fittings	Total
Group	US$	US$	US$	US$
Unaudited
28 February 2009
Cost
As at 1 September 2008	117,788	39,824	44,413	202,025
Additions	-	13,942	150,801	164,743
As at 28 February 2009	117,788	53,766	195,214	366,768
Accumulated depreciation
As at 1 September 2008	28,621	7,478	7,942	44,041
Depreciation charge for the
period	20,688	7,775	31,159	59,622
As at 28 February 2009	49,309	15,253	39,101	103,663
Net book value
As at 28 February 2009	68,479	38,513	156,113	263,105
Unaudited
29 February 2008
Cost
As at 1 September 2007	-	-	-	-
Acquisition of subsidiary	-	4,787	2,226	7,013
Additions	94,246	40,047	24,932	159,225
As at 29 February 2008	94,246	44,834	27,158	166,238
Accumulated depreciation
As at 1 September 2007	-	-	-	-
Depreciation charge for the
period	4,768	2,849	1,266	8,883
As at 29 February 2008	4,768	2,849	1,266	8,883
Net book value
As at 29 February 2008	89,478	41,985	25,892	157,355

3. Plant and equipment (Continued)

	Renovation	Computers	Machinery, office equipment, furniture and fittings	Total
Group	US$	US$	US$	US$
Audited
31 August 2008
Cost
As at incorporation and 1 September 2007	-	-	-	-
Arising from acquisition of a subsidiary	-	4,687	2,226	6,913
Additions	118,091	35,097	42,237	195,425
Foreign currency translation difference	(303)	40	(50)	(313)
As at 31 August 2008	117,788	39,824	44,413	202,025
Accumulated depreciation
As at incorporation and 1 September 2007	-	-	-	-
Depreciation charge for the period	28,695	7,495	7,962	44,152
Foreign currency translation difference	(74)	(17)	(20)	(111)
As at 31 August 2008	28,621	7,478	7,942	44,041
Net book value
As at 31 August 2008	89,167	32,346	36,471	157,984

 

4. Intangible assets

Group

Unaudited	Goodwill		Computer software		Patents		Trademarks		Total
28 February 2009
Cost	US$		US$		US$		US$		US$
As at 1 September 2008	464,726		30,351		57,626		95,712		648,415
Additions	-		4,748		98,974		64,529		168,251
As at 28 February 2009	464,726		35,099		156,600		160,241		816,666

Accumulated amortisation
As at 1 September 2008	-		5,396		-		-		5,396
Amortisation for the period	-		5,551		-		-		5,551
As at 28 February2009	-		10,947		-		-		10,947

Net book value
As at 28 February 2009	464,726		24,152		156,600		160,241		805,719

 

4. Intangible assets (Continued)

 

	Goodwill		Computer software		Patents		Trademarks		Total
Group	US$		US$		US$		US$		US$
Unaudited
29 February 2008
As at incorporation and 1 September 2007	-		-		-		-		-
Arising from acquisition of a subsidiary	464,726		-		-		-		464,726
As at 29 February 2008	464,726		-		-		-		464,726
Accumulated amortisation
As at incorporation and 1 September 2007	-		-		-		-		-
Amortisation for the year	-		-		-		-		-
As at 29 February 2008	-		-		-		-		-
Net book value
As at 29 February 2008	464,726		-		-		-		464,726
Audited
31 August 2008
Cost
As at incorporation and 1 September 2007	-		-		-		-		-
Additions	-		30,327		57,626		95,712		183,665
Arising from acquisition of a subsidiary	464,726		100		-		-		464,826
Foreign currency translation difference	-		(76)		-		-		(76)
As at 31 August 2008			30,351		57,626		95,712		648,415

Accumulated amortisation
As at incorporation and 1 September 2007	-		-		-		-		-
Amortisation for the year	-		5,410		-		-		5,410
Foreign currency translation difference	-		(14)		-		-		(14)
As at 31 August 2008	-		5,396		-		-		5,396
Net book value
As at 31 August 2008	464,726		24,955		57,626		95,712		643,019

4. Intangible assets (Continued)

Goodwill represents the excess of the cost of a business combination over the interest in the fair value of identifiable assets, liabilities and contingent liabilities acquired. Cost comprises the fair values of assets given, liabilities assumed and equity instruments issued plus any direct costs of acquisition.

Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating units and is not amortised but is tested annually for impairment or more frequently if events or changes in circumstances indicate that it might be impaired.

As at 28 February 2009, the management has assessed and determined that the goodwill is not impaired. Such assessment and determination require the management to make judgements, estimates and assumptions. These estimates and associated assumptions are continually evaluated and are based on historical experience and other factors including expectations of future events or changes in circumstances. Actual results may differ from these estimates.

Included in the patents is an amount of approximately US$1 being the cost of the option to purchase certain patents from a related party (the "vendor"). In October 2008, the Company has engaged an independent professional valuer to value certain patents to be purchased from the vendor. Based on the discounted cash flow method of valuation, the independent professional valuer has valued these patents to be at approximately US$33 million. Having considered the valuation performed by the professional valuer, the Company and the vendor have agreed to fix the purchase consideration for the purchase of these patents at US$20 million. This purchase consideration shall be fully settled by the issue of new ordinary shares of the Company on formula agreed between the Company and the vendor. At the date of the unaudited financial statements, the proposed purchase has not been completed.

5. Cash and cash equivalents

	Group		Group		Group
	Unaudited		Unaudited		Audited
	28.2.2009		29.2.2008		31.8.2008
	US$		US$		US$
Cash on hand and bank balances	510,257		878,696		1,241,323
Fixed deposits	2,585,498		6,125,167		4,673,437
Cash and bank balances	3,095,755		7,003,863		5,914,760
Less: fixed deposits pledged to a bank	(84,894)		-		(85,773)
Cash and cash equivalents as per consolidated cash flow statements	3,010,861		7,003,863		5,828,987

Fixed deposits are placed with the bank, with original maturing periods of not more than 90 days. Interest rate ranges from 0.875% to 3.27% (29.2.2008: 1.5% to 4.4% and 31.8.2008: 0.825% to 4.4%) per annum.

5. Cash and cash equivalents (Continued)

Cash and cash equivalents are denominated in the following currencies:

	Group		Group		Group
	Unaudited		Unaudited		Audited
	28.2.2009		29.2.2008		31.8.2008
	US$		US$		US$
Singapore dollar	236,630		144,978		330,749
United States dollar	2,859,125		6,858,885		5,584,011
	3,095,755		7,003,863		5,914,760

The Group's fixed deposits of US$84,894 (29.2.2008: Nil and 31.8.2008: US$85,773) are pledged to a bank for credit card facility granted to a subsidiary company.

6. Other receivables

	Group		Group		Group
	Unaudited		Unaudited		Audited
	28.2.2009		29.2.2008		31.8.2008
	US$		US$		US$
Other receivables	16,907		24,711		2,417
Deposits	57,797		47,385		143,295
Prepayments	6,206		6,479		4,118
	80,910		78,575		149,830

None of these receivables are past due or impaired as at 28 February 2009.

Other receivables are denominated in the following currencies:

	Group		Group		Group
	Unaudited		Unaudited		Audited
	28.2.2009		29.2.2008		31.8.2008
	US$		US$		US$
Singapore dollar	80,910		61,070		149,830
United States dollar	-		17,505		-
	80,910		78,575		149,830

7. Issued capital and treasury shares 

(a) Issued capital

	Group		Group		Group		Group		Group		Group
	Unaudited		Unaudited		Audited		Unaudited		Unaudited		Audited
	28.2.2009		29.2.2008		31.8.2008		28.2.2009		29.2.2008		31.8.2008
	Number of ordinary shares						US$		US$		US$
Issued and fully-paid:
Balance at beginning of financial period/years	1,183,092,564		570,445,035		570,445,035		7,916,392		3,604,496		3,604,496
Issue of new shares	-		603,235,765		603,235,765		-		3,941,663		3,941,663
Exchange difference arising from consideration paid in non-US$ from prior period	-		-		-		30,000		-		-
Issue of new ordinary shares to acquire subsidiary	-		9,411,764		9,411,764		-		400,000		400,000
Less: share issue expenses	-		-		-		(341,386)		(29,767)		(29,767)
Balance at end of financial period/years	1,183,092,564		1,183,092,564		1,183,092,564		7,605,006		7,916,392		7,916,392

The Company has one class of ordinary shares. All issued ordinary shares are fully paid and carry one vote per ordinary share and also carry a right to dividends. There is no par value for these ordinary shares.

All newly issued shares of the Company shall rank pari-passu in all respects with the then existing issued shares.

(b) Treasury shares

	Group		Group		Group		Group		Group		Group
	Unaudited		Unaudited		Audited		Unaudited		Unaudited		Audited
	28.2.2009		29.2.2008		31.8.2008		28.2.2009		29.2.2008		31.8.2008
	Number of ordinary shares						US$		US$		US$
Issued and fully-paid:
Balance at beginning of financial period	-		-		-		-		-		-
Purchase during the financial period	40,042,966		-		-		1,200,000		-		-
Balance at end of financial period	40,042,966		-		-		1,200,000		-		-

The Company acquired 40,042,966 of its own shares from its shareholders through off-market purchases at an average price of US$0.03 per share. The Company paid US$1,200,000 in cash to acquire the said shares. This amount was deducted from issued share capital within the shareholders' equity. The shares brought back are held as treasury shares. 

 

8. Foreign currency translation reserve

The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of the unaudited financial statements of the Group's subsidiary whose functional currency is other than United States dollar. This reserve is non-distributable.

On 1 September 2008, the subsidiary company changed its functional currency as the management has determined that the functional currency of the subsidiary is the United States Dollar.  In the opinion of management, the US dollar is representative of the primary economic environment in which the subsidiary operates and it reflects the economic substance of the underlying events and circumstances relevant to the subsidiary. In accordance with International Accounting Standards this change in functional currency of the subsidiary has been accounted for prospectively by translating all items using the Singapore Dollar/US dollar exchange spot rate on that date. In the subsidiary company accounts the resulting translated amounts for non monetary items at this date have been treated as their historic cost.

9. Other payables and accruals

	Group		Group		Group
	Unaudited		Unaudited		Audited
	28.2.2009		29.2.2008		31.8.2008
	US$		US$		US$
Other payables	10,699		5,017		1,133
Accruals	10,462		111,871		113,661
Provision for directors' fees	-		33,333		-
Amount due to a director	1,239		30,332		66,490
	22,400		180,553		181,284

Amount due to a director is due to Christopher Nightingale and is interest-free, unsecured and repayable on demand.

Other payables and accruals are denominated in the following currencies:

	Group		Group		Group
	Unaudited		Unaudited		Audited
	28.2.2009		29.2.2008		31.8.2008
	US$		US$		US$
British pound	-		99,296		10,264
Singapore dollar	21,161		47,924		104,530
United States dollar	1,239		33,333		66,490
	22,400		180,553		181,284

 

10. Provisions

	Group		Group		Group
	Unaudited		Unaudited		Audited
	28.2.2009		29.2.2008		31.8.2008
	US$		US$		US$
Provision for unutilised leave	10,187		-		10,863
Provision for reinstatement cost	19,875		-		21,195
	30,062		-		32,058

Provision for unutilised leave represents employee entitlements to annual leave as a result of services rendered by employees up to the balance sheet date.

Provision for reinstatement cost is relation to the obligation for dismantlement, removal or restoration of office premises.

Movements in the provisions are as follows:

	Provision  for unutilised leave		Provision for reinstatement cost		Total
	US$		US$		US$
Unaudited
28.2.2009
Balance at beginning of financial period	10,863		21,195		32,058
Provision utilised during the financial year	(676)		(1,320)		(1,996)
Balance at end of financial period	10,187		19,875		30,062

Unaudited
29.2.2008
Balance at beginning of financial year	-		-		-
Provision during the financial year	-		-		-
Balance at end of financial year	-		-		-

Audited
31.8.2008
Balance at beginning of financial year	-		-		-
Provision during the financial year	10,863		21,195		32,058
Balance at end of financial year	10,863		21,195		32,058

11. Loss before income tax

In addition to the information disclosed elsewhere in the unaudited financial statements, the Group's loss before income tax is arrived at after charging the following:

	Group		Group
	1.9.2008 to		1.9.2007 to
	28.2.2009		29.2.2008
	Unaudited		Unaudited
	US$		US$
Staff costs
-Directors' remuneration other than fees	127,412		33,333
-Employee benefits expense	176,340		-
Amortisation of intangible assets	5,551		-
Depreciation of plant and equipment	59,622		8,444
Office rental	59,276		49,203
Equipment rental	1,096		-
Foreign currency exchange loss, net	46,002		22,213
Research and development costs expensed off	13,405		2,528
Professional fees	142,598		236,336
Provision for reinstatement cost	-		9,428

 

12. Income tax

	Group		Group
	1.9.2008 to		1.9.2007 to
	28.2.2009		29.2.2008
	Unaudited		Unaudited
	US$		US$
Current income tax
- under provision in prior year	(115)		-

The income tax expense has been determined by applying the Singapore income tax rate of 17% (2008:18%) to loss before income tax and total charge for the financial period/year can be reconciled to accounting loss as follows:

	Group		Group
	1.9.2008 to		1.9.2007 to
	28.2.2009		29.2.2008
	Unaudited		Unaudited
	US$		US$
Reconciliation of effective tax rate
Loss for the financial period	(962,847)		(369,049)
Tax calculated at statutory rate of 17% (2008:18%)	(163,684)		(66,429)
Effect of changes in tax rate	7,899		-
Under provision in prior period	(115)		-
Expenses not deductible for tax purposes	155,785		66,429
	(115)		-

 

12. Income tax (Continued)

There is no deferred tax impact on these financial statements arising during the period.

13. Basic and diluted loss per share

Basic loss per share

Basic loss per share is calculated by dividing the Group's loss attributable to equity holders by the weighted average number of ordinary shares in issue during the financial period.

 The loss per share is calculated as follows:

	Group		Group
	1.9.2008 to		1.9.2007 to
	28.2.2009		29.2.2008
	Unaudited		Unaudited
Net loss attributable to equity holders of the Company	US$962,962		US$369,049
Weighted average number of ordinary shares	1,145,188,489		1,053,184,580
Basic loss per share	#		#

# denotes a figure which is less than US$0.01

 

b. Diluted loss per share

There are no potentially dilutive shares in issue.

14. Acquisition of a subsidiary

On 30 October 2007, the Company entered into a sale and purchase agreement with Dr Goh Swee Ming (the "vendor") pursuant to which the vendor sold his shareholding interest of 100% in Renewable Power Pte Ltd, a company incorporated in Singapore, to the Company for a consideration of US$400,000 which was fully paid or satisfied by way of the issuance of 9,411,764 new ordinary shares in the Company at the issue price of US$0.0425 per ordinary share (the "consideration shares"). The US$0.0425 price is based on the market price of the share as at 30 October 2007.

The allotted and issued consideration shares rank pari passu in all respects with the then existing ordinary shares of the Company save that they will not rank for any dividends, rights, allotments or any distribution, the record date of which falls before the date of issue of the consideration shares. The consideration shares represented approximately 0.79% of the enlarged issued share capital of the Company upon the completion of this acquisition.

In the prior period the acquired company did not contribute any revenue but did contribute a net loss of approximately US$290,140 to the consolidated income statement for the financial period ended 29 February 2008, since acquisition date. If the acquisition had occurred on 1 September 2007, the Group's revenue would remain the same whilst the Group's net loss for the financial period ended 29 February 2008 would have been US$369,049.

Subsequent to the above transactions, Dr Goh Swee Ming became a Director of the Company on 13 November 2007.

14. Acquisition of a subsidiary (Continued)

The carrying amount and fair value of identifiable assets and liabilities of Renewable Power Pte Ltd as at the date of acquisition and the net cash inflow on acquisition were as follows:

	Carrying amount before combination		Fair value recognised  on acquisition
	US$		US$
Plant and equipment	6,913		6,913
Intangible asset - computer software	100		100
Cash and bank balances	36,575		36,575
Current assets (other than cash and bank balances)	57,777		57,777
Current liabilities	(166,091)		(166,091)
Total net liabilities	(64,726)		(64,726)
Goodwill (Note 4)			464,726
Total purchase consideration			400,000

The purchase consideration is fully settled by the issuance of 9,411,764 ordinary shares of the Company.

		US$
Consideration paid by cash		-
Cash acquired		36,575
Net cash inflow on acquisition of subsidiary		36,575

Goodwill is attributable to the acquisition of subsidiary which is expected to provide future economic benefits in excess of the normal return generated from the acquired net identifiable assets.

15. Related parties transactions

For the purposes of these unaudited financial statements, parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

15. Related parties transactions (Continued)

Compensation of directors and key management personnel

The remuneration of directors during the financial period was as follows:

	Group		Group
	Unaudited		Audited
	28.2.2009		29.2.2008
	US$		US$
Remuneration	60,446		46,138
Post-employment benefits - CPF contribution	3,893		2,578
Short-term benefits	3,073		815
Consultancy fee paid	60,000		-
	127,412		49,531

The remuneration of Directors is determined by the Remuneration Committee having regard to the performance of individuals and market trends. The remuneration disclosed above includes only the Directors as there is no personnel other than Directors who are considered to be a member of key management of the Group.

16. Operating lease commitments

At the balance sheet date, the commitments in respect of non-cancellable operating leases of office premises and equipment were as follows:

	Group		Group
	Unaudited		Audited
	28.2.2009		29.2.2008
	US$		US$
Future minimum lease payments payable:
Within one financial year	76,775		117,274
In second to fifth financial year inclusive	6,380		87,955
	83,155		205,229

The above operating lease commitments are based on existing rates. The lease agreement provides for a periodic revision of such rates in the future. 

The Group has an option to renew the lease for another 1 year after the expiry of the current lease term.

17. Segment reporting 

No segment reporting is presented as the Group is principally engaged in a single business segment of dealing with household and industrial clean energy in Singapore.

18. Comparative figures

The comparative figures for the 6 months ended 29 February 2008 have not been audited.

ENDIR SEFFIUSUSEFI