TIDMIBPO
RNS Number : 9133O
iEnergizer Limited
11 November 2016
Interim Statement September 2016
www.ienergizer.com
11 November 2016
iEnergizer Limited
("iEnergizer" , the "Company" or the "Group"))
INTERIM RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2016
iEnergizer, the digital publishing and technology leader, which
benefits from the dual disruptive waves of big data and the cloud
is pleased to announce its Interim Results for the six months ended
30 September 2016. The present structure of the Group combines a
well-established, high growth, business processes solution
enterprise with a leading provider of end-to-end digital
transformation solutions to the media and publishing
industries.
Financial Highlights
-- Revenues of $71.5m (H1 2016: $68.9m)
-- Adjusted EBITDA(1) $16.4m (H1 2016(2) : $16.6m)
-- Adjusted EBITDA(1) margin at 23% (H1 2016(2) : 24%)
-- Operating profit $13.8m (H1 2016: $13.7m)
-- Operating profit margin at 19.3% (H1 2016: 19.9%)
-- Profit before tax of $10.2m (H1 2016: $9.3m).
-- Profit before tax margin at 14.2% (H1 2016: 13.4%)
-- Cash and cash equivalents of $11.9m (31 March 2016: $10.2m)
-- Term Debt of $81.5m (31 March 2016: $87.6m).(3)
(1) Non-recurring expenses relate to one off cost of US$0.2mn
for professional charges.
(2) Non-recurring expenses relate to one off cost of US$0.3mn
for professional charges.
(3) The Company is compliant of all applicable financial
covenants including on-time payments of loan installments and
interest.
Operational Highlights
-- Focus on sustained profitable growth
o Achieved 5% Revenue growth from services ($70.6m in H1 2017 vs
$67.3 in H1 2016)
o Maintained Operating profit of $13.8m ($13.7m H1 2016)
-- Real Time Processing ("RTP"): Continued strong revenue growth
of more than 20% due to increase in revenue from Travel, Telecom
& E-commerce verticals as compared to the previous year and a
new business line acquired in Media & Entertainment
vertical.
-- Back Office Services ("BOS"): Continued focus on recurring
revenue streams and long term customer relationships resulted in
strong revenue growth of 18%
-- Content Division: Sustainable long term growth prospects for content services:
o Major wins this year with our existing and new customers,
which will facilitate growth in the coming months, for educational
publishing and professional publishing divisions
o New contract signed with our largest Financial Publishing
customer which is an opportunity for growth in
existing services along with the recommencement of some services provided in the past
o Decline of aggregate revenue in project-driven content
services ($36m H1 2017, $38m H1 2016) is attributable to conclusion
of one-time projects in digital solutions and enterprises
divisions. However, the division continues to enjoy steady work
streams from its core customers
-- Focused cost saving initiatives:
o Savings in "Other expenses" by more than 17% ($4.8m in H1 2017
vs $5.8m in H1 2016) through rationalization of overheads e.g.
travel, communication and professional expenses
o Running a leaner organization using technology effectively and
optimizing utilization of the Company's resources
o Leveraging the Company's US based sales team for generating
sales pipeline and cross-selling opportunities to all the business
verticals of the Group
Continued focus on recurring revenue streams from business
critical processes and long-term customer relationships.
Marc Vassanelli, Chairman of iEnergizer, commented:
"Reflecting the continued focus on recurring revenue streams
from business critical processes and long term customer
relationships, with both existing and new customers, we see real
progress with the performance in the first half of this financial
year, demonstrated by the growth in revenue, operating profits and
profits before taxes.
"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 with a continuing focus on underlying operating
margins. We believe there is significant opportunity for us to
continue to expand the business further using this approach."
-Ends-
Enquiries:
iEnergizer Ltd. +44 (0)1481 242233
Chris de Putron
Mark De La Rue
FTI Consulting - Communications +44 (0)20 3727
adviser 1000
Edward Westropp, Jonathon Brill,
Eleanor
Purdon
Arden Partners-Nominated adviser
and +44 (0)20 7614
broker 5900
Steve Douglas, Patrick Caulfield
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 2016 and 2015
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 31 March 2016
2016
Unaudited Audited
------ ------------- --------------
ASSETS
Non-current
Goodwill 5 102,261,757 102,262,760
Other intangible assets 6 18,939,712 20,339,230
Property, plant and equipment 7 5,372,235 5,849,658
Long- term financial asset 632,110 561,136
Non-current tax assets 2,074,428 1,744,277
Deferred tax asset 12,929,952 12,867,349
Non-current assets 142,210,194 143,624,410
------------------------- --------------------------
Current
Trade and other receivables 25,401,292 27,613,023
Cash and cash equivalents 11,867,808 10,166,328
Short- term financial assets 8 4,689,954 4,425,033
Other current assets 3,540,249 2,696,197
Current assets 45,499,303 44,900,581
------------------------- --------------------------
Total assets 187,709,497 188,524,991
========================= ==========================
EQUITY AND LIABILITIES
Equity
Share capital 9 3,776,175 3,776,175
Share compensation reserve 63,986 63,986
Additional paid in capital 9 15,451,809 15,451,809
Merger reserve (1,049,386) (1,049,386)
Retained earnings 73,540,330 64,802,160
Other components of equity (10,373,525) (9,921,661)
Total equity attributable to equity
holders of the parent 81,409,389 73,123,083
------------------------- --------------------------
Notes As at As at
30 September
2016 31 March 2016
Unaudited Audited
------ ------------- --------------
Liabilities
Non-current
Long term borrowings 67,558,758 73,741,220
Employee benefit obligations 4,514,444 4,464,676
Other non-current liabilities 427,831 465,472
Deferred tax liability 4,254,620 4,139,178
Non-current liabilities 76,755,653 82,810,546
--------------------------- -------------------------
Current
Short term borrowings - 642,751
Trade and other payables 7,303,692 9,398,856
Employee benefit obligations 843,705 840,944
Current tax liabilities 629,628 187,190
Current portion of long term
borrowings 13,927,710 13,846,942
Other current liabilities 6,839,720 7,674,679
Current liabilities 29,544,455 32,591,362
--------------------------- -------------------------
Total equity and liabilities 187,709,497 188,524,991
=========================== =========================
(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 For the six
months months
ended ended
30 September 30 September
2016 2015
Unaudited Unaudited
------------------------------- ------- ---------------------------- --------------------------
Income from operations
Revenue from services 70,613,189 67,315,112
Other operating income 874,811 1,656,659
71,488,000 68,971,771
---------------------------- --------------------------
Cost and expenses
Outsourced service cost 20,342,349 19,298,174
Employee benefits expense 30,111,166 27,550,087
Depreciation and amortisation 2,446,182 2,560,220
Other expenses 4,814,479 5,831,264
57,714,176 55,239,745
---------------------------- --------------------------
Operating profit 13,773,824 13,732,026
Finance income 163,978 207,589
Finance cost (3,781,295) (4,654,556)
Profit before tax 10,156,507 9,285,059
---------------------------- --------------------------
Income tax expense 1,418,337 1,492,963
Profit for the year attributable
to equity holders of the parent 8,738,170 7,792,096
============================ ==========================
Earnings per share 10
Basic 0.04 0.04
Diluted 0.04 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 For the six months
ended ended
30 September 2016 30 September 2016
Unaudited Unaudited
------------------------------------- ------------------------ -------------------
Profit after tax for the year 8,738,170 7,792,096
Exchange differences on translating
foreign operations (451,864) (2,370,855)
------------------------ -------------------
Total comprehensive income
attributable to equity holders 8,286,306 5,421,241
------------------------ -------------------
(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 Additional Share Merger Other components Retained Total
capital Paid in compensation reserve of equity earnings equity
Capital reserve
--------------- ------------- ------------ --------------------------- ----------- -----------
Foreign Net
currency defined
translation benefit
reserve liability
--------------- ---------- ------------ ------------- ------------ ------------- ------------ ----------- -----------
Balance as at
01 April 2015 3,195,334 11,009,480 63,986 (1,049,386) (7,863,352) 32,877 47,894,372 53,283,311
Issue of
ordinary
shares 580,841 4,442,329 - - - - - 5,023,169
Profit for the
year - - - - - - 16,907,788 16,907,788
Other
comprehensive
loss - - - - (2,242,802) 151,616 - 2,091,186)
--------------- ---------- ------------ ------------- ------------ ------------- ------------ ----------- -----------
Total
comprehensive
income
for the
period - - - - (2,242,802) 151,616 16,907,788 14,816,602
--------------- ---------- ------------ ------------- ------------ ------------- ------------ ----------- -----------
Balance as at
31 March 2016 3,776,175 15,451,809 63,986 (1,049,386) (10,106,154) 184,493 64,802,160 73,123,083
(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 Additional Share Merger Other components Retained Total
capital Paid in compensation reserve of equity earnings equity
Capital reserve
Foreign Net defined
currency
translation benefit
reserve 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 - - - - - - 8,738,170 8,738,170
Other
comprehensive
loss - - - - (451,864) - - (451,864)
Total
comprehensive
income for
the period - - - - (451,864) - 8,738,170 8,286,306
Balance as at
30 September
2016 3,776,175 15,451,809 63,986 (1,049,386) (10,558,018) 184,493 73,540,330 81,409,389
(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 For the six months
ended ended
30 September 2016 30 September
2015
(A) Cash flow from operating activities
Profit before tax 10,156,507 9,285,059
Adjustments
Depreciation and amortisation 2,446,182 2,560,220
Loss on disposal of property, plant 306 -
and equipment
Profit on disposal of property, plant
and equipment - (21,059)
Provision for doutful debts written (83,882) -
back
Amortization of loan processing fee 477,985 516,785
Sundry balances written back (121) -
Unrealised foreign exchange gain (687,284) (688,980)
Finance income (163,978) (207,589)
Finance cost 3,303,310 4,137,771
------------------------------ -----------------------------
15,449,025 15,582,207
Changes in operating assets and liabilities
(Increase)/ Decrease in trade and other
receivables 3,837,266 (5,636,382)
(Increase)/ Decrease in other assets
(current and non-current) (1,734,529) 1,130,129
Increase / (Decrease) Non-current liabilities,
trade payables & other current liabilities (3,817,642) 654,808
(Decrease)/ Increase in employee benefit
obligations 67,574 (248,118)
------------------------------ -----------------------------
Cash generated from operations 13,801,694 11,482,644
Income taxes paid (1,253,211) (2,018,000)
------------------------------ -----------------------------
Net cash generated from operating
activities 12,548,483 9,464,644
------------------------------ -----------------------------
(B) Cash flow for investing activities
Payments for purchase of property plant
and equipment (472,902) (410,210)
Redemption of fixed deposit 167,613 -
Proceeds from disposal of property,
plant & equipment 371 26,328
Payments for purchase of other intangible
assets (143,957) (201,221)
Interest received 164,754 172,258
Net cash used in investing activities (284,121) (412,845)
------------------------------ -----------------------------
(C ) Cash flow from financing activities
Proceeds of share capital - 5,023,170
Interest paid (3,303,310) (4,137,771)
Repayment of long-term borrowings (6,579,679) (15,528,882)
Net cash used in financing activities (9,882,989) (14,643,483)
----------------------------- ----------------------------
Net increase/(decrease) in cash and
cash equivalents 2,381,372 (5,591,684)
Cash and cash equivalents at the beginning
of the year 9,523,577 13,447,099
Effect of exchange rate changes on
cash (37,141) (108,953)
Cash and cash equivalents at the
end of the year 11,867,808 7,746,462
----------------------------- ----------------------------
Cash and cash equivalents comprise
Cash in hand 15,240 13,713
Balances with banks in current account 11,852,568 7,425,391
Balances with banks in deposit account - 307,358
11,867,808 7,746,462
----------------------------- ----------------------------
Notes to Unaudited Condensed Consolidated Interim Financial
Statements
(All amounts in United States Dollars, unless otherwise
stated)
1. INTRODUCTION
iEnergizer Limited (the 'Company' or 'iEnergizer ') was
incorporated in Guernsey on 12 May 2010.
iEnergizer Limited is a 'Company limited by shares' and is
domiciled in Guernsey. The registered office of the Company is
located at Mont Crevelt House, Bulwer Avenue, St. Sampson,
Guernsey, GY2 4 LH. iEnergizer was listed on the Alternative
Investment Market ('AIM') of London Stock Exchange on 14 September
2010.
iEnergizer through its subsidiaries iEnergizer Holdings Limited,
iEnergizer Group FZ - LLC, iEnergizer IT Services Private Limited,
iEnergizer Management Services Limited, iEnergizer BPO Limited,
iEnergizer Aptara Limited and Aptara Inc and subsidiaries.
(together the 'Group') is engaged in the business of call centre
operations, providing business process outsourcing (BPO) and
content delivery services, and back office services to their
customers, who are primarily based in the United States of America
and India, from its operating offices in Mauritius and India.
2. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS
These Unaudited Condensed Consolidated Interim Financial
Statements are for the six months ended 30 September 2016 and 2015.
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 2016 and 2015.
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 2016.
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
2016 and 2015.
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 (but not yet endorsed in EU), 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 (but not yet
endorsed in EU). 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 2016.
5. GOODWILL
The net carrying amount of goodwill can be analysed as
follows:
Particulars Amount
----------------------------- --------------
Balance as at 01 April 2015 102,270,059
Translation adjustment (7,299)
Balance as at 31 March 2016 102,262,760
----------------------------- --------------
Particulars Amount
--------------------------------- ------------
Balance as at 01 April 2016 102,262,760
Translation adjustment (1,003)
Balance as at 30 September 2016 102,261,757
--------------------------------- ------------
6. OTHER INTANGIBLE ASSETS
The Intangible assets comprise of computer software, customer
contracts.
Particulars Customer Computer Patent Trade mark Intangibles Total
contracts* softwares under development
--------------------- ------------ ----------- -------- ----------- ------------------- ------------
Cost
Balance as at 01
April 2015 24,127,796 2,516,249 100,000 12,000,000 132,490 38,876,535
------------ ----------- -------- ----------- ------------------- ------------
Additions - 450,456 450,456
Disposals - - - - - -
Translation
adjustment (8,164) (132,529) - - - (140,693)
------------ ----------- -------- ----------- ------------------- ------------
Balance as at 31
March 2016 24,119,632 2,834,176 100,000 12,000,000 132,490 39,186,298
Accumulated amortization
Balance as at 01
April 2015 13,473,400 2,141,813 - - 132,490 15,747,703
------------ ----------- -------- ----------- ------------------- ------------
Amortization/
impairment
for the period 2,779,416 416,743 - - - 3,196,159
Disposals - - - - - -
Translation
adjustment (8,164) (88,630) - - - (96,794)
------------ ----------- -------- ----------- ------------------- ------------
Balance as at 31
March 2016 16,244,652 2,469,926 - - 132,490 18,847,068
------------ ----------- -------- ----------- ------------------- ------------
Carrying values as
at 31
March 2016 7,874,980 364,250 100,000 12,000,000 - 20,339,230
--------------------- ------------ ----------- -------- ----------- ------------------- ------------
*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
7,874,980 and remaining amortization period is 3.8 years.
Particulars Customer Computer Patent Trade mark Intangibles Total
contracts* softwares under development
--------------- ----------------------- ------------------- ---------------------- ---------------------- --------------------- ---------------------
Cost
Balance as at
01 April 2016 24,119,632 2,834,176 100,000 12,000,000 132,490 39,186,298
Additions - 143,957 143,957
Disposals - - - - - -
Translation
adjustment (1,122) (20,428) - - - (21,550)
Balance as at
30 September
2016 24,118,510 2,957,705 100,000 12,000,000 132,490 39,308,705
----------------------- ------------------- ---------------------- ---------------------- --------------------- ---------------------
Accumulated amortization
Balance as at
01 April 2016 16,244,652 2,469,926 - - 132,490 18,847,068
----------------------- ------------------- ---------------------- ---------------------- --------------------- ---------------------
Amortisation/
impairment
for
the period 1,389,708 151,535 - - - 1,541,243
Disposals - - - - - -
Translation
adjustment (1,122) (18,196) - - - (19,318)
Balance as at
30 September
2016 17,633,238 2,603,265 - - 132,490 20,368,993
----------------------- ------------------- ---------------------- ---------------------- --------------------- ---------------------
Carrying
values as at
30 September
2016 6,485,272 354,440 100,000 12,000,000 - 18,939,712
--------------- ----------------------- ------------------- ---------------------- ---------------------- --------------------- ---------------------
*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
6,485,272 and remaining amortization period is 2.3 years.
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Particulars Computer Office Furniture Air conditioner Vehicle Leasehold Plant and Total
and data Equipment and fixtures and generator improvements machinery
equipment
-------------- ------------------------ --------------------- ------------------------- ------------------------- ------------------------ ------------------------ ----------------------- ----------------
Cost
Balance as at
01 April
2015 4,528,397 760,137 1,103,739 181,912 30,719 4,354,526 1,733,404 12,692,834
------------------------ --------------------- ------------------------- ------------------------- ------------------------ ------------------------ ----------------------- ----------------
Additions 517,626 37,241 156,831 89,885 - 148,762 61,678 1,012,023
Disposals
(Net) (122,702) (621) - - - - (2,599) (125,922)
Translation
adjustment (238,697) (40,864) (55,295) (9,806) (855) (222,576) (92,746) (660,839)
Balance as at
31 March
2016 4,684,624 755,893 1,205,275 261,991 29,864 4,280,712 1,699,737 12,918,096
------------------------ --------------------- ------------------------- ------------------------- ------------------------ ------------------------ ----------------------- ----------------
Accumulated
depreciation
Balance as at
01 April
2015 3,048,059 264,609 527,897 92,117 20,813 951,463 776,985 5,681,943
------------------------ --------------------- ------------------------- ------------------------- ------------------------ ------------------------ ----------------------- ----------------
Depreciation
for the
year 730,756 128,366 75,035 34,534 4,513 580,916 242,882 1,797,002
Disposals
(Net) (99,530) (617) - - - - (2,599) (102,746)
Translation
adjustment (166,171) (13,575) (26,181) (5,364) (724) (57,472) (38,274) (307,761)
Balance as at
31 March
2016 3,513,114 378,783 576,751 121,287 24,602 1,474,907 978,994 7,068,438
------------------------ --------------------- ------------------------- ------------------------- ------------------------ ------------------------ ----------------------- ----------------
Carrying
values as at
31 March
2016 1,171,510 377,110 628,524 140,704 5,262 2,805,805 720,743 5,849,658
-------------- ------------------------ --------------------- ------------------------- ------------------------- ------------------------ ------------------------ ----------------------- ----------------
Particulars Computer Office Furniture Air conditioner Vehicle Leasehold Plant and Total
and data Equipment and fixtures and generator improvements machinery
equipment
-------------- ------------------ --------------- ------------------ -------------------- ------------------- ------------------ ----------------- -------------
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 325,322 5,358 6,145 88,075 - 10,522 37,480 472,902
Disposals
(Net) (2,920) (1,363) - - - (274) - (4,557)
Translation
adjustment (30,757) (5,927) (8,488) (1,987) (118) (32,724) (13,997) (93,998)
Balance as at
30 September
2016 4,976,269 753,961 1,202,932 348,079 29,746 4,258,236 1,723,220 13,292,443
------------------ --------------- ------------------ -------------------- ------------------- ------------------ ----------------- -------------
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 345,035 71,809 41,078 23,854 2,250 291,609 129,304 904,939
Disposals
(Net) (2,920) (960) - - - - - (3,880)
Translation
adjustment (23,595) (2,739) (3,752) (862) (103) (10,136) (8,102) (49,289)
Balance as at
30 September
2016 3,831,634 446,893 614,077 144,279 26,749 1,756,380 1,100,196 7,920,208
------------------ --------------- ------------------ -------------------- ------------------- ------------------ ----------------- -------------
Carrying
values as at
30 September
2016 1,144,635 307,068 588,855 203,800 2,997 2,501,856 623,024 5,372,235
-------------- ------------------ --------------- ------------------ -------------------- ------------------- ------------------ ----------------- -------------
8. SHORT TERM FINANCIAL ASSETS
Particulars 30 September 31 March 2016
2016
---------------------------------------- -------------------- ----------------
Security deposits 40,342 22,132
Restricted cash 2,844,269 2,791,324
Short term investments (fixed deposits
with maturity less than 12 months) 1,166,251 1,386,574
Derivative financial instruments 579,744 189,941
Due from officers and employees 59,348 34,286
Others - 776
---------------------------------------- -------------------- ----------------
4,689,954 4,425,033
---------------------------------------- -------------------- ----------------
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 2016 is as follows:
Basic earnings per share
Particulars 30 September 30 September
2016 2015
--------------------------------------------- ---- ------------- --------------------------
Profit attributable to shareholders 8,738,170 7,792,096
Weighted average numbers shares outstanding 196,387,714 190,130,008
Basic earnings per share (USD) 0.04 0.04
---------------------------------------------- --- ------------- ------------------------
Diluted earnings per share
Particulars 30 September 30 September
2016 2015
--------------------------------------------- --- ------------------------ ------------------------
Profit attributable to
shareholders 8,738,170 7,792,096
Weighted average numbers shares outstanding 196,387,714 190,130,008
Diluted earnings per
share (USD) 0.04 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 Mr. Anil Agarwal
party
II. Entities directly
or indirectly through EICR Limited (Parent of iEnergizer
one or more intermediaries, Limited)
control, are controlled
by, or are under common
control with, the reported
enterprises
III. Key management personnel Mr. Anil Agarwal (Ultimate Shareholder,
("KMP") and significant EICR Limited)
shareholders
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 parent company
Particulars 30 September 30 September
2016 2015
-------------------------------- -------------- -------------
Transactions during the period
ended
Share issued to EICR Limited - 5,023,170
Transactions with KMP and relative of KMP
Particulars 30 September 30 September
2016 2015
-------------------------------- ------------------ ------------------
Transactions during the period
ended
Short term employee benefits
Remuneration paid to directors
Sara Latham - 19,114
Neil Campling - 114,736
Chris De Putron 6,590 7,721
Mark De La Rue 6,590 7,721
Marc Vassanelli 19,771 23,102
Balances at the end of
Total remuneration payable 67,367 19,233
-------------------------------- ------------------ ------------------
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 2016
----------------------------------------
Real time Back office Content delivery Others Total
processing services
----------------------- ------------ --------------- ------------------- --------------------- ---------------
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
amortization 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
----------------------- ------------ --------------- ------------------- --------------------- ---------------
30 September 2015
Real time Back office Content Others Total
processing services delivery
------------------ ------------------- ---------------- --------------- -------------- ------------
Revenue from
external
customers 10,246,421 18,996,395 38,072,296 - 67,315,112
------------------- ------------------- ---------------- --------------- -------------- --------------
Segment revenue 10,246,421 18,996,395 38,072,296 - 67,315,112
------------------- ------------------- ---------------- --------------- -------------- --------------
Other income 46,150 - 1,610,509 - 1,656,659
------------------- ------------------- ---------------- --------------- -------------- --------------
Cost of outsourced
Services - 12,362,198 6,935,976 - 19,298,174
Employee benefit
expense 7,820,436 4,500 19,725,151 - 27,550,087
Depreciation
and amortization 296,041 - 2,264,179 - 2,560,220
Other expenses 695,830 185,450 4,366,249 583,735 5,831,264
------------------- ------------------- ---------------- --------------- -------------- --------------
Segment operating
profit 1,480,264 6,444,247 6,391,250 (583,735) 13,732,026
------------------- ------------------- ---------------- --------------- -------------- --------------
Segment assets 10,792,135 12,236,900 84,881,222 76,957,797 184,868,054
------------------- ------------------- ---------------- --------------- -------------- --------------
Revenue from the following customer's amounts to more than 10%
of consolidated revenue during the period presented.
30 September 2016
Revenue from Segment Amount
-------------- ---------------------- ----------
Customer 1 Back office Services 8,321,461
-------------- ---------------------- ----------
Customer 2 Content Delivery 7,155,188
-------------- ---------------------- ----------
30 September 2015
Revenue from Segment Amount
-------------- ---------------------- -----------
Customer 1 Real time processing 7,388,931
-------------- ---------------------- -----------
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 31 March 2016
2016
----------------------------------------- ------------------------ --------------
Non-current assets
Loans and receivables
Security deposits 541,912 531,204
Restricted cash 29,697 29,932
Fixed deposit 60,501 -
Current assets
Loans and receivables
Trade receivables 25,401,292 27,613,023
Cash and cash equivalents 11,867,808 10,166,328
Restricted cash 2,844,269 2,791,324
Security deposits 40,342 22,132
Short term investments 1,166,251 1,386,574
Due from officers and employees 59,348 34,286
Other short term financial assets - 776
Fair value through profit and loss:
Derivative financial instruments 579,744 189,941
42,591,164 42,765,520
----------------------------------------- ------------------------ --------------
Financial liabilities 30 September 31 March 2016
2016
----------------------------------------- ------------------------ --------------
Non-current liabilities
Financial liabilities measured
at amortized cost:
Long term borrowings 67,558,758 73,741,220
Current liabilities
Financial liabilities measured
at amortized cost:
Short term borrowings - 642,751
Trade payables 7,303,692 9,398,856
Current portion of long term borrowings 13,927,710 13,846,942
Other current liabilities 6,839,720 7,674,671
Fair value through profit and loss:
Derivative financial instruments - -
95,629,880 105,304,440
----------------------------------------- ------------------------ --------------
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:
Fair value measurements
at reporting date
using
----------------------------- ------------- ------------------------
30 September 2016 Total Level 2
----------------------------- ------------- ------------------------
(Notional
Assets amount)
Derivative instruments
Forward contracts (currency
- USD/INR) 17,200,000 579,744
----------------------------- ------------- ------------------------
Fair value measurements
at reporting date
using
----------------------------- ------------- ------------------------
31 March 2016 Total Level 2
----------------------------- ------------- ------------------------
(Notional
Liabilities amount)
Derivative instruments
Forward contracts (currency
- USD/INR) 22,950,000 189,941
----------------------------- ------------- ------------------------
14. COMMITMENT AND CONTINGENCIES
As at 30 September 2016 and 31 March 2016, the Group had a
capital commitment of USD 60,949 and USD 99,707 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 93,299 and USD
81,190 as on 30 September 2016 and 31 March 2016 respectively and
in respect of interest on VAT amounts to USD 10,481 as on 30
September 2016 (USD 10,563 as on 31 March 2016).
Guarantees: As at 30 September 2016 and 31 March 2016,
guarantees provided by banks on behalf of the group companies to
the revenue authorities and certain other agencies, amount to
approximately USD 28,901 and USD 29,129 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 2016 and 2015.
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 2016 and
2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FFSFMSFMSEEF
(END) Dow Jones Newswires
November 11, 2016 02:00 ET (07:00 GMT)