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West Pioneer Props (WPR)

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Friday 03 October, 2008

West Pioneer Props

Final Results

RNS Number : 9989E
West Pioneer Properties Limited
03 October 2008
 



Press Release 

03 October  2008


West Pioneer Properties Limited


('West Pioneer' or 'the Group')


Final Results 


West Pioneer (AIM:WPR), which intends to become a leading developer and operator of shopping malls in west and southern India, has today despatched to shareholders of the Group its Annual Report & Accounts for the year ended 31 March 2008 The accounts are also available on the Group's website: www.west-pioneer.com and copies will be made available at the UK office of West Pioneer: 4th Floor, Scottish Provident House, 76-80 College RoadHarrowHA1 1BQ. 


The finaresults are different to thosincluded in the preliminary results announcement released to the market on 27 August 2008 (RNS Number: 0715C). The key change is the inclusion of a provision for deferred tax of US$5.1m, which contributes to a reduction in Net Assets from US$71.8m, as previously disclosed, to US$66.5m in the final results (2007: US$42.6m). Earnings per share have also been reduced.


In addition, a number of reclassifications and other audit adjustments have been reflected in the Annual Report & Accounts that have been sent to shareholders. Set out below is the updated financial information which reflects these adjustments and replaces the financial information which was included in the announcement of 27 August 2008.



Media enquiries:

Abchurch Communications


Heather Salmond / George Parker

Tel: +44 (0) 20 7398 7700

Tel: +44 (0) 20 7398 7719

[email protected] 

[email protected] 

www.abchurch-group.com 


For further information:

Libertas Capital


Aamir Quraishi / Andrew Hardy

Tel: +44 (0)20 7569 9650


Highlights  


Metro Junction commences business with anchor tenants McDonalds and Big Bazaar

Net Assets of US$66.5m (2007: US$42.6m)

Appointment of Mr. Nitin Dattani as Executive Director and Mr. Mac Daniels as VP - Mall Management 

Acquired entire land parcels in Aurangabad and Nashik

Appointment of lead architects for Aurangabad and Nashik


West Pioneer Properties Limited

CONSOLIDATED INCOME STATEMENT

for the year ended 31st March 2008



Notes

   

31st March 2008

31st March 2007

   


$

$





Revenue and other income




Property Rentals 


 27,388

-

Property Revaluation


14,064,821

-



14,092,209

-

Finance and other income

1

 2,250,912

666,077





Total revenue and other income


16,343,121

666,077





Expenses




Administrative expenses

2

(1,813,813)

(747,378)

Selling & Distribution Costs


-

(4,150)

Finance costs

3

 (106,027)

(14,393)

Total expenses


1,919,840

(765,921)









Profit/(Loss) before tax


14,423,281

(99,844)

Income tax expense

4

 (5,122,660)

(3,746)





Profit/(Loss) after tax


9,300,621

(103,590)





Attributable to:




Equity holders


9,300,621

(103,590)





Earnings per share


  0.119

   

  (0.001)

Basic and Diluted EPS 









CONSOLIDATED BALANCE SHEET

AS AT 31st March 2008



Notes

31st March 2008

31st  March 2007



 $ 

 $ 

ASSETS




 Non current assets 




 Property, plant and equipment 

5

7,972,670

7,038,465

 Investment Property 

6

29,624,060

0

 Intangible assets 


13,764

4,340

 Prepayments

10

26,771,006

6,766,032

 Other financial assets

7

238,048

107,555



64,619,548

13,916,392

 Current assets 




 Investments - Held for trading

8

12,663,153

24,419,085

 Other receivables 

9

 202,639

184,165

 Prepayments 

10

44,312

43,365

 Advance Income Tax


45,566

6,801

 Cash and cash equivalents 

11

 13,320,738

7,833,015



26,276,408

32,486,431

 TOTAL ASSETS 


  90,895,956

46,402,823





 EQUITY AND LIABILITIES 




 Equity attributable to the equity holders




 Issued capital 

12

8,000,664

7,504,534

 Share premium 

12

45,717,870

34,525,188

 Retained earnings 


 9,195,064

(105,558)

 Foreign currency translation reserve

12

 3,571,074

650,132



  66,484,672 

  42,574,296

 Non current liabilities 




 Interest bearing loans and borrowings 

13

9,840,030

2,468,599

 Other liabilities


432,898

455,026

 Employee benefit liability


12,046

407

 Income tax liability


 




10,284,974 

2,924,032

 Current liabilities 




 Trade and other payables 

14

 6,685,565

776,526

 Interest bearing loans and borrowings

15

2,130,326

-

 Other liabilities


5,310,419

127,969

 






  14,126,309 

  904,495

TOTAL LIABILITIES


24,411,283

3,828,527

TOTAL EQUITY AND LIABILITIES


 90,895,956 

46,402,823






CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31st March 2008


Issued

Share

Retained

Foreign currency translation

Total


Capital

premium

Earnings

 reserve

Equity


$

$

$

$

$


 Balance as at 1st April 2007

7,504,534

34,525,188

(105,558)

650,132

42,574,296

Net profit for the period

-

-

9,300,622

-

9,300,622

Difference for currency translation 

-

-

-

2,920,942

2,920,942


-

-

9,195,064

3,571,074

54,795,860


Issue of share capital

   


496,130

-

-

-

  496,130

Share premium on fresh issue of capital

-

11,596,736

-

-

11,596,736



-


-

   

Share issue expenses

-

(404,054)

-

-

  (404,054)

Balance as at 31st March 2008

8,000,664

45,717,870

9,195,064

3,571,074

66,484,672







Balance as at 1st April 2006

4,534

-

(1,968)

(6)

2,560

Net Profit for the year

-

-

(103,590)

-

(103,590)

Foreign currency translation reserve

-

-

-

650,138

650,138

Total income and expense for the year 

-

-

(105,558)

650,132

549,523

Issue of share capital as on 5th September 2006

10

-

-

-

10

Issue of share capital as on 21st November 2006

4,999,990

-

-

-

4,999,990

Issue of share capital as on 13th December 2006

2,500,000

37,500,000

-

-

40,000,000

Share issue expenses

-

(2,974,812)

-

-

(2,974,812)

Balance as at 31st March 2007

7,504,534

34,525,188

(105,558)

650,132

42,574,296




 

CONSOLIDATED CASH FLOW STATEMENT

for the year ended 31st March 2008


2008

2007

 Operating activities 



 Profit/(Loss) before tax from continuing operations 

14,423,281

(99,844)

 Adjustments to reconcile profit before tax to net cash flows 



 Depreciation and impairment of property, plant and equipment 

17,579 

  3,871 

 Amortisation of Preliminary Expenses

-  

-  

 (Increase)/decrease in fair value of investment properties 

  (14,129,555)

  (52,090)

 Net gain on sale of investments 

  (38,851)

  (1,269)

 Dividend income 

 (1,388,600)

 (297,762)

 Interest Income 

 (732,564)

 (308,628)

 Interest expense 

(106,027)

  14,376 

 Working Capital Adjustment 

(Increase)/decrease in other assets (non-current)

699,359

 (103,253)

 (Increase)/decrease in prepayments (current)

  1,983

  (9,139)

(Increase)/ decrease in other receivables

(1,427)

  175,280

 Increase/(decrease) in trade and other payables 

3,305,616

  324,184

 Increase/(decrease) in other liabilities current

  (10,157)

  185,884 

 Increase/(decrease) in other liabilities non current

  (30,525)

  42,082

 Income tax paid 

  (8,192)

  (2,747)

 Net cash flows from operating activities 

2,001,920

  (129,055)

 Investing activities 



 Proceeds from sale of held-for-trading investments 

76,468,829

13,851,196  

 Purchase of property, plant and equipment & intangible assets

(15,253,419)

  (34,706)

 Purchase of held-for-trading investments

 (62,614,915)

 (37,284,008)

 (Increase)/decrease in prepayments

(20,038,101)

  (6,464,639)

 Increase/(decrease) in trade & other payables relating to construction costs

2,238,969

  441,989

 Investment in construction costs

(247,392)

  (5,781,277)

 Net gain on sale of investments

38,851

  1,269

 Dividend income

1,388,600

121,947  

 Interest received

732,564

308,628  

 Net cash flows used in investing activities

(17,286,014)

 (34,839,601)

 Financing activities



 Proceeds from issue of shares 

 12,092,866 

  45,000,000 

 Transaction costs of issue of shares

(404,054) 

  (2,974,318)

 Proceeds from issue/ (redemption) of preference share capital

-

(817,680)

 Proceeds from borrowings

9,193,890

2,369,855  

 Interest paid

106,027

  (14,376)

 Net cash flows used in financing activities

20,988,729

  43,563,481 

 Net increase/(decrease) in cash and cash equivalents

5,704,637

8,594,825 

 Net foreign exchange difference

(216,914)

(744,502)

 Closing cash and cash equivalents - Opening balance

7,833,015

  (17,308)

 Closing cash and cash equivalents at 31st March

13,320,738

  7,833,015  




1. Finance Revenue and other income 

   For the year ended 

   31st March:


2008

2007


$

$

Finance Revenue 

Change in fair value of investments (Note 14)

474

52,090

Dividend earned on investments 

1,388,600

297,762

Profit on sale of investments (net of loss)

38,851

1,269

Bank interest

732,563

308,628

Other Income

90,424

6,328

Total (on a historical cost basis)

    2,250,912

      666,077



2. Administrative expenses




Employee costs



Salaries

705,237

271,294

Provident Fund

10,469

0

Gratuity

9,413

91

Legal & professional fees

293,753

193,170

General expenses

668,178

278,952

Rent 

109,184

-

Depreciation and amortization

17,579

3871

Total

1,813,813

747,378



3. Finance costs 




Bank Service charges

53,568

1,505

Interest expense

52,459

12,888

Total

106,027

14,393



4. Income taxes


The Company, WBIL and WBPL are companies incorporated and registered in tax-free jurisdictions, thus there are no tax implications. WPPIPL and WEPL are incorporated and registered in India and subject to the Indian Income Tax Act, 1961.


Current tax expense is recognized on the income chargeable to tax. 

The components of the tax expense are as follows
                                                                                                      
              31st March 


2008

2007


$

$

Current tax expense

15,266

3,746

Deferred tax expense on origination and reversal of temporary differences

5,107,394

-


5,122,660

3,746 


The current tax expense comprises of income tax.


Reconciliation between the tax expense of WPPIPL, WEPL and the product of the accounting profit multiplied by the their domestic tax rate for the year ended 31st March 2008 and 2007 are as follows:



 

31st March 2008

31st March 2007

 

$

$

Accounting profit before tax

   14,423,821


   (99,844)

Less: Adjustments in respect of entities in tax free jurisdiction

(239,204)

(37,143)

Accounting profit/ (loss) for entities in taxable jurisdiction

14,663,025

(136,987)

Average statutory tax rate

33.99%

33.66%

Tax at the statutory income tax rate

4,983,962

(46,110)




Non-deductible expenses

3,103

167,566

Tax free income- Dividend Income

(469,048)

(118,086)

Exchange rate difference

(11,618)

-

Loss carried forward

616,261

-

Effective income tax

5,122,660

3,746

Effective income tax rate

34.94%

-2.73%


The change in effective tax rate is due change in tax free and non tax income in the current year. The tax impact of loss carried forward is based on business loss of $ 932485 which can be carried forward for a period of 8 years and unabsorbed depreciation of $ 880,579 which can be carried forward indefinitely.



5. Property, plant and equipment



Office equipment

Office furniture

Computers

Vehicles

Plant & Machinery

Capital work in progress *

Total


$

$

$

$

$

$

$

Cost or Valuation:








At 1st April 2006

1,298

-

7,119

-

-

954,178

962,595

Additions 

20,495

2,168

7,669

-

-

5,771,699

5,802,031

Disposals

-

-

-

-

-

-

-

Depreciation charge for the year

(3,254)

(1,825)

(2,502)

-

-

-

(7,581)

Exchange difference on conversion

753

15

407

-

-

280,245

281,420

As at 31st March 2007

19,292

358

12,693

-

-

7,006,122

7,038,465











At 1st April 2007

19,292

358

12,693

-

-

7,006,122

7,038,465

Additions 

4,537

7,682

42,260

25,443

447

795,980

876,349

Disposals

-

-

(2,735)

-

-

-

(2,735)

Depreciation charge for the period

(3,060)

(3,323)

(8,330)

(3,245)

(84)

-

(18,043)

Exchange difference on conversion

1,726

73

1,217

214

3

75,399

78,633

As at 31st March 2008

22,495

4,790

45,105

22,412

366

7,877,501

7,972,670



6. Investment Property


     The Lower Ground Floor & Ground Floor of the shopping centre at Kalyan have been valued for 
     $ 29,624,060 by the independent valuation done by Cushman & Wakefield (
India) Private Ltd as of 
     July 08.


Investment properties are carried at the Directors' determination of fair value based on annual independent valuations where appropriate. This is determined by the investment's original acquisition cost together with capital expenditure since acquisition or latest full independent valuation or latest independent update. Total acquisition costs include incidental costs of acquisition such as property taxes on acquisition.


A full independent valuation of a shopping centre is conducted at least once every three years and confirmed annually. Independent valuations are conducted in accordance with RICS Appraisal and Valuation Standards.



7. Other financial assets (non-current)


 

  As at 31st
  March  2008

As at 31st  March

2007


$

$

Deposit for office premises

103,759

41,943

Deposit for electricity

 99,228

63,586

Deposit for water

 2,573

-

Other deposits

32,488

2,026

Total

238,048

107,555








8. Held-for-trading investments


  As at 31st  March 2008

As at 31st  March 2007


$

$

Investment in Fixed Maturity Plans of Mutual funds

9,533,655

1,309,840

Investment in Floating Maturity Plans of Mutual funds

-

   

  23,109,245

Investment in Liquid Plus Plans of Mutual funds

3,129,498 

  -




Total

12,663,153 

  24,419,085  




  9. Other Receivables

            


  As at 31st March  2008

As at 31st  March 

2007

Advances to suppliers

 -

806

Other advances

202,639

183,359

Total

202,639

184,165



10. Prepayments



31st March 
2008

31st March 2007

Non- Current



Prepayments

26,771,006

6,701,417

Payments to related party

  -

64,615

Total

26,771,006

6,766,032




Current



Prepayments

44,312

43,365

Total

44,312

43,365

Grand Total

26,815,318

6,049,728


Prepayments consist of lease payments made for land under operating leases.


11. Cash and cash equivalents                



  As at 31st March  2008

As at 31st March

2007

 Bank balances

1,772,849

  779,473

 Short term deposits

11,547,889

7,053,542

Total

13,320,738

7,833,015



12. Issued capital and reserves                


12.1. Issued capital:


Equity Share Capital


Number

Amount ($)

Issued and fully paid up capital:



At 31st March 2006

20,100

4,534




Issued on 5th September 2006 and fully paid

1

10

Split of Face Value from $10 to $ 0.10 on 21st November 2006

100

-

Issued on 21st November 2006 and fully paid

49,999,900

4,999,990

At 31st March 2007

75,020,101

7,504,534


Issued on 25th July 2007

4,961,298

496,130

At 31st March 2008

79,981,399

8,000,664


The Company has no authorized share capital but is authorized to issue 1,000,000,000 ordinary shares with a par value of $ 0.10 of a single class with a single series.



12.2. Share premium:


Number

Amount ($)

At 1st April 2006


-

Received on issue of share capital on 13th December 2006

Less: Share issue expenses

25,000,000

37,500,000

(2,974,812)

At 31st March 2007


Received on issue of shares on 25th July 2007

Less: Share issue expenses

At 31st March 2008



4,961,298

34,525,188


11,596,736

    (404,054)

45,717,870





12.3 Foreign currency translation:


At 1st April 2006                                                (6)

During the period                                     650,138

At 31st March, 2007                                 650,132


At 1st April 2007                                       650,132

During the period                                  2,920,942

At 31st March 2008                               3,571,074



The foreign currency translation reserve is used to record exchange difference arising from translation of the financial statements of WPPIPL and WEPL, the foreign subsidiaries.



13. Interest bearing loans and borrowings





At 31st  March  

At 31st  March 

Particulars

Effective

Maturity

2008

2007


interest rate%


$

$






Current:







State Bank of India

1% below the State Bank Average Rate

June 2008

2,130,326

-

Total



2,130,326

-






Non-Current:







State Bank of India

1% below the State Bank Average Rate

March 2014

9,899,749


2,532,228


Less: Upfront loan processing fee (amortized)



(59,719)

(63,629)

Total



9,840,030

2,468,599

Grand Total



11,970,356

2,468,599


Terms and conditions of loans and borrowings:


State Bank of India


The total loan sanctioned by the Bank amounts to $12,781,955 is repayable in 24 quarterly installments of $ 532,581 starting from June 2008 till March 2014. Of the total, $ 12,030,075 has been withdrawn  and is outstanding as at 31st March 2008. The rate of interest payable on the loan is 1% below the State Bank Average Rate, with a minimum of 9.75% p.a. at monthly rests. As at 31st March 2008 the rate of interest was 11.25%. The loan is secured by a first charge on all the property, plant and equipment at Kalyan Project, which is under construction (Refer note 11).



14. Trade and other payables

        

       

    

  As at 31st March  2008

As at 31st  March

2007


$

$

 Trade payables 

1,628,929

288,742

 Other payables 

5,056,636

487,784


6,685,565

776,526

 

 

                                                                             -Ends-



This information is provided by RNS
The company news service from the London Stock Exchange
 
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