------'
Y. L. NGAN &COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
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HONG KONG HEAVY TRADE
COMPANY LIMITED
REPORTS AND FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY 2014
TO 31 MAY 2014
CONTENTS PAGES
REPORT OF THE DIRECTOR 1-2
INDEPENDENT AUDITOR'S REPORT 3-4
INCOME STATEMENT 5
BALANCE SHEET 6
ACCOUNTING POLICIES AND EXPLANATORY 7 -10
NOTES TO THE FINANCIAL STATEMENTS
HONG KONG HEAVY TRADE COMPANY LIMITED
REPORT OF THE DIRECTOR
The director presents herewith his report and the audited financial statements for the period
from 1 January 2014 to 31 May 2014.
PRINCIPAL ACTIVITY
The company is dormant during the period.
STATE OF THE COMPANY'S AFFAIRS
The state of the company's affairs as at 31 May 2014 is set out in the balance sheet on page 6.
Pursuant to section 141 D of the Hong Kong Companies Ordinance, the shareholder of the
company has agreed that the financial statements for the period from I January 2014 to 3 I
May 2014 are to comply with section 141 D and provisions of the Eleventh Schedule of the
Hong Kong Companies Ordinance.
DIVIDEND AND RESERVES
The director does not recommend the payment of dividend for the period.
Loss for the period from 1 January 2014 to 31 May 2014 was HK$7,576,883 (2013:
HK$18,937). Movements in changes in equity of the company are shown in note 9 to the
financial statements.
DIRECTOR
The director who held office during the period and up to the date of this report was:
JIN Jun
In accordance with the company's Articles of Association of the company, the present
director, except permanent director if any is appointed, shall retire from office and, being
eligible, offer himself for re-election.
MANAGEMENT CONTRACTS
No contracts concerning the management and administration of the whole or any substantial
part of the business of the company were entered into or existed during the period.
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HONG KONG HEAVY TRADE COMPANY LIMITED
REPORT OF THE DIRECTOR
(CONTINUED)
DIRECTOR'S INTERESTS IN CONTRACTS
No contracts of significance in relation to the company's business to which the company was
a party and in which a director of the company had a material interest, whether directly or
indirectly, subsisted at the end of the period or at any time during the period.
DIRECTOR'S RIGHTS TO ACQUlRE SHARES OR DEBENTURES
At no time during the period was the company a party to any arrangement to enable the
director of the company to acquire benefits by means of the acquisition of shares in or
debentures of the company or any other body corporate.
AUDITORS
The financial statements have been audited by Messrs. Y. L. Ngan & Company, Certified
Public Accountants, who retire and being eligible, offer themselves for re-appointment.
Sole Director
Hong Kong, 13 jJune 2014
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Y. L. NGAN & COMPANY Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
TO THE SHAREHOLDER OF
HONG KONG HEAVY TRADE COMPANY LIMITED
(INCORPORATED IN HONG KONG WITH LIMITED LIABILITY)
REPORT ON THE FINANCIAL STATEMENTS
We have audited the financial statements of Hong Kong Heavy Trade Company Limited set out on
pages 5 to 10 which comprise the balance sheet as at 31 May 2014, and the income statement for
the period then ended, and a summary of significant accounting policies and other explanatory
information.
DIRECTOR'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The director is responsible for the preparation of financial statements in accordance with the Small
and Medium-sized Entity Financial Reporting Standard (SME-FRS) issued by the Hong Kong
Institute of Certified Public Accountants, and for such internal control as the director determines is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In addition, section 1410 of the Hong Kong Companies Ordinance requires that the balance sheet
together with the notes thereon should be prepared in accordance with the requirements of the
Eleventh Schedule to that Ordinance.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. This
report is made solely to you, as a body, in accordance with section 1410 of the Hong Kong
Companies Ordinance, and for no other purpose. We do not assume responsibility towards or
accept liability to any other person for the contents of the report.
We conducted our audit in accordance with Hong Kong Standards on Auditing and with reference
to PN 900 (Clarified) "Audit of Financial Statements Prepared in Accordance with the Small and
Medium-sized Entity Financial Reporting Standard" issued by the Hong Kong Institute of
Certified Public Accountants. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by the director, as well as evaluating the overall presentation of the financial statements.
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Y. L. NGAN & COMPANY Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
TO THE SHAREHOLDER OF
HONG KONG HEAVY TRADE COMPANY LIMITED
(INCORPORATED IN HONG KONG WITH LIMITED LIABILITY)
(CONTINUED)
AUDITOR'S RESPONSIBILITY (CONTINUED)
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
BASIS FOR QUALIFIED OPINION
No bank confinnation has been received from bank up to the date of this report. There were
no other audit procedures that we could adopt to confinn all bank balance, bank loan and
contingent liabilities.
QUALIFIED OPINION
In our opinion, except for the effects of the matter described in the Basis for Qualified
Opinion paragraph, the financial statements of the company for the period from 1 January
2014 to 31 May 2014 are prepared, in all material respects, in accordance with the SME-FRS,
and the balance sheet together with the notes thereon is properly drawn up so as to exhibit a
true and correct view of the state of the company's affairs as at 31 May 2014 according to the
best of our infonnation and explanations given to us, and as shown by the books of the
company.
REPORT ON OTHER MATTERS UNDER SECTION 1410 OF THE HONG KONG
COMPANIES ORDINANCE
Except for the matters stated in the basis for qualified opinion paragraph, we report that we
have obtained all the infonnation and explanations which we have required.
Y. ~. Ngan & Company
Certified Public Accountants (Practising)
Hong Kong, 13 June 2014
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HONG KONG HEAVY TRADE COMPANY LIMITED
INCOME STATEMENT
FOR THE PERIOD FROM 1 JANUARY 2014
TO 31 MAY 2014
01.01.2014 01.01.2013
to to
31.05.2014 31.12.2013
HK$ HK$
TURNOVER 3
OTHER INCOME 3 2
ADMINISTRATIVE EXPENSES (7,576,875) (18,933)
FINANCE COSTS 4 (9) (6)
LOSS BEFORE TAXATION 5 (7,576,883) (18,937)
INCOME TAX 6
LOSS FOR THE PERIOD / YEAR (7,576,883)
(18,937)
The accompanying Accounting Policies and Explanatory Notes [onn an integral part of, and
should be read in conjunction with, these financial statements.
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HONG KONG HEAVY TRADE COMPANY LIMITED
BALANCE SHEET
AS AT 31 MAY 2014
31.05.2014 31.12.2013
HK$ HK$
CURRENT ASSETS
Amount due from a shareholder 10 7,569,211
Cash and bank balances 49,265 61,577
49,265 7,630,788
CURRENT LIABILITIES
Accrued expenses (6,650) (11,290)
-------------- --------------
NET ASSETS 42,615 7,619,498
============
EQUITY
Share capital 8 7,730,000 7,730,000
Accumulated losses (7,687,385) (110,502)
42,615 7,619,498
Approved and authorised for issue by the sole director on 13 June 2014
The accompanying Accounting Policies and Exp anatory Notes fotm an integral part of, and
should be read in conjunction with, these financial statements.
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HONG KONG HEAVY TRADE COMPANY LIMITED
ACCOUNTING POLICIES AND EXPLANTORY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY 2014
T031 MAY 2014
1. GENERAL INFORiVIATION
Hong Kong Heavy Trade Company Limited is a company incorporated in Hong Kong
with limited liability. The company's registered office is located at Suite 1019, 10/F.,
Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui East, Kowloon, Hong Kong. The
company is dormant during the period.
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
The company qualifies under the Hong Kong Companies Ordinance to prepare and
present its financial statements in accordance with section 1410 of that Ordinance. The
company's shareholder has unanimously agreed in writing to apply section 1410 with
respect to the company's financial statements for the period from 1 January 2014 to 31
May 2014.
These financial statements comply with the Small and Medium-sized Entity Financial
Reporting Standard ("SME-FRS") issued by the Hong Kong Institute of Certified Public
Accountants ("HKICPA"). They have been prepared under the historical cost convention,
the accrual basis of accounting and on the basis that the company is a going concern.
The following are the significant accounting policies that are necessary for a proper
understanding of the financial statements:
a) REVENUE RECOGNITION
Revenue is recognised when it is probable that the economic benefits will flow to the
company and when the revenue can be measured reliably, on the following base:
Interest income is recognised on a time proportion basis, taking into account the
principal amounts outstanding and the interest rates applicable.
b) INCOME TAX
Income tax represents current tax expense. The income tax payable represents the
amounts expected to be paid to the taxation authority, using the tax rates (and tax laws)
that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is not provided.
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HONG KONG HEAVY TRADE COMPANY LIMITED
ACCOUNTING POLICIES AND EXPLANTORY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY 2014
TO 31 MAY 2014
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
c) PROVISION
Provision is recognised when the company has a present legal or constructive
obligation as a result of a past event, it is probable that an outflow of resources will be
required to settle the obligation, and a reliable estimate of the amount can be made.
Where the company expects a provision to be reimbursed, for example under an
insurance contract, the reimbursement is recognised as a separate asset but when the
reimbursement is virtually certain.
d) FOREIGN EXCHANGE
Foreign currency transactions are translated at the exchange rate applicable at the
transaction date. Foreign currency monetary items are translated into Hong Kong
Dollars using exchange rates applicable at the balance sheet date. Gains and losses
on foreign exchange are recognised in the income statement.
e) RELATED PARTIES
For the purposes of these financial statements, parties are considered to be related if
the company has the ability, directly or indirectly, to control the party or exercise
significant influence over the party in making financial and operating decisions, or
vice versa, or where the company and the party are subject to common control or
common significant influence. Related parties may be individuals or other entities and
include entities which are under the significant influence of related parties of the
company where those parties are individuals, and post-employment benefit plans
which are for the benefit of employees of the company or of any entity that is a related
party of the company.
f) IMPAIRMENT OF ASSETS
An assessment is made at each balance sheet date to determine whether there is any
indication of impairment or reversal of previous impairment, including items of
property, plant and equipment, intangible assets and long-term investments. In the
event that an asset's carrying amount exceeds its recoverable amount, the carrying
amount is reduced to recoverable amount and an impairment loss is recognised in the
income statement. A previously recognised impairment loss is reversed only if there
has been a change in the estimates used to determine the recoverable amount, however
not to an amount higher than the carrying amount that would have been determined
(net of depreciation), had no impairment losses been recognised for the asset in prior
years.
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HONG KONG HEAVY TRADE COMPANY LIMITED
ACCOUNTING POLICIES AND EXPLANTORY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY 2014
TO 31 MAY 2014
3. TURNOVER AND OTHER INCOME
An analysis of the company's turnover and other income is as follows:
01.01.2014 01.01.2013
to to
31.05.2014 31.12.2013
HK$ HK$
Turnover
Other income
Bank interest received
2
Total revenue 2
4. FINANCE COSTS
01.01.2014 01.01.2013
to to
31.05.2014 31.12.2013
HK$ HK$
Bank overdraft interest 9 6
::=::========
5. LOSS BEFORE TAXATION
Loss before taxation is arrived at:
01.01.2014 01.01.2013
to to
31.05.2014 31.12.2013
HK$ HK$
After crediting the following item:
Bank interest received
2
And after charging the following items:
Auditors' remuneration 6,000 10,000
Bank overdraft interest 9 6
6. INCOME TAX
No Hong Kong profits tax has been provided as the company has no assessable profits
for the period.
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HONG KONG HEAVY TRADE COMPANY LIMITED
ACCOUNTING POLICIES AND EXPLANTORY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY 2014
TO 31 MAY 2014
7. DIRECTOR'S REMUNERATION
Director's remuneration disclosed pursuant to section 161 of the Hong Kong Companies
Ordinance is as follows:
01.01.2014 01.01.2013
to to
31.05.2014 31.12.2013
HK$ HK$
Fees
Other emoluments
Contributions to defined contribution plan
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8. SHARE CAPITAL
31.05.2014 31.12.2013
HK$ HK$
Authorised:
1,000,000 ordinary shares at US$1.00 each 7,730,000 7,730,000
Issued and fully paid:
1,000,000 ordinary shares at US$I.00 each 7,730,000 7,730,000
----------
-------- ---------
There was no movement in the issued share capital of the company for the period from 1
January 2014 to 31 May 2014.
9. CHANGES IN EQUITY
Share Accumulated
capital losses Total
HK$ HK$ HK$
Total equity as at 31 December 2013 7,730,000 (110,502) 7,619,498
Loss for the period (7,576,883 ) (7,576,883 )
Total equity as at 31 May 2014 7,730,000 (7,687,385) 42,615
========= =========
10. AMOUNT DUE FROM A SHAREHOLDER
The amount due from a shareholder is unsecured, interest-free and repayable on demand.
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