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iEnergizer Limited (IBPO)

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Monday 13 November, 2017

iEnergizer Limited

INTERIM RESULTS

RNS Number : 2338W
iEnergizer Limited
13 November 2017
 

13 November 2017

 

iEnergizer Limited

 

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

 

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

 

iEnergizer, the technology services and media solutions leader for the digital age, reports interim results for the six months ended September 30, 2017.

 

Financial Highlights:

 

Profitable growth sustained through increasing the value of existing customer relationships and adding new customers, together with managing costs carefully across the business.

 

·     Revenue increased 6% to $76.0m (H1 2017: $71.5m)

·     EBITDA up 6% to $17.4m (H1 20171: $16.4m)

·     EBITDA margin at 23% (H1 20171: 23%)

·     Operating profit up 9.1% to $15.0m (H1 2017: $13.8m)

·     Operating profit margin at 19.8% (H1 2017: 19.3%)

·     Profit before tax up 19% to $12.1m (H1 2017: $10.2m)

·     Profit before tax margin increased to 15.9% (H1 2017: 14.2%)

·     Profit after tax up 18% to $10.3m (H1 2017: $8.7m)

·     Profit after tax margin at 13.6% (H1 2017: 12.2%)

·     Cash and cash equivalents of $19.9m (31 March 2017: $18.3m)

·     Term Debt of $66.4m (31 March 2017: $75.0m).2

 

(1) EBITDA adjusted for Non-recurring expenses relate to one off cost of US$0.2mn for professional charges.

(2) The Company is compliant of all applicable financial covenants including on-time payments of loan installments and interest.

 

Operational Highlights

 

Maintained focus on recurring revenue streams from business critical processes; new product launches in the Content division; and long-term customer relationships.

 

·     Services: Revenue growth of 6.5% to $75.2m  (H1 2017 $70.6)

·     Real Time Processing ("RTP"): Continued strong revenue growth of c.11% with particular strength in Travel, Consumer durable & Banking Financial Services and Insurance verticals ("BFSI")

·     Back Office Services ("BOS"): Continued focus on recurring revenue streams and long term customer relationships resulted in strong revenue growth of more than 19% coming predominantly from Media, Gaming, Telecom and BFSI customers

·     Content Division: Sustainable long term growth prospects for content services:

New customer in our Digital Solutions unit from the Oil & Gas sector, an industry which presents an opportunity for growth

New product, Scientific Publishing and Remittance Integration Services ("SciPris"), has been successfully launched and deal signed with an existing client. More deals under negotiation with existing and new customers. Revenue generation expected to start in H2 of 2018

Steady work streams from core customers, however 3% decline of aggregate revenue from services in content division ($34.6m in H1 2018 vs $35.7m in H1 2017) attributable to conclusion of one-time projects

·     Focused cost saving initiatives:

Successful generation of efficiencies in "Other expenses" of more than 3% ($4.7m  in H1 2018 vs $4.8m in H1 2017)

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

Leaner organization using technology effectively and optimizing utilization of the Company's resources to handle greater volumes from key customers without notable additional human resource

 

·     US based sales team following strategy to: 1) enhance and grow key accounts; 2) identify and win new business from both new and existing customers; and 3) cross-sell and generate leads for additional services across all verticals of the company.

 

Marc Vassanelli, Chairman of iEnergizer, commented:

 

"As the growth in revenue and profits demonstrates, whilst at the same time maintaining our focus on cost efficiencies, we are seeing real progress across the Company, and are pleased to report iEnergizer's continued strong performance in the first half of this financial year.

 

"This reflects our continued focus on recurring revenue streams from business critical processes, new product launches in the Content division and long term customer relationships with both existing and new customers, as well as the highly valued ongoing hard work and dedication of colleagues across iEnergizer.

 

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

 

"We expect current market trends to continue through the second half of the year and look forward to the remainder of the year with confidence."

 

-Ends-

 

Enquiries:

 

 

 

 

iEnergizer Ltd.

+44 (0)1481 242233

 

Chris de Putron

 

 

Mark De La Rue

 

 

 

FTI Consulting - Communications

Adviser

+44 (0)20 3727 1000

 

Edward Westropp, Jonathon Brill, Eleanor

Purdon

 

 

 

 

Arden Partners - Nominated adviser and

Broker

+44 (0)20 7614 5900

 

Steve Douglas

 

 

       

 

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 2017 and 2016

 

Contents

 

Unaudited Condensed Consolidated Statements of Financial Position                            2

Unaudited Condensed Consolidated Income Statements                                                 4

Unaudited Condensed Consolidated Statements of Other Comprehensive Income         5

Unaudited Condensed Consolidated Statements of Changes in Equity                            6

Unaudited Condensed Consolidated Statements of Cash Flows                                       8

Notes to Unaudited Condensed Consolidated Financial Statements                              10

 

 

Unaudited Condensed Consolidated Statements of Financial Position
(All amounts in United States Dollars, unless otherwise stated)

 

Notes

 

As  at

 

As  at

 

 

 

30 September 2017

 

31 March 2017

 

 

 

Unaudited

 

Audited

ASSETS

 

 

 

 

 

Non-current

 

 

 

 

 

Goodwill

5

 

         102,264,631

 

           102,265,472

Other intangible assets

6

 

             16,167,311

 

             17,568,948

Property, plant and equipment

7

 

               4,632,586

 

               5,171,994

Long- term financial asset

 

 

                  576,965

 

                 729,655

Non-current tax assets

 

 

               1,093,135

 

               1,732,546

Deferred tax asset

 

 

               9,261,370

 

               9,358,439

Other non current assets

 

 

                          -  

 

                   61,652

Non-current assets

 

 

           133,995,998

 

           136,888,706

 

 

 

 

 

 

Current

 

 

 

 

 

Trade and other receivables

 

 

            29,305,467

 

             25,108,966

Cash and cash equivalents

 

 

             19,938,921

 

             18,332,480

Short- term financial assets

8

 

               7,709,490

 

               7,018,233

Current tax assets

 

 

                  887,338

 

                 819,111

Other current assets

 

 

               3,214,030

 

               3,023,370

Current assets

 

 

             61,055,246

 

             54,302,160

 

 

 

 

 

 

Total assets

 

 

            195,051,244

 

           191,190,866

 

 

 

 

 

 

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

 

 

             90,063,086

 

             79,760,048

Other components of equity

 

 

          (8,921,762)

 

           (8,512,486)

Total equity attributable to equity holders of the parent

 

 

 

99,383,908

 

 

 89,490,146

 

 

Notes

 

As at

 

As  at

 

 

 

30 September 2017

 

31 March 2017

 

 

 

Unaudited

 

Audited

 

Liabilities

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

Long term borrowings

 

 

            52,457,837

 

             61,071,201

Employee benefit obligations

 

 

              4,307,083

 

                4,488,504

Other non-current liabilities

 

 

                 324,914

 

                  377,900

Deferred tax liability

 

 

              5,452,978

 

                5,250,487

Non-current liabilities

 

 

            62,542,812

 

              71,188,092

 

 

 

 

 

 

Current

 

 

 

 

 

Short term borrowings

 

 

                  84,349

 

                    97,955

Trade and other payables

 

 

            11,419,968

 

                8,830,810

Employee benefit obligations

 

 

                 630,274

 

                  636,546

Current tax liabilities

 

 

                           -

 

                302,920

Current portion of long term borrowings

 

 

            13,934,206

 

             13,965,177

Other current liabilities

 

 

              7,055,727

 

                6,679,220

Current liabilities

 

 

            33,124,524

 

              30,512,628

 

 

 

 

 

 

Total equity and liabilities

 

 

           195,051,244

 

             191,190,866

 

(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 2017

 

30 September 2016

Unaudited

 

Unaudited

 

 

 

 

 

Income from operations

 

 

 

 

Revenue from services

 

75,207,914

 

70,613,189

Other operating income

 

764,053

 

874,811

 

 

75,971,967

 

71,488,000

 

 

 

 

 

Cost and expenses

 

 

 

 

Outsourced service cost

 

23,499,165

 

20,342,349

Employee benefits expense

 

30,375,060

 

30,111,166

Depreciation and amortisation

 

2,412,253

 

2,446,182

Other expenses

 

4,660,133

 

4,814,479

 

 

60,946,611

 

57,714,176

 

 

 

 

 

Operating profit

 

15,025,356

 

13,773,824

Finance income

 

308,419

 

163,978

Finance cost

 

               (3,236,393)

 

            (3,781,295)

Profit before tax

 

12,097,382

 

10,156,507

 

 

 

 

 

Income tax expense

 

1,794,344

 

1,418,337

Profit for the year attributable to equity holders of the parent

 

 

10,303,038

 

 

8,738,170

 

Earnings per share

9

 

 

 

 

Basic

 

                    0.05

 

0.04

Diluted

 

                    0.05

 

                  0.04

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 2017

 

30 September 2016

Unaudited 

 

Unaudited

 

 

 

 

 

Profit after tax for the year

 

                10,303,038

 

               8,738,170

Exchange differences on translating foreign operations

 

                    (409,276)

 

                (451,864)

 

 

 

 

 

Total comprehensive income attributable to equity holders

 

 

9,893,762

 

 

8,286,306

 

(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 2016

3,776,175

15,451,809

63,986

(1,049,386)

(10,106,154)

184,493

64,802,160

73,123,083

Profit for the year

-

-

-

-

-

-

14,957,888

14,957,888

Other comprehensive loss

-

-

-

-

1,155,883

253,292

-

1,409,175

Total comprehensive income for the period

-

-

-

-

1,155,883

253,292

14,957,888

16,367,063

Balance as at 31 March 2017

3,776,175

15,451,809

63,986

(1,049,386)

(8,950,271)

437,785

79,760,048

89,490,146

                                               

(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

 -

                          -  

 -

 -

                     -  

 -

  10,303,038

   10,303,038

Other comprehensive loss

 -

                         -  

       - 

       - 

      (409,276)

                -  

 -

      (409,276)

Total comprehensive income for the period

                          -  

                             -  

                         -  

                        -  

            (409,276)

                    -  

      10,303,038

          9,893,762

Balance as at 30 September 2017

        3,776,175

           15,451,809

             63,986

   (1,049,386)

   (9,359,547)

      437,785

90,063,086

99,383,908

 

(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 2017

30 September 2016

 

 

(A) Cash flow from operating activities

 

 

 

Profit before tax

 

             12,097,382

             10,156,507

Adjustments

 

 

 

Depreciation and amortisation

 

               2,412,253

               2,446,182

Loss on disposal of property, plant and equipment

 

                         -  

                       306

Profit on disposal of property, plant and equipment

 

                (1,377)

                         -  

Trade receivables written-off/provision for doubtful debts

 

                           3

                         -  

Provision for doubtful debts written back

 

                         -  

              (83,882)

Amortization of loan processing fee

 

                 435,629

                 477,985

Sundry balances written back

 

                         -  

                      (121)

Foreign exchange gain

 

             (379,861)

             (687,284)

Finance income

 

             (308,419)

              (163,978)

Finance cost

 

               2,800,764

               3,303,310

 

 

             17,056,375

             15,449,025

 

 

 

 

Changes in operating assets and liabilities

 

 

 

(Increase)/ Decrease in trade and other receivables

 

              (7,515,195)

               3,837,266

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

 

               1,080,807

 (1,734,529)

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

 

               5,735,238

         (3,817,642)

(Decrease)/ Increase in employee benefit obligations

 

            (369,580)

                   67,574

Cash generated from operations

 

             15,987,645

             13,801,694

 

 

 

 

Income taxes paid

 

         (1,226,520)

           (1,253,211)

Net cash generated from operating activities

 

             14,761,125

             12,548,483

 

 

 

 

(B) Cash flow for investing activities

 

 

 

Payments for purchase of property plant and equipment

 

                (313,491)

                (472,902)

Investment in fixed deposit (Net)

 

          (1,216,468)

                 167,613

Proceeds from disposal of property, plant & equipment

 

                     1,553

                       371

Payments for purchase of other intangible assets

 

                (203,135)

                (143,957)

Interest received

 

                 392,764

                 164,754

Net cash used in investing activities

 

             (1,338,778)

                (284,121)

 

 

 

 

For the six months  ended

 

 

30 September 2017

30 September 2016

 

 

 

 

         

 

(C ) Cash flow from financing activities

 

 

 

 

Interest paid

 

              (2,800,764)

              (3,303,310)

Repayment of long-term borrowings

 

              (9,079,964)

              (6,579,679)

Net cash used in financing activities

 

            (11,880,728)

             (9,882,989)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

               1,541,619

               2,381,373

Cash and cash equivalents at the beginning of the year

 

             18,234,525

               9,523,577

Effect of exchange rate changes on cash

 

                 162,777

                  (37,141)

Cash and cash equivalents at the end of the year

 

             19,938,921

             11,867,808

 

 

 

 

Cash and cash equivalents comprise

 

 

 

Cash in hand

 

                   24,939

                   15,240

Balances with banks in current account

 

             19,913,982

             11,852,568

 

 

             19,938,921

             11,867,808

           

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 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 2017 and 2016. 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 2017 and 2016.

 

The Unaudited Condensed Consolidated Interim Financial Statementshave 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 10 November, 2017.

 

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 2017 and 2016.

 

Standards issued but not yet effective

 

·     IFRS9 Financial instruments

 

In July 2014, the IASB completed its project to replace IAS 39, Financial Instruments: Recognition and Measurement by publishing the final version of IFRS 9: Financial Instruments. IFRS 9 introduces a single approach for the classification and measurement of financial assets according to their cash flow characteristics and the business model they are managed in, and provides a new impairment model based on expected credit losses. IFRS 9 also includes new guidance regarding the application of hedge accounting to better reflect an entity's risk management activities especially with regard to managing non-financial risks. The new standard is effective for annual reporting periods beginning on or after January 1, 2018, while early application is permitted. The management is currently evaluating the impact that this new standard will have on its consolidated financial statements.

 

·     IFRS15 Revenue from Contract with Customers

 

IFRS 15 supersedes all existing revenue requirements in IFRS (IAS 11 Construction Contracts, IAS 18 Revenue and related interpretations). According to the new standard, revenue is recognized to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. IFRS 15 establishes a five step model that will apply to revenue earned from a contract with a customer (with limited exceptions), regardless of the type of revenue transaction or the industry. Extensive disclosures will be required, including disaggregation of total revenue; information about performance obligation; changes in contract asset and liability account balances between periods and key judgments and estimates. The standard permits the use of either the retrospective or cumulative effect transition method. The effective date for adoption of IFRS is annual period beginning on or after January 1, 2018. The Group is currently evaluating the impact of the above pronouncements on the Group's consolidated financial statements.

 

IFRS 16 Leases

 

On January 13, 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 January 1, 2019 (but not yet endorsed in EU), though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers. The Company is currently assessing the impact of adopting IFRS 16 on the Company's consolidated financial statements.

 

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 2017.

 

5.   GOODWILL

 

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

 

Particulars

Amount

Balance as at 01 April 2016

102,262,760

Translation adjustment

2,712

Balance as at 31 March 2017

102,265,472

 

 

Particulars

Amount

Balance as at 01 April 2017

102,265,472

Translation adjustment

(841)

Balance as at 30 September 2017

102,264,631

 

 

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 2016

     24,119,632

    2,834,176

         100,000

     12,000,000

        132,490

    39,186,298

Additions

                  -  

      344,545

 

 

 

        344,545

Disposals

                  -  

              -  

                 -  

                 -  

                -  

                -  

Translation adjustment

             3,032

        62,714

                 -  

                 -  

                -  

          65,746

Balance as at 31 March 2017

     24,122,664

    3,241,435

         100,000

    12,000,000

        132,490

   39,596,589

 

 

 

 

 

 

 

Accumulated amortisation

 

 

 

 

 

 

Balance as at 01 April 2016

     16,244,652

    2,469,926

                 -  

                 -  

        132,490

    18,847,068

Amortisation/ impairment for the period

       2,779,416

      336,740

                 -  

                 -  

                -  

      3,116,156

Disposals

                  -  

              -  

                 -  

                 -  

                -  

                -  

Translation adjustment

             3,032

        61,385

                 -  

                 -  

                -  

          64,417

Balance as at 31 March 2017

     19,027,100

    2,868,051

                 -  

                 -  

        132,490

    22,027,641

 

 

 

 

 

 

 

Carrying values as at 31 March 2017

       5,095,564

      373,384

         100,000

    12,000,000

                -  

    17,568,948

 

*Customer contracts are intangible assets created for long standing customer relationships 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 USD 5,095,564 and remaining amortization period is 2.8 years.

 

 

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

                  -  

      203,135

 

 

 

        203,135

Disposals

                  -  

              -  

                 -  

                 -  

                -  

                -  

Translation adjustment

               (941)

       (37,091)

                 -  

                 -  

                -  

         (38,032)

Balance as at 30 Sept 2017

     24,121,723

   3,407,479

         100,000

    12,000,000

        132,490

    39,761,692

 

 

 

 

 

 

 

Accumulated amortisation

 

 

 

 

 

 

Balance as at 30 Sept 2017

     19,027,100

    2,868,051

                 -  

                 -  

        132,490

    22,027,641

Amortisation/ impairment for the period

       1,389,708

      213,738

                 -  

                 -  

                -  

      1,603,446

Disposals

                  -  

              -  

                 -  

                 -  

                -  

                -  

Translation adjustment

               (941)

       (35,765)

                 -  

                 -  

                -  

         (36,706)

Balance as at 30 Sept 2017

     20,415,867

   3,046,024

                 -  

                 -  

        132,490

    23,594,381

 

 

 

 

 

 

 

Carrying values as at 30 Sept 2017

       3,705,856

      361,455

         100,000

    12,000,000

                -  

    16,167,311

 

*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 USD 3,705,856 and remaining amortization period is 1.3 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

Total

Cost

 

 

 

 

 

 

 

 

Balance as at 01 April 2016

            4,684,624

           755,893

           1,205,275

              261,991

               29,864

          4,280,712

          1,699,737

     12,918,096

Additions

               643,425

             12,848

                38,090

                90,087

                       -  

               27,753

             181,286

          993,489

Disposals (Net)

                (37,704)

             (2,133)

                       -

                        -

                       -

                      -  

             (10,416)

         (50,253)

Translation and other adjustment

              (212,049)

             94,170

                18,028

                  8,268

                    317

               72,470

             304,563

          285,767

Balance as at 31 March 2017

            5,078,296

           860,778

            1,261,393

              360,346

                30,181

          4,380,935

           2,175,170

     14,147,099

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

Balance as at 01 April 2016

             3,513,114

           378,783

               576,751

               121,287

               24,602

           1,474,907

             978,994

       7,068,438

Depreciation for the year

               641,897

           140,891

                82,509

                45,382

                 4,377

             558,727

             274,227

       1,748,010

Disposals (Net)

                (29,306)

             (1,718)

                        -

                        -

                       -

                       -  

                (9,877)

          (40,901)

Translation and other adjustments

              (197,446)

             66,328

                10,684

                  4,159

                    310

               48,261

             267,262

          199,558

Balance as at 31 March 2017

            3,928,259

           584,284

              669,944

               170,828

               29,289

           2,081,895

           1,510,606

       8,975,105

Carrying values as at 31 March 2017

             1,150,037

           276,494

               591,449

               189,518

                    892

          2,299,040

             664,564

       5,171,994

 

 

Particulars

Computer and data equipment

Office Equipment

Furniture and fixtures

Air conditioner and generator

Vehicle

Leasehold improvements

Plant and machinery

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

               285,920

               2,260

                     232

                  3,411

                       -

               10,243

               11,426

          313,492

Disposals (Net)

                (26,044)

             (2,200)

                        -

                        - 

                       - 

                       -  

                   (231)

          (28,475)

Translation and other adjustment

                (48,012)

             (9,539)

               (10,157)

                 (2,348)

                     (98)

              (49,567)

              (24,939)

        (144,660)

Balance as at 30 Sept 2017

             5,290,160

           851,299

            1,251,468

               361,409

               30,083

           4,341,611

           2,161,426

     14,287,456

 

 

 

 

 

 

 

 

 

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

               329,771

             70,385

                44,189

                19,503

                    899

             223,312

             120,748

          808,807

Disposals (Net)

                (25,868)

             (2,200)

                        -

                        -

                        -

                       -  

                   (231)

          (28,299)

Translation and other adjustments

                (42,594)

             (7,078)

                 (6,211)

                 (1,352)

                   (105)

              (25,029)

              (18,374)

        (100,743)

Balance as at 30 Sept 2017

             4,189,568

           645,391

              707,922

               188,979

               30,083

           2,280,178

           1,612,749

       9,654,870

Carrying values as at 30 Sept 2017

             1,100,592

           205,908

              543,546

               172,430

                       -

           2,061,433

             548,677

       4,632,586

 

8.   SHORT TERM FINANCIAL ASSETS

Particulars

30 September 2017

31 March 2017

Security deposits

          107,350

38,154

Restricted cash

       3,035,557

       2,939,785

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

       4,131,770

       3,013765

Derivative financial instruments

          392,986

978,518

Due from officers and employees

            41,827

47,651

Others

-

360

 

7,709,490

7,018,233

 

 

 

 

         

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 2017 is as follows:

 

Basic earnings per share

Particulars

 

30 September 2017

30 September 2016

Profit attributable to shareholders

 

10,303,038

8,738,170

 

Weighted average numbers shares outstanding

190,130,008

190,130,008

 

Basic earnings per share (USD)

 

0.05

0.04

 

           

 

 

Diluted earnings per share

Particulars

 

30 September 2017

30 September 2016

Profit attributable to shareholders

 

10,303,038

8,738,170

Weighted average numbers shares outstanding

190,130,008

190,130,008

Diluted earnings  per share (USD)

 

                    0.05

                    0.04

         

 

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 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)

 

 

 

 

 

 

Mr. Chris de Putron (Director, iEnergizer Limited)

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

Mr. Marc Vassanelli (Director, iEnergizer Limited)

 

 

 

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 2017

30 September 2016

Transactions during the period ended

 

 

Short term employee benefits

 

 

Remuneration paid to directors

 

 

Chris de Putron

             6,204

             6,590

Mark De La Rue

             6,204

             6,590

Marc Vassanelli

            18,613

            19,771

 

 

 

Balances at the end of

 

 

Total remuneration payable

            30,764

            67,367

 

11.  SEGMENT REPORTING

 

Management currently identifies the Group's three services lines real time processing, back office services and content delivery as operating segments on the basis of operations. 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.    Real time processing

2.    Back office services

3.    Content delivery

4.    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 2017

 

Real time processing

Back office services

Content delivery

Others

Total

Revenue from external customers

13,842,128

26,804,690

34,561,096

                 -  

75,207,914

Segment revenue

13,842,128

26,804,690

34,561,096

                 -  

75,207,914

Other income

43,543

2,804

710,844

6,862

764,053

Cost of outsourced

Services

                -  

  18,635,430

   4,863,735

                 -  

      23,499,165

Employee benefit

expense

 10,527,567

          4,500

 19,842,993

                 -  

      30,375,060

Depreciation and

amortisation

      383,260

                 -  

   2,028,993

                 -  

        2,412,253

Other expenses

      824,757

       199,440

   3,392,233

       243,703

        4,660,132

Segment operating

Profit

2,150,087

7,968,125

5,143,986

     (236,841)

15,025,358

 

 

 

 

 

 

Segment assets

16,313,300

17,646,538

81,481,417

79,609,989

195,051,244

 

 

 

 

 

30 September 2016

 

Real time processing

Back office services

Content delivery

Others

Total

 

Revenue from external customers

12,484,717

22,461,326

35,667,146

                  -  

70,613,189

 

Segment revenue

12,484,717

22,461,326

35,667,146

                   -  

70,613,189

 

Other income

132,849

                 -  

743,667

         (1,705)

874,811

 

Cost of outsourced Services

                     -  

    15,154,329

          5,188,020

                    -  

    20,342,349

 

Employee benefit expense

       10,026,814

            4,500

        20,079,852

                    -  

     30,111,166

 

Depreciation and amortisation

           381,425

                   -  

          2,064,757

                    -  

      2,446,182

 

Other expenses

           688,659

        288,409

          3,688,495

         148,916

      4,814,479

 

Segment operating Profit

1,520,668

7,014,088

5,389,689

      (150,621)

13,773,824

 

 

 

 

 

 

 

 

Segment assets

13,880,334

11,963,082

83,985,419

77,880,662

187,709,497

 

 

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

                                                                                                                                           30 September 2017

Revenue from 

Segment

Amount

Customer 1

Back office Services

8,255,436

                                                                                                                                         30 September 2016

Revenue from 

Segment

Amount

Customer 1

Back office Services

8,321,461

Customer 2

Content Delivery

7,155,188

 

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 2017

31 March 2017

 

 

 

Non-current assets

 

 

Loans and receivables

 

 

Security deposits

          485,047

639,632

Restricted cash

            30,441

27,750

Fixed deposit

            61,477

62,273

Current assets

 

 

Loans and receivables

 

 

Trade receivables

             29,305,467

25,108,966

Cash and cash equivalents

             19,938,921

18,332,480

Restricted cash

       3,035,557

2,939,785

Security deposits

          107,350

38,154

Short term investments

       4,131,770

3,013,765

Due from officers and employees

            41,827

47,651

Other short term financial assets

-

                 360

 

 

 

Fair value through profit and loss:

 

 

Derivative financial instruments

          392,986

978,518

 

57,530,843

51,189,334

 

 

 

 

Financial liabilities

30 September 2017

31 March 2017

 

 

 

Non-current liabilities

 

 

Financial liabilities measured at amortized cost:

 

 

Long term borrowings

             52,457,837

61,071,201

 

Current liabilities

 

 

Financial liabilities measured at amortized cost:

 

 

Short term borrowings

                   84,349

97,955

Trade payables

             11,419,968

8,830,810

Current portion of long term borrowings

             13,934,206

13,965,177

Other current liabilities

               7,055,727

6,679,220

 

 

 

Fair value through profit and loss:

 

 

Derivative financial instruments

-

-

 

 

 

 

84,952,087

90,644,363

 

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 2017

Total

Fair value measurements at reporting date using

 

Level 2

Assets

(Notional amount)

 

 

Derivative instruments

 

 

 

Forward contracts (currency - USD/INR)

10,375,000

 

392,986

 

31 March 2017

Total

Fair value measurements at reporting date using

 

Level 2

Liabilities

(Notional amount)

 

 

Derivative instruments

 

 

 

Forward contracts (currency - USD/INR)

15,625,000

 

978,518

 

 

14.  COMMITMENT AND CONTINGENCIES

 

As at 30 September 2017 and 31 March 2017, the Group had a capital commitment of USD 11,978 and USD 83,742 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 USD 114,354 and USD 86,255 as on 30 September 2017 and 31 March 2017 respectively and in respect of interest on VAT amounts to USD 10,650 as on 30 September 2017 (USD 10,787 as on 31 March 2017).

 

The contingent liability in respect of bonus based on pending litigations at various jurisdictions amounting to USD 248,291 as on 30 September 2017 (USD 249,903 as on 31 March 2017).

Guarantees: As at 30 September 2017 and 31 March 2017, guarantees provided by banks on behalf of the group companies to the revenue authorities and certain other agencies, amount to approximately USD 81,229 and USD 29,747 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 2017 and 2016.

 

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 2017 and 2016.

 


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