TIDMWPR
RNS Number : 0840U
West Pioneer Properties Limited
21 December 2012
Press Release 21 December 2012
West Pioneer Properties Limited
("West Pioneer" or the "Company")
Unaudited Interim Results
West Pioneer Properties Limited (AIM:WPR), a leading developer
and operator of shopping malls and mixed use developments in west
and south India, announces its unaudited interim results for the 6
months ended 30 September 2012.
Highlights
-- Major boost to Indian retail sector as Foreign Direct
Investment ("FDI") in multi-brand retail approved by Parliament
on 7 December 2012. This has improved confidence in the
retail sector
-- Steady progress being made in the Company's commercial
and residential development projects at Kalyan
-- Repositioning of the Kalyan Mall into a lifestyle/value
mall progressing well but has led to a short term fall
in rental income over the period
-- The Company has successfully negotiated a new debt facility
of US$11.83 million to fund capital expenditure at the
Kalyan Mall, construction of commercial plaza, towers
3 and 4 at Kalyan and construction work at Aurangabad.
The facility will be drawn down in phases, as required,
over the next 1-2 years
-- 20% depreciation in average value of Indian Rupee against
the US Dollar for the period compared to the financial
year ended 31 March 2012, materially affecting the reported
profit
-- Balance sheet remains robust as a result of prudent cash
management with period end cash and cash equivalents of
US$0.97million, while maintaining good levels of ongoing
investment into inventory, together with an additional
US$11.42 million unutilised bank facilities in place
-- Development approvals at Nashik being pursued. Ground
break plans will be announced once approvals are available.
Commenting on the results, Amit Jatia, Chairman of West Pioneer,
said: "The period has been one of mixed news for the Company as its
retail operations have been affected, as envisaged, by the ongoing
re-engineering of the tenant mix in the Kalyan Mall. This is
reflected in the fall in rental income which is expected to
continue in the current financial year. However, once the
re-positioning is completed this is likely to result in a rise in
rental income.
"The Mall is therefore well placed to take advantage of
increased confidence in the retail sector following the approval by
Parliament of the relaxation of restrictions in Foreign Direct
Investment. Progress in the residential and commercial development
is continuing steadily and this should result in improved financial
performance for the Company in the near future.
"The results, particularly the income statement, have been
materially affected by depreciation in the value of Indian Rupee
against the US Dollar over the last year.
"Although moving at slower pace, we remain confident of the
intrinsic underlying values in the Aurangabad and Nashik
properties. The Company is confident of making further progress on
these sites in the future."
-Ends-
For further information:
West Pioneer Properties Limited
Nitin Dattani, Executive Director Tel: +44 (0) 20 8424
0690
Shore Capital:
Anita Ghanekar / Edward Mansfield Tel: +44 (0) 20 7408
4090
Media enquiries:
Abchurch Communications:
Joanne Shears Tel: +44 (0) 20 7398
7709
joanne.shears@abchurch-group.com www.abchurch-group.com
Chairman's Statement
Indian Economy
Challenges from sluggish economic growth and high inflation
continue with GDP expected to rise at 5.7% in the year to March
2013 and inflation currently running at 7.2%, well above the
Central Bank's target of 5%. Business confidence has been boosted
by recent steps taken by Central government allowing Foreign Direct
Investment ("FDI") in the retail, aviation and insurance sectors.
However, concerns in relation to rising levels of fiscal deficit
and risk of spill-over of global economic slowdown still loom over
the Indian economy.
Impact of depreciation of Rupee
The Indian Rupee has depreciated by around 20% against the US
Dollar from the average exchange rate for the financial year ended
31 March 2012compared to the accounting period in the six months to
30 September 2012. This has had a material impact the income
statement.
Retail
With the relaxation of FDI in multi-brand retail, retailers are
preparing to scale up their operations. Many prominent
international brands have expressed intentions to enter the Indian
retail market revalidating strength and attractiveness of this
largely unexploited industry. The policy aims to deploy FDI capital
in retail infrastructure and other auxiliary industries. In
addition to helping penetration of organised retail, this will also
provide impetus to overall economic growth.
Residential
This sector is growing steadily on both volume and price fronts.
In established markets, developers are producing luxury
developments with ultra modern amenities. As units are becoming
more expensive in established markets, further projects are being
launched in extended suburbs to meet the demand in middle and lower
segments. The outlook of the residential sector remains positive
with ample opportunities in various micro markets catering to
different income levels.
Financial Review
In the period ended 30 September 2012, West Pioneer achieved
revenue and other income of US$1.7million (2011: US$2.4million),
including property rentals and other operating income of
US$1.6million (2011: US$2.3million). Loss before tax was
US$(1.7million) (2011: US$(0.6) million) and basic loss per share
was US$(0.0191) (2011: Loss US$(0.0033)). Net assets at the period
end were US$55.4million (2011: US$61.1million), including cash and
short term deposits of US$1.0 million (2011: US$1.8 million).
Interest bearing loans and borrowings increased from US$10.0
million to US$10.2million during the period, inclusive of debt
repayments.
The Company has also continued to manage its working capital
carefully and after having invested US$2.9 million in increasing
its inventory, the Board is pleased to still be able to report
US$1.0 million of cash on its balance sheet.
Operating Review
Kalyan
The Company has been successful in implementing its retail-led
mixed use development model at Kalyan (the "Mall"). As a mixed use
development, West Pioneer has the benefit of direct access to
consumers through the residential and commercial projects, which in
turn offers valuable consumer insight and synergies for use in the
Mall itself. As previously announced, these insights have resulted
in the strategic focus for the Mall shifting to consumer value and
the successful positioning of the Mall as a value and lifestyle
destination.
Kalyan - Retail
Phase I of the 500,000 sq. ft. Mall includes a fully functional
food court and entertainment zone on the second floor, along with
other retail offerings on Lower Ground and Ground floors. The
repositioning exercise undertaken which is focused on establishing
the Mall as a leading value shopping and lifestyle destination is
in progress. This has led to a short term loss of income. Capital
and other expenditure is also being incurred as part of this
exercise which is aimed at improving the look and feel of the Mall
and upgrading infrastructure at the premises.
However, the Company is confident that on completion of this
exercise the Mall will provide enhanced opportunities to lifestyle
retailers, resulting in higher rentals and footfalls in the near
future, which is anticipated to have a positive effect on Mall
profitability.
Leasing levels at the Mall remained steady at 74% during the
period and the Company is currently in negotiation with a number of
other major brands to lease the remaining retail space.
Kalyan - Residential
The Company is pleased that the development of the first two
residential towers of Phase II at Kalyan is progressing well. The
first tower is nearing completion with final activities under way.
Completion of tower A is expected to be in the first quarter of
FY14. The profits from completion are therefore expected be
recognised in the September 2013 interim results. The second tower
development is on schedule and is currently completed to the 17th
floor. Response from customers remains encouraging with 89% of the
units pre-sold in these two towers.
Planning permissions for the fourth tower are in progress and
the launch will take place upon receipt of these planning
permissions. The third tower, which is already approved, will be
launched together with the fourth tower. The fourth tower will see
the total residential area being developed at Kalyan rising to over
810,000 sq. ft.
Kalyan - Commercial plaza
Significant progress has been made in Phase III of the
development, a commercial plaza ("Metro Plaza") of 68,000 sq. ft.
of office space with the building structure completed recently.
Work is progressing well and the development is expected to be
completed in the next few months. Metro Plaza will have small
commercial units for leasing on the ground floor and units for sale
on the first and second floors, with the target market being
self-employed professionals such as doctors, lawyers and
architects. The response to the development continues to be
encouraging with 40% of the space pre-sold at an estimated 50%
premium over current residential sale rates. This is in line with
the Company's strategy to take advantage of opportunities where the
maximum value can be generated.
Nashik
Development permissions at Nashik are being pursued with various
authorities and ground break will be announced once these
permissions are in place. The Company is confident of initiating
activities on this site in the future and exploiting the intrinsic
value the Nashik property carries.
Aurangabad
The Company has commenced development of retail and warehousing
space at Aurangabad with an intention to sell on completion.
Outlook
The Company's focus in the near term remains on the
repositioning and refurbishment of the Kalyan mall and establishing
it as a value and lifestyle destination. This in turn is likely to
increase revenues and help support the long term plans of the
Company. In addition, the Company is optimistic of earning good
rental income from the ground floor space at the Metro Plaza
project on completion. The Development of residential and
commercial projects at Kalyan is also a priority and the Company
intends to deliver these projects to customers in a phased
manner.
The Company is confident of making further progress in the
development of the Nashik and Aurangabad sites in the near future
and will update shareholders on the progress of these projects. The
Board is confident of continuing progress on establishing West
Pioneer as a formidable brand standing for quality and transparency
among retailers and consumers. The Board believes strongly in the
Company's ability to deliver growth over the longer term.
Amit Jatia
Chairman
20 December 2012
INTERIM CONSOLIDATED INCOME STATEMENT
For the six month period ended 30 September 2012
2012 2011
Notes Unaudited
--------------------------
$ $
Revenue
Property rentals 826,275 1,147,780
Other operating income 818,082 1,153,868
------------ ------------
Total Revenue 1,644,357 2,301,648
Finance and other income 6 105,897 106,812
Total Income 1,750,254 2,408,460
Expenses
Property revaluation loss (669,925) (46,943)
Direct operating expenses for
rent-earning properties (1,138,976) (1,132,494)
Administrative expenses (757,160) (1,010,806)
Selling and distribution costs (189,685) (232,322)
Finance costs 7 (734,967) (585,817)
------------ ------------
Total expenses (3,490,713) (3,008,382)
Loss before tax (1,740,459) (599,922)
Income tax credit 8 216,766 335,092
Loss after tax (1,523,693) (264,830)
============ ============
Attributable to:
Equity holders (1,523,693) (264,830)
Earnings per share (attributable
to equity holders) 9
Basic (0.0191) (0.0033)
Diluted (0.0190) (0.0033)
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six month period ended 30 September 2012
2012 2011
------------ ------------
Unaudited
--------------------------
$ $
Loss for the period (1,523,693) (264,830)
============ ============
Exchange loss on translation of
foreign operations (832,077) (5,759,269)
Other comprehensive loss for the
period, net of tax (832,077) (5,759,269)
------------ ------------
Total comprehensive loss for the
period, net of tax (2,355,770) (6,024,099)
============ ============
Attributable to:
Equity holders (2,355,770) (6,024,099)
(2,355,770) (6,024,099)
============ ============
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2012
30 September 31March
2012 2011 2012
----------------- ----------- -------------
Notes Unaudited Audited
$ $ $
Assets
Non-current assets
Property, plant and equipment 1,622,635 3,151,545 1,671,041
Investment properties 10 53,810,775 68,557,254 54,329,562
Intangible assets 4,542 8,385 6,321
Other non-financial assets 11,913 - 16,103
Other financial assets 335,388 289,769 322,879
Advance income tax 182,447 292,369 308,076
55,967,700 72,299,322 56,653,982
------------- --------------- -------------
Current assets
Inventories 11 32,551,634 10,081,640 29,557,631
Investments - held for trading 12 - 435,120 438,592
Trade and other receivables 13 920,500 1,068,846 966,668
Other non-financial assets 719,702 250,818 531,693
Prepayments 84,754 175,867 43,501
Cash and short-term deposits 5 967,153 1,760,516 771,640
35,243,743 13,772,807 32,309,725
------------- --------------- -------------
Total Assets 91,211,443 86,072,129 88,963,707
============= =============== =============
Equity and liabilities
Equity attributable to the
equity holders
Issued capital 7,996,130 7,996,130 7,996,130
Share premium 45,717,870 45,717,870 45,717,870
Retained earnings 15,140,782 17,325,675 16,664,475
Employee equity benefit
reserve 561,185 554,104 559,427
Foreign currency translation
reserve (14,009,168) (10,502,064) (13,177,091)
------------- --------------- -------------
55,406,799 61,091,715 57,760,811
------------- --------------- -------------
Non current liabilities
Interest bearing loans and
borrowings 17 7,534,519 - 4,453,381
Advance from sale of units 12,520,340 5,493,409 8,269,352
Other financial liabilities 4,108,163 1,018,516 3,817,688
Other non-financial liabilities 34,394 15,300 6,282
Employee benefit liability 51,341 49,139 48,620
Deferred tax liability 6,174,691 7,918,438 6,488,338
30,423,448 14,494,802 23,083,661
------------- --------------- -------------
Current liabilities
Trade and other payables 1,050,446 1,848,949 1,442,463
Interest bearing loans and
borrowings 17 2,691,491 7,423,863 5,552,766
Other financial liabilities 1,614,613 1,182,870 1,107,284
Other non-financial liabilities 24,646 29,930 16,722
5,381,196 10,485,612 8,119,235
------------- --------------- -------------
Total Liabilities 35,804,644 24,980,414 31,202,896
------------- --------------- -------------
Total Equity and Liabilities 91,211,443 86,072,129 88,963,707
============= =============== =============
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Forthe six month period ended 30 September 2012
Attributable to equity holders
-------------------------------------------------------------------------------------------------------------------------
Employee
equity Foreign currency
Issued Share Retained benefits translation Total
capital premium earnings reserve reserve Equity
------------------ ------------------ ------------------ -------------- ------------------- ------------------------
$ $ $ $ $ $
Balance as at 1 April 2012 7,996,130 45,717,870 16,664,475 559,427 (13,177,091) 57,760,811
Loss for the period - - (1,523,693) - - (1,523,693)
Other comprehensive loss - - - - (832,077) (832,077)
------------------ ------------------ ------------------ -------------- ------------------- ---------------
Total comprehensive loss - - (1,523,693) - (832,077) (2,355,770)
Share based payment - - - 1,758 - 1,758
Balance as at 30 September 2012 7,996,130 45,717,870 15,140,782 561,185 (14,009,168) 55,406,799
================== ================== ================== ============== =================== ===============
Balance as at 1 April 2011 7,996,130 45,717,870 17,449,183 690,216 (4,742,795) 67,110,604
Loss for the period - - (264,830) - - (264,830)
Other
comprehensive
loss - - - - (5,759,269) (5,759,269)
------------------------------ ------------------ ------------------ ------------------ -------------- -------------------
Total
comprehensive
loss - - (264,830) - (5,759,269) (6,024,099)
Share based
payment - - - 5,210 - 5,210
Transfer to
retained
earnings
on options
forfeited - - 141,322 (141,322) - -
Balance as at
30 September
2011 7,996,130 45,717,870 17,325,675 554,104 (10,502,064) 61,091,715
============================== ================== ================== ================== ============== ===================
INTERIM CONSOLIDATED CASH FLOW STATEMENT
Forthe six month period ended 30 September 2012
2012 2011
Notes Unaudited
------------------------
$ $
Operating activities
Loss before tax (1,740,459) (599,922)
Adjustments to reconcile loss before tax
to net cash flows
Depreciation and amortisation 10,114 14,982
Provision for doubtful debts 81,696 157,222
Share based payments expense 1,758 5,210
Decrease in fair value of investment properties 669,925 46,943
Decrease / (Increase) in value of investments
held-for-sale 27,633 9,377
Foreign exchange difference (54,325) 39,428
Net gain on sale of investment (106) (5)
Dividend income (12,573) (5,229)
Interest income (26,849) (78,728)
Interest expense 702,771 536,532
(340,415) 125,810
Working Capital adjustments
(Increase) in prepayments (current) (32,700) (139,325)
(Increase) / Decrease in trade and other
receivables (82,700) (350,118)
(Increase) / Decrease in other assets
(current) (191,762) 43,208
(Increase) in other assets (non-current) (16,276) (3,671)
(Increase) in inventories (3,105,278) (1,083,815)
(Decrease) in trade and other payables
(current) (273,132) (83,828)
Increase / (Decrease) in other liabilities
(current) 425,407 45,790
Increase in other liabilities (non current) 4,337,247 1,037,428
----------- -----------
1,060,806 (534,331)
Income tax refund / (paid) 149,639 268,877
Net cash flows from/ (used in) operating
activities 870,030 (139,644)
----------- -----------
Investing activities
Proceeds from sale of held-for-trading
investments 3,712,808 1,528,590
Purchase of property, plant and equipment
and intangible assets (2,517) (9,086)
Purchase of held-for-trading investments (3,247,785) (1,438,428)
Capital expenditure on Investment Property (829,586) (101,212)
Dividend income 12,573 5,229
Interest received 26,849 52,731
Net cash flows (used in)/from investing
activities (327,658) 37,824
----------- -----------
Financing activities
Proceeds from borrowings 5,807,143 1,808,283
Repayment of borrowings (5,683,236) (1,668,040)
Interest paid (460,216) (344,089)
----------- -----------
Net cash flows (used in) financing activities (336,309) (203,846)
----------- -----------
Net increase/(decrease) in cash and cash
equivalents 206,063 (305,666)
Net foreign exchange difference (10,717) (63,883)
Cash and cash equivalents at 1(st) April 752,868 1,492,741
----------- -----------
Cash and cash equivalents at 30(th) September
(See Note 5) 948,214 1,123,192
----------- -----------
Notes to interim condensed consolidated financial statements
For the six months period ended 30 September 2012
1. Corporate information
The interim condensed consolidated financial statements of West
Pioneer Properties Limited and its subsidiaries ('the Group') for
the six months ended 30 September 2012 were authorised for issue in
accordance with a resolution of the directors on 17 December
2012.
West Pioneer Properties Limited ('the Company') is a limited
company, incorporated on 5 September 2006 and domiciled in the
British Virgin Islands, whose shares are publicly traded on the
Alternative Investment Market (AIM) of the London Stock Exchange.
Winmore Investments Limited is the holding company of the
Company.
The Company has the following wholly owned subsidiary
companies
Country of incorporation
West Brick Investment Limited ('WBIL') Mauritius
West Brick Properties Limited ('WBPL') Mauritius
West Pioneer Properties (India) Private India
Limited ('WPPIPL')
Westfield Entertainment Private Limited India
('WEPL')
The Company, WBIL and WBPL are investment holding companies,
having no other business activities. WPPIPL and WEPL are in the
business of development and management of shopping malls,
development and sale of residential, office and warehousing
property and development of mixed use properties in India.
2. Basis of preparation and accounting policies
Basis of preparation
The interim condensed consolidated financial statements for the
six months ended 30 September 2012 have been prepared in accordance
with IAS 34 Interim Financial Reporting, as adopted by the European
Union.
The interim condensed consolidated financial statements do not
include all the information and disclosures required in the annual
financial statements and should be read in conjunction with the
Group's annual financial statements as at 31 March 2012.
Significant accounting policies
The accounting policies adopted in the preparation of the
interim condensed financial statements are consistent with those
followed in the preparation of the Group's annual financial
statements for the year ended 31 March 2012, except for the
adoption of following new and amended IFRS and IFRIC
interpretations applicable from 1 April 2012:
IAS 12 - Deferred Tax: Recovery of Underlying Assets
(Amendment)
This amendment to IAS 12 includes a rebuttable presumption that
the carrying amount of investment property measured using the fair
value model in IAS 40 will be recovered through sale and,
accordingly, that any related deferred tax should be measured on a
sale basis. The presumption is rebutted if the investment property
is depreciable and it is held within a business model whose
objective is to consume substantially all of the economic benefits
in the investment property over time, rather than through sale.
Specifically, IAS 12 requires that deferred tax arising from a
non-depreciable asset measured using the revaluation model in IAS
16 should always reflect the tax consequences of recovering the
carrying amount of the underlying asset through sale. Effective
implementation date is for annual periods beginning on or after 1
January 2012.
The Group has investment properties at fair value and under the
tax jurisdiction applicable to the location of the investment
property, certain portion of the property is depreciable and the
balance is taxable on a sale basis. The adoption of this amendment
did not have any significant impact on the financial statements of
the group.
The following amendments to IFRSs standards did not have any
impact on the accounting policies, financial position or
performance of the Group:
IFRS 7 - Disclosures - Transfers of financial assets
(Amendment)
The IASB issued an amendment to IFRS 7 that enhances disclosures
for financial assets. These disclosures relate to assets
transferred (as defined under IAS 39). If the assets transferred
are not derecognised entirely in the financial statements, an
entity has to disclose information that enables users of financial
statements to understand the relationship between those assets
which are not derecognised and their associated liabilities. If
those assets are derecognised entirely, but the entity retains a
continuing involvement, disclosures have to be provided that enable
users of financial statements to evaluate the nature of, and risks
associated with, the entity's continuing involvement in those
derecognised assets. Effective implementation date is for annual
periods beginning on or after 1 July 2011 with no comparative
requirements.
The group did not have any assets that have been transferred and
not derecognised.
IFRS 1 - Severe Hyperinflation and Removal of Fixed Dates for
First-time Adopters (Amendment)
When an entity's date of transition to IFRS is on or after the
functional currency normalisation date, the entity may elect to
measure all assets and liabilities held before the functional
currency normalisation date, at fair value on the date of
transition to IFRS. This fair value may be used as the deemed cost
of those assets and liabilities in the opening IFRS statement of
financial position. However, this exemption may only be applied to
assets and liabilities that were subject to severe hyperinflation.
Effective implementation date is for annual periods beginning on or
after 1 July 2011 with early adoption permitted.
The application of this amendment did not have any impact on the
financial statements of the group.
The Group has not early adopted any other standard,
interpretation or amendment that has been issued but is not yet
effective.
3. Seasonality of operations
The Group is engaged in the construction and operation of
shopping malls and generates revenue in the form of lease rentals
which are not seasonal in nature.
The Group constructs residential apartments, office and
warehousing property for ultimate sale for which it receives
construction linked payments based on progress of construction
which are not seasonal in nature.
4. Segment information
The following tables present revenue and profit / (loss)
information regarding the Group's operating segments for the six
months ended 30 September 2012 and 2011 respectively.
Six months ended 30 September 2012
Retail Residential Office Warehousing Total
------------ ------------- -------- -------------- ------------
$ $ $ $ $
Segment revenue
Property rent and other
operating income 1,644,357 - - - 1,644,357
Property operating expenses (1,138,976) - - - (1,138,976)
Net valuation loss on investment
property (669,925) - - - (669,925)
Related finance costs (282,400) - - (128,345) (410,745)
------------ ------------- -------- -------------- ------------
Segment profit/(loss) (446,945) - - (128,345) (575,289)
Administrative expenses (757,160)
Selling and distribution
expenses (189,685)
Finance costs (324,222)
Finance income 105,897
-------------- ------------
Loss before tax (1,740,459)
============== ============
Finance income includes other income of US$55,776.
Six months ended 30 September 2011
Retail Residential Office Warehousing Total
------------ ------------- --------- -------------- ------------
$ $ $ $ $
Segment revenue
Property rent and other
operating income 2,301,648 - - - 2,301,648
Property operating expenses (1,132,494) - - - (1,132,494)
Net valuation loss on
investment property (36,897) - (10,046) - (46,943)
Related finance costs (393,036) (16,685) - - (409,721)
------------ ------------- --------- -------------- ------------
Segment profit/(loss) 739,221 (16,685) (10,046) - 712,490
Administrative expenses - (1,010,806)
Selling and distribution
expenses (232,322)
Finance costs (176,096)
Finance income 106,812
------------
Loss before tax (599,922)
============
Finance income includes other income of $100,267.
The following table presents segment assets of the Group's
operating segments as at 30 September 2012 and 31 March 2012.
Retail Residential Office Warehousing Others Total
$ $ $ $ $ $
Segment assets
At 30 September
2012 55,194,778 16,926,448 3,186,587 13,330,652 2,572,978 91,211,443
----------- -------------- ---------- -------------- ---------- -----------
At 31 March 2012 56,020,750 14,282,257 2,514,541 13,470,629 2,675,530 88,963,707
=========== ============== ========== ============== ========== ===========
Segment liabilities
At 30 September
2012 8,990,150 16,198,608 1,332,885 2,311,110 - 28,832,753
----------- -------------- ---------- -------------- ---------- -----------
At 31 March 2012 9,137,738 13,096,741 487,690 1,698,179 - 24,420,348
=========== ============== ========== ============== ========== ===========
Assets classified as "others" are made up of US$1,564,762 (31
March 2012: US$1,586,386) invested in hotel property; US$21,444
(31(st) March 2012: US$17,397) invested in property, plant &
equipment: US $Nil (31 March 2012: US $438,592) in investments-held
for trading: US$686,418 (31(st) March 2012: US$339,016) in cash
& cash equivalents; and US$300,353 (31 March 2012: US$294,139)
in other financial assets.
Reconciliation of segment liabilities to amounts appearing on
the statement of financial position
30 September 31 March
2012 2012
$ $
Segment operating liabilities 28,832,753 24,420,348
Other financial liabilities 2,429 3,386
Employee benefit liability 51,341 48,620
Deferred tax liability 6,174,692 6,488,338
Trade and other payables 315,267 197,690
Other financial liabilities 428,163 44,514
------------- -----------
Group operating liabilities 35,804,644 31,202,896
============= ===========
5. Cash and short-term deposits
30 September
2012 2011
-------- ----------
Unaudited
--------------------
$ $
Cash at bank and in hand 948,214 1,123,192
Short term deposits 18,939 637,324
-------- ----------
967,153 1,760,516
======== ==========
Short term deposits include restricted deposits of US$18,939
(30September 2011 US$637,324) kept as a margin money towards bank
guarantee issued by bank.
A reconciliation of the cash and cash equivalents as above to
the amounts considered for the interim consolidated cash flow
statement is presented below.
30 September
2012 2011
--------- ----------
Unaudited
---------------------
$ $
Cash and cash equivalents as above 967,153 1,760,516
Restricted deposits (18,939) (637,324)
--------- ----------
Cash and cash equivalents for the purpose
of the cash flow 948,214 1,123,192
========= ==========
6. Finance and other income
Finance income during the period ended 30 September 2012
comprises:
30 September
2012 2011
-------- --------
Unaudited
------------------
$ $
Foreign exchange gain 37,362 -
Dividend earned on investments 12,573 5,229
Profit on sale of investments 106 -
Bank interest 80 1,316
50,121 6,545
Other income 55,776 100,267
-------- --------
105,897 106,812
======== ========
7. Finance costs
Finance costs during the period ended 30 September 2012 and 2011
comprise primarily interest expense.
8. Income taxes
The major components of the income tax expense in the interim
consolidated income statement, arising from the operations of the
Group's subsidiaries in India and subject to Income Tax in that
Jurisdiction are:
30 September
2012 2011
---------- ----------
Unaudited
----------------------
$ $
Current income tax
Current income tax charge - -
Deferred income tax
Relating to origination and reversal of
temporary differences (216,766) (335,092)
---------- ----------
Income tax credit (216,766) (335,092)
========== ==========
9. Earnings per share
Basic earnings per share amount is calculated by dividing net
(loss) after tax for the period attributable to ordinary equity
holders by the weighted average number of ordinary shares
outstanding during the six months.
The following reflects the income and share data used in the
earning per share computations for six months ended on
30 September
2012 2011
------------ -----------
Unaudited
-------------------------
$ $
Profit attributable to equity holders (1,523,693) (264,830)
------------ -----------
Number of shares
Weighted average number of shares for basic
earnings per share 79,961,298 79,961,298
Effect of dilution in respect of employee
stock options 24,448 24,448
------------ -----------
Weighted average number of shares adjusted
for the effect of dilution 79,985,746 79,985,746
------------ -----------
Basic earnings per share (par value $0.10) (0.0191) (0.0033)
Diluted earnings per share (par value $0.10) (0.0190) (0.0033)
10. Investment Properties
Movements during the period
30 September 2012 31 March 2012 30 September 2011
Under Under Under
Completed Construction Total Completed Construction Total Completed Construction Total
----------- ------------- ----------- ------------- ------------- ------------- ------------ ------------- ------------
Unaudited Audited Unaudited
----------- ------------- ----------- ------------- ------------- ------------- ------------ ------------- ------------
$ $ $ $ $ $ $ $ $
Balance at
1(st) April 37,964,215 16,365,347 54,329,562 45,418,498 29,600,457 75,018,955 45,418,498 29,600,457 75,018,955
Transfer to
inventory - - - - (11,519,216) (11,519,216) - - -
Additions
during
the period
comprising:
- Expenditure
incurred 438,823 444,554 883,377 90,471 385,668 476,139 5,339 135,374 140,713
-Acquisition
of land - - - 551,855 35,495 587,350
Adjustment
to fair
value (438,823) (229,144) (667,967) (2,544,489) 970,660 (1,573,829) 13,881 (135,374) (121,493)
Income from
straight
lining (1,958) - (1,958) 156,603 - 156,603 74,550 - 74,550
Foreign
currency
translation (517,555) (214,684) (732,239) (5,708,723) (3,107,717) (8,816,440) (3,971,846) (2,583,625) (6,555,471)
Balance at
end date 37,444,702 16,366,073 53,810,775 37,964,215 16,365,347 54,329,562 41,540,422 27,016,832 68,557,254
-------------- ----------- ------------- ----------- ------------- ------------- ------------- ------------ ------------- ------------
Note: In October 2011 WPPIPL has entered into a non-binding
Memorandum of Understanding (MOU) to develop and sell, subject to
contract, its asset in Aurangabad, India for a total cash
consideration of approximately US$14,400,839. Under the terms of
the MOU, the Company will develop the project as retail and
warehousing space.
Upon commencement of construction the company has transferred
the amounts in respect of the Aurangabad property aggregating
US$11,519,216 from investment property to inventory.
Significant assumptions
The fair value of all investment properties has been assessed by
the Directors at the end of the reporting period.
Further, the methodology and key estimates in the valuation of
completed investment property are the same as that for 31(st) March
2012 except that the average rent is assumed at US$0.65 per sq ft
per month (31(st) March 2012: US$0.66 per sq ft per month).
Although there is an increase in average rent in rupee terms during
the period, the average rent in dollar terms has been impacted due
to the depreciation of the Indian rupee against the US dollar.
The discount rate used in the valuation of completed properties
remains unchanged at 14%.
11. Inventories
30(th) September 31(st) March
2012 2011 2012
----------- ----------- -------------
Unaudited Audited
------------------------ -------------
$ $ $
Work in progress 32,298,803 9,889,522 29,299,800
Construction Material 251,073 189,628 255,519
Diesel Stock 1,758 2,490 2,312
32,551,634 10,081,640 29,557,631
=========== =========== =============
Work in progress represents the inventory for the residential
& office construction of the group at Kalyan and for the retail
and warehouse space at Aurangabad.
12. Investments held-for-trading
Investments held-for-trading have a maturity from one month to
three months which can be redeemed and liquidated at any point of
time until maturity.
These are valued at fair value through income statement. All the
investments are quoted instruments and their carrying values
approximate their fair values.
13. Trade and other receivables
30(th) September 31(st) March
2012 2011 2012
---------- ---------- -------------
Unaudited Audited
---------------------- -------------
$ $ $
Trade receivables (Net) 708,926 729,480 807,631
Trade receivable from related parties
(Net) 204,072 226,015 153,529
Accrued income 7,502 113,351 5,508
Other advances 719,702 250,818 531,693
1,640,202 1,319,664 1,498,361
========== ========== =============
As at 30(th) September 2012, the Company has provided for doubtful
trade receivables aggregating US$552,830 (30(th) September
2011: US$520,108; 31(st) March 2012: US$474,562).
14. Share-based payment
There were no new options granted to the employees of the Group
(including key management personnel) under the Employee Stock
Option Plan 2007 ('the plan').
The share based payments expense during the period arising from
equity settled share-based payment transactions aggregated US$1,758
(30(th) September 2011: US$5,210).
15. Commitment and Contingencies
a. Contingencies
At 30(th) September 2012 there are no changes in the
contingencies which were outstanding at 31(st) March 2012 except
for the following
1. SDR Clothing Co Pvt. Ltd. (Lanos) has challenged the
arbitration Award concluded in favour of WPPIPL by filing an
Arbitration Petition in Bombay High Court. The said petition is
admitted and is pending for decision.
WPPIPL is contesting this claim and does not believe that the
proceedings will have a material adverse impact on the Group.
2. The Bombay High Court on 14(th) December 2012 has admitted
the legal case in relation to the Nashik land and continued the
interim stay granted earlier in favour of the Company. The matter
will now be heard finally by the Bombay High Court. The detailed
order is yet to be received by the Company and implications, if
any, will be ascertained on receipt of the same.
b. Commitments
WPPIPL has contractual commitments amounting to US$3,754,488
(31(st) March 2012: US$NIL) towards construction and for the
acquisition of property, plant and equipment for the projects under
construction.
16. Related party transactions
The following table provides the total amount of transactions,
which have been entered into with the related parties during the
six months ended 30(th) September 2012 and the outstanding balances
as at 30(th) September 2012 and 2011.
For the six months ended
Related Party 30(th) September
2012 2011
------- ------------------
Unaudited
---------------------------
$ $
Transactions with parent company
a. Winmore Investments Limited
Consultancy fees expenses 43,109 44,085
Amount due (to) related party (21509) -
Transactions with other related parties
Enterprises over which significant influence
exercised by the Jatia family
a. Hardcastle Restaurants Private Limited
Rental income for premises leased 59,599 54,430
Common Area Maintenance income for premises
leased 13,888 16,350
Income - Reimbursement for premises leased 75,707 75,781
Expenses - Reimbursement 15,467 -
Provision for doubtful debt expenses for the
period 5,248 12,951
Provision for doubtful debt as at 31,876 29,010
Amount due from related party 36,938 56,675
b. Hardcastle & Waud Manufacturing Company Limited
Expenses - Reimbursement 13,288 20,161
Lease rent expenses for Kalyan land by WPPIPL - 39,469
Interest expenses for deferred credit on purchase
of Kalyan land by WPPIPL 206,862 -
Amount due (to) related party (2,984,350) (20,837)
c. Vishwas Investment & Trading Company Private
Limited
Expenses - Reimbursement 2,431 5,437
Office premises rent expenses 47,500 50,849
Security deposit given - 10,012
Amount due from related party 78,325 93,246
d. Global Trendz Limited *
Provision for doubtful debt as at NA 16,143
Amount due (to) / from related party NA 10,628
* Relationship ceases to exist from December
2010
e. Fame India Limited
Rental income for premises leased 135,488 157,266
Common Area Maintenance income for premises
leased 61,065 75,488
Income - Reimbursement for premises leased 115,296 150,528
Provision for doubtful debt expenses for the
period - 20,970
Provision for doubtful debt as at 150,000 148,325
Amount due from related party (3,554) 178,645
f. International Financial Services Limited
Admin expenses 16,473 11,355
Amount due (to) related party (11,875) (4,388)
g. Bungee Fashions Private Limited **
Common Area Maintenance income for premises
leased NA 4,317
Income - Reimbursement for premises leased NA 5,278
Amount due from related party NA 3,367
** Relationship ceases to exist from March 2011
Transactions with key managerial personnel
Foreign Travel - 18,933
Chief Executive Officer's compensation 75,669 83,240
Other Short-term employee benefits 3,774 11,482
Directors Remuneration 65,231 71,731
Share based payments expense on options granted 1,758 5,210
Post - employment benefits 2,770 3,667
Amount due (to)/ from related party (663) (10,716)
Loans taken from related parties and key management
personnel of the group
a. Amit Jatia
Loan given by - -
Loan repaid to - -
Interest expense - 43,174
Amount due (to) related party - (675,734)
b. Anurag Jatia
Loan given by 72,917 -
Loan repaid to - -
Interest expense 63 22,306
Amount due (to) related party (72,983) (340,799)
c. Ayush Amit Jatia
Loan given by 186,553 217,133
Loan repaid to - -
Interest expense 20,073 10,258
Amount due (to) related party (446,292) (226,566)
d. Banwari Lal Jatia
Loan given by - 100,524
Loan repaid to - -
Interest expense - 3,967
Amount due (to) related party - (104,173)
e. Banwari Lal Jatia (HUF)
Sale of flat - 4,423
Loan given by 89,962 466,433
Loan repaid to 107,955 76,398
Interest expense 10,901 31,052
Amount due (to) related party (203,242) (419,987)
f. Lalita Devi
Loan given by 28,409 310,017
Loan repaid to 73,864 -
Interest expense 3,038 12,235
Amount due (to) related party (20,508) (321,269)
g. Akshay Amit Jatia
Loan given by 441,288 -
Loan repaid to 37,879 -
Interest expense 18,321 -
Amount due (to) related party (422,444) -
h. Amit Jatia (HUF)
Loan given by 2,841 -
Loan repaid to 7,576 -
Interest expense 12,799 -
Amount due (to) related party (187,949) -
i. Anurag Jatia (HUF)
Loan given by - -
Loan repaid to 303,030 -
Interest expense 7,734 -
Amount due (to) related party (134,886) -
j. Usha Devi Jatia
Loan given by 616,477 -
Loan repaid to 448,864 -
Interest expense 14,673 -
Amount due (to) related party (182,858) -
k. Vishwas Investment & Trading Company Private
Limited
Loan given by 861,742 556,905
Loan repaid to 4,243,371 110,577
Interest expense 112,551 5,749
Amount due (to) related party (625,379) (511,055)
l. Westlife Development Limited
Loan given by - -
Loan repaid to - 275,437
Interest expense - 1,658
Amount due (to) related party - -
m. West Leisure Resorts Private Limited
Loan given by - -
Loan repaid to - 267,395
Interest expense - 596
Amount due (to) related party - -
n. Anand Veena Twisters Pvt. Ltd
Loan given by 353,220 -
Loan repaid to 350,379 -
Interest expense 10,212 -
Amount due (to) related party (13,451) -
17. Events occurring after the reporting period
Since the balance sheet date WPPIPL has arranged loan facility
of US$11,833,333 with The Ratnakar Bank Limited. The effective
interest rate currently is 14.30% i.e. base rate plus 3.30% and is
secured against the assets of WPPIPL. To date WPPIPL has drawn down
US$1,759,732 of the available facility.
18. Copy of the Interim Report
Copies of the Interim Report are available to download from the
Company's website at www.west-pioneer.com/.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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