10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ______________

Commission File Number: 000-30801   

FIRST ASIA HOLDINGS LIMITED

(Exact name of registrant as specified in its charter)

Canada	N/A
(State or other jurisdiction of incorporation)	(IRS Employer Identification Number)
Suite 823-825, 8/F Ocean Center, Harbour City, 5 Canton Road Tsim Sha Tsui Kowloon, Hong Kong
(Address of principal executive offices)
(852) 31523168
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  [ X ] Yes   [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ) [  ] Yes [ X ] No.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ]  (Do not check if a smaller reporting company)	Smaller reporting company [ X ]

1

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     [  ] Yes   [ x ] No

As of August 19, 2014 the Issuer had 62,351,282 shares of common stock issued and outstanding.

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PART I-FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

The financial statements of First Asia Holdings Limited, a Canadian corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission.  Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the Company in the Company's Form 10-K, and all amendments thereto, for the fiscal year ended September 30, 2013.

FIRST ASIA HOLDINGS LIMITED

FINANCIAL STATEMENTS

PERIOD ENDED JUNE 30, 2014

INDEX TO FINANCIAL STATEMENTS:	Page
Balance Sheet	4
Statements of Operations	5
Statements of Cash Flows	6
Notes to Unaudited Financial Statements	7-13

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First Asia Holdings Limited

Condensed Balance Sheets

(Stated in Canadian Dollars)

As of June 30, 2014 and September 30, 2013

		June  30		September 30
		2014		2013
		(Unaudited)		(Audited)
ASSETS
Current assets
Cash and cash equivalent	$	127,541	$	740,368
Loans receivable		9,612,187		7,175,467
Prepayment, deposits and other receivable		557,740		1,072,478
Total current assets		10,297,468		8,988,313
Goodwill		4,200,376		4,200,376
Property, plant and equipment		17,510,745		17,876,391
TOTAL ASSETS	$	32,008,589	$	31,065,080
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Current liabilities
Bank overdraft – secured	$	1,730,821	$	2,055,695
Mortgage payable – secured		6,468,277		6,630,497
Accounts payable and accrued liabilities		1,432,542		1,334,636
Accounts payable, related parties, net		2,231,456		1,910,701
Income taxes payable		302,020		162,020
Total current liabilities		12,165,116		12,093,549
TOTAL LIABILITIES		12,165,116		12,093,549
STOCKHOLDERS’ EQUITY
First preference shares without par value, authorized -
Unlimited; issued and outstanding – Nil
Common shares without par value, authorized – unlimited;
Issued and outstanding: 62,351,282  at June 30, 2014     62,347,270 at September 30, 2013)		23,950,085		23,944,085
Reserves		(4,124,745))		(4,990,687)
TOTAL STOCKHOLDERS’ SURPLUS – First Asia Holdings Ltd.		19,825,340		18,953,398
Non-controlling interests		18,133		18,133
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	32,008,589	$	31,065,080

See Notes to Consolidated Financial Statements

4

First Asia Holdings Limited

Condensed Statements of Operations

(Stated in Canadian Dollars)

For the Three Months Ended June 30, 2014

And For the Three Months Ended June 30, 2013

		9 months ended June 30		3 months ended June 30
		2014	2013	2014	2013
REVENUE	$	2,512,963	1,145,540	587,528	445,613
DIRECT COST		-	-	-	-
GROSS PROFIT		2,512,963	1,145,540	587,528	445,613
OPERATING EXPENSES
Selling and distribution		71,038	47,199	28,362	9,566
General, finance and administrative		1,466,671	1,120,116	529,435	428,466
PROFIT/(LOSS) FROM OPERATIONS		1,537,709 975,254	1,167,315 (21,775)	557,797 29,731	438,032 7,581
Other income		30,687	20,917	68,921	1,057
PROFIT/(LOSS) BEFORE TAX	$	1,005,941	(858)	98,652	8,638
Taxation		(140,000)	(39,000)	-	(5,000)
		865,941	(39,858)	98,652	3,638
Attributable to non-controlling		-	-	-	-
Interest
NET PROFIT/(LOSS)		865,941	(39,858)	98,652	3,638
NET PROFIT/(LOSS) PER SHARE
- BASIC AND DILUTED	$	0.014	(0.000)	0.002	0.000
WEIGHTED AVERAGE SHARE OUTSTANDING
BASIC AND DILUTED		62,346,270	62,346,270	62,346,270	62,346,270

See Notes to Consolidated Financial Statements

5

First Asia Holdings Limited

Condensed Statement of Cash Flows

(Stated in Canadian Dollars)

For the Nine Months Ended June 30, 2014

And For the Nine Months Ended June 30, 2013

	9 months ended	9 months ended
	June 30, 2014	June 30, 2013
	(unaudited)	(unaudited)
		(Restated)
Cash flows from operating activities
Profit / (loss) for the period after tax	865,941	(39,858)
Adjustments to reconcile net income to net
Cash (used in) provided by operating activities:
Depreciation	365,646	321,261
Provision for taxation	140,000	39,000
Cash effect of changes in:
Deposit, prepayment and other receivables	514,738	(84,391)
Loan receivable	(2,436,720)	(2,943,997)
Accounts payables and accrued liabilities	97,906	(58,989)
Net cash inflow / (outflow) from operating activities	(452,489)	(2,766,974)
Financing activities
Issue of shares	6,000	1,011,850
Repayment of bank overdraft	(324,874)	1,547,171
Advance from related parties	320,756	607,436
Repayment of mortgage loan	(162,220)	(147,645)
Net cash (outflows)/inflows from financing activities	(160,338)	3,018,812
Net (decrease)/increase in cash and cash equivalents	(612,827)	251,838
Cash and cash equivalents - beginning of period	740,368	207,380
Cash and cash equivalents - end of period	127,541	459,218

See Notes to Consolidated Financial Statements

6

First Asia Holdings Limited

Notes to the Interim Financial Statements

June 30, 2014 (unaudited)

1.  BASIS OF PRESENTATION

The accompanying interim consolidated financial statements of First Asia Holdings Limited (the "Company") are unaudited and have been prepared in accordance with United States generally accepted accounting principles ("US GAAP") for interim financial statements. Accordingly, they do not include certain disclosures normally included in annual financial statements prepared in accordance with such principles.

In preparing these interim financial statements, management was required to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. In the opinion of management, these interim financial statements reflect all adjustments (which include only normal, recurring adjustments) necessary to state fairly the results for the periods presented. Actual results could differ from these estimates and the operating results for the interim period presented is not necessarily indicative of the results expected for the full year.

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Principles of consolidation

In preparing these consolidated financial statements, management was required to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. In the opinion of management, these financial statements reflect all adjustments (which include only normal, recurring adjustments) necessary to state fairly the results for the periods presented. Actual results could differ from these estimates and the operating results for the interim period presented is not necessarily indicative of the results expected for the full year/period.

For the quarter ended and as of June 30, 2014, the consolidated financial statements include the accounts of the Company and the following subsidiaries:

A) Wholly-owned subsidiaries

a) Hong Kong Companies

1.

First Asia Finance Limited

2.

Hung Lee Development Limited

3.

First Asia Tower Limited (Formerly known as Galaxy Garment Limited)

4.

Giant Management Corporation Limited

b) Marshall Islands Companies

1.

Vagas Lane Limited

2.

Paris Sky Limited

c) Cayman Islands Company

1.  Hotel Fund Limited

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B) Non-wholly-owned subsidiary (Hong Kong Company)

1.

First Asia Estate Limited (60% owned)

All significant inter-company balances and transactions have been eliminated.

(b) Economic and Political Risk

All the Company’s operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s economy may influence the Company’s business, financial condition, and results of operations.

The Company’s major operations in Hong Kong are subject to considerations and significant risks typically associated with economies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

(c)

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.

(d)

Accounts Receivable

Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No bad debt was incurred during the quarter ended June 30, 2014.

(e)

Loans receivables

Interest income is recorded on an accrual basis to the extent that such amounts are expected to be collected. Origination and/or closing fees associated with investments in portfolio companies are accreted into income over the respective terms of the applicable loans. Upon the prepayment of a loan or debt security, any prepayment penalties and unamortized loan origination, closing and commitment fees are recorded as income. Prepayment premiums are recorded on loans when received.

For loans with contractual payment-in-kind interest or dividends, which represent contractual interest/dividends accrued and added to the loan balance or liquidation preference

An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No bad debt was incurred during the quarter ended June 30, 2014.

(f)

Property, Plant and Equipment

Property, Plant and equipment are carried at cost less accumulated depreciation. The cost of maintenance and repairs is charged to the statement of operations as incurred, whereas significant renewals and betterments are capitalized. The cost and the related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of operations.

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(g)

Depreciation and Amortization

The Company provides for depreciation of property, plant and equipment principally by use of the straight-line method for financial reporting purposes. Property, Plant and Equipment are depreciated over the following estimated useful lives:

Leasehold land and building

50 years

Leasehold improvement

5 years

Office equipment               

4 years

Computer equipment

4 years

(h)

Accounting for the Impairment of Goodwill

ASC 350 (“Intangibles-Goodwill and Other”) requires that goodwill and intangible assets that have indefinite lives not be amortized but, instead, tested at least annually for impairment. Management uses a discounted cash flow analysis, which requires that certain assumptions and estimates be made regarding industry economic factors and future profitability of acquired businesses to assess the need for an impairment charge. The Company has elected the fourth quarter to complete its annual goodwill impairment test.

The book values of goodwill are tested annually for impairment, or more frequently, if facts and circumstances indicate the need. Fair value measurement techniques, such as the discounted cash flow methodology, are utilized to assess potential impairments. The testing is performed at the reporting unit level, which can be either an operating segment or one level below operating segment. In the discounted cash flow method, the Company discounts forecasted performance plans to their present value. The discount rate utilized is the weighted average cost of capital for the reporting unit, calculated as the opportunity cost to all capital providers weighted by their relative contribution to the reporting unit’s total capital and the risk associated with the cash flows and the timing of the cash flows. Comparison methods (e.g., peer comparables) and other estimation techniques are used to verify the reasonableness of the fair values derived from the discounted cash flow assessments.

The impairment test is performed in two stages. If the first stage does not indicate that the carrying values of the reporting units exceed the fair values, the second stage is not required. When the first stage indicates potential impairment, the company has to complete the second stage of the impairment test and compare the implied fair value of the reporting units’ goodwill to the corresponding carrying value of goodwill.

Subsequent to the annual impairment test, the Company undertook a review of its current strategy and determined that there was both a decrease in its future projected income based on the current environment and a need for a new management strategy. For the quarter ended June 30, 2014 and the year ended September 30, 2013, there was no impairment charge recognized.

(i) Income Tax

The Company has adopted the provisions of statements of Financial Accounting Standards No. 109, "Accounting for Income Taxes," which incorporates the use of the asset and liability approach of accounting for income taxes. The Company allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more

9

likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.

The Company's estimated income tax expense for quarter ended June 30, 2014 was CAD$ Nil.

(j) Fair Value of Financial Instruments

The carrying amounts of the Company's cash, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short maturity of these items. Term debt secured by various properties have interest rates attached to them commensurate with the finance market at the time and management believes approximate fair values in the short as well as the long term. It is currently not practicable to estimate the fair value of the other debt obligations because these note agreements contain unique terms, conditions, covenants and restrictions which were negotiated at arm's length with the Company's lenders, and there is no readily determinable similar instrument on which to base an estimate of fair value. Accordingly, no computation or adjustment to fair value has been determined.

(k) Valuation of Long-Lived Assets

Long-lived tangible assets and definite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses an estimate of undiscounted future net cash flows of the assets over the remaining useful lives in determining whether the carrying value of the assets is recoverable. If the carrying values of the assets exceed the expected future cash flows of the assets, the Company recognizes an impairment loss equal to the difference between the carrying values of the assets and their estimated fair values.

Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent from other groups of assets. The evaluation of long-lived assets requires the Company to use estimates of future cash flows. However, actual cash flows may differ from the estimated future cash flows used in these impairment tests. As of June 30, 2014 management does not believe any of the Company’s assets were impaired.

(l)

Revenue Recognition

1) Revenue from invoiced value of goods sold is recognized upon the delivery of goods to customers. Pursuant to the guidance of ASC Topic 605 and ASC Topic 36, revenue is recognized when all of the following criteria are met:

a)

Persuasive evidence of an arrangement exists,

b)

Delivery has occurred or services have been rendered,

c)

The seller's price to the buyer is fixed or determinable, and

d)

Collectibility is reasonably assured.

2) Interest income on loans is recognized using the effective interest method.

3) Service income is recognized when the services are rendered.

4) License fee income is recognized in accordance with the license terms.

(m)

Earnings Per Share

Basic earnings per share is computed by dividing income available to common shareholders by the

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weighted-average number of common shares outstanding during the year. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  As of June 30, 2014, there was no common share equivalents outstanding.

(n)

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those results.

Significant estimates and assumptions include allocating purchase consideration issued in business combinations and valuing equity securities issued in financing transactions and the carrying amounts of intangible assets. Certain estimates, including accounts receivable and the carrying amounts of intangible assets (including present value of future cash flow estimates) could be affected by external conditions including those unique to our industry and general economic conditions. It is reasonably possible that these external factors could have an effect on our estimates that could cause actual results to differ from our estimates.

We re-evaluate all of our accounting estimates at least quarterly based on these conditions and record adjustments, when necessary.

(o)

 Retirement Benefits

Hong Kong mandates companies to operate a mandatory provident fund scheme, which is available to all employees in Hong Kong. Both the Company and the employees are required to contribute 5% per month of the employees’ relevant income.  Contributions from the Company are 100% vested in the employees as soon as they are paid to the scheme.  Contributions to the scheme are expensed in the statement of operations as they become payable in accordance with the rules of the scheme.  The assets of the scheme are held separately from those of the Company and managed by independent professional fund managers.  The Company provides no other retirement benefits to its employees.

(p)

Comprehensive Income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements.  Comprehensive income includes net income and the foreign currency translation gain, net of tax.

(q) Foreign Currency Translation

Our reporting currency is the Canadian dollar.  The functional currency of the Company’s operating business based in Hong Kong is Hong Kong dollar. For our subsidiaries whose functional currencies are Hong Kong dollar, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate in effect as of the end of the period, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of

11

translating the functional currency financial statements into Canadian dollars are included in comprehensive income. 

Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. All of our revenue transactions are transacted in the functional currency. We have not entered into any material transactions that are either originated, or to be settled, in currencies other than Hong Kong dollar. Accordingly, transaction gains or losses have not had, and are not expected to have a material effect on our results of operations.

Period end exchange rates used to translate assets and liabilities and average exchange rates used to translate results of operations in each of the reporting periods are as follows:

	Quarter ended   June 30, 2014		Quarter ended June 30, 2013
Period end CAD$: HK$ exchange rate		7.2638		7.3679
Average periodic CAD$: HK$ exchange rate		7.1059		7.5842

(r)

Related Parties

Parties are considered to be related to the company 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 significance. Related parties may be individuals (being members of key management personnel, significant shareholders and/or their close family members) or other 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 benefits of employees of the company or of any entity that is a related party of the company.

(s)

Operating leases

Leases where substantially all the rewards and risks of ownership of assets remain with the lesser are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease periods.

3.  GOING CONCERN

These interim financial statements have been prepared on a going concern basis, which assume that the Company will continue in operation for the foreseeable future and accordingly will be able to realize its assets and discharge its liabilities in the normal course of operations.

4.  CONCENTRATION OF CREDIT RISK AND ANALYSIS OF LOANS RECEIVABLES

The Company has no significant off-balance sheet concentration of credit risk such as foreign exchange contracts, options contracts or other foreign currency hedging arrangements. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of loans receivable. Concentration of credit risk with respect to loans receivable is limited.  A majority of the loans receivable are sufficiently secured by collaterals. In addition, the Company regularly monitors the creditworthiness of these borrowers and believes that it has adequately provided for exposure to potential credit losses. Bad debt recognised for the quarter ended June 30, 2014 amounted to $23,164.

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The following table presents analysis of loans receivable by nature:

		June  30		September 30
Types of loans		2014		2013
Mortgage loans	$	8,216,142	$	5,484,987
Personal loans		1,275,789		1,513,421
Accrued interests		120,256		177,059
		9,612,187		7,175,467

Mortgage loans are bearing annual interest ranging from 6% to 30% with loan period ranging from 24 to 84 months. All mortgage loans are secured by collaterals in form of interest in real estate. Personal loans are bearing interest ranging from 24% to 48% with loan period up to 12 months. All personal loans are unsecured.

5.

PROPERTY, PLANT AND EQUIPMENT

			June 30	September 30
		Accumulated	2014	2013
	Cost	Depreciation	Net	Net
Leasehold land and building	18,822,222	1,337,342	17,484,880	17,827,948
Leasehold improvement	129,749	110,408	19,341	36,097
Office equipment and furniture	29,428	25,519	3,909	7,517
Computer equipment	16,786	14,171	2,615	4,829
	18,998,185	1,487,440	17,510,745	17,876,391

The leasehold land and building were acquired in 2011 through the acquisition of the entire share capital of First Asia Tower Limited (formerly known as Galaxy Garment Limited). The transaction was accounted for as an asset deal.

Depreciation for the 3 months ended June 30, 2014 amounted to $122,451.

6.

GOODWILL

Goodwill arose from the acquisitions of the entire share capital of First Asia Finance Limited and Hung Lee Development Limited and the 60% share capital of First Asia Estate Limited in 2011. The Company has elected the fourth quarter to complete its annual goodwill impairment test. For the quarter ended June 30, 2014 and the year ended September 30, 2013, there was no impairment charge recognized.

7.

BANK OVERDRAFT - SECURED

The bank overdraft is secured by the leasehold land and building. It is repayable on demand and bearing

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interest at an annual rate of 5.5%.

8.

MORTGAGE LOAN - SECURED

The mortgage loan is secured by the leasehold land and building. It is repayable by 240 instalments up to May 2031 and bearing interest at an annual rate of approximately 2%.

9.

ACCOUNTS PAYABLES AND ACCRUED LIABILITIES

The balances represent mainly trade payables and accrued professional fees which are all current.

10.

DUE TO RELATED PARTIES - NET

The amounts are unsecured, interest-free and are repayable on demand.

11.

COMMON SHARES

During the quarter ended June 30, 2014, no common shares were issued.

12.

OPERATING LEASES

The Group has entered into commercial leases for offices with a term expiring in February 2016. The lease may be cancelled by either party with 30-days prior written notice. Future minimum rental payments under this operating lease are as follows:

	Office Rental
Three months ending September 30, 2014	4,800
Year ending September 30, 2015		19,200
Year ending September 30, 2016		8,000
Total	$	32,000

13.

SEGMENT INFORMATION

ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Group’s chief operating decision maker is the Chief Executive Officer, who reviews consolidated results of operations prepared in accordance with U.S. GAAP when making decisions about allocating resources and assessing performance of the Group. Accordingly, the Group has two operating segments: 1) Money-lending business, and 2) licensing out of property. 

The following table presents summarized information by segment for the three months ended June 30, 2014:

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	Money Lending		Licensing Of property
Revenue		397,628		189,900
Direct Cost		-		-
Gross profit		397,628		189,900
Selling expenses		-		-
General and administrative expenses		316,498		212,466
(Loss) income from operations		121,218		(22,566)
Depreciation		10,551		111,900

The following table presents summarized information by segment for the three months ended June 30, 2013:

	Money Lending		Licensing Of property
Revenue		439,572		178,429
Direct Cost		-		-
Gross profit		439,572		178,429
Selling expenses		-		-
General and administrative expenses		436,973		172,338
Income from operations		2,599		6,091
Depreciation		32,509		105,141

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ITEM 2.

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS.

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS," "INTENDS," "WILL," "HOPES," "SEEKS," "ANTICIPATES," "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD LOOKING STATEMENT. SUCH FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.

Overview and Recent Developments

First Asia Holdings Limited, (hereinafter referred to as “We,” “Us,”  “First Asia,” the “Company”, or the “Registrant”) is a publicly traded company whose shares trade on the OTCQB market (the “OTCQB”) under the trading symbol “FAHLF”.   The Company was organized under the laws of Ontario, in March 1993.   Currently, the Company, through its subsidiaries, is carrying on regulated money lending business and construction business in Hong Kong. The Group also owns a 19-storey industrial/commercial building in Hong Kong. The Company is located at Hong Kong.  

On December 11, 2012, upon the completion of an internal restructuring of group structure, the group’s interests in First Asia Finance Limited (100% interest), Hung Lee Development Limited (100% interest) and First Asia Estate Limited (60% interest) became directly held by the Company. At the same time, without the investments in First Asia Finance Limited, Hung Lee Development Limited and First Asia Estate Limited, Vagas Lane Limited’s entire issue capital was held by Hotel Fund Limited. The Company’s effective interests in each of the subsidiaries remain unchanged. There is no significant financial impact resulting from this internal restructuring.

16

The Chart below depicts the corporate structure of the Company as of the date of this 10-Q.  Except for First Asia Estate Limited which is a 60% subsidiary, the Company effectively owns 100% of the capital stock of all subsidiaries.

Results of Operations

The following discussion and analysis provide information that we believe is relevant to an assessment and understanding of our results of operation and financial condition for the fiscal period ended June 30, 2014 as compared to the fiscal period ended June 30, 2013.  The following discussion should be read in conjunction with the Financial Statements and related Notes appearing elsewhere in this Form 10-Q.  All figures herein are stated in Canadian dollars

17

Results of Operations for the Three Months Ended June 30, 2014 Compared to Three Months Ended June 30, 2013.

Revenues.  During the three months ended June 30, 2014, the Company had operating revenues of CAD$587,528   , as compared to revenues of CAD$445,613 for the three months ended  June 30, 2013, an increase of CAD$141,915, or approximately 32%. The increase in revenue is primarily attributable to the increase in revenue from the money lending business as a result of more resources are injected for this business.

Costs of Revenue.  The revenue represent interest income and service fee income from the money lending business of First Asia Finance Limited and the license fee income from First Asia Tower Limited. The corresponding direct cost was considered to be insignificant.

Operating Expenses.  Operating expenses for the three months ended June 30, 2014 were CAD$557,797. Of this, CAD$28,362 was allocated to Selling and Distribution, CAD$529,435 was allocated to General, finance and Administrative Expenses. Operating expenses for the three months ended June 30, 2013 were CAD$438,032. Of this, CAD$9,566 was allocated to Selling and Distribution, CAD$428,466 was allocated to General, finance and Administrative Expenses. Selling and Distribution expenses were comparable. The increase in General and Administrative expenses was primarily attributable to the increase in the volume of the money lending business.

Net Gain/Loss.   The Company had a net gain for the three months ended June 30, 2014 of CAD $98,652 , as compared to a net gain of CAD$3,638 for the three months ended June 30, 2013.  The significant increase in net profit is due to the increase in contribution from the money lending business.

Results of Operations for the Nine  Months Ended June 30, 2014 Compared to Nine Months Ended June 30, 2013.

Revenues.  During the nine months ended June 30, 2014, the Company had operating revenues of CAD$2,512,963, as compared to revenues of CAD$1,145,540 for the nine months ended June 30, 2013, an increase of CAD$1,367,423. The increase in revenue is primarily attributable to the increase in revenue from the money lending business. During the nine months ended June 30, 2014, penalty interest was earned from one default borrower. The property used as collateral was sold to settle the outstanding principal and interests including penalty interest.

Costs of Revenue.  The revenue represent interest income and service fee income from the money lending business of First Asia Finance Limited and the license fee income from First Asia Tower Limited. The corresponding direct cost was considered to be insignificant.

Operating Expenses.  Operating expenses for the nine months ended June 30, 2014 were CAD$1,537,709. Of this, CAD$71,038 was allocated to Selling and Distribution, CAD$1,466,671 was allocated to General, finance and Administrative Expenses. Operating expenses for the nine months ended June 30, 2013 were CAD$1,167,315. Of this, CAD$47,199 was allocated to Selling and Distribution, CAD$1,120,116 was allocated to General, finance and Administrative Expenses.  Selling and Distribution expenses were relatively comparable. The increase in General and Administrative expenses was primarily attributable to the increase in the volume of the money lending business.

18

Net Gain/Loss.   The Company had a net gain for the nine months ended June 30, 2014 of CAD$865,941, as compared to a net loss of CAD$39,858 for the nine months ended June 30, 2013. The significant increase in net profit is due to the increase in contribution from the money lending business, particularly the penalty interest earned of CAD883,601.

Liquidity and Capital Resources.

The Company anticipates that the existing cash and cash equivalents on hand, together with the net cash flows generated from its business activities will be sufficient to meet the working capital requirements for the on-going projects and to sustain the business operations for the next twelve months.  

As of June 30, 2014, our balance sheet reflects that we have cash and cash equivalents of CAD$127,541, total current assets of CAD$10,297,468 and total assets of CAD$32,008,589, total liabilities of CAD$12,165,116, and total stockholders’ equity of CAD$19,825,340. The net cash outflow from operating activities for the fiscal period ended June 30, 2014 was CAD$429,326.  The net cash inflow from investing activities for the fiscal period ended June 30, 2014 was Nil.

Off Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable.

ITEM 4.

CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.  The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures.  Based on this evaluation, our chief

19

executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified.  Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.  

Changes in Internal Control over Financial Reporting

There was no change in the Company's internal control over financial reporting during the period ended June 30, 2014, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II-OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or any of our subsidiaries, threatened against or affecting the Company, our common stock, any of our subsidiaries or of our Company's or our Company's subsidiaries' officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

ITEM 1A.

 RISK FACTORS.

Not Applicable.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.

MINE SAFETY DISCLOSURES

None.

ITEM 5.    

OTHER INFORMATION.

None.

ITEM 6.

EXHIBITS.

(a)

The following exhibits are filed herewith:

20

31.1

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101

INS XBRL Instance Document.

101

SCH XBRL Schema Document.

101

CAL XBRL Taxonomy Extension Calculation Linkbase Document.

101

LAB XBRL Taxonomy Extension Label Linkbase Document.

101

PRE XBRL Taxonomy Extension Presentation Linkbase Document.

101

DEF XBRL Taxonomy Extension Definition Linkbase Document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FIRST ASIA HOLDINGS LIMITED

By: /s/   Luk Lai Ching Kimmy

Luk Lai Ching Kimmy, Chief Executive Officer

Date:  August 19, 2014

By: /s/   To Ka Man Carmen

To Ka Man Carmen, Chief Financial Officer

Date:    August 19, 2014

21

EX-31

EXHIBIT 31.1

EX-31

Exhibit 31.2

CERTIFICATION

I, Ms To Ka Man Carmen, certify that:

1. I have reviewed this Form 10-Q of First Asia Holdings Limited;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 19, 2014

/s/ Ms To Ka Man Carmen, Chief Financial Officer

EX-32

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of First Asia Holdings Limited. (the "Company") on Form 10-Q for the period ended June 30, 2014  (the “Report”), I, Ms Luk Lai Ching Kimmy, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirement of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the Company's financial position and results of operations.

Date:  August 19, 2014

/s/ Ms Luk Lai Ching Kimmy
    Chief Executive Officer

EX-32

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of First Asia Holdings Limited (the “Company”) on Form 10-Q for the period ended June 30, 2014 (the “Report”), I, Ms To Ka Man Carmen, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirement of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the Company's financial position and results of operations.

Date:  August 19, 2014

/s/ Ms To Ka Man Carmen
   Chief Financial Officer

XML

Concentration of Credit Risk and Analysis of Loans Receivables (Details) (CAD)	3 Months Ended
	Jun. 30, 2014
Details
Allowance for Loan and Lease Losses, Recoveries of Bad Debts	23,164

XML

Summary of Significant Accounting Policies: Related Parties (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Related Parties

(r) Related Parties

Parties are considered to be related to the company 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 significance. Related parties may be individuals (being members of key management personnel, significant shareholders and/or their close family members) or other 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 benefits of employees of the company or of any entity that is a related party of the company.

XML

Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Fair Value of Financial Instruments

(j) Fair Value of Financial Instruments

The carrying amounts of the Company's cash, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short maturity of these items. Term debt secured by various properties have interest rates attached to them commensurate with the finance market at the time and management believes approximate fair values in the short as well as the long term. It is currently not practicable to estimate the fair value of the other debt obligations because these note agreements contain unique terms, conditions, covenants and restrictions which were negotiated at arm's length with the Company's lenders, and there is no readily determinable similar instrument on which to base an estimate of fair value. Accordingly, no computation or adjustment to fair value has been determined.

XML

Plant and Equipment (Details) (CAD)	3 Months Ended	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2013
Details
Depreciation	122,451	365,646	321,261

XML

Concentration of Credit Risk and Analysis of Loans Receivables: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables)

9 Months Ended

Jun. 30, 2014

Tables/Schedules

Schedule of Accounts, Notes, Loans and Financing Receivable

		June  30 2014		September 30 2013
Types of loans
Mortgage loans	$	8,216,142	$	5,484,987
Personal loans		1,275,789		1,513,421
Accrued interests		120,256		177,059
		9,612,187		7,175,467

XML

Plant and Equipment

9 Months Ended

Jun. 30, 2014

Notes

Plant and Equipment

5.         PLANT AND EQUIPMENT

	Cost	Accumulated Depreciation	Net	Net
			June 30, 2014	September 30, 2013
Leasehold land and building	18,822,222	1,337,342	17,484,880	17,827,948
Leasehold improvement	129,749	110,408	19,341	36,097
Office equipment and furniture	29,428	25,519	3,909	7,517
Computer equipment	16,786	14,171	2,615	4,829
Total	18,998,185	1,487,440	17,510,745	17,876,391

The leasehold land and building were acquired in 2011 through the acquisition of the entire share capital of First Asia Tower Limited (formerly known as Galaxy Garment Limited). The transaction was accounted for as an asset deal.

Depreciation for the 3 months ended June 30, 2014 amounted to $122,451.

XML

Operating Leases (Details) (CAD)	Jun. 30, 2014
Details
Three months ending September 30, 2014	4,800
Year ending September 30, 2015	19,200
Year ending September 30, 2016	8,000
Operating Leases Total	32,000

XML

Summary of Significant Accounting Policies: Use of Estimates (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Use of Estimates

(n) Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those results.

Significant estimates and assumptions include allocating purchase consideration issued in business combinations and valuing equity securities issued in financing transactions and the carrying amounts of intangible assets. Certain estimates, including accounts receivable and the carrying amounts of intangible assets (including present value of future cash flow estimates) could be affected by external conditions including those unique to our industry and general economic conditions. It is reasonably possible that these external factors could have an effect on our estimates that could cause actual results to differ from our estimates.

We re-evaluate all of our accounting estimates at least quarterly based on these conditions and record adjustments, when necessary.

XML

Summary of Significant Accounting Policies: Earnings Per Share (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Earnings Per Share

(m) Earnings Per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the year. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  As of June 30, 2014, there was no common share equivalents outstanding.

XML

Summary of Significant Accounting Policies: Retirement Benefits (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Retirement Benefits

(o) Retirement Benefits

Hong Kong mandates companies to operate a mandatory provident fund scheme, which is available to all employees in Hong Kong. Both the Company and the employees are required to contribute 5% per month of the employees’ relevant income.  Contributions from the Company are 100% vested in the employees as soon as they are paid to the scheme.  Contributions to the scheme are expensed in the statement of operations as they become payable in accordance with the rules of the scheme.  The assets of the scheme are held separately from those of the Company and managed by independent professional fund managers.  The Company provides no other retirement benefits to its employees.

XML

Summary of Significant Accounting Policies: Comprehensive Income (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Comprehensive Income

(p) Comprehensive Income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements.  Comprehensive income includes net income and the foreign currency translation gain, net of tax.

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Concentration of Credit Risk and Analysis of Loans Receivables

9 Months Ended

Jun. 30, 2014

Notes

Concentration of Credit Risk and Analysis of Loans Receivables

4.         CONCENTRATION OF CREDIT RISK AND ANALYSIS OFLOANS RECEIVABLES

The Company has no significant off-balance sheet concentration of credit risk such as foreign exchange contracts, options contracts or other foreign currency hedging arrangements. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of loans receivable. Concentration of credit risk with respect to loans receivable is limited.  A majority of the loans receivable are sufficiently secured by collaterals. In addition, the Company regularly monitors the creditworthiness of these borrowers and believes that it has adequately provided for exposure to potential credit losses. Bad debt recognised for the quarter ended June 30, 2014 amounted to $23,164.

The following table presents analysis of loans receivable by nature:

		June  30 2014		September 30 2013
Types of loans
Mortgage loans	$	8,216,142	$	5,484,987
Personal loans		1,275,789		1,513,421
Accrued interests		120,256		177,059
		9,612,187		7,175,467

Mortgage loans are bearing annual interest ranging from 6% to 30% with loan period ranging from 24 to 84 months. All mortgage loans are secured by collaterals in form of interest in real estate. Personal loans are bearing interest ranging from 24% to 48% with loan period up to 12 months. All personal loans are unsecured.

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Summary of Significant Accounting Policies: Foreign Currency Translation (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Foreign Currency Translation

(q) Foreign Currency Translation

Our reporting currency is the Canadian dollar.  The functional currency of the Company’s operating business based in Hong Kong is Hong Kong dollar. For our subsidiaries whose functional currencies are Hong Kong dollar, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate in effect as of the end of the period, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into Canadian dollars are included in comprehensive income. 

Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. All of our revenue transactions are transacted in the functional currency. We have not entered into any material transactions that are either originated, or to be settled, in currencies other than Hong Kong dollar. Accordingly, transaction gains or losses have not had, and are not expected to have a material effect on our results of operations.

Period end exchange rates used to translate assets and liabilities and average exchange rates used to translate results of operations in each of the reporting periods are as follows:

	Quarter ended   June 30, 2014		Quarter ended June 30, 2013
Period end CAD$: HK$ exchange rate		7.2638		7.3679
Average periodic CAD$: HK$ exchange rate		7.1059		7.5843

XML

Concentration of Credit Risk and Analysis of Loans Receivables: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) (CAD)	9 Months Ended	12 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
Details
Loans Receivable, Gross, Commercial, Mortgage	8,216,142	5,484,987
Loans and Leases Receivable, Gross, Other	1,275,789	1,513,421
Proceeds from Interest Received	120,256	177,059
Loans and Advances	9,612,187	7,175,467

XML

CONDENSED CONSOLIDATED BALANCE SHEETS	Jun. 30, 2014 USD ($)	Jun. 30, 2014 CAD	Sep. 30, 2013 USD ($)	Sep. 30, 2013 CAD
Current Assets
Cash and Cash Equivalent		127,541		740,368
Loans and Advances		9,612,187		7,175,467
Prepayment, Deposits and Other Receivable		557,740		1,072,478
Total Current Assets		10,297,468		8,988,313
Goodwill		4,200,376		4,200,376
Property, Plant and Equipment		17,510,745		17,876,391
Total Assets	32,008,589		31,065,080
Current Liabilities:
Bank Overdraft - Secured		1,730,821		2,055,695
Mortgage Payable - Secured		6,468,277		6,630,497
Accounts Payables and Accrued Liabilities		1,432,542		1,334,636
Accounts Payable, Related Parties, Net		2,231,456		1,910,701
Income Taxes Payable		302,020		162,020
Total Current Liabilities		12,165,116		12,093,549
Total Liabilities		12,165,116		12,093,549
Stockholders' Equity
Preferred Stock		0		0
Common Stock		23,950,085		23,944,085
Deficits		(4,124,745)		(4,990,687)
Total Stockholder's Equity - First Asia Holdings Limited		19,825,340		18,953,398
Non-Controlling Interest		18,133		18,133
Total Liabilities and Stockholders' Equity	$ 32,008,589		$ 31,065,080
Stockholders Equity, Number of Shares, Par Value and Other Disclosures
Preferred Stock, Par Value		0.000		0
Common Stock, Par Value		0		0
Common Stock, Shares Issued	62,351,282	62,351,282	62,347,270	62,347,270
Common Stock, Shares Outstanding	62,351,282	62,351,282	62,347,270	62,347,270

XML

Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2014

Notes

Summary of Significant Accounting Policies

2.         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Principles of consolidation

In preparing these consolidated financial statements, management was required to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. In the opinion of management, these financial statements reflect all adjustments (which include only normal, recurring adjustments) necessary to state fairly the results for the periods presented. Actual results could differ from these estimates and the operating results for the interim period presented is not necessarily indicative of the results expected for the full year/period.

For the quarter ended and as of June 30, 2014, the consolidated financial statements include the accounts of the Company and the following subsidiaries:

A) Wholly-owned subsidiaries

a) Hong Kong Companies

1.    First Asia Finance Limited

2.    Hung Lee Development Limited

3.    First Asia Tower Limited (Formerly known as Galaxy Garment Limited)

4.    Giant Management Corporation Limited

b) Marshall Islands Companies

1.      Vagas Lane Limited

2.      Paris Sky Limited

c) Cayman Islands Company

1.  Hotel Fund Limited

B) Non-wholly-owned subsidiary (Hong Kong Company)

1.  First Asia Estate Limited (60% owned)

All significant inter-company balances and transactions have been eliminated.

(b) Economic and Political Risk

All the Company’s operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s economy may influence the Company’s business, financial condition, and results of operations.

The Company’s major operations in Hong Kong are subject to considerations and significant risks typically associated with economies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

(c) Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.

(d) Accounts Receivable

Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No bad debt was incurred during the quarter ended June 30, 2014.

(e) Loans receivables

Interest income is recorded on an accrual basis to the extent that such amounts are expected to be collected. Origination and/or closing fees associated with investments in portfolio companies are accreted into income over the respective terms of the applicable loans. Upon the prepayment of a loan or debt security, any prepayment penalties and unamortized loan origination, closing and commitment fees are recorded as income. Prepayment premiums are recorded on loans when received. 

For loans with contractual payment-in-kind interest or dividends, which represent contractual interest/dividends accrued and added to the loan balance or liquidation preference 

An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No bad debt was incurred during the quarter ended June 30, 2014.

(f) Property, Plant and Equipment

Property, Plant and equipment are carried at cost less accumulated depreciation. The cost of maintenance and repairs is charged to the statement of operations as incurred, whereas significant renewals and betterments are capitalized. The cost and the related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of operations.

(g) Depreciation and Amortization

The Company provides for depreciation of property, plant and equipment principally by use of the straight-line method for financial reporting purposes. Property, Plant and Equipment are depreciated over the following estimated useful lives:

Leasehold land and building	50 years
Leasehold improvement	5 years
Office equipment	4 years
Computer equipment	4 years

(h) Accounting for the Impairment of Goodwill

ASC 350 (“Intangibles-Goodwill and Other”) requires that goodwill and intangible assets that have indefinite lives not be amortized but, instead, tested at least annually for impairment. Management uses a discounted cash flow analysis, which requires that certain assumptions and estimates be made regarding industry economic factors and future profitability of acquired businesses to assess the need for an impairment charge. The Company has elected the fourth quarter to complete its annual goodwill impairment test.

The book values of goodwill are tested annually for impairment, or more frequently, if facts and circumstances indicate the need. Fair value measurement techniques, such as the discounted cash flow methodology, are utilized to assess potential impairments. The testing is performed at the reporting unit level, which can be either an operating segment or one level below operating segment. In the discounted cash flow method, the Company discounts forecasted performance plans to their present value. The discount rate utilized is the weighted average cost of capital for the reporting unit, calculated as the opportunity cost to all capital providers weighted by their relative contribution to the reporting unit’s total capital and the risk associated with the cash flows and the timing of the cash flows. Comparison methods (e.g., peer comparables) and other estimation techniques are used to verify the reasonableness of the fair values derived from the discounted cash flow assessments.

The impairment test is performed in two stages. If the first stage does not indicate that the carrying values of the reporting units exceed the fair values, the second stage is not required. When the first stage indicates potential impairment, the company has to complete the second stage of the impairment test and compare the implied fair value of the reporting units’ goodwill to the corresponding carrying value of goodwill.

Subsequent to the annual impairment test, the Company undertook a review of its current strategy and determined that there was both a decrease in its future projected income based on the current environment and a need for a new management strategy. For the quarter ended June 30, 2014 and the year ended September 30, 2013, there was no impairment charge recognized.

(i) Income Tax

The Company has adopted the provisions of statements of Financial Accounting Standards No. 109, "Accounting for Income Taxes," which incorporates the use of the asset and liability approach of accounting for income taxes. The Company allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.

The Company's estimated income tax expense for quarter ended June 30, 2014 was CAD$ Nil.

(j) Fair Value of Financial Instruments

The carrying amounts of the Company's cash, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short maturity of these items. Term debt secured by various properties have interest rates attached to them commensurate with the finance market at the time and management believes approximate fair values in the short as well as the long term. It is currently not practicable to estimate the fair value of the other debt obligations because these note agreements contain unique terms, conditions, covenants and restrictions which were negotiated at arm's length with the Company's lenders, and there is no readily determinable similar instrument on which to base an estimate of fair value. Accordingly, no computation or adjustment to fair value has been determined.

(k) Valuation of Long-Lived Assets

Long-lived tangible assets and definite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses an estimate of undiscounted future net cash flows of the assets over the remaining useful lives in determining whether the carrying value of the assets is recoverable. If the carrying values of the assets exceed the expected future cash flows of the assets, the Company recognizes an impairment loss equal to the difference between the carrying values of the assets and their estimated fair values.

Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent from other groups of assets. The evaluation of long-lived assets requires the Company to use estimates of future cash flows. However, actual cash flows may differ from the estimated future cash flows used in these impairment tests. As of June 30, 2014 management does not believe any of the Company’s assets were impaired.

(l) Revenue Recognition

1) Revenue from invoiced value of goods sold is recognized upon the delivery of goods to customers. Pursuant to the guidance of ASC Topic 605 and ASC Topic 36, revenue is recognized when all of the following criteria are me:

a)         Persuasive evidence of an arrangement exists.

b)         Delivery has occurred or services have been rendered,

c)         The seller's price to the buyer is fixed or determinable, and

d)         Collectibility is reasonably assured.

2) Interest income on loans is recognized using the effective interest method.

3) Service income is recognized when the services are rendered.

4) License fee income is recognized in accordance with the license terms.

(m) Earnings Per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the year. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  As of June 30, 2014, there was no common share equivalents outstanding.

(n) Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those results.

Significant estimates and assumptions include allocating purchase consideration issued in business combinations and valuing equity securities issued in financing transactions and the carrying amounts of intangible assets. Certain estimates, including accounts receivable and the carrying amounts of intangible assets (including present value of future cash flow estimates) could be affected by external conditions including those unique to our industry and general economic conditions. It is reasonably possible that these external factors could have an effect on our estimates that could cause actual results to differ from our estimates.

We re-evaluate all of our accounting estimates at least quarterly based on these conditions and record adjustments, when necessary.

(o) Retirement Benefits

Hong Kong mandates companies to operate a mandatory provident fund scheme, which is available to all employees in Hong Kong. Both the Company and the employees are required to contribute 5% per month of the employees’ relevant income.  Contributions from the Company are 100% vested in the employees as soon as they are paid to the scheme.  Contributions to the scheme are expensed in the statement of operations as they become payable in accordance with the rules of the scheme.  The assets of the scheme are held separately from those of the Company and managed by independent professional fund managers.  The Company provides no other retirement benefits to its employees.

(p) Comprehensive Income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements.  Comprehensive income includes net income and the foreign currency translation gain, net of tax.

(q) Foreign Currency Translation

Our reporting currency is the Canadian dollar.  The functional currency of the Company’s operating business based in Hong Kong is Hong Kong dollar. For our subsidiaries whose functional currencies are Hong Kong dollar, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate in effect as of the end of the period, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into Canadian dollars are included in comprehensive income. 

Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. All of our revenue transactions are transacted in the functional currency. We have not entered into any material transactions that are either originated, or to be settled, in currencies other than Hong Kong dollar. Accordingly, transaction gains or losses have not had, and are not expected to have a material effect on our results of operations.

Period end exchange rates used to translate assets and liabilities and average exchange rates used to translate results of operations in each of the reporting periods are as follows:

	Quarter ended   June 30, 2014		Quarter ended June 30, 2013
Period end CAD$: HK$ exchange rate		7.2638		7.3679
Average periodic CAD$: HK$ exchange rate		7.1059		7.5843

(r) Related Parties

Parties are considered to be related to the company 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 significance. Related parties may be individuals (being members of key management personnel, significant shareholders and/or their close family members) or other 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 benefits of employees of the company or of any entity that is a related party of the company.

(s) Operating leases

Leases where substantially all the rewards and risks of ownership of assets remain with the lesser are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease periods.

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Summary of Significant Accounting Policies: Depreciation and Amortization: Property, Plant and Equipment, Estimated Useful Lives (Tables)

9 Months Ended

Jun. 30, 2014

Tables/Schedules

Property, Plant and Equipment, Estimated Useful Lives

Leasehold land and building	50 years
Leasehold improvement	5 years
Office equipment	4 years
Computer equipment	4 years

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Summary of Significant Accounting Policies: Depreciation and Amortization (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Depreciation and Amortization

(g) Depreciation and Amortization

The Company provides for depreciation of property, plant and equipment principally by use of the straight-line method for financial reporting purposes. Property, Plant and Equipment are depreciated over the following estimated useful lives:

Leasehold land and building	50 years
Leasehold improvement	5 years
Office equipment	4 years
Computer equipment	4 years

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Summary of Significant Accounting Policies: Foreign Currency Translation: Foreign Currency Translation Adjustment, Description (Tables)

9 Months Ended

Jun. 30, 2014

Tables/Schedules

Foreign Currency Translation Adjustment, Description

	Quarter ended   June 30, 2014		Quarter ended June 30, 2013
Period end CAD$: HK$ exchange rate		7.2638		7.3679
Average periodic CAD$: HK$ exchange rate		7.1059		7.5843

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Summary of Significant Accounting Policies: Income Tax (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Income Tax

(i) Income Tax

The Company has adopted the provisions of statements of Financial Accounting Standards No. 109, "Accounting for Income Taxes," which incorporates the use of the asset and liability approach of accounting for income taxes. The Company allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.

The Company's estimated income tax expense for quarter ended June 30, 2014 was CAD$ Nil.

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Going Concern

9 Months Ended

Jun. 30, 2014

Notes

Going Concern

3.         GOING CONCERN

These interim financial statements have been prepared on a going concern basis, which assume that the Company will continue in operation for the foreseeable future and accordingly will be able to realize its assets and discharge its liabilities in the normal course of operations.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CAD)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement of Operations
Revenue	587,528	445,613	2,512,963	1,145,540
Gross Profit	587,528	455,613	2,512,963	1,145,540
Operating Expenses
Selling and Distribution Costs	28,362	9,566	71,038	47,199
General, Finance and Administrative Expenses	529,435	428,466	1,466,671	1,120,116
Total Operating Expenses	557,797	438,032	1,537,709	1,167,315
Profit/(Loss) from Operations	29,731	7,581	975,254	(21,775)
Other Income	68,921	1,057	30,687	20,917
Profit/(Loss) Before Tax	98,652	8,638	1,005,941	(858)
Income Tax Expense/(Benefit)		(5,000)	(140,000)	(39,000)
Net Profit/(Loss)	98,652	3,638	865,941	(39,858)
Net Loss Per Share Basic and Diluted	0.002	0.00000	0.014	0.0000
Weighted Average Shares Outstanding Basic and Diluted	62,346,270	62,346,270	62,346,270	62,346,270

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Summary of Significant Accounting Policies: Economic and Political Risk (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Economic and Political Risk

(b) Economic and Political Risk

All the Company’s operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s economy may influence the Company’s business, financial condition, and results of operations.

The Company’s major operations in Hong Kong are subject to considerations and significant risks typically associated with economies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

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Document and Entity Information (USD $)	9 Months Ended
	Jun. 30, 2014	Mar. 31, 2013
Document and Entity Information:
Entity Registrant Name	FIRST ASIA HOLDINGS Ltd
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Amendment Flag	false
Entity Central Index Key	0001081568
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding	62,351,282
Entity Public Float		$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

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Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Cash and Cash Equivalents

(c) Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.

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CONDENSED STATEMENT OF CASH FLOWS (CAD)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities
Net Profit/(Loss)	865,941	(39,858)
Depreciation	365,646	321,261
Income Tax Expense/(Benefit)	140,000	39,000
Cash Effect of Changes In:
(Increase)/Decrease in Deposit, Prepayment and Other Receivables	514,738	(84,391)
(Increase)/Decrease in Loan Receivable	(2,436,720)	(2,943,997)
Increase/(Decrease) in Accounts Payables and Accrued Liabilities	97,906	(58,989)
Net Cash Inflow/(Outflow) from Operating Activities	452,489	(2,766,974)
Cash Flows from Financing Activities
Issue of Shares	6,000	1,011,850
Fund From Bank Overdraft	(324,874)	1,547,171
Repayment to/(Advance From) Related Parties	320,755	607,436
Repayment of Mortgage Loan	(162,220)	(147,645)
Net Cash (Outflow)/Inflow from Financing Activities	(160,338)	3,018,812
Net (Decrease)/Increase in Cash and Cash Equivalents	(612,827)	251,838
Initial Cash and Cash Equivalents	740,368	207,380
Final Cash and Cash Equivalents	127,541	459,218

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Accounts Payables, Accrued Liabilities and Due to Related Parties

9 Months Ended

Jun. 30, 2014

Notes

Accounts Payables, Accrued Liabilities and Due to Related Parties

9.         ACCOUNTS PAYABLES AND ACCRUED LIABILITIES

The balances represent mainly trade payables and accrued professional fees which are all current.

10.              DUE TO RELATED PARTIES - NET

The amounts are unsecured, interest-free and are repayable on demand.

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Bank Overdraft and Mortgage Loan Secured

9 Months Ended

Jun. 30, 2014

Notes

Bank Overdraft and Mortgage Loan Secured

7.  BANK OVERDRAFT -SECURED

The bank overdraft is secured by the leasehold land and building. It is repayable on demand and bearing interest at an annual rate of 5.5%.

8.  MORTGAGE LOAN -SECURED

The mortgage loan is secured by the leasehold land and building. It is repayable by 240 instalments up to May 2031 and bearing interest at an annual rate of approximately 2%.

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Summary of Significant Accounting Policies: Accounting For The Impairment of Goodwill (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Accounting For The Impairment of Goodwill

(h) Accounting for the Impairment of Goodwill

ASC 350 (“Intangibles-Goodwill and Other”) requires that goodwill and intangible assets that have indefinite lives not be amortized but, instead, tested at least annually for impairment. Management uses a discounted cash flow analysis, which requires that certain assumptions and estimates be made regarding industry economic factors and future profitability of acquired businesses to assess the need for an impairment charge. The Company has elected the fourth quarter to complete its annual goodwill impairment test.

The book values of goodwill are tested annually for impairment, or more frequently, if facts and circumstances indicate the need. Fair value measurement techniques, such as the discounted cash flow methodology, are utilized to assess potential impairments. The testing is performed at the reporting unit level, which can be either an operating segment or one level below operating segment. In the discounted cash flow method, the Company discounts forecasted performance plans to their present value. The discount rate utilized is the weighted average cost of capital for the reporting unit, calculated as the opportunity cost to all capital providers weighted by their relative contribution to the reporting unit’s total capital and the risk associated with the cash flows and the timing of the cash flows. Comparison methods (e.g., peer comparables) and other estimation techniques are used to verify the reasonableness of the fair values derived from the discounted cash flow assessments.

The impairment test is performed in two stages. If the first stage does not indicate that the carrying values of the reporting units exceed the fair values, the second stage is not required. When the first stage indicates potential impairment, the company has to complete the second stage of the impairment test and compare the implied fair value of the reporting units’ goodwill to the corresponding carrying value of goodwill.

Subsequent to the annual impairment test, the Company undertook a review of its current strategy and determined that there was both a decrease in its future projected income based on the current environment and a need for a new management strategy. For the quarter ended June 30, 2014 and the year ended September 30, 2013, there was no impairment charge recognized.

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Summary of Significant Accounting Policies: Accounts Receivable (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Accounts Receivable

(d) Accounts Receivable

Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No bad debt was incurred during the quarter ended June 30, 2014.

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Segment Information

9 Months Ended

Jun. 30, 2014

Notes

Segment Information

13.              SEGMENT INFORMATION

ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Group’s chief operating decision maker is the Chief Executive Officer, who reviews consolidated results of operations prepared in accordance with U.S. GAAP when making decisions about allocating resources and assessing performance of the Group. Accordingly, the Group has two operating segments: 1) Money-lending business, and 2) licensing out of property. 

The following table presents summarized information by segment for the three months ended June 30, 2014:

	Money Lending		Licensing Of property
Revenue		397,628		189,900
Direct Cost		-		-
Gross profit		397,628		189,900
Selling expenses		-		-
General and administrative expenses		316,498		212,466
(Loss) income from operations		121,218		(22,566)
Depreciation		10,551		111,900

The following table presents summarized information by segment for the three months ended June 30, 2013:

	Money Lending		Licensing Of property
Revenue		439,572		178,429
Direct Cost		-		-
Gross profit		439,572		178,429
Selling expenses		-		-
General and administrative expenses		436,973		172,338
Income from operations		2,599		6,091
Depreciation		32,509		105,141

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Common Shares

9 Months Ended

Jun. 30, 2014

Notes

Common Shares

11.       COMMON SHARES

During the quarter ended June 30, 2014, no common shares were issued.

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Operating Leases

9 Months Ended

Jun. 30, 2014

Notes

Operating Leases

12.              OPERATING LEASES

The Group has entered into commercial leases for offices with a term expiring in February 2016. The lease may be cancelled by either party with 30-days prior written notice. Future minimum rental payments under this operating lease are as follows:

	Office Rental
Three months ending September 30, 2014	4,800
Year ending September 30, 2015		19,200
Year ending September 30, 2016		8,000
Total	$	32,000

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Summary of Significant Accounting Policies: Principles of Consolidation (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Principles of Consolidation

(a) Principles of consolidation

In preparing these consolidated financial statements, management was required to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. In the opinion of management, these financial statements reflect all adjustments (which include only normal, recurring adjustments) necessary to state fairly the results for the periods presented. Actual results could differ from these estimates and the operating results for the interim period presented is not necessarily indicative of the results expected for the full year/period.

For the quarter ended and as of June 30, 2014, the consolidated financial statements include the accounts of the Company and the following subsidiaries:

A) Wholly-owned subsidiaries

a) Hong Kong Companies

1.    First Asia Finance Limited

2.    Hung Lee Development Limited

3.    First Asia Tower Limited (Formerly known as Galaxy Garment Limited)

4.    Giant Management Corporation Limited

b) Marshall Islands Companies

1.      Vagas Lane Limited

2.      Paris Sky Limited

c) Cayman Islands Company

1.  Hotel Fund Limited

B) Non-wholly-owned subsidiary (Hong Kong Company)

1.  First Asia Estate Limited (60% owned)

All significant inter-company balances and transactions have been eliminated.

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Summary of Significant Accounting Policies: Operating Leases (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Operating Leases

(s) Operating leases

Leases where substantially all the rewards and risks of ownership of assets remain with the lesser are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease periods.

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Summary of Significant Accounting Policies: Property, Plant and Equipment (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Property, Plant and Equipment

(f) Property, Plant and Equipment

Property, Plant and equipment are carried at cost less accumulated depreciation. The cost of maintenance and repairs is charged to the statement of operations as incurred, whereas significant renewals and betterments are capitalized. The cost and the related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of operations.

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Summary of Significant Accounting Policies: Valuation of Long-lived Assets (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Valuation of Long-lived Assets

(k) Valuation of Long-Lived Assets

Long-lived tangible assets and definite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses an estimate of undiscounted future net cash flows of the assets over the remaining useful lives in determining whether the carrying value of the assets is recoverable. If the carrying values of the assets exceed the expected future cash flows of the assets, the Company recognizes an impairment loss equal to the difference between the carrying values of the assets and their estimated fair values.

Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent from other groups of assets. The evaluation of long-lived assets requires the Company to use estimates of future cash flows. However, actual cash flows may differ from the estimated future cash flows used in these impairment tests. As of June 30, 2014 management does not believe any of the Company’s assets were impaired.

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Plant and Equipment: Schedule of Property, Plant and Equipment (Details) (CAD)	9 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
Property, Plant and Equipment, Additions	18,998,185
Amortization	1,487,440
Property, Plant and Equipment	17,510,745	17,876,391
Leaseholds and Leasehold Improvements
Property, Plant and Equipment, Additions	18,822,222
Amortization	1,337,342
Property, Plant and Equipment	17,484,880	17,827,948
Leasehold Improvements
Property, Plant and Equipment, Additions	129,749
Amortization	110,408
Property, Plant and Equipment	19,341	36,097
Office Equipment
Property, Plant and Equipment, Additions	29,428
Amortization	25,519
Property, Plant and Equipment	3,909	7,517
Computer Equipment
Property, Plant and Equipment, Additions	16,786
Amortization	14,171
Property, Plant and Equipment	2,615	4,829

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Basis of Presentation

9 Months Ended

Jun. 30, 2014

Notes

Basis of Presentation

1.         BASIS OF PRESENTATION

The accompanying interim consolidated financial statements of First Asia Holdings Limited (the "Company") are unaudited and have been prepared in accordance with United States generally accepted accounting principles ("US GAAP") for interim financial statements. Accordingly, they do not include certain disclosures normally included in annual financial statements prepared in accordance with such principles.

In preparing these interim financial statements, management was required to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. In the opinion of management, these interim financial statements reflect all adjustments (which include only normal, recurring adjustments) necessary to state fairly the results for the periods presented. Actual results could differ from these estimates and the operating results for the interim period presented is not necessarily indicative of the results expected for the full year.

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Goodwill

9 Months Ended

Jun. 30, 2014

Notes

Goodwill

6.  GOODWILL

Goodwill arose from the acquisitions of the entire share capital of First Asia Finance Limited and Hung Lee Development Limited and the 60% share capital of First Asia Estate Limited in 2011. The Company has elected the fourth quarter to complete its annual goodwill impairment test. For the quarter ended June 30, 2014 and the year ended September 30, 2013, there was no impairment charge recognized.

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Summary of Significant Accounting Policies: Revenue Recognition (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Revenue Recognition

(l) Revenue Recognition

1) Revenue from invoiced value of goods sold is recognized upon the delivery of goods to customers. Pursuant to the guidance of ASC Topic 605 and ASC Topic 36, revenue is recognized when all of the following criteria are me:

a)         Persuasive evidence of an arrangement exists.

b)         Delivery has occurred or services have been rendered,

c)         The seller's price to the buyer is fixed or determinable, and

d)         Collectibility is reasonably assured.

2) Interest income on loans is recognized using the effective interest method.

3) Service income is recognized when the services are rendered.

4) License fee income is recognized in accordance with the license terms.

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Plant and Equipment: Schedule of Property, Plant and Equipment (Tables)

9 Months Ended

Jun. 30, 2014

Tables/Schedules

Schedule of Property, Plant and Equipment

	Cost	Accumulated Depreciation	Net	Net
			June 30, 2014	September 30, 2013
Leasehold land and building	18,822,222	1,337,342	17,484,880	17,827,948
Leasehold improvement	129,749	110,408	19,341	36,097
Office equipment and furniture	29,428	25,519	3,909	7,517
Computer equipment	16,786	14,171	2,615	4,829
Total	18,998,185	1,487,440	17,510,745	17,876,391

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Summary of Significant Accounting Policies: Loans Receivables (Policies)

9 Months Ended

Jun. 30, 2014

Policies

Loans Receivables

(e) Loans receivables

Interest income is recorded on an accrual basis to the extent that such amounts are expected to be collected. Origination and/or closing fees associated with investments in portfolio companies are accreted into income over the respective terms of the applicable loans. Upon the prepayment of a loan or debt security, any prepayment penalties and unamortized loan origination, closing and commitment fees are recorded as income. Prepayment premiums are recorded on loans when received. 

For loans with contractual payment-in-kind interest or dividends, which represent contractual interest/dividends accrued and added to the loan balance or liquidation preference 

An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No bad debt was incurred during the quarter ended June 30, 2014.