Interim Results

RNS Number : 5655T

iEnergizer Limited

08 December 2011

 



8 December 2011

iEnergizer Limited

("iEnergizer" or the "Company")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2011

iEnergizer Limited, a leading international provider of third-party integrated business process solutions, is pleased to announce its Interim Results for the six months ended 30 September 2011. iEnergizer listed on the AIM market in September 2010 under the symbol IBPO.L.

Highlights

·      Revenue up 33.6% to $30.5m (6 months ended 30 Sept 2010: $22.8m)

·      Underlying operating profit $10m (6 months ended 30 Sept 2010: $7.4m)

·      Operating profit margin marginally improved to 32.9% (6 months ended 30 Sept 2010: 32.2%)

·      Net Profit after tax up 32.6% to $9.5m (6 months ended 30 Sept 2010: $7.2m)

·      Cash balance of $8.37m as of 30 September 2011, post distribution of maiden special dividend of 5.6p per ordinary share (Total £8.4m) as announced on 12 July 2011.

·      Largely unleveraged balance sheet with borrowings limited to $0.11m as on 30 September 2011.

Sara Latham, Chairman said:

"We are very pleased to announce Interim Results for the six months ended 30 September 2011, a period in which the Company has continued to grow across all its business practices and in respect of all key financial parameters.

"While delivering sustained top line growth, we have consistently maintained operating margins at over 30%, which reflects our premium offshore delivery capabilities with regards to the quality the services, cost of operations and strength of our relationships with our clients.

"Given the fact that these results are purely organic, I would like to thank the staff and management for their overall contribution to the success of iEnergizer and look forward to a great period ahead."

-Ends-

Enquiries:

iEnergizer	c/o FTI Consulting 020 7831 3113
Anil Aggarwal, Chief Executive
Arden Partners	020 7614 5900
Richard Day/Adrian Trimmings
FTI Consulting	020 7831 3113
Jonathon Brill/Edward Westropp

iEnergizer Limited and its subsidiaries

Unaudited Condensed Consolidated Interim Financial Statements

Prepared in accordance with International Financial Reporting Standards (IFRS)

Six months ended 30 September 2011

Unaudited Condensed Consolidated Statements of Financial Position

(All amounts in United States Dollars, unless otherwise stated)

			As at 30-Sep-11 Unaudited		As at 31-Mar-11 Audited
		Notes
ASSETS
Non-current
Goodwill		4	170,413		186,696
Other intangible assets		5	179,924		213,197
Property, plant and equipment		6	736,337		748,085
Long term financial asset			131,052		117,407
Deferred tax asset			30,556		41,999
Non-current assets			1,248,282		1,307,384
Current
Trade receivables			11,798,144		9,966,669
Other short term financial assets			219,644		2,007,605
Cash and cash equivalents			8,372,045		12,232,458
Current assets			20,389,833		24,206,732
Total assets			21,638,115		25,514,116
EQUITY AND LIABILITIES
Equity
Share capital			3,148,881		3,148,881
Share compensation reserve			63,986		63,986
Merger reserve			(1,049,386)		(1,049,386)
Retained earnings			12,562,809		16,797,935
Currency translation reserve			(312,567)		42,470
Total equity			14,413,723		19,003,886
Liabilities
Non-current
Non-current portion of borrowings			40,557		76,662
Employee benefit obligations			145,219		161,431
Non-current liabilities			185,776		238,093

				As at 30-Sep-11 Unaudited			As  at 31-Mar-11 Audited
Current
Trade and other payables				5,933,492			5,321,421
Current portion of borrowings				74,123			97,969
Other current liabilities				1,031,001			852,747
Current liabilities				7,038,616			6,272,137
Total equity and liabilities				21,638,115			25,514,116

 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Income Statements

(All amounts in United States Dollars, unless otherwise stated)

	Notes	For the six months ended		For the six months ended
		30-Sep-11		30-Sep-10
		Unaudited		Unaudited
Revenue
Rendering of services		30,495,757		22,820,025
Other operating income		143,629		9,007
		30,639,386		22,829,032
Cost and expenses
Outsourced service cost		15,364,446		12,048,288
Employee benefits expense		3,949,914		2,427,447
Depreciation and amortisation		165,398		527,640
Other expenses		1,122,738		467,328
		20,602,496		15,470,703
Operating profit		10,036,890		7,358,329
Finance income		43,479		4,410
Profit before tax		10,080,369		7,362,739
Tax expense		601,101		215,537
Profit after tax		9,479,268		7,147,202
Profit per share	7
Basic		0.06		0.08
Diluted		0.06		0.08
Par value of each share in GBP		0.01		0.01

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Consolidated Statements of Other Comprehensive Income

(All amounts in United States Dollars, unless otherwise stated)

		For the six months ended		For the six months ended
		30-Sep-11		30-Sep-10
		Unaudited		Unaudited
Profit after tax for the year		9,479,268		7,147,202
Exchange differences on translating foreign operations		(355,037)		89,845
Profit attributable to equity holders		9,124,231		7,237,047

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statements of Changes in Equity

(All amounts in United States Dollars, unless otherwise stated)

	Share capital	Share compensation reserve	Merger reserve	Currency translation reserve	Retained earnings	Total stockholders' equity
Balance as at 01 April 2011	3,148,881	63,986	(1,049,386)	42,470	16,797,935	19,003,886
Dividends	-	-	-	-	(13,616,468)	(13,616,468)
Tax on dividends					(97,926)	(97,926)
Transaction with owners	3,148,881	63,986	(1,049,386)	42,470	3,083,541	5,289,492
Profit for the period	-	-	-	-	9,479,268	9,479,268
Other comprehensive income						-
Exchange difference on translating foreign operations	-	-	-	(355,037)	-	(355,037)
Total comprehensive income for the period	-	-	-	(355,037)	9,479,268	9,124,231
Balance as at 30 September 2011	3,148,881	63,986	(1,049,386)	(312,567)	12,562,809	14,413,723

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statements of Changes in Equity

(All amounts in United States Dollars, unless otherwise stated)

	Share capital	Share compensation reserve	Merger reserve	Currency translation reserve	Retained earnings	Total stockholders' equity
Balance as at 01 April 2010	3,148,732	-	(1,049,386)	-	1,049,386	3,148,732
Issue of ordinary shares	149	-	-	-	-	149
Share based compensation	-	63,986	-	-	-	63,986
Transaction with owners	3,148,881	63,986	(1,049,386)	-	1,049,386	3,212,867
Merger reserve	-	-	-	-	7,147,202	7,147,202
Profit for the period
Other comprehensive income
Exchange difference on translating foreign operations	-	-	-	89,845	-	89,845
Total comprehensive income for the period				89,845	7,147,202	7,237,047
Balance as at 30 September 2010	3,148,881	63,986	(1,049,386)	89,845	8,196,588	10,449,914

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statements of Cash Flows

(All amounts in United States Dollars, unless otherwise stated)

	For the six months ended 30-Sep-11 Unaudited	For the six months  ended 30-Sep-10 Unaudited
(A) Cash flow from operating activities
Profit before tax
	10,080,369	7,362,739
Adjustments
Depreciation and amortisation	165,398	527,640
Share based payments	-	63,986
Finance income	(43,479)	(4,410)
	10,202,288	7,949,955
Changes in operating assets and liabilities
Accounts receivable	(1,831,475)	38,810,598
Other assets	1,808,962	181,394
Non-current liabilities, trade payables and other current liabilities	648,003	2,761,062
Cash generated from operations	10,827,778	49,703,009
Income taxes paid	(454,714)	(114,972)
Net cash generated from operating activities	10,373,064	49,588,037
(B) Cash flow for investing activities
Payments for purchase of property plant and equipment	(104,094)	(398,196)
Consideration towards business combination net of asset acquired	(59,951)	(2,705,902)
Net cash used in investing activities	(164,045)	(3,104,098)
(C ) Cash flow from financing activities
Proceeds of share capital	-	149
Tax paid on dividend	(97,927)	-
Dividends paid to shareholders of the parent	(13,616,468)	(87,000,000)
Net cash used in financing activities	(13,714,395)	(86,999,851)

Effect of exchange rate changes on cash and cash equivalent	(355,037)		89,895
Net decrease in cash and cash equivalents	(3,860,413)		(40,426,017)
Cash and cash equivalents at the beginning of the year	12,232,458		44,842,425
Cash and cash equivalents at the end of the year	8,372,045		4,416,408
Cash and cash equivalents comprise
Cash in hand	3,464		5,570
Balances with banks in current account	7,856,743		4,410,838
Balances with banks in deposit account	511,838		-
	8,372,045		4,416,408

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(All amounts in United States Dollars, unless otherwise stated)

1. INTRODUCTION

iEnergizer Limited (the 'Company' or 'iEnergizer ') was incorporated in Guernsey on 12 May 2010 pursuant to the Act of Royal Court of the Island of Guernsey.

iEnergizer was incorporated to serve as the holding company of iEnergizer Holdings Limited, Mauritius ("IHL"). iEnergizer acquired all of the ordinary shares of IHL from IHL's erstwhile immediate parent EICR (Cyprus) Limited("EICR" or "EICR Limited") on 15 June 2010. iEnergizer listed on the Alternative Investment Market ('AIM') of London Stock Exchange on 14 September 2010.

iEnergizer Limited is a 'Company limited by shares' and is domiciled in Guernsey. The registered office of the Company is located at Mont Crevelt House, Bulwer Avenue, St. Sampson, Guernsey, GY2 4 LH.

iEnergizer through its subsidiaries iEnergizer Holdings Limited, iEnergizer Group FZ - LLC, iEnergizer BPO Limited and iEnergizer IT Services Private Limited (together the 'Group') is engaged in the business of call centre operations and providing business process outsourcing (BPO) and back office services to their customers, who are primarily based in the United States of America and India, from its operating offices in Mauritius and India.

2. BASIS OF PREPARATION

These Unaudited Condensed Consolidated Interim Financial Statements are for the six months ended 30 September 2011. They have been prepared in accordance with IAS 34 Interim Financial Reporting as developed and published by the International Accounting Standards Board ('IASB'), on a going concern basis. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2011.

The Unaudited Condensed Consolidated Interim Financial Statements have been prepared and presented in United States Dollar (US$) which is the Company's functional currency. Functional currency of each entity has been determined on the basis of the primary economic environment in which each entity of the Group operates.

The subsidiaries which are consolidated under the iEnergizer group comprise the following entities:

Name of the entity	Holding company	Country of incorporation	Effective group shareholding (%) as of 30 September 2011
iEnergizer Holdings Limited ('IHL')	iEnergizer	Mauritius	100
iEnergizer Group FZ - LLC ('IEG')	iEnergizer	Dubai	100
iEnergizer BPO Limited ('IBPO')	IHL	Mauritius	100
iEnergizer IT Services Private Limited ('IITS')	IHL	India	100

All inter-company transactions and balances are eliminated on consolidation and the unaudited condensed consolidated interim financial statements reflect external transactions only. The accounting periods of the subsidiaries are co-terminous with that of the Company.

These Unaudited Condensed Consolidated Interim Financial Statementswere approved by the Board on the 7^th of December 2011

3. APPLICATION OF NEW STANDARDS

The following new standards, amendments to standards or interpretations have been issued, but are not effective for these Unaudited Condensed Consolidated Interim Financial Statements and have not been early adopted:

IFRS 9 Financial Instruments (Issued November 2009) (Effective from 1 January 2013)

The IASB aims to replace IAS 39 Financial Instruments: Recognition and Measurement in its entirety by the end of 2010, with the replacement standard to be effective for annual periods beginning 1 January 2013. IFRS 9 is the first part of Phase 1 of this project.

The main phases are:

Phase 1: Classification and Measurement

Phase 2: Impairment methodology

Phase 3: Hedge accounting

In addition, a separate project is dealing with de-recognition. Management has yet to assess the impact that this amendment is likely to have on the financial statements of the Group. However, they do not expect to implement the amendments until all chapters of the IAS 39 replacement have been published and they can comprehensively assess the impact of all changes.

Amendment (issued 28 October 2010) (Effective from 1 January 2013)

In October 2010, the IASB amended IFRS 9 to incorporate requirements for classifying and measuring financial liabilities and derecognising financial assets and financial liabilities. Most of IAS 39's requirements have been carried forward unchanged to IFRS 9. Changes have however been made to address issues related to own credit risk where an entity takes the option to measure financial liabilities at fair value.

IAS 24 Related party disclosure (Issued November 2009) (Effective from 1 January 2011)

The IASB published revised version of IAS 24 to provide exemption from IAS 24's disclosures for transactions with a) a government that has control, joint control or significant influence over the reporting entity and b) 'government-related entities' (entities controlled, jointly controlled or significantly influenced by that same government). The revised version also amended the definition of related party to remove inconsistencies and depict the intended meaning.

Though the standard is applicable to the Group, the amendments from the previous version would not have any impact on the consolidated financial statements. 

IFRS 7 Disclosures - Transfers of Financial Assets (issued 7 October 2010) (Effective from 1 July 2011)

The fair value hierarchy is intended to indicate the 'observability' of companies' financial instrument fair values and consists of the following three levels:

a.   quoted prices (unadjusted) in active markets for identical assets or liabilities

b.   inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

c.   inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The amendments to IFRS 7 are intended to explain more clearly how entities determine the fair value of their financial instruments and improve the disclosure of liquidity risk.

IFRS 10 Consolidated financial statements (Issued May 2011) (Effective from 1 January 2013)

IFRS 10 introduces a revised definition of control together with accompanying guidance on how to apply it. In contrast to IAS 27 and SIC-12, which resulted in different criteria for determining control being applied to special purpose vehicles, IFRS 10's requirements will apply to all types of potential subsidiaries.

Though the standard is applicable to the Group, the management is yet to assess the impact of the new standard on the consolidated financial statements.  

IFRS 12 Disclosure of Interests in Other Entities (Issued May 2011) (Effective from 1 January 2013)

The new standard integrates and makes consistent the disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities. The new standard is intended to provide transparency about the risks to which a reporting entity is exposed from its involvement with structured entities.

IFRS 13 Fair Value Measurement (Issued May 2011) (Effective from 1 January 2013)

The new IFRS does not affect which items are required to be 'fair-valued', but specifies how an entity should measure fair value and disclose fair value information. IFRS 13 has been developed to remedy this problem, by establishing a single source of guidance for all fair value measurements, clarifying the definition of fair value and related guidance and enhancing disclosures about fair value measurements (new disclosures increase transparency about fair value measurements, including the valuation techniques and inputs used to measure fair value).

Improvements to International Financial Reporting Standards 2010 were issued in May 2010. The effective dates vary standard by standard, but most are effective 1 January 2011

The Group is yet to assess full impact of these standards. The directors anticipate that future adoption of all the other standards, interpretations and amendments listed above will not have material impact on the Group's consolidated financial statements.

4. GOODWILL

The net carrying amount of goodwill can be analysed as follows:

Particulars	Amount
Balance as at 01 April 2011	186,696
Acquired through business combination	-
Impairment loss recognised	-
Translation adjustment	(16,283)
Balance as at 30 September 2011	170,413

For the purpose of annual impairment testing goodwill is allocated to the following CGU, which is expected to benefit from the synergies of the business combinations in which the goodwill arises.

Particulars	Amount
India business unit
Goodwill allocation at year end	170,413

The recoverable amounts of the CGU was determined based on value-in-use calculations, covering a detailed three to five year forecast, followed by an extrapolation of expected cash flows for the unit's remaining useful lives using estimate of growth rates. The Company performed a detailed impairment assessment as of 31 March 2011 and concluded no impairment is deemed necessary as the value in use is higher as compared to the recorded value. In line with its position, the Company shall perform detailed impairment assessment as the year end i.e. 31 March 2012.

5. OTHER INTANGIBLE ASSETS

The Intangible assets comprise of computer software, customer contracts.

Particulars	Customer Contracts	Computer Softwares	Total
Cost
Balance as at 01 April 2011	485,363	212,691	698,054
Additions	-	23,954	23,954
Disposals (Net)	-	-	-
Translation adjustment	(18,224)	(20,636)	(38,860)
Balance as at 30 September 2011	467,139	216,009	683,148

Particulars	Customer Contracts	Computer Softwares	Total
Accumulated amortisation
Balance as at 01 April 2011	447,299	37,558	484,857
Depreciation for the period	17,624	22,114	39,738
Disposals (Net)	-	-	-
Translation adjustment	(16,318)	(5,053)	(21,371)
Balance as at 30 September 2011	448,605	54,619	503,224
Net Carrying values	18,534	161,390	179,924

Particulars		Customer contracts	Computer softwares	Total
Balance as at 01 April 2010		-	-	-
Acquired under business combination		213,744	168,042	381,786
Other additions		276,565	48,494	325,059
Translation adjustment		(4,946)	(3,845)	(8,791)
Balance as at 31 March 2011		485,363	212,691	698,054
Accumulated amortisation
Balance as at 01 April 2010		-	-	-
Amortisation		445,285	37,116	482,401
Translation adjustment		2,014	442	2,456
Balance as at 31 March 2011		447,299	37,558	484,857
Net carrying value		38,064	175,133	213,197

6. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment comprise of the following:

Particulars	Computer	Office Equipment	Furniture and fixtures	Air conditioner and generator	Vehicles	Leasehold improvement	Capital work in progress	Total
Cost
Balance as at 01 April 2011	454,172	5,889	161,206	103,698	37,127	252,919	11,470	1,026,481
Additions	196,774	2,207	6,601	3,068	-	1,050	-	209,700
Disposals (Net)	-	-	-	-	(15,110)	-	(11,470)	(26,580)
Translation adjustment	(55,948)	(720)	(14,382)	(9,342)	(2,064)	(22,179)	-	(104,635)
Balance as at 30 September 2011	594,998	7,376	153,425	97,424	19,953	231,790	-	1,104,966
Accumulated depreciation
Balance as at 01 April 2011	144,060	2,564	68,266	10,221	6,882	46,403	-	278,396
Depreciation for the period	78,094	1,614	12,079	5,210	3,457	25,206	-	125,660
Disposals (Net)	-	-	-	-	(4,069)	-	-	(4,069)
Translation adjustment	(16,146)	(353)	(6,922)	(1,311)	(550)	(6,076)	-	(31,358)
Balance as at 30 September 2011	206,008	3,825	73,423	14,120	5,720	65,533	-	368,629
Carrying values as at 30 September 2011	388,990	3,551	80,002	83,304	14,233	166,257	-	736,337

Particulars	Computer	Office Equipment	Furniture and fixtures	Air conditioner and generator	Vehicles	Leasehold improvement	Capital work in progress	Total
Cost
Balance as at 01 April 2010	-	-	-	-	-	-	-	-
Additions
Acquired under business combination	247,654	4,393	164,153	103,571	38,009	258,917	-	816,697
Other additions	209,642	1,585	844	2,466	-	-	11,642	225,835
Translation adjustment	(3,124)	(89)	(3,791)	(2,339)	(882)	(5,998)	(172)	(16,051)
Balance as at  31 March 2011	454,172	5,889	161,206	103,698	37,127	252,919	11,470	1,026,481
Accumulated depreciation
Balance at 01 April 2010	-	-	-	-	-	-	-	-
Depreciation for the year	142,357	2,534	67,459	10,100	6,801	45,850	-	275,101
Translation adjustment	1,703	30	807	121	81	553	-	3,295
Balance as at 31 March 2011	144,060	2,564	68,266	10,221	6,882	46,403	-	278,396
Carrying value as at 31 March 2011	310,112	3,325	92,940	93,477	30,245	206,516	11,470	748,085

7. EARNINGS PER SHARE

The calculation of the basic earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year.

Calculation of basic and diluted profit per share for the period ended 30 September 2011 is as follows:

Basic earnings per share

Particulars		30 September 2011	30 September 2010
Profit attributable to shareholders		9,479,268	7,147,202
Weighted average numbers shares outstanding		150,010,000	88,532,350
Basic earnings per share (USD)		0.06	0.08

Diluted earnings per share

Particulars		30 September 2011	30 September 2010
Profit attributable to shareholders		9,479,268	7,147,202
Potential ordinary shares*		85,009	5,103
Weighted average numbers shares outstanding		150,095,009	88,532,350
Diluted earnings  per share (USD)		0.06	0.08

* Shares to be issued under share options granted

8. RELATED PARTY TRANSACTIONS  

The related parties for each of the entities in the Group have been summarised in the table below:

Nature of the relationship	Related Party's Name
I.     Ultimate controlling party	Mr. Anil Agarwal
II. Entities directly or indirectly through one or more intermediaries, control, are controlled by, or are under common control with, the reported enterprises	EICR Limited (Parent of iEnergizer Limited) Barker Shoes Limited (Under common control)
III. Key management personnel ("KMP") and significant shareholders :	Mr. Anil Agarwal (Ultimate Shareholder, EICR Limited)
	Mr. John Behar, (Director, iEnergizer Limited)
	Ms. Sara Latham, (Director, iEnergizer Limited)
	Mr. Adarsh Kumar (iEnergizer IT Services Private Limited)
	Ms. Shilpa Agarwal (Wife of Mr. Adarsh Kumar)

Disclosure of transactions between the Group and related parties and the outstanding balances is as under:

Transactions with parent company

Particulars	30 September 2011
Transactions during the period ended 30 September 2011
Reimbursement of share issue expenses received from EICR Limited (under cost agreement dated 15 June 2010)	155,298
Interest free demand loan payment received from EICR Limited	1,500,149
Balances at the end of 30 September 2011
Expenses recoverable	63,986

Particulars	30 September 2010
Transactions during the period ended 30 September 2010
Share issued to EICR Limited for 100% shares of iEnergizer Holdings Limited, Mauritius	165,600,000
Reimbursement of share issue expenses by EICR Limited (under cost agreement dated 15 June 2010)	155,298
Interest free demand loan given to EICR Limited	1,500,149
Balances at the end of 30 September 2010
Expenses recoverable	219,284
Demand loan	1,500,149

Above receivables and payables from related parties do not bear any interest and are repayable on demand. Hence, the management is of the view that fair values of such receivables and payable closely approximates their carrying values.

Transactions with KMP and relative of KMP

Particulars	30 September 2011
Transactions during the period ended 30 September 2011
Short term employee benefits
Remuneration paid to directors
Sara Latham	26,650
John Behar	26,650
Remuneration paid to KMP and relative of KMP
Adarsh Kumar	58,992
Vikram Jeet Singh	9,647
Social security cost
Adarsh Kumar	3,856
Vikram Jeet Singh	818
Balances at the end of 30 September 2011
Total remuneration payable	20,194

Particulars	30 September 2010
Transactions during the period ended 30 September 2010
Short term employee benefits
Remuneration paid to directors, KMP and relative of KMP	104,070
Balances at the end of 30 September 2010
Total remuneration payable	44,792

9. SEGMENT REPORTING

Management currently identifies the Group's two service lines India and United States of America as operating segments on the basis of customers. These operating segments are monitored and strategic decisions are made on the basis of adjusted segment operating results.

The Chief Operating Decision Maker ("CODM") evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by reportable segments. The Group's reportable segments are as follows:

1.         India

2.         United States of America (USA)

3.         Rest of the World (ROW)

The CODM reviews revenue as the performance indicator and does not review the total assets and liabilities for each reportable segment.

The measurement of each segment's revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Consolidated Financial Statements.

In addition, two minor operating segments, for which the quantitative thresholds have not been met, are currently combined below under 'ROW'. The main source of revenue for these operating segments is same as for others.  The Group provides similar services to all of its clients including call centre operations, business process outsourcing and back office services. Segment information can be analysed as follows for the reporting years under review:

30 September 2011	India	USA	ROW	Total
Revenue from external customers	6,514,752	22,593,437	1,387,568	30,495,757
Segment revenues	6,514,752	22,593,437	1,387,568	30,495,757
Costs of revenue	4,350,640	14,482,793	939,619	19,773,052
Depreciation and amortisation	163,491	1,907	-	165,398
Income tax expense	601,101	-	-	601,101
Other expenses	171,870	492,176	-	664,046
Other income	(2,987)	(140,642)	-	(143,629)
Finance income	(41,021)	(2,458)	-	(43,479)
Segment operating profit	1,271,658	7,759,651	447,949	9,479,268

 Revenue from two of the customer's amounted to more than 10% of consolidated revenue during the period presented.

Revenue from	Segment	Amount
Customer 1	USA	7,187,233
Customer 2	USA	4,551,147

30 September 2010	India	USA	ROW	Total
Revenue from external customers	3,285,528	17,950,782	1,583,715	22,820,025
Segment revenues	3,285,528	17,950,782	1,583,715	22,820,025
Costs of revenue	2,427,446	10,936,125	1,112,164	14,475,735
Depreciation and amortisation	251,076	-	276,564	527,640
Income tax expense	194,906	20,631	-	215,537
Other expenses	137,115	330,213	-	467,328
Other income	(9,007)	-	-	(9,007)
Finance income	(3,579)	(831)	-	(4,410)
Segment operating profit	287,571	6,664,644	194,987	7,147,202

Revenue from two of the customer's amounted to more than 10% of consolidated revenue during the year presented.

Revenue from	Segment	Amount
Customer 1	USA	4,111,180
Customer 2	USA	2,556,176

 

END

 

 

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