iEnergizer Limited

INTERIM RESULTS

RNS Number : 1136H
iEnergizer Limited
13 November 2018
 

13 November 2018

 

                         iEnergizer Limited

 

("iEnergizer", the "Company" or the "Group")

 

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

 

iEnergizer, the technology services and media solutions leader for the digital age, reports interim results for the six months ended September 30, 2018.

 

Financial Highlights:

 

 Sustained profitable growth and margin improvements achieved through deepening of existing customer relationships and accrual of new customers, alongside active cost management across all verticals of the company

 

·     Service Revenue up 9.5% to $82.4m (H1 2018: $75.2m)

·     EBITDA up 39.1% to $24.3m (H1 2018: $17.4m)

·     EBITDA margin at 29.1% (H1 2018: 23.0%)

·     Operating profit increased to $23.4m (H1 2018: $15.0m)

·     Operating profit margin at 27.5% (H1 2018: 19.8%)

·     Profit before tax increased to $21.0m (H1 2018: $12.1m)

·     Profit before tax margin at 24.6% (H1 2018: 15.9%)

·     Profit after tax increased to $17.3m (H1 2018: $10.3m)

·     Net debt of $18.5m (31 March 2018: $26.4m)

 

Operational Highlights

 

Continued focus on higher margin work and succeeding in securing further work with existing and new blue-chip customers, supported by new product launches in prior period,

 

·     Services: Revenue growth of 9.5% to $82.4m (H1 2018 $75.2)

 

·     Business Process Outsource ("BPO"): Strong revenue growth of over 18% outperforming expectations as key customers continued to increase workload volumes. The focus remains on recurring revenue streams from long-term customer relationships across all verticals. The division has added several new blue chip customers in gaming and ecommerce verticals adding to overall growth

 

·     Content Division: Sustainable long term growth prospects for content services with key focus on new markets within E Learning and Education sectors:

After successful launch of new product line OTS (Off-The-Shelf) during H2 of 2018, more deals are under negotiation with new customers for development of courseware or LMS (Learning Management System) in Education sector.

Growing its customer base in the product line launched in H1 of 2018 on Scientific Publishing and Remittance Integration Services ("SciPris") through ongoing negotiations with the existing and new customers within the publishing vertical.

Steady work streams maintained from core customers despite structural pressures in the traditional publishing market. Revenue from services in content division has been at stable $34.3m in H1 2019 (H1 2018 $34.5m) through maintenance of cost effective service solutions for existing customers.

·     Focused cost saving initiatives:

Improved overall efficiencies and minimised operational costs in the BPO division by switching from an outsourcing model to in-house delivery

Increased proportion of division-specific higher margin work, particularly in non-voice based processes including content writing, financials, entertainment gaming support, content technology and digital solutions

Effective use of technology to enable leaner operations, to handle greater volumes from key customers without notable additional human resource

 

·     US based sales team continued to focus on its three clear, concise strategies: to enhance and grow key accounts; to identify and win new business through new customers as well as target our existing accounts; and to cross-sell and generate leads for additional services. 

 

·     The Company is pleased to announce that a number of offers have been received to refinance the Company's existing term loan on the back of our strong cash generation. Subject to the completion of satisfactory due diligence and the signing of one of these offers, the Board is very pleased to inform the market of its intention to return to the dividend list.

Marc Vassanelli, Chairman of iEnergizer, commented:

"We are pleased to report another strong performance by iEnergizer, demonstrating sustained increases in revenue and profit and further improvements in profit margin.

 

"This performance reflects the significant progress being made by colleagues across the Company, as we continue to focus on recurring revenue streams, as well as effectively offsetting pressure in the traditional publishing sector by capitalizing on our advantageous position to service existing and new customers' needs in the evolving digital technology landscape.

 

"The Company's healthy cash position, together with its cash generative business model, puts iEnergizer in a strong position to invest in both organic and inorganic growth opportunities in the periods ahead.

 

"We expect sustained business performance through the second half of the year and the Board looks forward to the remainder of the year with confidence."

 

-Ends-

 

 

 

 

 

iEnergizer Ltd.

+44 (0)1481 242233

Chris de Putron

 

Mark De La Rue

 

 

 

FTI Consulting - Communications

Adviser

+44 (0)20 3727 1000

Jonathon Brill, Eleanor Purdon

 

 

 

Arden Partners - Nominated adviser and Broker

Steve Douglas

Ciaran Walsh

+44 (0)20 7614 5900

 

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 2018 and 2017

 

Unaudited Condensed Consolidated Statements of Financial Position

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

 

 

Notes

As at

As at

 

 

30 September 2018

31 March 2018

 

 

Unaudited

Audited

ASSETS

 

 

 

Non-current

 

 

 

Goodwill

5

                102,251,613

                102,265,086

Other intangible assets

6

                 13,293,455

                 14,770,468

Property, plant and equipment

7

                   5,187,140

                   4,650,688

Long- term financial asset

 

                   2,743,744

                     550,534

Non-current tax assets

 

                     818,303

                   1,119,175

Deferred tax asset

 

                   7,592,133

                   7,915,205

Other non current assets

 

                       28,284

                             -  

Non-current assets

 

                131,914,672

                131,271,156

 

 

 

 

Current

 

 

 

Trade and other receivables

 

                 30,997,595

                 27,346,367

Cash and cash equivalents

 

                 33,423,460

                 33,774,536

Short- term financial assets

8

                   5,329,699

                   7,674,666

Current tax assets

 

                     732,208

                     816,688

Other current assets

 

                   3,116,630

                   2,866,199

Current assets

 

                 73,599,593

                 72,478,456

 

 

 

 

Total assets

 

               205,514,265

               203,749,612

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Equity

 

 

 

Share capital

 

                   3,776,175

                   3,776,175

Share compensation reserve

 

                       63,986

                       63,986

Additional paid in capital

 

                 15,451,809

                 15,451,809

Merger reserve

 

                  (1,049,386)

                  (1,049,386)

Retained earnings

 

                117,458,918

                100,201,260

Other components of equity

 

                (13,970,777)

                  (8,512,552)

Total equity attributable to equity holders of the parent

                121,730,725

                109,931,292

 

 

Notes

As at

As at

 

 

30 September 2018

31 March 2018

 

 

Unaudited

Audited

 

Liabilities

 

 

 

Non-current

 

 

 

Long term borrowings

 

                     280,594

                 46,038,369

Employee benefit obligations

 

                   3,878,639

                   4,200,708

Other non-current liabilities

 

                     218,250

                     269,038

Deferred tax liability

 

                   7,511,920

                   7,375,578

Non-current liabilities

 

                 11,889,403

                 57,883,693

 

 

 

 

Current

 

 

 

Short term borrowings

 

                             -  

                     402,986

Trade and other payables

 

                   9,197,777

                 13,258,193

Employee benefit obligations

 

                     716,169

                     700,761

Current tax liabilities

 

                     393,606

                     246,560

Current portion of long term borrowings

 

                 51,605,366

                 13,732,671

Other current liabilities

 

                   9,981,219

                   7,593,456

Current liabilities

 

                 71,894,137

                 35,934,627

 

 

 

 

Total equity and liabilities

 

               205,514,265

               203,749,612

 

(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 September 2018

30 September 2017

 

 

Unaudited

Unaudited

 

 

 

 

Income from operations

 

 

 

Revenue from services

 

82,361,309

75,207,914

Other operating income

 

2,724,771

764,053

 

 

85,086,079

75,971,967

 

 

 

 

Cost and expenses

 

 

 

Outsourced service cost

 

17,959,356

23,499,165

Employee benefits expense

 

35,284,407

30,375,060

Depreciation and amortisation

 

2,680,368

2,412,253

Other expenses

 

5,735,424

4,660,133

 

 

61,659,555

60,946,611

 

 

 

 

Operating profit

 

23,426,525

15,025,356

Finance income

 

288,208

308,419

Finance cost

 

                     (2,760,603)

                   (3,236,393)

Profit before tax

 

20,954,130

12,097,382

 

 

 

 

Income tax expense

 

3,696,473

1,794,344

Profit for the year attributable to equity holders of the parent

17,257,657

10,303,038

 

Earnings per share

9

 

 

Basic

 

                              0.09

0.05

Diluted

 

                              0.09

0.05

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)

 

Unaudited Condensed 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 September 2018

30 September 2017

 

 

Unaudited

Unaudited

 

 

 

 

Profit after tax for the year

 

                     17,257,657

                   10,303,038

Exchange differences on translating foreign operations

                     (5,458,225)

                     (409,276)

 

 

 

 

Total comprehensive income attributable to equity holders

11,799,432

9,893,762

 

 (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

Additional Paid in Capital

Share compensation reserve

Merger reserve

 Other components of equity

 Retained earnings

 Total equity

 

 

 

 

 

 Foreign currency translation reserve

 Net defined

 benefit

 liability

Balance as at 01 April 2017

      3,776,175

         15,451,809

          

63,986

   (1,049,386)

 

(8,950,271)

       437,785

 

79,760,048

   89,490,146

Profit for the year

 

 -

                     -  

 

 -

 

 -

      

        -  

 

 -

  20,441,212

   20,441,212

Other comprehensive gain/(loss)

 

 -

                     -  

 

      - 

     

  - 

 

 (269,138)

       269,072

 

 -

             (66)

Total comprehensive income for the period

          

      -  

                     -  

           

      -  

            

   -  

    (269,138)

       269,072

  20,441,212

   20,441,146

Balance as at 31 March 2018

      3,776,175

         15,451,809

         

  63,986

   (1,049,386)

 

 (9,219,409)

       706,857

 

 100,201,260

  109,931,292

 

(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

 Additional Paid in Capital

 Share compensation reserve

 Merger reserve

 Other components of equity

 Retained earnings

 Total equity

 

 

 

 

 

 Foreign currency translation reserve

 Net defined

 benefit

 liability

Balance as at 01 April 2018

      3,776,175

         15,451,809

      

     63,986

   (1,049,386)

   (9,219,409)

       706,857

 

 100,201,260

  109,931,292

Profit for the year

 

 -

                     -  

 

 -

 

 -

        

       -  

 

 -

   17,257,657

   17,257,657

Other comprehensive loss

 

 -

                     -  

   

    - 

    

   - 

 

  (5,458,225)

               -  

 

 -

   (5,458,225)

Total comprehensive income for the period

                -  

                     -  

               

  -  

               -  

  

5,458,225)

               -  

   17,257,657

    11,799,433

Balance as at 30 September 2018

      3,776,175

         15,451,809

     

      63,986

   (1,049,386)

 

 (14,677,634)

       706,857

  117,458,917

  121,730,724

 

(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

For the six months ended

 

 

30 September 2018

30 September 2017

 

 

 

 

(A) Cash flow from operating activities

 

 

 

Profit before tax

 

               20,954,130

               12,097,382

Adjustments

 

 

 

Depreciation and amortisation

 

                 2,680,368

                 2,412,253

Loss/(Profit) on disposal of property, plant and equipment

                      (9,312)

                      (1,377)

Trade receivables written-off/provision for doubtful debts

                            (1)

                             3

Sundry balances written back

 

                         (410)

                            -  

Foreign exchange gain

 

                (2,398,514)

                   (379,861)

Finance income

 

                   (288,208)

                   (308,419)

Finance cost

 

                 2,760,603

                 3,236,393

 

 

               23,698,655

               17,056,375

 

 

 

 

Changes in operating assets and liabilities

 

 

 

(Increase)/ Decrease in trade and other receivables

                (4,050,098)

                (7,515,195)

(Increase)/ Decrease in other assets (current and non-current)

                   (305,985)

                 1,080,807

Increase / (Decrease) Non-current liabilities, trade payables & other current liabilities

                (3,685,214)

                 5,735,238

(Decrease)/ Increase in employee benefit obligations

                   (657,949)

                   (369,580)

Cash generated from operations

 

               14,999,410

               15,987,645

 

 

 

 

Income taxes paid

 

                (2,704,661)

                (1,226,520)

Net cash generated from operating activities

 

               12,294,749

                14,761,125

 

 

 

 

(B) Cash flow for investing activities

 

 

 

Payments for purchase of property plant and equipment

                (2,005,663)

                   (313,491)

Investment in fixed deposit (Net)

 

                     40,211

                (1,216,468)

Proceeds from disposal of property, plant & equipment

                       9,312

                       1,553

Payments for purchase of other intangible assets

 

                   (196,939)

                   (203,135)

Interest received

 

                    263,654

                    392,764

Net cash used in investing activities

 

               (1,889,425)

               (1,338,778)

 

 

 

For the six months  ended

For the six months  ended

 

 

30 September 2018

30 September 2017

 

 

 

 

 

 

(C ) Cash flow from financing activities

 

 

 

Interest paid

 

                (2,371,072)

                (2,800,764)

Repayment of long-term borrowings

 

                (8,274,611)

                (9,079,964)

Net cash used in financing activities

 

              (10,645,683)

              (11,880,728)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

                  (240,358)

                 1,541,619

Cash and cash equivalents at the beginning of the year

               33,371,550

               18,234,525

Effect of exchange rate changes on cash

 

                    292,269

                    162,777

Cash and cash equivalents at the end of the year

 

               33,423,460

               19,938,921

 

 

 

 

Cash and cash equivalents comprise

 

 

 

Cash in hand

 

                     12,681

                     24,939

Balances with banks in current account

 

               33,410,779

               19,913,982

 

 

               33,423,460

               19,938,921

 

 (The accompanying notes are an integral part of these Consolidated 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.

 

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 was listed on the Alternative Investment Market ('AIM') of London Stock Exchange on 14 September 2010.

 

iEnergizer through its subsidiaries iEnergizer Holdings Limited, iEnergizer Group FZ - LLC, iEnergizer IT Services Private Limited, iEnergizer Management Services Limited, iEnergizer BPO Limited, iEnergizer Aptara Limited and Aptara Inc and subsidiaries. (together the 'Group') is engaged in the business of call centre operations, providing business process outsourcing (BPO) and content delivery services, 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.   GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS

These Unaudited Condensed Consolidated Interim Financial Statements are for the six months ended 30 September 2018 and 2017. 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 annual financial statements for the years ended 31 March 2018 and 2017.

 

The Unaudited Condensed Consolidated Interim Financial Statements have been prepared and presented in United States Dollar (US$) which is the Company's functional currency.

 

These Unaudited Condensed Consolidated Interim Financial Statements were approved by the Board on 12 November, 2018

 

The Group has applied the same accounting policies in preparing these unaudited management financial information as adopted in the most recent annual audited financial information of the Group.

 

3.   SIGNIFICANT ACCOUNTING POLICIES

The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the years ended 31 March 2018 and 2017.

 

Standards issued but not yet effective

 

·     IFRS 16 Leases

 

On 13 January 2016, the International Accounting Standards Board issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The Standard also contains enhanced disclosure requirements for lessees. The effective date for adoption of IFRS 16 is annual periods beginning on or after 1 January 2019, though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers.

 

4.   SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY

 

When preparing the Unaudited Condensed Consolidated Interim Financial Statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results.

 

The judgements, estimates and assumptions applied in the Unaudited Condensed Consolidated Interim Financial Statements, including the key sources of estimation uncertainty were the same as those applied in the Group's last audited financial statements for the year ended 31 March 2018.

5.   GOODWILL

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

 

Particulars

Amount

Balance as at 01 April 2017

         102,265,472

Impairment loss recognized

-

Translation adjustment

        (386)

Balance as at 31 March 2018

      102,265,086

 

Particulars

Amount

Balance as at 01 April 2018

102,265,086

Translation adjustment

(13,473)

Balance as at 30 September 2018

102,251,613

 

6.   OTHER INTANGIBLE ASSETS

The Intangible assets comprise of computer software, customer contracts.

 

Particulars

Customer contracts*

Computer softwares

Patent

Trade mark

Intangibles under development

Total

Cost

 

 

 

 

 

Balance as at 01 April 2017

        24,122,664

      3,241,435

            100,000

       12,000,000

        132,490

      39,596,589

Additions

                       -  

 

 

 

           357,658

Disposals

                       -  

                      -  

                      -  

                  -  

                     -  

Translation adjustment

                   (432)

                      -  

                      -  

                  -  

            (10,087)

Balance as at 31 March 2018

         24,122,232

      3,589,438

             100,000

        12,000,000

        132,490

       39,944,160

 

 

 

 

 

 

Accumulated amortisation

 

 

 

 

 

Balance as at 01 April 2017

        19,027,100

      2,868,051

                      -  

                      -  

        132,490

      22,027,641

Amortisation/ impairment for the period

          2,779,416

                      -  

                      -  

                  -  

        3,157,655

Disposals

                       -  

                      -  

                      -  

                  -  

                     -  

Translation adjustment

                   (432)

                      -  

                      -  

                  -  

            (11,604)

Balance as at 31 March 2018

         21,806,084

       3,235,118

                      -  

                      -  

        132,490

       25,173,692

 

 

 

 

 

 

Carrying values as at 31 March 2018

           2,316,148

         354,320

             100,000

        12,000,000

                  -  

       14,770,468

 

*Customer contracts are intangible assets created for long standing customer relationships in content delivery segment. Once the relationship is established the work continues to flow on a year to year basis. The carrying amount of such contracts is US$ 2,316,148 and remaining amortization period is 1.8 years.

Particulars

Customer contracts*

Computer softwares

Patent

Trade mark

Intangibles under development

Total

Cost

 

 

 

 

 

 

Balance as at 01 April 2018

          24,122,232

       3,589,438

         100,000

       12,000,000

         132,490

     39,944,160

Additions

                      -  

          196,939

 

 

 

         196,939

Disposals

                      -  

                  -  

                 -  

                   -  

                 -  

                 -  

Translation adjustment

               (15,068)

         (326,949)

                 -  

                   -  

                 -  

        (342,017)

Balance as at 30 Sept 2018

          24,107,164

       3,459,428

         100,000

       12,000,000

         132,490

     39,799,082

 

 

 

 

 

 

 

Accumulated amortisation

 

 

 

 

 

 

Balance as at 01 April 2018

          21,806,084

       3,235,118

                 -  

                   -  

         132,490

     25,173,692

Amortisation/ impairment for the period

           1,389,708

          262,903

                 -  

                   -  

                 -  

       1,652,611

Disposals

                      -  

                  -  

                 -  

                   -  

                 -  

                 -  

Translation adjustment

               (15,068)

         (305,608)

                 -  

                   -  

                 -  

        (320,676)

Balance as at 30 Sept 2018

         23,180,724

       3,192,413

                 -  

                   -  

         132,490

     26,505,627

 

 

 

 

 

 

 

Carrying values as at 30 Sept 2018

              926,440

          267,015

         100,000

       12,000,000

                 -  

     13,293,455

*Customer contracts are basically intangible assets created for long standing customer relationships in content delivery segment. Once the relationship is established the work continues to flow on a year to year basis. The carrying amount of such contracts is US$ 926,440 and remaining amortization period is 0.3 years.

7.   PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment comprise of the following:

 

Particulars

Computer and data equipment

Office Equipment

Furniture and fixtures

Air conditioner and generator

Vehicle

Leasehold improvements

Plant and machinery

Capital work in progress

Total

Cost

 

 

 

 

 

 

 

 

 

Balance as at 01 April 2017

          5,078,296

860,778

1,261,393

360,346

30,181

          4,380,935

2,175,170

                   -  

14,147,099

Additions

1,100,919

18,077

2,263

22,700

6,930

           34,913

        96,240

122,531

1,404,573

Disposals (Net)

 (48,009)

 (2,222)

 (12,944)

 (3,716)

                  -  

 (2,238)

 (9,569)

-  

 (78,698)

Translation and other adjustment

 (21,385)

 (2,340)

 (3,427)

 (1,093)

 (45)

 (13,012)

 (5,787)

                   -  

 (47,089)

Balance as at 31 March 2018

6,109,821

 874,293

 1,247,285

 378,237

 37,066

       4,400,598

2,256,054

122,531

15,425,885

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

Balance as at 01 April 2017

3,928,259

 584,284

 669,944

 170,828

 29,289

          2,081,895

    1,510,606

                   -  

8,975,105

Depreciation for the year

918,222

 139,744

 85,720

39,026

1,534

             475,450

252,932

                   -  

1,912,628

Disposals (Net)

 (45,243)

 (2,222)

 (12,944)

 (375)

                  -  

 (2,238)

 (9,569)

                   -  

 (72,591)

Translation and other adjustments

 (18,714)

 (2,502)

 (2,363)

 (822)

 (55)

 (9,704)

 (5,785)

                   -  

 (39,945)

Balance as at 31 March 2018

4,782,524

719,304

740,357

208,657

30,768

       2,545,403

    1,748,184

                   -  

10,775,197

Carrying values as at 31 March 2018

1,327,297

154,989

506,928

169,580

6,298

          1,855,195

      507,870

122,531

4,650,688

 

Particulars

Computer and data equipment

Office Equipment

Furniture and fixtures

Air conditioner and generator

Vehicle

Leasehold improvements

Plant and machinery

Capital work in progress

Total

Cost

 

 

 

 

 

 

 

 

 

Balance as at 01 April 2018

           6,109,821

          874,293

       1,247,285

           378,237

         37,066

       4,400,598

   2,256,054

       122,531

  15,425,885

Additions

           1,538,608

            14,489

         114,747

           154,624

                 -  

         131,768

      125,276

       (62,329)

    2,017,182

Disposals (Net)

                   (825)

            (4,300)

                  -  

                   -  

      (14,885)

                  -  

       (4,699)

               -  

      (24,709)

Translation and other adjustment

             (631,067)

          (74,899)

        (118,250)

            (44,058)

        (2,228)

        (420,373)

   (191,023)

                -  

  (1,481,898)

Balance as at 30 Sept 2018

           7,016,537

          809,583

       1,243,782

           488,803

         19,953

       4,111,993

   2,185,608

         48,683

  15,924,942

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

Balance as at 01 April 2018

           4,782,524

          719,304

         740,357

           208,657

         30,768

      2,545,403

   1,748,185

               -  

  10,775,198

Depreciation for the year

              484,564

            56,011

         132,558

             23,675

             902

         212,018

      118,029

                -  

    1,027,757

Disposals (Net)

                   (825)

            (4,300)

                  -  

                   -  

      (14,885)

                  -  

       (4,699)

                -  

      (24,709)

Translation and other adjustments

             (488,649)

          (61,822)

          (70,652)

            (22,884)

        (1,672)

        (245,108)

   (149,657)

                -  

  (1,040,444)

Balance as at 30 Sept 2018

           4,777,614

          709,193

         802,263

           209,448

         15,113

       2,512,313

   1,711,858

               -  

  10,737,802

Carrying values as at 30 Sept 2018

           2,238,923

          100,390

          441,519

           279,355

           4,840

       1,599,680

     473,750

         48,683

    5,187,140

8.   SHORT TERM FINANCIAL ASSETS

Particulars

30 September 2018

31 March 2018

Security deposits

             32,007  

           122,122

Restricted cash

         2,934,228

         3,037,622

Short term investments (fixed deposits with maturity less than 12 months)

         2,308,178

         4,461,187

Derivative financial instruments

-

             13,304

Due from officers and employees

             28,526

             38,225

Others

             26,760

               2,206

 

5,329,699      

7,674,666      

 

 

 

 

         

Short term investments comprise of investment through banks in deposits denominated in various currency units bearing fixed rate of interest.

9.   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 period.

 

Calculation of basic and diluted profit per share for the period ended 30 September 2018 is as follows:

 

Basic earnings per share

Particulars

30 September 2018

30 September 2017

Profit attributable to shareholders

 

17,257,657

10,303,038

Weighted average numbers shares outstanding

190,130,008

190,130,008

Basic earnings per share (US$)

 

                         0.09                             

                        0.05 

 

Diluted earnings per share

Particulars

30 September 2018

30 September 2017

Profit attributable to shareholders

 

17,257,657

10,303,038

Weighted average numbers shares outstanding

190,130,008

190,130,008

Diluted earnings  per share (US$)

 

                              0.09                     

                    0.05

         

 

10.  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 Aggarwal

 

 

II. Entities directly or indirectly through one or more intermediaries, control, are controlled by, or are under common control with, the reported enterprises

 

EICR (Cyprus) Limited (Parent of iEnergizer Limited)

 

 

 

 

 

III. Key management personnel ("KMP") and significant shareholders

Mr. Anil Aggarwal (Ultimate Shareholder, EICR Limited)

 

Mr. Chris de Putron (Director, iEnergizer Limited)

Mr. Mark De La Rue (Director, iEnergizer Limited)

Mr. Marc Vassanelli (Director, iEnergizer Limited)

Mr. Ashish Madan (Director, iEnergizer Limited) w.e.f.             16 August 2018

 

 

 

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

 

Transactions with KMP and relative of KMP

 

Particulars

30 September 2018

Transactions during the period ended

 

 

Short term employee benefits

 

 

Remuneration paid to directors

 

 

Chris de Putron

6,559

             6,204

Mark De La Rue

6,559

             6,204

Marc Vassanelli

19,678

            18,613

 

 

 

Balances at the end of

 

 

Total remuneration payable

71,678  

            30,764

11.  SEGMENT REPORTING

Management currently identifies the Group's two service lines business process outsourcing and content delivery as operating segments on the basis of operations. These operating segments are monitored and operating and strategic decisions are made on the basis of operating segment 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.    Business Process Outsourcing

2.    Content delivery

3.    Others

 

The measurement of each segment's revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Unaudited Condensed Consolidated Interim Financial Statements. In addition, two minor operating segments, for which the quantitative thresholds have not been met, are currently combined below under 'Others'. Segment information can be analysed as follows for the reporting periods under review:

 

 

 

 

 

30 September 2018

 

Business Process Outsource

Content delivery

Others

Total

Revenue from external customers

         48,093,184

         34,268,125

              -  

      82,361,309

Other income ( including realized foreign exchange gains )

             409,617

             471,386

            850

          881,853

Segment revenue

         48,502,801

         34,739,511

            850

      83,243,162

Cost of outsourced Services

         13,506,125

           4,453,231

              -  

      17,959,356

Employee benefit expense

         15,973,780

         19,310,627

              -  

      35,284,407

Other expenses

           1,749,646

           3,515,201

      470,577

        5,735,424

Earning before interest, tax, depreciation and amortisation

         17,273,250

          7,460,453

  (469,727)

  24,263,976

Unrealized Foreign Exchange gain/(loss)

                     -  

           1,842,918

              -  

        1,842,918

Depreciation and amortisation

             605,108

           2,075,260

              -  

        2,680,368

Segment operating profit

      16,668,142

        7,228,110

 (469,727)

   23,426,526

Other Income/expense :

 

 

 

 

Finance income

             138,957

             126,948

        22,303

          288,208

Finance costs

               16,061

           1,139,625

1,604,916

        2,760,603

Profit before tax

         16,791,038

           6,215,433

2,052,340

      20,954,131

Income tax expense

           2,526,676

           1,169,797

              -  

        3,696,473

Profit after tax

         14,264,361

          5,045,637

2,052,340)

      17,257,658

Segment assets

43,431,117

75,456,382

86,626,765

205,514,264

Segment liabilities

15,147,228

46,029,831

22,606,489

83,783,548

Capital expenditure

1,874,708

339,414

              -  

2,214,122

 

 

 

 

30 September 2017

 

Business Process Outsource

Content delivery

Others

Total

Revenue from external customers

          40,646,819

          34,561,096

               -  

       75,207,914

Other income (including realized foreign exchange gains)

               46,347

              712,954

          6,862

           766,163

Segment revenue

         40,693,166

          35,274,050

          6,862

      75,974,078

Cost of outsourced Services

          18,635,430

            4,863,735

               -  

       23,499,165

Employee benefit expense

          10,532,067

          19,842,993

               -  

       30,375,060

Other expenses

           1,024,197

            3,392,233

       243,703

         4,660,133

Earning before interest, tax, depreciation and amortisation

          10,501,472

            7,175,089

   (236,841)

       17,439,720

Unrealized Foreign Exchange gain/(loss)

                     -  

                 (2,110)

               -  

             (2,110)

Depreciation and amortisation

              383,260

            2,028,993

               -  

         2,412,253

Segment operating profit

       10,118,212

         5,143,986

  (236,841)

    15,025,357

Other Income/expense:

 

 

 

 

Finance income

              171,167

              135,911

          1,341

           308,419

Finance costs

               36,623

            1,331,584

  1,868,186

         3,236,393

Profit before tax

         10,252,756

            3,948,313

 (2,103,686)

       12,097,383

Income tax expense

           1,074,326

              720,016

               -  

         1,794,342

Profit after tax

           9,178,430

           3,228,297

 (2,103,686)

       10,303,041

Segment assets

33,959,838

81,481,417

79,609,989

195,051,244

Segment liabilities

14,622,231

51,443,613

29,601,494

95,667,338

Capital expenditure

220,419

296,208

               -  

516,627

 

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

30 September 2018

Revenue from 

Segment

Amount

Customer 1

Business Process Outsource

            9,763,189  

 

30 September 2017

Revenue from 

Segment

Amount

Customer 1

Business Process Outsource

8,255,436

12.  FINANCIAL ASSETS AND LIABILITIES

Fair value of carrying amounts of assets and liabilities presented in the statement of financial position relates to the following categories of assets and liabilities:

 

Financial assets

30 September 2018

31 March 2018

 

 

 

Non-current assets

 

 

Loans and receivables

 

 

Security deposits

            455,273

          416,167

Restricted cash

          1,544,927

            72,279

Fixed deposit

            743,544

62,088

Current assets

 

 

Loans and receivables

 

 

Trade receivables

               30,997,595

        27,346,367

Cash and cash equivalents

              33,423,460

        33,774,536

Restricted cash

         2,934,228

       3,037,622

Security deposits

             32,007

          122,122

Short term investments

         2,308,178

       4,461,187

Due from officers and employees

             28,526

                 38,225

Other short term financial assets

             26,760

                 2,206

 

 

 

Fair value through profit and loss:

 

 

Derivative financial instruments

-

13,304

 

72,494,498

69,346,103

 

 

 

 

Financial liabilities

30 September 2018

31 March 2018

 

 

 

Non-current liabilities

 

 

Financial liabilities measured at amortized cost:

 

 

Long term borrowings

                  280,594

46,038,369

Current liabilities

 

 

Financial liabilities measured at amortized cost:

 

 

Short term borrowings

-

402,986

Trade payables

              9,197,777

 13,258,193

Current portion of long term borrowings

              51,605,366

 13,732,671

Other current liabilities

                9,981,219

 7,593,456

 

 

 

Fair value through profit and loss:

 

 

Derivative financial instruments

1,456,158

-

 

 

 

 

72,521,114

81,025,675

 

These non-current financial assets and liabilities, current financial assets and liabilities have been recorded at their respective carrying amounts as the management considers the fair values to be not materially different from their carrying amounts recognised in the statement of financial positions as these are expected to realise within one year from the reporting dates. Derivative financial instruments, recorded at fair value through profit and loss, are recorded at their respective fair values on the reporting dates.

 

13.  FAIR VALUE HIERARCHY

 

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - 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).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

 

No financial assets/liabilities have been valued using level 1 and 3 fair value measurements.

 

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

 

30 September 2018

Total

Fair value measurements at reporting date using

 

Level 2

Liabilities

(Notional amount)

 

 

Derivative instruments

 

 

 

Forward contracts (currency - US$/INR)

19,100,000

 

1,456,158

 

31 March 2018

Total

Fair value measurements at reporting date using

 

Level 2

Assets

(Notional amount)

 

 

Derivative instruments

 

 

 

Forward contracts (currency - US$/INR)

14,000,000

 

13,304

 

14.  COMMITMENT AND CONTINGENCIES

 

As at 30 September 2018 and 31 March 2018, the Group had a capital commitment of US$42,952 and US$14,810 respectively for acquisition of property, plant and equipment.

 

The contingent liability in respect of claims filed by erstwhile employees against the group companies amounts to US$122,522 and US$125,336 as on 30 September 2018 and 31 March 2018 respectively and in respect of interest on VAT amounts to US$9,744 as on 30 September 2018 (US$10,755 as on 31 March 2018).

 

The contingent liability in respect of bonus based on pending litigations at various jurisdictions amounting to US$223,388 as on 30 September 2018 (US$249,903 as on 31 March 2018).

Guarantees: As at 30 September 2018 and 31 March 2018, guarantees provided by banks on behalf of the group companies to the revenue authorities and certain other agencies, amount to approximately US$81,229 and US$82,036 respectively.

15.  ESTIMATES

The preparation of interim financial statements require management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

 

In preparing these Unaudited Condensed Consolidated Interim Financial Statements, the significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the years ended 31 March 2018 and 2017.

16.  FINANCIAL RISK MANAGEMENT

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the years ended 31 March 2018 and 2017.

 


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