Annual Report 2015
RapidCloud International Plc  
 
0 
 
RapidCloud International provides cloud-based building blocks for its clients to create and manage 
powerful business solutions online. These solutions can be accessed at any time, from anywhere using 
any smart device. 
With the full spectrum of cloud-based products and services and proven delivery models of Software 
as a Service, Platform as a Service and Infrastructure as a Service, we strive to excel in delivering 
tangible values to our customers and contribute in leading technological advances within the cloud 
industry. 
 
Table of contents 
 
REVIEW OF THE YEAR 
01 Highlights of 2015 
02 Chairman’s Statement 
03 Chief Executive’s Statement 
 
CORPORATE GOVERNANCE 
08 Board of Directors 
11 Directors’ Report 
15 Remuneration Committee Report  
17 Audit Committee Report 
20 Independent Auditors’ Report 
 
 FINANCIAL STATEMENTS 
22 Consolidated Statement of Comprehensive Income 
23 Consolidated Statement of Financial Position 
25 Consolidated Statement of Cash Flows 
27 Consolidated Statement of Changes in Equity 
29 Notes to the Consolidated Financial Statement 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
   
Highlights of 2015 
1 
Financial highlights 
• Revenue of RM17.1 million (2014: RM17.8 million) 
• EBITDA of RM3.18 million (2014: RM5.36 million) 
• Cash as at year-end of RM6.8 million (2014: RM3.9 million) 
 
 
Operational highlights 
• Several new contracts awarded including RedBox, the award winning courier service of Air 
Asia, a world’s leading printing enterprises and a major Southeast Asian airline  
• Signed significant strategic agreements with Hewlett Packard, CS Loxinfo and Oriented Media 
Group Bhd 
• Successfully launched several new products and services during the period, including: 
o RapidDocs 
o ManageWeb 
o Internet of Things connectivity Management Solution 
• Enhanced the Board with the appointment of Cindy Choo as Finance Director 
• Significantly strengthened the balance sheet through the strategic investment of £1.74 million 
and the payment of the interim dividend of £0.0067 per share through by cash and a reverse 
scrip dividend 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Chairman’s Statement 
2 
There is no doubt the 12-month period to 31 December 2015 was a difficult period as the Company 
contended with a benign market for web-hosting and web-solutions across Southeast Asia. 
 
Notwithstanding the challenging trading environment, the Company continued to invest in new 
products and services and strengthened the balance sheet whilst developing strategic partnerships 
with a number of global enterprises to ensure the Company is well placed to win increasing numbers 
of larger new contracts this year and beyond. 
 
Strategic Partnerships 
I was particularly pleased to see the Company sign several important strategic partnerships during the 
period with multi-national organisations such as Hewlett Packard, CS Loxinfo and, post-period end, 
Alibaba Cloud, a subsidiary of Alibaba.com. It is now a strategic focus across the Company to partner 
with global enterprises, where possible, to ensure the Company is well placed to win significant levels 
of new business this year and beyond. 
 
Balance Sheet Strengthened 
During the period we appointed WH Ireland as nominated advisor and broker to the Company. The 
board believes WH Ireland is well placed to manage the Company’s investment profile in the capital 
markets and completed a subscription with investment company Coston-Smith Asset Management to 
raise £1.74m, before expenses, during the period. 
 
I was also particularly pleased with the level of shareholder support during the recent reverse Scrip 
Dividend, which was widely taken up by our shareholder base increasing both the liquidity in the 
Company’s equity whilst preserving the strength of the Company’s balance sheet. 
 
In combination, these two events, further strengthened the balance sheet to provide much needed 
funding for investment in new products and services and enhanced working capital facilities.  
 
I am now pleased to report the investment phase across all our products and services is now largely 
complete and working capital management at the subsidiary level has been significantly improved. 
 
Senior Personnel  
On 19 January 2015, Darren Hopkins ceased to be the Group's Interim Finance Director in order to 
enable him to take up another UK based opportunity. I would personally like to thank Darren for his 
work as Interim Finance Director, which assisted the Company develop its financial reporting 
processes and achieving its IPO. 
 
Cindy Choo joined RapidCloud as Finance Director shortly after and was appointed to the Board on 5 
February 2015. Cindy's appointment was consistent with RapidCloud's stated intention to appoint a 
full time Finance Director, based in Malaysia, to the Board. 
 
Finally, I would also like to thank the board and all the employees for their commitment and continued 
support, which have been invaluable during the past year and we can all now look to the future with 
increased confidence as the Company capitalises on the numerous opportunities this year and beyond. 
 
 
David Cotterell 
Chairman 
 
29 June 2016   
Chief Executive’s Statement 
3 
Financial Review 
Since the beginning of the financial year under review, the Company has continued to invest in 
products, sales and marketing functions and has successfully launched several new products 
specifically designed for the enterprise segment, significantly expanding its addressable market. 
 
In order to fund the investment in products and further the commercial development of the Company, 
we announced two strategic financial events during the year to strengthen the balance. 
• In June 2015 the Company announced it had raised £1.74m (before expenses) by way of a 
subscription by the Southeast Asian asset management firm, Corston-Smith Asset 
Management (‘Corston-Smith’), who subsequently have a 14.88% holding in RapidCloud. 
• In December 2015, the Company paid its interim dividend of £0.0067 per share by way of cash 
of RM207,000 and a reverse scrip dividend of RM730,000. 
 
The collective effect of both of these events meant that the Company finished the year end with cash 
and cash equivalents of RM6.8m versus RM3.9m for the previous year despite the continued 
investment in Corporate and products development. 
 
Operational Review  
During the year, RapidCloud continued to sign new contracts and commercial agreements with 
significant partners and customers demonstrating its strong position across our target markets.  The 
progress achieved during the year and post the year end, described in more detail below, evidence 
the continued operational progress the Company is making. 
 
New Contract Wins 
RapidCloud has recently announced several new contracts, demonstrating the strong market position 
the Company commands and the increasing traction the Company’s products and services are gaining 
across out target markets across South East Asia: 
 
• In April 2015, the Company announced it had won a contract with RedBox, the award-winning 
courier service of AirAsia.  Under the initial five-year contract, RapidCloud will design, build 
and operate a cloud-based Logistic Management System (LMS) for RedBox, AirAsia.  The 
proprietary LMS will provide a complete end-to-end solution to monitor the entire shipment 
network with a fully integrated online Booking & Tracking portal.  The LMS will be hosted and 
operated from RapidCloud’s datacentre in Kuala Lumpur. 
• In May 2015, the Company also announced that its wholly owned subsidiary, Emerge Systems 
(M) Sdn. Bhd., had won contracts with two major international companies for its newly 
launched PortalWEB product worth an aggregate RM1 million, (£0.18m) in the first year. 
o The first of these PortalWEB contract wins was with one of the world’s leading printing 
enterprises.  Under the terms of the Software-as-a-Service (‘SaaS’) contract, 
RapidCloud will build a framework and workflow system to handle internal purchase 
requisition, purchase orders, invoices, budgeting, contracts and assets management 
to automate the internal procurement approval processes. 
o The second contract was with a major Southeast Asian airline.  Under the terms of the 
SaaS contract, RapidCloud will build an internal Training Management System (‘TMS’) 
on its PortalWEB platform.  The TMS application will be developed to manage job 
posting, job recruitment, coaching, candidate profiling and on-the-job assessments.  
Job seekers, recruiters, trainers and administrative users will be granted different 
access controls and functionality to perform individual tasks.  Dashboards for Business 
Intelligence analysis will provide an overview of the various key performance 
indicators of the entire placement processes enabling company-wide decision 
making.   
Chief Executive’s Statement 
4 
• In May 2016, the Company announced a contract win with Wellmart Online Sdn Bhd 
(‘Wellmart’), a subsidiary of the automotive & plantation conglomerate Delloyd Ventures Bhd, 
for the Company’s e-commerce portal system development tools and consulting services.  This 
contract is expected to generate revenue of approximately RM550,000 in its first year of 
operation. 
 
Commercial Progress 
 CS Loxinfo & Hewlett Packard 
In February 2015, the Company signed a strategic partnership agreement with CS Loxinfo PCL 
(‘CS Loxinfo’), a leading systems integrator and Internet Services Provides (ISP) in Thailand, for 
an initial period of three years, and announced its partnership with Hewlett Packard (‘HP’) in 
June 2015. 
 
CS Loxinfo is one of the most long-standing and recognised ISP brands in Thailand with 
considerable and wide-reaching customer base whereas HP is one of the most successful and 
recognised IT solutions providers in the world. 
 
This innovative partnership provides enterprise and SME customers with multiple large-
bandwidth redundant connections to International and domestic Internet gateways over a 
secure and scalable on-premise or public cloud delivery environment. 
 
Oriented Media Group Bhd 
In July 2015, the Company secured an agreement with Oriented Media Group Bhd (‘OMEDIA’) 
to develop a comprehensive Business-to-Business (‘B2B’) e-commerce platform for small to 
medium sportswear manufacturers, wholesalers and retailers across Asia. 
 
OMEDIA is a Malaysia-based company focused on software and services across the logistics 
and digital media industries. The logistics business offers web-based management systems to 
manage complex logistics networks while the digital media business offers a range of services 
including publishing massive multiplayer online games (MMOG), internet Ad serving and the 
development of edutainment related products and services. OMEDIA is listed on the 
Malaysian stock exchange.  
 
Under the 24-month agreement, RapidCloud will supply all the necessary hardware and 
software for OMEDIA to develop an Online Sportswear Trading Platform (‘OSTP’) to enable 
manufacturers, initially across the Fujian province of the Peoples Republic of China (’PRC‘) to 
market and trade their products with wholesalers and retailers directly online. 
 
RapidCloud will also offer additional modules for OMEDIA to enhance the OSTP over the term 
of the agreement to enable users to manage their own virtual storefronts, track and monitor 
customer accounts and improve their own finance and human resources via additional 
proprietary cloud based software and services. 
 
Alibaba Cloud 
In March 2016, RapidCloud signed a strategic partnership with Alibaba.com Singapore E-
commerce Private Limited (’Alibaba Cloud’), the international business and cloud computing 
arm of the Alibaba Group (NYSE:BABA). 
 
Alibaba Cloud is one of the world's largest e-commerce companies, and was established in 
2009 to operate the network that powers Alibaba's extensive online and mobile commerce 
ecosystem with a comprehensive suite of cloud computing services globally.    
Chief Executive’s Statement 
5 
The partnership allows RapidCloud to offer Alibaba Cloud's public cloud infrastructure, 
consulting, managed services, training and support across its offices in South East Asia. 
RapidCloud will also make its key products available from Alibaba Cloud’s platform as a total 
service offering to its customers. After six months of research and development, RapidCloud's 
key products such as its enterprise content management system, sales automation tool and 
document management have already been developed to be tightly integrated onto Alibaba 
Cloud’s platform. This will allow Alibaba and Alibaba Cloud users to be able to subscribe to 
such services easily. 
 
The benefits of having RapidCloud's products on Alibaba Cloud platform include better 
reliability, faster access from various locations, including China and better scalability. At the 
same time, RapidCloud will also be working together with Alibaba Cloud and its parent 
company Alibaba to implement various go to market strategies and cross-selling 
opportunities. 
 
RapidCloud Singapore 
We are also pleased to report that RapidCloud Singapore has now become a Certified Partner 
of Google Inc. It is widely known that only the very best service providers receive the coveted 
Google Partner Badge and places RapidCloud Singapore amongst a small number of elite 
businesses offering services with this accreditation. 
 
This division is now a trusted agency of Google and listed on Google’s Partner Search, its 
proprietary online directory for trusted agencies for search engine optimisation and search 
engine marketing. As such, we expect RapidCloud to approach and secure larger contracts in 
the future with international ‘blue chip’ customers. 
 
SalesMAP Sdn. Bhd. 
Subsequent to the year end, SalesMAP Sdn. Bhd. was established in Malaysia to market and 
sell the Company’s flagship product, SalesMAP.  SalesMap is an intelligent sales system and a 
platform to build a structured sales process and manage sales performance. 
 
Whilst sales to date have been modest, the Company remains confident that this initiative will 
deliver significant shareholder value over the medium term. 
 
Product Development 
During the year the Company continued to invest in the development of new products and services 
and launched a number of new revenue initiatives during the year, specifically targeted at the needs 
of both existing and potential customers. 
 
RapidDocs 
The Company launched RapidDocs during the year, which provides Document Management 
Systems (‘DMS’) via the cloud. RapidDocs is believed to be one of the simplest and most cost 
effective DMS solution across Southeast Asia today. The DMS has been specifically designed 
to minimise the need for physical storage space, by eliminating duplicate documents, whilst 
ensuring collaboration on the most up to date copies are shared throughout the organisation 
for seamless collaboration. 
 
 
 
 
   
Chief Executive’s Statement 
6 
ManageWeb 
During the period, the Company successfully upgraded ‘ManageWeb’, its core website 
solution platform. Following the upgrade, which includes the addition of new features and 
operating enhancements, it has received significant new interest and recognition from its 
customer base by allowing them to optimise their user experience and enhance their business 
website. 
 
Internet of Things (‘IoT’) connectivity Management Solution 
The Company has now launched IoT Connectivity Management Solution that seamlessly 
addresses all the requirements of various industries currently deploying IoT solutions.  The IoT 
Connectivity Management Solution empowers them to collate, manage, monitor and report 
the data received from their IoT-enabled devices. 
 
Subsequent to the year end, the Company has also invested in the development of new cloud 
computing products and services. 
 
Disaster Recovery as a Service (‘DRaaS’) 
In May 2016, RapidCloud announced the launch of a Disaster Recovery as a Service. DRaaS is 
a cloud delivered disaster recovery managed service for protecting companies from loss of 
mission critical data in the event of a man-made or natural disaster. It is designed to ensure 
business continuity by minimising downtime and disruption in the event of server failure or 
other disaster. 
 
The Company signed two strategic partnerships, with Symphonet Sdn Bhd and Interlink 
Communication PCL in Malaysia and Thailand respectively, to market the DRaaS solution.  
 
Symphonet is a Malaysian fibre optic network operator offering dedicated high speed data 
Internet connections, wireless, Ethernet, leased lines, IP CCTV solutions, network services and 
network security services to over 1,000 businesses, large corporations and commercial 
buildings in Malaysia. 
 
Interlink is one of the largest fibre optic backbone providers in Thailand and is currently 
engaged in implementation of high speed structured telecommunication networks and 
distribution of networking solutions. Interlink is publicly traded on the mainboard of the Stock 
Exchange of Thailand (SET).  
 
These strategic partnerships allow Symphonet and Interlink to offer their customers a 
selection of RapidCloud's enterprise applications, beginning with DRaaS, which can be 
packaged together with their fibre connectivity, to provide a seamless and reliable high-speed 
transfer of critical data between the customer's primary server and RapidCloud's DRaaS 
facility. 
 
Ximplify 
Ximplify is a cloud business email service and is already one of the most affordable and fully-
featured business email in the market today. The Company will make this service available 
globally and Ximplify is the brand that will propel us to become a global cloud computing 
service provider. 
 
 
 
   
Chief Executive’s Statement 
7 
Outlook 
2015 was undoubtedly a period of consolidation with significant investment in products, services and 
the sales and marketing functions across the Company against a difficult market backdrop across the 
Southeast Asia region. 
 
The commercial agreements now signed, with both national and international organisations, 
demonstrate the strength of the Company’s products and services and the board believes the launch 
of the new products and services, coupled with the strong financial control of all aspects of the Group, 
has positioned the Company for significant and sustainable profitable growth during 2016 and beyond. 
 
 
 
Raymond Chee 
Chief Executive 
 
29 June 2016   
Board of Directors 
8 
David Vernon Cotterell 
(aged 63) Non-Executive Chairman 
 
Mr Cotterell has nearly 30 years’ experience in the information technology software and service sector.  
He has held senior management roles with firms such as ACT Financial Systems, DST, Advent and AIM 
listed SQS Group Plc.  This wide ranging experience includes senior roles in international start-ups, 
organisations requiring change and mature businesses with establish brands.  Mr Cotterell has led and 
successfully implemented two trade sales of technology companies.  He holds other IT related board 
level positions and sits on the boards of two other AIM companies; Chairman of SyQic Plc (LSE: SYC) 
which joined AIM in December 2013 and he is also Non-Executive Director of Crossrider Plc (LSE: CROS) 
which listed in September 2014.  He is also Director of Europe for Qualitest services. 
 
 
Chee Han Wen 
(known as Raymond, aged 39), Chief Executive, Managing Director and founder of the Group 
 
Mr Chee graduated from Universiti Kebangsaan Malaysia in Applied Physics with major in Physics 
Computing in 1999.  He established E-Focus Internet Sdn Bhd (‘E-Focus’), a company that was involved 
in web business search engines, content management system and Wireless Application Protocol (WAP) 
as well as Spyder Systems (M) Sdn Bhd, an MSC status company formed to research and develop digital 
video recording software applications over the Internet. 
 
Mr Chee was a member of the Multimedia Engineering Research Group (MERG) from 1999 to 2000, 
during which he was a researcher in Java-based Smart Card systems and Internet compression 
technologies in Universiti Putra Malaysia.  In 1999 he founded Emerge Technology Centre which 
became the platform for the establishment, which has now grown and evolved into the Group as it is 
today.  As a result of his successes with the Group, he was awarded the JCY Young Entrepreneur Award 
from the Junior Chamber International in 2008. 
 
Mr Chee is married to the Group’s Operations Director, Chong Lip Kian. 
 
 
Chew Man Fai 
(aged 41), Technical Director 
 
Mr Chew leads the technical team in R&D and the implementation of the Group’s Cloud Computing 
products/services.  He is responsible for shaping the Group’s long-term technology strategy and 
driving innovation within the technical team. 
 
He graduated with a Bachelor of Science (Hons) in Physics from UKM in 1999.  He has more than 10 
years of experience in the ICT industry in which he was involved in project management, systems 
architecture design and development.  He started his career as a Systems Analyst in Aplnet Singapore 
Pte Ltd and in 2001 he worked as a Project Manager in EC1 Pte Ltd, which was for a joint venture 
company between Singapore Computer System and GE Global Exchange Services.  During the course 
of his employment, he has successfully implemented several projects pertaining to the Supply Chain 
Management System and Enterprise Application Integration (EAI) for enterprises.  In 2003, he was a 
Chief Consulting Office in Exceez Technologies Sdn Bhd for 3 years before joining the Group in 2006. 
   
Board of Directors  
9 
Cindy Choo 
(aged 40), Finance Director 
 
Miss Cindy graduated with a Bachelor of Commerce degree majoring in Accounting and Finance from 
the University of Western Australia in 2007 and is a Chartered Accountant of Malaysian Institute of 
Accountants (MIA), Certified Practising Accountant of Australia (CPA), Chartered Tax Practitioner of 
Chartered Tax Institute of Malaysia (CTIM), Certified Financial Planner of Malaysian Financial Planning 
Council (MFPC) and Registered Financial Planner of Financial Planning Association of Malaysia (FPAM).  
She is currently holding the Professional licensing of Approved Inland Revenue Board of Malaysia Tax 
Consultant and Approved Goods & Services Tax (GST) Consultant awarded by Ministry of Finance, 
Malaysia. 
 
Cindy brings with her a wealth of experience having worked for 16 years at Perfect Advisory Sdn Bhd 
(‘Perfect Advisory’), a Malaysia headquartered business and finance consultancy servicing.  Cindy 
joined Perfect Advisory in 1998 as Director of its Tax Planning and Advisory division before becoming 
CEO in 2001.  Under Cindy’s leadership, Perfect Advisory greatly expanded from a tax compliance 
specialist to a provider of business, accounting, bookkeeping, financial planning and GST advisory and 
consultancy services.  She has over 16 years working experience in handling tax consulting, accounting, 
financial planning, GST consulting and business advisory services. 
 
 
Chong Lip Kian 
(aged 40), Operations Director 
 
Mrs. Chong has been with ESM since its inception in 2001 and heads the Group’s Finance and 
Administration functions.  She graduated from Universiti Kebangsaan Malaysia with a Bachelor of 
Science degree in Mathematics in 1999.  Upon graduation, she joined Allied Hori Sdn Bhd as a 
Production and Material Planner where her responsibilities included managing the daily production 
schedule as well as procurement handling and planning.  In 2000, she joined E-Focus Internet Sdn Bhd 
as the Operations Manager to oversee its administrative and human resources matters.  She has over 
twelve years working experience in handling finance, administrative and human resources functions. 
 
Chong Lip Kian is married to the Group’s Managing Director, Raymond Chee. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Board of Directors  
10 
Du Kiat Wai  
(known as William, aged 37), Non-Executive Director 
 
Mr Du graduated from the University of Hertfordshire, England with a First Class Honours in BA (Hons) 
Accounting in 1999 and a Master in Business Administration in 2000.  His MBA thesis titled “Acquisition 
of Midland Bank by HSBC” was presented at the 19
th
 World Association for Case Method Research & 
Application Conference in Manheim, Germany in 2002. 
 
He started his career as a trainee accountant in London.  Later, he joined PricewaterhouseCoopers 
(‘PwC’), specialising in transfer pricing and tax investigations.  He left PwC to join Star Cruise Ltd as a 
Senior Corporate Planning Executive before setting up his own consulting firm in 2003.  He has 
extensive experience in debt and equity fund raising, corporate restructuring, corporate development 
and competitive strategy. 
 
He was elected as the management committee of the Malaysian Venture Capital & Private Equity 
Association 2007 – 2010, and executive council of Technopreneur Association of Malaysia 2005 – 2008.  
He was invited to be part of the Evaluation & Investment Committee of Cradle Investment Program, 
Business Advisory & Assessment Program of Multimedia Development Corporation and many other 
investment programs as panel investors and advisors. 
 
 
Brian Wong Wye Pong 
(aged 43), Non-Executive Director 
 
Mr Wong graduated with a Bachelor of Commerce degree in Accounting and Finance from the 
University of Western Australia in 1995 and is a Chartered Accountant with the Malaysian Institute of 
Accountants, a Fellow with CPA Australia, a certified practising accountant and registered auditor with 
the Kampuchea Institute of Certified Public Accountants and Auditors as well as Certified Financial 
Planner with the Financial Planning Association of Malaysia.  Having previously worked with KPMG, 
Kuala Lumpur, he has also served as the head of corporate affairs for Analab Resources Berhad, a 
public listed company.  Mr Wong is presently a director of Privasia Technology Berhad, a technology 
services corporation listed on Bursa Malaysia Securities, and Mann Seng Metal International Limited, 
a specialist steel engineering corporation listed on the Singapore Stock Exchange.  He is also a partner 
with PKF Malaysia. 
   
Directors’ Report 
For the year ended 31 December 2015 
11 
 
 
The directors of RapidCloud International Plc (‘RCI’ or the ‘Company’) present their report together 
with the audited consolidated financial statements of RCI and its subsidiaries (together the ‘Group’) 
for the year ended 31 December 2015. 
 
Principal activities and business review 
The Group’s principal activity during the year was the provision of software solutions to businesses 
through Southeast Asia.  A full review of the Group’s business operations is set out in the Chairman’s 
Statement and Chief Executive’s Statement. 
 
The Company was incorporated in Jersey on 15 March 2013 as a private company originally under the 
name RapidCloud Limited.  On 3 July 2013 the Company re-registered as a public company and 
changed its name to RapidCloud International Plc.  On 14 August 2013, the Company was admitted to 
the AIM Market of the London Stock Exchange. 
 
During the year the Group increased both its client base and product offering which has contributed 
to revenue of RM17.15 million (2014: RM17.82 million) and profit after tax of RM0.86 million (2014: 
RM3.67 million). 
 
Outlook 
The directors are pleased that the Company has launched new solutions into the addressable market 
over the past year.  With these new products and services, we are focused on delivering value to our 
customers for sustainable and profitable growth in 2016 and beyond.  We continue to consolidate and 
strengthen our sales and marketing operations and broaden our technical skillsets to capitalise on 
numerous opportunities. 
 
Results and dividends  
During the year, the Group made a profit after taxation of RM0.86 million (2014: RM3.67 million). 
 
Dividends totalling RM0.94 million were paid during the year through cash of RM0.21 million and scrip 
of RM0.73 million at share price of 25.85p. 
 
Risks relating to the Group and its business 
 
Competition 
There is significant competition in the software industry with low barriers to entry, new entrants and 
larger competitors with significant financial resources.  There is risk that competitors have or will 
develop products that are competitive to the Group in terms of functionality, quality or price. 
 
Technological evolution 
Changing customer needs, introduction of new products and continual technologies evolution may 
impact the Group’s business products.  To mitigate this risk, the Group continuously invests in the 
research and development of new customer centric products.   
Directors’ Report  
For the year ended 31 December 2015  
12 
 
 
Economic, legislative and political risks 
The Group may be affected by the adverse developments in the political, economic and regulatory 
environment in which the Group operates.  Uncertainties in the political and economic environment 
include: expropriation; nationalisation; inflation and deflation; changes in interest rates and taxation 
regime and currency exchange control.  Any deterioration in the economic climate could result in the 
delay or cancellation of customers’ technology investment projects and in a more prolonged economic 
downturn, it may lead to the overall decline in the sales of the Group that restrict the growth and 
profitability of the Group.  Whilst the Group strives to continue to take measures to protect itself 
against such risks with prudent financial management and efficient operating procedures, there is no 
assurance that adverse political, economic and regulatory environments will not adversely affect the 
Group. 
 
Credit Risk 
The Group adopts a policy of only dealing with counterparties that the Directors consider to be credit 
worthy. Receivables are monitored on an on-going basis via Group’s management reporting 
procedures and action will be taken for long outstanding debts deemed irrecoverable. While the 
Group had a high level of old receivables at the year end, action is being taken to recover old balances 
and a more formal credit control policy is to be implemented to ensure that the recoverability of 
receivables improves in the future.  
 
Foreign currency risk 
The Group may experience fluctuations in exchange rates that may have a material adverse effect on 
the Group’s profitability or pricing competitiveness for its products and services.  There can be no 
guarantee that the Group would be able to compensate or hedge against such adverse effects and 
negative exchange rate effects could have a material adverse effect on the Group’s business and 
financial performance. 
 
Protection of intellectual property 
The Group protects its proprietary rights on its software for major technology platforms where the 
core products are built. These protected platforms are SME WebCombo, E-Commerce Combo and 
TotalWEB! Lite.  The Group is also reliant on the internal processes and systems to protect such rights.  
Whilst the Directors believe that the Group’s efforts to protect its proprietary rights in its proprietary 
systems, processes and software are adequate, there is a risk that they may not suffice to prevent 
misappropriation of its intellectual property and it may not be able to detect unauthorised use of or 
take appropriate steps to enforce, its intellectual property rights. 
 
Directors 
The directors of the Company who served during the year and to the date of this report were: 
 
Chee Han Wen  
Chew Man Fai  
Chong Lip Kian  
David Vernon Cotterell  
Du Kiat Wai 
Brian Wong Wye Pong 
Cindy Choo (appointed 5 February 2015) 
 
 
 
   
Directors’ Report  
For the year ended 31 December 2015  
13 
 
Directors’ interests  
Director’s interests in the Company (inclusive of any beneficial interests) along with the percentage of 
total number of issued ordinary shares are as follows: 
 
                         As 31 December 2015 
Name Number of Ordinary Shares % of Ordinary Shares 
Chee Han Wen 
(1)
 1,389,041 6.27 
Chew Man Fai 
(2)
 319,408 1.44 
Chong Lip Kian 
(3)
 1,282,518 5.79 
David Vernon Cotterell 170,605 0.77 
Du Kiat Wai 516,109 2.33 
Brian Wong Wye Pong 26,673 0.12 
Cindy Choo - - 
 
1. Chee Han Wen holds 1,389,041 ordinary shares in his own name.  Additionally he has a  
beneficial interest in a further 6,922,719 ordinary shares which are held by RapidCloud 
Holdings Ltd, a BVI company which is held as to 61 per cent. by Chee Han Wen, 22 per cent. 
by Chew Man Fai and 17 per cent. by Kenneth Cheng Ju Wan.  In addition, Chee Han Wen is 
also interested in a further 1,282,518 ordinary shares held by his wife, Chong Lip Kian.  
 
2. Chew Man Fai holds 319,408 ordinary shares in his own name.  Additionally he has a  beneficial  
interest in a further 6,922,719 ordinary shares which are held by RapidCloud Holdings Ltd, a 
BVI company which is held as to 61 per cent. by Chee Han Wen, 22 per cent. by Chew Man Fai 
and 17 per cent. by Kenneth Cheng Ju Wan.  In addition Chew Man Fai is also interest in 
238,908 ordinary shares held by his wife, Chan Siu Lee. 
 
3. Chong Lip Kian holds 1,282,518 ordinary shares in her own name.  In addition to these, her 
interest includes 1,389,041 ordinary shares in which her husband, Chee Han Wen holds in his 
own name together with a further 6,922,719 ordinary shares which Chee Han Wen is 
beneficially interested in and which are held by RapidCloud Holdings Ltd, a BVI company which 
is held as to 61 per cent. by Chee Han Wen, 22 per cent. by Chew Man Fai and 17 per cent. by 
Kenneth Cheng Ju Wan. 
 
Subsequent events 
Subsequent to the year end, SalesMAP Sdn. Bhd., a wholly owned subsidiary of SalesMAP Pte. Ltd., 
was established in Malaysia and SalesMAP Pte. Ltd., a wholly owned subsidiary of RapidCloud 
International Plc., was established in Singapore to market and sell the Company’s flagship product, 
SalesMAP.  SalesMap is an intelligent sales system and a platform to build a structured sales process 
and manage sales performance. 
 
Going concern 
The Board has a reasonable expectation that the Group has adequate resources to continue in 
operational existence for the foreseeable future.  The Board will continue to monitor the progress of 
the development of its activities and the financial position in order to ensure that the Group continues 
to have sufficient funding to continue in business.  For this reason, the Board continues to adopt the 
going concern basis in preparing the financial statements. 
 
   
Directors’ Report  
For the year ended 31 December 2015  
14 
 
Statement of Directors’ responsibilities 
The Directors are responsible for preparing the Directors’ Report and the financial statements in 
accordance with applicable laws and regulations. 
 
Company law requires the Directors to prepare the financial statements for each financial year.  Under 
that law, the Directors have prepared the financial statements in accordance with International 
Financial Reporting Standards (IFRS) as adopted by the European Union.  Under company law, the 
Directors must not approve the financial statements unless they are satisfied that they give a true and 
fair view of the state of affairs of the Group as at the end of the financial year and profit or loss of the 
Group for the financial year then ended.  In preparing these financial statements, the Directors are 
required to: 
 
• select suitable accounting policies and then apply them consistently; 
 
• make judgements and accounting estimates that are reasonable and prudent; 
 
• state whether applicable IFRS as adopted by the European Union have been followed, subject 
to any material departures disclosed and explained in the financial statements; and 
 
• prepare the financial statements on the going concern basis unless it is appropriate to 
presume that the Group will not continue in business. 
 
The Directors are responsible for keeping adequate accounting records that are sufficient to show and 
explain the Group’s transactions and disclose with reasonable accuracy at any time the financial 
position of the Group.  They are also responsible for safeguarding the assets of the Group and hence 
for taking reasonable steps for the prevention and detection of fraud and other irregularities. 
 
Directors’ disclosure to the auditors 
The Directors confirm that: 
 
• to the best of each Director’s knowledge and belief, there is no information relevant to the 
preparation of their report of which the Group’s auditors are unaware; and 
 
• each Director has taken all the steps a Director might reasonably be expected to have taken 
to be aware of any relevant audit information and to establish that the Group’s auditors are 
aware of the information. 
 
Auditors 
UHY Hacker Young LLP has indicated their willingness to continue in office and shall be deemed 
reappointed unless and until they are removed. 
 
On behalf of the Board 
 
David Cotterell 
Chairman 
 
29 June 2016   
Remuneration Committee Report  
For the year ended 31 December 2015  
15 
 
As an AIM quoted company, RapidCloud International Plc. has adopted a number of the best practices 
as proposed in the Remuneration Committee Guide for Smaller Quoted Companies of The Quoted 
Companies Alliance. 
 
Remuneration Committee 
The Remuneration Committee comprises: 
 
 David Cotterell   Non-Executive Chairman, Chairman of the Committee 
 Brian Wong Wye Pong  Non-Executive Director 
 Du Kiat Wai   Non-Executive Director 
 
The Remuneration Committee is responsible for determining the Group’s policy on the remuneration 
of senior executives and specific remuneration packages for Executive Directors, including pension 
rights and compensation payments. 
 
Meetings 
Two (2) remuneration committee meetings were held in 2015.  Details of attendances are set out 
below:  
 
David Cotterell 2/2 
Brian Wong Wye Pong 2/2 
Du Kiat Wai 2/2 
 
Remuneration policy 
The objective of the remuneration policy is to attract, retain and motivate high calibre executives to 
deliver outstanding shareholder returns and at the same time maintain an appropriate compensation 
balance with the other employees of the Group. 
 
Directors’ remuneration 
The normal remuneration arrangement for Executive Directors consists of base salary and other 
benefits as determined by the Board.  Each Executive Director has a service agreement that can be 
terminated by either party giving to the other 6 months’ written notice.  Compensation for loss of 
office is restricted to base salary and benefits only. 
 
The remuneration package for the Executive Directors comprise: 
 
Base salary – annual review of the base salaries of the Executive Directors is conducted after taking 
into account the Executive Director’s roles, responsibilities and contributions to Group performance. 
 
Benefits – benefits include payments for provident funds that are mandatory and statutory pension 
payments as required by laws of the resident countries of the Executive Directors, health insurance 
and other benefits. 
 
Non-Executive Directors 
Remuneration of the Non-Executive Directors is currently solely in the form of director fees 
determined by the Board.  Non-Executive Directors are not entitled to pensions, annual bonuses or 
employee benefits. 
 
 
   
Remuneration Committee Report  
For the year ended 31 December 2015  
16 
 
They are entitled to participate in share option arrangements relating to the Company’s shares but no 
such share option arrangement is in place at this time.  Each Non-Executive Director has a letter of 
appointment stating his annual fee and that the appointment is to continue unless terminated by the 
Company by giving 3 months’ written notice or by the Non-Executive Director giving 6 months’ notice. 
 
Directors are not involved in specific discussions on their own remuneration. 
 
The interests of Directors (and their immediate family) over the ordinary shares of the Company are 
disclosed in the Directors’ Report. 
 
Directors’ Remuneration 
 
  
Salary/Fees 
RM’000 
Employee’s Provident 
Fund/ Retirement Fund 
RM’000 
2015 
Total 
RM’000 
2014 
Total 
RM’000 
Executive     
Chee Han Wen 235 8 243 281 
Chew Man Fai 240 10 250 270 
Chong Lip Kian 230 8 238 270 
Cindy Choo 120 - 120 - 
     
Non-Executive     
David Cotterell 162 - 162 102 
Du Kiat Wai 65 - 65 55 
Brian Wong Wye Pong 65 - 65 55 
 1,117 26 1,143 1,033 
 
 
Approved by the Board and signed on its behalf 
 
David Cotterell 
Chairman of the Remuneration Committee 
 
29 June 2016 
   
Audit Committee Report 
For the year ended 31 December 2015 
17 
 
Membership 
The present members of the Audit Committee comprise: 
 
Brian Wong Wye Pong Non-Executive Director, Chairman of the Committee 
David Cotterell Non-Executive Director 
Du Kiat Wai Non-Executive Director 
 
Members of the Audit Committee are appointed by the Board, and must comprise a minimum of two 
members from amongst the non-executive Directors of the Company.   
 
At least two members of the Audit Committee shall have recent and relevant financial experience, and 
all members should have sufficient competence to understand, analyse and, when necessary, 
challenge the management accounts and draft public financial statements. 
 
Chairman 
The Board shall appoint the chairman of the Audit Committee who shall chair the meetings of the 
Audit Committee.  The chairman must be a Non-Executive Director.  The chairman shall have the 
responsibility of liaising with the Board. 
 
Frequency of meetings 
The Audit Committee shall meet at least twice a year and at such other times as the chairman of the 
Audit Committee shall require.   
 
Any member of the Audit Committee, or the external auditors may request a meeting if they consider 
that one is necessary. 
 
Duties 
The Audit Committee shall have access to sufficient resources in order to discharge its duties.   
 
The Audit Committee is authorised by the Board to investigate any activity within its terms of 
reference.  It is authorised to seek any information it reasonably requires from any employee and all 
employees are directed to co-operate with any reasonable request made by the Audit Committee. 
 
The Audit Committee shall be responsible for: 
 
Financial Reporting 
• monitoring the integrity of the financial statements of the Group, including its annual and 
interim accounts and reports, preliminary results’ announcements and, any other formal 
announcements relating to the Group’s financial performance, reviewing significant financial 
reporting judgements contained in them; 
 
• reviewing summary financial statements, significant financial returns to regulators and any 
financial information contained in certain other documents such as announcements of price 
sensitive information; 
 
• reviewing and challenging where necessary: 
- the consistency of, and any changes to, accounting policies both on a year on year basis 
and across the Group; 
- the methods used to account for significant or unusual transactions where different 
approaches are possible;   
Audit Committee Report 
For the year ended 31 December 2015 
18 
 
- whether the Group has followed appropriate accounting standards and made appropriate 
estimates and judgements, taking into account to the views of the external auditor; 
- the clarity of disclosure in the company’s financial reports and the context in which 
statements are made; and 
- all material information presented with the financial statements, such as the operating 
and financial review and the corporate governance statement (in so far as it relates to the 
audit and risk management). 
 
• discussing whether the Audit Committee should recommend that the financial statements 
and accompanying reports should be approved by the Board in the Board meeting following 
the Audit Committee meeting and, if so, whether that approval should be granted subject to 
any matters discussed by the Audit Committee. 
 
External Auditors 
• making recommendations to the Board, for it to put to the Shareholders for their approval in 
general meeting, in relation to the appointment, re-appointment and removal of the external 
auditor and approving the remuneration and terms of engagement of the external auditor 
and any matters relating to their resignation or dismissal; 
 
• reviewing and monitoring the external auditor’s independence and objectivity as well as their 
qualifications, expertise and resources and the effectiveness of the audit process, taking into 
consideration relevant UK, Jersey, Malaysian,  Singapore, Thai  and Philippine legal and other 
relevant professional and regulatory requirements; 
 
• discussing the nature and scope of the audit with external auditors; co-ordinating the audit 
where more than one firm is involved; monitoring and reviewing any problems or reservations 
arising from the audit; and discussing any matters which the external auditor wishes to discuss, 
without executive Board members present; 
 
• discussing any difficulties, reservations or other matters arising from the external auditors’ 
interim and final audits (in the absence of management, where necessary); 
 
• reviewing, prior to its consideration by the Board, the external auditors’ report to the directors 
and management’s response; 
 
• developing and implementing policy on the engagement of the external auditor to supply non-
audit services, taking into account relevant ethical guidance regarding the provision of non-
audit services by the external audit firm; and reporting to the Board, identifying any matters 
in respect of which it considers that action or improvement is needed and making 
recommendations as to the steps to be taken; 
 
• reviewing and approving the annual audit plan with the external auditor and ensuring that it 
is consistent with the scope of the audit engagement and the effectiveness of the audit; 
 
• reviewing the findings of the audit with the external auditor which shall include but not limited 
to discussing major issues which arose on the audit, any accounting and audit judgements, 
and levels of errors identified during the audit; 
 
 
   
Audit Committee Report 
For the year ended 31 December 2015 
19 
 
• reviewing any representation letters and/or responses from the management before being 
given to the external auditor; and 
 
• meeting with the auditors at least twice a year, once at the planning stage, where the nature 
and scope of the audit will be considered, and once post audit at the reporting stage, and shall 
ensure that any auditor’s management letters and management’s responses are reviewed.  
 
Internal Controls 
• reviewing the effectiveness of the Group’s internal financial controls and, unless expressly 
addressed by a separate Board risk committee, or by the Board itself, to review the Group’s 
internal control and risk management systems and review and approve the statements to be 
included in the Annual Report concerning internal controls and risk management; and 
 
• reviewing arrangements for employees to raise concerns, in confidence, about possible 
improprieties in financial reporting or other matters and ensuring that arrangements allow 
for the proportionate and independent investigation of such matters with appropriate follow 
up action. 
 
Meetings 
Two (2) audit committee meetings were held in 2015.  Details of attendances are set out below: 
 
Brian Wong Wye Pong 2/2 
David Cotterell 2/2 
Du Kiat Wai 2/2 
 
Summary of activities 
The following activities were carried out by the Audit Committee during the financial year under 
review: 
i. Reviewed the annual and interim financial statements for recommendation to the Board; 
ii. Reviewed the external auditors’ scope of work for the year; 
iii. Held discussions with the auditors at the planning and reporting stages of the audit; 
iv. Reviewed the compliance with accounting standards and other legal requirements. 
 
 
Approved by the Board and signed on its behalf 
 
 
 
Brian Wong Wye Pong 
Chairman of the Audit Committee 
 
29 June 2016 
 
   
Independent Auditors’ Report 
To the members of Rapidcloud International plc 
For the year ended 31 December 2015 
20 
We have audited the Group financial statements of RapidCloud International plc for the year ended 
31 December 2015 which comprise the Consolidated Statement of Comprehensive Income, the 
Consolidated Statement of Financial Position, the Consolidated Statement of Changes in Equity, the 
Consolidated Statement of Cash Flows and the related notes. The financial reporting framework that 
has been applied in their preparation is applicable law and International Financial Reporting Standards 
(IFRS) as adopted by the European Union. 
This report is made solely to the Company’s members, as a body, in accordance with Article 113A of 
the Companies (Jersey) Law 1991. Our audit work has been undertaken so that we might state to the 
Company’s members those matters we are required to state to them in an auditors’ report and for no 
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to 
anyone other than the company and the company’s members as a body, for our audit work, for this 
report, or for the opinions we have formed. 
 
Respective responsibilities of directors and auditors 
As explained more fully in the Statement of Directors’ responsibilities set out on page 14, the Directors 
are responsible for the preparation of the financial statements and for being satisfied that they give a 
true and fair view.  Our responsibility is to audit and express an opinion on the financial statements in 
accordance with applicable law and International Standards on Auditing (UK and Ireland). Those 
standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for 
Auditors. 
 
Scope of the audit of the financial statements 
A description of the scope of an audit of financial statements is provided on the APB's website at 
www.frc.org.uk/apb/scope/private.cfm. 
 
Opinion on financial statements 
In our opinion the financial statements:  
• give a true and fair view of the state of the Group's affairs as at 31 December 2015 and of 
the Group's profit for the year then ended; 
• have been properly prepared in accordance with IFRSs as adopted by the European Union; 
and 
• have been properly prepared in accordance with the requirements of the Companies 
(Jersey) Law 1991. 
 
Emphasis of matter – Recoverability of trade receivables 
In forming our opinion on the financial statements, which is not qualified, we have considered the 
adequacy of the disclosure made in note 16 to the financial statements concerning the Group’s ability 
to recover its trade receivables. As discussed in note 16, at 31 December 2015 the Group had trade 
receivables of RM14.6 million (2014: RM10.2 million), including RM4.7 million (2014: RM766,000) 
which had been outstanding for over one year at the year end date.  
 
The continued high level of long outstanding receivables indicates an increased degree of uncertainty 
as to whether the debts may be collectible in full and may cast doubt on the Group’s policies and 
procedures for effective debt collection. The Directors have reviewed the outstanding receivables in 
detail and made impairment provisions of RM853,000 against receivables that they believe are at risk 
of not being received in full. The Directors therefore are of the opinion that the unprovided receivables 
will be collected in full and they are making efforts to do so. 
   
Independent Auditors’ Report 
To the members of Rapidcloud International plc 
For the year ended 31 December 2015 
21 
 
The financial statements do not include adjustments that would result from further impairment of 
trade receivables if the Group were unable to collect its debts in full. 
 
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters where the Companies (Jersey) Law 1991 
requires us to report to you if, in our opinion: 
• proper accounting records have not been kept, or proper returns adequate for our audit 
have not been received from branches not visited by us; or 
• the financial statements are not in agreement with the accounting records and returns; or 
• we have not received any information or explanation that was necessary for our audit. 
 
 
 
 
Colin Wright 
Senior Statutory Auditor 
 
for and on behalf of  
UHY Hacker Young  
Chartered Accountants and Statutory Auditors 
 
Quadrant House 
4 Thomas More Square 
London E1W 1YW 
 
29 June 2016 
 
 
 
 
 
 
   
Consolidated Statement of Comprehensive Income 
For the year ended 31 December 2015 
22 
 
  
 
Notes 
Year ended 
31 December 2015 
RM’000 
Year ended 
31 December 2014 
RM’000 
Continuing operations    
Revenue 5 17,153 17,820 
Cost of sales  (7,307) (8,146) 
    
Gross profit  9,846 9,674 
    
Other operating income  980 1,149 
Administrative expenses  (10,243) (7,559) 
    
Operating profit  583 3,264 
    
Finance costs  (31) (26) 
    
Profit before tax  552 3,238 
    
Income tax expense 10 (53) (50) 
    
Profit for the year 7 499 3,188 
    
Other comprehensive income    
Exchange differences on translation of foreign 
operations 
 
85 (100) 
    
Total comprehensive income  584 3,088 
    
Profit attributable to:    
Equity owners of the parent company  856 3,671 
Non-controlling interests  (357) (483) 
  499 3,188 
    
Total comprehensive income attributable to:    
Equity owners of the parent company  1,042 3,609 
Non-controlling interests  (458) (521) 
  584 3,088 
    
Earnings per share    
Basic (Sen) 11 4.20 20.59 
Diluted (Sen) 11 4.07 19.86   
Consolidated Statement of Financial Position 
As at 31 December 2015 
23 
 
  
 
Notes 
As at 31 December 
2015 
RM’000 
As at 31 December 
2014 
RM’000 
ASSETS    
Non-current assets    
Property, plant and equipment 12 7,708 5,215 
Software development assets 13 3,160 2,491 
Intangible assets and goodwill 15 5,839 5,839 
  16,707 13,545 
    
Current assets    
Trade and other receivables 16 16,581 11,191 
Cash and cash equivalents 17 6,794 3,931 
Taxation recoverable  - 68 
  23,375 15,190 
Total assets  40,082 28,735 
    
LIABILITIES    
Current liabilities    
Trade and other payables 18 3,266 2,393 
Hire purchase liabilities 19 92 62 
Taxation payable  2 - 
  3,360 2,455 
    
Non-current liabilities    
Hire purchase liabilities 19 744 457 
Deferred tax liability 20 98 86 
  842 543 
Total liabilities  4,202 2,998 
Net assets  35,880 25,737 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Consolidated Statement of Financial Position (continued) 
As at 31 December 2015  
24 
 
  
 
Notes 
As at 31 December 
2015 
RM’000 
As at 31 December 
2014 
RM’000 
EQUITY    
Capital and reserves attributable to equity 
holders 
   
Share capital 21 35,105 24,609 
Shares to be issued 14 2,074 2,074 
Merger reserve  (13,260) (13,260) 
Currency translation reserve  124 (62) 
Retained earnings  12,975 13,056 
  37,018 26,417 
Non-controlling interests  (1,138) (680) 
  35,880 25,737 
 
 
The financial statements were approved by the Board of Directors on 29 June 2016 and signed on its 
behalf by: 
 
 
David Cotterell 
Director 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Consolidated Statement of Cash Flows 
For the year ended 31 December 2015 
25 
 
 
 
 
 
 
 
Notes 
Year ended 
31 December 
2015 
RM’000 
Year ended 
31 December 
2014 
RM’000 
Cash flows from operating activities    
Profit before tax  552 3,238 
Adjustments for non-cash items:    
Depreciation 12 1,434 683 
Amortisation of software development assets  13 804 931 
Amortisation of website assets 15 - 1 
Deposit written off  2 - 
Gain on disposal of equipment  (55) (60) 
Equipment written off  - 2 
Impairment of trade receivables 16 252 62 
Reversal of impairment on trade receivables 16 (15) - 
Foreign exchange loss  - 46 
Waiver of loan by subsidiary’s director  - (862) 
Finance income  (5) (52) 
Finance costs  31 26 
Operating profit before working capital changes  3,000 4,015 
    
Increase in trade and other receivables 16 (5,283) (1,216) 
Decrease in trade and other payables 18 232 (1,262) 
Cash (outflow)/inflow from operations  (2,051)                       1,537 
    
Interest paid  (31) (26) 
Interest received  5 52 
Tax refund  75 - 
Tax paid  (208) (929) 
Net cash (outflow)/inflow from operating activities  (2,210)  634 
    
Cash flows from investing activities    
Purchase of property, plant and equipment 12 (3,362) (2,060) 
Proceeds from sale of property, plant and equipment  156 78 
Software development expenditure 13 (1,473) (1,204) 
Acquisition of subsidiaries (net of cash received) 14 - (2,465) 
Net cash used in investing activities  (4,679) (5,651) 
    
 
 
 
 
   
Consolidated Statement of Cash Flows (continued) 
For the year ended 31 December 2015  
26 
 
 
  
 
 
Notes 
Year ended 
31 December 
2015
RM’000
Year ended 
31 December 
2014
RM’000
Cash flows from financing activities  
Dividends paid  (207) (575)
Advances from subsidiary’s director  - 529
Repayment of hire purchase liabilities  (229) (172)
Proceeds from issue of placing shares (net of issue 
costs) 
21 9,766 2,966
Net cash from financing activities  9,330 2,748
  
Net increase/(decrease) in cash and cash equivalents  2,441 (2,269)
Effect of exchange rate changes on cash and cash 
equivalents 
 
422 (38)
  
Cash and cash equivalents at the beginning of the year  3,931 6,238
  
Cash and cash equivalents at the end of the year 17 6,794 3,931  
Consolidated Statement of Changes in Equity 
For the year ended 31 December 2015 
27 
 
 
 
 
 
Year ended 31 December 2015: 
 
 
Share 
capital 
RM’000 
 
Shares 
to be 
issued 
RM’000 
 
 
Merger 
reserve 
RM’000 
Foreign 
currency 
translation 
reserve 
RM’000 
 
 
Retained 
earnings 
RM’000 
 
 
 
Total 
RM’000 
 
Non-
controlling 
interests 
RM’000 
 
 
Total equity 
RM’000 
         
Balance on 1 January 2015 24,609 2,074 (13,260) (62) 13,056 26,417 (680) 25,737 
         
Transaction with owners, 
recorded directly in equity 
        
Issue of placing shares 10,334 - - - - 10,334 - 10,334 
Share issue costs (568) - - - - (568) - (568) 
Dividends paid 730 - - - (937) (207) - (207) 
         
Total comprehensive income         
Profit for the year - - - - 856 856 (357) 499 
Other comprehensive income - - - 186 - 186 (101) 85 
         
 
Balance at 31 December 2015 
 
35,105 
 
2,074 
 
(13,260) 
 
124 
 
12,975 
 
37,018 
 
(1,138) 
 
35,880 
 
 
 
   
Consolidated Statement of Changes in Equity (continued) 
For the year ended 31 December 2015 
28 
 
 
 
 
 
Year ended 31 December 2014: 
 
 
Share 
capital 
RM’000 
 
Shares 
to be 
issued 
RM’000 
 
 
Merger 
reserve 
RM’000 
Foreign 
currency 
translation 
reserve 
RM’000 
 
 
Retained 
earnings 
RM’000 
 
 
 
Total 
RM’000 
 
Non-
controlling 
interests 
RM’000 
 
 
Total 
equity 
RM’000 
         
Balance on 1 January 2014 21,643 - (13,260) - 9,960 18,343 - 18,343 
         
Transaction with owners, 
recorded directly in equity 
        
Acquisition of subsidiary companies - 2,074 - - - 2,074 (159) 1,915 
Issue of placing shares 3,235 - - - - 3,235 - 3,235 
Share issue costs (269) - - - - (269) - (269) 
Dividends paid - - - - (575) (575) - (575) 
         
Total comprehensive income         
Profit for the year - - - - 3,671 3,671 (483) 3,188 
Other comprehensive income - - - (62) - (62) (38) (100) 
         
 
Balance at 31 December 2014 
 
24,609 
 
2,074 
 
(13,260) 
 
(62) 
 
13,056 
 
26,417 
 
(680) 
 
25,737 
   
Notes to the Consolidated of Financial Statements 
For the year ended 31 December 2015 
29 
 
1.  Accounting policies 
 
RapidCloud International Plc (‘RCI’ or the ‘Company’) is a company registered and incorporated in 
Jersey on 15 March 2013.  The address of the registered office is 13-14 Esplanade, St. Helier, Jersey, 
JE1 1 BD. 
 
The consolidated financial statements of RapidCloud International Plc and its subsidiaries (together 
the ‘Group’) are presented in Ringgit Malaysia (‘RM’), which is the presentation currency for the 
consolidated financial statements.  The functional currency for each individual entity is the local 
currency of each individual entity.  The primary economic environment for the Group is Malaysia.  All 
amounts are prepared to the nearest thousand (RM’000) except where otherwise indicated. 
 
2.  Adoption of new and revised IFRS standards 
 
The Group has not applied in advance the following accounting standards and interpretations, 
including the consequential amendments that have been issued but are not yet effective.  The transfer 
to these new or revised standards and interpretation is not expected to have a material impact on the 
financial statements. 
 
Standard Effective Date 
IFRS 9 – Financial Instruments 1 January 2018 
IFRS 15 – Revenue from Contracts with Customers 1 January 2018 
Amendments to IAS 1 – Disclosure Initiative 1 January 2016 
Amendments to IAS 16 and IAS 38 – Clarification of 
Acceptable Methods of Depreciation and Amortisation 
1 January 2016 
 
 
3.  Significant accounting policies 
 
3.1 Statement of compliance 
The consolidated financial statements have been prepared in accordance with International Financial 
Reporting Standards, as adopted by the European Union (‘IFRS’). 
 
3.2 Basis of preparation 
The consolidated financial statements have been prepared on the historical cost basis except for 
financial instruments that are measured at the fair values at the end of each reporting period, as 
explained in the accounting policies below. 
 
Historical cost is generally based on the fair value of the consideration given in exchange for goods 
and services.  Fair value is the price that would be received to sell an asset or paid to transfer a liability 
in an orderly transaction between market participants at the measurement date, regardless of 
whether that price is directly observable or estimated using another valuation technique. 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
30 
 
3.  Significant accounting policies (continued) 
 
3.3 Basis of consolidation 
The consolidated financial statements incorporate the financial statements of the Company, entities 
controlled by the Company and its subsidiaries.  Control is achieved when the Company: 
 
• has power over the investee; 
• is exposed, or has rights, to variable returns from its involvement with the investee; and 
• has the ability to use its power to affect its returns. 
 
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases 
when the Company loses control of the subsidiary.  Specifically, income and expenses of a subsidiary 
acquired or disposed of during the year are included in the consolidated statement of profit or loss 
and other comprehensive income from the date the Company gains control until the date when the 
Company ceases to control the subsidiary. 
 
Purchase method 
Under the purchase method, the results of the subsidiaries acquired or disposed of are included from 
the date of acquisition or up to the date of disposal. At the date of acquisition, the fair values of the 
subsidiaries’ net assets are determined and these values are reflected in the consolidated financial 
statements. The cost of acquisition is measured at the aggregate of the fair values, at the date of 
exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group 
in exchange for control of the acquire, plus any costs directly attributable to the business combination. 
 
Intragroup transactions, balances and unrealised gains on transactions are eliminated; unrealised 
losses are also eliminated unless costs cannot be recovered. Where necessary, adjustments are made 
to the financial statements of subsidiaries to ensure consistency of accounting policies with those of 
the Group. 
 
3.4 Goodwill 
Goodwill represent the excess of the fair value of the purchase consideration over the Group’s share 
of the fair values of the identifiable assets, liabilities and contingent liabilities of the subsidiaries at the 
date of acquisition. 
 
Goodwill is measured at cost less accumulated impairment losses, if any. The carrying value of 
goodwill is reviewed for impairment annually. The impairment value of goodwill is recognised 
immediately in profit or loss. An impairment loss recognised for goodwill is not reversed in a 
subsequent period. If, after reassessment, the Group’s interest in the fair values of the identifiable net 
assets of the subsidiaries exceeds the cost of the business combinations, the excess is recognised as 
income immediately in profit or loss. 
 
For the purpose of impairment testing, assets are grouped together into the smallest group of assets 
that generates cash inflows from continuing use that are largely independent of the cash inflows of 
other assets or cash-generating units. Subject to operating segment ceiling test, for the purpose of 
goodwill impairment testing, cash-generating units to which goodwill has been allocated are 
aggregated so that the level at which impairment testing is performed reflects the lowest level at 
which goodwill is monitored for internal reporting purposes. The goodwill acquired in a business 
combination, for the purpose of impairment testing, is allocated to a cash-generating unit or a group 
of cash-generating units that are expected to benefit from the synergies of the combination. 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
31 
 
3.  Significant accounting policies (continued) 
 
3.4 Goodwill (continued) 
The recoverable amount of an asset or cash-generating unit is the greater of its value-in-use and its 
fair value less costs of disposal. In assessing value-in-use, the estimated future cash flows are 
discounted to their present value using a pre-tax discount rate that reflects current market 
assessments of the time value of money and the risks specific to the asset or cash-generating unit. 
 
An impairment loss is recognised if the carrying amount of an asset or cash-generating unit exceeds 
its estimated recoverable amount. Impairment loss is recognised in profit or loss, unless the asset is 
carried at a revalued amount, in which such impairment loss is recognised directly against any 
revaluation surplus for the asset to the extent that the impairment loss does not exceed the amount 
in the revaluation surplus for that same asset. Impairment losses recognised in respect of cash-
generating units are allocated first to reduce the carrying amount of any goodwill allocated to the 
cash-generating unit (group of cash-generating units) and then to reduce the carrying amounts of the 
other assets in the cash-generating unit (group of cash-generating units) on a pro rata basis. 
 
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses 
recognised in prior periods are assessed at the end of each reporting period for any indications that 
the loss has decreased or no longer exists. An impairment loss 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. The reversal is limited so that the carrying amount of the asset does not exceed its 
recoverable amount, nor exceed the carrying amount that would have been determined, net of 
depreciation or amortisation, had no impairment loss been recognised for asset in prior years. Such 
reversal is recognised in the profit or loss unless the asset is carried at a revalued amount, in which 
case the reversal is treated as a revaluation increase. 
 
3.5 Foreign currency translation 
 
Functional and presentation currency 
Items included in the financial statements of each of the Group’s entities are measured using the 
currency of the primary economic environment in which the entities operate (the functional 
currency).The consolidated financial information is presented in Malaysia Ringgits (‘RM’), which is 
RCI’s functional and presentational currency. 
 
Transactions and balances 
Foreign currency transactions are translated into the functional currency using the exchange rates 
prevailing at the dates of the transactions.  Foreign exchange gains and losses resulting from the 
settlement of such transactions and from the translation at year end exchange rates of monetary 
assets and liabilities denominated in foreign currencies are recognised in the statement of 
comprehensive income. 
 
Foreign operations 
Assets and liabilities of foreign operations are translated to RM at the rates of exchange ruling at the 
end of the reporting period. Revenues and expenses of foreign operations are translated at exchange 
rates ruling at the dates of the transactions. All exchange differences arising from translation are taken 
directly to other comprehensive income and accumulated in equity under the translation reserve. On 
the disposal of a foreign operation, the cumulative amount recognised in other comprehensive 
income relating to that particular foreign operation is reclassified from equity to profit or loss. 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
32 
 
3.  Significant accounting policies (continued) 
 
3.6 Financial instruments 
 
Financial assets 
All financial assets are recognised and derecognised on a trade date where the purchase or sale of a 
financial asset is under a contract whose terms require delivery of the financial asset within the time-
frame established by the market concerned, and are initially measured at fair value, plus transaction 
costs, except for those financial assets classified at fair value through profit or loss, which are initially 
measured at fair value. 
 
Loans and receivables 
Trade receivables, loans and other receivables that have fixed or determinable payments that are not 
quoted in an active market are classified as ‘loans and receivables’.  Loans and receivables are 
measured at amortised cost using the effective interest rate method, less any impairment.  Interest 
income is recognised by applying the effective interest rate method, except for short-term receivables 
where the recognition of interest would be immaterial. 
 
Impairment of assets 
For certain categories of financial assets, such as trade receivables, a provision for impairment of 
receivables is established 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 the provision is the 
difference between the assets’ carrying amount and the recoverable amount.  Provisions for 
impairment of receivables are included in the statement of comprehensive income. 
 
Financial liabilities and equity 
Debt and equity instruments are classified as either financial liabilities or equity in accordance with 
the substance of the contractual agreement. 
 
Equity instruments 
An equity instrument is any contract that evidences a residual interest in the assets of an entity after 
deducting all its liabilities.  Equity instruments issued by the Group are recognised at the proceeds 
received, net of direct issue costs. 
 
Other financial liabilities 
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction 
costs. 
 
Other financial liabilities are subsequently measured at amortised cost using the effective interest rate 
method, with interest expense recognised on an effective basis. 
 
The effective interest rate method is a method of calculating the amortised costs of a financial liability 
and of allocating interest expense over the relevant period.  The effective interest rate is the rate that 
exactly discounts estimated future cash payments through the expected life of the financial liability 
or, where appropriate, a shorter period, to the net carrying amount on initial recognition. 
 
    
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
33 
 
3.  Significant accounting policies (continued) 
 
3.7 Property, plant and equipment 
Property, plant and equipment are stated at cost less accumulated depreciation and impairment 
losses. Depreciation is provided to write off the cost less the estimated residual value of each asset on 
a straight line basis over their expected useful lives, as follow: 
 
Fixtures and equipment   5 years 
Office equipment   5 – 10 years 
Computer equipment   3 years 
Motor vehicles    5 years 
Renovation    10 years 
Signboard    10 years 
Sun Microsystems   5 years 
 
The carrying values of property, plant and equipment are reviewed at each statement of financial 
position date to determine whether there are any indications of impairment.  If any such indication 
exists, the assets are tested for impairment to estimate the assets’ recoverable amounts.  Any 
impairment losses are recognised in the statement of comprehensive income. 
 
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each 
statement of financial position date.  Gains and losses on disposals are determined by comparing the 
proceeds with the carrying amount and are recognised within the statement of comprehensive 
income. 
 
3.8 Software development expenditure 
Software research costs are charged as an expense in the period in which they are incurred.  Software 
development costs are charged as an expense in the period incurred unless RCI believes: 
 
• an asset is create that can be identified (a new software product); 
• it is probable that the asset created will generate future economic benefits; and 
• the development cost of the asset can be reliably measured. 
 
The capitalised software development costs of the Group are amortised on a straight line basis over 
the estimated useful lives of the assets which is currently assessed to be 5 years. 
 
Impairment of assets 
The Group assesses at each reporting date whether there is an indication that an asset may be 
impaired.  If any such indication exists, or when annual impairment testing for an asset is required, 
the Group makes an estimate of the asset’s recoverable amount.  An asset’s recoverable amount is 
the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is 
determined for an individual asset, unless the asset does not generate cash inflows that are largely 
independent of those from other assets or groups of assets.  Where the carrying amount of an asset 
exceeds its recoverable amount, the asset is considered impaired and is written down to its 
recoverable amount.  In assessing value in use, the estimated future cash flows are discounted to their 
present value of money and the risks specific to the asset. 
 
Impairment losses of continuing operations are recognised in the statement of comprehensive income 
in those expense categories consistent with the function of the impaired asset. 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
34 
 
3.  Significant accounting policies (continued) 
 
3.9 Cash and cash equivalents 
Cash and cash equivalents are carried in the statement of financial position at cost and comprise cash 
in hand, cash at bank, deposits held at call with banks, other short-term highly liquid investments with 
original maturities of three months or less.  Bank overdrafts that are repayable on demand are 
included within borrowings in current liabilities on the statement of financial position.  For the 
purposes of the cash flow statement, cash and cash equivalents also include bank overdrafts if they 
form an integral part of the Group’s cash management. 
 
3.10 Leases 
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor 
are classified as operating leases.  Payments under operating leases (net of any incentives received 
from the lessor) are charged to the statement of comprehensive income on a straight line basis over 
the period of the lease. 
 
3.11 Revenue 
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the 
Group and the revenue can be reliably measured.  Revenue is recognised when the services are 
supplied and is measured at the fair value of consideration received or receivable net of sales tax, 
returns, rebates or discounts and after eliminating sales with the Group.  The Group recognises 
revenue when the amount of revenue can be reliably measured, it is probable that future economic 
benefits will flow to the Group and specific delivery criteria have been met. 
 
Deferred revenue is recognised to the extent that services have been invoiced but have not yet been 
delivered and accordingly are recognised as a liability within accruals and deferred income in the 
statement of financial position. 
 
3.12 Financial income and expenses 
Financial income comprises interest receivable on cash balances and deposits.  Interest income is 
recognised when the right to receive payments is established. 
 
Financial expenses comprise interest payable on bank loans, hire purchase liabilities’ charges and 
other financial costs and charges.  Interest payable is recognised on an accrual basis. 
 
3.13 Employee benefits 
 
Short term employee benefits 
Wages, salaries, paid annual leave, paid sick leave, bonuses and non-monetary benefits are recognised 
as an expense in the period in which the associated services are rendered by employees. 
 
Post-employment benefits 
The Group pays monthly contributions to defined contribution plans.  The legal or constructive 
obligation of the Group is limited to the amount that they agree to contribute to the plan.  The 
contributions to the plan are charged to the statement of comprehensive income in the period to 
which they relate. 
    
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
35 
 
3.  Significant accounting policies (continued) 
 
3.14 Current and deferred income tax 
The current income tax charge is calculated on the basis of the tax laws enacted or substantively 
enacted at the statement of financial position date.  Deferred income tax is provided in full, using the 
liability method, on temporary differences arising between the tax bases of assets and liabilities and 
their carrying amounts in the consolidated financial statements.   
 
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially 
enacted by the statement of financial position date and are expected to apply when the related 
deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income 
tax assets are recognised to the extent that it is probable that future taxable profit will be available 
against which the temporary differences can be utilised. 
 
4. Significant accounting judgements and estimates 
 
The preparation of financial information in conformity with IFRSs requires management to make 
judgement, estimates and assumptions that affect the application of accounting policies and the 
reported amounts of assets and liabilities, income and expenses.  Judgements and estimates are 
continually evaluated and are based on historical experience and other factors, including expectations 
of future events that are believed to be reasonable under the circumstances.  The resulting accounting 
estimates may differ from the related actual results.  The estimates and assumptions that have a risk 
of causing material adjustment to the carrying amounts of assets and liabilities within the future 
financial years are as follows: 
 
Depreciation, useful lives and residual values of property, plant and equipment 
The Directors estimate the useful lives and residual values of property, plant and equipment in order 
to calculate the depreciation charges.  Changes in these estimates could result in changes being 
required to the annual depreciation charges in the statement of comprehensive income and the 
carrying values of the property, plant and equipment in the statement of financial position. 
 
Amortisation, useful lives and residual values of software development assets 
The Directors estimate the useful lives and residual values of software development assets in order to 
calculate the amortisation charges.  Changes in these estimates could result in changes being required 
to the annual amortisation charges in the statement of comprehensive income and the carrying values 
of the software development assets in the statements of financial position. 
 
Deferred tax liability 
The Group estimates future profitability in arriving at the fair value of the deferred tax assets and 
liabilities.  If the final tax outcome is different to the estimated deferred tax amount, the resulting 
changes will be reflected in the statement of comprehensive income, unless the tax relates to an item 
charged to equity in which case the changes in tax estimates will also be reflected in equity. 
 
 
 
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
36 
 
4. Significant accounting judgements and estimates (continued) 
 
Judgements 
 In the process of applying the Group’s accounting policies, management has made the following 
significant judgements, apart from those involving estimations, which may have a significant effect on 
amounts recognised in the financial statements: 
 
• impairment of assets (including receivables, goodwill, software development expenditure and 
property, plant and equipment); 
• timing of recognition of revenue on project contracts. 
 
Impairment of receivables 
The Group accesses at the end of each reporting period whether there is any objective evidence that 
a receivable is impaired.  To determine whether there is objective evidence of impairment, the Group 
considers factors such as the probability of insolvency or significant financial difficulties of the 
receivables and default or significant delay in payments. Further details on the Group’s outstanding 
receivables are in note 16. 
 
5. Revenue 
 
Revenue represents the invoiced value of goods sold and services rendered, net of discounts and 
returns.  Revenue is derived from the Group’s principal activity of the provision of computer products 
and services using cloud computing technology along with the development of software to support 
the services. Revenue analysed by geographical area was as follows: 
 
 2015 
RM’000 
2014 
RM’000 
Malaysia 13,078 13,598 
Singapore 3,218 3,679 
Thailand 215 97 
Philippines 570 413 
Indonesia 72 33 
 17,153 17,820 
 
6. Operating segments 
 
An operating segment is a component of the Group that engages in business activities from which it 
may earn revenues and incur expenses.  IFRS 8 ‘Operating Segments’ requires disclosure of the 
operating segments that are reported to the Chief Operating Decision Maker (‘CODM’).  The CODM at 
the end of the financial year under review has been identified as the Board of Directors who have 
responsibility for planning and controlling the activities of the Group.  The Group’s reportable segment 
has been identified as the provision of Cloud Computing services.  Across the Group there is 
considered to be a commonality in the nature of services, the type of customer, the methods used to 
provide services and the regulatory environment. 
 
All operations of the Group are carried out in Southeast Asia.  All revenues therefore arise within 
Southeast Asia.  No single external customer amounts to 10 per cent or more of the Group’s revenue.  
 
As the Group only has one reportable segment, no further segmental information is disclosed. 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
37 
 
7. Profit for the year 
 
Profit for the year has been arrived at after charging/(crediting): 
 
 2015
RM’000
2014
RM’000
Staff costs (note 9) 5,418 5,594
Depreciation (note 12) 1,434 683
Amortisation of software development assets (note 13) 804 931
Operating lease rentals – premises 710 513
Impairment of trade receivables (note 16)  252 62
Reversal on impairment of trade receivables (note 16) (15) -
Bad debts written-off - 130
Loss on foreign exchange  101 38
 
 
8. Auditors’ remuneration 
 
During the year the Group obtained the following services from its auditors: 
 
 2015
RM’000
2014
RM’000
Fees payable to the Group’s auditor and its member firms for: 
- statutory audit in respect of the Company and Group 150 108
- statutory audit in respect of the Company’s subsidiaries 65 52
 215 160
 
9. Staff costs 
 
The average monthly number of persons employed (including Executive Directors) by the Group, 
analysed by category, was as follows: 
 
 2015
Number
2014
Number
Management 20 19
Staff 116 137
 136 156
 
Their aggregate remuneration comprised: 
 2015
RM’000
2014
RM’000
Salaries, wages, bonuses and allowances 6,354 6,355
Defined contribution pension costs  537 443
Less: capitalised in software development assets (note 13) (1,473) (1,204)
 5,418 5,594
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
38 
 
9. Staff costs (continued) 
 
Included in staff costs above is the Group’s Executive Directors’ remuneration as follows: 
 
 2015
RM’000
2014
RM’000
Salaries, wages, bonuses and allowances 744 493
Defined contribution pension costs 17 58
 761 551
 
Directors’ remuneration is included in the following: 
 
 2015
RM’000
2014
RM’000
Staff costs 761 551
Capitalised under software development costs (note 13) 90 270
Directors’ fees (paid via service agreements) 292 212
 1,143 1,033
 
 
10. Income tax expense 
 
 2015
RM’000
2014 
RM’000 
Corporation tax  
Current year tax expense 1 15 
Adjustments in respect of prior years 40 22 
 41 37 
  
Deferred tax expense  
Current year 12 13 
 53 50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
39 
 
10. Income tax expense (continued) 
 
The Group’s effective tax rate differs from the standard rate of corporation tax of 25% in 2015 (2014: 
25%) due to the following differences: 
 
 2015
RM’000
2014 
RM’000 
  
Profit before tax 552 3,238 
Current taxation at standard tax rate of 25% 138 810 
Impact on taxation of:  
Effect on different tax rate in other jurisdictions 1 (48) 
Income not subject to income tax due to pioneer status (237) (940) 
Income not chargeable for tax purposes (8) (147) 
Expenses not deductible for tax purpose 600 389 
Depreciation over capital allowances 2 2 
Prior year adjustments 40 22 
Other adjustments (483) (38) 
Total tax expense 53 50 
  
Average effective tax rate 9.6% 1.5% 
 
The government of Malaysia awarded Multimedia Super Corridor (“MSC”) status to a subsidiary, 
RapidCloud (M) Sdn. Bhd. (formerly known as Emerge Systems (M) Sdn. Bhd.) on 28 June 2013, and 
was granted pioneer status by the Ministry of International Trade and Industry for services under the 
Promotion of Investment Act 1986 in which the statutory income is exempted from tax for a period of 
five (5) years from 28 June 2013. 
 
11. Earnings per share 
 
The calculation of the basic and diluted earnings per share is based on the following: 
 
 2015
RM’000
2014
RM’000
Profit for the financial period after tax and basic earnings 
attributable to ordinary shareholders 856 3,671
 
 Number Number
Weighted average numbers of ordinary shares 20,401,402 17,831,934
 
 
 Sen Sen 
Earnings per share:  
Basic 4.20 20.59 
 
If the basic earnings per share is diluted by the 650,000 deferred contingent shares to be issued as 
part of the acquisition of RapidCloud Singapore Pte. Ltd. (note 14) the dilutive earnings per share 
would be 4.07 Sen (2014: 19.86 Sen).   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
40 
 
12. Property, plant and equipment 
 
Furniture 
and fittings
RM’000
Office
equipment
RM’000
Computers
RM’000
Motor
Vehicles
RM’000
 
 
Renovation 
RM’000 
Signboard
RM’000
Sun 
Microsystems 
equipment 
RM’000 
Total
RM’000
Year ended 31 December 2015   
Cost   
At 1 January 2015 1,003 740 2,516 657 2,463 32 465 7,876
Additions 10 33 3,269 596 - - - 3,908
Disposals - - - (244) - - - (244)
Exchange difference 9 18 9 - 117 - - 153
At 31 December 2015 1,022 791 5,794 1,009 2,580 32 465 11,693
   
Charge for the year   
At 1 January 2015 134 104 1,465 196 272 25 465 2,661
Charge for the year 121 115 801 175 219 3 - 1,434
Disposals - - - (143) - - - (143)
Exchange difference 5 7 6 - 15 - - 33
At 31 December 2015 260 226 2,272 228 506 28 465 3,985
   
Net book value   
At 31 December 2015 762 565 3,522 781 2,074 4 - 7,708
 
Included within property, plant and equipment are motor vehicles acquired under hire purchase agreements with carrying values of RM781,000 (2014: 
RM461,000). 
 
 
 
    
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
41 
 
12. Property, plant and equipment (continued) 
 
 
Furniture 
and fittings
RM’000
Office
equipment
RM’000
Computers
RM’000
Motor
Vehicles
RM’000
 
 
Renovation 
RM’000 
Signboard
RM’000
Sun 
Microsystems 
equipment 
RM’000 
Total
RM’000
Year ended31 December 2014   
Cost   
At 1 January 2014 731 395 1,440 850 1,395 32 465 5,308
Acquisition of subsidiaries 43 60 34 - 624 - - 761
Additions 288 319 1,045 - 408 - - 2,060
Disposals (60) (38) - (193) - - - (291)     
Impaired/written off - - (3) - - - - (3)
Exchange difference 1 4 - - 36 - - 41
At 31 December 2014 1,003 740 2,516 657 2,463 32 465 7,876
   
Charge for the year   
At 1 January 2014 85 57 1,234 218 48 21 465 2,128
Acquisition of subsidiaries 29 27 26 - 36 - - 118
Charge for the year 80 55 206 154 184 4 - 683
Disposals (60) (37) - (176) - - - (273)
Impaired/written off - - (1) - - - - (1)
Exchange difference - 2 - - 4  6
At 31 December 2014 134 104 1,465 196 272 25 465 2,661
   
Net book value   
At 31 December 2014 869 636 1,051 461 2,191 7 - 5,215
 
Included within property, plant and equipment are motor vehicles acquired under hire purchase agreements with carrying values of RM461,000 (2013: 
RM632,000). 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
42 
 
13. Software development assets 
 
 2015 
RM’000 
2014 
RM’000 
Cost   
At the beginning of the year 5,299 4,095 
Additions 1,473 1,204 
At the end of the year 6,772 5,299 
   
Accumulated amortisation   
At the beginning of the year 2,808 1,877 
Charge for the financial year 804 931 
At the end of the year 3,612 2,808 
   
Carrying amount   
At the end of the year 3,160 2,491 
 
Included in additions to software development assets during the financial year were the following: 
 
 2015 
RM’000 
2014 
RM’000 
Directors’ remuneration (note 9) 90 270 
Employee benefits expenses (note 9) 1,383 934 
 1,473 1,204 
 
Software development assets comprise capitalised development costs on software products.  These 
costs are internally generated wages and salaries arising from the Group’s software developers and 
are recognised only if all the following conditions are met: 
 
• an asset is created that can be identified; 
• it is probable that the asset created will generate future economic benefit; and 
• the development cost of the asset can be measured reliably. 
 
Once development has been completed the software development assets are amortised on a straight-
line basis over their useful lives, which is assessed annually and is currently considered to be 5 years. 
 
The Group assesses at each reporting date whether there is an asset that may be impaired.  If any such 
indication exists, or when annual impairment testing for an asset is required, the Group makes an 
estimate of the asset’s recoverable amount.  An asset’s recoverable amount is the higher of an asset’s 
or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an 
individual asset, unless the asset does not generate cash inflows that are largely independent of those 
from other assets or groups of assets.  Where the carrying amount of an asset exceeds its recoverable 
amount, the asset is considered impaired and is written down to its recoverable amount. 
 
There have been no impairments in the financial year under review. 
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
43 
 
14. Subsidiaries 
 
(a) Group entities 
 
Details of RCI’s subsidiary companies are as follows: 
 
Subsidiary companies Place of Equity interests Principal activities 
 incorporation 2015 2014  
  % %  
RapidCloud Asia Sdn. Bhd. Malaysia 100 100 Holding company for 
Malaysia, Thailand & 
Philippines subsidiaries 
     
RapidCloud (M) Sdn. Bhd.  
(formerly known as Emerge Systems 
(M) Sdn. Bhd.) 
Malaysia 100 100 Computer network and 
web solutions 
     
Emerge Software Solutions  
(M) Sdn. Bhd. 
Malaysia  100 100 Software development 
     
PT RapidCloud Indonesia Indonesia 100 100 Computer programming 
     
RapidCloud Singapore Pte. Ltd. 
 
Singapore 100 100 Internet advertising 
services and  to provide 
an Internet related 
services and business 
such as e-commerce, 
website designing and 
any other computer 
related services 
     
Emerge Systems (Thailand) Ltd Thailand 49 49 Operation of website, 
management of service 
server and electronic 
business solutions 
     
Sharksurf Philippines Incorporated Philippines 40 40 Provision of various 
internet, e-commerce 
and m-commerce 
services 
 
There are no significant restrictions on the ability of the subsidiaries to transfer funds to the Group in 
the form of cash dividends or repayment of loans and advances. 
 
 
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
44 
 
14. Subsidiaries (continued) 
 
(b) Acquisition of subsidiaries  
 
i) Emerge Systems (Thailand) Ltd and Sharksurf Philippines Incorporated 
 
Although the Group owns less than half of the ownership interest in Emerge Systems (Thailand) Ltd 
(‘EST’) and Sharksurf Philippines Incorporated (‘SPI’) and less than half of their voting powers, the 
Directors have determined that the Group controls these two entities.  On 1 January 2014, the Group 
obtained control of EST and SPI by virtue of written undertakings with other shareholders of EST and 
SPIand the Group now has full and absolute control of the management and business operations of 
EST and SPI. 
 
Goodwill was recognised as a result of the associates becoming subsidiaries as follows:  
 
 2014 
 RM’000 
Carrying value of associate companies  1,071 
Non-controlling interest, based on their proportionate interest in the 
recognised amounts of assets and liabilities of the acquiree 
 
 
(159) 
Fair value of identifiable assets and liabilities at 1 January 2014 302 
Goodwill arising on EST and SPI becoming subsidiaries 1,214 
 
ii) PT RapidCloud Indonesia 
 
On 15 January 2014, the Group incorporated a new subsidiary, PT RapidCloud Indonesia, with share 
capital of RM994,156 (IDR3,657,300,000).  This entity is 100% owned by the Group. 
 
iii) RapidCloud Singapore Pte. Ltd. 
 
On 23 July 2014, the Group acquired Exxelnet Solutions Pte. Ltd.  On 30 October 2014, Exxelnet 
Solutions Pte. Ltd. was renamed to RapidCloud Singapore Pte. Ltd. (‘RCSG’). 
 
Goodwill was recognised as a result of the RCSG acquisition as follows: 
 
 2014 
 RM’000 
Fair value of consideration at acquisition 2,520 
Fair value of deferred contingent consideration 2,074 
Fair value of identifiable assets acquired and liabilities acquired 31 
Goodwill arising on acquisition 4,625 
 
RCSG was acquired in 2014 at a cash consideration of RM2,520,000 payable to the sellers and with 
deferred consideration (contingent on future profitability over 36 months following the acquisition 
date) to be settled by up to 650,000 new shares of RCI, which is estimated to be at RM2,074,000. 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
45 
 
14. Subsidiaries (continued) 
 
The goodwill recognised above comprises expected synergies, revenue growth and future product and 
market developments. These benefits are not recognised separately from goodwill because they do 
not meet the criteria for separately identifiable intangible assets. 
 
15. Intangible assets and goodwill 
 
 Goodwill 
RM’000 
Website cost 
RM’000 
Total 
RM’000 
Cost    
At 1 January 2015 5,839 11 5,850 
Acquisition of subsidiaries - - - 
At 31 December 2015 5,839 11 5,850 
    
Accumulated amortisation    
At 1 January 2015 - 11 11 
Acquisition of subsidiaries - - - 
At 31 December 2015 - 11 11 
    
Carrying amount    
At 31 December 2015 5,839 - 5,839 
At 31 December 2014 5,839 - 5,839 
 
Goodwill acquired in a business combination is allocated for impairment testing to the cash-generating 
units (CGUs) that are expected to benefit from that business combination, as follows: 
 
 2015 2014 
 RM’000 RM’000 
Thailand division 1,006 1,006 
Philippines division 208 208 
Singapore division 4,625 4,625 
 5,839 5,839 
 
Impairment testing of goodwill 
RCI tests goodwill annually for impairment, or more frequently if there are indications that goodwill 
might be impaired. The recoverable amounts of the CGU’s are determined from value-in-use 
calculations. The key assumptions for the value-in-use calculations are those regarding the discount 
rates, growth rates and expected changes to forecast profitability. These assumptions have been 
revised in the year to take account of the current economic environment. Management estimates 
discount rates using pre-tax rates that reflect the current market assessments of the time value of 
money and the risks specific to each CGU. Future cash flows are derived from the most recent financial 
budget approved by management for the next two years, beyond that period cash flows are 
extrapolated using a growth rate of 3%.  The rate used to discount forecast future cash flows is 10% 
which represents the pre-tax weighted average cost of capital.  The test result for each CGU shows 
the recoverable amount is greater than its value in use.   
 
 
    
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
46 
 
15. Intangible assets and goodwill (continued) 
 
In 2015 no impairment charge has been made against goodwill for any CGU (2014: nil) as the 
impairment tests resulted in headroom for each CGU indicating the recoverable amount is greater 
than the value in use.  RCI has conducted a sensitivity analysis on the impairment test of each CGU’s 
carrying value by sensitizing the discount rate and reducing the long term growth rate to 0% and the 
results do not indicate the need to create an impairment charge in any CGU.  
 
16. Trade and other receivables 
 
 
 
2015 
RM’000 
2014 
RM’000 
Trade receivables 14,617                    10,293 
Less: impairment provision (853) (601) 
Add: reversal of impairment provision 15 - 
Net trade receivables 13,779 9,692 
Other receivables 714 262 
Prepayments 2,088 1,237 
 16,581 11,191 
 
The Group’s normal trade credit term range from 30 to 60 days.  Other credit terms are assessed and 
approved on case-by-case basis.  The Group has no significant concentration of credit risk that may 
arise from exposure to a single debtor.  Exposure to credit and currency risks related to trade and 
other receivables is disclosed in note 23.  The Directors consider the carrying amount of trade and 
other receivables to be approximate to their fair values.   
 
Analysis of the trade receivables ageing is as follows: 
 
 2015 
RM’000 
2014 
RM’000 
Neither past due nor impaired 3,224 2,523 
Past due not impaired:   
Less than 30 days past due 2,983 1,927 
31 to 60 days past due 1,325 1,587 
61 to 90 days past due 1,013 1,575 
90 days to one year past due 1,334 1,915 
More than one year past due 4,738 766 
 14,617 10,293 
Less: impairment provision (853) (601) 
Add: reversal of impairment provision 15 - 
Balance at end of year 13,779 9,692 
 
At 31 December 2015 the Group had trade receivables of RM14.6 million (2014: RM10.2 million), 
including RM4.7 million (2014: RM766,000) which had been outstanding for over one year at the year 
end date (see below).  
 
The continued high level of long outstanding receivables indicates an increased degree of uncertainty 
as to whether the debts may be collectible in full.  
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
47 
 
16. Trade and other receivables (continued) 
 
Trade receivables above include amounts that are past due at the year end but against which no 
allowance for doubtful receivables has been made. All of the Group’s trade receivables have been 
reviewed for indicators of impairment and impairment provisions of RM853,000 have been made 
against receivables thought to be at risk of not being received in full. The Directors believe that the 
unprovided receivables will be collected in full and they are making every effort to do so. The Directors 
are also putting in place improved debt collection procedures and a formal debt provision policy.  
 
17. Cash and cash equivalents 
 
Cash and cash equivalents in the statement of financial position comprise the following: 
 
 2015 
RM’000 
2014 
RM’000 
Cash at bank 6,775 3,931 
Fixed deposits 19 - 
 6,794 3,931 
 
The Group’s exposure to interest rate risk for financial assets and liabilities is disclosed in note 23.  The 
interest rate of deposits during the financial year was 2.90% (2014: 2.90%) per annum and the 
maturities of deposits are 30 days (2014: 30 days). 
 
18. Trade and other payables 
 
 2015 
RM’000 
2014 
RM’000 
Trade payables 471 910 
Other payables 722 410 
Accruals 545 93 
Deferred income 1,528 980 
 3,266 2,393 
 
The normal trade credit terms granted to the Group range from 30 to 60 days.  Exposure to liquidity 
and currency risks related to trade and other payables is disclosed in note 23.  The Directors consider 
that the carrying amount of trade and other payables approximates their fair values. 
 
19. Hire purchase liabilities 
 
 2015 
RM’000 
2014 
RM’000 
Current liabilities   
Hire purchase liability 92 62 
   
Non-current liabilities   
Hire purchase liability 744 457 
Total hire purchase liabilities 836 519 
 
The financial commitments arising from the hire purchase agreements are disclose in note 22. 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
48 
 
20. Deferred tax liabilities 
 
 2015 
RM’000 
2014 
RM’000 
Deferred tax liabilities   
At 1 January 86 73 
Charge in statement of comprehensive income 12 13 
At 31 December 98 86 
   
The net deferred taxation liability arises as a result of:   
Accelerated capital allowances 12 13 
 12 13 
 
The net deferred tax liability and assets after appropriate offsetting are as follows: 
 
 2015 
RM’000 
2014 
RM’000 
Deferred tax liabilities 98 86 
Deferred tax assets (unrecognised) (430) (220) 
 (332) (134) 
 
    
21. Share capital 
 
Authorised at 31 December 2015  
An unlimited number of ordinary shares of nil par value each  
  
 Number 
At 1 January 2015 18,480,083 
New shares issued 3,669,003 
At 31 December 2015 22,149,086 
 
On 5 June 2015, the Group completed a placing and subscription of 3,231,138 ordinary shares of nil 
par value at 54p per placing share, raising £1.74 million (or an equivalent of RM10,333,664). Share 
issue expenses amounted to RM567,935 resulting in net cash proceeds of RM9,765,729. 
 
On 29 December 2015, the Group completed an interim scrip dividend by issuing 437,865 ordinary 
shares at a share price of 25.85p (or an equivalent of RM730,000). 
 
 
 
 
 
 
 
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
49 
 
22. Commitments 
 
(a) Capital commitments 
 
There were no capital commitments contracted for at 31 December 2015 but not yet incurred (2014: 
Nil). 
 
(b) Operating lease commitments 
 
The Group leases various assets under non-cancellable operating lease agreements.  These leases have 
varying terms, conditions and renewal rights.  The lease expenditure charge to the statement of 
comprehensive incomes is shown in note 7.  The future aggregate minimum lease payments under 
these agreements are as follows: 
 
 2015 
RM’000 
2014 
RM’000 
Less than one year 356 472 
Between one and five years 39 746 
Future minimum lease payments 395 1,218 
 
(c) Hire purchase commitments 
 
The Group leases various assets under non-cancellable hire purchase agreements.  These lease have 
varying terms, conditions and renewal rights.  The future aggregate minimum lease payments under 
these agreements are as follows: 
 
 2015 
RM’000 
2014 
RM’000 
Less than one year 131 84 
Between one and five years 526 337 
More than five years 339 185 
 996 606 
Less: Future finance charges (160) (87) 
Present value of hire purchase liabilities 836 519 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
50 
 
23. Financial instruments 
 
 Loan and 
receivables 
RM’000 
Financial liabilities 
at amortised cost 
RM’000 
 
Total 
RM’000 
Classification of financial instruments    
Year ended 31 December 2015    
Financial Assets    
Trade receivables 13,779 - 13,779 
Other receivables 2,802 - 2,802 
Fixed deposit with a licensed bank 19 - 19 
Total financial assets 16,600 - 16,600 
Financial Liabilities    
Trade payables - 471 471 
Other payables - 2,795 2,795 
Share capital payables - 2,074 2,074 
Hire purchase payables - 836 836 
Total financial liabilities - 6,176 6,176 
 
 
 Loan and 
receivables 
RM’000 
Financial liabilities 
at amortised cost 
RM’000 
 
Total 
RM’000 
Classification of financial instruments    
Year ended 31 December 2014    
Financial Assets    
Trade receivables 9,692 - 9,692 
Other receivables 1,499 - 1,499 
Fixed deposit with a licensed bank - - - 
Total financial assets 11,191 - 11,191 
Financial Liabilities    
Trade payables - 910 910 
Other payables - 1,483 1,483 
Share capital payables - 2,645 2,645 
Hire purchase payables - 519 519 
Total financial liabilities - 5,557 5,557 
 
Financial Risk Management Objectives and Policies 
The Group’s financial risk management policy seeks to ensure that adequate financial resources are 
available for the development of the Group’s business whilst managing its risks.  The Group does not 
engage in speculative transactions or hedging transactions. 
 
The Group’s principal financial instruments consist of cash and cash equivalents.  The main purpose 
of these financial instruments is to finance the Group’s operations.  The Group has other financial 
instruments such as receivables and payables that arise directly from its operations. 
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
51 
 
23. Financial instruments (continued) 
 
The Directors have overall responsibility for the establishment and oversight of the Group’s risk 
management and they recognise that financial risk management is an area in which they may need to 
develop specific policies should the Group become exposed to further financial risks as the business 
develops. 
 
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk, market price 
risk, foreign currency risk and interest rate risk.  This note presents information about the Group’s 
exposure to each of these risks.  The Board reviews and agrees policies for managing each of these 
risks as and when they arise.  Further quantitative disclosures are included throughout the financial 
information. 
 
Credit Risk 
Credit risk arises mainly from the inability of customers to make payments when due.  The Group has 
adopted a policy of only dealing with counterparties that the Directors consider to be credit worthy.  
Receivables are monitored on an on-going basis via Group’s management reporting procedures and 
action will be taken for long outstanding debts deemed irrecoverable. 
 
The carrying amounts of the financial assets recorded on the statement of financial position at the 
end of the reporting period represents the Group’s maximum exposure to credit risk in relation to 
financial assets.  Cash at banks are placed with financial institutions that the Directors consider to be 
credit worthy. 
 
The Group’s credit risk exposure relates to the Group’s debts and is discussed in greater detail in note 
16. 
 
Liquidity Risk 
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.  
As part of its overall prudent liquidity risk management, the Group actively manages its cash flows and 
ensures that sufficient funding is in place to meet the obligations as and when they fall due. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
52 
 
23. Financial instruments (continued) 
 
Liquidity Risk (Continued) 
The following table analyses the remaining contractual maturity for financial liabilities.  The tables 
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date 
on which the Group can be required to pay. 
 
 On demand 
or within 
1 year 
RM’000 
1 to 2 
years 
 
RM’000 
2 to 3 
years 
 
RM’000 
3 to 4 
years 
 
RM’000 
4 to 5 
years 
 
RM’000 
After 5 
years 
 
RM’000 
Total 
 
 
RM’000 
2015        
Trade payables 471 - - - - - 471 
Other payables 2,795 - - - - - 2,795 
Hire purchase 
payables 
 
92 
 
131 
 
131 
 
132 
 
132 
 
218 
 
836 
 3,358 131 131 132 132 218 4,102 
 
 On demand 
or within 
1 year 
RM’000 
1 to 2 
years 
 
RM’000 
2 to 3 
years 
 
RM’000 
3 to 4 
years 
 
RM’000 
4 to 5 
years 
 
RM’000 
After 5 
years 
 
RM’000 
Total 
 
 
RM’000 
2014        
Trade payables 910 - - - - - 910 
Other payables 1,483 - - - - - 1,483 
Hire purchase 
payables 
 
84 
 
84 
 
84 
 
84 
 
85 
 
185 
 
606 
 2,477 84 84 84 85 185 2,999 
 
Interest Rate Risk 
The carrying amounts of the Group financial instruments that are exposed to interest rate risk are as 
follows: 
 
 2015 
RM’000 
2014 
RM’000 
Fixed deposit with licensed banks 19 - 
 
Currency Risk 
The Group is exposed to foreign currency risk on transactions and balances that are denominated in 
currencies other than RM. The currencies giving rise to this risk are primarily Singapore Dollar. Foreign 
currency risk is monitored closely on an ongoing basis to ensure that the net exposure is at an 
acceptable level. 
 
 
 
 
 
 
 
   
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
53 
 
23. Financial instruments (continued) 
 
Currency Risk (continued) 
 
The carrying amounts of the Group’s foreign denominated financial assets are as follows: 
 
 2015 
RM’000 
2014 
RM’000 
Trade receivables - 2 
Others receivables 2 85 
 2 87 
 
A 10% strengthening of Ringgit Malaysia against assets held in foreign currencies at the end of the 
reporting period would have an insignificant impact on the profit before taxation and other 
comprehensive income. 
 
Market Price Risk 
Market price risk is the risk that changes in market prices will affect the Group’s income.  The objective 
of market price risk management is to manage and control market risk exposures within acceptable 
parameters, while optimising the return on risk. 
 
Fair values 
Generally, the carrying amounts of all financial assets and liabilities of the Group as disclosed in the 
notes to the financial information approximate their faire values. 
 
Capital Risk Management 
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a 
going concern in order to provide returns for shareholders, benefits for other stakeholders and to 
maintain an optimal capital structure to reduce the cost of capital with an appropriate level of leverage 
for the size of the business so as to maintain investor, creditor and market confidence and to sustain 
future development of the business.  In order to maintain or adjust the capital structure, the Group 
may return capital to shareholders, issue new shares or sell assets to reduce debts.  There have been 
no changes to the Group’s approach to capital management during the year ended 31 December 2015. 
 
The Company and Group are not subject to any externally imposed capital requirements. 
 
24. Contingent liabilities 
 
The Group had no contingent liabilities at 31 December 2015. 
 
25. Subsequent events 
 
Subsequent to the year end, SalesMAP Sdn. Bhd., a wholly owned subsidiary of SalesMAP Pte. Ltd., 
was established in Malaysia and SalesMAP Pte. Ltd., a wholly owned subsidiary of RapidCloud 
International Plc., was established in Singapore to market and sell the Company’s flagship product, 
SalesMAP.  SalesMap is an intelligent sales system and a platform to build a structured sales process 
and manage sales performance. 
    
Notes to the Consolidated of Financial Statements  
For the year ended 31 December 2015  
54 
 
26. Related party transactions 
 
Key management personnel of the Group are defined as those persons having authority and 
responsibility for the planning, directing and controlling the activities of the Group, directly or 
indirectly.  Key management personnel compensation comprised: 
 
 2015 
RM’000 
2014 
RM’000 
Short-term employee benefits 1,308 1,975 
Other long-term benefits 30 189 
 1,338 2,164 
 
27. Ultimate controlling party 
 
There is no ultimate controlling party. 
 
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