TIDMDQE
RNS Number : 3419T
DQ Entertainment PLC
18 November 2013
The following announcement replaces the announcement released at
07.00 on 18 November 2013 under RNS number 2188T, the third bullet
point of section 1 having been amended for clarification.
For Immediate Release 18 November 2013
DQ Entertainment plc
('DQE', the 'Company' or the 'Group')
Results for the half year ended 30 September 2013
----------------------------------------------------
DQ Entertainment (DQE) a leading global animation, gaming, live
action, entertainment production and distribution company, today
announces its results for the period ended 30 September 2013
1. Financial Highlights:
-- Revenue: INR 870 mn (USD 14.77 mn) (2012: INR.954 mn)(USD 17.39mn)
-- EBIDTA: INR 561 mn (USD 9.53 mn)(2012: INR 348 mn)(USD 6.34 mn)
-- Profit before tax: INR 296 mn(USD 5.03 mn) (2012: INR 99 mn)(USD 1.8 mn)
-- Profit after tax: INR 287 mn (USD 4.87 mn) (2012: INR 71 mn)(USD 1.29 mn)
-- With the first signs of improvement in the global scenario
your Company has buoyantly sustained itself and generated a total
revenue of Rs. 870 mn during the half year ended September 2013
which is on line with our annual estimates.
-- The financials had a positive impact of change due to foreign
exchange rates and substantial increase in production/delivery
efficiencies. For the half year ended September 2013 there is a
foreign exchange gain of Rs. 315 mn as compared to a loss of Rs. 17
mn for the corresponding period in the previous year. This gain is
on account of restatement of foreign currency balances as on 30
September 2013.
-- The Company continues to make significant efforts to reduce
its receivables to a normal cycle. Since April 2013, the Company
has already collected Rs. 866 mn . We are constantly in touch with
all the clients/partners/broadcasters/distributors/agents for
recovery of due amounts and monies are being received from most of
the clients on regular basis, thereby assuring that the clients are
committed to pay. We do not foresee any issues on the
recoverability of these amounts. However, our administrative costs
have been impacted by a provision of INR 57mn (with a corresponding
reduction in receivables) which is due from one customer, although
we are hopeful of recovering this debt.
During the half year ended, the Company has repayed term loans
to the extent of INR155 mn
2. Chairman's Statement:
The global entertainment industry is developing at an
unprecented pace. Mobility and portability of content will, in my
opinion, have a profound impact as viewers consume programming
outside their homes and want to control what they watch, when they
watch, and on what device . So many opportunities are evolving and
we recognize that in so far as content production is important,
even more vital will be the distribution technologies that are
emerging.
Recognizing and serving this need with regards to distribution
technology, we have made substantial and focused progress in
Licensing and Distribution of our Intellectual Properties not only
for television broadcast, but other VOD (Video on Demand) and SVOD
(Subscription Video on Demand) & OTT (Over the Top) platforms
as well. Our flagship global property Jungle Book Series is on
Netflix, Vudu and Hulu - the famous OTT platforms in the USA.
New associations with leading networks and licensees globally
are paving the way to monetize our IPs and co-produced content. New
deals across our portfolio of properties in recent months are with
best-in-class partners such as France Television, Nickelodeon,
Disney Channel Productions, Sky Italia, Universal Music, Discovery
Kids, Rai TV, Italy etc. The promotional deal for The Jungle Book
with Burger King Worldwide has been immensely successful and will
be extended for second promotion.
We have successfully completed deliveries while new productions
are in development. Our foray into theatrical production of 'The
Jungle Book' is gathering momentum, and we hope to conclude
announceable distribution deals in the near future.
Recently, the Group concluded co-production and licensing deals
worth INR 2220 mn. We remain confident that the global
entertainment industry has excellent growth prospects, while our
business remains well placed for projected growth in the current
year."
3. Operating Highlights:
Completed projects:
1. Peter Pan Season 1 - 26 x 22' 3D HD Stereoscopic TV Series
with ZDF Germany, De Agostini Italy, Method Animation supported by
France TV, B Channel - Indonesia, JCCTV - Middle East and Noga -
Israel
On- going projects :
1. Jungle Book Season 2 - 52 x 11'CGI TV series with ZDF - Germany and TF1 - France
2. Jungle Book Christmas Special - 42' CGI TV Feature, ZDF and Disney Channel
3. Robin Hood, Mischief in Sherwood - 52 x 11' CGI TV series
with Method Animation and TF1 - France, ZDF - Germany, ATV -
Turkey, DeA Kids - Italy
4. Lassie & Friends - 52 x 11' 2D HD TV series with
Dreamworks Classic Media - USA, Super Prod & TF1 - France, ZDF
- Germany
5. Lanfeust Quest - 26 x 22' CGI TV series with Gaumont Animation - France, M6 TV - France
6. NFL Rush Zone Season 3 - 24 x 22' CGI & 2D TV Series with
Rollman Entertainment - USA for Nicktoons
7. Little Prince Season 3 - 26 x 22' CGI TV series with Method
Animation, WDR - Germany, France Television, RAI TV - Italy
8. Iesodo - 10 x 13' CGI TV Series with Zaya Toonz LLC - USA
9. Manav - 1 x 60' 2D TV feature for Disney - India
New projects signed/in development:
1. Peter Pan Season 2 - 26 x 22' CGI TV series with ZDF -
Germany, De Agostini - Italy and Method Animation - France and
France TV
2. *Yonaguni - 52 x 11' CGI TV series with Sea World - USA and Rollman Entertainment- USA
3. *7 Dwarfs & Me - 52 x 11' CGI & Live Action Hybrid Series with Method Animation - France
4. 5 & IT - 52 x 11' - CGI TV Series with ZDF Enterprises -
Germany, Method Animation - France, Nick- India and Global TV -
Indonesia
5. Leo & The Pisa Gang - 52 x 11' - CGI TV series with MPP Production and Penta TV - Germany
6. Raz & Benny - 52 x 11' - CGI TV series with Foothill Entertainment - USA
7. The Wind in the Willows - 52 x 11' HD TV series under development
* Have been signed/in development since the Indian subsidiary Q1
announcement on 9 August 2013
Licensing and Distribution:
Our licensing and distribution efforts have proven increasingly
successful on a global scale and are helping to create long term
and sustained value for DQE.
Broadcasting deals signed during the period:
S. Name of the licensee Project Name Territories
No
---- --------------------- ----------------------------------- -----------------------
1 Discovery* Robin Hood Indian Sub- Continent
Region
---- --------------------- ----------------------------------- -----------------------
2 Nickelodeon* The Jungle Book - 1 & 2, The Indian Sub- Continent
Rising Star and Galactic Football
---- --------------------- ----------------------------------- -----------------------
3 Sky Italia* Peter Pan - 1 Italy
---- --------------------- ----------------------------------- -----------------------
4 Rai TV* Peter Pan - 1 Italy
---- --------------------- ----------------------------------- -----------------------
5 Universal Music* Jungle Book - 2 World Wide
---- --------------------- ----------------------------------- -----------------------
6 2 x 2* Iron Man 2 Russia
---- --------------------- ----------------------------------- -----------------------
7 Green Narae Media* Jungle Book 2, Peter Pan Korea
---- --------------------- ----------------------------------- -----------------------
8 Clearvision Iron Man 2 United Kingdom
---- --------------------- ----------------------------------- -----------------------
9 Parent Media
Co Iron Man 2 Canada
---- --------------------- ----------------------------------- -----------------------
10 Simbasat Iron Man 2 French Speaking Africa
---- --------------------- ----------------------------------- -----------------------
11 Escalada (RTM) Jungle Book - 1, Iron Man Malaysia
2 & Peter Pan
---- --------------------- ----------------------------------- -----------------------
12 Univision Jungle Book - 1 USA & Puerto Rico
---- --------------------- ----------------------------------- -----------------------
13 Knowledge Network Jungle Book - 1 British Columbia
---- --------------------- ----------------------------------- -----------------------
Merchandising deals signed during the period: The Jungle
Book
S. Licensee Category Territories
No
---- --------------------- ----------------------------- ------------------------
1 Show Attraction* Costume Character Appearance Australia
---- --------------------- ----------------------------- ------------------------
2 Habuba Clip* Toys Israel
---- --------------------- ----------------------------- ------------------------
3 TRU Dubai* Toys Dubai
---- --------------------- ----------------------------- ------------------------
4 Hunter Leisure* Toys Australia
---- --------------------- ----------------------------- ------------------------
5 Prima Toys* Toys South Africa
---- --------------------- ----------------------------- ------------------------
6 Scandi Toys* Toys Scandinavia
---- --------------------- ----------------------------- ------------------------
7 Ho's Team- Shoprite* Toys South Africa
---- --------------------- ----------------------------- ------------------------
8 BBS* Disposables and Tableware Italy, San Marino
& Vatican City
---- --------------------- ----------------------------- ------------------------
9 Play Wow Inflatable bath toys USA, Canada, Australia,
New Zealand & South
Africa
---- --------------------- ----------------------------- ------------------------
10 Inkology Stationery items USA & Canada
---- --------------------- ----------------------------- ------------------------
11 Budge Studios Mobile App World Wide
---- --------------------- ----------------------------- ------------------------
12 Techno plast Lunch boxes, water bottles, Peru, Chille
thermo bottles, back packs,
soft lunch kits, vaccum
flasks
---- --------------------- ----------------------------- ------------------------
13 Bendon Publishing Colouring books, activity USA & Canada
books, story books, board
books
---- --------------------- ----------------------------- ------------------------
14 Union underwear Boys & girls underwear USA & Canada
separates and sets
---- --------------------- ----------------------------- ------------------------
Merchandising Deals signed - The New Adventures of Peter Pan
S. No Name of the Category Territory
party
------ --------------------- --------------------------------- ---------------------------
1 Ranocchiore* Ceramic, Procelain, Glass, Italy, San Marino,
Silver bi-laminate, Resin Vatican City and Italian
and Cardboard speaking Switzerland
------ --------------------- --------------------------------- ---------------------------
2 Tendenze srl* Apparels Italy, San Marino and
Vatican City.
------ --------------------- --------------------------------- ---------------------------
3 Intimage Nightwear , Seawear, Underwear Italy
------ --------------------- --------------------------------- ---------------------------
4 Jungle Online Comic Publishing Belgium
------ --------------------- --------------------------------- ---------------------------
5 Due In T Shirts, Long Sleeved Italy, San Marino,Vatican
Shirts , Sweat Shirt & City
Sweat pants
------ --------------------- --------------------------------- ---------------------------
6 Cisca Easter Eggs Italy, San Marino,Vatican
City
------ --------------------- --------------------------------- ---------------------------
7 Libri Spa Traditional picture books,Color Italy, San Marino,Vatican
Registers and activities,Pop-up City,Italian Swithzerland
books, carousel with 3
D scenarios,Toy books
with puzzle or with sound
/tactile/bright elements.
Books "allcardboard" shaped
and/or with windows or
elements of cardboard
furniture
------ --------------------- --------------------------------- ---------------------------
8 Play Press Coloring Book, Activity Italy, San Marino,Vatican
Book, 3D Magic gadgets City, Ticinio
------ --------------------- --------------------------------- ---------------------------
9 Flunch QSR France
------ --------------------- --------------------------------- ---------------------------
10 Showtime Attractions Costume Character Appearences Australia & Newzealand
------ --------------------- --------------------------------- ---------------------------
11 Nestle Easter chocolate eggs Italy, San Marino,
with or without gadget, Vatican City
small chocolate eggs with
or without gadget, mini
chocolate eggs with or
without eggs
------ --------------------- --------------------------------- ---------------------------
* Have been signed/in development since the Indian subsidiary Q1
announcement on 9 August 2013
4. Awards and Accolades
Mr. Tapaas Chakravarti received the Life Time Achievement - Hall
of Fame Award on November 3, 2013 at the World Animation and VFX
summit held in California. The accolade was awarded to Tapaas for
his contribution to the growth of the animation industry in India
and his global outreach efforts in animation.
***
Condensed Consolidated Interim Financial Statements
DQ Entertainment plc
30 September 2013
Condensed Consolidated Income Statement
GROUP Note Six months ended 30 September Six months ended 30 September Year ended
2013 2012 31 March 2013
INR'Mn INR'Mn
INR'Mn
------------------------------- ----- ------------------------------ ------------------------------ --------------
Continuing operations
Revenue C 870 954 2,294
Cost of sales (601) (676) (1,389)
------------------------------ ------------------------------ --------------
Gross profit 269 278 905
------------------------------ ------------------------------ --------------
Other operating income 301 3 10
Distribution expenses (15) (19) (34)
Administrative expenses (171) (75) (281)
Other operating expenses (10) (20) -
------------------------------ ------------------------------ --------------
105 (111) (305)
------------------------------ ------------------------------ --------------
Operating result before financing
costs 374 167 600
Financial income 37 10 14
Financial expenses (117) (94) (204)
Net financing costs J (80) (84) (190)
------------------------------ ------------------------------ --------------
Share of profit of associate 2 16 17
Profit before tax 296 99 427
Income tax expense (9) (28) (46)
------------------------------ ------------------------------ --------------
Profit after tax 287 71 381
============================== ============================== ==============
Attributable to:
Owners of the Company 214 61 296
Non-controlling interests L 73 10 85
Basic and diluted earnings per K
share for profit attributable
to the equity holders of the
company during the period
(expressed as cents per share)
Basic earnings per share 4 2 7
Diluted earnings per share 4 2 7
Condensed Consolidated Statement of Comprehensive Income
GROUP Notes Six months ended 30 September Six months ended 30 September Year ended
2013 2012 31 March 2013
INR'Mn INR'Mn INR'Mn
--------------------------------- -------------------------------- --------------------------------- --------------
Profit after tax 287 71 381
Other comprehensive income
Foreign Currency Translation 580 (16) 16
Total comprehensive income for
the period / year 867 55 397
-------------------------------- --------------------------------- --------------
Total comprehensive income attributable to:
Owners of the Company 698 58 316
Non-controlling interests L 169 (3) 81
Condensed Consolidated Statement of Financial Position
GROUP Note As at As at As at
30 September 30 September 2012 31 March 2013
2013 INR'Mn
INR'Mn INR'Mn
-------------------------------------- ------ -------------- ------------------- ---------------
ASSETS
Non current assets
Property, plant and equipment 202 384 290
Goodwill 432 432 432
Intangible assets E 3,969 3,412 3,294
Intangible Assets under construction F 1,857 760 1,230
Investment in associate 194 156 152
Prepaid leasehold rights 10 11 11
Deferred tax asset 57 21 60
Deposits 17 20 20
-------------- ------------------- ---------------
Total non current assets 6,738 5,196 5,489
-------------- ------------------- ---------------
Current assets
Trade and other receivables 2,682 2,475 2,379
Cash and Bank balances D 24 93 42
Total current assets 2,706 2,568 2,421
-------------- ------------------- ---------------
Total assets 9,444 7,764 7,910
============== =================== ===============
Condensed Consolidated Statement of Financial Position
(continued)
GROUP Note As at As at As at
30 September 2013 30 September 2012 31 March 2013
INR'Mn INR'Mn INR'Mn
---------------------------------------------- ------ ------------------- ------------------- ---------------
EQUITY AND LIABILITIES
EQUITY
Issued capital M 5 3 4
Share Premium 2,816 2,516 2,616
Reverse acquisition reserve 55 55 55
Capital Redemption Reserve 1 1 1
Foreign currency translation reserve 708 201 224
Retained earnings 1,536 1,087 1,322
------------------- ------------------- ---------------
Equity attributable to owners of the Company 5,121 3,863 4,222
------------------- ------------------- ---------------
Non-controlling interests L 1,242 989 1,073
Total equity 6,363 4,852 5,295
------------------- ------------------- ---------------
Non current liabilities
Interest-bearing loans and borrowings G 869 552 719
Provisions 143 123 131
------------------- ------------------- ---------------
Total non current liabilities 1,012 675 850
------------------- ------------------- ---------------
Current liabilities
Trade and other payables 692 1,122 690
Bank overdraft D 892 418 666
Interest-bearing loans and borrowings G 456 665 379
Provisions 29 32 30
Total current liabilities 2,069 2,237 1,765
------------------- ------------------- ---------------
Total liabilities 3,081 2,912 2,615
------------------- ------------------- ---------------
Total stockholders' equity and liabilities 9,444 7,764 7,910
=================== =================== ===============
These financial statements were approved by the Board of
Directors and authorised for use on
15November 2013.
Signed on behalf of the Board of Directors by:
Director Director
Condensed Consolidated Statement of Changes in Equity for the
period ended 30 September 2013
GROUP Equity Equity Share Reverse Foreign Capital Retained Attributable Non Total
shares - Shares premium acquisition currency Redemption earnings to owners of controlling
No of - reserve translation Reserve the Company interests
Shares Amount reserve
INR'Mn INR'Mn INR'Mn INR'Mn INR'Mn INR'Mn INR'Mn INR'Mn
INR'Mn
---------------- -------------- ------- -------- ------------ ------------ ----------- --------- ------------- ------------ -------
Balance as at 1
April, 2012 35,966,047 3 2,516 55 204 1 1,026 3,805 992 4,797
Changes in
equity for the
year ended
31 March, 2013
Issue of Shares 6,600,000 1 - - - - - 1 - 1
Premium on
Issue of
shares - - 100 - - - - 100 - 100
Other
Comprehensive
Income 20 20 (4) 16
Income for the
Year - - - - - - 296 296 85 381
---------------- -------------- ------- -------- ------------ ------------ ----------- --------- ------------- ------------ -------
Balance as at
31 March, 2013 42,566,047 4 2,616 55 224 1 1,322 4,222 1,073 5,295
---------------- -------------- ------- -------- ------------ ------------ ----------- --------- ------------- ------------ -------
Changes in
equity for the
six months
ended
30 September
2013
Issue of shares
during the
period 13,697,000 1 - - - - - 1 - 1
Premium on
Issue of
Shares - - 200 - - - - 200 - 200
Other
comprehensive
income - - - - 484 - - 484 96 580
Income for the
period - - - - - - 214 214 73 287
---------------- -------------- ------- -------- ------------ ------------ ----------- --------- ------------- ------------ -------
Balance as at
30 September
2013 56,263,047 5 2,816 55 708 1 1,536 5,121 1,242 6,363
---------------- -------------- ------- -------- ------------ ------------ ----------- --------- ------------- ------------ -------
Balance as at 1
April, 2011 35,966,047 3 2,516 55 137 1 745 3457 891 4348
Changes in
equity for the
year ended 31
March 2012
Other
Comprehensive
Income - - - - 67 - - 67 24 91
Income for the
Year - - - - - - 281 281 77 358
---------------- -------------- ------- -------- ------------ ------------ ----------- --------- ------------- ------------ -------
Balance as at
31 March, 2012 35,966,047 3 2516 55 204 1 1026 3805 992 4797
---------------- -------------- ------- -------- ------------ ------------ ----------- --------- ------------- ------------ -------
Changes in
equity for the
six moths ended
30 September
2012
Other
Comprehensive
Income - - - - (3) - - (3) (13) (16)
Income for the
period - - - - - - 61 61 10 71
---------------- -------------- ------- -------- ------------ ------------ ----------- --------- ------------- ------------ -------
Balance as at
30 September
2012 35,966,047 3 2516 55 201 1 1087 3863 989 4852
---------------- -------------- ------- -------- ------------ ------------ ----------- --------- ------------- ------------ -------
Condensed Consolidated Statement of Cash Flows for the period
ended 30 September 2013
GROUP Note Six months Six months Year ended
ended ended 31 March
30 September 30 September 2013
2013 2012
INR'Mn INR'Mn
INR'Mn
------------------------------------ ------ -------------- -------------- -----------
Cash flows from operating
activities
Profit for the period before
tax 296 99 427
Adjustments for:
Depreciation and amortization 187 181 526
Financial income J (37) (10) (14)
Financial expenses J 117 94 204
Provisions for employee benefits 20 27 39
Provision for retakes H (1) (2) (7)
Loss/(gain)on foreign exchange
fluctuations (301) 13 (17)
(2) (16) (17)
Share of gain of associate (292)
(Gain) / Loss on sale of property,
plant and equipment (3) 1 5
-------------- -------------- -----------
Operating cash flows before
changes in working capital 276 387 1,146
-------------- -------------- -----------
Decrease /(Increase) in trade
and other receivables 72 (545) (764)
Employee benefits paid (7) (6) (6)
(Decrease)/increase in trade
and other payables 8 42 50
-------------- -------------- -----------
349 (122) 426
Income taxes paid - (12) (21)
-------------- -------------- -----------
Net cash generated from /
(used in) operating activities 349 (134) 405
-------------- -------------- -----------
Condensed Consolidated Statement of Cash Flows for the period
ended 30 September, 2013 (continued)
GROUP Note Six months Six months Year ended
ended 30 September ended 30 31 March
2013 September 2013
2012
INR'Mn INR'Mn INR'Mn
----------------------------------- ------ -------------------- ----------- -----------
Cash flows from investing
activities
Acquisition of property, plant
and equipment (1) (18) (47)
Acquisition and advances paid
for distribution rights (807) (205) (1,136)
Proceeds from sale of property,
plant and equipment 5 4 1
Sale of Investment in Mutual
Funds - 61 61
Financial assets at fair value
through - - 7
Deposits (12) - (1)
Finance income 5 23 14
Net cash used in investing
activities (810) (135) (1,101)
-------------------- ----------- -----------
Cash flows from financing
activities
Proceeds from Borrowings from
Term Loans 307 243 412
Repayment of Term Loans (155) (496) (558)
Issue of share capital 1 - 1
Premium collected on issue
of shares 200 - 100
Interest paid (115) (91) (188)
Net cash generated from /(used
in) financing activities 238 (344) (233)
-------------------- ----------- -----------
Net decrease in cash and cash
equivalents (223) (613) (929)
Cash and cash equivalents
at beginning of period 43 645 645
Bank overdraft at beginning
of period (666) (311) (311)
Gain / (Loss) on foreign exchange
fluctuations (22) (46) (29)
-------------------- ----------- -----------
Cash and Cash equivalents
at the end of period / year D (868) (325) (624)
-------------------- ----------- -----------
Notes to Condensed Consolidated Financial Statements
NOTE A - BASIS OF PREPARATION
1. General information
DQ Entertainment plc (the 'Company' or "DQ plc") is a company
domiciled and incorporated in the Isle of Man on 19 April 2007 and
was admitted to the Alternative Investment Market of London Stock
Exchange on 18 December 2007. The Company raised approximately INR
2,147Mn at listing (before Admission costs).
The condensed consolidated financial statements of the Company
for the six months period ended 30 September 2013, comprises the
financial Information of the Company, its subsidiaries and
associate (together referred to as the 'Group').
As at 30 September 2013 the following companies formed part of
the Group:
Company Immediate Parent Country of % of Interest
Incorporation
---------------------------------- ----------------------- ---------------- --------------
Subsidiaries
---------------------------------- ----------------------- ---------------- --------------
DQ Entertainment (Mauritius) DQ Entertainment
Limited (DQM) Plc Mauritius 100
---------------------------------- ----------------------- ---------------- --------------
DQ Entertainment (International)
Limited (DQ India) was
formerly known as "Animation
and Multimedia Private DQ Entertainment
Limited" (Mauritius) Limited India 75
---------------------------------- ----------------------- ---------------- --------------
DQ Entertainment
DQ Entertainment (Ireland) (International)
Limited ( DQ Ireland) Limited Ireland 100
---------------------------------- ----------------------- ---------------- --------------
Joint Venture Company
DQ Entertainment Films by DQ India and
(International) Limited DQ Plc Ireland 100
---------------------------------- ----------------------- ---------------- --------------
DQ Entertainment
DQ Power Kidz Private (International)
Limited Limited India 100
---------------------------------- ----------------------- ---------------- --------------
Associate
---------------------------------------------------------------------------------------------
Method Animation SAS France 20
----------------------------------------------------------- --------------- --------------
The Company's registered address is 33-27, Athol Street,
Douglas, IM ILB, Isle of Man.
The Group is primarily engaged in the business of providing
traditional and digital animation for television, home video and
feature films. The Group also is engaged in exploitation of its
distribution rights to broadcasters, television channels, home
video distributors and others.
The functional currencies of the respective Group companies
are:
DQplc British Pound (GBP)
--------------------- --------------------
DQM US Dollar (USD)
--------------------- --------------------
DQIndia Indian Rupee (INR)
--------------------- --------------------
DQ Ireland Euro (EURO)
--------------------- --------------------
DQ Films Ltd Euro (EURO)
--------------------- --------------------
DQ Power Kidz Indian Rupee (INR)
--------------------- --------------------
Method Animation SAS Euro (EURO)
--------------------- --------------------
NOTE B - STANDARDS AND INTERPRETATIONS NOT YET APPLIED
The following new Standards and Interpretations, which are yet
to become mandatory, have not been applied in the Company's
Financial Statements.
Standard or Interpretation Effective for reporting periods starting on or after
--------------------------------------------------------------- -----------------------------------------------------
IFRS -7 Amendments related to the offsetting of assets and Annual periods beginning on or after 1 January 2013
liabilities and interim periods within those periods
IFRS -9 Reissue to include requirements for the Annual periods beginning on or after 1 January 2013
classification and measurement of financial
liabilities
and incorporate existing derecognition requirements
IFRS 9 Financial instruments-classification and Annual periods beginning on or after 1 January 2015
measurement of
Financial assets
IFRS -10 Consolidated Financial Statements Annual periods beginning on or after 1 January 2013
IFRS 11 Joint Arrangements Annual periods beginning on or after 1 January 2013
IFRS -12 Disclosure of interests in other entities Annual periods beginning on or after 1 January 2013
IFRS -13 Fair Value Measurement Annual periods beginning on or after 1 January 2013
IAS-1 Presentation of financial statements - Amendments Annual periods beginning on or after 1 July 2012
to revise the
way other comprehensive income in presented
IAS-12 Income taxes on deferred tax Annual periods
beginning on or after
1 January, 2012
IAS -19 Amended standard resulting from the post-employment Annual periods
benefits and termination benefits projects beginning on or after
1 January 2013
IAS-27 Consolidated and separate financial statements - Annual periods beginning on or after 1 January 2013
reissued
as IAS 27 separate financial statements(as amended
in 2011)
IAS -28 Investments in Associates and Joint Ventures Annual periods beginning on or after 1 January 2013
IAS-34 Interim Finacial reporting - Amendments resulting Annual period beginning on or after 1 January 2011
from May 2010 annual improvements to IFRS
IAS-32 Offsetting financial assets and financial Annual period beginning on or after 1 January 2014
liabilities
IAS-36 Impairment of Assets - Amendments arising from Annual period beginning on or after 1 January 2014
recoverable amount disclosures for non-financial
assets
Based on the Company's current business model and accounting
policies, management does not expect any material impact on the
Company's financial statements when any of the other standards or
interpretations becomes effective.
The Company does not intend to apply any of these pronouncements
early.
1. Significant accounting policies
The condensed consolidated interim financial information should
be read in conjunction with the annual financial statements for the
year ended 31 March, 2013, which have been prepared in accordance
with International Financial Reporting Standards ('IFRS's)
In the opinion of management, all adjustments, which are of a
normal recurring nature and necessary for a fair presentation, have
been included. The Company has chosen to present the condensed
consolidated financial position & condensed consolidated income
statement, condensed consolidated comprehensive income statement,
condensed consolidated statement of cash flows and condensed
consolidated statement of changes in equity along with selected
explanatory notes. Accordingly, certain information and note
disclosures normally included in annual financial statements
prepared in accordance with IFRS have been condensed or omitted,
although the Company believes that the disclosures made are
adequate to make the information presented not misleading. These
condensedconsolidated financial statements have been prepared using
the same accounting policies that were applied in the preparation
of the Company's annual consolidated financial statements for the
year ended 31 March, 2013.
The directors have had regard to the 12 month period from the
date of approval of the interim financial statements and have
reviewed the forecasted cash flows. The Company has sufficient
resources to meet its on-going liabilities as they fall due.
NOTE C - SEGMENT REPORTING
Segment information is presented in respect of the Group's
business and geographical segments. The primary format, business
segments, is based on the Group's management and internal reporting
structure.
Segment results, assets and liabilities include items directly
attributable to a segment as well as those that can be allocated on
a reasonable basis. Unallocated items comprise mainly
interest-bearing loans, borrowings and expenses, and corporate
assets and expenses.
Segment capital expenditure is the total cost incurred during
the period to acquire segment assets that are expected to be used
for more than one period.
Business segments
The Company comprises the following main business segments:
Animation production:
The production services rendered to production houses and
training rendered for acquiring skills for production services in
relation to the production of animated television series and
movies.
Distribution:
The revenue generated from the exploitation of the distribution
rights of animated television series.
The following is an analysis of the Company's revenue and
results by operating segment for the periods under review:
Segment Revenue Segment Result
------------------------------------------ ------------------------------------------
GROUP Six months Six months Year Six months Six months Year
ended ended ended ended ended ended
30 September 30 September 31 March 30 September 30 September 31 March
2013 2012 2013 2013 2012 2013
INR'Mn INR'Mn INR'Mn INR'Mn
INR'Mn INR'Mn
---------------------------- -------------- -------------- ---------- -------------- -------------- ----------
Animation Production 692 703 1,819 389 278 987
Distribution 178 251 475 76 140 120
Total 870 954 2,294 465 418 1,107
Unallocated Expenses (169) (319) (680)
----------
Profit before tax 296 99 427
Income tax expense (9) (28) (46)
-------------- -------------- ----------
Profit for the period/year 287 71 381
-------------- -------------- ----------
NOTE D - CASH AND CASH EQUIVALENTS
30 September 30 September 31 March
2013 2012 2013
INR'Mn INR'Mn INR'Mn
---------------------------------- ------------- ------------- ---------
Cash and bank balances 7 77 26
Call deposits 17 16 16
------------- ------------- ---------
Cash and bank balances 24 93 42
------------- ------------- ---------
Bank overdraft (892) (418) (666)
------------- ------------- ---------
Cash and cash equivalents in the
statement of cash flows (868) (325) (624)
------------- ------------- ---------
NOTE E - INTANGIBLE ASSETS
GROUP 30 September 2013 30 September 2012 31 March
INR'Mn INR'Mn 2013
INR'Mn
------------------------------------------------ ------------------ ------------------ ---------
Cost
Opening balance 4,254 3,720 3,720
Acquisitions/Transfer from
Assets under Construction/Recoupment 289 383 529
Disposals (65) - -
Translation adjustment 528 9 5
------------------ ------------------ ---------
Closing balance 5,006 4,112 4,254
------------------ ------------------ ---------
Amortisation
Opening balance 960 604 604
Amortisation expense 110 96 218
Impairment losses recognised in profit or loss - - 134
Impairment reversed on disposal (65) - -
Translation adjustment 32 - 4
------------------ ------------------ ---------
1,037 700 960
------------------ ------------------ ---------
Carrying amounts
------------------ ------------------ ---------
At beginning of period/year 3,294 3,116 3,116
------------------ ------------------ ---------
At end of period/year 3,969 3,412 3,294
------------------ ------------------ ---------
NOTE F - INTANGBILE ASSETS UNDER CONSTRUCTION
Intangible assets under construction include amounts paid to the
producers for acquisition of the distribution rights and amounts
incurred on internally generated intellectual property rights
pending for capitalisation. These advances are transferred to
distribution rights on completion of the entire production
activities and when the asset is ready for exploitation.
GROUP 30 September 2013 30 September 2012 31 March
INR'Mn INR'Mn 2013
INR'Mn
-------------------------------- ------------------ ------------------ ---------
Opening balance 1,230 751 751
Acquisitions 495 513 974
Transfers to intangible assets (123) (300) (475)
Translation adjustment 255 (204) (20)
------------------ ------------------ ---------
Closing balance 1,857 760 1,230
------------------ ------------------ ---------
NOTE G - INTEREST BEARING LOANS AND BORROWINGS
Interest bearing loans and borrowings comprise the
following:
GROUP 30 September 30 September 31 March
2013 2012 2013
INR'Mn INR'Mn INR'Mn
--------------------------------- ------------- ------------- ---------
Non-current liabilities:
Secured bank loans 869 551 719
Finance lease liabilities - 1 -
869 552 719
------------- ------------- ---------
Current liabilities:
Current portion of secured bank
loans 455 663 379
Finance lease liabilities 1 2 -
456 665 379
------------- ------------- ---------
NOTE H - PROVISION FOR RETAKES
GROUP 30 September 30 September 31 March
2013 2012 2013
INR'Mn INR'Mn INR'Mn
------------------------------------ ------------- ------------- ---------
Opening balance 21 28 28
Provisions made during the period/
year 9 9 17
Provisions used during the period/
year - - (1)
Provisions reversed during the
period/ year (10) (11) (23)
Closing balance 20 26 21
------------- ------------- ---------
Retakes include creative changes to the final product delivered
to the customer, performed on the specific request of the customer
at the Group's own cost. Requests for retakes will be accepted from
customers by the Group for a maximum period of three months from
the final delivery and hence the provision is not discounted.
NOTE I - PERSONNEL COSTS
Details of personnel expenses included in cost of sales,
administrative and distribution expenses
are as follows:
GROUP 30 September 2013 30 September 2012 31 March
2013
INR'Mn INR'Mn
INR'Mn
------------------------------------------------- ------------------ ------------------ ---------
Wages and salaries 354 398 777
Contributions to defined contribution plans 24 28 54
Increase in liability for defined benefit plans 8 17 29
Increase in liability for compensated absences 12 9 10
398 452 870
------------------ ------------------ ---------
Cost of sales 389 444 757
Administrative expenses 7 5 107
Distribution Expenses 2 3 6
NOTE J - NET FINANCING COSTS
GROUP 30 September 2013 30 September 2012 31 March
INR'Mn INR'Mn 2013
INR'Mn
------------------------------------------------------------- ------------------ ------------------ ---------
Interest income 37 10 14
------------------ ------------------ ---------
Financial income 37 10 14
------------------ ------------------ ---------
Interest on short term borrowings and other financing costs (60) (52) (97)
Interest on term loans (57) (42) (107)
Financial expenses (117) (94) (204)
------------------ ------------------ ---------
Net financing costs (80) (84) (190)
------------------ ------------------ ---------
NOTE K - EARNINGS PER SHARE ("EPS")
Profit attributable to ordinary shareholders
30 September 2013 30 September 2012 31 March
INR'Mn INR'Mn 2013
INR'Mn
------------------------------------------------------------------- ------------------ ------------------ ---------
Profit attributable to ordinary shareholders 214 61 296
Weighted average number of ordinary shares outstanding during the
period(in thousand) 55,426 35,966 42,331
Basic EPS (Cents) 4 2 7
Diluted EPS (cents) 4 2 7
The Group does not have any dilutive instruments for any of the
periods ended 30 September 2013 or
30 September 2012 and for the year ended 31 March, 2013 and as
such Diluted EPS equals Basic EPS.
NOTE L - NON - CONTROLLING INTERESTS
30 September 30 September 31 March
2013 2012 2013
INR'Mn INR'Mn INR'Mn
------------------------------------------------ ------------- ------------- ---------
Balance at beginning of period/year 1,073 992 992
Profit for the period 73 10 85
Other comprehensive income for the period/year 96 (13) (4)
Closing balance 1,242 989 1,073
------------- ------------- ---------
NOTE M - EQUITY
a) Ordinary shares
DQ plc presently has only one class of ordinary shares. For all
matters submitted to vote in the shareholders' meeting, every
holder of ordinary shares, as reflected in the records of the
Company on the date of the shareholders' meeting, has one vote in
respect of each share held. All shares are equally eligible to
receive dividends and the repayment of capital in the event of
liquidation of the Company.
The Company has an authorized share capital of 60,000,000 equity
shares of 0.1 pence each.
Issue of ordinary shares
30 September 30 September 31 March
2013 2012 2013
------------------ ------------- ------------- -----------
Number of shares
Opening balance
Issued for cash 42,566,047 35,966,047 35,966,047
13,697,000 - 6,600,000
Closing balance 56,263,047 35,966,047 42,566,047
------------- ------------- -----------
30 September 30 September 31 March
2013 2012 2013
INR'Mn INR'Mn INR'Mn
----------------------- --------------- --------------- --------------
Share capital
Opening balance 4 3 3
Issued for cash 1 - 1
--------------------------- -----------------------
Closing balance 5 3 4
--------------------------- -----------------------
NOTE M - EQUITY (Continued)
Share premium - The amount received by the company over and
above the par value of shares issued is shown under this
heading.
30 September 30 September 31 March 2013
2013 2012
INR'Mn INR'Mn INR'Mn
--------------------------- --------------- ----------------- --------------
Share premium
Opening Balance 2,616 2,516 2,516
Issued for cash 200 - 100
------------------ -------------------- ------------------
Closing Balance 2,816 2,516 2,616
------------------ -------------------- ------------------
The share premium reserve can be utilised by the Company for the
declaration of bonus shares and for offsetting incremental costs
directly attributable to the issues of new shares.
b) Reserves
Translation reserve - Assets, liabilities, income, expenses and
cash flows are translated into Indian Rupees (presentation
currency) from US Dollars (functional currency of DQ
Mauritius),
Euros (functional currency of DQ Ireland and DQ Films Ltd) and
Great British Pounds (functional currency of DQ Plc). The exchange
difference arising out of the period-end translation is debited or
credited to foreign currency translation reserve.
The movements in this reserve which are attributable to the
controlling interests are set out below:
30 September 30 September 31 March 2013
2013 2012
INR'Mn INR'Mn INR'Mn
--------------------- ----------------- ------------- --------------
Opening balance 224 204 204
Increase/(Decrease)
during the period 484 (3) 20
----------------- ------------- --------------
Closing balance 708 201 224
----------------- ------------- --------------
Exchange differences relating to the translation of the net
assets of the Group's foreign operations from
their functional currencies to the Group's presentation currency
(i.e. INR) are recognised directly in
other comprehensive income and accumulated in the foreign
currency translation reserve.
Accumulated earnings - Accumulated earnings include all current
and prior period results as disclosed in the income statement which
are attributable to the controlling interests. The movements in the
accumulated earnings are set out below:
30 September 30 September 31 March 2013
2013 2012
INR'Mn INR'Mn INR'Mn
----------------------- ------------- ------------- --------------
Opening balance 1,322 1,026 1,026
Profit for the period 214 61 296
------------- ------------- --------------
Closing balance 1,536 1,087 1,322
------------- ------------- --------------
Other Reserves - The Reverse Acquisition Reserve, Equity
component of convertible instruments and
Capital Redemption Reserve are non distributable in nature.
NOTE N - CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
GROUP 30 September 2013 30 September 2012 31 March 2013
INR'Mn
INR'Mn
INR'Mn
-------------------------------------------------------------- ------------------ ------------------ --------------
Capital commitments:
Purchase of property, plant and equipment - 3 -
Purchase of distribution rights 918 411 1,044
Contingent liabilities:
Outstanding letters of credit for capital investments 917 700 777
Bonds executed in favour of Indian customs and excise
authorities 3 2 3
Claims not acknowledged as debts 10 10 10
NOTE O - RELATED PARTIES
Identity of related parties
DQ plc has a related party relationship with its directors,
executive officers, subsidiaries and associate.
DQ plc does not have any ultimate controlling entity.
Related parties and their relationships
a) Subsidiaries
DQ Entertainment (Mauritius) Limited
DQ Entertainment (International) Limited
DQ Entertainment (Ireland) Limited
DQ Entertainment (International) Films Limited
DQ Power Kidz Private Limited
Associate
Method Animation
RELATED PARTIES -
b) Key management personnel
Mr. Tapaas Chakravarti - Director
Mr. K. Balasubrahmanyam - Director
Ms. Theresa Plummer - Director
Ms.Rashida Adenwala - Director
c) Relatives of Key Management Personnel with whom DQ India had
transactions during the year - Mrs. Rashmi Chakravarti (wife of Mr.
Tapaas Chakravarti)
d) Ms Nivedita Chakravarti (daughter of Mr.Tapaas Chakravarti)
e) Mr Hatim Adenwala - Senior Vice President Human Resources (Husband of Rashida Adenwala)
RELATED PARTIES (Continued)
Trading transactions
Transactions between the Company and its subsidiaries, which are
related parties of the Company, have been eliminated on
consolidation and are not disclosed in this note. Details of
transactions between the Group and other related parties are
disclosed below.
Revenue from Amounts Revenue from Amounts Revenue from Amounts
Animation owed by Animation owed by/ Animation owed by/(to)
/(to) related (to) related related
party party party
----------- ------------- --------------- ------------- -------------- ------------- --------------
30 September 30 September 30 September 30 September 31 March 31 March
2013 2013 2012 2012 2013 2013
INR'Mn INR'Mn INR'Mn INR'Mn INR'Mn INR'Mn
------------- --------------- ------------- -------------- ------------- --------------
Associate 53 319 161 258 215 292
Revenue from production from related parties was at prices
arising out of the Group's usual trade practices. The amounts
outstanding are unsecured and will be settled in cash. No
guarantees have been given or received. No expense has been
recognised in the period for bad or doubtful debts in respect of
the amounts owed by related parties.
Compensation of key management personnel
Directors of the company and their immediate relatives control
14.47 per cent of the voting shares of the company.
The remuneration of directors and other members of key
management during the period were as follows:
30 September 30 September 31 March
2013 2012 2013
INR'Mn INR'Mn INR'Mn
--------------------- ------------- ------------- ---------
Short term benefits 18 14 35
Other related party transactions
Remuneration paid to relatives of key management personnel
during the period was INR 4 Mn
30 September 2012: 4 Mn; 31 March 2013: INR 8 Mn)
Contact:
DQE Tel: +91 40 235 53726/27
Tapaas Chakravarti - Chairman & CEO tapaas@dqentertainment.com
Rashida Adenwala - Director Finance & Investor
Relations rashida@dqentertainment.com
Allenby Capital Limited - AIM Nominated Tel: +44(0) 20 3328 5656
Adviser & Broker
Jeremy Porter / Alex Price
Buchanan Tel: +44 (0)20 7466 5000
Mark Edwards/Clare Akhurst
www.buchanan.uk.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZMMMMRRZGFZM
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