Geo Genesis Group Limited / Ticker: GEOP / Market: PLUS
17 March 2010
Geo Genesis Group Ltd ('Geo Genesis' or 'the Company' or 'the Group')
Final Results for the year ended 30 September 2009
Geo Genesis Group Limited, an advisory and investment company focussed on China
and other emerging markets, announces its preliminary results for the year
ended 30 September 2009.
Overview
* Net profit for the year of US$1,240,138 (2008: loss of US$2,627,209)
* Focussed on building position as a strategic management consultancy and
private equity firm specialising in investments and advice within emerging
markets, with a particular focus on the People's Republic of China
(`China')
* Over US$2 million invested by the Group, contributing to the acquisition of
new investments, obtained through stakes taken as fee earnings and/or
direct investments
* Established a Beijing presence that has become the centre of decisions for
business generation and implementation in China
* Successful listing of Changda International Holdings, Inc. in February 2009
* Wholly owned subsidiary SinoVentures strategically restrained from
providing venture capital due to market turmoil
* Appointment of Joelle Mekers as senior executive in charge of project
finance; a corporate financier with over 15 years experience in the
financial arena
* Key infrastructure in place to effect a positive implementation of the
Group's business plans
Chief Executive Officer Roger Bendelac said, "Given the difficult market
conditions we have endured, it is fantastic to report a net profit in excess of
US$1 million, combined with the new investments we have made, making this a
successful year. We have a growing presence in our markets and our new centre
in Beijing is proving critical as we gain further traction in China. Our
ability to adjust our investment and consultancy strategies to suit the varying
challenges of the economic climate has enabled us to prosper through this
period. We are now a well established entity with a strong management team and
I look forward to updating you on our progress in 2010."
For further information visit www.geogenesisgroup.com or contact:
Roger Bendelac, CEO Geo Genesis Group Ltd Tel: +1 (917) 969 5475
Ravi Sikand Orange Corporate Finance Tel: +44 (0)20 3301 3356
Paul Youens St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177
Isabel Crossley St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177
Chairman's Statement
This second year of operations has continued to be a period of rapid
development for the Group following its flotation on PLUS in April 2008 and I
am pleased to report a net profit for the year of US$1,240,138. We have
primarily focussed on building our position as a strategic management
consultancy and private equity firm specialising in investments and advice
within emerging markets, with a particular focus on the People's Republic of
China. The Group has weathered difficult market conditions by adapting its
strategy on a continuous basis and I thank the commitment of my fellow
directors which has allowed the resilience of the Group through this period and
the focus on its longer term objectives.
Over the course of the year ended 30 September 2009, over US$2 million were
invested by the Group and contributed to the acquisition of new investments
obtained through stakes taken as fee earnings and/or direct investments. We
continued to make strong progress in consolidating the business infrastructure,
building on relationships with our existing clients and forging new strategic
partnerships across the global emerging markets spectrum. Additionally, we have
made inroads in extending the number of clients and potential clients to
include a diverse range of companies from small start up operations to Fortune
500 entities. We have also broadened our service offering and now provide a
range of services from M&A advisory and strategic management consultancy,
through to corporate restructuring.
Most importantly, following a strategic review in March 2009, the Board elected
to set up a Beijing presence which is considered the centre of decisions for
business generation and implementation in China. The Chinese subsidiary Qingdao
China Partners Investment Advisory Co. Ltd (`QCP'), although fully owned by Geo
Genesis Group Ltd was deemed no longer under the full management control of Geo
Genesis and therefore could be deemed as a disregarded operation. That fact,
combined with the business decision to re-centre our activities, resulted in
the subsequent creation of the Beijing based operation in China, as the legal
representative office of the U.S. based Consulting firm Geo Genesis Group, Inc
and at the core of the Group's operations in China.
The newly focussed Beijing presence has resulted in emphasising the execution
of reverse mergers with U.S. based shells quoted on the OTC-BB market and the
creation of a business model utilising the US market expertise of the Executive
Directors of the Group. It materialised with the successful listing of our
client, Changda International Holdings, Inc. that occurred in February 2009.
The China based venture affiliate company, SinoVentures, presently 100% owned
by Geo Genesis, has strategically restrained from providing venture capital to
any new companies due to the market turmoil seen throughout 2009 and as a
result, Sino-Ventures is no longer anticipated to be listed in the near term.
However, individual companies within SinoVentures have and will continue to
receive direct attention for direct listing with anticipated remuneration
arising through the earnings of equity stakes for the Group.
Geo Genesis Group, Inc, the U.S. Delaware entity, continues to have success
with its existing projects and while market conditions persist, has refocussed
towards contractual agreements with more established companies such as the
Santaro Interactive Entertainment project, an online gaming company in China in
which Geo Genesis stands to receive a significant stake once work is completed.
The Group has continued to diversify its risks by extending its expertise
beyond China, however, the Ecuadorian based project Trilliant Exploration
Corporation (`Trilliant') has experienced difficulties following the inability
of an investment fund to follow through on its written commitments to that
entity that have resulted in the reversing of the earlier market gains for that
project as the Ecuadorian properties could no longer be consolidated into
Trilliant. Happily our strategy of investing across a portfolio of ventures
meant that any impact from Trilliant was compensated by the realisation of
earnings through the China based Changda project which resulted in the
materialisation of gains following the listing of that company.
Geo Genesis has been innovative in seeking alternative options for companies
looking to raise cash on the public markets. An example of this is the
development of relationships with Beijing based consultants that have expanded
the deal flow for which the Group is performing due diligence and
implementation of contractual engagements and expect to see materialisation of
these efforts in its 2010 results.
Financial
The Group's balance sheet at the year end reflected the results of the
realisation of its gains in the Changda project which allowed it to obtain
liquidity through borrowings against its share holdings.
Additionally, the Group has continued to work to reduce overheads and executive
compensation has continued to be modified to reflect performance, therefore
allowing for a longer cash flow use for the development of the business. Cash
as of 30 September 2009 was US$5,311, however, the Group subsequently generated
sufficient cash to meet its obligations, both through incurring borrowings on
its holdings and when appropriate by disposing of some of these holdings,
additionally the Group receives consulting fees that were used to meet on-going
expenses.
The Team
We continue to attract talented individuals with the expertise and experience
across the divisions of the business. This includes the appointment of Joelle
Mekers in January 2009, a corporate financier with over 15 years experience in
the financial arena, as senior executive in charge of project finance.
Outlook
We have progressed through a difficult and costly formative period, notably
surviving some of the most challenging market conditions seen in several
decades. However, having passed through this stage, we now have the key
infrastructure in place to effect a positive implementation of the Group's
business plans and begin to reap the rewards of our efforts. I would like to
thank shareholders for their continued support and look forward to updating the
market on a successful 2010.
Marc Koplik
Chairman
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2009
Note Year to 30 Restated
September
2009 Year to 30
September
2008
US$ US$
Continuing operations
Revenue 1,905,120 105,690
Operating expenses :
Selling expenses ( 10,422) (134,866)
General and administrative expenses (680,220) (1,577,579)
Costs of offering - (384,816)
Share option charge (266,555) 445,742)
Wages and salaries ( 5,893) -
Rent expense (9,086) -
Exchange gain on transactions (32) (105)
Total operating expenses (972,208) (2,543,108)
Profit / (loss) from operations 932,912 (2,437,418)
Write off of receivable (235,400) -
Impairment (50,000)
Unrealised gain on investments 457,015 -
Loss on sale of investments (155) -
Finance income - 10,471
Finance charges (16,861) -
Profit / (loss) before taxation 1,087,511 (2,426,947)
Taxation 3 - -
Profit / (loss) from continuing operations 1,087,511 (2,426,947)
Discontinued operations 9 152,627 (200,262)
PROFIT / (LOSS) FOR YEAR ATTRIBUTABLE TO 1,240,138 (2,627,209)
EQUITY HOLDERS
Earnings (loss) per share:
Basic continuing (cents) 5 1.60 (3.50)
Basic discontinued (cents) 5 0.23 (0.38)
Total basic (cents) 5 1.83 (3.88)
Diluted continuing (cents) 1.02 (3.50)
Diluted discontinued (cents) 0.14 (0.38)
Total diluted (cents) 1.16 (4.03)
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2009
Note 2009 Restated
2008
US$ US$
ASSETS
Non-current assets
Property, plant and equipment - 43,332
Total non-current assets - 43,332
Current assets
Investments 6 2,228,660 -
Trade and other receivables 7 148,224 96,473
Cash and cash equivalents 5,311 385,725
Total current assets 2,382,195 482,198
Total assets 2,382,195 525,530
EQUITY AND LIABILITIES
Current liabilities
Loans payable 71,138 -
Trade and other payables 309,809 29,796
Accrued expenses 83 24,227
Total liabilities 381,030 54,023
Equity
Issued capital 4 6,806 6,773
Share premium 4 2,744,896 2,719,929
Retained earnings (1,462,834) (2,702,972)
Share option reserve 712,297 445,742
Foreign exchange reserve - 2,035
Total equity attributable to equity 2,001,165 471,507
holders
Total equity and liabilities 2,382,195 525,530
CONSOLIDATED SHAREHOLDERS' EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2009
Share Share Shareoption Restated Foreign Restated
capital premium reserve exchange
Retained reserve Total
earnings
US$ US$ US$ US$ US$ US$
Balance as at 30 6,420 428,582 - (75,763) 2,055 361,294
September 2007
Issue of shares 353 2,291,347 - - - 2,291,700
Exchange - - - - (20) (20)
difference
arising on
translation of
foreign
operations
Share option - - 445,742 - - 445,742
reserve
Loss for the - - - (2,627,209) - (2,627,209)
year
Balance as at 30 6,773 2,719,929 445,742 (2,702,972) 2,035 471,507
September 2008
Issue of shares 33 24,967 - - - 25,000
Exchange - - - - (2,035) (2,035)
difference
arising on
translation of
foreign
operations
Share option - 266,555 - - 266,555
reserve
Profit for the - - - 1,240,138 - 1,240,138
year
Balance as at 30 6,806 2,744,896 712,297 (1,462,834) - 2,001,165
September 2009
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2009
Note Year to 30 Restated
September
2009 Year to 30
September
2008
US$ US$
Operating activities
Net profit / (loss) from continuing 1,087,511 (2,426,947)
operations
Adjustments for non cash items:
Equity share received for services performed (1,780,300) -
Impairments 50,000 -
Share option charge 266,555 445,742
Unrealised gain on investments (457,015) -
Working capital adjustments:-
Increase in trade and other receivables (51,751) (24,454)
Increase / (decrease) in trade and other 244,086 (2,992)
payables
Cash used in continuing operations (640,914) (2,008,651)
Profit/(loss) from discontinued operations 152,627 (200,262)
Depreciation 5,624 10,307
Net cash flows used for operating activities (482,663) (2,198,606)
Cash flows from investing activities
Purchase of tangible assets - (14,017)
Disposal of subsidiary net of cash (1,251) -
Proceeds from sale of sales 8,500 -
Net cash from / (used) for investing 7,249 (14,017)
activities
Cash flows from financing activities
Proceeds from issuance of shares 25,000 2,291,701
Proceeds from borrowings 70,000 -
Net cash flows from financing activities 95,000 2,291,701
Net (decrease) increase in cash and cash (380,414) 79,078
equivalents
Cash at beginning of year 385,725 307,337
Translation differences - (690)
Cash and cash equivalentsat the end of the 5,311 385,725
year
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2009
1 BASIS OF PREPARATION
The financial information set out in this announcement does not constitute the
Company's statutory financial statements for the year ended 30 September 2009.
The financial information has been prepared in accordance with International
Financial Reporting Standards as issued by the IASB and the accounting policies
adopted in the Company's financial statements for the year ended 30 September
2009.
The financial information set out in this announcement does not constitute the
Company's statutory financial statements for the year ended 30 September 2009,
but is derived from those financial statements. The auditors have reported on
the statutory financial statements for the year ended 30 September 2009; their
report was qualified based upon a limitation of audit scope as follows:
`Except for the financial effects of such adjustments, if any, as might have
been determined to be necessary had we been able to satisfy ourselves as to the
Qingdao China Partners Investment Advisory Co. Ltd. income and cash flow
statement balances, in our opinion, the financial statements give a true and
fair view, in accordance with IFRSs as issued by the IASB, of the consolidated
and company profit for the year then ended.
In our opinion, the consolidated and company balance sheets give a true and
fair view in accordance with IFRSs as issued by the IASB of the state of the
consolidated and company's affairs as at 30 September 2009.
In respect solely of the limitation of our work relating to Qingdao China
Partners Investment Advisory Co. Ltd. we have not obtained all the information
and explanations that we considered necessary for the purposes of our audit'.
The financial information for the year ended 30 September 2008 is extracted
from the audited statutory financial statements for the year as restated for
the prior year adjustment described in Note 8.
The financial information set out in this announcement was approved by the
Board on 16 March 2010.
The directors do not recommend the payment of a dividend.
2 SEGMENTAL ANALYSIS
The directors consider that the Group's activities represent a single class of
business. The analysis of the Group's turnover, gross profit, assets,
liabilities, additions to plant, property and equipment and depreciation and
amortisation by the component used by management to make decisions about
operating matters:
Year ended 30 S Restated Year
eptember 2009 ended 30
September 2008
US$
US$
Revenue
Marshall Islands - -
Bermuda - -
USA 1,905,120 105,690
China - 59,030
1,905,120 164,720
Gross profit
Marshall Islands - -
Bermuda - -
USA 1,905,120 105,690
China - 59,030
1,905,120 164,720
Carrying amount of assets
Marshall Islands 2,345,396 341,540
Bermuda 3,493 29,883
USA 33,306 64,501
China 89,606
2,382,195 525,530
Liabilities
Marshall Islands 221,681 24,226
Bermuda - -
USA 109,349 194
China (included within 50,000 29,603
discontinued operations)
381,030 54,023
(Impairment) / additions of
assets
Marshall Islands - -
Bermuda - -
USA - -
China (included within (37,708) 14,017
discontinued operations)
(37,708) 14,017
Depreciation and amortisation
Marshall Islands - -
Bermuda - -
USA - -
China (included within 5,624 10,307
discontinued operations)
5,624 10,307
3 TAXATION
Year Restated
Year ended
ended 30 30
September September
2009 2008
US$ US$
Total tax charge - -
Factors affecting tax charge:
Profit / (loss) before tax 1,087,511 (2,426,947)
Tax at applicable tax rate - -
Adjustment for different tax jurisdictions (74,577) (98,553)
Creation of tax losses 74,577 98,553
Total tax charge - -
The Group has tax losses arising that are available against future taxable
profits. The directors are of the opinion that the probability of the Group
trading profitably in the next 12 months is uncertain. As a result of the
existing uncertainties of their realisation, a deferred tax asset has not been
recognised.
4SHARE CAPITAL
30 30
September September
2009 2008
US$ US$
Authorised
350,000,000 common 35,000 35,000
shares of US$0.0001
each
30 September 2008
Share Share
Capital Premium
US$ US$
Allotted, called up and fully paid
67,725,692 common shares of US$0.0001 6,773 2,719,929
each
30 September 2009
Share Share
Capital Premium
US$ US$
Allotted, called up and fully paid
68,055,692 common shares of US$0.0001 6,806 2,744,896
each
The Company has one class of shares. Each share entitles the holder to one (1)
vote at general meetings of the Company. The authorised number of shares is
350,000,000 with a par value of US$0.0001 per share. For shares that are
ultimately owned by directors, executive directors, or their immediate family
members, these are subject to lock up agreements that expire on April 10, 2010.
All directors and insiders are required to inform the public of any changes in
their holdings.
On 30 September 2009, the share capital of the Company was US$6,806 and the
total number of shares was 68,055,692.
The shares were issued to raise capital.
2009 Authorisations
Date of issue Nominal Market Number of Nominal Share
value per value per shares value of premium
share US$ share issued issue increase
US$ US$ US$
Brought forward - - 64,200,000 - 428,582
3 December 2007 0.0001 0.65 100,000 10 64,990
6 December 2007 0.0001 0.65 50,000 5 32,495
28 November 2007 0.0001 0.65 50,000 5 32,495
20 November 2007 0.0001 0.65 100,000 10 64,990
16 November 2007 0.0001 0.65 100,000 10 64,990
27 December 2007 0.0001 0.65 200,000 20 129,980
22 November 2007 0.0001 0.65 200,000 20 129,980
21 December 2007 0.0001 0.65 340,000 34 220,966
4 January 2008 0.0001 0.65 78,000 8 50,692
14 January 2008 0.0001 0.65 2,307,692 231 1,499,769
As at 30 67,725,692 353 2,719,929
September 2008
9 April 2009 0.0001 0.0758 330,000 33 24,967
As at 30 68,055,692 386 2,744,896
September 2009
Share options
The fair value of the share options granted has been calculated using the
Black-Scholes option-pricing model individually applied to each option granted.
The inputs into this model were as follows:
Option grant date 20-Apr-09 16-Apr-09 2-Apr-09
Stock price GBP 0.350 GBP 0.350 GBP 0.350
Exercise price GBP 0.325 GBP 0.325 GBP 0.325
Term in years 4 4 4
Expected volatility 44% 44% 44%
Risk free rate 1.82 1.79 1.74
Options issued 75,000 250,000 1,000,000
The expected volatility represents management's best estimate of volatility
given the lack of historical information available regarding share price
volatility.
Share options
Number Weighted Weighted
of shares average average
exercise remaining
price per contractual
share life (years)
Balance at 1 October 2007- - - -
exercisable
Options granted in the year- 8,095,000 5p 2.73
exercisable
Balance at 1 October 2008- 8,095,000 5p 2.73
exercisable
Options granted in the year- 1,325,000 32.5p 3.48
exercisable
Balance at 30 September 2009 - 9,420,000 8.9p 1.98
exercisable
5. EARNINGS / (LOSS) PER SHARE
(i) Basic continuing
Basic earnings / (loss) per share is calculated by dividing the profit / (loss)
attributable to equity holders of the Group by the weighted average number of
ordinary shares in issue during the period:
Profit / (loss) attributable to equity holders of the Group : US$1,087,115
(2008: (US$2,367,8917))
Weighted average number of ordinary shares in issue: 67,882,533 (2008:
65,209,308)
Basic earnings / (loss) per share: 1.6 cents (2008: ((3.63) cents)
(ii) Basic discontinuing
Profit / (loss) attributable to equity holders of the Group: US$152,627 (2008:
(US$259,292))
Weighted average number of ordinary shares in issue: 67,882,533 (2008:
65,209,308)
Basic earnings / (loss) per share: 0.2 cents (2008: ((0.3) cents)
(iii) Diluted continuing
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue to assume conversion of all potential
dilutive options over ordinary shares during the period:
Profit / (loss) attributable to equity holders of the Group: $1,087,511
Weighted average number of ordinary shares in issue: 67,882,533
Share Options: 39,150,535
Weighted average number of ordinary shares for diluted earnings per share:
107,033,068
Basic earnings / (loss) per share: 1.02 cents
In 2008, the potential ordinary shares were considered to be anti-dilutive as
loss per share would have decreased had the warrants been converted into
ordinary shares.
(iv) Diluted discontinued
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue to assume conversion of all potential
dilutive options over ordinary shares during the period:
Profit / (loss) attributable to equity holders of the Group: US$152,627
Weighted average number of ordinary shares in issue: 67,882,533
Share Options: 39,150,535
Weighted average number of ordinary shares for diluted earnings per share:
107,033,068
Basic earnings / (loss) per share: 0.14 cents
In 2008, the potential ordinary shares were considered to be anti-dilutive as
loss per share would have decreased had the warrants been converted into
ordinary shares.
6. INVESTMENTS
The Group have received equity instruments as consideration in return for the
provision of services. These investments are classified as held for trading and
measured at fair value through profit or loss as the directors consider that
these investments have been incurred principally for the purpose of selling in
the near term.
All the investments are in listed equity securities and therefore present the
Group with the opportunity for return through dividend income and trading
gains. The fair value of these equity securities are based upon quoted market
prices.
2009 Restated 2008
US$ US$
Trading investments carried at fair value
through profit or loss
As at 1 October 2008 - -
Additions in the year 1,780,300 -
Sold in the year (8,655) -
Fair value movement during the year 457,015 -
As at 30 September 2009 2,228,660 -
2009 Restated 2008
US$ US$
Listed equity securities
Changda International Holdings, Inc. 1,758,660 -
Trilliant Exploration Corporation 190,000 -
Four Rivers BioEnergy, Inc 280,000 -
2,228,660 -
Of the above investments held in Changda International Inc 800,000 of the
equities include conditions that restrict the Group to sell the securities for
a period of 12 months from acquisition, and therefore realise any trading gains
during this period. As a result a discounted factor of 20% has been applied to
the quoted market price to reflect the illiquidity of the investments.
During the year no dividend income has been received in relation to any of
these investments.
7. TRADE AND OTHER RECEIVABLES
30 September Restated 30
2009 September
2008
US$ US$
Trade receivables 20,000 34,815
Other receivables 127,798 29,849
Prepaid expenses - 31,138
Amount due from Directors 426 671
148,224 96,473
8. PRIOR YEAR ADJUSTMENT
The Group have identified an error in the accounting and consolidation process
for a subsidiary undertaking, SinoVentures Limited, which had previously been
excluded from consolidation. The directors have identified that this subsidiary
has not been included within the prior year financial statements in accordance
with IAS 27 `Consolidated and separate financial statements'.
Accordingly, the subsidiary has been consolidated into the Group's financial
statement for the current year and the prior year has been restated accordingly
in accordance with IAS 8 `Accounting policies, changes in accounting estimates
and errors' to include the assets and liabilities of this additional
subsidiary. This has resulted in the following corrections being made to the
prior year financial statements:
Impact on Consolidated Balance Sheet
2008
US$
Reduction in trade and other receivables (211,705)
Impact on Consolidated Income Statement
2008
US$
Increase in general and administration expenses 211,705
Impact on Consolidated Statement of Changes in Equity
2008
US$
Reduction in retained earnings 211,705
This has also resulted in the basic earnings per share figure for 2008 being
restated from ((3.7) cents) to ((4.03) cents).
9. DISCONTINUED OPERATIONS
During the period, the Group lost control of Qingdao China Partners Investment
Advisory Co. Ltd whose principal activities were to act as a strategic
management consultancy and private equity firm in the People's Republic of
China. Consequently the Directors have decided to terminate the operations of
this subsidiary undertaking.
The Group considered that control of the entity was lost on 31 March 2009 and
as such was classified as a discontinued operation as at this date.
The results of the discontinued operations have been included in the
consolidated financial statements until the date of the loss of control. These
are as follows.
2009 2008
US$ US$
Revenue - 59,030
Other income 8,972 105
Administrative expenses (113,317) (259,131)
Finance costs (143) (266)
Gain on disposal 257,115 -
Gain / (loss) from discontinued operations 152,627 (200,262)
During the year Qingdao China Partners Investment Advisory Co. Ltd contributed
(loss) / gain of $10,641 (2008: $11,892) to the Group's net operating
cashflows, contributed $37,708 (2008: $0) in respect of investing activities
and paid $Nil (2008: $Nil) in respect of financing activities.
A gain of $236,481 arose on disposal of Qingdao China Partners Investment
Advisory Co. Ltd, being the carrying amount of the subsidiary's net assets
considered lost. No cash consideration was received as a result. In addition to
the gain on disposal a write off of $235,400 has been included in the Group and
company accounts as a result of receivable balances owed to Geo Genesis Group
Ltd.
Refer to Note 10 for the net assets disposed.
10. BUSINESS DISPOSALS
On 31 March 2009, the Group considered that they had lost control of Qingdao
China Partners Investment Advisory Co. Ltd. Refer to note 9 for further details
on the disposal of this subsidiary.
The net assets disposed of are as follows:
2009 2008
US$ US$
Cash and cash equivalents 1,251 -
Trade and other receivables 31,202 -
Property, plant and equipment 41,963 -
Trade and other payables (320,863) -
Unrealised foreign exchange loss (10,667) -
Net assets disposed (257,114) -
No consideration was received upon its disposal.
11. RELATED PARTIES TRANSACTIONS
Loans to Directors
The Group has provided its directors with short term loans at rates comparable
to the average commercial rate of interest.
At the year end amounts outstanding are:
30 September 30 September
2009 2008
US$ US$
Loans to directors 426 626
Loans from Directors
The Directors have provided the Group with short term non-interest bearing
loan.
At the year end amounts payable are:
30 September 30 September
2009 2008
US$ US$
Loans to directors 104,778 -
Director's transactions
Director's transactions relate to director's fees for the year.
Provision for subsidiary receivables
During the year the directors have decided to provide for the intercompany
receivable in full due to the doubt over its recoverability as a result of the
trading performance of the subsidiaries.
12. POST BALANCE SHEET EVENTS
On September 22, 2009, Geo Genesis Group, Inc. (`GGG Inc.') entered into a
private collateralized loan agreement with Ayuda Equity Funding, a US based
lender, for a non-recourse loan to GGG Inc in the amount of US$160,000 bearing
interest rate of 5% per annum for a term of 36 months. The loan interest is
payable quarterly commencing on the date the loan is disbursed to GGG Inc.
while the principal is payable at maturity date. The loan is secured by 200,000
shares of Changda International Holdings Inc. (`CIHI') common stock with a loan
to value of 50% and is subject to a broker fee of 5% of the loan amount. No
prepayment of principal is allowed on the first 18 months of the loan and the
borrower will pay an amount equal to the total amount of interest on the note
due through maturity less amount of any interest previously paid. At maturity,
50% of any appreciation in the value of the collateral shall be protected to
the account of GGG Inc and the balance to the account of the lender. On October
13, 2009, GGG Inc has drawn US$145,000 from the loan agreement.
END
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