Orient Telecom. Regulatory News (ORNT)

ORIENT TELECOMS PLC

INTERIM FINANCIAL STATEMENTS

For the six months ended 30 September 2018

Director's Statement

I have pleasure in presenting the interim financial statements of Orient Telecoms plc (the "Company") for the period from 1 April 2018 to 30 September 2018.

During the financial period, the Company reported a net loss of £124,198 (£0.012 loss per share).

Since the listing of the company, we have been extensively working on the marketing and sales related activities in the region.

The good news is that, we have started to seal the potential opportunities starting mid-2018 and so far we have achieved satisfactory results as forecasted. Thus far company has successfully signed more than 30 deals including some of the very high-profile customers in Malaysia.

We are continuously working to establish the Orient Telecoms brand and our business consultants are successfully able to create the awareness in the target market. As a part of not only creating brand awareness but also to attract more subject matter experts from the industry, the company had organised a number of Technology events such as TechTalk and Technology Seminars on disrupting technologies. These events helped the company to gain more attention of the target audiences from various business sectors.

The company shall continue to invest on its marketing and awareness initiative to ensure the forecasted results are achieved.

 Responsibility Statement

The Directors are responsible for preparing the interim financial statements in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority ('DTR') and with International Accounting Standard 34 on Interim Financial Reporting (IAS 34) as adopted by European Union.

The Directors confirm that, to the best of their knowledge, the interim financial statements have been prepared in accordance with IAS 34 as adopted by the European Union. The interim financial statements include a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

· an indication of important events that have occurred during the first six months and their impact on the interimfinancial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

· material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

Mark Pincock

Director

19 December 2018

CONDENSED STATEMENT OF COMPREHESIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2018

CONDENSED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED TO 30 SEPTEMBER 2018

Period from 1 April 2018 to 30 September 2018 (unaudited)

Period from 1 April 2017 to 30 September 2017 (unaudited)

Period from 1 April 2017 to 31 March 2018 (audited)

1. GENERAL INFORMATION

The Company was incorporated in England and Wales on 26 February 2016, as a public company limited by shares under the Act. The principal legislation under which the Company operates is the Act. The registered office of the Company is at the offices of London Registrar, Suite A, 6 Honduras St, London EC1Y 0TH United Kingdom.

The Company was admitted to the Official List (by way of a Standard Listing) and to trading on the London Stock Exchange's main market for listed securities on 25 October, 2017.

2. ACCOUNTING POLICIES

Basis of preparation

The condensed financial information for the period ended 30 September 2018 and 30 September 2017 have been prepared in accordance with IAS 34, Interim Financial Reporting. The condensed financial information is unaudited and does not constitute statutory financial statements. The comparative interim financial information covers the period from 1 April 2017 to 30 September 2017.

The principal accounting policies used in preparing the interim financial statements are the same as those applied in the Company's financial statements as at and for the year ended 31 March 2018, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") issued by the International Accounting Standards Board ("IASB"), including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"). The auditors' report on those accounts was unqualified and unmodified.

The condensed financial information is presented in British Pound Sterling ("£").

The interim financial statements for the six months ended 30 September 2018 was approved by the Directors on 19 December 2018.

Going concern

These interim financial statements have been prepared on a going concern basis.

The Board's review of the accounts, budgets and financial plan leads the directors to believe that the Company has sufficient resources to continue operation for the foreseeable future. The financial accounts are therefore prepared on a going concern basis.

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of unaudited interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses for the current and its corresponding financial period under review. Actual results may differ from these estimates.

In preparing the unaudited interim financial statements, the significant judgements made by the management in applying the Company's accounting policies and the sources of estimates uncertainty were consistent as those applied to the 2018 Audited Financial Statements.

There were no changes in estimates of amounts of the Company that may have a material effect on financial period ended 30 September 2018.

4. REVENUE

Revenue represents the fair value of the consideration received or receivables for communication services.

Revenue is recognised when it is probable that the economic benefits associated with a transaction will flow to the Company and the amount of revenue and associated costs can be measured reliably and over the period to which the charges relate.

The Company receives payment for services from channel partner who onwardly sell to end users. The channel partner is treated as the principal in that transaction because the channel partner has the primary responsibility for providing the services to the end user; the channel partner is free to establish its own prices with or without bundling with other goods or services which are not supplied by the Company; and the channel partner bears the credit risk for the amount receivable from the end user. The Company therefore recognises revenue based on the transactions with the channel partner and not the end user.

All revenue derived from Malaysia. Revenue excludes value added tax and other sales taxes.

5. LOSS PER SHARE

Basic loss per ordinary share is calculated by dividing the loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. There are currently no dilutive potential ordinary shares.

Loss per share attributed to ordinary shareholders

6. BANK

Cash and Cash equivalents are denominated in the following currencies:

7. TRADE AND OTHER RECEIVABLES

8. TRADE AND OTHER PAYABLES

9. SHARE CAPITAL

Ordinary shares of ₤1 each

On 29 September 2017, the existing 50,000 ordinary shares of £1.00 each was converted to 500,000 shares of £0.10 each. A further 500,000 new ordinary shares of £0.10 each were issued concurrently to the existing shareholder. These ordinary shares were fully paid through the conversion of the shareholder's loan owed by the Company, amounted to £87,500.

On 25 October 2017, the Company was admitted to the Official List (by way of a Standard Listing) and to trading on the London Stock Exchange's Main Market. On admission, 9,000,000 shares of £0.10 each were issued and fully paid. From listing total proceed of £900,000, the Company received net proceed of £769,860, after deduction of listing and broker cost.

At 31 March 2018 and 30 September 2018, the total issued ordinary share of the Company were 10,000,000.

10. SEASONAL OR CYCLICAL FACTORS

There are no seasonal factors that materially affect the Company's operation.

11. RELATED PARTY TRANSACTIONS

In 2017 the company entered into an agreement with a third party which provides consultancy service agreement in relation to the listing exercise of the Company.

Orient Management Services Limited is jointly owned by Mark Pincock and Sayed Mustafa Ali, directors of the Company.

Sayed Mustafa Ali is a director of both, the Company and Orient Telecoms Sdn Bhd.

12. SUBSEQUENT EVENT

There were no subsequent events after the reporting period.