Interim Results

RNS Number : 1417A

iEnergizer Limited

18 December 2014

 



18 December 2014

iEnergizer Limited

("iEnergizer" or "the Company")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014

iEnergizer, one of the largest AIM listed independent, integrated software and service pioneers,  is pleased to announce its Interim Results for the six months ended 30 September 2014. iEnergizer is a digital publishing and technology leader, set to benefit from the dual disruptive waves of big data and the cloud. The present structure of the group represents the combination of a well-established, high growth, business process solution enterprise with the only scale provider of leading end-to-end digital transformation solutions to the media and publishing industries.

Financial Highlights

·     Revenues of $76.1m (H1 2013: $73.9m)

·     Adjusted EBITDA(1) $14.9m (H1 2013: $20.2m)

·     Adjusted EBITDA (1)margin at 19.6% (H1 2013: 27.3%)

·     Operating profit $9.8m (H1 2013: $16.8m)

·     Operating profit margin at 12.9% (H1 2013: 22.7%)

·     Cash and cash equivalents of $14.2m (increase of US$1.7m over 31 March 2014 ($12.5m))

·     Term Debt of $113.8m (31 March 2014: $121.5m). The Company is compliant of all applicable financial covenants including on-time payments of loan instalments and interest.

Operational Highlights

·     Aggregate revenue in content services has fallen from $51.5m (H1 2013) to $45.1m (H1 2014). The fall is primarily due to the continued reduction of volume in the high margin XBRL contract client which reduced revenues by $12.2m during the corresponding period. Current trends are lower as some other large contracts also came to an end due to an underlying project completion. While the full year revenues for content services may be lower than last year, the Company is confident of getting back to a growth trajectory before the end of the fiscal year and a return to growth in FY 2016. While the content services are largely project-driven, (where revenues may be impacted in the short term, on completion of the underlying projects), the long term growth prospect of content services remains intact as the shift to the digital world is irreversible and iEnergizer has a unique position with cutting edge technology to serve as an enabler to its clients to help them during this transformational period.

·     Revenue growth in Real Time Processing ("RTP") of 18.6%, above the projected growth of the domestic IT service market growth of 9-12% (as forecast by the National Association of Software and Services Companies).

·     Strong performance from Back Office Services ("BOS"), returning to growth after decline in 2014. This was, in part, due to a one-time project, which was completed by the end of H1. The Company is hopeful of maintaining this growth momentum.

·     Continued focus on recurring revenue streams from business critical processes and long-term customer relationships and developing a sustainable long-term pipeline from the MAPS initiative introduced in 2014.

·     Focus on cross-sell life-cycle management solutions into content clients, and increase the average revenue by customer across an active customer base which now totals 350.

·     Focus on effecting cost savings through several new cost cutting initiatives:

§ Completed relocation of Delhi based content service operations to Group's larger and cost effective operation centre at Noida, India.

§ Continued focus on utilizing pool of personnel at other significantly cheaper locations like Trivandrum, Dehradun and Pune.

§ Continued focus of rationalizing SG&A costs including leveraging US based sales team for generating sales pipeline for all business verticals of the Group.

·     Cash position of $14.5m along with incremental cash generation puts the Company in a strong position to invest in both organic and inorganic growth opportunities.

(1)  Adjusted EBIDTA means Earnings before Interest, Debt, Tax and Amortization, adjusted for on off costs of US$ 1.6mn in respect of one time relocation and severance expenses. The reported EBIDTA for H1 is $13.3mn (H1 2013: $20.2m)

Sara Latham, Chairman of iEnergizer, commented:

"Following a difficult year in Fiscal 2014, trading in the first half of Fiscal 2015 has been one of consolidation with current trends expected to result in lower full year revenues compared to last year. The progress and the strategies employed by the Company in recent months are beginning to show signs of success and expected to help the Company in its long term growth plans going forward.

"As previously indicated, it may take some time to execute all operational improvements being implemented and new business opportunities being realised, but we have made good progress and are already seeing these bare fruit.

"The Company remains confident in its ability to return to the high growth trajectory of the past by fiscal year 2016 which, in turn, will transform iEnergizer into  a global Business Process Management firm. I extend my heartiest thank to all employees of the Company for their hard work in preserving the fundamentals of the Company, which remain strong."

-Ends-

Enquiries:

iEnergizer                                                                           020 7887 1511

Neil Campling, Chief Financial Officer                  

Arden Partners                                                                 020 7614 5900

Steve Douglas/James Felix                                        

FTI Consulting                                                                   020 7831 3113

Jonathan Brill/Edward Westropp

Unaudited Condensed Consolidated Statements of Financial Position

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

	Notes		As at				As  at
			30 September 2014				31 March 2014
			Unaudited				Audited
ASSETS
Non-current
Goodwill	5			102,272,455		102,276,420
Other intangible assets	6			25,314,903		27,461,845
Property, plant and equipment	7			7,013,604		5,800,324
Long- term financial asset				1,001,966		1,014,221
Deferred tax asset				17,998,548		10,311,226
Non-current assets				153,601,476		146,864,036
Current
Trade and other receivables				24,567,811		34,027,675
Cash and cash equivalents				14,199,995		12,513,110
Short- term financial assets	8			4,443,056		5,337,639
Current tax asset				834,886		685,100
Other current assets				1,908,294		1,746,830
Current assets				45,954,042		54,310,354
Total assets				199,555,518		201,174,390
EQUITY AND LIABILITIES
Equity
Share capital				3,195,334		3,195,334
Share compensation reserve				63,986		63,986
Additional paid in capital				11,009,480		11,009,480
Merger reserve				(1,049,386)		(1,049,386)
Retained earnings				46,577,696		43,325,693
Other components of equity				(7,462,145)		(5,738,256)
Total equity attributable to equity holders of the parent				52,334,965		50,806,851

		Notes		As at		As  at
				30 September 2014		31 March 2014
				Unaudited		Audited
Liabilities
Non-current
Long term borrowings				99,817,066		105,869,584
Employee benefit obligations				5,087,888		4,769,922
Other non-current liabilities				565,091		475,535
Deferred tax liability				9,000,188		2,127,710
Non-current liabilities				114,470,233		113,242,751
Current
Trade and other payables				9,016,469		10,065,974
Employee benefit obligations				786,360		748,267
Current tax liabilities				1,043,457		619,930
Current portion of long term borrowings				13,968,499		15,616,847
Other current liabilities				7,935,535		10,073,770
Current liabilities				32,750,320		37,124,788
Total equity and liabilities				199,555,518		201,174,390

 (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 2014	30 September 2013
		Unaudited	Unaudited
Revenue
Rendering of services		74,645,886	72,754,074
Other operating income		1,439,922	1,170,575
		76,085,808	73,924,649
Cost and expenses
Outsourced service cost		21,329,925	15,435,477
Employee benefits expense		32,581,211	29,443,193
Depreciation and amortisation		3,503,974	3,386,724
Other expenses		8,863,203	8,821,147
		66,278,313	57,086,541
Operating profit		9,807,495	16,838,108
Finance income		205,496	205,386
Finance cost		(5,228,210)	(5,459,955)
Profit before tax		4,784,781	11,583,539
Income tax expense		1,532,778	2,112,598
Profit for the period attributable to equity holders of the parent		3,252,003	9,470,941
Earnings per share	9
Basic		0.02	0.06
Diluted		0.02	0.06
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 2014		30 September 2013
	Unaudited		Unaudited
Profit after tax for the period	3,252,001		9,470,940
Exchange differences on translating foreign operations	(1,723,889)		(4,443,063)
Total comprehensive income attributable to equity holders	1,528,112		5,027,877

(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 2013	3,195,334	11,009,480	63,986	(1,049,386)	(2,897,780)	-	23,180,758	33,502,392
Issue of ordinary shares	-	-	-	-	-	-	-	-
Dividends	-	-	-	-	-	-	-	-
Transaction with owners	-	-	-	-	-	-	-	-
Profit for the year	-	-	-	-	-	-	20,144,935	20,144,935
Other comprehensive income	-	-	-	-	(2,705,472)	(135,004)	-	(2,840,476)
Total comprehensive income for the year	-	-	-	-	(2,705,472)	(135,004)	20,144,935	17,304,459
Balance as at 31 March 2014	3,195,334	11,009,480	63,986	(1,049,386)	(5,603,252)	(135,004)	43,325,693	50,806,851

(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 2014	3,195,334	11,009,480	63,986	(1,049,386)	(5,603,252)	(135,004)	43,325,693	50,806,851
Issue of ordinary shares	-	-	-	-	-	-	-	-
Dividends	-	-	-	-	-	-	-	-
Transaction with owners	-	-	-	-	-	-	-	-
Profit for the period	-	-	-	-	-	-	3,252,003	3,252,003
Other comprehensive income	-	-	-	-	(1,723,889)	-	-	(1,723,889)
Total comprehensive income for the period	-	-	-	-	(1,723,889)	-	3,252,003	1,528,114
Balance as at 30 September 2014	3,195,334	11,009,480	63,986	(1,049,386)	(7,327,141)	(135,004)	46,577,696	52,334,965

(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 2014	30 September 2013
Cash flow from operating activities
Profit before tax		4,784,781	11,583,539
Adjustments
Depreciation and amortisation		3,503,974	3,386,724
Loss on disposal of property, plant and equipment		34,430	-
Profit on disposal of property, plant and equipment		-	(7,783)
Trade receivables written-off		40,207	37,000
Unrealised Foreign exchange loss/ (gain)		(663,665)	(1,129,208)
Finance Income		(205,496)	(205,386)
Finance Cost		5,228,210	5,459,955
		12,722,441	19,124,841
Changes in operating assets and liabilities
Decrease / (Increase) in trade and other receivables		9,285,305	(3,191,226)
Decrease/ (Increase) in other assets (current and non-current)		(126,995)	984,146
Non-current liabilities, trade payables & other current liabilities		(1,667,882)	(6,973,683)
Increase / (Decrease) in employee benefit obligations		300,091	(57,609)
Cash generated from operations		20,512,960	9,886,469
Income taxes paid		(2,073,882)	(3,223,590)
Net cash generated from operating activities		18,439,078	6,662,879
Cash flow for investing activities
Payments for purchase of property plant and equipment		(2,420,969)	(1,481,943)
Payments for purchase of other intangible assets		(355,523)	-
Interest received		167,592	205,386
Net cash used in investing activities		(2,608,900)	(1,276,557)

 

Cash flow from financing activities
Interest paid			(5,782,542)	(5,459,955)
Proceeds/(Repayment) of long-term borrowings			(8,265,753)	126,037,620
Proceeds/(Repayment) of short term borrowings			-	(132,500,000)
Net cash used in financing activities			(14,048,295)	(11,922,335)
Net increase/(decrease) in cash and cash equivalents			1,781,883	(6,536,013)
Cash and cash equivalents at the beginning of the period			12,513,110	20,903,133
Effect of exchange rate changes on cash			(94,998)	(456,552)
Cash and cash equivalents at the end of the period			14,199,995	13,910,568
Cash and cash equivalents comprise
Cash in hand			916,714	12,806
Balances with banks in current account			13,283,281	13,800,424
Balances with banks in deposit account			-	97,338
			14,199,995	13,910,568

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

1.    INTRODUCTION

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

iEnergizer 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, iEnergizerAptara Limited and AptaraInc 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 2014 and 2013. 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 2014 and 2013.

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 24^th November, 2013.

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 2014 and 2013, except for the application of the following standards as of 1 April 2014:

• IFRS 10 'Consolidated Financial Statements'

• IFRS 11 'Joint Arrangements'

• IFRS 12 'Disclosure of interests in other entities'

• IAS 27 (Revised) 'Separate financial statements'

• IAS 28 (Revised) 'Investments in Associates and Joint Ventures'

• Amendments to IFRS 10, IFRS 12 and IAS 27 'Investment entities'

• Amendments to IAS 32 'Offsetting Financial Assets and Financial Liabilities'

The effects of applying these standards are described below.

·     IFRS 10 Consolidated Financial Statements

IFRS 10 supersedes IAS 27 'Consolidated and Separate Financial Statements' (IAS 27) and SIC12 'Consolidation-Special Purpose Entities'. IFRS 10 revises the definition of control and provides extensive new guidance on its application. These new requirements have the potential to affect which of the Group's investees are considered to be subsidiaries and therefore to change the scope of consolidation. The requirements on consolidation procedures, accounting for changes in non-controlling interests and accounting for loss of control of a subsidiary are unchanged.

Management has reviewed its control assessments in accordance with IFRS 10 and has concluded that there is no effect on the classification (as subsidiaries or otherwise) of any of the Group's investees held during the period or comparative periods covered by these financial statements.

·       IFRS 11 Joint Arrangements

IFRS 11 supersedes IAS 31 'Interests in Joint Ventures' (IAS 31) and SIC 13 'Jointly Controlled Entities- Non-Monetary-Contributions by Venturers'. IFRS 11 revises the categories of joint arrangement, and the criteria for classification into the categories, with the objective of more closely aligning the accounting with the investor's rights and obligations relating to the arrangement. In addition, IAS 31's option of using proportionate consolidation for arrangements classified as jointly controlled entities under that Standard has been eliminated.

IFRS 11 now requires the use of the equity method for arrangements classified as joint ventures (as for investments in associates).

As the Group does not have any investment in any of such joint arrangements, management has concluded that application of this standard will not have any impact on the disclosures or on amounts recognized in consolidated financial statements.

·      IFRS 12 Disclosure of interests in other entities

IFRS 12 combines the disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities within a comprehensive disclosure standard.

It aims to provide more transparency on 'borderline' consolidation decisions and enhance disclosures about unconsolidated structured entities in which an investor or sponsor has involvement.

Subsequent to issuing the new standards the IASB made some changes to the transitional provisions in IFRS 10, IFRS 11, and IFRS 12. The guidance confirms that the entity is not required to apply IFRS 10 retrospectively in certain circumstances and clarifies the requirements to present adjusted comparatives. The guidance also makes changes to IFRS 11 and IFRS 12 which provide similar relief from the presentation or adjustment of comparative information for periods prior to the immediately preceding period. Further, it provides additional relief by removing the requirement to present comparatives for the disclosures relating to unconsolidated structured entities for any periods before the first annual period for which IFRS 12 is applied.

Management has concluded that application of this standard will not have any impact on the disclosures or on amounts recognized in consolidated financial statements.

·      IAS 27 (Revised) 'Separate financial statements'

The remainder of IAS 27, 'Separate Financial Statements', now contains accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates only when an entity prepares separate financial statements and is therefore not applicable in the Group's consolidated interim financial statements.

·    IAS 28 (Revised) 'Investments in Associates and Joint Ventures'

IAS 28 brings investments in joint ventures into its scope. However, IAS 28's equity accounting methodology remains unchanged. As the Group does not have any investment in joint ventures, management has concluded that application of this standard will not have any impact on the disclosures or on amounts recognized in consolidated financial statements.

·     Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)

These amendments provide an exception to the consolidation requirement for entities that meet the definition of an investment entity under IFRS 10 Consolidated Financial Statements. The exception to consolidation requires investment entities to account for subsidiaries at fair value through profit or loss. These amendments have no impact to the Group, since none of the entities in the Group qualifies to be an investment entity under IFRS 10.

·     Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32

These amendments clarify the meaning of 'currently has a legally enforceable right to set-off' and the criteria for non-simultaneous settlement mechanisms of clearing houses to qualify for offsetting. These amendments have no impact on the Group.

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 ending 31 March 2014.

5.   GOODWILL

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

Particulars	Amount
Balance as at 01 April 2013	102,289,911
Impairment loss recognised	-
Translation adjustment	(13,491)
Balance as at 31 March 2014	102,276,420

Particulars	Amount
Balance as at 01 April 2014	102,276,420
Impairment loss recognised	-
Translation adjustment	(3,965)
Balance as at 30 September 2014	102,272,455

6.   OTHER INTANGIBLE ASSETS

The Intangible assets comprise of computer software, customer contracts.

Particulars	Customer contracts	Computer software	Patent	Trade mark	Intangibles under development	Total
Cost
Balance as at 01 April 2013	24,149,998	1,471,358	100,000	12,000,000	165,220	37,886,576
Additions	-	866,439	-	-	-	866,439
Disposals	-	-	-	-	(7,885)	(7,885)
Translation adjustment	(15,088)	(102,234)	-	-	(24,845)	(142,167)
Balance as at 31 March 2014	24,134,910	2,235,563	100,000	12,000,000	132,490	38,602,963
Accumulated depreciation
Balance as at 01 April 2013	5,289,308	919,298	-	-	-	6,208,606
Depreciation for the period	4,216,187	781,265	-	-	-	4,997,452
Disposals	-	-	-	-	-	-
Translation adjustment	(7,786)	(57,154)	-	-	-	(64,940)
Balance as at 31 March 2014	9,497,709	1,643,409	-	-	-	11,141,118
Carrying values as at 31 March 2014	14,637,201	592,154	100,000	12,000,000	132,490	27,461,845

Particulars	Customer contracts	Computer software	Patent	Trade mark	Intangibles under development	Total
Cost
Balance as at 01 April 2014	24,134,910	2,235,563	100,000	12,000,000	132,490	38,602,963
Additions	-	295,667	-	-	59,856	355,523
Disposals (Net)	-	-	-	-	-	-
Translation adjustment	(4,435)	(65,527)	-	-	(3,711)	(73,673)
Balance as at 30 September 2014	24,130,475	2,465,703	100,000	12,000,000	188,635	38,884,813
Accumulated depreciation
Balance as at 01 April 2014	9,497,709	1,643,409	-	-	-	11,141,118
Depreciation for the period	2,111,742	371,202	-	-	-	2,482,944
Disposals (Net)	-	-	-	-	-	-
Translation adjustment	(4,435)	(49,717)	-	-	-	(54,152)
Balance as at 30 September 2014	11,605,016	1,964,894	-	-	-	13,569,910
Carrying values as at 30 September 2014	12,525,459	500,809	100,000	12,000,000	188,635	25,314,903

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	Finance lease asset	Capital work in progress	Total
Cost
Balance as at 01 April 2013	1,970,317	164,624	376,914	141,674	33,043	1,037,466	881,975	1,601,400	-	6,207,413
Additions	1,237,049	70,137	221,568	34,644	-	242,673	334,182	(1,584)	1,820,784	3,959,453
Disposals	(74,703)	(1,631)	(4,002)	-	-	-	(33,873)	(1,991)	421	(115,779)
Translation adjustment	(150,934)	(14,679)	(26,196)	(12,310)	(1,580)	(88,880)	(67,851)	(132,094)	-	(494,524)
Balance as at 31 March 2014	2,981,729	218,451	568,284	164,008	31,463	1,191,259	1,114,433	1,465,731	1,821,205	9,556,563
Accumulated depreciation
Balance as at 01 April 2013	773,269	53,133	227,467	31,325	10,752	325,559	388,404	530,203	-	2,340,112
Depreciation for the year	585,679	47,411	100,333	12,778	6,990	241,347	266,750	391,897	-	1,653,185
Disposals	(35,355)	(814)	(1,484)	-	-	-	(31,135)	(1,252)	-	(70,040)
Translation adjustment	(11,924)	(4,593)	(15,992)	(2,605)	(894)	(26,291)	(27,770)	(76,949)	-	(167,018)
Balance as at 31 March 2014	1,311,669	95,137	310,324	41,498	16,848	540,615	596,249	843,899	-	3,756,239
Net carrying values as at 31 March 2014	1,670,060	123,314	257,960	122,510	14,615	650,644	518,184	621,832	1,821,205	5,800,324

Particulars	Computer and data equipment	Office Equipment	Furniture and fixtures	Air conditioner and generator	Vehicle	Leasehold improvements	Plant and machinery	Capital lease asset	Capital work in progress	Total
Cost
Balance as at 01 April 2014	2,981,729	218,451	568,284	164,008	31,463	1,191,259	1,114,433	1,465,731	1,821,205	9,556,563
Additions	222,345	27,965	183,531	3,131	-	236,130	192,588	1,855	1,633,139	2,500,684
Disposals (Net)	(3,553)	-	(12,195)	-	-	(54,853)	(6,390)	(15,004)	(82,314)	(174,309)
Translation adjustment	(82,671)	(6,324)	(14,190)	(4,677)	(464)	(32,834)	(28,305)	(38,788)	(51,010)	(258,631)
Balance as at 30 September 2014	3,117,850	240,094	725,430	162,462	30,999	1,340,334	1,272,326	1,413,794	3,321,020	11,624,307
Accumulated depreciation
Balance as at 01 April 2014	1,311,669	95,137	310,324	41,498	16,848	540,615	596,249	843,899	-	3,756,239
Depreciation for the period	386,924	23,042	138,548	8,227	3,502	154,551	142,799	163,437	-	1,021,030
Disposals (Net)	(3,309)	(7,256)	(12,195)	-	-	(32,863)	(3,857)	(742)	-	(60,222)
Translation adjustment	(38,334)	(2,729)	(9,464)	(1,346)	(401)	(16,185)	(14,177)	(23,708)	-	(106,344)
Balance as at 30 September 2014	1,656,950	108,194	427,213	48,379	19,949	646,118	721,014	982,886	-	4,610,703
Carrying values as at 30 September 2014	1,460,900	131,898	298,217	114,083	11,050	694,216	551,312	430,908	3,321,020	7,013,604

8.   SHORT TERM FINANCIAL ASSETS

Particulars	30 September 2014	31 March 2014
Security deposits	205,261	212,869
Restricted cash	2,810,444	2,894,057
Short term investments (fixed deposits with maturity less than 12 months)	1,344,695	942,904
Derivative financial instruments	75,321	1,166,654
Due from officers and employees	7,335	120,841
Others	-	314
	4,443,056	5,337,639

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 2014 is as follows:

Basic earnings per share

Particulars		30 September 2014	30 September 2013
Profit attributable to shareholders		3,252,003	9,470,941
Weighted average numbers shares outstanding		152,402,494	153,010,000
Basic earnings per share (USD)		0.02	0.06

Diluted earnings per share

Particulars		30 September 2014	30 September 2013
Profit attributable to shareholders		3,252,003	9,470,941
Potential ordinary shares*		107,508	66,076
Weighted average numbers shares outstanding		152,510,002	153,076,076
Diluted earnings  per share (USD)		0.02	0.06

* Shares to be issued under share options granted

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) Barker Shoes Limited (Under common control)
III. Key management personnel ("KMP") and significant shareholders	Mr. Anil Agarwal(Ultimate Shareholder, EICR Limited)
	Ms. Sara Latham, (Director, iEnergizer Limited)
	Mr. Chris De Putron(Director, iEnergizer Limited) Mr. Mark De La Rue (Director, iEnergizer Limited) Mr. MarcVassanelli(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 2014	30 September 2013
Transactions during the period ended
Dividend paid	-	-
Interest paid	-	2,586,927
Repayment of loan	-	20,000,000
Balances at the end of
Interest payable	-	-
Demand loan facility	-	-

Transactions with KMP and relatives of KMP

Particulars	30 September 2014	30 September 2013
Transactions during the period ended
Short term employee benefits
Remuneration paid to directors
Sara Latham	24,953	27,036
John Behar	-	27,036
Chris De Putron	8,297	7,838
Mark De La Rue	8,297	7,838
Marc Vassanelli	24,684	-
Excess remuneration paid to directors written back
John Behar	(4,160)	-
Balances at the end of
Total remuneration payable	20,191	16,139

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 2014
	Real time processing	Back office services	Content delivery	Others	Total

Revenue
Revenue from external customers	9,317,504	21,633,679	43,694,703	-	74,645,886
Other operating Income	2,103	-	1,437,819	-	1,439,922
Segment revenue	9,319,607	21,633,679	45,132,522	-	76,085,808
Cost of outsourced Services	-	9,840,417	11,489,508	-	21,329,925
Employee benefit expense	6,415,588	4,571	26,083,647	77,405	32,581,211
Depreciation and amortisation	394,863	-	3,109,111	-	3,503,974
Other expenses	675,531	344,665	7,376,184	466,825	8,863,205
Segment operating profit	1,833,625	11,444,026	(2,925,928)	(544,230)	9,807,493
Segment assets	9,527,690	14,172,838	99,053,342	76,801,648	199,555,518

				30 September 2013
	Real time processing	Back office services	Content delivery	Others	Total

Revenue
Revenue from external customers	7,839,336	14,469,795	50,422,617	22,326	72,754,074
Other Operating Income	559	-	1,151,467	18,549	1,170,575
Segment Revenue	7,839,895	14,469,795	51,574,084	40,875	73,924,649
Cost of Outsourced Services	-	8,301,920	7,133,557	-	15,435,477
Employee Benefit Expense	5,113,373	750	24,312,614	16,456	29,443,193
Depreciation and Amortisation	219,099	-	3,161,714	5,911	3,386,724
Other expenses	624,013	217,196	7,176,302	803,637	8,821,147
Segment Operating Profit	1,883,410	5,949,929	9,789,897	(785,129)	16,838,108

Segment assets

6,276,777

14,410,574

101,205,934

78,295,110

200,188,395

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

30 September 2014

Revenue from	Segment	Amount
Customer 1	Content Delivery	6,630,868
Customer 2	Back office Services	5,887,537

30 September 2013

Revenue from	Segment	Amount
Customer 1	Content Delivery	13,972,908

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 2014	31 March 2014
Non-current assets
Loans and receivables
Security deposits	830,382	854,256
Restricted cash	171,584	85,226
Deposits with banks	-	74,739
Current assets
Loans and receivables
Trade receivables	24,567,811	34,027,675
Cash and cash equivalents	14,199,995	12,513,110
Restricted cash	2,810,444	2,894,057
Security deposits	205,261	212,869
Short term investments	1,344,695	942,904
Other current assets	7,335	120,841
Other short term financial assets	-	314
Fair value through profit and loss:
Derivative financial instruments	75,321	1,166,654
	44,212,828	52,892,645
Financial liabilities	30 September 2014	31 March 2014
Non-current liabilities
Financial liabilities measured at amortized cost:
Long term borrowings	99,817,066	105,869,584
Current liabilities
Financial liabilities measured at amortized cost:
Trade payables	9,016,469	10,065,974
Current portion of long term borrowings	13,968,499	15,616,847
Other current liabilities	2,907,930	6,048,777
Fair value through profit and loss:	-	-
	125,709,964	137,601,182

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 2014	Total	Fair value measurements at reporting date using
			Level 2
Liabilities	(Notional amount)
Derivative instruments
Forward contracts (currency - USD/INR)	33,300,000		75,321

31 March 2014	Total	Fair value measurements at reporting date using
			Level 2
Assets	(Notional amount)
Derivative instruments
Forward contracts (currency - USD/INR)	29,200,000		1,166,654

14.  COMMITMENT AND CONTINGENCIES

As at 30 September 2014, the Group had a capital commitment of USD 258,602 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 151,103 and USD 145,826 as on 30 September 2014 and 31 March 2013 respectively.

Guarantees:  As at 30 September 2014 and 31 March 2014, guarantees provided by banks on behalf of the group companies to the revenue authorities and certain other agencies, amount to approximately USD 76,476 and USD 78,680 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 2014 and 2013.

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 2014 and 2013.

 

END

 

 

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