Fusionex International Plc
Annual report 2016
SPECIALISTS IN ANALYTICS 
AND BIG DATA
Fusionex International Plc Annual report 2016 Helping clients manage, make sense of, 
and gain insights and foresight from data.
Fusionex is a multi-award winning IT software group, specialising in 
Analytics, Big Data, the Internet of Things (IoT), Artificial Intelligence 
and Deep Learning. We empower clients to start small but 
think big in their Big Data Analytics journey.
D I SP E R SE D AR K N E S S 
A N D U N C E R TA I NT Y 
W I T H B I G D A T A
STRATEGIC REPORT G F Fusionex International Plc Annual report 2016
01
STRATEGIC REPORT
IFC Fusionex at a glance
02 Highlights
03 Chairman’s statement
04 CEO’s review
06 Financial review
08 Principal risks and uncertainties
CORPORATE GOVERNANCE
11 Board of Directors
12 Directors’ report
14 Remuneration Committee report
16 Corporate governance report
FINANCIAL STATEMENTS
18 Independent auditor’s report
19  C o n s o l i d a te d statement 
of financial position
20  Co n solidated statement 
of comprehensive income
21  C o n s o l i d a te d s t a te m e n t  
of changes in equity
22  Consolidated statement of  
cash flows
23 Notes to the financial statements
Fusionex is seeing growth opportunities 
for its big data GIANT Analytics platform 
far greater than even it had anticipated.”
Shares Magazine, 28 January 2016
 Find out more online at
 fusionex-international.com
“ Fusionex International Plc Annual report 2016
02
STRATEGIC REPORT G F
HIGHLIGHTS
FOR THE YEAR ENDED SEPTEMBER 2016
MAJOR MILESTONES ACHIEVED
 Sales of GIANT ahead of expectations.
  Excellent progress for Partner 
Channel Network.
  Fusionex software receives Special Mention 
in Gartner’s 2016 Magic Quadrant.
  Results ahead of expectations and 
analysts’ consensus.
  Following a steady performance last year, 
the current financial year is building on this 
momentum, with abundant opportunities 
in the Asian region.
Revenue*
94.6m
+23%
Gross profit*
74.0m
+26%
Cash and cash equivalents*
94.2m
+63%
Net operating cash flows*
17.5m
+51%
2016 2016
2016 2016
94.6 74.0
94.2 17.5
2015 2015
2015 2015 57.7 11.6
2014 2014
2014 2014
44.3
64.0 24.5
2016 proved to be a financial year where 
Fusionex overcame overwhelming odds 
and exceeded expectations.
“ We chose Fusionex because Fusionex has 
amazing solutions.”
  J o s e p h L e e Regional Director, Cloudera
* RM (Malaysian Ringgit).
77.0
57.1
58.9 Fusionex International Plc Annual report 2016
03
CHAIRMAN’S STATEMENT
WITH JOHN CROFT
I am delighted to report on another very 
successful year for the Company during 
which, in spite of many global instabilities, 
we have seen significant traction with 
customers for our Data Analytics solutions 
whilst continuing to make substantial 
investments in our technologies to ensure 
we maintain our competitive edge.
During the year, our revenues grew by 
23%  to RM94.6 million, driven by new 
customer wins for our flagship end‑to‑end 
Data Analytics software GIANT. It is 
very  encouraging to note also that our 
customer  base continues to expand 
across  multiple sectors, including retail, 
travel, media, hospitality as well as 
the financial services sector, all of which 
offer  tremendous opportunities and 
demonstrates the extensive market reach 
for our product offerings.
As anticipated, 2016 was a year of significant 
investment for the Company as we put in 
place the building blocks for accelerating 
growth and positioning the Company 
to  be  able to take full advantage of the 
fast emerging opportunities for Big Data 
solutions, of which Fusionex remains one 
of the leading providers. The investments 
made, utilising the 2015 funds raised, were 
in anticipation that the Company would be 
willing to trade off short term profitability 
during this investment period to pursue 
mid to long term sustainable growth. In the 
event EBITDA achieved was RM15.4 million 
which was well ahead of expectations, 
demonstrating the quality of our team and 
their ability to carefully manage resources.
Our balance sheet remains very strong with 
cash and cash equivalents of RM94.2m 
aided by a significant improvement in days 
in trade receivables during the year. 
Unfortunately, however, the unexpected 
fall in the value of the Pound Sterling during 
the year did have an adverse impact on our 
bottom line, whereas in previous years the 
impact of currency fluctuations was positive.
Once again, the Company has been 
recognised by many trade bodies and 
associations as a leader in its sector. 
Fusionex was awarded the highly coveted 
Asian‑Oceanic Computing Industry 
Organisation (ASOCIO) Award for 
Outstanding ICT Company for the second 
year in a row. Additionally, Fusionex was 
awarded the PIKOM Leadership Excellence 
Award by the National ICT Association of 
Malaysia, as well as the Award for 
Outstanding Excellence by the Malaysian 
Retail Chain Association (MRCA). Fusionex 
also received special mention in Gartner’s 
2016 Magic Quadrant Report, where we are 
listed as a “vendor of interest” in Real ‑Time 
Process and Operational Intelligence.
We are constantly looking at ways to 
improve our technologies, particularly their 
ease of use and intuitiveness so that they 
become even more productive tools for 
users. This year we are launching our next 
generation Big Data Analytics 
software  solution, Fusionex GIANT 2017, 
and which we are confident will address 
the ever‑growing demand for data 
analytics in real business applications, as 
well as for Artificial Intelligence components 
in a world of increasing prevalence 
of  robotics, voice command‑activated 
technologies and even driverless cars. 
2016 was a year of continued growth, 
technological innovation and investment 
in our people and infrastructure. I am very 
pleased to report that the sales momentum 
we experienced in 2016 has continued 
strongly in 2017, and I am confident that 
this will be reflected in an ever‑improving 
set of results as the year progresses.
I would like to take this opportunity to 
thank all of our staff for their outstanding 
achievements and hard work over the past 
year. I would also like to thank you, our 
shareholders, for your continued support.
John Croft
Non-Executive Chairman
15 March 2017 
The sales momentum 
experienced in 2016 has 
continued strongly in 2017. Fusionex International Plc Annual report 2016
04
STRATEGIC REPORT G F
CEO’S REVIEW
WITH IVAN TEH
Overview
In 2016, Fusionex worked towards and laid 
a very strong foundation for the future. We 
continued to invest in our crown jewels, i.e. 
our award winning Big Data Analytics, IoT 
and Artificial Intelligence (AI) offerings; we 
invested in geographical expansion to new 
locations; we strengthened our partner 
channel network; we also increased our 
brand awareness and marketing reach. All 
this and more has propelled the company 
towards a new level of international growth 
and opportunities. 
Winning a raft of awards and continuing 
our strong momentum, the Fusionex team 
worked in unison to exceed expectations. 
We  also welcomed new clients on board 
while maintaining a high client retention 
rate  thanks to the increasing adoption 
of our flagship Big Data Analytics product 
(GIANT). Despite economic concerns 
emanating from Europe and leadership 
changes in the United States, Fusionex 
has maintained its resilience, consistency 
and focus.
Humanising Technology
Fusionex has been making waves in 
industries beyond the typical reach of 
our counterparts. We believe technology 
has the ability to provide solutions in 
virtually every sector, ranging from the 
physical realm of manufacturing and city 
planning, the psychological realm of retail 
customer behaviour, or even the digital 
realm of financial risk management.
From an industry outlook perspective, 
IT spend is forecasted to maintain a stable 
trajectory this year. Global Research 
house Gartner has forecasted worldwide 
IT spend  to reach $3.5 trillion in 2017. 
Software and IT services spend is projected 
to grow to $357 billion and $943 billion 
respectively in 2017. 
Our upcoming, new and vastly improved 
Big  Data Analytics software, Fusionex 
GIANT (previewed in Community Technology 
Preview (CTP) mode in the fourth quarter 
of 2016), is a game‑changing solution. It 
features major upgrades and enhancements 
compared to its predecessor, which includes 
AI components that customers increasingly 
need in this data‑driven era. 
According to International Data Corporation 
(IDC), worldwide adoption of AI across a 
range of industries would result in 
AI  solutions expanding by a compound 
annual growth rate (CAGR) of 55.1% over 
the period of 2016‑2020. Such solutions 
are expected to drive worldwide revenues 
from $8 billion in 2016 to more than 
$47 billion in 2020.
Major use cases for AI and Big Data 
initiatives, which attract the most 
investment and attention, include but 
are  not limited to automated customer 
service agents, diagnosis and treatment 
systems, fintech, smart healthcare, smart 
manufacturing, smart cities and nations, 
marketing analytics and fraud analysis, 
just to name a few. 
To ride this next wave of the 4th industrial 
revolution, Fusionex continues to strive to 
make it easier for users at all levels to carry 
out data analysis, cognitive computing 
and  Artificial Intelligence via an intuitive 
interface, where users are able derive 
insights from their data by just asking 
pertinent questions – effectively talking 
and interacting with the software like 
one  would via a personal consultant or 
data officer. 
Riding on a strong wave 
of opportunity in 2017. Fusionex International Plc Annual report 2016
05
“ We chose Fusionex because they are experts 
in… analytics, databases and data warehousing. 
It’s been a good 6 years working with them 
and we look forward to another 60 years!” 
 Tom Gowallis Vice President, TNS Group
Throughout 2016, Fusionex GIANT has 
been  very well received by organisations, 
particularly from the retail, travel and 
hospitality, and financial services industries. 
In 2017, we target to release an exciting 
next‑generation version of GIANT.
Fusionex continues to make strategic 
investments in our research and 
development (R&D) to derive better 
ways  to  humanise technology, creating 
a  data‑driven culture for any individual 
or  organisation that it comes across. 
Staying ahead of market trends, our R&D 
team constantly looks at ways to make 
our  technology smarter and friendlier 
for everyone.
Our Achievements to date
We never rest on our laurels. Clinching 
awards and receiving valued recognition 
has spurred our team to strive for even 
greater achievements. We do not settle 
for being second best.
From a global front, Fusionex was cited as 
a vendor of interest in Gartner’s 2016 
Magic  Quadrant report, particularly in 
“Real‑Time Process and Operational 
Intelligence”. The numerous awards won 
by Fusionex in 2016 include winning the 
Outstanding ICT Company award from 
the  Asian‑Oceanian Computing Industry 
Organization (ASOCIO) for the second 
consecutive year.
2016 also saw the expansion and 
strengthening of the Fusionex Partner 
Network. Cloudera joined forces with 
Fusionex via a strategic partnership that 
allows both companies to extend their 
reach across the global marketplace.
These milestones form but a few of the 
many achievements that Fusionex has 
attained in the last financial year. 
Future Outlook
Amidst economic concerns and negative 
market sentiments, Fusionex more than 
delivered on its promises, grew steadily in 
2016 and was, yet again, ahead of market 
expectations and analysts’ consensus. 
The Group’s strong recurring revenue and 
solid customer base is poised to increase 
even further with the many new customer 
wins. We maintain our focus in constantly 
investing in innovation to keep our offerings 
exciting, fresh, and ahead of the market.
We see 2017 as a very promising year. 
If  we  capitalise on the opportunities 
appropriately; if we stay true to our 
course  of investing towards ingenuity, 
quality and innovation; and if we maintain 
our principles of being a forerunner and 
leader in our space, we are very confident 
that we will accomplish much more in the 
upcoming year and the years to come.
Ivan Teh
Chief Executive Officer
15 March 2017 Fusionex International Plc Annual report 2016
06
STRATEGIC REPORT G F
FINANCIAL REVIEW
WITH YUEN CHOONG LAI
The Group’s gross profit 
has increased by 26%.
For the year under review, Fusionex has 
grown the Group’s revenue with a 
double‑digit growth rate while maintaining 
its positive contribution in terms of the 
Group’s profitability.
Revenue 
Group revenue has continued to 
grow   and  has increased by 23% to 
RM94.6 million. Revenue contribution from 
products amounted to 88.6% of the total 
annual revenue.
The Group has continued to expand its 
market presence in the Asia Pacific region. 
Asia Pacific remains the Group’s market 
stronghold and the contribution from this 
region amounted to 81% of the total 
revenue. This positive growth of the 
Group’s revenue and market share has 
been attributed to its strong customer 
wins, coupled with the rich functionalities 
and features of the Group’s Big Data 
Analytics offering. Contributions from its 
partner channel networks, that have been 
implemented by the Group as another 
channel to reach targeted markets, have 
also had a positive impact on the growth 
of its revenue base. 
The Group’s gross profit has increased by 
26% to RM74.0 million, from RM58.9 million 
in 2015. For the financial period, the Group 
has continued to invest in research and 
development to develop a newer version 
of GIANT as well as to continuously 
enhance  and expand the features and 
functionalities of the Group’s core 
products and offerings. A total amount of 
RM26.4  million has been expended and 
capitalised by the Group into its research 
and development expenditure for the year. 
EBITDA and profitability
Contrary to initial estimates for the relevant 
financial year, the Group has maintained 
positive EBITDA for the financial year 
under  review, where its EBITDA stands 
at  RM15.4  million (2015: RM35.0 million) 
(note 21), in achieving the Group’s plan to 
develop newer and better functionalities 
for its core products alongside expansion 
into other market regions in Asia Pacific. 
The reduction in  profitability arose as a 
result of the Group increasing its 
expenditure towards marketing 
programmes and events, procuring of 
equipment, infrastructure, and cloud and 
other IT services, as well as into the 
development of its core products all in 
accordance with its initial plans. The Group 
still maintains a positive net profit for the 
year of RM1.4 million despite the significant 
increase in investment in the business 
for FY2016. 
Taxation
Income of the Group continues to be 
exempted from tax in certain countries of 
operations and for other non‑ tax exempted 
countries higher tax allowances were granted. 
Cash flow
The Group has generated positive cash 
flows from its operations. The good 
operations of the Group during the 
financial year have resulted in the Group 
being able  to maintain strong cash 
and  cash  equivalents of RM94.2 million 
(2015: RM57.7 million). 
Borrowings and bank facilities
T otal borrowings of the Group have decreased 
for the financial year to RM19.4 million. The 
decrease in the borrowings was mainly from 
the repayment  of the term loan facilities 
for the Group’s head office.
Equity
The total equity of the Group stands at 
RM194.2 million (2015:  RM128.7  million). 
Earnings per share (EPS) of the Group 
continue to be positive at RM0.03.
Yuen Choong Lai
Chief Financial Officer 
15 March 2017  Fusionex International Plc Annual report 2016
07
“ Fusionex GIANT is very intuitive and easy to 
use. It puts the power of Big Data in the hands 
of business owners and managers without 
the need for any training course.”
 Liam Smith Adviser and Consultant, CCMS
Key performance indicators
RM’million
30 September
2016
30 September
2015
Revenue 94.6 77.0
By type 
Products 83.8 68.0
Services 10.8 9.0
By region 
Asia Pacific 95.1 77.0
UK & Europe 13.5 14.8
USA 8.3 5.6
Consolidation elimination (22.2) (20.4)
Gross profit 74.0 58.9
EBITDA 15.4 35.0
Profit before tax 4.6 28.3
Profit after tax 1.4 24.9
EPS (RM) 0.03 0.58
The principal movements in net cash were as follows:
RM’million
30 September
2016
30 September
2015
Cash flows from operations 17.5 11.6
Acquisition of property, plant and 
equipment  (18.1) (5.0)
Development costs incurred on 
intangible assets (26.4) (16.5)
Net proceeds from new placing 77.1 —
Dividend paid (5.9) (5.0)
Change in net cash and cash 
equivalent in the financial year  43.3 (12.7)
Cash and cash equivalent at the 
beginning of the financial year 57.7 64.0
Effects of foreign exchange rate 
changes, net (6.9) 6.4
Cash and cash equivalent at the end 
of the financial year 94.2 57.7 Fusionex International Plc Annual report 2016
08
STRATEGIC REPORT G F
PRINCIPAL RISKS AND UNCERTAINTIES
Risk description Mitigation Change
Business and market risks
Technological evolution
There may be an impact on the Group’s business and 
prospects  due to continuous technological evolution, the 
introduction of new products, changing industry standards 
and customers’ needs.
The Group invests in R&D and market research to realise 
the potential of new and existing products as well as 
monitoring the changes in industry standards in order to 
have its finger on the pulse of the needs of its customers.
Advances in competing technologies
The software market is a constantly developing and competitive 
one, with many larger companies having significant financial 
resources and funding to develop and promote their products. 
There are also new entrants to the market who may develop 
products that compete with the products of the Group, 
particularly in terms of technology or pricing. Such competitors 
may also invest more substantially to promote and market 
their products ahead of the Group, which may, in turn, adversely 
affect the Group’s business and prospects.
Fusionex has been and continues to be recognised for its 
best‑in‑class Big Data offering. The Group continues to 
benchmark its products against competitors to ensure it 
remains at the forefront of the industry.
The Group intends to continue to invest substantially in 
the Fusionex brand to maintain mindshare and build upon 
its competitive strengths, thereby keeping its technology 
and products ahead of its competitors.
Market risks
The success of the Group is dependent in part on the market 
acceptance of its products, including any new products or 
services that may be introduced by the Group. Whilst these 
general market trends are unrelated to the performance 
of the Group, the Group may be affected by such changes 
in general market trends.
The Group conducts ongoing studies of general market 
trends and developments, including engaging analysts to 
study and review such trends, in order to enable the Group 
to make responsive changes to its business plan 
when necessary.
The overall responsibility for the appropriate management of the 
Group’s risks rests with the Board. 
The main categories of risk for the Group comprise the following:
 » business and market risks;
 » financial risks;
 » operational risks; and
 » compliance risks.
Financial risks are disclosed under note 30 in the notes to the 
accounts. The table below provides a summary of other principal 
risks that have been identified. These risks do not encompass an 
extensive analysis of all of the Group’s risks.
The risk management framework of the Group is designed 
to identify, manage and mitigate material risks for the 
achievement of the Group’s strategic and business objectives. Fusionex International Plc Annual report 2016
09
Risk description Mitigation Change
Business and market risks continued
Foreign currency risk
With the Group operating on a multi‑national basis, 
fluctuations in foreign currency exchange rates and market 
volatility resulting in negative movements of the currency 
could have a material adverse effect on the Group’s 
profitability or the price competitiveness of its products and 
services. In that connection, there can be no guarantee that 
the Group would be able to compensate or hedge against 
such adverse effects and therefore negative exchange rate 
effects could have a material adverse effect on the Group’s 
business, prospects and financial performance. 
Notwithstanding that this is an inherent risk for any 
multi‑national organisation, the Group endeavours to 
match, as far as possible, its revenue and cost with the 
same currency within the respective jurisdictions while 
closely monitoring foreign exchange fluctuations. 
Operational risks
Dependence on key Executives and technical personnel
A key factor in the success of the Group’s business is its ability 
to attract and retain its key Executives in management, 
software development, sales and marketing positions, all of 
whom support the continued success of the Group.
The Group offers a competitive remuneration package to 
attract and retain quality staff. 
The Group engages in proper training and career development 
programmes for all staff. This is to ensure that its staff are 
equipped with the understanding required to drive the 
business forward in line with the Group’s business strategy 
and direction.
The Group has also invested in premises and staff welfare, 
which has resulted in Fusionex being an inclusive and 
supportive place to work.
Adequate manpower
Given the Group’s rate of expansion, there may be inadequate 
manpower to complete initiatives undertaken by the Group. 
The Group plans the duration and timing of initiatives to ensure 
staff are effectively managed as well as efficiently allocated to 
meet delivery demands of its customers.
The Group is committed to human resource planning to ensure 
efficient utilisation of staff for each initiative.
The Group carefully plans recruitment taking into 
consideration that the level of staff is appropriately aligned 
to the needs and, ultimately, the direction of the Group.
Key
Decreased risk Increased risk No change Fusionex International Plc Annual report 2016
10
STRATEGIC REPORT G F
Risk description Mitigation Change
Operational risks continued
Protection of intellectual property
The Group is reliant on internal processes and systems to 
protect such rights. Whilst management views efforts to 
protect its proprietary rights in its proprietary systems, 
processes and software as robust, and is constantly vigilant 
for any potential breaches of such rights by third parties, 
there is a risk that such efforts may not be sufficient to 
prevent misappropriation of the Group’s intellectual 
property, or detect unauthorised use of its intellectual 
property rights.
Stringent internal processes and systems with high level 
security features are incorporated into the development 
and maintenance of software. 
Segregation of duties among the software developers also 
prevents individuals from possessing a complete blueprint 
of the software.
Product risk
When first introduced or enhanced, the products may 
contain undetected defects that may fail to meet 
customers’  performance requirements or satisfy the 
contract specifications.
The Group has implemented a Capability Maturity Model 
Integration (CMMI) accredited software development process 
to ensure product quality.
Strict internal quality control procedures test all 
products developed.
Further, the business development team works closely with 
customers to ensure that any gaps between what is specified 
in the contract and what is provided are minimised and, 
ultimately, closed.
Reliance on key systems
There is a certain measure of reliance placed by the Group 
on certain key systems and technologies for its continuing 
operations. This may expose the Group to significant risk 
as the systems are vulnerable to damage or interruption.
The procedures in place ensure that key systems and 
technologies are continually monitored and tested to 
minimise malfunctions and downtime.
Business contingency plans have been prepared by the 
Group to ensure continuity of operations, including stringent 
physical security, uninterrupted power supply, an alternative 
back‑up site in case of emergency and a Grade A office.
Compliance risk
Mandatory reporting and announcements
Delays in reporting could arise due to untimely or 
unavailable information or a failure in internal procedures 
for mandatory reporting.
The Group has internal procedures in place to monitor 
mandatory reporting and other regulatory requirements closely 
and consistently.
The Group practices a policy of hiring suitable local personnel 
in the relevant jurisdictions in order to benefit from their 
expertise in local regulations and to ensure that the Company 
adheres to the necessary regulations.
PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED Fusionex International Plc Annual report 2016
11
John Croft 
Non-Executive Chairman
John is an experienced director of AIM 
quoted companies, and has previously 
worked in executive as well as 
non‑executive capacities with a 
number of fast growth companies in 
the technology and financial services 
sectors. He is also the Non‑ Executive 
Chairman of Adamas Finance Asia 
Limited and a Non‑ Executive Director 
of Goal Group Limited. 
John was a former Chairman of e‑ pay 
Asia Limited, and previously held 
director level positions in Racal 
Electronics and NCR Corporation 
following an early career in banking 
with HSBC and Grindlays Bank.
Ivan Teh
CEO and Managing Director
Ivan has over 18 years of experience 
working in the information technology 
sector, including managerial positions 
at Hewlett Packard and Accenture. He 
has a strong network of contacts within 
the enterprise ICT space, especially in 
Asia, and is actively involved in various 
large scale IT initiatives and events 
across the Asia Pacific region. 
Ivan has been, and continues to be, 
invited by various companies and 
institutions to present IT related talks 
and seminars, as well as to provide his 
insights on the industry. He has trained 
and worked in the United States, Europe, 
Hong Kong, Singapore and Malaysia.
Yuen Choong Lai 
Chief Financial Officer
Yuen has more than 21 years of 
experience in finance and investment. 
He is a Chartered Accountant with the 
Malaysian Institute of Accountants (MIA) 
and a Certified Practising Accountant of 
CPA Australia. He also holds the 
Corporate Finance qualification from the 
Institute of Chartered Accountants in 
England and Wales.
Yuen holds various directorships in 
private and public listed companies.
Calvin Chun 
Non-Executive Director
Calvin has more than 20 years of 
experience in the finance industry and 
is a Chartered Accountant registered 
with the Malaysian Institute of 
Accountants and a member of CPA 
Australia. He is a non‑executive and 
non‑ independent director of Superlon 
Holdings Berhad, a company listed 
on the Main Market of Bursa Malaysia 
Securities Berhad, as well as a director 
of cfSolutions Sdn Bhd, a corporate 
finance advisory company registered with 
the Malaysian Securities Commission.
Calvin is also a Licensed Corporate 
Finance Advisory Representative 
under the Malaysian Capital Market & 
Services Act, 2007.
Robin Taylor 
Non-Executive Director
Robin joined Fusionex International 
plc as a Non‑ Executive Director and 
Chair of the Remuneration Committee 
in December 2012, bringing many 
years of experience as a plc director. 
Robin is currently a Non‑ Executive 
Director of EMIS Group plc and FDM 
Group (Holdings) plc. He was formerly 
Chief Financial Officer of main market 
publicly listed companies Intec Telecom 
Systems plc, ITNET plc and JBA Holdings 
plc. Prior to that, Robin held a variety 
of financial and general management 
roles in both Europe and North 
America. Robin is a member of  the 
Institute of Chartered Accountants 
of Scotland.
Alan Lim
Non-Executive Director
Alan has more than 16 years of 
experience working in the insurance 
and financial planning sector. 
Alan is a member of the prestigious Million 
Dollar Round Table association and a 
certified agency trainer at Prudential 
Assurance Malaysia Berhad. Prior to this, 
Alan worked at Frost & Sullivan, and 
before that, at Lotus Engineering.
Alan holds a MSc Degree in 
Manufacturing Systems Engineering 
from the University of Warwick, UK.
BOARD OF DIRECTORS
A A R A
N N
N R
R Fusionex International Plc Annual report 2016
12
S F CORPORATE GOVERNANCE
DIRECTORS’ REPORT
Principal activity
The principal activity of the Group is the development and 
provision of enterprise software solutions with a specific focus 
on Analytics and Big Data, IoT, Artificial Intelligence and 
deep learning.
The Company’s registered office address is 12 Castle Street, 
St. Helier, Jersey JE2 3RT, Channel Islands.
Business review and future developments
A review of the Group’s business operations, including key 
performance indicators and future developments, is set out in 
the Chairman’s Statement on page 3 and in the CEO’s Review 
together with the Financial Review on pages 4 and 6 respectively. 
Financial results
The financial results of the Group are set out in the Consolidated 
Statement of Comprehensive Income and other components of 
the financial statements with the accompanying notes to 
the statements.
Dividends
The Directors remain committed to adopting a dividend policy that 
fundamentally takes into account the Group’s profitability and 
growth, and availability of cash and distributable reserves after 
the requirement to finance the development and expansion of the 
business. A final dividend of RM5,942,954 million (amounting to 
2.15 pence per share) was paid by the Company on 19 April 2016. 
Directors and Directors’ shareholdings
The Directors who served on the Board and Board Committees 
during the year ended 30 September 2016 are set out in the profiles 
of the Board of Directors on page 11.
At each Annual General Meeting (AGM), as stated in the Articles 
of Association of the Company, one‑ third of the Directors who 
are subject to retirement by rotation shall retire from office and 
such Directors may stand for re‑ election subject to any rules or 
law to the contrary.
The Directors’ beneficial interests in the share capital of the 
Company and their remuneration are set out in the Remuneration 
Committee Report on pages 14 to 15.
No Director has had a material interest in any contract with the 
Company or any of its subsidiaries during the year under review.
Directors’ and officers’ insurance policy cover has been put in place 
to indemnify the Directors against any legal actions by third parties. 
Directors’ responsibilities
The Directors are responsible for preparing the financial 
statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare 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 and profit or 
loss of the Group for that period. In preparing the financial 
statements, the Directors are required to:
 » select suitable accounting policies and then apply 
them consistently;
 » make judgements and estimates that are reasonable, 
comparable, understandable and prudent;
 » state whether applicable accounting standards 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 inappropriate to presume that the Company will 
continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the Company and to enable them to ensure 
that the financial statements comply with the Companies (Jersey) 
Law 1991. The Directors are also responsible for safeguarding the 
assets of the Company and hence for taking reasonable steps for 
the prevention and detection of fraud and other irregularities.
The Directors present their report and the 
audited financial statements for the year 
ended 30 September 2016. Fusionex International Plc Annual report 2016
13
The Directors are responsible for the maintenance and integrity 
of the corporate and financial information included on the Group’s 
website. Legislation in Jersey governing the preparation and 
dissemination of financial statements may differ from legislation 
in other jurisdictions.
Research and development
Continuing R&D programmes to increase the functionality and 
features of the Company’s software offerings have been carried 
out by the Company. The Group has capitalised RM26.4 million 
of the development costs as intangible assets of the Group. An 
amortisation expense of RM7.7 million has been charged for the 
financial year.
Employees
The Group’s policy is to have a competitive remuneration and 
benefits provision to attract and retain the best and brightest 
talent. The Group is committed to ensuring that equal opportunities 
are afforded to all of its employees, irrespective of age, gender 
and nationality, in training, career development and advancement.
Risks relating to the Group and its business
A review of the risks associated with the Group and the nature of 
its business is set out in the principal risks and uncertainties 
section on pages 8 to 10.
Going concern
The Company’s activities and development of its products, 
services and markets are set out in the CEO’s Review on pages 4 
and 5. The performance of the Company in terms of revenue, 
profitability and cash flows is explained in the Financial Review 
on pages 6 and 7. The financial risks management are set out in 
note 30 in the notes to the financial statements. 
After an assessment of the available financial information including 
forecasts for the next 12 months, and taking into account the 
nature of the business, which has recurring revenue with good 
cash conversion that generates sufficient cash resources as 
reflected in the current financial position of the Group with cash 
position of RM94.2 million as at 30 September 2016, the Directors 
believe that the Group has adequate resources to continue to 
operate for the foreseeable future. Therefore, it is appropriate to 
continue to adopt the going concern basis of accounting in the 
preparation of the Company consolidated financial statements.
Annual General Meeting
The notice for the convening of the AGM on 31 March 2017, 
together with the proposed resolutions, is contained in the Notice 
of AGM attached to this annual report.
Auditor and disclosure of information to auditor
The Directors who held office on the date of approval of this 
Directors’ Report confirm that, so far as they are aware, there is 
no relevant audit information of which the Company’s auditor is 
unaware. The Directors have confirmed that they have taken all 
steps that they ought to have taken as Directors in order to make 
themselves aware of any relevant audit information and to 
establish that the Company’s auditor is aware of that information.
Crowe Clark Whitehill LLP has indicated its willingness to be 
re‑appointed as auditor. A resolution for the re ‑ appointment of 
Crowe Clark Whitehill LLP as auditor of the Company is to be 
proposed at the forthcoming Annual General Meeting. Fusionex International Plc Annual report 2016
14
S F CORPORATE GOVERNANCE
REMUNERATION COMMITTEE REPORT
Fusionex International Plc, being an AIM‑ quoted company, has 
adopted the general principles of the Remuneration Committee 
Guide  for Smaller Quoted Companies of the Quoted Companies 
Alliance (QCA).
Remuneration Committee
The Remuneration Committee comprises the Chairman of the 
Committee, Robin Taylor (Non‑ Executive Director), John Croft 
(Non‑ Executive Chairman) and Alan Lim (Non‑ Executive Director). 
The terms of reference of the Committee are available on the 
Company’s website and are reviewed annually by the Board.
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.
The Remuneration Committee met 2 times in the period under 
review. Details of attendance are shown in the Corporate 
Governance Report on page 16. 
Remuneration policy
The objective of the remuneration policy is to attract, retain and 
motivate high calibre Executives as well as to achieve the overall 
objective of promoting teamwork in delivering outstanding 
shareholder returns while maintaining an appropriate 
compensation balance for all the employees of the Group. 
An  employee benefit trust was established in December 2016 
to  incentivise employees through the award of shares in the 
capital of the Company.
Directors’ remuneration
The normal remuneration arrangements for Executive Directors 
consist of base salary, annual performance‑ related bonuses and 
other benefits as determined by the Board. Each of the Executive 
Directors has a service agreement that can be terminated at any 
time by either party giving the other 6 months’ written notice. 
Compensation for loss of office is restricted to base salary and 
benefits only.
Detailed below are the remuneration packages for the 
Executive Directors:
Base salary – annual review of the base salaries of the Executive 
Directors is conducted after taking into account the Executive 
Directors’ roles, responsibilities and contributions to the 
Group’s performance.
Benefits – benefits include payments for provident funds that 
are mandatory, statutory pension payments as required by the 
laws of the resident countries of the Executive Directors, health 
insurance and other benefits.
Performance bonus – bonus is payable to Executive Directors 
based on the overall performance of the Group.
Non-Executive Directors
Non‑ Executive Directors are remunerated solely in the form of 
Director fees determined by the Board and are not entitled to 
pensions, annual bonuses or employee benefits. They are entitled 
to participate in share option arrangements relating to the 
Company’s shares but, as there are no such share option 
arrangements in place at this time, there is no participation from 
the Non‑ Executive Directors. Each of the Non‑ Executive Directors 
has a letter of appointment stating his annual fee and that the 
appointments are to continue unless terminated by the Company 
by giving 3 months written notice or by the Non‑ Executive 
Directors by giving 6 months notice.
Directors are not involved in specific discussions on their 
own remuneration.
TSR performance
The graph below sets out, for the period from 1 October 2015 to 
6 January 2017, the total shareholder return of Fusionex 
International Plc as well as the performance of the FTSE AIM 
All‑Share Index and the FTSE 100.
FTSE 100 FTSE AIM All‑Share Index Fusionex International Plc
01 Oct 15 01 Nov 15 01 Dec 15 01 Jan 16 01 Feb 16 01 Mar 16 01 Apr 16 01 May 16 01 Jun 16 01 Jul 16 01 Aug 16 01 Sep 16 01 Oct 16 01 Nov 16 01 Dec 16
 0.30
 0.40
 0.50
 0.60
 0.70
 0.80
 0.90
 1.00
 1.10
 1.20
 1.30
06 Jan 17 Fusionex International Plc Annual report 2016
15
Directors’ interests
The interests of Directors (and their immediate families) over the ordinary shares of the Company are as follows:
Director
Number 
of shares at 
30 September 
2016
John Croft 24,800
Ivan Teh
(1)
22,050,000
Yuen Choong Lai
(1)
700,000
Robin Taylor 25,669
Calvin Chun 8,666
Alan Lim 26,500
Notes:
(1)  In addition to holding their respective legal and beneficial shares as indicated in the above table, both Ivan Teh and Yuen Choong Lai jointly hold 286,043 ordinary shares 
on trust for certain of the Group’s employees as detailed under the Company’s Admission Document.
(2) There has been no change in Directors’ shareholdings between 30 September 2016 and 15 March 2017.
Directors’ remuneration
Salary/fees
RM’000
Bonus
RM’000
Benefits
RM’000
Total
RM’000
2016 2015 2016 2015 2016 2015 2016 2015
Executive
Ivan Teh 567 534 94 63 68 56 729 653
Yuen Choong Lai 189 189 15 14 25 25 229 228
Non-Executive
John Croft 245 241 — — — — 245 241
Robin Taylor 184 181 — — — — 184 181
Calvin Chun 50 50 — — — — 50 50
Alan Lim 50 50 — — — — 50 50
Note:
(1)  There has been no increase in the remuneration awarded to the Directors and the year-on-year increase reported is due to the effects of foreign currency exchange rates, 
including against the Malaysian Ringgit.
Approved by the Board and signed on its behalf
Robin Taylor
Chairman of the Remuneration Committee
15 March 2017  Fusionex International Plc Annual report 2016
16
S F CORPORATE GOVERNANCE
CORPORATE GOVERNANCE REPORT
As an AIM‑ listed company, it is not mandatory for the Company 
to adopt the provisions of the 2014 UK Corporate Governance 
Code. The Board has adopted many of the best practices of the 
Corporate Governance Guidelines by the QCA, to the extent 
appropriate for a company of its nature and size, in recognition 
of the importance of sound corporate governance. The Group has 
an anti‑ bribery policy which fully complies with the UK Anti‑ Bribery 
Act 2010, and which is rigorously implemented.
Board of Directors and Board Committees
The Board of Directors consists of 2 Executive and 4 Non‑ Executive 
members that include a Non‑ Executive Chairman. The respective 
appointments of the Board members provide an appropriate 
balance of skills and experience for the Board to lead the Group 
in the interests of all shareholders.
The roles of the Chairman and the CEO are separate and clear. 
The Chairman’s role is to lead the Board in Board meetings and 
ensure the effectiveness of the Board. The CEO is responsible for 
achieving the Group’s long term strategic and financial objectives 
with the Group’s resources and in accordance with the risk 
appetite of the Group.
The independence of the 4 Non‑ Executive Directors has been 
reviewed and defined in accordance with the QCA Guidelines.
The Board is responsible to shareholders for providing leadership 
and direction to the Group. The role of the Board is to set the 
strategic direction and goals of the Group within its expertise and 
risk framework. The Board has a schedule of matters reserved 
for its decision which includes, but is not limited to, decisions on 
strategy and risk management; approval of financial budgets; 
major capital expenditure, material acquisitions and disposals; 
the interim and annual results; and the interim and final dividend 
recommendations. The Board Committees that have been 
established to assume some of the responsibilities of the Board 
with clearly defined terms of reference are the Audit, Nomination, 
Remuneration and Compliance Committees.
The Board has had 4 Board meetings for the financial year ended 
30 September 2016, and for the period Board meetings have been 
conducted by the Company. Formal agendas and reports are 
provided to the Board for the Board meetings and all Directors 
are properly briefed on the matters to be discussed and 
deliberated. All Directors, in carrying out their duties as members 
of the Board, are able to obtain further advice and information 
from within the Company or from independent professional 
advisers. The Company maintains an appropriate directors’ and 
officers’ insurance policy cover in respect of any legal actions 
against the Directors.
The performance of the Board is currently assessed by the Chairman 
with respect to the various operations of the Board that include, 
among others, the appropriate skill level of the members; the 
conduct of Board meetings and the decisions achieved; the guidance 
with regard to the Group’s strategy and objectives; and the 
effectiveness of the 4 standing Board Committees in carrying out 
their responsibilities in accordance with the set terms of reference.
Set out below is the table of Board meetings and Audit, 
Remuneration and Nomination Committee meetings held by the 
Company for the financial year ended on 30 September 2016, 
showing the attendance of each Director:
Board 
meetings
Audit 
Committee 
meetings
Remuneration 
Committee 
meetings
Nomination 
Committee 
meetings
Executive 
Directors
Ivan Teh 4/4 — — —
Yuen Choong Lai 4/4 — — 2/2
Non-Executive 
Directors
John Croft 4/4 — 2/2 2/2
Robin Taylor 4/4 3/3 2/2 —
Calvin Chun 4/4 3/3 — —
Alan Lim 4/4 3/3 2/2 2/2
Board Committees
The Board has established 4 Committees with clearly defined 
terms of reference and detailed below are the members of the 
Committees and their duties and responsibilities.
Audit Committee
The Chairman of the Audit Committee is Calvin Chun. The other 
members of the Committee are Robin Taylor and Alan Lim. The 
members have relevant financial, regulatory and risk management 
experience. The Committee is expected to meet at least twice a year.
The main responsibilities of the Audit Committee are detailed below:
 » Ensure the proper reporting and monitoring of the financial 
performance of the Company. This includes reviews of the 
annual and interim accounts, results announcements to ensure 
compliance with the regulatory rules and procedures, and 
approved accounting standards and policies, before 
recommending the same to the Board for their approval.
 » Monitor and review the effectiveness of the Group’s internal 
control and risk management systems, taking into account 
the practicality of measures introduced to the extent 
appropriate for a company of its nature and size.
 » Monitor and review the effectiveness of the external audit 
processes and plans with the external auditor.
 » Review and assess the independence and effectiveness of the 
external auditor and the terms of its engagement, including 
other non‑ audit services provided by the external auditor.
 » Review and assess the material transactions of the Company.
The Audit Committee meets with the external auditor without the 
Executive Directors being present at least once a year.
In the year under review, 3 meetings had been scheduled to coincide 
with the period for the announcement of the Company’s annual and 
interim results and the audit planning cycle of the Company. Fusionex International Plc Annual report 2016
17
Remuneration Committee
Robin Taylor is the Chairman of the Remuneration Committee and 
its other members are John Croft and Alan Lim. For the period 
under review, the Committee met 2 times to discuss remuneration 
best practices and policies for the Company.
The Remuneration Committee has responsibility for determining 
the Group’s policy on the remuneration of Executive Directors, 
including pension rights and compensation payments.
The full details of the work and the remuneration policy of the 
Committee is set out in the Remuneration Committee Report.
Nomination Committee
The Nomination Committee is chaired by Alan Lim, with John Croft 
and Yuen Choong Lai as the other members of the Committee.
The Committee is responsible for the selection and appointment 
of Directors and the regular review of the structure, size and 
composition of the Board in relation to the requisite skills, 
knowledge and experience of the Board. The Committee has met 
twice in the year.
Compliance Committee
The primary responsibilities of the Compliance Committee are to 
ensure compliance with the AIM Rules, in particular concerning 
disclosure of information and to manage communications with 
the Company’s NOMAD and the financial markets. As the 
Committee works closely with the Board, the functions of the 
Committee are carried out in conjunction with Board meetings. 
The Compliance Committee is chaired by Yuen Choong Lai and 
the other members are John Croft and Alan Lim.
Investor relations
Meetings with the analysts and institutional shareholders 
of  the  Company following the interim and annual results 
announcements and on an as‑ needed basis are attended by the 
CEO and the Chief Financial Officer to update the shareholders 
on  the progress of the Group in terms of its business, 
financial  performance and strategic direction. The annual 
report  and  accounts is published on the Company’s 
website, www.fusionex-international.com, and can be accessed 
by shareholders.
Internal control and risk management 
The Board is responsible for the Group’s system of internal control 
(‘Systems”). The Systems can only provide reasonable but not 
absolute assurance against material misstatements or losses as 
the Systems are put in place to manage and minimise the risks but 
not to eliminate them.
With the active involvement of the Executive Directors of the 
Company in the daily operations and management of the Group, 
and with regular meetings with staff, business risks are identified 
and appropriate Systems implemented to manage the risks. The 
effectiveness of the Systems are reviewed and updated periodically 
by the Principal Management Office (PMO).
The Group’s internal financial control procedures and monitoring 
systems are in place which include:
 » financial policies and approval procedures with proper 
authorisation levels and segregation of duties for 
financial management;
 » maintenance of proper records for the production of accurate 
and timely financial management information;
 » a detailed periodical financial reporting system that reports 
on operating results, cash flow, assets and liabilities with 
comparisons against budgets;
 » reporting on any non-compliance with internal financial 
controls and procedures; and
 » a review by the Audit Committee of the Report issued by the 
external auditor.
The Audit Committee, on behalf of the Board, reviews reports 
from the external auditor together with management’s response 
regarding proposed actions.
The Group has quality assurance processes in place for the 
development of software and delivery of software products to 
its customers as evidenced by the Group’s certification and 
registration for ISO 9001 – Quality Management, CMMI Level 3 and 
ISO 27001:2013. S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
18
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF FUSIONEX INTERNATIONAL PLC
We have audited the financial statements of Fusionex International 
Plc for the year ended 30 September 2016, which comprise the 
Consolidated Statement of Comprehensive Income, Consolidated 
Statement of Financial Position, Consolidated Statement of Cash 
Flows, Consolidated Statement of Changes in Equity and their 
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 auditor’s 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 auditor
As explained more fully in the Directors’ Report, 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 Ethical Standards 
for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or error. This includes 
an assessment of: whether the accounting policies are appropriate 
to the Company’s circumstances and have been consistently 
applied and adequately disclosed; the  reasonableness of 
significant accounting estimates made by the Directors; and the 
overall presentation of the financial statements.
In addition, we read all the information in the Directors’ Report 
and any other surround information to identify material 
inconsistencies with the audited financial statements and to 
identify any information that is apparently materially incorrect 
based on, or materially inconsistent with, the knowledge acquired 
by us in the course of performing the audit. If we become aware 
of any apparent material misstatements or inconsistencies we 
consider the implications for our report.
Opinion
In our opinion: 
 » the financial statements give a true and fair view of the state 
of the Group’s affairs as at 30 September 2016 and of the 
Group’s profit for the year then ended;
 » the financial statements have been properly prepared in 
accordance with IFRS as adopted by the European Union; and 
 » the financial statements have been prepared in accordance 
with the requirements of the Companies (Jersey) Law 1991.
Matters on which we are required to report by exception 
We have nothing to report to you 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 by the parent 
company; or 
 » proper returns adequate for our audit have not been 
received from branches not visited by us; or
 » the parent company financial statements are not in 
agreement with the accounting records and returns; or
 » we have not received all the information and explanations 
we require for our audit.
Leo Malkin (Senior Statutory Auditor)
For and on behalf of
Crowe Clark Whitehill LLP
Statutory Auditor
St Bride’s House
10 Salisbury Square
London EC4Y 8EH
15 March 2017  Fusionex International Plc Annual report 2016
19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2016
Note
2016
RM
2015
RM
Assets
Non-current assets
Property, plant and equipment 4 53,313,309 38,031,429
Goodwill on consolidation 5 549,572 549,572
Intangible assets 6 52,813,633 34,192,186
Deferred tax assets 7 740,826 831,440
107,417,340 73,604,627
Current assets
Trade receivables 8 20,122,668 28,522,560
Other receivables, deposits and prepayments 9 8,180,990 4,950,692
Amounts owing by contract customers 10 1,368,614 2,706,372
Tax recoverable 1,140,261 232,244
Cash and cash equivalents 11 94,183,616 57,727,636
124,996,149 94,139,504
Total assets 232,413,489 167,744,131
Equity and liabilities 
Stated capital 12 159,494,595 71,457,058
Merger reserves 13(a) (17,668,186) (17,668,186)
Foreign exchange translation reserve 13(b) (9,776,995) 8,194,821
Retained profits 62,154,158 66,688,490
Total equity attributable to owners 194,203,572 128,672,183
Non-current liabilities 
Long term borrowings 14 18,584,739 19,445,684
Deferred tax liabilities 17 8,732,128 6,218,400
27,316,867 25,664,084
Current liabilities 
Other payables and accruals 18 9,828,114 12,017,157
Amounts owing to contract customers 10 39,556 —
Short term borrowings 19 864,848 819,454
Provision for taxation 160,532 571,253
10,893,050 13,407,864
Total liabilities 38,209,917 39,071,948
Total equity and liabilities 232,413,489 167,744,131
As approved and authorised for issue by the Board of Directors on 15 March 2017 and signed on its behalf by:
Yuen Choong Lai
Director S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
20
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Note
2016
RM
2015
RM
Revenue 20 94,623,781 77,044,316
Cost of sales (20,580,053) (18,191,260)
Gross profit 74,043,728 58,853,056
Other income 27 3,010,747 4,893,271
77,054,475 63,746,327
Administrative and other operating expenses (72,439,992) (35,333,864)
Finance costs (62,989) (41,372)
Profit before taxation 21 4,551,494 28,371,091
Income tax expense 22 (3,142,872) (3,423,964)
Profit after taxation 1,408,622 24,947,127
Other comprehensive (expense)/income (item that may or will be reclassified 
to profit or loss):
Exchange (losses)/gains arising on translation of foreign operations (17,971,816) 7,292,670
Total comprehensive (expense)/income for the financial year (16,563,194) 32,239,797
Profit after tax attributable to:
Owners of the Group 1,408,622 24,947,127
1,408,622 24,947,127
Total comprehensive (expense)/income attributable to:
Owners of the Group (16,563,194) 32,239,797
(16,563,194) 32,239,797
Earnings per share attributable to owners of the Group
Basic, sen 23 2.99 58.02
Diluted, sen 23 2.99 58.02 Fusionex International Plc Annual report 2016
21
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Note
Stated 
capital 
RM
Merger 
reserve
RM
Foreign
exchange
translation
reserve
RM
Retained 
profits
RM
Attributable 
to owners of
the Group 
RM
Total equity 
RM
Balance at 1 October 2014 71,457,058 (17,668,186) 902,151 46,701,994 101,393,017 101,393,017
Profit after taxation — — — 24,947,127 24,947,127 24,947,127
Other comprehensive income, 
net of tax
– Foreign currency translation 
differences for foreign operations — — 7,292,670 — 7,292,670 7,292,670
Total comprehensive income for 
the financial year — — 7,292,670 24,947,127 32,239,797 32,239,797
Dividend 24 — — — (4,960,631) (4,960,631) (4,960,631)
Balance at 30 September 2015 71,457,058 (17,668,186) 8,194,821 66,688,490 128,672,183 128,672,183
Note
Stated 
capital 
RM
Merger 
reserve
RM
Foreign
exchange
translation
reserve
RM
Retained 
profits
RM
Attributable 
to owners of
the Group 
RM
Total equity 
RM
Balance at 1 October 2015 71,457,058 (17,668,186) 8,194,821 66,688,490 128,672,183 128,672,183
Profit after taxation — — — 1,408,622 1,408,622 1,408,622
Other comprehensive expense, 
net of tax
– Foreign currency translation 
differences for foreign operations — — (17,971,816) — (17,971,816) (17,971,816)
Total comprehensive expense for 
the financial year — — (17,971,816) 1,408,622 (16,563,194) (16,563,194)
Issuance of shares 88,037,537 — — — 88,037,537 88,037,537
Dividend 24 — — — (5,942,954) (5,942,954) (5,942,954)
Balance at 30 September 2016 159,494,595 (17,668,186) (9,776,995) 62,154,158 194,203,572 194,203,572 S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
22
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Note
2016
RM
2015
RM
Cash flows from operating activities
Profit before taxation 4,551,494 28,371,091
Adjustments for:
– amortisation of intangible assets 6 7,716,485 4,574,604
– depreciation of property, plant and equipment 4 2,732,285 2,245,115
– impairment loss on trade receivables 656,596 —
– interest expenses 62,989 41,372
– interest income 27 (356,927) (268,283)
– property, plant and equipment written off 4 22,505 3,307
– gain on disposal of fixed assets 27 (574) (2,036,717)
Operating profit before working capital changes 15,384,853 32,930,489
Decrease/(increase) in trade and other receivables 4,512,998 (24,264,042)
(Decrease)/increase in other payables and accruals (2,189,043) 4,394,001
Decrease in amount owing from contract customers 1,377,314 10,757
Cash flows from operating activities 19,086,122 13,071,205
Interest paid (62,989) (41,372)
Interest received 356,927 268,283
Income tax paid (1,880,605) (1,651,465)
Net cash generated from operating activities 17,499,455 11,646,651
Cash flows from investing activities
Purchase of property, plant and equipment (18,093,638) (5,032,700)
Proceeds from disposal of property, plant and equipment 48,634 5,427,597
Development costs on intangible assets (26,448,903) (16,499,763)
Net cash used in investing activities (44,493,907) (16,104,866)
Cash flows from financing activities
Dividends paid 24 (5,942,954) (4,960,631)
Repayment of hire purchase payables (82,427) (78,792)
Repayment of term loans (733,124) (3,214,210)
Proceeds from issuance of share capital 88,037,537 —
Net cash generated from/(used in) financing activities 81,279,032 (8,253,633)
Net increase/(decrease) in cash and cash equivalents 54,284,580 (12,711,848)
Cash and cash equivalents at beginning of the financial year 57,727,636 64,021,296
Effects of foreign exchange rate changes, net (17,828,600) 6,418,188
Cash and cash equivalents at end of the financial year 11 94,183,616 57,727,636 Fusionex International Plc Annual report 2016
23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
1. General information
(a) Basis of preparation 
Fusionex International Plc was incorporated in Jersey on 1 October 2012 with registration number 111533. The registered office of 
the Company is 12 Castle Street, St Helier, Jersey, Channel Islands JE2 3RT. 
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), 
issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU), including related interpretations 
issued by the International Financial Reporting Interpretations Committee (IFRIC). 
The individual financial information of each entity is measured and presented in the currency of the primary economic environment 
in which the entity operates (its functional currency). The consolidated financial statements of the Group are presented in 
Malaysian Ringgit (RM), which is the presentation currency for the consolidated financial statements. The functional currency of each 
individual entity is the local currency of each individual entity. The primary economic environment for the Group is Malaysia.
The consolidated financial statements have been prepared on the historical cost basis. The principal accounting policies adopted, 
which have been applied consistently in the financial year, are outlined below.
(b) New standards, amendments to and interpretations of published standards not yet effective
A number of new standards and amendments to standards and interpretations have been issued but are not yet effective and in 
some cases have not yet been adopted by the EU.
The Directors do not expect that the adoption of these standards will have a material impact on the financial statements of the Group 
in future periods, except that IFRS 9 will impact both the measurement and disclosures of financial instruments and IFRS 15 may have 
an impact on revenue recognition and related disclosures. At this point it is not practicable for the directors to provide a reasonable 
estimate of the effect of IFRS 9 and IFRS 15 as their detailed review of these standards is still ongoing.
2. Principal activities of subsidiaries
The principal activities of the subsidiaries are as follows:
Name
Place of incorporation/
establishment Principal activities
Issued and 
paid-up/
registered capital
Effective 
interests 
%
Fusionex Corp. Sdn. Bhd. Malaysia IT solutions, software development and 
consultancy services
RM500,000 100
Adv Fusionex Sdn. Bhd. Malaysia Software development and other services RM500,000 100
Fusionex Solutions Inc. Sdn. Bhd.
(1)
Malaysia IT solutions, management and consultancy services RM100,000 100
Fusionex Pte. Ltd.
(1)
Singapore IT solutions, management and consultancy services SGD200,000 100
ADV Fusionex Limited
(1)
United Kingdom Development and commercialisation of 
software solutions
GBP1,000 100
Fusionex Limited
(2)
United Kingdom Software development and other services GBP100 100
Fusionex Co., Ltd.
(1)
Thailand IT solutions, software development and 
consultancy services
THB3,000,000 100
FXA Holdings Sdn. Bhd.
(2)
Malaysia Investment holding RM2 100
Fusionex (Macau) Limited
(3)
Macau Software development and other services MOP25,000 100
Fusionex Limited Hong Kong Software development and other services HKD10,000 100
Fusionex Innovations Sdn. Bhd.
(2)
Malaysia IT solutions, management and consultancy services RM2 100
Fusionex, Inc.
(2)
Philippines Software development and other services PHP9,663,987 100
Notes:
(1)  Interest held by Fusionex Corp. Sdn. Bhd.
(2)  Interest held by Adv Fusionex Sdn. Bhd.
(3)  Interest held by Fusionex Limited (Hong Kong).
RM:  Malaysian Ringgit.
SGD:  Singapore Dollar.
GBP:  Great British Pound.
THB:  Thai Baht.
MOP:  Macau Pataca.
HKD:  Hong Kong Dollar.
PHP:  Philippine Peso. S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
24
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
3. Summary of significant accounting policies 
(a) Critical accounting estimates and judgments
Estimates and judgments are continually evaluated by the Directors and management and are based on historical experience and 
other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
The key assumptions concerning the future, and other key sources of estimation including uncertainty at the statement of financial 
position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the 
next financial period are as stated below.
(i) Intangible assets
Amortisation and impairment
Development costs are amortised over 5 years. Useful lives are based on management’s estimates of the period that the assets will 
generate revenue, with such periods being periodically reviewed for continued appropriateness.
The Group assesses the impairment of intangible assets subject to amortisation whenever events or changes in circumstances 
indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impairment review include 
the following:
 » significant underperformance relative to historical or projected future operating results;
 » significant changes in the manner of the use of the acquired assets or the strategy for the overall business; and
 » significant negative industry or economic trends.
The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application 
of the Group’s accounting estimates in relation to intangible assets affect the amounts reported in the financial statements, especially 
the estimates of the expected useful economic lives and the carrying values of those assets. If business conditions were different, 
or if different assumptions were used in the application of this and other accounting estimates, it is likely that materially different 
amounts could be reported in the Group’s financial statements.
The net book value of intangible assets at 30 September 2016 is determined to be RM52.8 million (30 September 2015: RM34.2 million).
Furthermore, should the development costs be amortised over 3 years instead of 5 years, a further charge of RM5.1 million would 
be recognised in the year ended 30 September 2016 (30 September 2015: RM3.1 million) and the net book value would become 
RM47.7 million as at 30 September 2016 (30 September 2015: RM31.1 million).
Other judgments that affect the application of the Group’s accounting policies and disclosures, and have a significant risk of causing 
a material adjustment to the carrying amounts of assets, liabilities, income and expenses are discussed below:
(ii) Impairment of trade and other receivables
An impairment loss is recognised when there is objective evidence that a financial asset is impaired. Management specifically reviews 
its loans and receivables and financial assets, and analyses historical bad debts, customer concentrations, customer creditworthiness, 
current economic trends and changes in the customer payment terms when making a judgment to evaluate the adequacy of the 
allowance for impairment losses. Where there is objective evidence of impairment, the amount and timing of future cash flows are 
estimated based on historical loss experience for assets with similar credit risk characteristics. If the expectation is different from 
the estimation, such difference will impact the carrying value of receivables.
(iii) Depreciation of property, plant and equipment
The estimates for the residual values, useful lives and related depreciation charges for the property, plant and equipment are based 
on commercial factors which could change significantly as a result of technical innovations and competitors’ actions in response to 
the market conditions.
The Group anticipates that the residual values of its property, plant and equipment will be insignificant. As a result, residual values 
are not being taken into consideration for the computation of the depreciable amount. 
Changes in the expected level of usage and technological development could impact the economic useful lives and the residual values 
of these assets; therefore, future depreciation charges could be revised.
The carrying amount of the Group’s property, plant and equipment at the reporting date is disclosed in Note 4. A 5% variance in the 
depreciation rate of these assets is immaterial to the Group’s profit for the year.
(iv) Income taxes
There are certain transactions and computations for which the ultimate tax determination may be different from the initial estimate. 
The Group recognises tax assets/liabilities based on their understanding of the prevailing tax laws and estimates of whether such 
taxes will be recovered in the ordinary course of business. Where the final outcome of these matters is different from the amounts 
that were initially recognised, such difference will impact the income tax and deferred tax provisions in the year in which such 
determination is made.  Fusionex International Plc Annual report 2016
25
3. Summary of significant accounting policies continued
(b) Basis of consolidation
Except for the transactions described below, the consolidated financial statements include the financial statements of the Company 
and its subsidiaries made up to 30 September each year. 
IFRS does not provide specific guidance on accounting for common control transactions. Therefore, the Directors have selected an 
accounting policy using the “hierarchy” described in paragraphs 10–12 of IAS 8 – Accounting Policies, Changes in Accounting Estimates 
and Errors. The hierarchy permits the consideration of pronouncements of other standard-setting bodies. The Directors have adopted 
a policy of accounting for business combinations between entities under common control in accordance with guidance under US 
GAAP 805-10-15. This guidance produces a result that is similar to pooling. The consolidated accounts have therefore been prepared 
as if each of the entities within the Group at 30 September 2012 had been held by Fusionex International Plc from the earlier 
of 1 October 2011 or the date of incorporation. The difference between the carrying value of the investment and the nominal value 
of the shares of subsidiaries upon consolidation under the merger accounting principles is disclosed in note 13(a).
A subsidiary is defined as a company in which the parent company has, directly or indirectly, the power to exercise control over its 
financial and operating policies so as to obtain benefits from its activities.
The consolidated financial statements present the results of the Company and its subsidiaries (“the Group”) as if they formed a single 
entity. Intercompany transactions and balances between Group companies are therefore eliminated in full. 
(i) 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 acquiree, 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.
(c) Intangible assets
(i) Goodwill
Goodwill represents 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.
(ii) Research and development expenditure
Research expenditure is recognised as an expense when it is incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and impairment losses, if any. Development 
expenditure initially recognised as an expense is not recognised as an asset in the subsequent year.
The development expenditure is amortised on a straight line basis over a period of 5 years when the products are ready for sale or 
use. In the event that the expected future economic benefits are no longer likely to be recovered, the development expenditure is 
written down to its recoverable amount. The amortisation charged is included under cost of sales.
Whereas development expenditure is separately identified and capitalised in accordance with the accounting policy described above, 
research costs are not separately identified as they are integral to the overall activities of the Group.
(d) Functional and foreign currencies
(i) Transactions and balances
Transactions in foreign currencies are converted into the respective functional currencies on initial recognition, using the exchange 
rates approximating those ruling at the transaction dates. Monetary assets and liabilities at the end of the reporting period are 
translated at the rates ruling as of that date. Non-monetary assets and liabilities are translated using exchange rates that existed 
when the values were determined. All exchange differences are recognised in profit or loss.
(ii) 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.
Goodwill and fair value adjustments arising from the acquisition of foreign operations are treated as assets and liabilities of the 
foreign operations and are recorded in the functional currency of the foreign operations and translated at the closing rate at the end 
of the reporting period. S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
26
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
3. Summary of significant accounting policies continued
(e) Financial instruments
Financial instruments are recognised in the Consolidated Statement of Financial Position when the Group has become a party to the 
contractual provisions of the instruments.
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, 
dividends and gains and losses relating to a financial instrument classified as a liability are reported as an expense or income. 
Distributions to holders of financial instruments classified as equity are charged directly to equity.
Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis 
or to realise the asset and settle the liability simultaneously.
A financial instrument is recognised initially at its fair value plus, in the case of a financial instrument not at fair value through profit 
or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.
Financial instruments recognised in the Consolidated Statement of Financial Position are disclosed in the individual policy statement 
associated with each item.
(i) Financial assets 
On initial recognition, financial assets are classified as either financial assets at fair value through profit or loss, held-to-maturity 
investments, loans and receivables, or available-for-sale financial assets, as appropriate. 
Loans and receivables 
Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified 
as loans and receivables financial assets. Loans and receivables are measured at amortised cost using the effective interest method, 
less any impairment loss. Interest income is recognised by applying the effective interest rate, except for short term receivables when 
the recognition of interest would be immaterial.
(ii) Financial liabilities
All financial liabilities are initially recognised at fair value plus directly attributable transaction costs and are subsequently measured 
at amortised cost using the effective interest method. 
(iii) Equity instruments
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in 
equity as a deduction, net of tax, from proceeds.
Dividends on ordinary shares are recognised as liabilities when approved for appropriation.
(f) Property, plant and equipment 
Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses, if any. 
Depreciation is calculated using the straight line method to write off the depreciable amount of the assets over their estimated useful 
lives. Depreciation of an asset does not cease when the asset becomes idle or is retired from active use unless the asset is fully 
depreciated. The principal annual rates used for this purpose are:
Computers  20%
Furniture and fittings 10%
Leasehold improvements 20%
Leasehold office premises 2%
Motor vehicles  20%
Office equipment  10%
The depreciation method, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting 
year to ensure that the amounts, method and periods of depreciation are consistent with previous estimates and the expected 
pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from 
its use. Any gain or loss arising from derecognition of the asset is recognised in profit or loss.
Work in progress represents assets under construction which are not ready for commercial use at the end of the reporting period. 
Work in progress is stated at cost, and is transferred to the relevant category of assets and depreciated accordingly when the assets 
are completed and ready for commercial use.
Work in progress includes direct cost, related expenditure and interest cost on borrowings taken to finance the acquisition of the 
assets to the date that the assets are completed and put into use. Fusionex International Plc Annual report 2016
27
3. Summary of significant accounting policies continued
(g) Impairment 
(i) Impairment of financial assets
All financial assets (other than those categorised at fair value through profit or loss) are assessed at the end of each reporting year 
whether there is any objective evidence of impairment as a result of 1 or more events having an impact on the estimated future cash 
flows of the asset. 
An impairment loss in respect of loans and receivables is recognised in profit or loss and is measured as the difference between the 
asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective 
interest rate.
In a subsequent period, the amount of impairment loss decreases and the decrease can be related objectively to an event occurring 
after the impairment was recognised. The previously recognised impairment loss is reversed through profit or loss to the extent that 
the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have 
been had the impairment not been recognised. 
(ii) Impairment of non-financial assets
The carrying values of assets, other than those to which IAS 36 – Impairment of Assets does not apply, are reviewed at the end of 
each reporting year for impairment when there is an indication that the assets might be impaired. Impairment is measured by 
comparing the carrying values of the assets with their recoverable amounts. The recoverable amounts of the assets are the higher 
of the assets’ fair value less costs to sell and their value in use, which is measured by reference to discounted future cash flow.
An impairment loss is recognised in profit or loss immediately.
In respect of assets other than goodwill, and when there is a change in the estimates used to determine the recoverable amount, a 
subsequent increase in the recoverable amount of an asset is treated as a reversal of the previous impairment loss and is recognised 
to the extent of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no 
impairment loss been recognised. The reversal is recognised in profit or loss immediately. 
(h) Assets under hire purchase
Assets acquired under hire purchase are capitalised in the financial statements and are depreciated in accordance with the policy 
set out in note 3(f) above. Each hire purchase payment is allocated between the liability and finance charges so as to achieve a constant 
rate on the finance balance outstanding. Finance charges are recognised in profit or loss over the period of the respective hire 
purchase agreements.
Hire purchases are classified as finance leases as the terms of the lease transfer substantially all of the risk and rewards of ownership 
to the lessee.
(i) Income tax
Income tax for the year comprises current and deferred tax.
Current tax is the expected amount of income tax payable in respect of the taxable profit for the year and is measured using the tax 
rates that have been enacted or substantively enacted at the end of the reporting period.
Deferred 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 financial statements. 
Deferred tax liabilities are recognised for all taxable temporary differences other than those that arise from goodwill or excess of 
the acquirer’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities over the business 
combination costs or from the initial recognition of an asset or liability in a transaction which is not a business combination and, at 
the time of the transaction, affects neither accounting profit nor taxable profit.
Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent 
that it is probable that future taxable profits will be available, against which the deductible temporary differences, unused tax losses 
and unused tax credits can be utilised. The carrying amounts of deferred tax assets are reviewed at the end of each reporting period 
and reduced to the extent that it is no longer probable that sufficient future taxable profits will be available to allow all or part of the 
deferred tax assets to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised 
or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the end of the reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax 
liabilities and when the deferred income taxes relate to the same taxation authority.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised 
in correlation to the underlying transactions either in other comprehensive income or directly in equity, and deferred tax arising 
from a business combination is included in the resulting goodwill or excess of the acquirer’s interest in the net fair value of the 
acquiree’s identifiable assets, liabilities and contingent liabilities over the business combination costs.  S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
28
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
3. Summary of significant accounting policies continued
(j) Cash and cash equivalents
Cash and cash equivalents comprise bank balances, deposits with financial institutions and short term, highly liquid investments 
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(k) Employee benefits
(i) Short term benefits
Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary benefits are accrued in the period in which the associated 
services are rendered by employees of the Group.
(ii) Defined contribution plans
The Group’s contributions to defined contribution plans are recognised in profit or loss in the period to which they relate. Once the 
contributions have been paid, the Group has no further liability in respect of the defined contribution plans. 
(l) Contracts 
Where the outcome of a contract can be reliably estimated, contract revenue and contract costs are recognised as revenue and 
expenses, respectively, by using the stage of completion method. The stage of completion is measured by reference to the proportion 
of cost of work accepted by customers to date to the estimated total contract cost.
Where the outcome of a contract cannot be reliably estimated, contract revenue is recognised to the extent of contract costs incurred 
that are likely to be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
Contract revenue comprises the initial amount of revenue agreed in the contract and variations in contract work to the extent that 
it is probable that they will result in revenue and they are capable of being reliably measured.
When the total of costs incurred on contracts plus recognised profits (less recognised losses) exceeds progress billings, the balance 
is classified as amount due from customers on contracts. When progress billings exceed costs incurred plus recognised profits (less 
recognised losses), the balance is classified as amount due to customers on contracts. 
(m) Provisions and contingent assets
Provisions are recognised when the Group has a present or constructive obligation as a result of past events; when it is probable that 
an outflow of resources embodying economic benefits will be required to settle the obligation; and when a reliable estimate of the 
amount can be made. Provisions are reviewed at the end of each financial reporting period and adjusted to reflect the current best 
estimate. Where the effect of the time value of money is material, the provision is the present value of the estimated expenditure 
required to settle the obligation.
A contingent asset is a probable asset that arises from past events and whose existence will be confirmed only by the occurrence or 
non-occurrence of 1 or more uncertain events not wholly within the control of the Group. The Group does not recognise contingent 
assets but discloses their existence where inflows of economic benefits are probable, but not virtually certain.
(n) Borrowing costs
Borrowing costs directly attributable to the acquisition and construction of property, plant and equipment are capitalised as part of 
the cost of those assets until such time as the assets are ready for their intended use or sale. Capitalisation of borrowing costs is 
suspended during extended periods in which active development is interrupted.
All other borrowing costs are recognised in profit or loss as expenses in the period in which they were incurred.
(o) Revenue and other income
(i) Sale of goods
Revenue is recognised upon delivery of goods and customers’ acceptance and, where applicable, net of returns and trade discounts.
(ii) Services
Revenue is recognised on the percentage of completion method as disclosed in note 3(l) above. 
(iii) Maintenance and enhancement
Revenue on maintenance and enhancement is recognised over the contractual period or performance of services.
(iv) Dividend income
Dividend income is recognised when the right to receive payment is established.
(v) Interest income
Interest income is recognised as other income on an accrual basis.
Invoices raised in advance of the delivery of goods and provision of services to customers are recorded on the balance sheet as 
deferred income, within current liabilities.
(p) Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. 
The chief operating decision maker has been identified as the Executive Directors.
The Executive Directors monitor the operating results of their business units separately for the purpose of making decisions about 
resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured 
consistently with profit or loss in the consolidated financial statements. Fusionex International Plc Annual report 2016
29
4. Property, plant and equipment
Computers
RM
Furniture
and
fittings
RM
Motor
vehicles
RM
Office 
equipment
RM
Leasehold
improvements
RM
Leasehold 
office 
premises
RM
Work in 
progress
RM
Total
RM
Cost
At 1 October 2014 3,128,054 3,039,490 1,120,560 674,868 2,549,385 27,371,456 — 37,883,813
Additions 1,940,332 28,956 — 44,833 55,441 — 2,963,138 5,032,700
Written off (238,854) — — (1,434) (39,104) — — (279,392)
Translation differences 18,026 13,505 — 12,672 29,090 — — 73,293
At 30 September 2015 4,847,558 3,081,951 1,120,560 730,939 2,594,812 27,371,456 2,963,138 42,710,414
Additions 13,917,991 29,900 — 342,023 — — 3,803,724 18,093,638
Disposal (55,527) (31,233) — — — — — (86,760)
Written off (152,822) (27,508) — (699) — — — (181,029)
Translation differences (4,081) (1,942) — (1,888) (4,078) — — (11,989)
At 30 September 2016 18,553,119 3,051,168 1,120,560 1,070,375 2,590,734 27,371,456 6,766,862 60,524,274
Accumulated depreciation
At 1 October 2014 1,065,647 204,749 619,928 88,624 437,571 273,715 — 2,690,234
Charge for the year 691,211 306,764 149,923 70,430 479,358 547,429 — 2,245,115
Written off (236,312) — — (669) (39,104) — — (276,085)
Translation differences 4,168 2,743 — 2,831 9,979 — — 19,721
At 30 September 2015 1,524,714 514,256 769,851 161,216 887,804 821,144 — 4,678,985
Charge for the year 1,166,362 306,217 149,923 74,030 488,324 547,429 — 2,732,285
Disposal (20,164) (18,536) — — — — — (38,700)
Written off (133,978) (24,348) — (198) — — — (158,524)
Translation differences (1,381) (295) — (295) (1,110) — — (3,081)
At 30 September 2016 2,535,553 777,294 919,774 234,753 1,375,018 1,368,573 — 7,210,965
Net book value
At 30 September 2015 3,322,844 2,567,695 350,709 569,723 1,707,008 26,550,312 2,963,138 38,031,429
At 30 September 2016 16,017,566 2,273,874 200,786 835,622 1,215,716 26,002,883 6,766,862 53,313,309
Included in the property, plant and equipment of the Group at the end of the reporting period are the following assets acquired 
under hire purchase terms.
2016 
RM
2015 
RM
Motor vehicles 143,324 269,470
The office premises have been pledged to financial institutions as security for banking facilities of the Group as disclosed in note 16 
to the financial statements. S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
30
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
5. Goodwill on consolidation
2016 
RM
2015 
RM
At cost 558,887 558,887
Less: impairment losses (9,315) (9,315)
Carrying value 549,572 549,572
During the financial year, the Group assessed the recoverable amount of the goodwill and determined that no additional impairment 
is required. 
The recoverable amount of a cash generating unit is determined based on value-in-use calculations using cash flow projections based 
on financial budgets approved by management covering a period of two years. The key assumptions used for value-in-use calculations are:
Average growth rate Historical rate
Profit margin  22%
Discount rate  6%
Management determined the budgeted gross margin based on past and expected future performances. The growth rate used 
is based on historical rate. The discount rate used was pre-tax and was estimated based on the industry weighted average cost 
of capital.
6. Intangible assets
2016 
RM
2015 
RM
Development expenditure
At cost:
At 1 October – brought forward 43,667,152 26,237,745
Addition 26,448,903 16,499,763
Translation differences (138,342) 929,644
69,977,713 43,667,152
Accumulated amortisation
At 1 October – brought forward (9,474,966) (4,662,078)
Amortisation charge (7,716,485) (4,574,604)
Translation differences 27,371 (238,284)
(17,164,080) (9,474,966)
At 30 September – net book value 52,813,633 34,192,186
The intangible assets form a consolidated platform (i.e. the Fusionex Data Management Platform) for the collection, management of 
data, data-warehousing, processing of data, as well as automation surrounding the analysis of insights gathered from data stored 
within the platform. 
The Data Management Platform is continuously enhanced to apply to new and emerging types of data and content.
On 30 September 2016, the carrying amount of ongoing development projects on which amortisation has not yet commenced was 
RM13,155,812 (2015: RM6,893,865). At 30 September 2016, the carrying amount of completed development projects on which 
amortisation is being charged was RM39,657,821 (2015: RM27,298,321).
7. Deferred tax assets
2016 
RM
2015 
RM
At 1 October – brought forward 831,440 441,954
Recognised in profit or loss (note 22) (67,275) 259,936
Translation differences (23,339) 129,550
At 30 September – carried forward 740,826 831,440
Deferred tax assets were attributable to the taxable temporary differences arising from tax credit. Fusionex International Plc Annual report 2016
31
8. Trade receivables
2016 
RM
2015 
RM
Trade receivables 20,779,264 28,522,560
Allowance for impairment losses (656,596) —
20,122,668 28,522,560
Allowance for impairment losses:
At 1 October – brought forward — —
Impairment losses recognised during the financial year (656,596) —
At 30 September – carried forward (656,596) —
The Group’s normal trade credit term is 30 to 90 days. Other credit terms are assessed and approved on a case-by-case basis.
9. Other receivables, deposits and prepayments
2016 
RM
2015 
RM
Sundry receivables 2,768,289 1,570,122
Deposits 802,956 871,935
Prepayments 4,609,745 2,508,635
8,180,990 4,950,692
10. Amount owing by/(to) contract customers
2016 
RM
2015 
RM
Cost incurred to date 863,013 3,908,489
Attributable profits 3,419,362 6,907,527
4,282,375 10,816,016
Progress billings (2,953,317) (8,109,644)
1,329,058 2,706,372
Represented by:
Amount owing to contract customers (39,556) —
Amount owing by contract customers 1,368,614 2,706,372
Amount of contract revenue recognised as revenue during the financial year (note 20) 6,830,982 6,161,592
Amount of contract costs recognised as expenses during the financial year 2,108,166 2,609,541
11. Cash and cash equivalents
For the purpose of the Consolidated Statement of Cash Flows, cash and cash equivalents comprises the following:
2016 
RM
2015 
RM
Short term investments 14,088 1,972,011
Fixed deposits with licensed banks (note 25) 21,874,585 5,376,125
Cash and bank balances 72,294,943 50,379,500
94,183,616 57,727,636 S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
32
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
12. Stated capital
Issued, called up and fully paid
No. of shares RM
As at 1 October 2015 43,000,000 71,457,058
Additions 4,300,000 88,037,537
As at 30 September 2016 47,300,000 159,494,595
The Company has an unlimited authorised share capital of ordinary shares of no par value.
On 15 October 2015, the Company announced a placing of 4,300,000 new ordinary shares at 325 pence per share to raise a total of 
GBP13.975 million. The new ordinary shares represent 10% of the existing share capital of the Company.
13(a). Merger reserves
The merger reserves arose from the difference between the carrying value of the investment and the nominal value of the shares of 
subsidiaries upon consolidation under the merger accounting principles.
13(b). Foreign exchange translation reserve
The foreign exchange translation reserves arose from the translation of the financial statements of foreign subsidiaries and are not 
distributable by way of dividends.
14. Long term borrowings
 
2016 
RM
2015
RM
Hire purchase payables (note 15) 29,476 115,538
Term loans (note 16) 18,555,263 19,330,146
18,584,739 19,445,684
15. Hire purchase payables
2016 
RM
2015 
RM
Minimum hire purchase payments:
– not later than 1 year 89,244 89,244
– later than 1 year and not later than 2 years 29,728 118,972
118,972 208,216
Less: future finance charges (3,433) (10,250)
Present value of hire purchase payables 115,539 197,966
Current portion (note 19):
– not later than 1 year 86,063 82,428
Non-current portion (note 14):
– later than 1 year and not later than 2 years 29,476 115,538
115,539 197,966 Fusionex International Plc Annual report 2016
33
16. Term loans
2016 
RM
2015 
RM
Current portion (note 19):
– not later than 1 year 778,785 737,026
Non-current portion (note 14):
– later than 1 year and not later than 2 years 814,120 771,268
– later than 2 years and not later than 5 years 2,670,810 2,535,544
– later than 5 years 15,070,333 16,023,334
18,555,263 19,330,146
19,334,048 20,067,172
Details of the repayment terms are as follows:
Amount outstanding
Term loan
Number of
instalments
Monthly
instalment
RM
 Date of
commencement
of repayment
2016
RM
2015
RM
1 240 68,110 1.10.2013 9,667,024 10,033,586
2 240 68,110 1.10.2013 9,667,024 10,033,586
19,334,048 20,067,172
The term loans 1 and 2 are secured by: 
(i) legal charges over the office premises of the Fusionex Group; and 
(ii) a guarantee of Adv Fusionex Sdn. Bhd.
17. Deferred tax liabilities
2016 
RM
2015 
RM
At 1 October – brought forward 6,218,400 3,421,090
Recognised in profit or loss (note 22) 2,513,728 2,797,310
At 30 September – carried forward 8,732,128 6,218,400
The deferred tax liabilities are attributable to the following:
2016 
RM
2015 
RM
Accelerated capital allowances 193,981 493,078
Software development expenditure 8,809,595 5,725,322
Payables (230,832) —
Receivables (40,616) —
8,732,128 6,218,400
Deferred tax assets were set off against deferred tax liabilities arising in the same tax jurisdiction.
18. Other payables and accruals
2016 
RM
2015 
RM
Deferred income 2,076,609 2,403,821
Sundry payables 1,791,007 2,878,715
Accruals 5,960,498 6,734,621
9,828,114 12,017,157 S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
34
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
19. Short term borrowings
2016 
RM
2015 
RM
Hire purchase payables (note 15) 86,063 82,428
Term loans (note 16) 778,785 737,026
864,848 819,454
20. Revenue
2016 
RM
2015 
RM
Products 83,849,773 68,025,654
Services 10,774,008 9,018,662
94,623,781 77,044,316
Included in the revenue of products and services of the Group are amounts of RM6,830,982 and RM6,161,592 relating to contract 
revenue for the financial years ended 30 September 2016 and 2015.
21. Profit before taxation
Profit before taxation is arrived at after charging/(crediting):
2016 
RM
2015 
RM
Allowance for impairment losses 656,596 —
Amortisation of intangible assets 7,716,485 4,574,604
Audit fees 444,959 401,909
Depreciation of property, plant and equipment 2,732,285 2,245,115
Directors’ remuneration 1,487,392 1,402,719
Interest expense:
– hire purchase 6,817 10,452
– term loans 56,172 30,920
Gain on foreign exchange (2,530,179) (2,441,014)
Staff costs:
– salaries, allowances and bonuses 21,953,744 16,158,924
– defined contribution plan 2,708,269 1,973,314
Rental of office 1,225,441 708,950
Rental of equipment — 4,378
Interest income (356,927) (268,283)
Fixed assets written off 22,505 3,307
Gain on disposal of fixed assets (574) (2,036,717)
Reconciliation of profit before taxation to earnings before interest, taxation, depreciation and amortisation (“EBITDA”):
2016 
RM
2015 
RM
Profit before taxation 4,551,494 28,371,091
Adjustments for:
Amortisation of intangible assets 7,716,485 4,574,604
Depreciation of property, plant and equipment 2,732,285 2,245,115
Impairment loss on trade receivables 656,596 —
Interest expenses 62,989 41,372
Interest income (356,927) (268,283)
EBITDA 15,362,922 34,963,899 Fusionex International Plc Annual report 2016
35
22. Income tax expense
2016 
RM
2015 
RM
Current tax expense
– for the financial year 782,571 1,223,378
– overprovision in the previous financial year (220,702) (336,788)
561,869 886,590
Deferred tax assets (note 7):
– over/(under) provision in the previous financial year 67,275 (259,936)
Deferred tax liabilities (note 17):
– for the financial year 2,513,728 3,004,165
– overprovision in the previous financial year — (206,855)
2,513,728 2,797,310
3,142,872 3,423,964
A reconciliation of income tax expense applicable to the profit before taxation at the statutory tax rate to the income tax expense at 
the effective tax rate of the Group is as follows:
2016 
RM
2015 
RM
Profit before taxation 4,551,494 28,371,091
Tax at the applicable statutory tax rate of 0% — —
Tax effects of:
– differences in tax rates 1,685,730 7,440,943
– non-deductible expenses 2,740,256 2,199,083
– income not subject to tax/tax relief (1,062,412) (5,412,483)
– deferred tax assets recognised on software development expenditure — (259,936)
Overprovision in the previous financial year:
– current tax (220,702) (336,788)
– deferred tax — (206,855)
Income tax expense for the financial year 3,142,872 3,423,964
23. Earnings per share
The calculation for earnings per share, based on the weighted average number of shares, is shown in the table below:
2016 
RM
2015 
RM
Profit after tax attributable to owners of the Group 1,408,622 24,947,127
Weighted average number of shares:
Basic 47,076,776 43,000,000
Diluted 47,076,776 43,000,000
Earnings per share:
Basic, sen 2.99 58.02
Diluted, sen 2.99 58.02 S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
36
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
24. Dividends
2016 
RM
2015 
RM
Interim dividend for 30 September 2016: RM0.138 per ordinary share 5,942,954 —
Interim dividend for 30 September 2015: RM0.115 per ordinary share — 4,960,631
5,942,954 4,960,631
25. Fixed deposits with licensed banks
The weighted average effective interest rates and the maturity periods of the fixed deposits at the end of reporting periods are 
as follows:
2016 2015 
Weighted average effective interest rates 0.53% 0.83%
Maturity periods 4–656 days 3–390 days
Included in the fixed deposits with licensed banks of the Group at the end of the reporting period was an amount of RM546,100 
(2015: RM601,800), which has been pledged to a licensed bank as security for banking facilities granted to the Group.
26. Related party disclosures
The Group carried out the following transactions with related parties during the financial years 2015 and 2016.
Key management personnel
Short term employee benefits
2016 
RM’000
2015 
RM’000
Ivan Teh 729 653
Yuen Choong Lai 229 228
John Croft 245 241
Robin Taylor 184 181
Calvin Chun 50 50
Alan Lim 50 50
1,487 1,403
Key management personnel comprised Executive and Non-Executive Directors. The ultimate controlling party is Ivan Teh.
27. Other income
2016 
RM
2015 
RM
Interest income 356,927 268,283
Gain on foreign exchange 2,530,179 2,441,014
Gain on disposal of fixed assets 574 2,036,717
Sundry income 123,067 147,257
3,010,747 4,893,271
28. Capital commitment
Authorised capital expenditure contracted but not provided for in the consolidated financial statements is analysed as follows:
2016 
RM
2015 
RM
Leasehold improvement 1,060,079 419,268 Fusionex International Plc Annual report 2016
37
29. Segment analysis
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed 
by the chief operating decision maker, as defined in IFRS 8, in order to allocate resources to the segment and to assess its performance. 
Interest income and interest expense are not allocated to segments, as this type of activity is driven by the central treasury function which 
manages the cash position of the Group. Accordingly, this information is not separately reported to the Board for each reportable segment.
Operating segments are prepared in a manner consistent with the information provided to the chief operating decision maker 
(the Executive Directors) in order to allocate resources to segments and to assess their performance. For management purposes, 
the Group is organised into business units based on geographical locations.
Geographical location
Asia Pacific
RM
Europe
RM
Americas
RM
Elimination
(4)
 
RM
Total
RM
At 30 September 2016
Revenue 95,099,004 13,459,573 8,298,607 (22,233,403) 94,623,781
Result
Segment result before financing costs and tax 5,531,836 6,681,750 1,148,760 (8,747,863) 4,614,483
Finance costs (62,989)
Income tax (3,142,872)
Profit for the year 1,408,622
Assets
Segmental assets
(1)
305,880,435 158,013,076 — — 463,893,511
Non-allocated assets
(2)
549,572
Consolidation adjustments (232,029,594)
Total assets 232,413,489
Liabilities
Segmental liabilities
(3)
188,789,111 17,784,412 — — 206,573,523
Non-allocated liabilities
(2)
63,665,988
Consolidation adjustments (232,029,594)
Total liabilities 38,209,917
Notes:
(1) Segment assets comprise total current and non-current assets less unallocated assets.
(2) Mainly related to central administrative function’s and central treasury function’s assets/liabilities.
(3) Segment liabilities comprise total current liabilities and non-current liabilities less unallocated liabilities.
(4) Mainly related to Asia Pacific intercompany sales.
Other segmental reporting
Asia Pacific
RM
Europe
RM
Americas
RM
Total
RM
At 30 September 2016
Capital expenditure:
– tangible assets 18,093,638 — — 18,093,638
– intangible assets 26,448,903 — — 26,448,903
Depreciation 2,732,285 — — 2,732,285
Other non-cash expenses
Amortisation of intangible assets 7,716,485 — — 7,716,485
7,716,485 — — 7,716,485 S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
38
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
29. Segment analysis continued
Geographical location
Asia Pacific
RM
Europe
RM
Americas
RM
Elimination
(4)
 
RM
Total
RM
At 30 September 2015
Revenue 77,006,862 14,827,489 5,620,290 (20,410,325) 77,044,316
Result
Segment result before financing costs and tax 27,117,058 7,483,057 2,116,230 (8,303,882) 28,412,463
Finance costs (41,372)
Income tax (3,423,964)
Profit for the year 24,947,127
Assets
Segmental assets
(1)
222,754,037 105,932,380 — — 328,686,417
Non-allocated assets
(2)
437,360
Consolidation adjustments (161,379,646)
Total assets 167,744,131
Liabilities
Segmental liabilities
(3)
124,103,894 21,255,905 — — 145,359,799
Non-allocated liabilities
(2)
55,091,795
Consolidation adjustments (161,379,646)
Total liabilities 39,071,948
Notes:
(1) Segment assets comprise total current and non-current assets less unallocated assets.
(2) Mainly related to central administrative function’s and central treasury function’s assets/liabilities.
(3) Segment liabilities comprise total current liabilities and non-current liabilities less unallocated liabilities.
(4) Mainly related to Asia Pacific intercompany sales.
Other segmental reporting
Asia Pacific
RM
Europe
RM
Americas
RM
Total
RM
At 30 September 2015
Capital expenditure:
– tangible assets 5,032,700 — — 5,032,700
– intangible assets 16,499,763 — — 16,499,763
Depreciation 2,245,115 — — 2,245,115
Other non-cash expenses
Amortisation of intangible assets 4,574,604 — — 4,574,604
4,574,604 — — 4,574,604
Business segments
Products
RM
Services 
RM
Total
RM
At 30 September 2016
Revenue 83,849,773 10,774,008 94,623,781
At 30 September 2015
Revenue 68,025,654 9,018,662 77,044,316
Revenue for products relates to the sale of the Fusionex Data Management Platform and revenue derived from services relates to 
services provided by the Group to its clientele in association with the Group’s Data Platform.  Fusionex International Plc Annual report 2016
39
29. Segment analysis continued
Major customers and partners
The following table outlines the number of customers and partners (“entities”) in each year who individually represent in excess of 
10% of the Group’s revenue for that year:
2016 2015 
Number of entities exceeding 10% of the Group’s revenue 1 2
2016 
RM’000
2015 
RM’000
Entity A 9,788 —
(1)
Entity B — 11,249
Entity C — 11,017
Aggregate revenue for entities exceeding 10% of the Group’s revenue 9,788 22,266
(1) Entity A did not contribute in excess of 10% of the Group’s revenue in 2015.
30. Financial instruments
The Group’s activities are exposed to a variety of market risks (including foreign currency risk, interest rate risk and equity price risk), 
credit risk and liquidity risk. The Group’s overall financial risk management policy focuses on the unpredictability of financial markets 
and seeks to minimise potential adverse effects on the Group’s financial performance.
(a) Financial risk management policies
The Group’s policies in respect of the major areas of treasury activity are as follows:
(i) Market risk 
Foreign 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 the Great British Pound and the United States Dollar. Foreign currency risk is monitored 
closely on an ongoing basis to ensure that the net exposure is at an acceptable level. 
The Group maintains a natural hedge whenever possible by matching the cash inflows (revenue stream) and cash outflows used for 
purposes such as capital expenditure, operational expenditure and debt service requirements in the respective currencies.
The Group’s exposure to foreign currency is as follows:
2016
Great British 
Pound
RM
Singapore 
Dollar
RM
United States 
Dollar
RM
Thai 
Baht
RM
Others
RM
Total
RM
Financial assets
Trade receivables 1,043,518 823,213 12,269,502 879,354 — 15,015,587
Other receivables and deposits 20,439 1,534,184 69,943 65,201 15,288 1,705,055
Cash and cash equivalents 14,546,649 14,292,502 18,887,042 1,900,893 682,532 50,309,618
15,610,606 16,649,899 31,226,487 2,845,448 697,820 67,030,260
Financial liabilities
Other payables and accruals 878,579 711,303 635,866 686,830 102,263 3,014,841
Net financial assets 14,732,027 15,938,596 30,590,621 2,158,618 595,557 64,015,419
Less: net financial assets denominated in the 
respective entities’ functional currencies (9,889,325) (15,938,596) (3,396,575) (2,158,618) (357,041) (31,740,155)
Currency exposure 4,842,702 — 27,194,046 — 238,516 32,275,264 S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
40
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
30. Financial instruments continued
(a) Financial risk management policies continued
(i) Market risk continued
Foreign currency risk continued
2015
Great British 
Pound
RM
Singapore 
Dollar
RM
United States 
Dollar
RM
Thai 
Baht
RM
Others
RM
Total
RM
Financial assets
Trade receivables 1,294,319 1,590,210 6,126,479 674,268 79,859 9,765,135
Other receivables and deposits 15,485 181,220 1,186,082 63,780 16,395 1,462,962
Cash and cash equivalents 10,436,790 1,465,008 11,705,661 1,170,207 929,499 25,707,165
11,746,594 3,236,438 19,018,222 1,908,255 1,025,753 36,935,262
Financial liabilities
Other payables and accruals 1,221,349 409,193 — 114,255 52,198 1,796,995
Net financial assets 10,525,245 2,827,245 19,018,222 1,794,000 973,555 35,138,267
Less: net financial assets denominated in the 
respective entities’ functional currencies (10,181,101) (2,827,245) — (1,794,000) (757,803) (15,560,149)
Currency exposure 344,144 — 19,018,222 — 215,752 19,578,118
Foreign currency risk sensitivity analysis
The following table details the sensitivity analysis of a reasonably possible change in the foreign currencies as at the end of the 
reporting period, with all other variables held constant:
2016
Increase/
(decrease)
RM
2015
Increase/
(decrease)
RM
Effects on profit after taxation/equity
Great British Pound:
– strengthened by 10% 484,270 34,414
– weakened by 10% (484,270) (34,414)
United States Dollar:
– strengthened by 10% 2,719,405 1,901,822
– weakened by 10% (2,719,405) (1,901,822)
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market 
interest rates. The Group’s exposure to interest rate risk arises mainly from interest bearing financial assets and liabilities. The Group’s 
policy is to obtain the most favourable interest rates available. Any surplus funds of the Group will be placed with licensed financial 
institutions to generate interest income.
Interest rate risk sensitivity analysis 
A 100 basis points strengthening/weakening of the interest rate as at the end of the reporting period would have immaterial impact 
on profit after taxation and/or equity. This assumes that all other variables remain constant.
Equity price risk
The Group does not have any quoted investments and hence is not exposed to equity price risk. Fusionex International Plc Annual report 2016
41
30. Financial instruments continued
(a) Financial risk management policies continued
(ii) Credit risk
The Group’s exposure to credit risk, or the risk of counterparties defaulting, arises mainly from trade and other receivables. The 
Group manages its exposure to credit risk by the application of credit approvals, credit limits and monitoring procedures on an 
ongoing basis. For other financial assets (including cash and bank balances), the Group minimises credit risk by dealing exclusively 
with high credit rating counterparties.
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other 
receivables as appropriate. The main components of this allowance are a specific loss component that relates to individually significant 
exposures and a collective loss component established for groups of similar assets in respect of losses that have been incurred but 
not yet identified. Impairment is estimated by management based on prior experience and the current economic environment.
Credit risk concentration profile
The Group’s major concentration of credit risk relates to amounts owing by 3 (2015: 4) customers which constituted approximately 
51% (2015: 74%) of the Group’s trade receivables as at the end of the reporting period. The Group’s trade credit term is disclosed in 
note 8.
Exposure to credit risk
As the Group does not hold any collateral, the maximum exposure to credit risk is represented by the carrying amount of the financial 
assets as at the end of the reporting period.
The exposure of credit risk for trade receivables by geographical region is as follows:
2016 
RM
2015 
RM
Asia Pacific 12,769,874 23,826,010
Europe 1,043,518 1,294,318
Americas 6,309,276 3,402,232
20,122,668 28,522,560
Ageing analysis
The ageing analysis of the Group’s trade receivables as at 30 September 2016 and 2015 is as follows:
2016
Gross amount
RM
Impairment
RM
Carrying value
RM
Not past due 10,659,197 — 10,659,197
Past due:
– less than 3 months 5,211,570 — 5,211,570
– 3 to 6 months 3,798,619 — 3,798,619
– 6 months and above 1,109,878 (656,596) 453,282
20,779,264 (656,596) 20,122,668
2015
Gross 
amount and 
carrying value
RM
Not past due 26,161,667
Past due:
– less than 3 months 1,407,052
– 3 to 6 months 766,282
– 6 months and above 187,559
28,522,560
The collective impairment allowance is determined based on estimated irrecoverable amounts from the sale of goods, determined 
by reference to past default experience.
Trade receivables that are past due but not impaired
The Group believes that no additional impairment allowance is necessary in respect of these trade receivables. Trade receivables 
that are individually determined to be impaired at the reporting date relate to debtors that are defaulted in payments. 
The Group has trade receivables that are past due 6 months and above at the reporting date but not impaired. These receivables 
are related to customers with on-going transactions and progressive payments. S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
42
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016
30. Financial instruments continued
(a) Financial risk management policies continued
(iii) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s exposure to 
liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.
The Group maintains a level of cash and cash equivalents and bank facilities deemed adequate by the management to ensure as far 
as possible that it will have sufficient liquidity to meet its liabilities when they fall due.
The following table sets out the maturity profile of the financial liabilities as at the end of the reporting period based on contractual 
undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on the rates at the end 
of the reporting period):
Weighted 
average 
effective 
rate
%
Carrying
amount 
RM
Contractual 
undiscounted
cash flows 
RM
Within 
1 year
RM
1–5 years
RM
>5 years
RM
2016
Term loans 4.55 19,334,048 27,592,632 1,623,096 6,492,384 19,477,152
Hire purchase payables 4.48 115,539 118,972 89,244 29,728 —
Other payables and accruals
(1)
— 7,751,505 7,751,505 7,751,505 — —
27,201,092 35,463,109 9,463,845 6,522,112 19,477,152
2015
Term loans 4.65 20,067,172 29,427,890 1,634,632 6,538,528 21,254,730
Hire purchase payables 4.48 197,966 208,216 89,244 118,972 —
Other payables and accruals
(1)
— 9,613,336 9,613,336 9,613,336 — —
29,878,474 39,249,442 11,337,212 6,657,500 21,254,730
(1) Excluding deferred revenue of RM2,076,609 (2015: RM2,403,821).
(b) Capital risk management
The Group defines capital as the total equity of the Group. 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 and benefits for other stakeholders and to maintain 
an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust 
the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Group manages its capital based on debt-to-equity ratio. The Group’s strategies were unchanged from the previous financial 
year. The debt-to-equity ratio is calculated as net debt divided by total equity. Net debt is calculated as borrowings plus trade and 
other payables less cash and cash equivalents. 
The debt-to-equity ratio of the Group as at the end of the reporting period was as follows:
2016 
RM
2015 
RM
Hire purchase payables 115,539 197,966
Term loans 19,334,048 20,067,172
Other payables and accruals 9,828,114 12,017,157
Less: cash and cash equivalents (94,183,616) (57,727,636)
Net cash (64,905,915) (25,445,341)
Total equity 194,203,572 128,672,183
Debt-to-equity ratio N/A N/A Fusionex International Plc Annual report 2016
43
30. Financial instruments continued
(c) Classification of financial instruments
Financial assets
2016 
RM
2015 
RM
Loans and receivables financial assets
Trade receivables 20,122,668 28,522,560
Other receivables and deposits 3,571,245 2,442,057
Cash and cash equivalents 94,183,616 57,727,636
117,877,529 88,692,253
Financial liabilities
2016 
RM
2015 
RM
Other financial liabilities
Hire purchase payables 115,539 197,966
Term loans 19,334,048 20,067,172
Other payables and accruals
(1)
7,751,505 9,613,336
27,201,092 29,878,474
(1) Excluding deferred revenue of RM2,076,609 (2015: RM2,403,821).
(d) Fair values of financial instruments
The carrying amounts of the financial assets and financial liabilities reported in the financial statements approximated to their fair values.
The following summarises the methods used to determine the fair values of the financial instruments:
(i)  the financial assets and financial liabilities maturing within the next 12 months approximated to their fair values due to the 
relatively short term maturity of the financial instruments;
(ii)  the fair value of hire purchase payables is determined by discounting the relevant cash flows using current interest rates for 
similar instruments as at the end of the reporting period; and
(iii) the carrying amounts of the term loans approximated to their fair values as these instruments bear interest at variable rates.
31. Subsequent events
On 22 December 2016, the Company announced that an employee benefit trust, the Fusionex Employee Benefit Trust (EBT), has been 
set up to incentivise employees of the Company and its subsidiaries through the award of a specified number of ordinary shares in 
the capital of the Company (“Awards”).
The Awards shall not be granted to contractors or the Directors of the Company, and shall be subject to vesting and 
performance conditions.
The EBT subscribed for 7,095,000 new ordinary shares in the capital of the Company (“New Ordinary Shares”).
An application was made for the New Ordinary Shares to be admitted to trading on AIM, and admission became effective in 
December 2016. Following admission, the Company’s issued share capital consists of 54,395,000 ordinary shares. S G FINANCIAL STATEMENTS
Fusionex International Plc Annual report 2016
44
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 SEPTEMBER 2016  
Design Portolio is committed to planting 
trees or every corporate communications 
project, in association with Trees or Cities. Fusionex International Plc
12 Castle Street
St Helier
Jersey JE2 3RT 
Channel Islands 
Tel:  +44 (0)207 0388 207
Email: uk.info@adv-fusionex.com 
Web: www.fusionex-international.com
Fusionex International Plc Annual report 2016 Fusionex International Plc Annual report 2016