MIL.L Regulatory News (MIL)

1 September 2015

Myanmar Investments International Limited

Audited financial results for the year to 31 March 2015

Myanmar Investments International Limited ("MIL", the "Company" or the "Group") an AIM-traded, investment company focussing on investing in Myanmar, today announces its audited financial results for the year to 31 March 2015.

Highlights

· Two equity fund raisings completed in December 2014 and July 2015 raising a total of US$23.7 million

· Led a US$30 million investment into Apollo Towers in July 2015, one of Myanmar's leading telecommunication tower companies

· Myanmar Finance International Limited, MIL's microfinance joint venture, has performed well since MIL's investment in September 2014

· A strong pipeline of potential investment opportunities

· Continued development of proprietary dealflow through our extensive local and regional network

Aung Htun, MIL's Managing Director commented "Our second year of operation has consolidated our base in Myanmar from which we expect the pace of investment to pick up once the result of the November general election is settled. We have a strong pipeline of interesting opportunities in a range of sectors."

For further information please contact:

Copies of the Company's annual report and accounts will be sent to shareholders shortly and will also be available to download from the Company's website www.myanmarinvestments.com.

CHAIRMAN'S LETTER

It gives me great pleasure to report on the significant progress that the Company has made over the last year. The Company has continued to build a firm foundation for its future growth. This has included:

· two successful equity offerings in December 2014 and July 2015 which raised a total of US$23.74 million between them;

· leading a US$30 million investment into Apollo Towers in July 2015, one of Myanmar's leading telecommunication tower companies;

· significant improvements at Myanmar Finance International, the Company's joint venture micro-finance company;

· broadening the Company's network to increase our deal flow both within Myanmar and neighbouring countries; and

· enhancing our team.

MYANMAR COUNTRY UPDATE

Myanmar is now in the fourth year of its unprecedented and historic transition. Despite some analysts questioning whether the reforms are slowing, the board believes that the more relevant issue is that the changes achieved so far are entrenched and irreversible. The perception of a slowdown is relative to the euphoric early years when releasing prisoners and freeing the press captured the world's attention. Progress thereafter has required consensus and realism. This inevitably takes time but now that there is a free press the debate is also being carried out in public. Myanmar is a complex country, geographically and ethnically, that has both significant wealth and poverty. It is also a deeply religious country that is well aware of its position between India and China.

New institutions such as vibrant NGOs and civil society, parliament, a free press and even the military are all trying to define their roles and responsibilities. Each group has its own vision for the future. It will take decades of trial and error before a balance is achieved.

However, the key test of a transition is the degree to which the benefits are reaching the people:

· The liberalisation of the telecom sector has drastically lowered the costs of owning and using a mobile phone, allowing more people to communicate with one another far more easily. The widespread availability of affordable smart phones has provided access to a faster and more reliable internet, which in turn gives access to news and information from both within and from outside Myanmar. Whilst this is mainly concentrated in the cities, the roll-out of the telecom towers will expand the benefits across the country.

· The banking sector has expanded to reach more customers by offering debit and ATM cards and soon there will be domestic credit cards. Just the simple act of being able to settle a utility bill via a bank branch has obviated the need to spend a day queuing at the utility in question.

· The price and availability of cars has meant that there are now many more taxi operators as well as middle class families becoming car owners for the first time. The downside is the increasingly appalling traffic jams in Yangon until the ageing road infrastructure is upgraded.

· The liberalisation of the media means that there is now widespread access to numerous Myanmar and English language journals as well as weekly and daily newspapers. Further media access has been driven by the growth in smartphones which has spawned a surge of interest in on-line activities through the likes of Facebook and Google, both of whom have Myanmar language platforms. The recent mobilisation of relief work and donations for the devastating floods in July was in large part attributable to the growth in social media.

· The growth in job opportunities working for foreign companies or companies catering to foreigners, such as those in the tourist industry, has created a surge in demand for English speaking employees. That in turn has attracted many Myanmar technicians and professionals to return to Myanmar and fill some of the skilled labour gaps.

Less visible, but important, the American Center for Strategic & International Studies reports significant progress in the health sector: important gains in HIV/AIDS prevention, treatment, and care; control of malaria; and improvements in maternal, new-born, and child mortality rates.

Education reform is also progressing, albeit slowly, but is expected to accelerate after the election.

Transition is multi-dimensional encompassing social, economic and political issues. While not all of the political demands expected by the West have been met, and locally some of the issues are not as clearly defined, initial progress in the peace process has started. If successful, this can lead to stability in the ethnic regions and pave the way for fairer resource sharing which will be conducive to economic development. In time a federal structure may evolve.

The board believes that whatever the outcome of the general election on 8th November 2015, it will cement the transition to date and lay the foundation for the next phase of the country's development. It is said that "Expectation diminishes future joy". And with high expectations it is possible that there will be disappointments relative to the various stakeholders' hopes. However, in absolute terms Myanmar's re-emergence is a multi-decade story and given its long history of resilience and resourcefulness, we expect Myanmar to take its rightful place in ASEAN.

Myanmar has noticeably been inundated by curious investors of all types (as well as by tourists) over the past three years and while the opportunities have been significant so too have been the challenges. This has meant that while the larger foreign companies have been establishing operations the medium size companies are still preferring to wait until the infrastructure has improved - which is happening:

· In the past two years, 1,105 MW of power generation capacity has been installed; possibly not a huge amount by global standards but nonetheless a 30% increase.

· The first factories are now up and running in the first phase of the 2,400 hectare Thilawa Special Economic Zone which was only commissioned at the tail end of 2013. When completed there will be over 40 foreign companies operating there: half of them will be Japanese with the rest including companies from America, Europe, China and ASEAN.

· In the past year nine banking licenses have been issued to foreign banks wanting to open a branch in Myanmar.

· The bidding process for a fourth mobile phone network operator has been initiated.

· Foreign direct investment is up US$20.8 billion to US$56.9 billion in the past 4 years, an increase of 58%. Nearly US$10 billion was achieved in the last year alone.

· Oil and gas has attracted the most FDI but there has also been a significant increase in investments in telecommunications and manufacturing.

These changes are impressive given that they only started a few years ago and resulted in GDP growth in fiscal 2014/15 reaching 8.5%. However this increase masks a number of worrying issues. Inflation in May 2015 climbed to 8% and because of the weakening Kyat and the extensive flooding this year could rise further. Persistent dollar strength and low natural gas prices could weaken the fiscal position. Myanmar has limited manufactured exports to benefit from a weak currency and the costs of imports will widen the trade deficit. Today Myanmar's foreign reserves held by the Central Bank of Myanmar remains below 3 months of imports and the current account deficit is now 6% of GDP. However our biggest concern is the apparent slowing growth in China, one of Myanmar's largest trading partners and investors.

Against this backdrop, but after the election, the board expects to see tighter monetary and fiscal policies to curb credit growth as well as attempts to slow the Kyat depreciation. More banking reforms and regulation will also be enacted. The new Yangon Stock Exchange ("YGX") will also open and will, over time, provide banks and companies access to the long term capital that is lacking in the economy. 

Against this backdrop, the board believes that the Company is ideally placed to identify suitable investment opportunities as they arise.

STRATEGY

"Our vision is to build a diversified portfolio of investments that will benefit from Myanmar's emergence"

Broadly, the Company's investments will be either "core" or "financial" investments.

Core investments will be those operating in sectors that are fundamentally important to the economy and these will be held for the long term. These investments will be managed with the view to generating dividends and, where appropriate, encouraged to list on a stock exchange. The board expects to continue to hold such investments after listing.

Financial investments will be managed with a view to an exit, typically within 5 to 7 years.

Investments could be minority or majority shareholdings and range from start-up, expansion capital financing to buyouts.

A common thread will be the quality of management and our partners. The Company only seeks to work with experienced managers with integrity and transparency.

We also seek industries where there is growth; which play to Myanmar's strengths or needs; or where our Investee Company is, or can be, within the top three players in its segment.

In essence MIL's strategy is to build net asset value per share as well as to generate dividends when it becomes commercially appropriate. Over time this should allow an attractive total return to be generated for Shareholders.

While we are building the portfolio of investments, the Company will need continually to raise capital as the board's strategy is not to over-capitalise the Company. To this end the Company will, in accordance with the strategy set out in its admission document, consider raising additional equity to fund further investments as we see potential opportunities firm up.

During this phase the portfolio is not expected to be broad based but this will even out over time.

As at the date of this report we have made two investments and these are detailed in the Executive Directors' Review.

ANNUAL GENERAL MEETING

This year's Annual General Meeting will be held at The British Club, Yangon, Myanmar at 2.00pm (Myanmar time) on Tuesday 13th October 2015. Shareholders who cannot attend the Annual General Meeting in person are encouraged to use their proxy votes. Shareholders who hold their shares through CREST are able to lodge their votes electronically.

GENERAL OUTLOOK

I write this at what has been a busy time for the executive management and staff of the Company marked by a significant investment in Apollo Towers, robust growth in the Company's microfinance operation and capped with two successful equity fund raisings. I should like to express my appreciation to them for the progress they have made and to you the shareholders of the Company for your support.

William Knight

Chairman

EXECUTIVE DIRECTORS' REVIEW

INVESTMENT ACTIVITIES

Since establishing an office in Yangon the executive team has reviewed over 100 investment opportunities in a wide range of sectors.

The executive team look at opportunities across a wide range of industries. At this stage of the country's evolution management do not think it makes sense to eliminate any particular sector of the economy. One key exception would be real estate (offices, accommodation and shopping centres) where management feel that it is currently significantly overvalued and returns depend more on the timing of entry and exit. The team focus on situations where our funds will create and/or unlock value. These are typically expansion capital situations but can also be in start-up opportunities with credible partners.

Unlike the more developed Asian markets such as Hong Kong or Singapore or even Thailand and Indonesia, Myanmar is characterised by a very limited number of professional intermediaries. As such nearly all of these opportunities were identified by our team in Yangon. The management team's ability to develop such a strong and broad-based proprietary dealflow is a clear reflection of their efforts over the past two years both on the ground and in the neighbouring countries where corporates are looking to expand into Myanmar.

Of the 109 opportunities that the team have reviewed 24 are currently active. Some of these are moving at a faster pace than others as some can hit road blocks that may take time to overcome. Patience and creativity are very much needed in all frontier markets and Myanmar is no exception.

As at the date of this report the Company has made two investments.

Myanmar Finance International ("MFIL")

In August 2014 MIL invested in MFIL. This is a joint venture with U Htet Nyi, a leading local businessman and the Norwegian and Finnish Consul to Myanmar, who transferred his existing microfinance business to MFIL.

Since becoming a shareholder, and as requested by U Htet Nyi, MIL were instrumental in recruiting an experienced managing director from Cambodia and in implementing a new Management Information System. Today MFIL has five branches in Yangon and Bago and over 15,000 borrowers.

As at 31st March, 2015 the Company had invested a total of US$1.51 million in MFIL through three pre-agreed tranches.

MFIL is a core investment where the team foresee significant growth potential not only to increase the loan book but also in terms of the range of services and products that can be offered to consumers and SME customers. In Myanmar this is a relatively new sector and is fragmented with only a handful of well capitalised players. MFIL also has a deposit-taking license.

MFIL, as a leading microfinance institution, provides small loans (typically around US$100), savings accounts and other basic financial services to people who do not have access to capital to enable them to start a livelihood. It is a key steppingstone in helping people living in poverty to become financially independent and better able to provide for their families.

Apollo Towers ("Apollo")

On 31st July 2015 it was announced that MIL had led an investment of US$30 million for a 14.18% interest in Apollo Towers Pte. Ltd, of which MIL invested US$20 million.

Apollo owns and operates a leading telecommunication towers business in Myanmar through its wholly-owned subsidiary Apollo Towers Myanmar Limited ("Apollo Myanmar"). Apollo Myanmar has already constructed over 1,100 telecommunication towers in Myanmar and recently announced a contract with Telenor of Norway, one of the two foreign mobile network operators ("MNOs") in Myanmar, for the construction of a further 717 telecommunication towers.

Telecommunication tower infrastructure is an essential component of the communication industry, hosting equipment for cellular, wireless, radio and television broadcast, microwave, and two-way radio communication throughout the world.

Apollo was founded by Sanjiv Ahuja and TPG Growth, the middle market and growth equity investment platform of TPG, a leading global private investment firm with over US$74 billion of assets under management. Mr Ahuja, a global telecom veteran and the former CEO of Orange S.A., and current Chairman of Tillman Global Holdings LLC, has founded several successful telecommunications infrastructure businesses around the globe.

Apollo constructs telecommunication towers to order by the MNOs, to increase their mobile phone coverage. Telenor has pledged to increase its network coverage to 90% of Myanmar within 5 years and Ooredoo, the other major international MNO, has pledged that 97% of the population will have access to its 3G network by 2018. The incumbent carrier, MPT, is also expanding its coverage network. Given Myanmar's current developing communication infrastructure, the pledged coverage rates will require a significant expansion of the country's telecommunication tower network, and Apollo is ideally positioned to capitalize not only on the expansion itself but on the co-location opportunities that will arise as competing MNOs seek to expand across a new market.

Apollo, by rolling out its network of towers across the country, brings telecommunications within the reach of millions of more Myanmar citizens. This doesn't just bring the benefits of conventional communication by telephony. For many Myanmar citizens their first (possibly their only) exposure to the internet will be through the cheap smart phones that are now becoming more commonplace in Myanmar. With this sort of communication comes knowledge and education.

In March the Company formed a joint venture company to apply for the securities licenses to operate on the Yangon Stock Exchange ("YGX"). As of today the outcome of this application is still not yet known.

FINANCIAL REVIEW

Since 31st March 2014 MIL has completed two further rounds of equity fund raising; the first on 9th December 2014 and then on 21st July 2015, raising an aggregate US$23.74 million. As announced on 24th July 2015 MIL's net assets stood at US$25.98 million or US$0.95 per share.

The Directors assessment of the Group's net asset value as at 31st March 2015 is that it was US$6,608,414, representing US$0.66 per share, based on the shares in issue at that time. At that date the Company had:

· an investment in MFIL (the microfinance joint venture) of US$1.51 million, being the cost of the three tranches of investment made to date; and

· liquid net assets of US$4.98 million, being sufficient to cover its working capital needs for the next 12 months and enable it to make the fourth and final tranche investment in MFIL.

In the attached audited financial statements the net asset value differs from the above stated value of US$6,608,414 due to the following differences:

Note 1: In accordance with IFRS 11 Joint Arrangements, the investment in MFIL is accounted for as an investment in joint venture using the equity method which requires the share of results to be recorded. As a result the carrying value of MFIL in the audited financial statements reflects the Group's share of MFIL's losses since investment. Whereas in accordance with the Company's Valuation Policy the Directors' valuation is based on the International Private Equity and Venture Capital Guidelines. As the investment has been made within the 12 months prior to the balance sheet date, and there has been no impairment, the estimate of fair value is based on the 'price of recent investment' which in this instance is equivalent to the original investment cost paid by MIL.

For the year to 31st March, 2015 the Company's audited loss after tax was US$1.74 million. This represents:

· the post-acquisition losses of MFIL;

· the overheads associated with running the Company's business;

· the impact of the share based payments arising from the Company's Employee Share Option Scheme; and

· costs associated with investigating investments that did not come to fruition.

Barring unforeseen circumstances, the board do not expect the level of running costs to fluctuate significantly in the foreseeable future.

Based on the above the board do not recommend payment of a dividend at this time.

OUTLOOK

2014/15 has been a busy year marked by two successful equity fund raisings, robust growth in the Company's microfinance operation and capped with a significant investment in Apollo Towers.

A firm platform has now been built with a proven team in Yangon and a strong proprietary dealflow. On top of this MIL has achieved recognition by other sophisticated investors as the local financial co-investor of choice.

The board expects the market to slow before the election on 8th November 2015 but thereafter expects the pace to pick up quickly as the demand for capital in Myanmar is driven by a real need to upgrade the physical infrastructure and for companies to increase capacity to meet higher demands both domestically and in the export markets.

The executive team are reviewing potential investments in sectors including ICT, energy, manufacturing, tourism, financial services, and the healthcare and education sectors. As and when we believe that an opportunity is credibly near the Company will return to the market for further funds.

The board are pleased with the strong support shown by the Company's shareholders in the recent fundraisings. MIL has significantly increased its share capital, broadened its shareholder base and added a number of high quality investors to its share register. With this the Company's market capitalisation has increased and has become more visible to those looking for a focussed conduit to investing in Myanmar.

*Share capital at date of incorporation is US$0.10.

These notes form an integral part of these consolidated financial statements.

1. General corporate information

Myanmar Investments International Limited ("the Company") is a limited liability company incorporated and domiciled in the British Virgin Islands ("BVI"). The Company's registered office is at Jayla Place, Wickhams Cay I, Road Town, Tortola, British Virgin Islands.

The Company's ordinary shares and warrants are traded on the AIM market of the London Stock Exchange under the ticker symbols MIL and MILW respectively. The Company can raise additional capital as described in Note 14 to the consolidated financial statements.

The Company has been established for the purpose of identifying and investing in, and disposing of, businesses operating in or with business exposure to Myanmar. The Company will target businesses operating in sectors that the Directors believe have strong growth potential and thereby can be expected to provide attractive yields, capital gains or both.

The principal activities of the subsidiaries are disclosed in Note 11 to the consolidated financial statements.

The consolidated financial statements of the Company and its subsidiaries (the "Group") for the financial year ended 31 March 2015 were approved by the board of Directors on 1 September 2015.

1.1 Going concern

After due and careful enquiries, the Directors have a reasonable expectation that the Company has adequate financial resources to continue in operational existence for the foreseeable future.

This expectation is based on a review of the Company's existing financial resources; its present and expected future commitments in terms of its overheads and running costs; and its commitments to its existing investments.

Accordingly, the Directors have adopted the going concern basis in preparing the consolidated financial statements.

2. Summary of significant accounting policies

2.1 Basis of preparation of the consolidated financial statements

The consolidated financial statements, which are expressed in United States dollars, have been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") which comprise standards and interpretations approved by IASB and International Financial Reporting Interpretations Committee ("IFRIC").

The consolidated financial statements have been prepared on an historical cost basis, except as disclosed in the accounting policies below.

For the purpose of IFRS 8 Operating Segments, the Group has only one segment, being "Investments" which is mainly the investment in the joint venture as disclosed in Note 9 to the consolidated financial statements. No further operating segment financial information is therefore disclosed.

The preparation of the consolidated financial statements in conformity with IFRSs requires the management to exercise judgement in the process of applying the Group's and the Company's accounting policies and requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period, and the reported amounts of revenue and expenses during the financial year. Although these estimates are based on the management's best knowledge of historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, actual results may ultimately differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

In the current financial period, the Group has adopted all the new and revised IFRS and interpretations that are relevant to its operations and effective for the current financial period. The adoption of these new/revised FRS and interpretations did not result in any substantial changes to the Group's accounting policies and has no material effect on the amounts reported for the current period.

Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years.

Critical accounting judgements and key sources of estimation uncertainty used that are significant to the consolidated financial statements are disclosed in Note 3 to the consolidated financial statements.

New or amended standards and interpretations that have been issued but are not yet effective

At the date of authorisation of these financial statements, the following IFRS that are relevant to the Group were issued but not yet effective, and have not been adopted early in these financial statements:

1 Effective for annual periods beginning on or after 1 July 2014

2 Effective for annual periods beginning, or transactions occurring, on or after 1 July 2014

3 Effective for annual periods beginning on or after 1 January 2016

4 Effective for annual periods beginning on or after 1 January 2017

5 Effective for annual periods beginning on or after 1 January 2018

The Directors have considered the above and are of the opinion that the above Standards and Interpretations will have no material impact on the Group's consolidated financial statements, except as discussed below.

IFRS 9 - Financial Instruments

IFRS 9 supersedes IAS 39 Financial Instruments: Recognition and Measurement with new requirements for the classification and measurement of financial assets and liabilities, impairment of financial assets and hedge accounting.

Under IFRS 9, financial assets are classified into financial assets measured at fair value or at amortised cost depending on the Group's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. Fair value gains or losses will be recognised in profit or loss except for certain equity investments, for which the Group will have a choice to recognise the gains and losses in other comprehensive income. A third measurement category has been added for debt instruments - fair value through other comprehensive income. This measurement category applies to debt instruments that meet the "Solely Payments of Principal and Interest" contractual cash flow characteristics test and where the Group is holding the debt instrument to both collect the contractual cash flows and to sell the financial assets.

IFRS 9 carries forward the recognition, classification and measurement requirements for financial liabilities from IAS 39, except for financial liabilities that are designated at fair value through profit or loss, where the amount of change in fair value attributable to change in credit risk of that liability is recognised in other comprehensive income unless that would create or enlarge an accounting mismatch. In addition, IFRS 9 retains the requirements in IAS 39 for de-recognition of financial assets and financial liabilities.

IFRS 9 introduces a new forward-looking impairment model based on expected credit losses to replace the incurred loss model in IAS 39. This determines the recognition of impairment provisions as well as interest revenue. For financial assets at amortised cost or fair value through other comprehensive income, the Group will always recognise (at a minimum) 12 months of expected losses in profit or loss. Lifetime expected losses will be recognised on these assets when there is a significant increase in credit risk after initial recognition.

IFRS 9 also introduces a new hedge accounting model designed to allow entities to better reflect their risk management activities in their financial statements.

The Group plans to adopt IFRS 9 in the financial year beginning on 1 April 2018 with retrospective effect in accordance with the transitional provisions. There may be a potentially significant impact on the accounting for financial instruments on initial adoption. Due to the recent release of this standard, the Group has not yet made a detailed assessment of the impact of this standard, however the Group will be required to reassess the classification and measurement of financial assets and the new impairment requirements are expected to result in changes for impairment provisions on trade receivables and other financial assets not measured at fair value through profit or loss.

IFRS 15 - Revenue from Contracts with Customers

IFRS 15 establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The core principle is that a company should recognise revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The amendments are applied retrospectively subject to certain transitional provisions.

The Group is in the process of making an assessment of the potential impact of these new or amended IFRSs.

This standard is effective for accounting periods beginning on or after 1 January 2017.

2.2 Basis of consolidation

Where the Company has control over an investee, it is classified as a subsidiary. The Company controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.

Inter-company transactions, balances, income and expenses between group companies are eliminated.

Accounting policies of subsidiaries are changed where necessary to ensure consistency with the policies adopted by the Group.

The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the parent.

When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognised in other comprehensive income in relation to the subsidiary are accounted for (i.e. reclassified to profit or loss or transferred directly to accumulated profits) in the same manner as would be required if the relevant assets or liabilities were disposed of. The fair value of any investments retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39 Financial Instruments: Recognition and Measurement or, when applicable, the cost on initial recognition of an investment in an associate or joint venture.

2.3 Joint arrangements

The Group is a party to a joint arrangement when there is a contractual arrangement that confers joint control over the relevant activities of the arrangement to the Group and at least one other party. Joint control is assessed under the same principles as control over subsidiaries.

The Group classifies its interests in joint arrangements as either:

- Joint ventures: where the group has rights to only the net assets of the joint arrangement

- Joint operations: where the group has both the rights to assets and obligations for the liabilities of the joint arrangement.

In assessing the classification of interests in joint arrangements, the Group considers:

- The structure of the joint arrangement

- The legal form of joint arrangements structured through a separate vehicle

- The contractual terms of the joint arrangement agreement

- Any other facts and circumstances (including any other contractual arrangements).

The Group's interest in joint ventures are accounted for using the equity method. Under the equity method, the investment in joint ventures are carried in the statement of financial position at cost plus post-acquisition changes in the Group's share in net assets of the joint ventures. The share of results of the joint ventures are recognised in profit or loss. Where there have been a change recognised directly to equity of the joint ventures, the Group recognises its share of such changes. After application of the equity method, the Group determines whether it is necessary to recognise any additional impairment loss with respect to the Group's net investment in the joint ventures.

The Group's share of results and reserves of a joint venture acquired or disposed of are included in the financial statements from the date of acquisition up to the date of disposal or cessation of joint control over the relevant activities of the arrangements.

2.4 Revenue recognition

Interest income

Interest income is recognised on an accruals basis using the effective interest rate ("EIR") method. EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.

2.5 Foreign currency translation

Transactions in currencies other than US dollars, which is the functional currency of all of the respective Group entities, are recorded at the rate of exchange prevailing on the date of the transactions.

At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rate prevailing at the end of the reporting period.

Non-monetary items carried at fair value which are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Foreign exchange gains and losses arising on the settlement of monetary items, and on the retranslation of monetary items, are included in net profit or loss for the period, except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in equity in which cases, the exchange differences are also recognised directly in equity.

2.6 Income tax

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in profit or loss if it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted at the end of the financial year.

Deferred tax is recognised on all temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method.

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets, if any, is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on the tax rates (and tax laws) that have been enacted or substantially enacted by the end of the financial year. Deferred tax is charged or credited in profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

2.7 Plant and equipment

Plant and equipment are all stated at cost less accumulated depreciation and any impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the items.

The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditure incurred after the plant and equipment have been put into operation, such as repairs and maintenance, is normally charged to profit or loss in the period in which it is incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the plant and equipment, the expenditure is capitalised as an additional cost of that asset.

Subsequent expenditure on an item of plant and equipment is added to the carrying amount of the item if it is probable that future economic benefits associated with the item will flow to the Group and the cost can be measured reliably. All other costs of servicing are recognised in profit or loss when incurred.

Disposals

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.

The gain or loss arising from disposal of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

Depreciation

Depreciation is provided to write off the cost of plant and equipment, using the straight line method, over their useful lives. The principal annual rates are as follows:

The residual values, useful lives and depreciation method are reviewed at each financial year-end to ensure that the residual values, period of depreciation and depreciation method are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of plant and equipment.

Fully depreciated assets still in use are retained in the consolidated financial statements.

2.8 Impairment of non-financial assets

The carrying amounts of non-financial assets are reviewed at the end of each reporting period to determine whether there is any indication of impairment loss and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If any such indication exists, or when annual impairment testing for an asset is required, the asset's recoverable amount is estimated.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups of assets.

Impairment losses are recognised in profit or loss, unless they reverse a previous revaluation, credited to other comprehensive income, in which case they are charged to other comprehensive income up to the amount of any previous revaluation.

The recoverable amount of an asset or cash-generating unit is the higher of a) its fair value less costs to sell and b) its value in use. Recoverable amount is determined for individual assets, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If this is the case, the recoverable amount is determined for the cash-generating unit to which the assets belong. The fair value less costs to sell is the amount obtainable from the sale of an asset or cash-generating unit in an arm's length transaction between knowledgeable, willing parties, less costs of disposal. Value in use is the present value of estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life, discounted at pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the asset or cash-generating unit for which the future cash flow estimates have not been adjusted.

An assessment is made at the end of each reporting period as to whether there is any indication that an impairment loss recognised in prior periods for an asset may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. An impairment loss recognised in prior periods is reversed only if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount.

An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss has been recognised. Reversals of impairment loss are recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal in excess of impairment loss recognised in profit or loss in prior periods is treated as a revaluation increase. After such a reversal, the depreciation or amortisation is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

2.9 Financial assets

The Group classifies its financial assets as loans and receivables. The classification depends on the purpose of which the assets are acquired. The management determines the classification of the financial assets at initial recognition and re-evaluates this designation at the end of the reporting period, where allowed and appropriate.

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables comprise "Other receivables (excluding prepayments)" and "Cash and bank balances" on the consolidated statement of financial position.

Recognition and derecognition

Financial assets are recognised on the statements of financial position when, and only when, the Group becomes parties to the contractual provisions of the financial instruments.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

On derecognition of a financial asset, the difference between the carrying amount and the net consideration proceeds is recognised in profit or loss.

Initial and subsequent measurement

Financial assets are initially recognised at fair value plus directly attributable transaction costs.

After initial recognition, other receivables (excluding prepayments) are carried at amortised cost using the effective interest method, less impairment loss, if any.

The effective interest method is a method of calculating the amortised cost of a financial instrument and allocating the interest income or expense over the relevant period. The effective interest rate exactly discounts estimated future cash receipts or payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or where appropriate, a shorter period, to the net carrying amount of the financial instrument. Income and expense are recognised on an effective interest basis for debt instruments other than those financial instruments at fair value through profit or loss.

Impairment

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired.

(i) Other receivables

An allowance for impairment loss of other receivables is recognised when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. The amount of allowance is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss is recognised in profit or loss.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed either directly or by adjusting an allowance account. Any subsequent reversal of an impairment loss is recognised in profit or loss, to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date.

2.10 Financial liabilities

Financial liabilities are classified as other financial liabilities.

The accounting policies adopted for other financial liabilities are set out below:

(i) Other payables

Other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, where applicable, using the effective interest method.

Recognition and derecognition

Financial liabilities are recognised on the consolidated statement of financial position when, and only when, the Group becomes parties to the contractual provisions of the financial instruments.

Financial liabilities are derecognised when the contractual obligation has been discharged or cancelled or expired. On derecognition of a financial liability, the difference between the carrying amount and the consideration paid is recognised in profit or loss.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

2.11 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

2.12 Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.

2.13 Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Ordinary shares are classified as equity and recognised at the fair value of the consideration received.

Incremental costs directly attributable to the issuance of new equity instruments are shown in equity as a deduction from the proceeds.

2.14 Share-based payments

Where equity settled share options are awarded to employees, the fair value of the options at the date of grant is charged to the consolidated statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Non-vesting conditions and market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition or where a non-vesting condition is not satisfied.

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the consolidated statement of comprehensive income over the remaining vesting period.

Where equity instruments are granted to persons other than employees, the consolidated statement of comprehensive income is charged with the fair value of goods and services received.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and is designated as a replacement award on the date that is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph. All cancellation of equity-settled transaction awards are treated equally.

Fair value is measured using the Black-Scholes option pricing model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

2.15 Operating leases

When the Group is the lessee of operating leases

Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are recognised in profit or loss on a straight-line basis over the period of the lease.

When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the financial year in which termination takes place.

2.16 Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the financial year, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Changes in the estimated timing or amount of the expenditure or discount rate are recognised in profit or loss when the changes arise.

2.17 Contingent liabilities

A contingent liability is:

(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or

(b) a present obligation that arises from past events but is not recognised because:

(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(ii) the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recognised on the consolidated statement of financial position of the Group.

3. Significant accounting judgements and estimates

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

3.1 Judgements made in applying accounting policies

In the process of applying the Group's accounting policies, management has made the following judgements which have the most significant effect on the amounts recognised in the consolidated financial statements:

(i) Impairment of investment in subsidiaries and joint venture

The Group follows the guidance of IAS 36 on determining whether investments in subsidiary and joint ventures are impaired. This determination requires significant judgement. The Group evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost and the financial health of and near-term business outlook for the investment, including factors such as industry and sector performance, changes in technology and operational and financing cash flows.

(ii) Classification of joint arrangements

For all joint arrangements structured in separate vehicles, the Group must assess the substance of the joint arrangement in determining whether it is classified as a joint venture or joint operation. This assessment requires the Group to consider whether it has rights to the joint arrangement's net assets (in which case it is classified as a joint venture), or rights to and obligations for specific assets, liabilities, expenses, and revenues (in which case it is classified as a joint operation). Factors the group must consider include:

- Structure

- Legal form

- Contractual agreement

- Other facts and circumstances.

Upon consideration of these factors, the Group has determined that its investment in a joint arrangement structured through a separate vehicle gives it rights to the net assets and it is therefore classified as a joint venture as disclosed in Note 9 to the consolidated financial statements.

3.2 Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated 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 Group. Such changes are reflected in the assumptions when they occur.

Impairment of investment in joint venture

In determining whether investment in joint venture is impaired requires an estimation of the recoverable amount of the investment in joint venture as at the end of the financial year. Management has assessed the value-in-use using the future cash flows expected to arise from the joint venture over a period of five years using a discount rate of 16% per annum. Estimates of future cash flows are based on a forecast annual growth in revenue of 50% based on committed capital funding by the joint venture partners to grow the business. The carrying amounts of the Group's investment in joint venture as at 31 March 2015 was US$1,450,195 (2014: Nil) as disclosed in Note 9 to the consolidated financial statements.

Employee share option plan

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and model for estimating fair value for share-based payment transactions are set out in Note 15 to the consolidated financial statements. The carrying amount of the Group's share option reserve at 31 March 2015 is US$160,113 (2014: US$74,749).

4. Employee benefits expense

The employee benefits expense includes the remuneration of Directors as disclosed in Note 17 to the consolidated financial statements.

5. Finance costs

Finance costs represent bank charges for the financial year/period.

6. Loss before income tax

In addition to the charges and credits disclosed elsewhere in the notes to the consolidated financial statements, the above includes the following charges and credits:

7. Income tax

A reconciliation of income tax applicable to loss before income tax at the statutory income tax rate of 25% (2014: 25%) in Myanmar is as follows:

8. Loss per share

Basic loss per share is calculated by dividing the loss for the financial period attributable to owners of the parent by the weighted average number of ordinary shares outstanding during the financial period.

The following reflects the loss and share data used in the basic and diluted loss per share computation:

Diluted loss per share is the same as the basic loss per share because the potential ordinary shares to be converted are anti-dilutive as the effect of the shares conversion would be to decrease the loss per share.

9. Investment in joint venture

On 26 August, 2014 the Company's wholly-owned subsidiary, Myanmar Investments Limited ("MIL"), signed a joint venture agreement ("JVA") with Myanmar Finance Company Limited ("MFC") by which, the two parties agreed to establish a Myanmar microfinance joint venture company, Myanmar Finance International Ltd. ("MFIL").

Under the terms of the JVA, MFC injected its existing microfinance business into the joint venture which is jointly managed by MIL and MFC. The two partners agreed to a four-phased contribution of US$4.8 million in capital (MIL's share being US$2.75 million) with MIL owning 55 per cent of the new company and MFC holding the remaining 45 per cent.

As at 31 March 2015, three out of the four tranches of the equity capital contribution had been called. For MIL this totalled US$1,512,500 with a further commitment, the fourth tranche, outstanding of US$1,327,500.

MFC is a well-established provider of microfinance loans to small-scale business operators in rural and urban areas of Yangon and neighbouring Bago. It is believed to be the first foreign microfinance joint venture in Myanmar.

Following this investment, the Company fulfilled the requirement to have "substantially implemented its Investment Policy" in accordance with Rule 8 of the AIM Rules for Companies within the stipulated eighteen months from the date of admission to the AIM market of the London Stock Exchange.

The detail of the joint venture is as follows:

(1) Audited by JF Group Audit Firm, Yangon, Myanmar.

The Group has 55% equity interest at a cost of US$1,512,500 in the joint venture company. Myanmar Finance International Limited is deemed to be a joint venture of the Company as the appointment of its directors and the allocation of voting rights for key business decisions require the unanimous approval of its shareholders.

The summarised financial information below reflects the amounts presented in the financial statements of the joint venture (and not the Company's share of those amounts), adjusted for differences in accounting policies between the Company and the joint venture.

10. Plant and equipment

11. Investment in subsidiaries

Details of the investments in which the Group has a controlling interest are as follows:

(1) Audited by BDO LLP, Singapore.

(2) Audited by JF Group Audit Firm, Yangon, Myanmar.

(3) Newly-incorporated and not required to be audited as the subsidiary is dormant since the date of its incorporation.

Incorporation of subsidiaries

11.1 MIL No. 2 Pte. Ltd.

On 26 September 2014, the Company incorporated a 100% owned subsidiary, namely MIL No. 2 Pte. Ltd. in Singapore with an issued and paid up share capital of S$5,000 (US$3,927 equivalent) comprising 5,000 ordinary shares.

11.2 MIL No. 3 Pte. Ltd.

On 20 October 2014, the Company incorporated a 100% owned subsidiary, namely MIL No. 3 Pte. Ltd. in Singapore with an issued and paid up share capital of S$5,000 (US$3,927 equivalent) comprising 5,000 ordinary shares.

12. Other receivables

Other receivables are denominated in the following currencies:

13. Cash and bank balances

The short-term deposit bears interest at an average rate of 0.25% per annum and is for a tenure of approximately 12 months.

The short-term deposit of the Company amounting to US$35,981 is pledged to bank to secure credit facilities.

Cash and bank balances are denominated in the following currencies:

For the purpose of the statement of cash flows, cash and cash equivalents comprise the following at the end of the financial year/period:

14. Share capital

*Share capital at date of incorporation is US$0.10.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share without restriction at meetings of the Company.

On 9 December 2014, the Company allotted 3,617,000 Ordinary Shares pursuant to a subscription for new shares (the "Second Subscription").

All shares in issue have been admitted to trading on AIM under the ticker MIL.

The new ordinary shares issued during the financial year ranked pari passu in all respects with the existing ordinary shares of the Company.

Warrants

On 21 June 2013, the Company allotted 5,842,619 Warrants pursuant to the Placing and Subscription undertaken as part of the Admission. The Company had agreed that for every Ordinary Share subscribed for by a Subscriber or a Placee, such Subscriber or Placee would receive one Warrant at nil cost.

On 9 December 2014, the Company allotted 3,617,000 Warrants pursuant to the Second Subscription. The Company had agreed that for every Ordinary Share subscribed for by a subscriber they would receive one Warrant at nil cost.

The Warrants entitle the holder to subscribe for an Ordinary share at an exercise price of US$0.75. The Warrants may be exercised at any time from 21 June 2015 to the fifth anniversary of the date of the Warrant Instrument, being 21 June 2018.

All Warrants have been admitted to trading on AIM under the ticker MILW.

15. Share option reserve

Details of the Share Option Plan (the "Plan")

The Plan allows for the total number of shares issuable under share options to constitute a maximum of one tenth of the number of the total number of ordinary shares in issue (excluding shares held by the Company as treasury shares and shares issued to the Founders prior to Admission).

Any future issuance of shares will give rise to the ability of the Remuneration Committee to award additional share options. Such share options will be granted with an exercise price set at a 10 percent premium to the subscription price paid by shareholders on the relevant issue of shares that gave rise to the availability of each tranche of share options.

Share options can be exercised any time after the first anniversary and before the tenth anniversary of the grant (as may be determined by the Remuneration Committee in its absolute discretion) of the respective share options.

Share options are not admitted to trading on AIM but application will be made for shares that are issued upon the exercise of the share options to be admitted to trading on AIM.

As at 31 March 2015, there were 945,961 (2014: 584,261) share options available for issue under the Plan of which 574,061 have been granted. These share options have a weighted average exercise price of US$1.121 (2014: US$1.10) per share.

Of the 945,961 share options available they were created under the following series:

The following share-based payment arrangement were in existence during the current financial year:

Share options that are allocated to a Participant will be subject to a three year vesting period during which the rights to the share options will be transferred to the Participant in three equal annual instalments provided, save in certain circumstances, that they are still in employment with or engaged by the Company.

Fair value of share options granted in the financial period

The weighted average fair value of the share options granted during the financial year is US$0.476 (2014: US$0.397). Share options were priced using Black-Scholes option pricing model. Where relevant, the expected life used in the model has been adjusted based on management's best estimate for the effects of non-transferability, exercise restrictions (including the probability of meeting market conditions attached to the option), and behavioural considerations. Expected volatility is based on historical share price volatility from the date of grant of the share options.

The Black-Scholes option pricing model uses the following assumptions:

The Group recognised total expenses of US$85,364 related to equity-settled share-based payment transactions during the financial year.

Movement in share option during the financial year/period

The following reconciles the share options outstanding at the start of the year and at the end of the year / period.

No share options were exercised during the financial period.

Share option outstanding at the end of the financial year/period

The share options outstanding at the end of financial period had a weighted average exercise price of US$1.10 and a weighted average contractual life of 8.57 years (2014: 9.27 years).

16. Other payables

Other payables are denominated in the following currencies:

17. Significant related party disclosures

For the purposes of these consolidated financial statements, parties are considered to be related to the Group and the Company if the Group and the Company have 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 Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

Compensation of key management personnel

For period from 17 May 2013 (date of incorporation) to 31 March 2014 and for the financial year to 31 March 2015, no emoluments were paid by the Group to the Directors as an inducement to join or upon joining the Group or as compensation for loss of office.

The remuneration of Directors for the period from 17 May 2013 (date of incorporation) to 31 March 2014 and for the financial year to 31 March 2015 are as follows:

(1) During the financial period ended 31 March 2014 the Executive Directors had agreed to forgo 50% of their compensation unless and until, in accordance with Rule 8 of the AIM Rules for Companies, the Company had "substantially implemented its Investment Policy". This condition was fulfilled with the investment in Myanmar Finance International Limited in September 2014. As such the contingent liability of the unpaid compensation, which amounted to US$132,968 as at 31 March 2014, was recognised and settled in the financial year ended 31 March 2015. This amount is included in the Short Term Employee Benefits in the financial year ended 31 March 2015.

18. Commitments

Operating lease commitments - as lessee

The Group leases the Yangon office and accommodation for Directors under non-cancellable operating leases. The operating lease commitments are based on rental rates as specified in the lease agreements. The Group has the options to renew certain agreements on the leased premises for another one year.

In accordance with prevailing market conditions in Yangon, lease payments are paid in advance.

Future minimum rentals payable under non-cancellable operating leases at the reporting date are as follows:

19. Dividends

The Directors of the Company do not recommend any dividend in respect of the financial years ended 31 March 2015 and 31 March 2014.

20. Financial risk management objectives and policies

The Group has risk management policies that systematically manage the risks that could prevent it from achieving its objectives. These policies are intended to manage risks identified in such a way that opportunities to deliver the Group's objectives are achieved. The Group's risk management takes place in the context of day-to-day operations and normal business processes such as strategic and business planning and are kept under review by the Directors. The Directors have identified each risk and are responsible for coordinating and continuously improving risk strategies, processes and measures in accordance with the Group's established business objectives.

The Group's principal financial instruments consist of investments, other receivables, cash and bank balances and other payables. The main risks arising from the Company's financial instruments and the policies for managing each of these risks are summarised below.

20.1 Credit risk

Credit risk is the risk of loss associated with the counterparty's inability to fulfil its obligations. The Group's credit risk is primarily attributable to other receivables and cash and bank balances with the maximum exposure being the reported balance in the consolidated statement of financial position. The Group has a nominal level of debtors and as such the Company believes that the credit risk to these is minimal. The Group holds available cash with licensed banks which have a strong history. The Group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk.

20.2 Market risks

Foreign currency risks

The Group incurs foreign currency risk on transactions and balances that are denominated in currencies other than its functional currency, the United States dollar. The main currencies giving rise to this risk are the Singapore dollar, Myanmar kyat and British Pound. Exposure to foreign currency risk is monitored on an on-going basis to ensure that the net exposure is at an acceptable level.

The Group monitors its foreign currency exchange risks closely and maintains funds in various currencies to minimise currency exposure. Currency translation risk arises when commercial transactions, recognised assets and liabilities and net investment in foreign operations are denominated in the currency that is not the entity's functional currency.

The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period were as follows:

Foreign currency sensitivity analysis

No sensitivity test was performed as the exposure to foreign currency risk is not significant to the consolidated financial statements.

Interest rate risk

The Group does not have any significant exposure to interest rate risk as the Group does not have any significant interest bearing liabilities and its interest earning assets are producing relatively low yields.

20.3 Liquidity risk

The Group is exposed to liquidity risk to the extent that it holds investments that it may not be able to sell quickly at close to fair value.

The risk is managed by the Group by means of cash flow planning to ensure that future cash requirements are anticipated and, where financial instruments have to be sold to meet these requirements, the process is carried out in a controlled manner intended to minimise the liquidity risk involved.

As at 31 March 2015, the Group's principal financial instruments consist mainly of cash and bank balances. As such the investments are highly liquid and capable of being realised at their fair value.

20.4 Fair value of financial assets and financial liabilities

The carrying amounts of the Group's current financial assets and financial liabilities approximate their respective fair values due to the short term maturity of these financial instruments.

20.5 Capital management

The Group manages its capital to ensure that the Group is able to continue as going concern and to maintain an optimal capital structure so as to maximise shareholders' value.

The management constantly reviews the capital structure to ensure the Group is able to service any debt obligations and contracted overheads based on its operating cash flows. At present the Group has taken on no debt obligations, other than other payables, and therefore has no difficulties in settling its debts as they fall due.

Rule 8 of the AIM Rules for Companies, requires that within eighteen months from the date of admission to the AIM market of the London Stock Exchange the Company is required to have "substantially implemented its Investment Policy". This requirement was fulfilled during the financial year with the investment in the joint venture as disclosed in Note 9 of the consolidated financial statements.

The Group is not subjected to any externally imposed capital requirements for the financial year ended 31 March 2015 and the financial period ended 31 March 2014.

21. Comparatives

The financial statements for 2014 cover the financial period from 17 May 2013 (date of incorporation) to 31 March 2014. The financial statements for 2015 cover the twelve months ended 31 March 2015. Therefore, the comparative amounts for the statement of comprehensive income, statement of changes in equity and statement of cash flow and related notes are not entirely comparable.

22. Subsequent event review

Equity fund raising

On 21 July 2015, the Company raised US$19,942,395 through the issuance of 17,341,214 new ordinary shares. As part of this fund raising the Company also issued 5,780,408 new warrants.

Investment

On 31 July 2015 the Company's newly incorporated subsidiary, MIL 4 Limited ("MIL 4") invested US$30 million into Apollo Towers Pte. Ltd. ("Apollo") for an equity interest of 14.18%.

Apollo owns and operates a telecommunication towers business in Myanmar through its wholly-owned subsidiary Apollo Towers Myanmar Limited.

The Company contributed US$20 million for a 66.67% shareholding in MIL 4. LIM Asia Special Situations Master Fund Limited, a substantial shareholder of the Company, contributed US$9.8 million for a 32.67% shareholding in MIL 4 and the remaining 0.67% of MIL 4 is held by a third-party.

MIL 4's investment in Apollo represents a 14.18% interest in Apollo.

The terms of the Investment include, inter alia, protections for MIL 4 relating to the future disclosure of financial information and the securing of third-party debt financing by Apollo.

Notes to Editors:

Myanmar Investments (the "Company") is the first Myanmar focused investment company to be admitted to trading in London and has been established for the purpose of investing in businesses operating in or with business exposure to Myanmar. The Company will target businesses operating in sectors that the Directors believe have strong growth potential and thereby can be expected to provide attractive yields, capital gains or both. In addition to investing into local businesses the Company will also partner with foreign companies investing in Myanmar.

In August 2014 the Company made its first investment in a microfinance joint venture company as detailed in its announcements on 26 August and 1 September 2014.

In July 2015 the Company made an investment in Apollo Towers Pte Ltd a telecommunication tower company as detailed in its announcement on 31 July 2015.

Since its Admission in June 2013, when the Company raised US$6.1 million, it has since raised a further US$23.7 million.

Myanmar, a country of approximately 51.4 million people and roughly the size of France, has been isolated for much of the last 50 years. Once one of the more prosperous countries in Southeast Asia as it has an abundance of natural resources (oil, natural gas, arable land, tourist attractions and a long coastline), it is now one of the least developed countries in the world and has been the subject of sanctions imposed on it by the EU and the US, amongst others.

The Company's primary objective is to build capital value over the long term by making investments in a diversified portfolio of Myanmar businesses that will benefit from Myanmar's re-emergence.

For more information about MIL, please visit www.myanmarinvestments.com