REG - iEnergizer Limited - INTERIM RESULTS
11/11/2021 07:00
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RNS Number : 9911R iEnergizer Limited 11 November 2021
11 November 2021
iEnergizer Limited
("iEnergizer", the "Company" or the "Group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
iEnergizer, the technology services and media solutions leader for the digital
age, reports another record set of interim results for the six months ended
September 30, 2021. The Board declares an increased interim dividend of 8.12p,
reflecting the increase in earnings and confidence in the growth strategy and
outlook for the Full Year.
Financial Highlights: Highly profitable revenue growth and sustained margin
improvements, achieved through securing new customer contracts and deepening
existing customer relationships along with careful and active cost management
· Revenue up 35.1% to $121.9m (H1 2021: $90.2m),
Service Revenue up 36.8%
· EBITDA up by $13.7m to $44.4m (H1 2021: $30.7m), resulting in
EBITDA margin of 36.4% (H1 2021: 34.1%)
· Operating profit increased to $42.0m (H1 2021: $27.9m), resulting in
operating profit margin of 34.5% (H1 2021: 30.9%)
· Profit before tax increased to $37.9m (H1 2021: $26.9m)
· Profit after tax increased to $34.3m (H1 2021: $23.5m)
· Net Debt of $111.3m (31 March 2021: $115.9m)
· Declared
Interim dividend of 8.12p per ordinary share ($21.0m) (H1 2021: 5.72p)
Operational Highlights: Continued focus on higher margin work and success in
business growth from new and existing customers
· Business Process Outsource ("BPO"):
o Strong
service revenue growth of 51.9% to $83.5m in H1 2022 (H1 2021:$54.9m), due to
an increase in business from new and
existing clients. EBITDA margin grew to 40.2% at $33.7m
(H1 2021: 37.3% at $20.8m), as business
from higher margin- generating international verticals increased.
o Secured a multimillion dollar contract from a major telecom service
provider to be serviced over a 3-year period.
o BPO's delivery of superior quality delivery and competitive pricing
provided an edge over the competition.
o BPO's outsized exposure to fast-growing markets of media and
entertainment, BFSI and telecommunications is expected to result in steady and
strong revenue growth going forward.
· Content Division:
o
Service revenue growth by 12.1% to $37.8m in H1 2022 (H1 2021: $33.7m), as business
from key clients increased. EBITDA margins maintained over 28% at $10.7m (H1
2021: $9.9m) owing to greater productivity and overhead-related cost savings
during continued work from home operations.
o Focused sales efforts on increasing the revenue share from the high
margin work areas of E-Learning and Online Education and the
SaaS product line of "Scipris".
o Increased revenue share from both Publishing as well as Non-Publishing
segments.
· New business initiatives:
o Scalability, breadth of services and a highly trained workforce allows
iEnergizer to take advantage
of industry tailwinds in highly profitable verticals.
o Acquisition of the several new customers, as well as launching of new
service lines.
• Won a multimillion dollar contract to be serviced over a 3-year
period through participation in a global RFP process of a major international
telecom provider, which is expected to contribute to revenue growth starting
H2 2022 onwards.
• Launched a new service line of "work-person compensation support"
under health care services for a new customer acquired during H1 2022.
• For another new customer, a new business line for cargo support
was launched during H1 2022.
o Our award-winning performance in E-Learning, and the growth of our online
training and education segments during the pandemic, is expected to continue
as major corporate businesses have identified the cost and time savings of
replacing classroom training with virtual training.
o US based sales team continues to focus on selling additional services,
specifically in the online learning market, which is expected to grow
significantly due to new opportunities presented by remote education and
operating systems, while working on its strategic priorities: to enhance and
grow key accounts; to identify and win new business through new customers; as
well as to target our existing accounts; and to cross-sell and generate leads
for new product launches.
· Cost management:
o Continued to manage increased proportion of division-specific higher
margin international work, particularly in non- voice-based processes
including: entertainment gaming support; BFSI; content technology; and
E-Learning.
o Achieved cost savings through effective use of resources and productivity
improvements in balancing home and office working operations.
· COVID-19
o The business is operating effectively while supporting the requirements of
customers and staff; the operational employees are well equipped to work
remotely and from the office as per project requirements, and following
government and local authority safety guidelines.
· Interim Dividend:
o In line with the progressive dividend policy, the Company is pleased to
announce an interim dividend of 8.12p with the dividend record date of 26
November, 2021. This interim dividend reflects the Board’s confidence in the
Group’s business plan and growth prospects.
o The Company’s ordinary shares are expected to go ex-dividend on 25
November, 2021 and the interim dividend is expected to be paid on 20 December,
2021.
Marc Vassanelli, Chairman of iEnergizer, commented:
“We are delighted to report another strong performance by iEnergizer, with
highly profitable growth in revenue and profit margins, which exceeded our
expectations for H1 2022. This has been driven by our colleagues’ continued
efforts in deepening existing customer relationships and attracting several
new customers for our new service lines, combined with careful and active cost
management.
“Reflecting the Group’s strong balance sheet and the cash generative
nature of the business, we are pleased to announce an interim dividend of
8.12p, in continuation with our approach since H1 2020.
“As the world recovers from the COVID-19 pandemic and the guidelines are
relaxed, we are now well equipped to ensure that we meet all needs and
requirements of customers, while supporting our staff to work safely either
from office or remotely as per government guidelines, to serve customers at
maximum capacity and efficiency across all our services.
“With iEnergizer’s solid foundations; its proven strength in operational
execution and healthy balance sheet; our differentiated offerings, successful
new sales initiatives, and substantial opportunities for further growth
identified, we expect a sustained business performance. The Board looks
forward to the remainder of the year with confidence.”
-Ends-
iEnergizer Ltd. +44 (0)1481 242233
Chris de Putron
Mark De La Rue
FTI Consulting - Communications Adviser +44 (0)20 3727 1000
James Styles / Eleanor Purdon
Arden Partners - Nominated adviser and Broker +44 (0)20 7614 5900
Steve Douglas / Antonio Bossi (Corporate Finance)
James Reed-Daunter (Equity Sales)
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 2021 and 2020
Unaudited Condensed Consolidated Statements of Financial Position
(All amounts in United States Dollars, unless otherwise stated)
Notes As at As at
30 September 2021 31 March 2021
Unaudited Audited
ASSETS
Non-current
Goodwill 5 102,248,945 102,250,365
Other intangible assets 6 12,650,967 12,573,227
Right to use 10 12,541,724 4,719,671
Property, plant and equipment 7 5,693,505 6,608,441
Long- term financial asset 5,551,278 3,311,739
Non-current tax assets 84,485 262,166
Deferred tax asset 3,542,430 3,469,843
Other non current assets 306,706 23,909
Non-current assets 142,620,040 133,219,361
Current
Trade and other receivables 39,179,674 33,893,763
Cash and cash equivalents 46,662,641 51,378,899
Short- term financial assets 8 18,452,085 16,281,924
Other current assets 8,141,800 3,562,881
Current assets 112,436,200 105,117,467
Total assets 255,056,240 238,336,828
EQUITY AND LIABILITIES
Equity
Share capital 3,776,175 3,776,175
Share compensation reserve 63,986 63,986
Additional paid in capital 15,451,809 15,451,809
Merger reserve (1,049,386) (1,049,386)
Retained earnings 38,531,629 26,482,815
Other components of equity (16,044,453) (15,136,936)
Total equity attributable to equity holders of the parent 40,729,760 29,588,463
Notes As at As at
30 September 2021 31 March 2021
Unaudited Audited
Liabilities
Non-current
Long term borrowings 147,709,597 142,905,717
Employee benefit obligations 4,509,482 4,708,447
Deferred tax liability 8,823,414 8,929,659
Non-current liabilities 161,042,493 156,543,823
Current
Trade and other payables 17,212,896 12,929,316
Employee benefit obligations 1,520,140 959,887
Current tax liabilities 805,386 393,028
Current portion of long term borrowings 10,211,363 24,403,033
Other current liabilities 23,534,202 13,519,278
Current liabilities 53,283,987 52,204,542
Total equity and liabilities 255,056,240 238,336,828
(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)
(The accompanying notes are an integral part of these Unaudited Condensed
Consolidated Interim Financial Statements)
Notes For the six months For the six months ended
ended
30 September 2021 30 September 2020
Unaudited Unaudited
Income from operations
Revenue from services 121,284,962 88,675,643
Other operating income 1,271,458 1,070,303
122,556,420 89,745,946
Cost and expenses
Outsourced service cost 19,831,122 17,960,207
Employee benefits expense 48,194,012 34,138,255
Depreciation and amortisation 3,011,227 2,343,227
Other expenses 9,482,318 7,391,648
80,518,679 61,833,337
Operating profit 42,037,741 27,912,609
Finance income 453,702 590,691
Finance cost (4,555,815) (1,603,155)
Profit before tax 37,935,628 26,900,145
Income tax expense 3,612,806 3,363,846
Profit for the year attributable to equity holders of the parent 34,322,822 23,536,299
Earnings per share 9
Basic 0.18 0.12
Diluted 0.18 0.12
Par value of each share in GBP 0.01 0.01
Unaudited Condensed Consolidated Statements of Other Comprehensive Income
(All amounts in United States Dollars, unless otherwise stated)
For the period For the six months ended
ended
30 September 2021 30 September 2020
Unaudited Unaudited
Profit after tax for the year 34,322,822 23,536,299
Other comprehensive income
Items that will be reclassified subsequently to the consolidated income
statement
Exchange differences on translating foreign operations (907,517) 728,954
Net other comprehensive (loss) that will be reclassified subsequently to (907,517) 728,954
consolidated income statement
Items that will not be reclassified subsequently to income statement
Remeasurement of the net defined benefit liability - -
Income tax relating to items that will not be reclassified - -
Net other comprehensive income that will be not be reclassified subsequently - -
to consolidated income statement
Other comprehensive income/(loss) for the year (907,517) 728,954
Total comprehensive income attributable to equity holders 33,415,305 24,265,253
(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 Retained earnings Total equity
Equity
Foreign currency translation reserve Net defined benefit Liability
Balance as at 1 April 2020 3,776,175 15,451,809 63,986 (1,049,386) (18,007,911) 687,630 139,677,678 140,599,981
Dividends - - - - - - (162,131,146) (162,131,146)
Transaction with owners - - - - - - (162,131,146) (162,131,146)
Profit for the year - - - - - - 48,936,28 48,936,283
Other comprehensive gain - - - - 2,141,313 42,032 - 2,183,345
Total comprehensive income for the period - - - - 2,141,313 42,032 48,936,283 51,119,628
Balance as at 31 March 2021 3,776,175 15,451,809 63,986 (1,049,386) (15,866,598) 729,662 26,482,815 29,588,463
(The accompanying notes are an integral part of the Consolidated Financial
Statements)
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 2021 3,776,175 15,451,809 63,986 (1,049,386) (15,866,598) 729,662 26,482,815 29,588,463
Dividends - - - - - - (22,274,007) (22,274,007)
Transaction with owners - - - - - - (22,274,007) (22,274,007)
Profit for the year - - - - - - 34,322,822 34,322,822
Other comprehensive loss - - - - (907,517) - - (907,517)
Total comprehensive income for the period
- - - - (907,517) - 34,322,822 33,415,305
Balance as at 30 September 2021 3,776,175 15,451,809 63,986 (1,049,386) (16,774,115) 729,662 38,531,629 40,729,760
(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 period For the six months ended
ended
30 September 2021 30 September 2020
(A) Cash flow from operating activities
Profit before tax 37,935,627 26,900,145
Adjustments
Depreciation and amortisation 3,011,227 2,343,227
Loss/(Profit) on disposal of property, plant and equipment (8,258) (2,064)
Trade receivables written-off/provision for doubtful debts 602,061 1,089,700
Sundry balances written back (235) (2,750)
Unrealised foreign exchange gain (1,040,091) (651,277)
Finance income (453,702) (590,691)
Finance cost 3,868,829 1,521,027
Interest cost on lease liability 412,167 82,128
Other borrowing cost at amortised cost 274,819 -
44,602,444 30,689,445
Changes in operating assets and liabilities
(Increase)/ Decrease in trade and other receivables (3,941,087) (484,556)
(Increase)/ Decrease in other assets (current and non-current) (4,326,912) 2,081,433
Increase / (Decrease) Non-current liabilities, trade payables & other 11,624,169 (1,304,119)
current liabilities
(Decrease)/ Increase in employee benefit obligations 293,709 (9,053)
Cash generated from operations 48,252,322 30,973,150
Income taxes paid (3,201,599) (1,158,820)
Net cash generated from operating activities 45,050,724 29,814,330
(B) Cash flow for investing activities
Payments for purchase of property plant and equipment (997,864) (256,175)
Investment in fixed deposit (Net) (3,989,362) (3,256,262)
Proceeds from disposal of property, plant & equipment 260,853 2,258
Payments for purchase of other intangible assets (441,725) (505,703)
Interest received 494,126 585,282
Net cash used in investing activities (4,673,972) (3,430,600)
For the period For the six months ended
ended
30 September 2021 30 September 2020
(C ) Cash flow from financing activities
Interest paid (3,868,829) (1,603,155)
Dividends paid to equity holders of the parent (22,274,007) (20,374,113)
Repayment of borowings and lease liability (19,046,499) (5,179,793)
Net cash used in financing activities (45,189,336) (27,157,061)
Net increase/(decrease) in cash and cash equivalents (4,812,584) (773,331)
Cash and cash equivalents at the beginning of the year 51,378,899 45,147,784
Effect of exchange rate changes on cash 96,326 (166,022)
Cash and cash equivalents at the end of the year 46,662,641 44,208,431
Cash and cash equivalents comprise
Cash in hand 7,740 13,801
Balances with banks in current account 42,917,962 44,194,630
Remittance in transit 3,736,939 -
46,662,641 44,208,431
(The accompanying notes are an integral part of these Consolidated Financial
Statements)
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(All amounts in United States Dollars, unless otherwise stated)
1. INTRODUCTION
iEnergizer Limited (the 'Company' or 'iEnergizer ') was incorporated in
Guernsey on 12 May 2010.
iEnergizer Limited is a 'Company limited by shares' and is domiciled in
Guernsey. The registered office of the Company is located at Mont Crevelt
House, Bulwer Avenue, St. Sampson, Guernsey, GY2 4 LH. iEnergizer was listed
on the Alternative Investment Market ('AIM') of London Stock Exchange on 14
September 2010.
iEnergizer through its subsidiaries iEnergizer Holdings Limited, iEnergizer IT
Services Private Limited, iEnergizer Management Services Limited, iEnergizer
BPO Limited, iEnergizer BPO Inc, iEnergizer Aptara Limited and Aptara Inc and
subsidiaries. (together the 'Group') is engaged in the business of call centre
operations, providing business process outsource (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 2021 and 2020. 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 2021 and 2020.
The Unaudited Condensed Consolidated Interim Financial Statements have 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 2021. ( )
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 2021 and 2020.
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 2021.
5. GOODWILL
The net carrying amount of goodwill can be analysed as follows:
Particulars Amount
Balance as at 1 April 2020 102,248,030
Impairment loss recognized -
Translation adjustment 2,335
Balance as at 31 March 2021 102,250,365
Particulars Amount
Balance as at 01 April 2021 102,250,365
Translation adjustment (1,420)
Balance as at 30 September 2021 102,248,945
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 1 April 2020 24,103,157 4,179,481 100,000 12,000,000 132,490 40,515,128
Additions - 706,210 - - - 706,210
Disposals - - - - - -
Translation adjustment 2,612 83,645 - - - 86,257
Balance as at 31 March 2021 24,105,769 4,969,336 100,000 12,000,000 132,490 41,307,595
Accumulated amortisation
Balance as at 1 April 2020 24,103,157 3,722,162 - - - 27,825,319
Amortisation for the period - 694,385 - - - 694,385
Disposals - - - - - -
Translation adjustment 2,612 79,562 - - - 82,174
Balance as at 31 March 2021 24,105,769 4,496,109 - - - 28,601,878
Impairment
Balance as at 1 April 2020 - - - - 132,490 132,490
Impairment for the period - - - - - -
Disposals - - - - - -
Translation adjustment - - - - - -
Balance as at 31 March 2020 - - - - 132,490 132,490
Carrying values as at 31 March 2021 - 473,227 100,000 12,000,000 - 12,573,227
Particulars Customer contracts Computer softwares Patent Trade mark Intangibles under development Total
Cost
Balance as at 01 April 2021 24,105,769 4,969,336 100,000 12,000,000 41,307,595
132,490
Additions - 363,870 - - 214,308 578,178
Disposals - - - - (268,943) (268,943)
Translation adjustment (1,589) (57,775) - - (2,634) (61,998)
Balance as at 30 September 2021 24,104,180 5,275,431 100,000 12,000,000 41,554,832
75,221
Accumulated amortisation
Balance as at 01 April 2021 24,105,769 4,496,109 - - 28,734,368
132,490
Amortisation/impairment for the period - - - 356,113
356,113 -
Disposals - - -
- (132,490) (132,490)
Translation adjustment (1,589) (52,537) - - (54,126)
-
Balance as at 30 September 2021 24,104,180 - - - 28,903,865
4,799,685
Carrying values as at 30 September 2021 - 100,000 12,000,000 12,650,967
475,746 75,221
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 improve-ments Plant and machinery Capital work in progress Total
Cost
Balance as at 01 April 2020 10,104,372 1,062,619 1,366,518 883,948 396,132 4,535,609 2,274,010 331,221 20,954,429
Additions 2,011,543 65,076 21,965 48,436 - 198,516 121,393 - 2,466,929
Disposals (Net)/ transfer (256,417) (129) - - - - (21,213) (123,247) (401,006)
Translation and other adjustment 246,417 20,509 25,986 18,089 8,173 91,939 42,077 6,333 459,523
Balance as at 31 March 2021 12,105,915 1,148,075 1,414,469 950,473 404,305 4,826,064 2,416,267 214,307 23,479,875
Balance as at 01 April 2020 6,599,071 788,026 1,028,580 352,071 43,674 3,087,226 1,913,081 - 13,811,729
Depreciation for the period 2,036,286 76,359 91,142 108,634 49,068 491,560 126,306 - 2,979,355
Disposals (Net) (199,976) (129) - - - - (21,213) - (221,318)
Translation and other adjustments 153,256 15,229 19,894 8,483 1,452 67,231 36,123 - 301,668
Balance as at 31 March 2021 8,588,637 879,485 1,139,616 469,188 94,194 3,646,017 2,054,297 - 16,871,434
Carrying values as at 31 March 2021 3,517,278 268,590 274,853 481,285 310,111 1,180,047 361,970 214,307 6,608,441
Particulars Computer and data equipment Office Equipment Furniture and fixtures Air conditioner and generator Vehicle Leasehold improvements Plant and machinery Capital work in progress Total
Cost
Balance as at 01 April 2021 12,105,915 1,148,075 1,414,469 950,473 404,305 4,826,064 2,416,267 214,307 23,479,875
Additions 825,764 24,697 1,383 - - 48,076 63,783 34,162 997,865
Disposals/Transfer (Net) (32,775) - - - (6,072) - (21,825) (214,307) (274,979)
Translation and other adjustment (144,504) (13,024) (15,976) (11,687) (4,971) (58,417) (26,826) (140) (275,545)
Balance as at 30 September 2021 12,754,400 1,159,748 1,399,876 938,786 393,262 4,815,723 2,431,399 34,022 23,927,216
Accumulated depreciation
Balance as at 01 April 2021 8,588,637 879,487 1,139,616 469,187 94,194 3,646,016 2,054,298 - 16,871,435
Depreciation for the period 1,102,018 41,743 36,816 51,081 24,283 271,378 60,579 - 1,587,898
Disposals (Net) (3,614) - - - (5,561) - (13,209) - (22,384)
Translation and other adjustments (106,838) (9,834) (12,709) (5,979) (1,258) (44,133) (22,487) - (203,238)
Balance as at 30 September 2021 9,580,203 911,396 1,163,723 514,289 111,658 3,873,261 2,079,181 - 18,233,711
Carrying values as at 30 September 2021 3,174,197 248,352 236,153 424,497 281,604 942,462 352,218 34,022 5,693,505
8. SHORT TERM FINANCIAL ASSETS
Particulars 30 September 2021 31 March 2021
Security deposits 28,386 30,767
Restricted cash 6,760,589 6,444,738
Short term investments (fixed deposits with maturity less than 12 months) 11,315,077 9,550,799
Derivative financial instruments 281,076 151,913
Due from officers and employees 42,010 38,336
Others 24,947 65,371
18,452,085 16,281,924
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 2021 is as follows:
Basic earnings per share
Particulars 30 September 2021 30 September 2020
Profit attributable to shareholders 34,322,822 23,536,299
Weighted average numbers shares outstanding 190,130,008 190,130,008
Basic earnings per share (US$) 0.18 0.12
Diluted earnings per share
Particulars 30 September 2021 30 September 2020
Profit attributable to shareholders 34,322,822 23,536,299
Weighted average numbers shares outstanding 190,130,008 190,130,008
Diluted earnings per share (US$) 0.18 0.12
10. LEASES
(a) Lease liabilities are presented in the statement of financial position as
follows:
Particulars 30 September 2021 31 March 2021
Current 2,230,659 1,424,940
Non-current 10,892,004 3,766,759
13,122,663 5,191,699
(b) The following are amounts recognised in consolidated income statement:
Particulars 30 September 2021 31 March 2021
Depreciation expenses of right-of-use 1,067,216 1,484,349
Interest Expense on the Lease Liability
Interest expense on lease liability 412,167 529,756
Rent expenses* 96,680 7,167
Common area maintenance expenses 28,193 165,386
Total 1,604,256 2,186,658
*Rent expense in respect of Short Term Lease
(c) Right to use of assets as at 31 March 2021:
Particulars Leased premises
Gross block
Balance as at 1 April 2020 6,696,491
Additions during the year 1,009,919
Disposal (306,301)
Translation adjustment 117,353
Gross block as at 31 March 2021 7,517,462
Accumulated depreciation
Balance as at 1 April 2020 1,393,220
Depreciation for the period 1,484,349
Disposal (112,393)
Translation adjustment 32,615
Accumulated depreciation as at 31 March 2021 2,797,791
Net block as at 31 March 2021 4,719,671
Particulars Leased premises
Gross block as at 1 April 2021 7,517,462
Additions during the year 8,971,723
Translation adjustment (110,590)
Gross block as at 30 September 2021 16,378,595
Accumulated depreciation
Balance as at 1 April 2021 2,797,791
Depreciation for the period 1,067,216
Translation adjustment (28,136)
Accumulated depreciation as at 30 September 2021 3,836,871
Net block as at 30 September 2021 12,541,724
(d) The maturity analysis of the lease liabilities as of 30 September 2021,
is as follows:
Payments falling due Gross future minimum lease payments
30 September 2021 31 March 2021
Within 1 year 3,246,786 1,870,956
Later than 1 year but less than 5 years 8,385,746 3,670,800
More than 5 years 6,450,030 1,508,367
18,082,562 7,050,123
11. 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 Aggarwal
II. Entities directly or indirectly through one or more intermediaries,
control, are controlled by, or are under common control with, the reported
enterprises EICR (Cyprus) Limited (Parent of iEnergizer Limited)
III. Key management personnel ("KMP") and significant shareholders Mr. Anil Aggarwal (Ultimate Shareholder, EICR Limited)
Mr. Chris de Putron (Director, iEnergizer Limited)
Mr. Mark De La Rue (Director, iEnergizer Limited)
Mr. Marc Vassanelli (Director, iEnergizer Limited)
Mr. Ashish Madan (Director, iEnergizer Limited)
Disclosure of transactions between the Group and related parties and the
outstanding balances is as under:
Transactions with KMP and relative of KMP
Particulars 30 September 2021 30 September 2020
Transactions during the period ended
Short term employee benefits
Remuneration paid to directors
Chris de Putron 6,912 6,300
Mark De La Rue 6,912 6,300
Marc Vassanelli 20,736 18,899
Balances at the end of
Total remuneration payable 189,509 147,741
12. SEGMENT REPORTING
Management currently identifies the Group's two service lines business process
outsource and content delivery as operating segments on the basis of
operations. These operating segments are monitored and operating and strategic
decisions are made on the basis of operating segment 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. Business Process Outsource
2. Content delivery
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. Segment information can
be analysed as follows for the reporting periods under review:
30 September 2021
Business Process Outsource Content delivery Total
Revenue from external customers 83,455,893 37,829,069 121,284,962
Other income (including realised foreign exchange gain) 429,851 184,825 614,676
Segment revenue 83,885,744 38,013,894 121,899,638
Cost of outsourced Services 15,079,693 4,751,429 19,831,122
Employee benefit expense 27,730,594 20,463,418 48,194,012
Other expenses 7,382,280 2,100,038 9,482,318
Earning before interest, tax, depreciation and amortisation 33,693,177 10,699,009 44,392,186
Rent adjustment as per IFRS 16 740,113 623,451 1,363,564
Earning before interest, tax, depreciation and amortisation (before rent 32,953,064 10,075,558 43,028,622
adjustment)
Unrealized Foreign Exchange gain/(loss) 183,355 473,427 656,782
Depreciation and amortisation (1,758,797) (1,252,430) (3,011,227)
Rent adjustment as per IFRS 16 740,113 623,451 1,363,564
Segment operating profit 32,117,735 9,920,006 42,037,741
Other Income/expense :
Finance income 291,848 161,854 453,702
Finance costs (2,707,467) (1,848,348) (4,555,815)
Profit before tax 29,702,116 8,233,512 37,935,628
Income tax expense (2,042,704) (1,570,102) (3,612,806)
Profit after tax 27,659,412 6,663,410 34,322,822
Segment assets 86,219,900 168,836,340 255,056,240
Segment liabilities 180,567,985 33,758,495 214,326,480
Capital expenditure 9,218,733 1,329,033 10,547,766*
* Includes "Right of Use" Assets added and recorded worth $8,971,723/-
30 September 2020
Business Process Outsource Content delivery Total
Revenue from external customers 54,935,441 33,740,202 88,675,643
Other income (including realised foreign exchange gain) 934,741 135,563 1,070,304
Realized Foreign Exchange gain/(loss) (23,942) 497,113 473,171
Segment revenue 55,846,240 34,372,878 90,219,118
Cost of outsourced Services 13,537,655 4,422,552 17,960,207
Employee benefit expense 15,971,568 18,166,687 34,138,255
Other expenses 5,513,055 1,878,593 7,391,648
Earning before interest, tax, depreciation and amortization 20,823,961 9,905,046 30,729,007
Rent adjustment as per IFRS 16 321,533 568,176 889,709
Earning before interest, tax, depreciation and amortisation (before rent 20,502,428 9,336,870 29,839,298
adjustment)
Unrealized Foreign Exchange gain/(loss) 23,942 (497,113) (473,171)
Depreciation and amortisation (1,186,847) (1,156,380) (2,343,227)
Rent adjustment as per IFRS 16 321,533 568,176 889,709
Segment operating profit 19,661,056 8,251,553 27,912,609
Other Income/expense :
Finance income 433,615 157,076 590,691
Finance costs (258,483) (1,344,672) (1,603,155)
Profit before tax 19,836,189 7,063,957 26,900,146
Income tax expense (2,145,367) (1,218,479) (3,363,846)
Profit after tax 17,690,822 5,845,478 23,536,300
Segment assets 72,950,460 153,230,400 226,180,860
Segment liabilities 22,136,831 59,441,566 81,578,397
Capital expenditure 692,921 339,037 1,031,958**
** Includes "Right of Use" Assets added and recorded worth $270,081/-
Revenue from the following customer's amounts to more than 10% of consolidated
revenue during the period presented.
30 September 2021
Revenue from Segment Amount
Customer 1 Business Process Outsource 23,630,750
30 September 2020
Revenue from Segment Amount
Customer 1 Business Process Outsource 12,959,751
13. 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 2021 31 March 2021
Non-current assets
Loans and receivables
Security deposits 1,017,228 686,922
Restricted cash 1,849,618 1,398,071
Fixed deposit 2,684,432 1,226,746
Current assets
Loans and receivables
Trade receivables 39,179,674 33,893,763
Cash and cash equivalents 46,662,641 51,378,899
Restricted cash 6,760,589 6,444,738
Security deposits 28,386 30,767
Fixed deposits with banks 11,315,077 9,550,799
Due from officers and employees 42,010 38,336
Interest accrued on fixed deposit 24,947 65,371
Fair value through profit and loss:
Derivative financial instruments 281,076 151,913
109,845,678 104,866,325
Financial liabilities 30 September 2021 31 March 2021
Non-current liabilities
Financial liabilities measured at amortized cost:
Long term borrowings 147,709,597 142,905,717
Current liabilities
Financial liabilities measured at amortized cost:
Trade payables 17,212,896 12,929,316
Current portion of long term borrowings 10,211,363 24,403,033
Other current liabilities 23,534,202 13,519,278
198,668,058 193,757,344
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.
14. 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 2021 Total Fair value measurements at reporting date using
Level 2
Liabilities (Notional amount)
Derivative instruments
Forward contracts (currency - US$/INR) 34,950,000 281,076
31 March 2021 Total Fair value measurements at reporting date using
Level 2
Assets (Notional amount)
Derivative instruments
Forward contracts (currency - US$/INR) 22,900,000 151,913
15. COMMITMENT AND CONTINGENCIES
As at 30 September 2021 and 31 March 2021, the Group had a capital commitment
of US$ 1,755,652 and US$ 344,537 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 US$ 103,568 and US$ 77,886 as on 30
September 2021 and 31 March 2021 respectively and in respect of interest on
VAT amounts to US$ 9,423 as on 30 September 2021 (US$ 9,540 as on 31 March
2021).
Guarantees: As at 30 September 2021 and 31 March 2021, guarantees provided by
banks on behalf of the group companies to the revenue authorities and certain
other agencies, amount to approximately US$ 36,952 and US$ 36,412
respectively.
16. 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 2021 and 2020.
17. 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 2021 and 2020.
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