MOBILITYONE LIMITED ANNUAL REPORT 2007 · Hussian @ rizal bin a. raHman ... The financial statements are required by . MOBILITYONE LIMITED MOBILITYONE LIMITED MOBILITYONE LIMITED

MOBILITYONE LIMITEDANNUAL REPORT 2007

MOBILITYONE LIMITED � AnnuAlrEpOrT 2007

2 CompanyInformation3 Chairman’sStatement

5 ReportoftheDirectors

9 CorporateGovernanceReport

11 BoardofDirectors

12 ReportoftheIndependentAuditors

14 ConsolidatedIncomeStatement

15 ConsolidatedStatementofChangesinEquity

16 ConsolidatedBalanceSheet

18 CompanyBalanceSheet

19 ConsolidatedCashFlowStatement

20 CompanyCashFlowStatement

21 NotestotheFinancialStatements

56 NoticeofAnnualGeneralMeeting

59 FormofProxy

CONTENTS

MOBILITYONE LIMITED 2 AnnuAlrEpOrT 2007

DIRECTORS Dato’ Dr. Wan azmi bin ariffin(Non-ExecutiveChairman) Hussian @ rizal bin a. raHman (Chief Executive Officer) Derrick cHia kaH Wai (Chief Technology Officer) seaH boon cHin(CorporateFinanceDirector) Dato’ sHamsir bin omar(Non-ExecutiveDirector) kjetil langlanD boHn(Non-ExecutiveDirector)

SECRETARY Walkers(Jersey)Limited WalkerHouse 28-34HillStreet JerseyJE48PN ChannelIslands

REGISTERED WalkerHouseOFFICE POBox72 28-34HillStreet JerseyJE48PN ChannelIslands BUSINESS No.2,9thFloor,WismaMenjalaraADDRESS Jalan7A/62A,BandarMenjalara 52200KualaLumpur Malaysia Tel:+(603)62861999

AUDITORS JeffreysHenryLLP Finsgate5-7CranwoodStreet LondonEC1V9EE UnitedKingdom

NOMINATED HBCorporateADVISER 40MarshWall,LondonE149TPANDBROKER UnitedKingdom

FINANCIALPUBLIC ThreadneedleCommunicationsRELATIONS 107-111FleetStreet LondonEC4A2AB UnitedKingdom

COMpaNY INfOrMaTION


introDuction

MobilityOneLimited'sorganisationstructureisdepictedbelow:-

MobilityOneLimitedacquiredMobilityOneSdn.Bhd.anditssubsidiarycompanyNetossSdn.Bhd.on22June2007andasacombinedgroupwasadmittedonAIMoftheLondonStockExchangewitheffectfrom5July2007.

oPerations reVieW

2007hasbeenahighlysatisfactoryyearfortheGroup,withbothtoplineandbottomlinegrowthandasuccessfullistingonAIMoftheLondonStockExchangeon5July2007.WeexperiencedfurthergrowthinourexistingoperationsofthebankingpaymentchannelswithCIMBBankBerhadandRHBBankBerhadinMalaysia,aswellasenteringintoanumberofnewagreementswithotherbanksinMalaysiasuchasBankKerjasama Rakyat Malaysia Berhad and Affin Bank Berhad. These new agreements mean that our wide rangeofelectronicbasedproductsandserviceswillbemadeavailabletothebanks’customersthroughtheirestablishedpaymentchannels,suchasInternetbankingandATMs.

The Group’s strategy for growth remains focused on on three principal areas: firstly, by increasing the range of products and services; secondly, by expanding our existing solution offerings by introducingcomplementary solutions to our current solution range and finally by expanding the business into further geographicalmarkets.Wearepleasedtoreportthatinviewofourtechnologicalcompetitivestrengths,wehavedevelopedadditionalsolutionssuchasapaymentsystemthatsupportsvariousdeliverychannelslikepointofsaleterminals,ATMs,self-servicekiosks,web,mobilebankingandinteractivevoiceresponsesystem.

Intermsofoverseasexpansion,theGrouphasmadeinroadsintotheIndonesianmarketwherewehavesetupa95%-ownedsubsidiaryearlierthisyear,namelyPT.MobilityOneIndonesiainJakarta,tomarketoursolutionstobanksandtelecommunicationcompaniesandaMemorandumofUnderstandinghasbeenenteredintowithPT.FinnetIndonesiatodevelopanelectronicmobilewalletinIndonesia.Earlierthisyear,

ChaIrMaN’S STaTEMENT

NETOSSSDNBHD(Malaysia)

100%

PAYSTATIONSDNBHD(Malaysia)

100%

MOBILITYONESDNBHD(Malaysia)

100%

MOBILITYONELIMITED(Jersey,ChannelIslands)

PTMOBILITYONEINDONESIA(Indonesia)

95%


wehavealsoexpandedtoCambodiawherewehavebeenappointedbyTelekomMalaysiaInternational(Cambodia)Co.,Ltd,oneofthemajortelecommunicationscompaniesinCambodia,asitstechnologypartnertoprovidethee-voucherandcredittransferplatformforitstelecommunicationsoperationsinCambodia.Inadditiontotheabovecountries,wearealsoinnegotiationstoextendourpresenceintoBrunei,theMiddleEastandselectedcountriesintheAfricancontinent.

We present the audited consolidated financial statements for MobilityOne Limited for the period ended 31December2007.TheperiodwasshortenedastheCompanywasincorporatedon22March2007.InaccordancewiththeAIMRules,theCompanyispublishingitsauditedconsolidatedresultsfortheperiodended31December2007.

results

TheGroup’srevenuefortheyearended31December2007was£16.6million,up43%fromthecorrespondingperiodin2006of£11.6million.Thiswasmainlydrivenbytheincreaseintransactionvolumesandalsotheencouragingresultsfromthetransactionsviathebanks’paymentchannels.

In tandem with the revenue growth, the Group’s operating profit increased by 21% to £820k (2006 : £679k), net profit after tax improved 29% to £733k (2006 : £568k) and earnings per share increase by 20% to 0.84 pence(2006:0.70pence).

In the consolidated income statement, the comparative figures are for the 9-month period ended 31 December2006.

current traDing anD outlook

In the first half of the current year, the performance of the Group has been affected by the slowing down of theglobaleconomywherebysomeoftheGroup’sprojectsandbusinessexpansionhavebeendelayed.In addition, the Group had incurred higher operating costs and expenses to explore new businessopportunities in theoverseasmarketsand tosetupanewsubsidiary in Indonesia.Nevertheless,weexpecttheperformanceoftheGrouptoimproveinthesecondhalfofthecurrentyearassomeofthedelayedprojectswouldmaterialiseandwewillcontinuetoexpanduponourrangeofproductsandservices,widen our solution range which, coupled with our overseas expansion provides confidence for the future performanceoftheGroup.

Dato’ Dr. Wan Azmi bin AriffinChairman

Date:19June2008

ChaIrMaN’S STaTEMENT (CONTINuED)


The Directors present their report with the financial statements of the Company and the Group for the periodended31December2007.

PrinciPal actiVitY

TheprincipalactivityoftheGroupintheperiodunderreviewwasinthebusinessofprovidinge-commerceinfrastructurepaymentsolutionsandplatforms.

keY Performance inDicators

Year ended 31.12.2007 £

Revenue 16,573,813Operating profit 819,675 Profit before tax 765,257Net profit 733,089

keYs risks anD uncertanties

operational risksTheGroupisnotinsulatedfromgeneralbusinessriskaswellascertainrisksinherentinthemobileprepaidindustryinwhichtheGroupoperates.Thismayincludetechnologicalchanges,unfavourablechangesinGovernmentandinternationalpolicies,theintroductionofnewandsuperiortechnologyorproductsandservicesbycompetitorsandchangesinthegeneraleconomic,businessandcreditconditions.

Dependency on distributorships agreementsTheGroupreliesonvarioustelecommunicationcompaniestoprovidethetelecommunicationproducts.HencetheGroup’sbusinessmaybemateriallyandadverselyaffectedifoneormoreofthesetelecommunicationcompaniescutorreducedrasticallythesupplyoftheirproducts.TheGrouphasdistributorshipagreementswithtelecommunicationcompaniessuchasDiGiTelecommunicationsSdn.Bhd.,Celcom(M)BerhadandMaxisCommunicationBerhad,whicharesubjecttoperiodicrenewal.

rapid technological changes/product changes in the e-commerce industryTheabilitytokeeppacewithrapidtechnologicaldevelopmentinthee-commerceindustrywillaffecttheGroup’s revenues and profits. The e-commerce industry is characterised by rapid technological changes duetochangingmarkettrends,evolvingindustrystandards,newtechnologiesandemergingcompetition.FuturesuccesswillbedependentupontheGroup’sabilitytoenhanceitsexistingtechnologysolutionsandintroducenewproductsandservicestorespondtotheconstantlychangingtechnologicalenvironment.Thetimelydevelopmentofnewandenhancedservicesorproductsisacomplexanduncertainprocess.

Demand of products and servicesTheGroup’sfutureresultsdependontheoveralldemandforitsproductsandservices.Uncertaintyintheeconomicenvironmentmaycausesomebusinesstocurtailoreliminatespendingonpaymenttechnology.Inaddition,theGroupmayexperiencehesitancyonthepartofexistingandpotentialcustomerstocommittocontinuingwithitsnewservices.

rEpOrT Of ThE DIrECTOrSFor the year ended 31 December 2007


reVieW of business

The results for the year and financial position of the Company and the Group are as shown in the annexed financial statements. results anD DiViDenDs

The consolidated profit for the year ended 31 December 2007 is £733,089 (31.12.2006: £441,918) which have beentransferredtoreserves.Nodividendswillbedistributedfortheperiodended31December2007.

Directors

TheDirectorsduringtheyearunderreviewwere:

Dato’ Dr. Wan Azmi bin Ariffin (Non-Executive Chairman)[email protected](Chief Executive Officer)DerrickChiaKahWai(Chief Technology Officer)SeahBoonChin(Corporate Finance Director)Dato’ShamsirbinOmar(Non-Executive Director)KjetilLanglandBohn(Non-Executive Director)

All the Directors who are eligible offer themselves for re-election at the forthcomingAnnual GeneralMeeting.

The beneficial interests of the Directors holding office at 31 December 2007 in the ordinary shares of the Companywereasfollows:ordinary 2.5p shares

Dato’ Dr. Wan Azmi bin [email protected]’ShamsirbinOmarKjetilLanglandBohn

TheDirectorsalsoheldthefollowingordinarysharesunderoption:

Dato’ Dr. Wan Azmi bin [email protected]’ShamsirbinOmarKjetilLanglandBohn

The options were granted on 5 July 2007 at an exercise price of 12.5p. The period of the options is five years.

rEpOrT Of ThE DIrECTOrS (CONTINuED)

For the year ended 31 December 2007

interest at 31.12.07

Nil27,452,111

NilNil

9,131,677Nil

% of issued capital

Nil29.2

NilNil9.7Nil

interest at 31.12.07

Nil2,000,0002,000,0002,000,000

NilNil


substantial sHareHolDers

As at 12 June 2008, the Company had been notified of the following beneficial interests in 3% or more of theissuedsharecapitalpursuanttoPartVIofArticle110oftheCompanies(Jersey)Law1991:

ordinary 2.5p shares

[email protected]’ShamsirbinOmarPerbadananNasionalBerhadGHLSystemsBerhad

Publication of accounts on comPanY Website

FinancialstatementsarepublishedontheCompany’swebsite.Themaintenanceandintegrityofthewebsiteis the responsibility of the Directors. The Directors’ responsibility also extends to the financial statements containedtherein.

inDemnitY of officers

TheGroupdoesmaintainanappropriateinsurancecoveragainstlegalactionboughtagainstitsDirectorsand officers.

grouP's PolicY on PaYment of creDitors

ItistheGroup’snormalpracticetomakepaymentstosuppliersinaccordancewithagreedtermsprovidedthatthesupplierhasperformedinaccordancewiththerelevanttermsandconditions.

emPloYee inVolVement

TheGroupplacesconsiderablevalueontheinvolvementoftheemployeesandhascontinuedtokeeptheminformedonmattersaffectingtheGroup.Thisisachievedthroughformalandinformalmeetings.

going concern

After making appropriate enquiries, the Directors consider that the Group has adequate resources tocontinueinoperationalexistencefortheforeseeablefuture.Forthisreasontheycontinuetoadoptthegoing concern basis in preparing the financial statements.

number of ordinary shares

27,452,11116,048,922

9,131,6775,290,0003,209,784

% of issued capital

34.820.311.66.74.1




statement of Directors' resPonsibilities

The Directors are responsible for preparing the financial statements in accordance with applicable law andregulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards as adopted for use in the European Union. The financial statements are required by law to give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to:

- selectsuitableaccountingpoliciesandthenapplythemconsistently;- makejudgmentsandestimatesthatarereasonableandprudent;- prepare the financial statements on the going concern basis unless it is inappropriate to presume that

theCompanywillcontinueinbusinessfortheforeseeablefuture;and- state that the financial statements comply with International Financial Reporting Standards (IFRS) as

adoptedbytheEuropeanUnion.

The Directors are responsible for keeping proper accounting records which disclose with reasonableaccuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Article 110 of the Companies (Jersey) Law 1991. They are also responsibleforsafeguardingtheassetsoftheCompanyandtheGroupandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

statement as to Disclosure of information to auDitors

So far as the Directors are aware, there is no relevant audit information (as defined by Section 234ZA of theArticle110oftheCompanies(Jersey)Law1991)ofwhichtheGroup'sauditorsareunaware,andeachDirectorhastakenallthestepsthatheoughttohavetakenasaDirectorinordertomakehimselfawareofanyrelevantauditinformationandtoestablishthattheGroup'sauditorsareawareofthatinformation.

Jeffreys Henry LLP were appointed auditors during the year will be proposed for re-appointment inaccordancewithSection385oftheArticle110oftheCompanies(Jersey)Law1991.

on beHalf of tHe boarD:

Hussian @ rizal bin a. rahmanChief Executive Officer

Date:19June2008




TheDirectorsacknowledgetheimportanceofthePrinciplessetoutintheCombinedCodeissuedbytheCommitteeonCorporateGovernance.AlthoughtheCombinedCodeisnotcompulsoryforAIMcompanies,theDirectorsintendtoapplytheprinciplesasfaraspracticableandappropriateforarelativelysmallpubliccompanyasfollows:

tHe boarD of Directors

TheBoardisresponsibleforstrategy,performance,approvalofmajorcapitalprojectsandtheframeworkofinternalcontrols.ToenabletheBoardtodischargeitsduties,allDirectorsreceiveappropriateandtimelyinformation. Briefing papers are distributed to all Directors in advance of Board meetings. All Directors have accesstotheadviceandservicesoftheCompanySecretary,whoisresponsibleforensuringthatBoardproceduresarefollowedandthatapplicablerulesandregulationsarecompliedwith.

auDit committee anD remuneration committee

TheAuditCommitteeandtheRemunerationCommitteecomprisetheNon-executiveDirectors.TheAuditCommitteereceivesandreviewsreportsfrommanagementandtheCompany'sauditorsrelatingtotheannualandinterimaccountsandtheaccountingandinternalcontrolsystemsoftheCompany.TheAuditCommitteehasunrestrictedaccesstotheGroup'sauditors.

TheRemunerationCommitteereviewstheperformanceoftheExecutiveDirectors,setstheirremuneration,determinesthepaymentofbonusestoExecutiveDirectorsandconsiderstheallocationofshareoptionstoDirectorsandemployees.

internal financial control

The Board is responsible for establishing and maintaining the Group’s system of internal financial control andplacesimportanceonmaintainingastrongcontrolenvironment.ThekeyprocedureswhichtheDirectorshave established with a view to providing effective internal financial control are as follows:

• TheGroup’sorganisationalstructurehasclearlinesofresponsibility.

• TheCompanypreparesacomprehensiveannualbudgetthatisapprovedbytheBoard.MonthlyresultsarereportedagainstthebudgetandvariancesarecloselymonitoredbytheDirectors.

• The Board is responsible for identifying the major business risks faced by the Company and fordeterminingtheappropriatecoursesofactiontomanagethoserisks.

• TheBoardisinvolvedinregularsubsidiarycompanyBoardmeetingsandwithstructuredoperationalreportingrequirements.

The Directors recognise, however, that such a system of internal financial control can provide only reasonable,notabsolute,assuranceagainstmaterialmisstatementorloss.TheDirectorshavereviewedthe effectiveness of the system of internal financial control that will be operated by the Group.

COrpOraTE GOvErNaNCE rEpOrTFor the year ended 31 December 2007

MOBILITYONE LIMITED �0 AnnuAlrEpOrT 2007

serVice contracts

TheDirectorshaveservicecontractsandlettersofappointment,whichrequirenotlessthan3months’noticeoftermination.

moDel coDe

TheCompanyhasadoptedandoperatesasharedealingcodeforDirectorsandseniorexecutivesonthesametermsastheLondonStockExchangeModelCodeforcompanieswhoseshareshavebeenadmittedtoAIM.

relations WitH sHareHolDers

Communicationswithshareholdersaregivenhighpriority.TheBoardusestheAnnualGeneralMeetingtocommunicatewithinvestorsandwelcomestheirparticipation.TheChairmanaimstoensurethattheDirectorsareavailableatAnnualGeneralMeetingstoanswerquestions.

COrpOraTE GOvErNaNCE rEpOrT (CONTINuED)


MOBILITYONE LIMITED �� AnnuAlrEpOrT 2007

Dato’ Dr. Wan azmi bin Ariffin(Non-Executive Chairman)

Dato’ Dr. Wan Azmi bin Ariff in, aMalaysianaged64,istheNon-ExecutiveChairman of the Company. He beganhis career as a teacher for secondaryschools from 1965 to 1977 and laterbecameauniversitylecturerfrom1979to1981.Sincethen,hehasbeenactivein the Malaysian politics. He obtainedhisBachelorDegreeinGeographyfromUniversitiSainsMalaysiaandaMaster’sDegreeinEconomicDevelopmentandaPhDinPoliticalEconomicsfromMcGillUniversity,Canada.

Hussian @ rizal bin a. rahman(Chief Executive Officer)

Hussian @ Rizal bin A. Rahman,a Malaysian aged 46, is the ChiefExecutive Officer of the Group. Hehas extensive experience in the ITand telecommunications industries inMalaysia and is responsible for thedevelopment of the Group’s overallmanagement, particularly in settingthe Group’s business direction andstrategies. He obtained a certifiedMasterofBusinessAdministrationfromtheOxfordAssociationofManagement,England.

BOarD Of DIrECTOrSFor the year ended 31 December 2007

Derrick chia kah Wai(Chief Technology Officer)

DerrickChiaKahWai,aMalaysianaged37, is the Chief Technology Officer of the Group. He began his career as aprogrammerin1994,hethenjoinedGHLSystemsBerhad inJanuary1998asaSoftware Engineer and was promotedto Software Development Managerin December 1999. He obtained hisBachelorDegreeinCommerce,majoringinManagementInformationSystemfromUniversityofBritishColumbia,Canada.HejoinedtheGroupinMay2005andisresponsible for theGroup’sR&D teamwhichincludethearchitecturaldesignofitstechnologyplatform.

seah boon chin(Corporate Finance Director)

SeahBoonChin,aMalaysianaged36,istheCorporateFinanceDirectoroftheCompany. He began his career as asenior officer with Chung Khiaw Bank (Malaysia)Bhd. (nowUnitedOverseasBank (Malaysia) Berhad) from 1995to 1996. From 1997 to January 2007,he worked in the Corporate FinanceDepartment of established financialinstitutions in Malaysia and SingaporeincludingCIMBInvestmentBankBerhad,Affin Investment Bank Berhad and Public Investment Bank Berhad. He obtainedhis Bachelor Degree in Commerce(Honours)withDistinctionfromMcMasterUniversity,Canada.HejoinedtheGroupinJanuary2007andisresponsiblefortheGroup’s corporate finance activities.

Dato’ shamsir bin omar(Non-Executive Director)

Dato’ Shamsir bin Omar, a Malaysianaged73isaNon-ExecutiveDirectorofthe Group. He commenced his careerwiththeMalaysianGovernmentinAugust1960astheAuditorandAccountantintheDepartmentofCooperativeDevelopment.In1966,hewasappointedastheChiefAccountantintheMinistryofEducation,Malaysia.In1967,hewaspromotedtothepositionofDeputyAccountantGeneralin the Ministry of Finance, Malaysia.In 1968, he became theAccountantGeneral,Malaysia,apostheheldfor22yearsuntil his retirement inJuly1989.Afterretirementfromgovernmentservicein1989,hejoinedShamsirJasaniGrantThornton, Malaysia. He has been theaccounting firm’s Chairman since then. HeisafellowmemberoftheInstituteofCharteredAccountantsinAustralia.

kjetil langland bohn(Non-Executive Director)

Kjetil Langland Bohn, a Norwegianaged38isaNon-ExecutiveDirectoroftheCompany. Hegraduated from theNorwegianBusinessSchool inBergenandbeganhiscareerasajournalistwithHegnarMediaASfrom1996to2000.InJuly2000hefoundedVivaTechnologiesASandactedasCEOuntilFebruary2004priortoitsacquisition.Hehasextensiveexperience within the mobile serviceindustryandmobileVoIPinEuropeandAsia. He is currently the CEO ofAIMquotedVykeCommunicationsplc.


We have audited the Group and the Company financial statements of MobilityOne Limited for the year/period ended31December2007whichcompriseoftheConsolidatedIncomeStatement,ConsolidatedStatementofChangesinEquity,ConsolidatedBalanceSheet,CompanyBalanceSheet,ConsolidatedCashFlowStatement, Company Cash Flow Statement and the related notes. These financial statements have been preparedundertheaccountingpoliciessetouttherein.

ThisreportismadesolelytotheCompany'smembers,asabody,inaccordancewithArticle110oftheCompanies(Jersey)Law1991.OurauditworkhasbeenundertakensothatwemightstatetotheCompany'smembersthosematterswearerequiredtostatetotheminanauditors'reportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany'smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

respective responsibilities of Directors and auditors

The Directors' responsibilities for preparing the financial statements in accordance with applicable law andInternationalFinancialReportingStandardsasadoptedforuseintheEuropeanUnionaresetoutonpage8.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirementsandInternationalStandardsonAuditing(UKandIreland).

We report to you our opinion as to whether the financial statements give a true and fair view and are properly preparedinaccordancewiththeCompanies(Jersey)Law1991andArticle4oftheIASregulation.WealsoreporttoyouwhetherinouropiniontheinformationgivenintheReportoftheDirectorsisconsistentwith the financial statements.

Inaddition,wereporttoyouif,inouropinion,theCompanyhasnotkeptproperaccountingrecords,ifwehave not received all the information and explanations we require for our audit, or if information specified bylawregardingDirectors'remunerationandothertransactionsisnotdisclosed.

WereadotherinformationcontainedintheAnnualReportandconsiderwhetheritisconsistentwiththeaudited financial statements. The other information comprises only the Chairman’s Statement, Corporate GovernanceReportandDirectors’Report.Ourresponsibilitydoesnotextendtoanyotherinformation.

basis of audit opinion

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issuedbytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttothe amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the Directors in the preparation of the Group’s financial statements, andofwhethertheaccountingpoliciesareappropriatetotheGroup’sandtheCompany’scircumstances,consistentlyappliedandadequatelydisclosed.

Weplannedandperformedourauditsoastoobtainalltheinformationandexplanationswhichweconsiderednecessary in order to provide us with sufficient evidence to give reasonable assurance that the Group’s financial statements are free from material misstatement, whether caused by fraud or other irregularity or error.Informingouropinionwealsoevaluatedtheoveralladequacyofthepresentationofinformationinthe financial statements.

rEpOrT Of ThE INDEpENDENT auDITOrS TO ThE MEMBErS Of MOBILITYONE LIMITED


rEpOrT Of ThE INDEpENDENT auDITOrS TO ThE MEMBErS Of MOBILITYONE LIMITED (CONTINuED)

opinion

Inouropinion:

- the Group’s financial statements give a true and fair view, in accordance with International Financial ReportingStandardsasadoptedforuseintheEuropeanUnion,ofthestateofaffairsoftheGroupasat 31 December 2007 and of the profit of the Group for the period then ended;

- the Company’s financial statements give a true and fair view, in accordance with International Financial ReportingStandardsasadoptedforuseintheEuropeanUnion,asappliedinaccordancewiththeprovisionsoftheCompanies(Jersey)Law1991,ofthestateoftheCompany’saffairsasat31December2007;

- the financial statements have been properly prepared in accordance with the Companies (Jersey) Law 1991 and, in relation to the Group financial statements, Article 4 of the IAS regulation; and

- the information given in the Report of the Directors is consistent with the financial statements.

jeffreys Henry llPFinsgateCharteredAccountantsandRegisteredAuditors5-7CranwoodStreetLondonEC1V9EE

Date:23June2008


RevenueCostofsales

gross Profit

OtheroperatingincomeAdministrationexpensesDistributioncosts

oPerating Profit

Financecosts

Profit before taX

Tax

Profit for tHe Year/PerioD

Attributableto:EquityholdersoftheCompany

earning Per sHare

Basicearningspershare(pence)Dilutedearningspershare(pence)

1.4.2006to

31.12.2006£

8,597,494(7,267,468)

1,330,026

21,815(519,699)(305,737)

526,405

(52,454)

473,951

(32,033)

441,918

441,918

0.540.54

1.1.2007to

31.12.2007£

16,573,813(14,448,152)

2,125,661

46,002(835,968)(516,020)

819,675

(54,418)

765,257

(32,168)

733,089

733,089

0.840.84

note

6

7

8

10

The notes form part of these financial statements

CONSOLIDaTED INCOME STaTEMENTFor the year ended 31 December 2007


Asat1April2006Profit for the periodForeigncurrencytranslationAsat31December2006

Asat1January2007Profit for the yearCapitalisedasbonusissuein

subsidiarycompanyConversionofredeemablepreference

sharesinsubsidiarycompanyReverseacquisitionIssueofsharesinMobilityOneLimitedForeigncurrencytranslationAsat31December2007

share premium

£

911--

911

911-

-

-(911)

782,234-

782,234

Distributablenon-Distributable

total£

2,699,614394,075

(160,019)2,933,670

2,933,670764,740

2

293,044-

1,089,734202,524

5,283,714

foreign currency

translation reserve

£

45,254(47,843)

(160,019)(162,608)

(162,608)31,651

-

---

202,52471,567

share capital£

2,017,021--

2,017,021

2,017,021-

438,905

293,044(708,040)307,500

-2,348,430

retained earnings

£

636,428441,918

-1,078,346

1,078,346733,089

(438,903)

----

1,372,532

reverseacquisition

reserve£

----

--

-

-708,951

--

708,951

Sharecapitalistheamountsubscribedforsharesatnominalvalue.

Sharepremiumrepresentstheexcessoftheamountsubscribedforsharecapitaloverthenominalvalueoftherespectivesharesnetofshareissueexpenses.Shareissueexpensesintheyearended31December2007compriseaproportionofthecostsincurredinrespectoftheinitialpublicofferingontheAlternativeInvestmentMarketoftheLondonStockExchange.

ThereverseacquisitionreserverelatestotheadjustmentacquiredbyaccountingforthereverseacquisitioninaccordancewithIFRS3.

TheCompany’sassetsandliabilitiesstatedinthebalancesheetweretranslatedintoPoundSterling(£)usingtheclosingrateasatthebalancesheetdateandtheincomestatementsweretranslatedinto£usingtheaveragerateforthatperiod.Allresultingexchangedifferencesaretakentotheforeigncurrencytranslationreservewithinequity.

RetainedearningsrepresentthecumulativeearningsoftheGroupattributabletoequityshareholders.


CONSOLIDaTED STaTEMENT Of ChaNGES IN EquITYFor the year ended 31 December 2007


assetsnon-current assetsIntangibleassetsProperty,plantandequipmentPrepaidleasepayments

current assetsInventoriesTradereceivablesOtherreceivablesTaxrecoverableAvailable for sale financial assetCashandcashequivalents

liabilitiescurrent liabilitiesTradepayablesOtherpayablesAmountduetoDirectorBorrowings–secured

net current assets

Totalassetslesscurrentliabilities

non-current liabilitiesRedeemablecumulativeconvertiblepreferencesharesBorrowings–securedDeferredtaxliability

net assets

2006£

1,181,990940,148162,967

2,285,105

646,062726,172139,805

--

868,1672,380,206

384,991256,473144,625500,865

1,286,954

1,093,252

3,378,357

289,250152,608

2,829444,687

2,933,670

2007£

1,303,9831,506,937

167,5552,978,475

918,118160,799

1,572,7236,754

45,514348,476

3,052,384

6,280196,462

-359,678562,420

2,489,964

5,468,439

-150,137

34,588184,725

5,283,714

note

111213

151617

1920

2122

23

2324


CONSOLIDaTED BaLaNCE ShEETAs At 31 December 2007


sHareHolDers’ eQuitY

equity attributable to equity holders of the company:

CalledupsharecapitalSharepremiumReverseacquisitionreserveForeigncurrencytranslationreserveRetainedearnings

total eQuitY

2006£

2,017,021911

-(162,608)

1,078,346

2,933,670

2007£

2,348,430782,234708,951

71,5671,372,532

5,283,714

note

2527283738


CONSOLIDaTED BaLaNCE ShEET (CONTINuED)As At 31 December 2007


assetsnon-current assetInvestmentinsubsidiarycompanies

current assetsAmountduefromsubsidiarycompanyCashandcashequivalents

net assets

sHareHolDers’ eQuitY

equity attributable to equity holders of the company:

CalledupsharecapitalSharepremiumRetainedearnings

total eQuitY

2007£

2,040,930

1,010,03362,742

1,072,775

3,113,705

2,348,430782,234(16,959)

3,113,705

note

14

1820

252727


COMpaNY BaLaNCE ShEETAs At 31 December 2007



CONSOLIDaTED CaSh fLOw STaTEMENTFor the year ended 31 December 2007

Cash flow from operating activitiesCash(usedin)/generatedfromoperations Interestpaid Interestreceived Taxpaid

Netcash(usedin)/fromoperatingactivities

Cash flows from investing activities Purchaseofproperty,plantandequipment Purchase of available for sale financial asset AdditiontodevelopmentcostsNetcashusedininvestingactivities

Cash flows from financing activities (Repayment)/drawdownoftermloan Proceedsfromissuanceofordinaryshares

(netoflistingexpenses)

Net cash generated from financing activities

(Decrease)/increase in cash and cash equivalents

effect of foreign exchange rate changes

cash and cash equivalents at beginning of year

cash and cash equivalents at end of year

1.4.2006to

31.12.2006£

194,703(52,454)

343(31,124)

111,468

(35,157)-

(87,831)

(122,988)

653,473

-

653,473

641,953 - 226,214 868,167

1.1.2007to

31.12.2007£

(672,251)(51,260)

625-

(722,886)

(669,977)(45,514)(68,995)

(784,486)

(172,960)

1,089,734

916,774 (590,598) 70,907 868,167 348,476

note

29

20



COMpaNY CaSh fLOw STaTEMENTFor the period ended 31 December 2007

Cash flow from operating activitiesCashusedinoperations

Cash flows from financing activitiesProceedsfromissuanceofordinaryshares(netof

listingexpenses)

increase in cash and cash equivalents

effect of foreign exchange rate changes

cash and cash equivalents at beginning of year

cash and cash equivalents at end of year

22.3.2007to

31.12.2007£

(1,026,992)

1,089,734 62,742 - - 62,742

note

29

20

MOBILITYONE LIMITED 2� AnnuAlrEpOrT 2007

1. general information

TheprincipalactivityoftheCompanyisinvestmentholding.Theprincipalactivitiesofthesubsidiarycompaniesaresetoutin Note 14 to the financial statements. There were no significant changes in the nature of these activities during the year.

TheCompanyis incorporated inJersey,TheChannel IslandsundertheCompanies(Jersey)Law1991.Theregisteredoffice is located at 28-34 Hill Street, St Helier, Jersey JE 4 8FN, Channel Islands. The consolidated financial statements for theyearended31December2007comprisetheresultsoftheCompanyanditssubsidiaryundertakings.TheCompany’ssharesaretradedontheAlternativeInvestmentMarketoftheLondonStockExchange.

MobilityOneLimitedistheholdingcompanyofanestablishedgroupofcompanies(“Group”)basedinMalaysiawhichinthebusinessofprovidinge-commerceinfrastructurepaymentsolutionsandplatformsthroughtheirproprietarytechnologysolutions,whicharemarketedunderthebrandsMoCSTMandABOSSETM.

TheGrouphasdevelopedanend-to-ende-commercesolutionswhichconnectsvariousserviceprovidersacrossseveralindustriessuchasbanking,telecommunicationandtransportationthroughmultipledistributiondevicessuchasEDCterminals,shortmessagingservices,AutomatedTellerMachineandInternetbanking.

The Group’s technology platform is flexible, scalable and has been designed to facilitate cash, debit card and credit card transactions(according to thedevice) frommultipledeviceswhilecontrollingandmonitoring thedistributionofdifferentproductsandservices.

2. accounting Policies

basis of preparationThesefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards ( IFRSsandIFRICinterpretations)issuedbytheInternationalAccountingStandardsBoard(IASB),asadoptedbytheEuropeanUnion, and with those parts of the Companies (Jersey) Law 1991 applicable to companies preparing their financial statements under IFRS. The financial statements have been prepared under the historical cost convention.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are as follows:-

(i) Depreciationofproperty,plantandequipment

Thecostsofproperty,plantandequipmentoftheGrouparedepreciatedonastraight-linebasisovertheusefullivesoftheassets.Managementestimatestheusefullivesoftheplantandequipmenttobewithin5to50years.Thesearecommonlifeexpectanciesappliedintheindustry.Changesintheexpectedlevelofusageandtechnologicaldevelopmentscouldimpacttheeconomicusefullivesandtheresidualvaluesoftheseassets,thereforefuturedepreciationchargescouldberevised.ThecarryingamountsoftheGroup’sproperty,plantandequipmentasat31December2007aredisclosed in Note 12 to the financial statements.

(ii) Amortisationofprepaidleasepayments

ThecostsofprepaidleasepaymentsoftheGroupareamortisedonastraight-linebasisovertheusefullivesoftheassets.Thesearecommonlifeexpectanciesapplied inthe industry.Changes intheexpected levelofusagecouldimpacttheeconomicusefullivesandtheresidualvaluesoftheseassets,thereforefutureamortisationchargescouldberevised.ThecarryingamountsoftheGroup’sprepaidleasepaymentsasat31December2007aredisclosedinNote 13 to the financial statements.

NOTES TO ThE fINaNCIaL STaTEMENTSFor the year ended 31 December 2007


2. accounting Policies (continued)

(iii) Estimationoffairvalueofproperties

Intheabsenceofcurrentpricesinanactivemarketforsimilarproperties,theGroupconsidersinformationfromavarietyofsources,including:

(a) Currentpricesinanactivemarketforpropertiesofadifferentnature,conditionorlocation(orsubjecttodifferentlease or other contracts), adjusted to reflect those differences; or

(b) Recent prices of similar properties based on less active market, with adjustments to reflect any changes in economic conditionssincethedateofthetransactionsthatoccurredatthoseprices.

(iv) Impairmentofgoodwillonconsolidation

TheGroupdetermineswhethergoodwillisimpairedatleastonanannualbasis,inaccordancewiththeaccountingpolicydisclosedinimpairmentofassets.Thisrequiresanestimationofthevalueinuseofthecash-generatingunitstowhichthegoodwillisallocated.EstimatingthevalueinuserequirestheGrouptomakeanestimateoftheexpectedfuturecash flows from the cash-generating unit and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The carrying amount of the Group’s goodwill on consolidation as at 31 December 2007 is disclosed in the Note 11 to the financial statements.

(v) Incometaxes

TheGrouphasexposuretoincometaxesinnumerousjurisdictions.Therearecertaintransactionsandcomputationfor which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is involvedespeciallyindeterminingtaxbaseallowancesanddeductibilityofcertainexpensesindeterminingtheGroup-wideprovisionforincometaxes.TheGrouprecognisesliabilitiesforexpectedtaxissuesbasedonestimatesofwhetheradditional taxes will be due. Where the final tax outcome of theses matters is different from the amounts that were initiallyrecognised,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

(a) standards, amendments and interpretations effective at 31 December 2007

Thefollowinginterpretationstoexistingstandardshavebeenpublishedthataremandatoryforthecompany’saccountingperiodsbeginningonorafter1January2007orlaterperiodsbutthattheCompanyhasnotadoptedearly:

• IFRS 7, ‘Financial Instruments: Disclosure’, and complementary amendment to IAS 1, ‘Presentation of financial

statements – Capital disclosures’, introduces new disclosures relating to financial instruments and does not have any impact on the classification and valuation of the Company’s financial instruments, or the disclosures relating to taxationandtradeandotherpayables.

• IFRIC8, ‘ScopeofIFRS2’,requiresconsiderationoftransactionsinvolvingtheissuanceofequityinstruments,

where the identifiable consideration received is less than the fair value of the equity instruments issues in order toestablishwhetherornottheyfallwithinthescopeofIFRS2.ThisstandarddoesnothaveanyimpactontheCompany’s financial statements.

NOTES TO ThE fINaNCIaL STaTEMENTS (CONTINuED)




(b) standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the group

ThefollowinginterpretationstoexistingstandardshavebeenpublishedthataremandatoryfortheCompany’saccountingperiodsbeginningonorafter1January2008orlaterperiodsbutthattheCompanyhasnotadoptedearly:

• IAS1Revised–PresentationofFinancialStatements(effectivefrom1January2009).Keychangesinclude,therequirement to aggregate information in the financial statements on the basis of shared characteristics, the introduction of a Statement of Comprehensive Income & changes in titles of some of the financial statements.

Preparers of financial statements will have the option of presenting income and expense and components of other comprehensiveincomeeitherinasinglestatementorintwoseparatestatements(aseparateincomestatementfollowedbyastatementofcomprehensiveincome).

The new titles for the financial statements (for example 'statement of financial position' instead of balance sheet) will be used in the accounting standards but are not mandatory for use in financial statements. The expected impact is stillbeingassessedindetailbymanagementastheIASBisinvolvedindiscussionstoexaminemorefundamentalquestions about the presentation of information in financial statements.

• IFRS8–OperatingSegments(effectivefrom1January2009).IFRS8replacesIAS14andalignssegmentreportingwiththerequirementsoftheUSstandardSFAS131,“Disclosuresaboutsegmentsofanenterpriseandrelatedinformation”.Thenewstandardrequiresa“managementapproach”,underwhichsegmentinformationispresentedonthesamebasisasthatusedforinternalreportingpurposes.Theexpectedimpactisstillbeingassessedindetailbymanagement,but itappears likely that thenumberof reportablesegments,aswellas themanner inwhichsegmentsarereported,willchangeinamannerthatisconsistentwiththeinternalreportingprovidedtothechiefoperatingdecision-maker.

(c) interpretations to existing standards that are not yet effective and not relevant for the company’s operations

ThefollowinginterpretationstoexistingstandardshavebeenpublishedandaremandatoryfortheGroup’saccountingperiodsbeginningonorafter1January2008orlaterperiodsbutarenotrelevanttotheGroup’soperations:

IFRIC11– IFRS2–GroupandTreasuryShareTransactions(effectivefrom1March2007)IFRIC12–ServiceConcessionArrangements(effectivefrom1January2008)IFRIC13–CustomerLoyaltyProgrammes(effectivefrom1July2008)IFRIC 14 – IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

(effectivefrom1January2008)





basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company(itssubsidiarycompanies)madeupto31Decembereachyear.ControlisachievedwheretheCompanyhasthepower to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

Transactions,balancesandunrealisedgainsontransactionsbetweenGroupcompaniesareeliminated.Unrealisedlossesarealsoeliminatedbutconsideredanimpairmentindicatoroftheassettransferred.Accountingpoliciesofitssubsidiarycompanieshavebeenchanged(wherenecessary)toensureconsistencywiththepoliciesadoptedbytheGroup.

(i) Subsidiarycompanies

Subsidiary companies are entities over which the Group has the ability to control the financial and operating policies so as to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable orconvertibleareconsideredwhenassessingwhethertheGrouphassuchpoweroveranotherentity.

In the Company’s separate financial statements, investments in subsidiary companies are stated at cost less impairment losses.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincluded in profit or loss.

(ii) Basisofconsolidation

Thesharecapitalintheconsolidatedstatementofchangesinequityfortheboththecurrentandcomparativeperiodusesahistoricexchangeratetodeterminetheequityvalue.

On22June2007MobilityOneLimitedacquiredtheentireissuedsharecapitalofMobilityOneSdn.Bhd.bywayofashareforshareexchange,underIFRSthistransactionmeetsthecriteriaofaReverseacquisition.TheconsolidatedaccountshavethereforebeenpresentedundertheReverseAccountingprinciplesofIFRS3andshowcomparativesfor MobilityOne Sdn. Bhd. For financial reporting purposes, MobilityOne Sdn. Bhd. (the legal subsidiary company) is theacquirerandMobilityOneLimited(thelegalparentcompany)theacquiree.

The consolidated financial statements prepared following the acquisition issued in the name of MobilityOne Limited, but they are a continuance of the financial statements of MobilityOne Sdn. Bhd. Therefore the assets and liabilities of MobilityOne Sdn. Bhd. have been recognised and measured in these consolidated financial statements at their pre-combinationcarryingvalues.Theretainedearningsandotherequitybalancesrecognisedintheseconsolidatedfinancial statements are the retained earnings and other equity balances of MobilityOne Sdn. Bhd. immediately before thebusinesscombination.

The amount recognised as issued equity instruments in the consolidated financial statements has been determined byaddingtheissuedequityofMobilityOneSdn.Bhd.immediatelybeforethebusinesscombinationtothecostoftheconsideration as set out on Note 25. However, the equity structure appearing in these consolidated financial statements (the number and type of equity instruments issued) reflect the equity structure of MobilityOne Limited, including equity instrumentsissuedbytheCompanytoeffecttheconsolidation.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used intolinewiththoseusedbytheGroup.





basis of consolidation (continued)

All inter-group balances and transactions, including unrealised profits arising from intra-group transactions, are eliminated fullyonconsolidation.

Subsidiarycompaniesareconsolidatedfromthedateofacquisition,beingthedateonwhichtheGroupobtainscontrol,and continue to be consolidated until the date that such control ceases. In preparing the consolidated financial statements, intragroupbalances, transactionsandunrealisedgainsor lossesareeliminated in full.Uniformaccountingpoliciesareadopted in the consolidated financial statements for like transactions and events in similar circumstances.

NogoodwillhasbeenrecordedandthedifferencebetweentheparentCompany’scostofinvestmentandMobilityOneSdn.Bhd.’ssharecapitalandsharepremiumispresentedasareverseacquisitionreservewithinequityonconsolidation.

The consolidated financial statements incorporate the financial statements of the Company and all entities controlled by it after eliminating internal transactions. Control is achieved where the Group has the power to govern the financial and operating policies of a Group undertaking so as to obtain economic benefits from its activities. Undertakings’ results are adjusted,whereappropriate,toconformtoGroupaccountingpolicies.

As permitted by and in accordance with Article 110 of the Companies (Jersey) Law 1991, a separate profit and loss account ofMobilityOneLimited,isnotpresented.

revenue recognition

Revenue is recognised when it is probable that economic benefits associated with the transaction will flow to the Group and theamountoftherevenuecanbemeasuredreliably.

(i) Revenuefromtradingactivities

RevenueinrespectofusingtheGroup’se-channelplatformarisesfromthesalesofprepaidcredit,salescommissionsreceivedandfeespertransactionchargedtocustomers.Revenueforsalesofprepaidcredit isdeferreduntilsuchtimeastheproductsandservicesaredeliveredtoendusers.Salescommissionsandtransactionfeesarereceivedfromvariousproductandservicesprovidersandarerecognisedwhentheservicesarerenderedandtransactionsarecompleted.

Revenuefromsolutionsalesandconsultancycomprisesalesofsoftwaresolutions,hardwareequipment,consultancyfeesand maintenance and support services. For sales of hardware equipment, revenue is recognised when the significant risksassociatedwiththeequipmentaretransferredtocustomersortheexpiryoftherightofreturn.Forallotherrelatedsales,revenue isrecognisedupondelivery tocustomersandover theperiod inwhichservicesareexpectedtobeprovidedtocustomers.

(ii) Interestincome

Interestincomeisrecognisedonatimeproportionbasisthattakesintoaccounttheeffectiveyieldontheasset.





Employee benefits

(i) Short term employee benefits

Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasanexpenseintheperiodinwhichtheassociatedservicesarerenderedbyemployeesoftheGroup.Shorttermaccumulatingcompensatedabsencessuchaspaidannualleavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensationabsences.Shorttermnon-accumulatingcompensatedabsencessuchassickandmedical leavearerecognisedwhentheabsencesoccur.

Theexpectedcostofaccumulatingcompensatedabsencesismeasuredastheadditionalamountexpectedtobepaidasaresultoftheunusedentitlementthathasaccumulatedatthebalancesheetdate.

(ii) Defined contribution plans

Asrequiredbylaw,companiesinMalaysiamakecontributionstothestatepensionscheme,theEmployeesProvidentFund(“EPF”).Suchcontributionsarerecognisedasanexpenseintheincomestatementintheperiodtowhichtheyrelate.

operating leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operatingleases.Paymentsmadeunderoperatingleases(netofincentivesreceivedfromthelessor)arechargedtotheincomestatement.

functional currency translation

(i) Functionalandpresentationcurrency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economicenvironmentinwhichtheentityoperates(thefunctionalcurrency).ThefunctionalcurrencyoftheGroupisRinggit Malaysia (RM). The consolidated financial statements are presented in Pound Sterling (£), which is the Company’s presentationalcurrencyasthisisthecurrencyusedinthecountryinwhichtheentityislisted.

AssetsandliabilitiesaretranslatedintoPoundSterling(£)atforeignexchangeratesrulingatthebalancesheetdate.Results and cash flows are translated into Pound Sterling (£) using average rates of exchange for the period.

(ii) Transactionsandbalances

Foreigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingexchangeratesprevailingatthedatesofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsand liabilitiesdenominated in foreigncurrenciesarerecognisedintheincomestatement.

The financial information set out below has been translated at the following rates:

exchange rate (rm: £) at balance sheet date average for year/period Yearended31December2007 6.62 6.87 Periodended31December2006 6.90 6.85




2. accounting Policies (continued) taxation

Taxation on the profit or loss for the financial period comprises current and deferred tax. Current tax is the expected amount of taxes payable in respect of the taxable profit for the financial period and is measured using the tax rates that have been enactedatthebalancesheetdate.

Deferredtaxisrecognisedontheliabilitymethodforalltemporarydifferencesbetweenthecarryingamountofanassetorliabilityinthebalancesheetanditstaxbaseatthebalancesheetdate.Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferencesanddifferedtaxassetsarerecognisedforalldeductibletemporarydifferences,unusedtaxlossesand unused tax credits to the extent that it is probable that future taxable profit will be available against which the deductible temporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.Deferredtaxisnotrecognisedifthetemporarydifferencearisesfromgoodwillornegativegoodwillorfromtheinitialrecognitionofanassetorliabilityinatransactionwhichis not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealisedortheliabilityissettled,basedonthetaxratesthathavebeenenactedorsubstantivelyenactedbythebalancesheetdate.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdateandisreducedtotheextentthat it becomes probable that sufficient future taxable profit will be available.

Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity, inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillornegativegoodwill.

intangible assets

(i) Researchanddevelopmentcosts

Allresearchcostsarerecognisedintheincomestatementasincurred.

ExpenditureincurredonprojectstodevelopnewproductsiscapitalisedanddeferredonlywhentheGroupcandemonstratethe technical feasibilityofcompleting the intangibleassetso that itwillbeavailable foruseorsale, its intention tocomplete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resourcestocompletetheprojectandtheabilitytomeasurereliablytheexpenditureduringthedevelopment.Productdevelopmentexpenditureswhichdonotmeetthesecriteriaareexpensedwhenincurred.

Development costs, considered to have finite useful lives, are stated at cost less any impairment losses and are amortised throughadministrativeexpensesintheincomestatementusingthestraight-linebasisoverthecommerciallivesoftheunderlying products not exceeding five years. Impairment is assessed whenever there is an indication of impairment andtheamortisationperiodandmethodarealsoreviewedatleastateachbalancesheetdate.

(ii) Goodwillonconsolidation

Goodwillacquiredinabusinesscombinationisinitiallymeasuredatcost,representingtheexcessofthepurchasepriceover the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities.

Following the initial recognition,goodwill ismeasuredatcost lessaccumulated impairment losses.Goodwill isnotamortisedbutinstead,itisreviewedforimpairmentannuallyormorefrequentwhenthereisobjectiveevidencethatthecarryingvaluemaybeimpaired,inaccordancewiththeaccountingpolicydisclosedinimpairmentofassets.

Gainsorlossesonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.





impairment of assets

The carrying amounts of assets are reviewed at each reporting date to determine whether there is any indication ofimpairment.

If any such indication exists then the asset’s recoverable amount is estimated. For goodwill that has an indefinite useful life, recoverable amount is estimated at each reporting date or more frequently when indications of impairment are identified.

Animpairment lossisrecognisedif thecarryingamountofanassetor itscash-generatingunitexceedsitsrecoverableamountunlesstheassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossisrecogniseddirectlyagainstanyrevaluationsurplusfortheassettotheextentthattheimpairmentlossdoesnotexceedtheamountintherevaluationsurplus for that same asset. A cash-generating unit is the smallest identifiable asset group that generates cash flows that arelargelyindependentfromotherassetsandgroups.Impairmentlossesarerecognisedintheincomestatementintheperiod in which it arises. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carryingamountofanygoodwillallocatedtotheunitsandthentoreducethecarryingamountoftheotherassetsintheunit(groupofunits)onaproratabasis.

Therecoverableamountofanassetorcash-generatingunitisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Impairmentlossongoodwillisnotreversedinasubsequentperiod.Animpairmentlossforanassetotherthangoodwillisreversedif,andonlyif,therehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Thecarryingamountofanassetotherthangoodwillisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Areversalofimpairmentlossforanassetotherthangoodwillisrecognisedintheincomestatementunlesstheassetiscarriedatrevaluedamount,inwhichcase,suchreversalistreatedasarevaluationincrease.

Property, plant and equipment

(i) Recognitionandmeasurement

Property,plantandequipmentarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses.

Cost includesexpendituresthataredirectlyattributable to theacquisitionof theasset.Thecostofself-constructedassets includes thecostofmaterialsanddirect labour,anyothercostsdirectlyattributable tobringing theasset toworkingconditionforitsintendeduse,andthecostsofdismantlingandremovingtheitemsandrestoringthesiteonwhichtheyarelocated.Purchasedsoftwarethatisintegraltothefunctionalityoftherelatedequipmentiscapitalisedaspartofthatequipment.

Thecostofproperty,plantandequipmentrecognisedasaresultofabusinesscombinationisbasedonfairvalueatacquisitiondate.Thefairvalueofpropertyistheestimatedamountforwhichapropertycouldbeexchangedonthedateofvaluationbetweenawillingbuyerandawillingsellerinanarm’slengthtransactionafterpropermarketingwhereinthepartieshadeachactedknowledgeably,prudentlyandwithoutcompulsion.Thefairvalueofotheritemsofplantandequipmentisbasedonthequotedmarketpricesforsimilaritems.

When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separateitems(majorcomponents)ofproperty,plantandequipment.





Property, plant and equipment (continued) (ii) Subsequentcosts

Thecostofreplacingpartofanitemofproperty,plantandequipmentisrecognisedinthecarryingamountoftheitemif it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measuredreliably.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedintheincomestatementasincurred.

(iii) Depreciation

Depreciationisrecognisedintheincomestatementonastraight-linebasisovertheestimatedusefullivesofproperty,plantandequipment.Leasedassetsaredepreciatedovertheshorteroftheleasetermandtheirusefullives.Property,plantandequipmentunderconstructionarenotdepreciateduntiltheassetsarereadyfortheirintendeduse.

Theestimatedusefullivesforthecurrentandcomparativeperiodsareasfollows:-

Building 50yearsElectronicDataCaptureequipment 10yearsComputerequipment 5yearsComputersoftware 10yearsFurniture and fittings 10 yearsOffice equipment 10 yearsRenovation 10years

Thedepreciableamountisdeterminedafterdeductingtheresidualvalue.

Depreciation methods, useful lives and residual values are reassessed at each financial period end.

Upondisposalofanasset,thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetsischargedorcreditedtotheincomestatement.Ondisposalofarevaluedasset,theattributablerevaluationsurplusremainingintherevaluationreserveistransferredtothedistributionreserve.

investments

Investmentsinsubsidiarycompaniesarestatedatcostlessanyprovisionforimpairment.

Prepaid lease payments

Leasehold land that normally has an indefinite economic life and its title is not expected to pass to the lessee by the end oftheleasetermistreatedasanoperatinglease.Thepaymentmadeonenteringintooracquiringaleaseholdlandisaccounted as prepaid lease payments that is amortised over the lease term except for leasehold land classified as investment property.Thelandandbuildingelementsofaleaseoflandandbuildingsareconsideredseparatelyforthepurposesoflease classification.





Available for sale financial assets

The Group’s investment in equity securities and certain debt securities are classified as available for sale financial assets. Subsequenttoinitialrecognition,theyaremeasuredatfairvalueandchangestherein,otherthanimpairmentlossesandforeignexchangegainsandlossesonavailableforsalemonetaryitems,arerecogniseddirectlyinequity.Whenaninvestmentis derecognised, the cumulative gain or loss in equity is transferred to profit or loss. If an equity instrument cannot be reliably measured,thenitiscarriedatamortisedcost.

inventoriesInventories are valued at the lower of cost and net realisable value and are determined on the first-in-first-out method, after makingdueallowanceforobsoleteandslowmovingitems.Netrealisablevalueisbasedonestimatedsellingpriceintheordinarycourseofbusinesslessthecostsofcompletionandsellingexpenses.trade and other receivables

Tradeandotherreceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredattheircostwhenthecontractualright to receive cash or other financial assets from another entity is established.

AprovisionfordoubtfuldebtsismadewhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdue according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments are considered indicators that a tradeandotherreceivablesareimpaired.

cash and cash equivalents

Cashandcashequivalentsincludecashinhand,depositsheldatcallwithbanks,othershort-termhighlyliquidinvestmentswith original maturities of three months or less which have an insignificant risk of changes in value and bank overdrafts. For the purpose of cash flow statement, cash and cash equivalents are presented net of bank overdrafts.trade and other payables

Tradeandotherpayablesarerecognisedinitiallyatfairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.

Borrowing costs

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets,whichareassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,arecapitalisedaspartofthecostofthoseassets,untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.

When the borrowings are made specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible forcapitalisation is theactualborrowingcosts incurredonthatborrowingduringtheperiod lessany investmentincomeonthetemporaryinvestmentoffundsdrawndownfromthoseborrowings.Whentheborrowingsaremadegenerally,andusedforthepurposeofobtainingaqualifyingasset,theborrowingcostseligibleforcapitalisationaredeterminedbyapplyingacapitalisationratewhichisweightedontheborrowingcostsapplicableto the Group’s borrowings that are outstanding during the financial period, other than borrowings made specifically for the purposeofacquiringanotherqualifyingasset.





Borrowing costs (continued)

Borrowingcostswhicharenoteligibleforcapitalisationarerecognisedasanexpenseintheincomestatementintheperiodinwhichtheyareincurred.

equity instruments

Instruments that evidence a residual interest in the assets of the Group after deducting all of its liabilities are classified as equityinstruments.Issuedequityinstrumentsarerecordedatproceedsreceivednetofdirectissuecosts.

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are showninequityasadeduction,netofvalueaddedtax,fromtheproceeds.

financial instruments

Financialinstrumentscarriedonthebalancesheetincludecashandbankbalances,deposits,investments,receivables,payablesandborrowings.FinancialinstrumentsarerecognisedinthebalancesheetwhentheGrouphasbecomeapartytothecontractualprovisionsoftheinstrument.

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 instrumentsareoffsetwhentheGrouphasalegallyenforceablerighttooffsetandintendstosettleeitheronanetbasisortorealisetheassetandsettletheliabilitysimultaneously.The particular recognition method adopted for financial instruments recognised on the balance sheet is disclosed in the individualaccountingpolicystatementsassociatedwitheachitem.

share based payments ChargesforemployeesservicesreceivedinexchangeforsharebasedpaymentshavebeenmadeforalloptionsgrantedinaccordancewithIFRS2“ShareBasedPayments”optionsgrantedundertheGroup’semployeeshareschemeareequitysettled.ThefairvalueofsuchoptionshasbeencalculatedusingaBlack-scholesmodel,baseduponpubliclyavailablemarketdata,andischargedtotheincomestatementoverthevestingperiod.

3. financial instruments

(a) Financialriskmanagementobjectivesandpolicies

The Group and the Company’s financial risk management policy is to ensure that adequate financial resources are available for the development of the Group and of the Company’s operations whilst managing its financial risks, including foreign currency exchange risk, interest rate risk, market risk, credit risk, liquidity risk and cash flow risk. The Group and the Company operates within clearly defined guidelines that are approved by the Board and the Group’s policy is not toengageinspeculativetransactions.




3. financial instruments (continued)

(b) Interestraterisk

The Group’s and the Company’s income and operating cash flows are substantially independent of changes in market interestrates.InterestrateexposurearisesfromtheGroup’sandtheCompany’sborrowingsanddeposits.TheGroupandtheCompanymonitorstheinterestratesconstantlyalthoughtheprevailinginterestratesarelow.

(c) Creditrisk

TheGroup’sandtheCompany’sexposuretocreditriskarisesmainlyfromreceivables.Receivablesaremonitoredonanongoingbasisviamanagementreportingprocedureandactionistakentorecoverdebtswhendue.Ateachbalancesheet date, there was no significant concentration of credit risk. The maximum exposure to credit risk for the Group and the Company is the carrying amount of the financial assets shown in the balance sheet.

(d) Foreigncurrencyexchangerisk

TheGroupandtheCompanyisexposedtoforeigncurrencyriskonsales,purchasesandborrowingsthataredenominatedinacurrencyotherthanRinggitMalaysia.ThecurrencygivingrisetothisriskisprimarilyUSdollars.TheGroupandtheCompanymaintainsanaturalhedgethatminimisestheforeignexchangeexposurebymatchingforeigncurrencyincomewithforeigncurrencycosts.

TheGroupdoesnotconsideritnecessarytoenterintoforeignexchangecontractsinmanagingitsforeignexchangerisk resulting from cash flows from transactions denominated in foreign currency, given the nature of the business for thetimebeing.

The net unhedged financial liabilities of the Group that are denominated in its functional currency are as follows:-

groupat 31 December 2007Tradepayables

groupat 31 December 2006Tradepayables

(e) Liquidity and cash flow risks

The Group and the Company seeks to achieve a flexible and cost effective borrowing structure to ensure that the projectednetborrowingneedsarecoveredbyavailablecommittedfacilities.DebtmaturitiesarestructuredinsuchawaytoensurethattheamountofdebtmaturinginanyoneyeariswithintheGroup’sandtheCompany’sabilitytorepayand/or refinance.

TheGroupandtheCompanyalsomaintainsacertainlevelofcashandcashconvertibleinvestmentstomeetitsworkingcapitalrequirements.

total£

-

211,221

us Dollars£

-

211,221

net financial liabilities Held in non-functional currency




3. financial instruments (continued)

(f) The carrying amounts of financial liabilities of the Group and the Company at the balance sheet date approximated their fairvaluesexceptforthefollowing:-

The aggregate fair values of the other financial assets and liabilities are as follows:-

group/companyfinancial liabilitiesBankborrowingsContingentliabilitiesRedeemableCumulativeConvertiblePreferenceShare

@ Itisnotpracticabletoestimatethefairvalueofcontingentliabilitiesreliablyduetotheuncertaintiesoftiming,costandeventualoutcome.

The following methods and assumptions are used to estimate the fair values of the following classes of financial instruments:-

(i) Thecarryingamountsofcashandcashequivalents,tradeandotherreceivables/payablesandshorttermborrowingsapproximate fair values due to the relatively short term maturity of these financial instruments.

(ii) The fair value of borrowings is estimated by discounting the expected future cash flows using the current interest rates for liabilities with similar risk profiles.

fair value

£

127,022-

289,061

carrying amount

£

152,609-

289,251

fair value

£

123,484@

-

carrying amount

£

150,1377,556

-

20062007




4. emPloYees anD Directors

emPloYeeWages,salariesandbonusesSocialsecuritycontributionContribution to defined contribution plan

Less:Capitalisedindevelopmentcosts

DirectorsFeesWages,salariesandbonusesSocialsecuritycontributionContribution to defined contribution planTotalremunerationLess:Capitalisedindevelopmentcosts

5. segmental analYsis

TheGroup’sactivitiesaretreatedasasingleclassofbusiness,allarisingfromgoodsandservicesprovidedintheFarEast.Accordingly, no segmental analysis of revenues, profits, assets and liabilities is available for presentation.

6. finance costs

BankchargesandfeesRedeemablecumulativeconvertiblepreferencesharesdividendBankers'acceptanceinterestTermloansinterest

1.4.2006 to31.12.2006

£

269,4094,834

24,823299,066(62,069)

236,997

-19,668

-2,360

22,028(22,028)

-

1.1.2007 to31.12.2007

£

363,9114,381

43,538411,830(55,097)

356,733

58,49845,808

905,497

109,893(14,660)

95,233

group

1.4.2006 to31.12.2006

£

-44,678

-7,776

52,454

1.1.2007 to31.12.2007

£

3,15812,99725,21913,044

54,418

group




7. Profit before taX

The profit before tax is stated after charging/(crediting):

Auditors'remunerationEmployee benefits expense (excluding Directors’ remuneration)Directors’remunerationDepreciationAmortisationofprepaidleasepaymentsOperatingleaseexpenseGainonforeignexchange-realised-unrealised

1.4.2006 to31.12.2006

£

-

236,997-

96,2541,263

11,628

(1,244)(20,183)

1.1.2007 to31.12.2007

£

2,836

356,73395,233

139,8882,617

18,485

--

group




8. taX

current tax expense:UKcorporationtaxfortheperiodForeigntaxUnderprovisioninprioryears:Foreigntax

Deferredtax:-relatingtooriginationandreversaloftemporarydifferences-effectofchangesintaxrate-underprovisioninprioryear

A reconciliation of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense attheeffectiveincometaxrateoftheGroupandoftheCompanyareasfollows:-

Profit before tax

TaxationatUKCorporationtaxrateof30%(2006:30%)EffectofdifferenttaxratesinothercountriesTax benefit applicable to small and medium companiesPioneerstatustaxincentiveEffectofexpensesnotdeductiblefortaxEffectofincomenotsubjecttotaxEffectofchangesintaxrateUnderprovisionoftaxexpensesinprioryearsUnderprovisionofdeferredtaxinprioryear

Taxexpensefortheyear/period

Asat31December2007,theGrouphasunutilisedcapitalallowancesamountingtoapproximately£10,638availableforcarry forward to set-off against future taxable profits. The said amounts are subject to approval by the tax authorities.

Thedirectsubsidiarycompany,MobilityOneSdn.Bhd.,wasgrantedPioneerStatusbytherelevantauthoritiesforaperiodof five years effective from 27 April 2005 to 26 April 2010.

1.4.2006 to31.12.2006

£

--

31,11731,117

916--

916

32,033

1.4.2006 to31.12.2006

£

473,951

142,185(9,804)

--

962(132,427)

-31,117

-

32,033

1.1.2007 to31.12.2007

£

--

1,7241,724

592(1,233)31,08530,444

32,168

1.1.2007 to31.12.2007

£

765,257

229,577(25,321)

(73)(229,744)

26,153-

(1,233)1,724

31,085

32,168

group

group




9. loss of comPanY

The income statement of the Company is not presented as part of these financial statements. The Company's loss for the financial period was £16,959 (2006: NIL).

10. earnings Per sHare

Consolidated profit after taxation (£) Adjusted consolidated profit after taxation (£)

WeightedaveragenumberofsharesinissueFullydilutedweightedaveragenumberofsharesinissue

Basicearningspershare(pence)Dilutedearningspershare(pence)

The basic earnings per share is calculated by dividing the profit of £733,089 (2006: £441,918) attributable to ordinary shareholdersbytheweightedaveragenumberofordinarysharesoutstandingduringtheperiod,whichis87,669,255(2006:81,637,204).

Thedilutedearningspershareiscalculatedusingtheweightedaveragenumberofsharesadjustedtoassumetheconversionofalldilutivepotentialordinaryshares.Fortheyearended31December2007,thedilutedearningspershareisequivalenttothebasicearningspershareastheexercisepriceoftheshareoptionsisabovethecurrentmarketprice.

2006

441,918441,918

81,637,20481,637,204

0.540.54

2007

733,089733,089

87,669,25587,669,255

0.840.84

group




11. intangible assets

Cost

At1January2007AdditionsForeignexchangedifferenceBalanceat31December2007

Amortisationandimpairmentlosses

Netbookvalueat31December2007

At1January2006AdditionsForeignexchangedifferenceBalanceat31December2006

Amortisationandimpairmentlosses

Netbookvalueat31December2006

TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired,byconsideringthe net present value of discounted cash flows forecasts. If an indication exists an impairment review is carried out. At the periodend,therewasnoindicationofimpairmentofthevalueofgoodwillonconsolidationorofdevelopmentcosts.

Goodwill on consolidation

(a) Impairmenttestingforgoodwillonconsolidation

Goodwillonconsolidationhasbeenallocatedforimpairmenttestingpurposestotheindividualentitieswhichisalsothecash-generating units (“CGU”) identified.

(b) Keyassumptionsusedtodeterminerecoverableamount

The recoverable amount of a CGU is determined based on value in use calculations using cash flow projections based on financial budgets approved by the Directors covering a five-year period. A pre-tax discount rate of 8.50% per annum was applied to the cash flow projections, after taking into consideration the Group’s cost of borrowings, the expected rateofreturnandvariousrisksrelatingtotheCGU.

During the financial year, the Group did not recognise any impairment loss in respect of the goodwill on consolidation.

Development costs

Developmentcostswillnotbeamortisediftheproductsisstillinitsdevelopmentphase.Theamortisationofthedevelopmentcostsisover5yearsperiod.Nodevelopmentcostswerechargedtotheincomestatementduringtheperiod.

total£

1,181,99068,99552,998

1,303,983

-

1,303,983

1,183,93287,831

(89,773)1,181,990

-

1,181,990

Development costs

£

195,86168,995

8,781273,637

-

273,637

116,89387,831(8,863)

195,861

-

195,861

Goodwill on consolidation

£

986,129-

44,2171,030,346

-

1,030,346

1,067,039-

(80,910)986,129

-

986,129




12.

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871




13. PrePaiD lease PaYments

cost – leaseHolD lanDAt1JanuaryAdditionsForeignexchangedifference

At31December

amortisation – leaseHolD lanDAt1JanuaryAmortisationfortheyearForeignexchangedifference

At31December

net carrYing amountAt31December

(a) ThelandtitlesofthelongtermleaseholdlandoftheCompanyarestillintheprocessofbeingregisteredinthenameofMobilityOneSdn.Bhd..

(b) Theremainingperiodofleasetermis95years(2006:96years).

(c) TheprepaidleasepaymentshavebeenpledgedtoalicensedbankforcreditfacilitiesgrantedtotheGroupasdisclosedin Note 23 to the financial statements.

14. inVestment in subsiDiarY comPanies

costAt31December

TheCompanyowns100%oftheordinarysharecapitalofMobilityOneSdn.Bhd..MobilityOneSdn.Bhd.owns100%oftheordinarysharecapitalofNetossSdn.Bhd..MobilityOneSdn.Bhd.andNetossSdn.Bhd.areincorporatedandregisteredinMalaysia.TheprincipaltradeofMobilityOneSdn.Bhd.isthatofprovisionofe-Channelproductsandservices,technologymanagedservicesandsolutionsalesandconsultancy.NetossSdn.Bhd.isprincipallyinvolvedintheprovisionofsolutionsalesandservices.

2006£

178,009-

(13,498)

164,511

3041,263

(23)

1,544

162,967

company 2007 £

2,040,930

2007£

164,511-

7,376

171,887

1,5442,617

171

4,332

167,555

group




14. inVestment in subsiDiarY comPanies (continued)

As at 31 December 2007 the aggregate capital and reserves for MobilityOne Sdn. Bhd. were £4,232,099 and the net profit fortheperiodthenendedwas£842,983.

Asat31December2007theaggregatecapitalandreservesofNetossSdn.Bhd.were£6,265andthenetlossfortheperiodthenendedwas£31,123.

TheinvestmentinMobilityOneSdn.Bhd.wasacquiredbyissuing81,637,200ordinary2.5pencesharesofMobilityOneLimitedtotheshareholdersofMobilityOneSdn.Bhd.at2.5penceeach.

IntheopinionoftheDirectors,theaggregatefairvalueoftheCompany’sinvestmentinsubsidiarycompaniesundertakingsisnotlessthantheamountincludedinbalancesheet.

Thedetailsofthesubsidiarycompanies,allofwhichareincorporatedinMalaysiaareasfollows:-

name of subsidiary company

MobilityOneSdn.Bhd.

Direct subsidiary company of mobilityone sdn. bhd.

NetossSdn.Bhd.

country of incorporation

Malaysia

Malaysia

effectiveOwnership Interest

2007 2006 (%) (%)

100 -

100 100

Principal activities

Provision of e-Channel products andservices,technologymanagedservicesandsolutionsalesandconsultancy

Provisionofsolutionsalesandservices

15. inVentories

at cost: AirtimeSoftwareOthers

2006£

261,018384,983

61

646,062

2007£

400,866517,189

63

918,118

group




16. traDe receiVables

TheGroup’sandtheCompany’snormaltradecredittermsrangefrom30to60days(2006:30to60days).Othercredittermsareassessedandapprovedonacasetocasebasis.

17. otHer receiVables

SundryreceivablesDepositsPrepayments

18. amount Due from subsiDiarY comPanY

This represents unsecured interest free advances with no fixed term of repayment.

19. aVailable for sale financial asset

at cost:QuotedunittrustsinMalaysia

at market value:QuotedunittrustsinMalaysia

The recoverable amount of the available for sale financial asset is based on its fair value less cost to sell by reference to itsmarketpriceatbalancesheetdate.

2006£

12,408115,963

11,434

139,805

2007£

1,502,10557,52113,097

1,572,723

group

2006£

-

-

2007£

45,514

45,514

group




20. casH anD casH eQuiValents

CashinhandandatbanksFixeddepositswithlicensedbanks

The above fixed deposits have been pledged to licensed banks as securities for credit facilities granted to the Group as disclosed in Note 23 to the financial statements.

TheGroup’sweightedeffectiveinterestratesandmaturitiesofdepositsare3.7%(2006:3.7%)and12months(2006:12months)respectively.

21. traDe PaYablesTheGroup’snormaltradecredittermsrangefrom60to90days(2006:60to90days).

22. otHer PaYables

SundrypayablesAccruals

23. financial liabilities - borroWings

non-currentSecured:TermloansBankers’acceptance

2006£

--

-

2007£

62,742-

62,742

company2006

£

712,695155,472

868,167

2007£

186,033162,443

348,476

group

2006£

247,1649,309

256,473

2007£

192,5033,959

196,462

group

2006£

152,608-

152,608

2007£

150,137-

150,137

group




23. financial liabilities - borroWings (continued)

currentSecured:TermloansBankers’acceptance

Total BorrowingsSecured:TermloansBankers’acceptance

Theabovecreditfacilitiesfromlicensedbankaresecuredbythefollowing:-(a) fixed charge over the subsidiary company’s long term leasehold land and building;(b) pledge of fixed deposits of the subsidiary company;(c) personalguaranteebyaDirectorofthesubsidiarycompany;and(d) corporateguaranteebytheCompany.

The term loan of the Group is repayable over 90 equal monthly installment of £2,055 each and a final installment of £1,209.

TheweightedaverageeffectiveinterestratesoftheGroupfortheabovefacilitiesareasfollows:-

TermloansBankers’acceptance

Thematurityofborrowingsisasfollows:-

WithinoneyearBetweenoneandtwoyearsBetween two and five yearsAfter five years

2006£

23,603477,262

500,865

176,211477,262

653,473

2006%

8.761.54

2006£

500,86523,60370,80858,197

653,473

2007£

11,370348,308

359,678

161,507348,308

509,815

2007%

7.846.14

2007£

359,67812,37444,08093,683

509,815

group

group

group




24. DeferreD taX liabilitY

At1JanuaryRecognisedintheincomestatementForeignexchangedifference

At31December

Thecomponentsandmovementsofdeferredtaxliabilityduringtheyearpriortooffsettingareasfollows:-

Deferred tax liability of the group:

At1January2007RecognisedintheincomestatementForeignexchangedifference

At31December2007

At1January2006RecognisedintheincomestatementForeignexchangedifference

At31December2006

The availability of the unused tax losses and unabsorbed capital allowances for offsetting against future taxable profits of thesubsidiarycompanyissubjecttonosubstantialchangesinshareholdingsofthesubsidiarycompanyunderSection44(5A)and(5B)ofIncomeTaxAct,1967.

2006£

2,078916

(165)

2,829

total£

2,82930,444

1,315

34,588

2,078916

(165)

2,829

2007£

2,82930,444

1,315

34,588

Property, plant and

equipment£

2,82930,444

1,315

34,588

2,078916

(165)

2,829

group




25. calleD uP sHare caPital

authorised in mobilityone limited

At22March2007(dateofincorporation)–ordinarysharesof£0.05eachAt4June2007Subdivisionofsharesfrom£0.05to£0.025pershare

At31December2007–ordinarysharesof£0.025each

issued and fully paid in mobilityone limited

At22March2007(dateofincorporation)–ordinarysharesof£0.05eachAt4June2007Subdivisionofsharesfrom£0.05to£0.025pershareAt4July2007ShareswapAt5July2007Issuanceofshares

At31December2007-ordinarysharesof£0.025each

Note: # Denotes amounts are less than £1.00

authorised in mobilityone sdn. bhd.At1January2006/31December2006

issued and fully paid in mobilityone sdn. bhd.At1January2006/31December2006

amount£

10,000,000-

10,000,000

##

2,040,930307,500

2,348,430

amount£

3,908,955

2,017,021

number of ordinary

shares

200,000,000200,000,000

400,000,000

22

81,637,20012,300,000

93,937,204

number of ordinary

shares of rm0.10 each

250,000,000

129,000,020




25. calleD uP sHare caPital (continued)

TheCompanywasincorporatedwithauthorisedsharecapitalof£10,000,000dividedinto200,000,000ordinarysharesof£0.05each.Onincorporation,2ordinarysharesof£0.05eachwereissuedforcashat£0.05pershare.

On4June2007,pursuanttoaspecialresolutionoftheshareholdersoftheCompany,thesharecapitaloftheCompanywassub-dividedfrom£10,000,000dividedinto200,000,000ordinarysharesof5penceeachto£10,000,000dividedinto400,000,000ordinarysharesof2.5penceeach.

Pursuanttotheagreementdated22June2007betweenHussian@RizalbinA.Rahman,LimPengKwee,Dato’ShamsirbinOmar,LimLaeYong,WongAhKau@WongMunSang,WongWaiChoong,CheahKingFui,ThornbeamLimited,GHLSystemsBerhad,AlwaysWealthySdn.Bhd.andMobiltyOneLimitedinrelationtotheacquisitionoftheentireissuedsharecapitalofMobilityOneSdn.Bhd.bytheCompany,theentireissuedsharecapitalofMobilityOneSdn.Bhd.wastransferredtotheCompanybyHussian@RizalbinA.Rahman,LimPengKwee,Dato’ShamsirbinOmar,LimLaeYong,WongAhKau@WongMunSang,WongWaiChoong,CheahKingFui,ThornbeamLimited,GHLSystemsBerhadandAlwaysWealthySdn.Bhd.,inconsiderationoftheallotmentandissuebytheCompanytoeachofthemof27,452,107,5,670,777,9,131,677,7,305,341,9,234,409,1,369,751,913,168,16,048,922,3,209,784and1,301,264ordinarysharesof2.5penceeachrespectively.

On22June2007,12,300,000newordinarysharesof2.5pencewereissuedat12.5penceeachpursuanttotheplacingagreementdated25June2007betweentheCompany,theDirectorsandHBCorporate.

Asat31December2007therewere93,937,204ordinarysharesof2.5penceeachinissue.

26. business combinations

On22June2007,MobilityOneLimitedacquired100%oftheissuedsharecapitalofMobilityOneSdn.Bhd.anditssubsidiaryNetossSdn.Bhd.TheacquisitionhasbeenaccountedforasaReverseAcquisitionunderIFRS3,BusinessCombinations.Thedifferencebetweenthenetassetsacquiredandthesharesissuehasbeentreatedasa“reverseacquisitionreserves”withinequity.

NetassetsacquiredReverseacquisitionreserve

Consideration

book value £

2,749,881(708,951)

2,040,930




27. comPanY eQuitY instrument

At1January2007CapitalisedasbonusissueinsubsidiarycompanyConversionofredeemablepreferenceshares insubsidiarycompanyDeficit for the periodIssueofsharesListingexpensesShareswap

At31December2007

28. reVerse acQuisition reserVe

TheacquisitionofMobilityOneSdn.Bhd.byMobilityOneLimited,whichwasaffectedthroughshareexchange,wascompletedon5July2007andresultedinMobilityOneSdn.Bhd.becomingawhollyownedsubsidiaryofMobilityOneLimited.Pursuanttoashareswapagreementdated22June2007theentireissuedandpaid-upsharecapitalofMobilityOneSdn.Bhd.wastransferredtoMobilityOneLimitedbyitsowners.Theconsiderationtotheownerswasthetransferof178,800,024existingordinaryshareandtheallotmentandissuancebyMobilityOneLimitedtotheownersof81,637,200ordinarysharesof2.5peach.Theacquisitionwascompletedon5July2007.TotalcostofinvestmentbyMobilityOneLimitedis£2,040,930,thedifferencebetweencostofinvestmentandMobilityOneSdn.Bhd.sharecapitalof£708,951hasbeentreatedasareverseacquisitionreserve.

total£

2,017,932438,905

293,044(16,959)

1,537,500(447,766)(708,951)

3,113,705

retained earnings

£

--

-(16,959)

---

(16,959)

share premium

£

911-

--

1,230,000(447,766)

(911)

782,234

share capital£

2,017,021438,905

293,044-

307,500-

(708,040)

2,348,430




1.4.2006 to31.12.2006

£

473,951

96,2541,263

52,454(343)

623,579

(152,553)(648,812)

-372,489

194,703

1.1.2007 to31.12.2007

£

765,257

139,8882,617

51,260(625)

958,397

(243,088)(775,450)(144,625)(467,485)

(672,251)

29. reconciliation of Profit/(loss) before taX to casH generateD from oPerations

grouP

Cash flow from operating activities

Profit before taxAdjustmentsfor:

DepreciationAmortisationonprepaidleasepaymentsInterestpaidInterestreceived

Operating profit before working capital changes

IncreaseininventoriesIncreaseinreceivablesDecreaseinamountduetoDirector(Decrease)/Increaseinpayables

Cash flows from operating activities

comPanY

Cash flow from operating activities

LossbeforetaxAdjustmentfor: Gainonforeignexchange–unrealised

Operatinglossbeforeworkingcapitalchanges

Increaseinamountduefromsubsidiarycompany

Cash flows from operating activities

22.3.2007 to 31.12.2007

£

(16,959) (61,811)

(78,770) (948,222)

(1,026,992)




30. financial commitments

capital commitment

authorised and contracted for: InvestmentinPT.MobilityOneIndonesia

31. eXPlanation of transition to ifrs

introduction

MobilityOne Limited and its subsidiary companies (“Group”) have previously prepared its consolidated financial statements underMalaysianGenerallyAcceptedAccountingPractice(GAAP).Witheffectfrom1January2007,itisrequiredtoprepareits consolidated financial statements in accordance within International Reporting Standards (IFRS) as adopted by the EuropeanUnion.

The Group has adopted IFRS from 1 April 2006, the date of transition. The first full set of audited financial statements prepared under IFRS will be for the year ended 31 December 2007, and the first interim report prepared under IFRS is for thehalfyearended30June2007.

TheIFRStransitionstatementhasbeenpreparedtoexplaintheimpactonthereportedresultoftheGroupandtosetoutthechangestotheaccountingpoliciesoftheGrouptogetherwithprovisionofreconciliationsoftherestatementofpreviouslypublished comparative financial information.

ReferencestoIFRSthroughoutthisdocumentrefertotheapplicationofInternationalAccountingStandardsandInternationalFinancialReportingStandards.

Overview of impact of adoption of IFRS

Conversionto IFRSaffects theGroupreportingparticularly inrespectof intangibleassetsandcapitaliseddevelopmentexpenditure. It does not affect the cashflows or the underlying prospects of the business; however, the implementation of thenewstandardsmayresultinincreasedvolatilityinreportedresultduetochangesinaccountingforintangibleassetsanddevelopmentexpenditure.

Ithasnotbeenpossibletoseparatelyidentifydevelopmentexpenditure,whichmetthecriteriaforcapitalisationpriortothedateoftransition.Thereforenocapitalisationwasperformedasatthedateoftransition.

revised group accounting policies under ifrs

The following accounting policies represent changes from the accounting policies stated in the financial statements for the period ended 31 December 2006. The remaining accounting policies remain the same as in the financial statements for the periodended31December2006,whichareconsistentwithIFRS.

2006£

-

2007£

140,543

group




31. eXPlanation of transition to ifrs (continued)

Research and development costs

Allresearchcostsarerecognisedintheincomestatementasincurred.

ExpenditureincurredonprojectstodevelopnewproductsiscapitalisedanddeferredonlywhentheGroupcandemonstratethetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale,itsintentiontocompleteand its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources tocompletetheprojectandtheabilitytomeasurereliablytheexpenditureduringthedevelopment.Productdevelopmentexpenditureswhichdonotmeetthesecriteriaareexpensedwhenincurred.

Development costs, considered to have finite useful lives, are stated at cost less any impairment losses and are amortised throughadministrativeexpenses in the incomestatementusing thestraight-linebasisover thecommercial livesof theunderlying products not exceeding five years. Impairment is assessed whenever there is an indication of impairment and theamortisationperiodandmethodarealsoreviewedatleastateachbalancesheetdate.

The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended 31 December 2007. No adjustments were required to amounts reported previously in financial statements prepared in accordance withitspreviousbasisofaccounting(MalaysianGAAP)bothfortheopeningbalancesheetandthecomparativeinformationfortheperiodended31December2006.

32. relateD PartY transaction

Duringtheyear,MobilityOneSdn.Bhd.waschargedbyNetossSdn.Bhd.£96,710(2006:£303,714)forlicensefeesofterminalsoftware.Atthebalancesheetdate,MobilityOneSdn.Bhd.owedtheCompany£1,010,033(2006:Nil),NetossSdn.Bhd.owedMobilityOneSdn.Bhd.£325,624(2006:£269,259).

Alltransactionswithrelatedpartieswereconductedatarm’slength.

33. ultimate controlling PartY

In theopinionof theDirectors, there isnoultimatecontrollingparty in theCompany for theyearended31December2007.




34. contingent liabilities

Saveasdisclosedbelow,theGrouphasnocontingentliabilitiesarisinginrespectoflegalclaimsarisingfromtheordinarycourseofbusinessandit isnotanticipatedthatanymaterial liabilitieswillarisefromthecontingentliabilitiesotherthanthoseprovidedfor.

limit of guaranteesCorporateguaranteesgiventolicensedbanksbyasubsidiarycompanyforcredit

facilitiesgrantedtoathirdparty

amount utilisedBanker’sguaranteeinfavourofathirdparty

35. Post balance sHeet eVents

Subsequenttotheendoftheyearunderreview,theCompanyhadon15January2008repurchasedatotalof14,962,253sharesforcancellation.Afterthesharebuyback,theissuedsharecapitaloftheCompanyreducedto78,974,951ordinarysharesof2.5penceeach.

On 2 January 2008, the Company’s subsidiary, MobilityOne Sdn. Bhd. had declared and paid a first interim dividend of 55% exempted from income tax under the single tier system in respect of the financial year ending 31 December 2008.

MobilityOneSdn.Bhd.acquireda100%equityinterestinVersatelSdn.Bhd.on23January2008at£0.30(RM2.00)andthenamewassubsequentlychangedtoPayStationSdn.Bhd.on29January2008andisdormantasatto-date.

On12March2008,MobilityOneSdn.Bhd.hasincorporatedanewsubsidiary,PT.MobilityOneIndonesia,inJakartaforthepurposeoffuturebusinessexpansionwithacashconsiderationof£49,564(USD100,000),representing95%oftheissuedandpaidupsharecapitalofPT.MobilityOneIndonesia.

36. going concern

TheGroupisstillatanearlystageofitsdevelopmentandreliesonaccesstofurtherfundinginordertocontinuetodevelopitstechnologyrelatedservices.Thefundsraisedthroughfutureplacingwillbeusedtosupportthefutureoperations.Onthis basis the Directors believe that it is appropriate to prepare the financial statements on a going concern basis.

group2007

£

7,555

-






37. foreign currencY translation reserVe

TheCompany’sassetsandliabilitiesstatedinthebalancesheetweretranslatedintoSterlingPound(£)usingtheclosingrateasatthebalancesheetdateandtheincomestatementsweretranslatedinto£usingtheaveragerateforthatperiod.Allresultingexchangedifferencesaretakentotheforeigncurrencytranslationreservewithinequity.

Asat1January2007Currencytranslationdifferencesduringtheyeardue fromsubsidiarycompanies

Asat31December2007

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statementsofforeignoperationswhosefunctionalcurrenciesaredifferentfromthatoftheGroup’spresentationcurrency.ItisalsousedtorecordtheexchangedifferencesarisingfrommonetaryitemswhichformpartoftheGroup’snetinvestmentinforeignoperations,wherethemonetaryitemisdenominatedineitherthefunctionalcurrencyofthereportingentityortheforeignoperation.

38. retaineD earnings

RetainedearningsrepresentsthecumulativeearningsoftheGroupattributabletoequityshareholders.

Asat1JanuaryProfit for the year/periodCapitalisedasbonusissueinsubsidiarycompany

Asat31December

2006£

45,254

(207,862)

(162,608)

2007£

(162,608)

234,175

71,567

group

1.4.2006 to31.12.2006

£

636,428441,918

-

1,078,346

1.1.2007 to31.12.2007

£

1,078,346733,089

(438,905)

1,372,530

group


39. sHare baseD PaYments

Duringtheyearended31December2007,theGroupgrantedshareoptionsof7,416,558sharesat12.5p2,000,[email protected],SeanBoonChinandDerrickChiaKahWaiand1,416,558toHBCorporate.Nochargehasbeenmadeforthesharebasedpaymentsasitisnotconsideredtobematerial.

Thedetailsoftheshareoptionsareasfollows:-

OutstandingatbeginningofyearGrantedon5July2007

Balancecarriedforward

The fair values of the options granted have been calculated using Black-Scholes model assuming the inputs shownbelow:-

Grantdate 5July2007Sharepriceatgrantdate 12.5pExerciseprice 12.5pOptionlifeinyears 5yearsRiskfreerate 4.40%Expectedvolatility 40%Expecteddividendyield 0%Fairvalueofoptions 2p

Nooptionshavebeenexercised.

exerciseprice

-12.5p

12.5p

number

-7,416,558

7,416,558

company2007




NOTICEISHEREBYGIVENTHATanAnnualGeneralMeetingofmobilitYone limiteD (“company”)willbeheldat9.00a.m.Malaysiatimeon21July2008atMalaysianPetroleumClub,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,Malaysia,andforthepurposeof considering and, if thought fit, adopting the following resolutions, at the meeting, or of any adjournment thereof:

orDinarY resolutions

1. tHattheCompany'saccountsandreportsoftheDirectorsandAuditorsfortheyearended31December2007beadopted.

2. tHat Dato’ Dr. Wan Azmi bin Ariffin is re-elected as a Director.

3. tHatDato’ShamsirbinOmarisre-electedasaDirector.

4. [email protected].

5. tHatDerrickChiaKahWaiisre-electedasaDirector.

6. tHatSeahBoonChinisre-electedasaDirector.

7. tHatKjetilLanglandBohnisre-electedasaDirector.

8. tHatJeffreysHenryLLPofFinsgate,5-7CranwoodStreet,EC1V9EELondon,UnitedKingdombereappointedasAuditorsoftheCompany(inaccordancewithArticle33oftheArticlesofAssociationof the Company) to hold office until the conclusion of the next general meeting.

9. tHat the Directors be authorised to fix the remuneration of the Auditors.

bY orDer of tHe boarD

Dato’ Dr. Wan Azmi bin Ariffin Chairman

Dated:26June2008

NOTICE Of aNNuaL GENEraL MEETING


notes:1 Amemberof theCompanyentitledtoattendandvoteat theabovementionedmeeting isentitled

toappointaproxytoattendand,onapoll,tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.AproxyneednotbeamemberoftheCompany.Amembermayappointmorethanoneproxytoattendonthesameoccasion.

2 Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority(ifany)underwhichitissigned, or a notarially certified copy of such power or authority, shall be deposited with the Company’s registrars,ComputershareInvestorServices(ChannelIslands)Limited,POBox83,OrdinanceHouse,31 Pier Road, St Helier, Jersey JE4 8PW, Channel Islands, or at such other place as is specified for thatpurposeinthenoticeofthemeetingorintheinstrumentofproxyissuedbytheCompanyatleast24hoursbeforethetimeappointedforholdingthemeetingoradjournedmeetingatwhichthepersonnamedintheinstrumentproposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,theinstrumentofproxyshallnotbetreatedasvalid.

3 Completionof the instrumentappointingaproxydoesnotprecludeamember fromsubsequentlyattendingandvotingatthemeetinginpersonifhe/shesowishes.

4 Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesoftheHoldersstandintheregisterofmembersoftheCompany.

5 As permitted by Regulation 40(1) of the Companies (Uncertificated Securities) (Jersey) Order 1999, only personsenteredontheregisterofmembersoftheCompanynotlaterthan48hoursbeforethetimeappointedforthemeetingareentitledtoattendand/orvoteatthemeetinginrespectofthenumberofsharesregisteredintheirnameatthattime.Changestoentriesontheregisterofmembersafterthattimewillbedisregardedindeterminingtherightsofanypersontoattendand/orvoteatthemeeting.

NOTICE Of aNNuaL GENEraL MEETING (CONTINuED)

Thispagewasintentionallyleftblank.

notes:1. AmemberoftheCompanyentitledtoattendandvoteattheabovementionedmeetingisentitledtoappointaproxytoattendand,onapoll,

tovoteinhis/herplace.Aproxymaydemand,orjoinindemanding,apoll.AproxyneednotbeamemberoftheCompany.Amembermayappointmorethanoneproxytoattendonthesameoccasion.

2. The instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed, or a notarially certified copy ofsuchpowerorauthority,shallbedepositedwiththeCompany’sregistrars,ComputershareInvestorServices(ChannelIslands)Limited,PO Box 83, Ordinance House, 31 Pier Road, St Helier, Jersey JE4 8PW, Channel Islands, or at such other place as is specified for that purposeinthenoticeofthemeetingorintheinstrumentofproxyissuedbytheCompanyatleast24hoursbeforethetimeappointedforholdingthemeetingoradjournedmeetingatwhichthepersonnamedintheinstrumentproposestovoteor,inthecaseofapoll,atleast24hoursbeforethetimeappointedfortakingthepolland,indefault,theinstrumentofproxyshallnotbetreatedasvalid.

3. Completionoftheinstrumentappointingaproxydoesnotprecludeamemberfromsubsequentlyattendingandvotingatthemeetinginpersonifhe/shesowishes.

4. Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevotesoftheotherjointholders,andseniorityshallbedeterminedbytheorderinwhichthenamesoftheHoldersstandintheregisterofmembersoftheCompany.

5. As permitted by Regulation 40(1) of the Companies (Uncertificated Securities) (Jersey) Order 1999, only persons entered on the register of membersoftheCompanynotlaterthan48hoursbeforethetimeappointedforthemeetingareentitledtoattendand/orvoteatthemeetinginrespectofthenumberofsharesregisteredintheirnameatthattime.Changestoentriesontheregisterofmembersafterthattimewillbedisregardedindeterminingtherightsofanypersontoattendand/orvoteatthemeeting.

for against WitHHolDorDinarY resolutions

1. THATtheCompany'saccountsandreportsoftheDirectorsandAuditorsfortheyearended31December2007beadopted.

2. THAT Dato’ Dr. Wan Azmi bin Ariffin is re-elected as a Director

3. THATDato’ShamsirbinOmarisre-electedasaDirector

4. [email protected].

5. THATDerrickChiaKahWaiisre-electedasaDirector.

6. THATSeahBoonChinisre-electedasaDirector.

7. THATKjetilLanglandBohnisre-electedasaDirector.

8. THATJeffreysHenryLLPofFinsgate,5-7CranwoodStreet,EC1V9EELondon,UnitedKingdombereappointedasAuditorsoftheCompany(inaccordancewithArticle33oftheArticlesofAssociationoftheCompany)to hold office until the conclusion of the next general meeting.

9. THAT the Directors be authorised to fix the remuneration of the Auditors.

if by an individual:

Signed:....................................................................................

Dated:.............................................................................2008

If for and on behalf of a corporation:

Signed by: .................................................................................

for and on behalf of: ...................................................................

Position: ....................................................................................

Dated:.............................................................................2008

I/We:(fullname)………………………………………of(address)……………………………………………………..beingamember

ofMobilityOneLimited,doherebyappoint:(fullname)…………………………………………………………………………….......or

failinghim:(fullname)……………………………………………………………………………….......orfailinghimtheChairmanof

theMeetingasmy/ourproxytoattendtheAnnualGeneralMeetingofMobilityOneLimitedtobeheldatMalaysianPetroleum

Club,Level42,Tower2,PetronasTwinTowers,KualaLumpurCityCentre,50088KualaLumpur,Malaysiaon21July2008at

9.00a.m.Malaysiatimeoranyadjournmentthereof.

Please indicate by marking “X” in the respective box. If no indication is given, your proxy will have discretion to vote or to abstain (including on any other matter which may properly come before the meeting as he/she thinks fit).

I/Werequestsuchproxytovoteasindictedbelow:

ThEN fOLD hErE

fIrST fOLD hErE

affIXSTaMp

Company's registrarsmobiltyone limitedpO BOX ��, OrDINaNCE hOuSE

�� pIEr rOaD, ST hELIEr

JErSEY JE� �pw

ChaNNEL ISLaNDS

fOLD ThIS fLap fOr SEaLING

REGISTERED Walker House OFFICE PO Box 72 28-34 Hill Street Jersey JE4 8PN Channel Islands BUSINESS No.2, 9th Floor, Wisma Menjalara ADDRESS Jalan 7A/62A, Bandar Menjalara 52200 Kuala Lumpur Malaysia Tel: +(603) 6286 1999

Documents

MOBILITYONE LIMITED ANNUAL REPORT 2007 · Hussian @ rizal bin a. raHman ... The financial statements are required by . MOBILITYONE LIMITED MOBILITYONE LIMITED MOBILITYONE LIMITED